Property Management: Acquiring the New Skill Set

By Jeff Hamann

Source: Commerical Property Executive

BOMA Chair & Chief Elected Officer Scott Jones and Cheryl Gray, president-elect of IREM, share insights into how the property manager’s role will change in a tech-heavy market.

Technological advances and other shifts in the market are shaping the role of the property manager. In order to perform in such a competitive environment, the professionals of the new generation need to have a diverse skill set. In addition to keeping up with tech, they must be able to successfully navigate the slowing economy.

Cheryl Gray, president-elect of the Institute of Real Estate Management, and Scott Jones, chair & chief elected officer of Building Owners and Managers Association International, discuss the required expertise for future managers and how effective operations can help keep a portfolio above water even in lean times.

How do you foresee the role of property manager changing in the coming years?

Jones: The role of the commercial property manager has already changed greatly just in the past few years, and I believe we’ll continue to see more shifts in responsibilities. Since the Great Recession, property managers have been called to assume more duties, and as buildings continue to become more complex and technology driven, so too will the roles of those who manage and operate them. The property manager role will continue to evolve in a way that requires them to be masters of technology; interpreters of the data, metrics and analytics generated and captured by this new technology; and focal points of hospitality for their clients.

Gray: The role of the property manager is in constant evolution. Property managers constantly adapt to modifications made to the built environment through building codes, regulations, sustainability, security and myriad other issues. In the foreseeable future, customer service will continue to be one of the biggest changes, as property managers are moving from a “space-centric” focus to a “service-centric” focus.

Another area of change will be the increasing impact of technology. The skills and knowledge of property managers and building staff will need to continuously advance in order to keep pace with the disruptive impact technology will have on building operations and occupant expectations. The emerging integration of information and operational technology will disrupt how real estate teams and
IT departments within those real estate firms collaborate.

Finally, I foresee an increasing need for property managers to be able to manage all asset classes, with many new developments or redevelopments being mixed-use. It will no longer be adequate to simply know how to manage a residential asset or an office asset or a retail mall, as they are all being integrated into one complex.

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10 Systems Property Managers Can Use Improve Their Record Keeping

Source: Forbes

Property management relies heavily on the proper maintenance of records. Because of this, property managers need to be experts at administrative tasks. By creating a workflow that enables them to keep records meticulously, they build a valuable resource that they can use when they need to find or reference important information.

However, the more properties a manager has to deal with, the more convoluted the records can become. And while limiting complexity would be ideal, the only way a professional property manager can truly streamline the process is by embracing practices that can help them simplify how data is recorded, as well as referenced later on.

To find out about what kinds of approaches work, members ofForbes Real Estate Council, below, share their insights into some of the best systems that property managers can use to create order out of chaos. Here is what they advise:

1. Get An Expandable Software Package

In the event of a sale, your seller will need to produce records for the property. If these records are a hodgepodge of who knows what, you stand a chance of losing the deal. Buyers are very sensitive to a lot. Give them comfort by having organized and understandable reports. If you can incorporate photos of repairs performed and closed in, this will be helpful. The software will help a great deal. – Michael J. Polk, Polk Properties / Matrix Properties

2. Invest In Cloud-Based Storage

Invest in a cloud-based software system that will maintain records for text messages, phone calls and emails between you, the property owners and the tenants. Hire a bookkeeper to ensure you are properly reconciled each month and keep your escrow funds in a separate banking account. – Tanya Delahoz,Dwell Summit

3. Use Off-The-Shelf Software

We favor using off-the-shelf industry software. The primary reason is for compliance. A software package designed for real estate and real estate management will come with all the features and then some already built-in. Additionally, the software vendor will provide updates and patches to address any potential security/privacy issues as they arise. – Blake Plumley, Capital Pursuits LLC

4. Maintain Separate Files

Have a system in place that tracks rents collected, all executed lease documents and correspondence with your tenants. Maintain separate files either electronically (always ensure backup) or with a secure file cabinet. Keep records for at least four years on all tenants and landlords. Dropbox or Slack are both great systems that allow you to share with team members. – Nancy Wallace- Laabs, KBN Homes, LLC

5. Encrypt Tenants’ Information

Property managers handle personally identifiable information on tenants. Maintaining proper records is not only important but also your legal duty as a property manager. High-profile data breaches have been increasingly prevalent. Before adopting a new property management software or consulting with a real estate attorney, make sure you have a robust system that encrypts and stores tenant info. – Chuck Hattemer,Onerent

6. Ensure Proper Security Against Hackers

For medium to large properties, such as apartment or condo complexes, having a good network security system that is set up and managed by professionals is key. Technology is constantly changing, and having professionals that can keep your records updated and secure so that they meet all regulations is crucial. – Bill Lyons, Griffin Funding

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Lights Out: Preparing for Power Disruptions

By Jeffrey Steele

Source: Commerical Property Executive

On the evening of Saturday, July 13, 2019, the lights went out on a significant portion of Midtown Manhattan. On Broadway, the shows could not go on. Untold thousands of residents and visitors were forced to throw out plans for shopping and entertainment; New York City’s subway system was disrupted for hours. Con Ed, the local utility, eventually reported the cause as a flawed connection at a substation.

Whether caused by a technical issue or by extreme weather, the potential impact of power disruptions must be part of standard planning for commercial property owners and managers. A steady stream of disruptions linked to natural disasters underscores the vulnerability of commercial and multifamily properties. grid infrastructure is highly vulnerable to severe weather.

The growing frequency and intensity storms and floods is an increasing concern, observed Geoff Oxnam, CEO of Easton, Md.-based American Microgrid Solutions. Hurricanes, tornados, earthquakes, ice storms and floods pose a constant threat. In 2015, one quarter of unplanned grid outages in the western U.S. stemmed from environmental variability and extreme weather, concludes a 2017 report from The Johns Hopkins University School of Advanced Studies. 

STORM WATCH

One factor that will bend the odds in an owner’s favor is a systematic approach to planning for the impact of power outages on commercial properties. “I’ve been in the industry for 25 years, and the first 10 years, a hurricane plan was a document that sat up on a shelf and was rarely used,” said Harry Moseley, senior director, engineering operations for Cushman & Wakefield in Jacksonville, Fla. Best practices have evolved for the better during Mosely’s career. At Cushman & Wakefield Florida, a planning committee meets monthly and makes changes as needed, drawing on lessons from recent events.

Randy Fink, regional manager for property management business with JLL in Atlanta, agrees the industry is focused on preparation for disruptive events. Plans that outline what to do in a variety of different scenarios are particularly valued.

Importantly, sophisticated owners of real estate put a lot of emphasis on the planning and preparations before an event is imminent,” he said. “For example, smart owners put time into low or no-cost activities like contracting for generator fuel in advance and defining service level expectations for generator support. This preparedness is done throughout the year, not just as hurricane season approaches. Proper preparation in addition to specific scenario planning, helps limit exposure to unavoidable disruptions.”

Cushman & Wakefield has institutional clients with large financial resources who require permanent generators for backup electricity, Moseley says. Smaller owners look to the company to rent generators for their properties on an as-needed basis. The former will restore power instantly, while the latter can do so within 24 hours, he reported.

Table-top exercises, the regular interdisciplinary meetings of the emergency planning team, should take potential power interruptions into consideration.  “This habit of practicing emergency response outside of any particular emergency brings the plans to life so they aren’t just wasted paper filed in a drawer,” Mosely said.

HIGH-TECH HELP

Another major shift taking place is a transition to distributed generation or Distributed Energy Resources(DERs), said DERs include solar, customer onsite generators including conventional gas generators and combined heat and power systems, wind, customer load reduction/DR programs, battery storage and fuel cells. “Placing DERs close to the end user reduces reliance on transmission or distribution lines,” said Matt Haakenstad, vice president of electric services at Kinect Energy Group.

Technology offers new options for energy resilience strategies. 

  • Solar plus storage. Among the newer solutions in many states is the coupling of solar and batteries either with conventional generation or on their own. “In many states, these systems can provide not only backup power, but revenue streams, tax credits and other incentives,” Oxnam said.
  • Car battery energy. When designing the Rocky Mountain Institute headquarters, a net zero energy office and convening center in Basalt, Colo., ZGF Architects examined the potential for using e-batteries of electric cars tied to the local building as source of energy in case of an disruption, said principal Chris Flint Chatto. “The building is designed so it can be severed from the grid, to protect it from being affected by a gird outage,” he said.
  • Microgrids. In campus settings, microgrids coordinate the operation of multiple generation and storage assets with multiple buildings’ needs. They typically include solar, conventional diesel or natural gas generation and battery storage.
  • Uninterruptible power systems. For specific critical loads within a facility, such as a server room, specialized power supplies—typically  batteries— provide resilient power at a smaller scale and cost, Oxnam said.
  • Cogeneration or combined heat and power.  Technology advances, along with availability of natural gas and introduction of incentive programs, have made cogeneration increasingly feasible. “These generators provide both electricity and domestic hot water and/or cooling,” Oxnam said. “As long as they have a fuel supply, they keep running.
  • Building energy management systems. Still focused on larger facilities, many of the tools are coming down market and down price, Oxnam reported. “Integration is occasionally a challenge, particularly with older systems,” he said.

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How To Keep Talent In Property Management (It’s Your Biggest Problem)

By Nathaniel Kunes

Source: Forbes

With low unemployment rates and a great job market, many industries are facing a talent shortage on some level. This is the reality for the property management industry today, and it’s not merely a result of the job market. There’s another factor making the shortage felt harder in property management: their talent is retiring, fast.

Roughly 50 years is the average age of a property manager today, meaning a large group of property management talent will be retiring in the next decade or so. Meanwhile, recruiting young talent is more difficult to do, especially as so many organizations, across a variety of industries, offer tough competition, securing hard-to-get talent through perks like attractive work-life balance options, increased work flexibility and engaging, modern office spaces. These are perks property management lacks.

In some ways, it’s simply the nature of the work in the property management industry that makes top-notch, popular perks tricky to replicate. Regardless, something needs to be done to get young talent more engaged with the property management industry. Luckily, there are ways, through a combination of modern tech and thoughtful leadership, that will help turn the tides for property management in the talent recruitment and retention arena.

Change Your Approach When It Comes to Millennial and Gen Z Talent

The property management industry is one that literally never sleeps. Anything can happen at a moment’s notice that can completely disrupt a property manager’s work-life balance, be it a leak, a loud tenant or a last-minute collections issue. Weekend leisure is often cut short by these types of scenarios. Given that, company culture needs to be a key factor in attracting and retaining the right talent.

Beyond some of the more obvious perks, like having free drinks and snacks in the office, it’s important to think outside of the box, with sometimes much less tactical approaches. One great way to do this is to create a mentorship program so that every new hire gets paired with a mentor to help them navigate the waters and their work, and help them grow and achieve their career goals. Having growth opportunities is a core factor to millennial and Gen Z happiness in the workplace, so making that a reality is pivotal to keeping them on board.

Having a well-structured onboarding process is also a huge asset for recruiting talent. The property management industry, apart from being work-intensive, is also laden with rules and procedures across every aspect of the business that are difficult to learn and sometimes understand. Having an effective onboarding process, especially one that teaches new hires how to use technology to maximize their time, reduces error on the part of new employees, helps them pick up their roles with more speed and ultimately curbs some of the frustrations that come in learning those new roles.

Implement New Technologies To Create More Efficient Workflows, More Rewarding Work

Much like good leadership can keep great talent, so, too, can modern technology. Advancements in the proptech space are not only creating better renter experiences, but also reshaping the role of a property manager, as well as the roles of other real estate professionals.

One area in which AI is taking center stage is in the leasing cycle, serving to streamline workflows for leasing agents and property managers (often a dual role). Where leasing agents once used to have to field all rental queries, which required them spending valuable time on the phone and email with thoughtful responses, instead of showing units to prospects, today’s advanced AI capabilities eradicate the initial tedious steps in the leasing process. This leaves agents with more time to focus on business strategy and close deals with prospects, as well as put aside some of the more administrative responsibilities of the job, replacing that time with more important and meaningful work. Meaningful work is very important to most people — so using tech to pave the way for more opportunities for that kind of work in property management is a surefire solution to inspire more interest and engagement from outside talent.

Advancements in other areas, such as mobile, have also worked to make property management easier. The job of a property manager is oriented toward on-the-go work circumstances, not a 9-to-5 desk job. Given that, mobile capabilities and functionalities that enable people to do work “in the field” take a lot of pressure off employees who might otherwise be struggling at the end of every day with paper-based administrative work they need to complete in-office. Mobile functionalities might include everything from giving property managers the ability to conduct mobile inspections to being able to text (and even automate text messages) to communicate with tenants.

Additionally, on the marketing side, tech advancements automate the otherwise manual process of vacancy postings, giving property management the ability to instantly get listings uploaded to multiple websites, and giving them time back to focus on less manual, more strategic work.

Effectively, through tech and thoughtful leadership, the property management industry can forgo flashy office perks and, instead, offer real-world solutions to help make the work more rewarding, ultimately helping to attract and retain talent.

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Ethics in Property Management

By Lisa G.Noon

Source: Think Realty

Renting an investment property that you own, or finding the perfect single-family house to rent requires making some big decisions, and the help of a professional property manager is critical either way.

First, there’s expert knowledge of the market to think about. What are the current rental rates? Will the tenant properly care for the house? What are the legal requirements?

That’s why you need someone who can guide you through the process while putting your best interests first. Professional members of the National Association of Residential Property Managers (NARPM®) pledge themselves to a strict Code of Ethics when they work with their clients, the real estate community, and the public.

2019 marks the 25th anniversary of the NARPM Code of Ethics. It’s a benchmark and standard for conducting business in the single-family rental marketplace, and promotes a high standard of business ethics, professionalism, and fair housing practices. It begins with a responsibility to protect the public: “The Property Manager shall protect the public against fraud, misrepresentation, and unethical practices in property management.”

Twelve articles of the NARPM Code of Ethics hold members to standards of professionalism that include avoidance of discrimination and compliance with fair housing laws; honest treatment of tenants; managing properties in accordance with safety and habitability requirements of the local jurisdiction; proper handling of funds and truth in advertising.

“Now more than ever, it’s critically important for property management professionals to belong to an organization that sets a high standard of conduct for its members,” commented 2019 President of NARPM Eric Wetherington, MPM® RMP® of New Heights Property Management, CRMC® in Summerville, S.C. “One of the biggest areas of complaint often heard at state real estate commissions relates to property management. Consumers need to choose their property manager with as much care as they would choose any professional to ensure they’re working with someone who has their best interests at heart.”

All property managers who join NARPM agree to abide by the professional and ethical standards set by the Code of Ethics, and a three-hour ethics class must be taken within 90 days of joining to obtain professional status.  Members are required to take a refresher course every four years.

In addition, consumers who work with a NARPM member and have an issue with that person can file an ethics complaint, which will be investigated by the national association’s Professional Standards Committee. 

“We can’t guarantee that we will resolve a consumer’s issue, but we will review the complaint, contact the property management company regarding the dispute, and the NARPM Professional Standards Committee will make a decision whether to forward the complaint to a review panel,” explained NARPM President-Elect Kellie Tollifson, MPM® RMP® of T-Square Properties in Bothell, WA. “After reviewing the case, the panel will decide whether a violation of our Code has been committed and if sanctions will be imposed against the company or the individual property manager. It’s a very thorough process.”

“We believe the Code of Ethics is hugely important to the professionalism of NARPM property managers,” added Scott Abernathy, MPM® RMP® of Property Management Inc. PMI Professionals in Murfreesboro, TN. “Our members take it very seriously and see it as another way that NARPM serves not only its members, but also the single-family investor market.”

In choosing a property manager to work with, consumers are advised to select a professional who voluntarily holds to a high ethical standard and who must repeat Code of Ethics training at regular intervals. That person is a professional member of NARPM — someone who holds to standards that have stood the test of time for a quarter century.

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Blockchain Is Making Its Way Towards The Commercial Real Estate Industry

Source: Medium

The commercial real estate (CRE) industry is comprised of many different types of service providers, including property management, brokerage firms, banks, and other types of lenders. When a CRE transaction takes place, there are various operators involved, requiring extensive sharing of official property documents, and financial information which need to be validated. The requirements for validating all information across all parties slows down the speed of each transaction, which can take weeks and months to complete. Many CRE firms have turned to blockchain to speed up execution times, decrease error and increase transparency in each transaction.

One of the most exciting ways blockchain is disrupting the CRE world is in the form of smart contracts. The industry currently relies on an inefficient system of old-school verification of property ownership by conducting research to ensure the property belongs to the party who is selling it.

Blockchain can reduce the speed in which the chain of custody regarding CRE properties takes place as a property’s title would be stored on a public ledger. This would remove the need for another central repository, thus reducing transaction, state, city, and legal costs. The same principle would apply for leases that would be recorded via blockchain.

More Transparent Deals

Blockchain can also ensure that real estates assets are more liquid and the terms of the agreement are fully understood by both sides as every piece of data regarding a property would be stored publicly. This includes data surrounding former owners, construction done on the property, past maintenance costs and records regarding former inspections.

Having all this information available would give the investor a more comprehensive idea of the property they are investing in. Blockchain essentially ensures that everyone is on the same page and both sides are fully aware of what they’re getting into as every piece of information is out there for anyone to access.

Digital Paper Trail

Another challenge with the CRE industry is the fact that public records can be outdated, unreliable or not available. Following a property’s paper trail can be time-consuming and frustrating as a lot of this information is lost due to poor organizational skills from industry workers and legacy systems that lose data when updated.

With blockchain, every piece of information on a property would be available in the same place rather than in multiple physical and digital domains. Blockchain would also help to eliminate the type of fraud that sometimes exists in the industry as deeds and titles can be counterfeited easily.

Buying Property With Cryptocurrencies

Some investors and real estate firms have started adding bitcoin to the industry, including Ivan Pacheco, who bought a two-bedroom condominium in Florida for $275,000 in Bitcoin.

In the residential space, you can buy a condo on the Lower East Side of Manhattan with bitcoin. Meanwhile, some apartments in New York City are allowing their tenants to pay for rent using bitcoin. Cryptocurrencies have been historically volatile and they’ve been on the decline since peaking in December 2017, but some investors believe that the future of real estate will be closely tied with Bitcoin and other digital coins.

Nevertheless, blockchain’s role in the CRE industry is becoming more prevalent each day. The technology’s potential to speed up transactions with smart contracts, its ability to add transparency to a deed or title and the fact that it dramatically decreases the chance for fraud suggest that more investors will flock towards firms that use blockchain for CRE transactions.

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Hello Alfred Acquires Building Management Technology Platform Bixby

Source: Yahoo!

Hello Alfred, the leading residential experience company, today announced it has acquired the building management technology platform, Bixby, as of today’s date. The acquisition includes Bixby’s assets, team, and customers, and will operate under the Hello Alfred brand. This deal expands Hello Alfred’s footprint, dramatically increasing their volume in Class B multifamily buildings with the potential to bring their anticipatory help and local services to a roster of different property types.

Founded in 2016 by entrepreneur Mark Smukler and real estate developer Alex Ohebshalom, Bixby was originally designed as a mobile app that would modernize and digitize Mr. Ohebshalom’s family property management business. Since then, Bixby has evolved into a cloud-based set of tools and services that enable commercial and residential property management teams around the world to provide tenants and residents with a connected, efficient and sustainable building experience.

“Alfred will be the premier consumer brand in residential real estate,” said Marcela Sapone, co-founder and CEO of Hello Alfred. “Adding Bixby’s technology, foot print and team brings us closer to making our ethos of putting residents first the new market standard. I’m thrilled to have Mark and his team join the Hello Alfred family.”

“Hello Alfred’s years of knowledge around hospitality and services have helped us become one of the most trusted brands for residents across the country,” said Jessica Beck, co-founder and COO of Hello Alfred. “With the inclusion of the Bixby team and their focused approach to property management, we’re able to provide another degree of service to all parties in the multifamily ecosystem.”

The acquisition helps Hello Alfred continue its mission to power the home of the future, bringing its human-powered and technology-supported operating system to even more buildings and residents alike. Hello Alfred plans to integrate the teams and some of Bixby’s building technology into their existing technology offering.

“We’re thrilled to join the Alfred team and combine efforts to build the leading tenant & resident experience offering. By bringing together Alfred’s human-powered service offering with Bixby’s property management technology, we’re able to deliver service at a scale that no company has done before,” said Mark Smukler, co-founder and CEO of Bixby. “Hospitality is at the core of our business, and the ability to align with a company that has the same consideration for its users is extremely gratifying.”

“From the beginning, our goal with Bixby was to combine cutting-edge technology with a platform that facilitated great service. It is these shared values that made joining Hello Alfred a natural fit,” added Bixby Co-Founder Alex Ohebshalom.

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How to Become a Property Manager in 3 Basic Steps

By Izabelle Hundrev

Source: Learn.2G

It’s never too late to make a career move, especially if you’re interested in the real estate business.

Although the realtor career path is the most well known in the industry, the job opportunities in real estate go far beyond just selling property. If you have experience with management or customer service and are interested in real estate operations, a job as a property manager could be the right fit for you.

It’s true that property managers manage property (try saying that three times fast), but that’s not all they’re responsible for. They’re also in charge of marketing their listings, finding tenants, scheduling repairs, and overseeing the day-to-day operations of their building(s). A career in this space can be incredibly rewarding, but before you can earn the title, there are several steps you’ll need to take.

In this article, we’ll lay out the exact path you need to follow in order to kickstart your career as a property manager. By following these steps, you’ll be on your way to a rewarding real estate career in no time.

Steps to become a property manager

If you’re looking to make a career switch to property management, now is the right time. According to the U.S. Bureau of Labor Statistics, the employment rate for property and community managers is projected to grow 10% over the next five years. Joining a growing industry is a smart move for any job seeker.

The steps below provide a general outline of what you’ll need to do in order to seek employment as a property manager.

Step 1: Identify the minimum requirements

Some states have specific requirements that must be met in order to legally become a property manager. For example, almost all states require that property managers earn a real estate license. Many essential property management tasks are considered to be real estate activities, so having a strong educational background in real estate is crucial to your success.

To get your license, you’ll need to enroll in an in-person or online real estate license school to take classes that prepare you for the licensing exam. The coursework covers real estate fundamentals, as well as more specialized topics such as real estate laws and contract clauses.

After checking the licensing requirements, you’ll also want to be sure you meet minimum education requirements that are standard in your local job market. Some companies will hire qualified candidates with a high school degree or equivalent, but most are looking for a bachelor’s degree in business, real estate or a related field. Be sure to browse local job boards to see what employers are looking for. Having a college degree or earning a real estate license will impact your journey to becoming a property manager significantly, so be sure to do your research to see which rules apply to you.

Step 2: Get certified

In addition to having a degree and/or a real estate license, you’ll also want to look into property management certifications. Getting a certification isn’t required, but it will give you an edge over other candidates when you start applying for jobs.

Types of property management certifications

Specialized certifications are administered by a variety of different property management organizations. Having a certification shows potential employers that you’re serious about being an expert in your field, plus you’ll qualify for member-only benefits at the organization. These benefits will vary from one organization to the next, but they typically include perks such as free professional development courses, conferences, and a network of like-minded professionals.

Below, we’ve listed several popular property management organizations and the certifications they offer.

The Institute of Real Estate Management

The Institute of Real Estate Management (IREM) offers four types of property management certifications:

  • Certified Property Manager (CPM) is the standard certification.
  • Accredited Residential Manager (ARM) is for residential property managers.
  • Accredited Commercial Manager (ACoM) is for commercial property managers.
  • Accredited Management Organization (AMO) is for real estate management firms.

The Building Owners and Managers Association International

The Building Owners and Managers Association International (BOMA) is an organization that serves the commercial real estate industry. They offer one primary certification:

  • Certified Manager of Commercial Properties (CMCP) is for commercial property managers in the early stages of their real estate career.

The National Association of Residential Property Managers

The National Association of Residential Property Managers (NARPM) serves the residential property management community. The certifications they offer are for more experienced property managers seeking continued education.

  • Residential Management Professional (RMP) for property managers that have experience managing at least 100 units over a two-year period.
  • Master Property Manager (MPM) is for property managers who have already obtained an RMP and have experience managing at least 500 units over a five-year period.
  • Certified Residential Management Company (CRMC) is for residential property management firms.

These are just three examples of professional property management organizations that offer certification courses for individuals looking to take their education and expertise to the next level.

Step 3: Seek out property management job listings

The final step is to officially kick off your job search. Build a resume that reflects all the work you did in the previous steps and highlights any important soft skills you have. With zero previous property management experience, you want to start out by looking for associate or assistant property manager job listings. As an associate, you will report directly to a senior level property manager and be able to learn from them directly on the job. Before you know it, you’ll have enough experience under your belt to start tackling more advanced tasks on your own.

In the digital age, many companies are using property management software to help run and maintain their daily operations. Candidates with previous experience using these types of solutions are in high demand, but showing you have the ability to learn how to use these tools quickly will also help you during the interview process. To familiarize yourself with the space and explore different solutions, check out property management software on G2.

What’s next?

Property management is a specialized sector of the real estate industry that is showing no signs of slowing down. Now that you know what it takes to become a property manager, it’s up to you to decide whether or not to take the plunge. If you build your experience on top of a strong foundation in real estate education, you’ll be on your way to a long and successful property management career.

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12 Key Traits To Look For When Hiring A Property Manager

Source: Forbes

If you’re new to real estate, you know there’s much to learn about the business—especially if you’re looking to rent out your property. To lighten the burden, you might consider hiring an individual or third-party company to help you manage your rental units. However, you’ll want to be exceptionally careful and considerate with your decision, as this person will be a reflection on you to your tenants.

If you’ve never hired a property manager before, you might not know the right qualities to look for. To help you make a smart decision, 12 members of Forbes Real Estate Council, below, discuss some key traits a good property manager should have. Here’s what they said:

1. Trustworthiness

First, ask yourself if you would trust that person to stay in or rent your home. Trust is often overlooked in business and I believe it should be the foremost thing we look for. – Joshua FraserEstated

2. Experience With Your Type Of Property

Hire a professional who has experience with the type of property you acquired. Commercial properties and tenants have different nuances than residential. Even retail will have different issues than an office. An individual with experience will be able to identify value-add opportunities and help increase your NOI due to their knowledge of rent and expense benchmarks for this type of property. – Catherine KuoElite Homes | Christie’s International Real Estate

3. Financial And Accounting Acumen

It is now common in many commercial real estate companies to completely separate accounting and property management responsibilities. Unfortunately, this means there is a large pool of professionals with little to no understanding of financial statements and accounting. Investors should carefully interview potential companies and, if needed, engage the assistance of their CPA in selecting a firm. – Bethany BabcockForesite Commercial Real Estate

4. Their Tenant Screening Process

The best property managers are ones who screen tenants by conducting background, credit and reference checks. It’s important to find property managers who are professional, reputable and well-established to keep both the landlord and tenants happy. – Beatrice de JongOpen Listings (YC W15)

5. Their Turnover Rates And Cost Of Vacancy

Investors often focus on the PM fee. Instead, focus on the turnover process. If your rent is $1,000 and PM is 10%, you pay $100 per month. At 9%, you only save $10 per month. Consider the cost of vacancy. The same unit cost $30 in lost income per day when vacant. “Become” a tenant, schedule a showing and see what this process looks like. If it is cumbersome for you, it will be for your customer. – Timothy VandenToornUnited Properties of West Michigan

6. Their Technology Stack

More property managers than ever before are using technology. But look for the company or individual that offers a full stack of service integrated with technology. You want a property manager who knows how to leverage the data about your property to make precise and proactive recommendations. Plus, if they’ve integrated on-site services, they’ll execute to maintain and protect your investment. – Chuck HattemerOnerent

7. Local Knowledge

Despite advances in technology, only so much can be done behind a computer screen. It is important the company or person you select to look after a property has “boots on the ground” and can check on the property in-person. Even better if someone can regularly drive or stop by, as this could catch any issues with the building or community before they become problems. – Joshua LyboltLifstyl Real Estate

8. Ability To Communicate

Pretty much everything other than communication skills is either math, law or logistics which can all be taught and learned, but communication or people skills is the number one thing I look for in anyone representing my interest in a business or property. – Frank DelucaDCL Healthcare Properties Inc.

9. Billing Transparency

On top of a rate to manage an apartment building, it is important to know the company’s policies for other charges including maintenance, leasing and other activities. Do they send you the bill directly or do they mark up maintenance or other orders? Do they take a fee or percentage for leasing units? Understanding upfront how they charge will alleviate common misunderstandings later. – Lee KiserKiser Group

10. Availability And Responsiveness

Want to be awoken at 2 a.m. by a tenant claiming their toilet is broken? This is why you hire a property manager. Hire a PM that has systems in place to answer and handle calls 24/7. Is the PM answering your calls quickly? You need a PM that dedicates their time to making sure your tenants are happy and your property is being cared for, saving you precious time and preserving your investment. – Angela YaunDay Realty Group

11. Values Cost-Effectiveness

There are uncontrollable costs like insurance, mortgage payment and taxes. Then there are controllable costs like turn times, marketing and maintenance or upkeep. So instead of mowing the lawn less frequently, thus affecting your tenant happiness and retention, find a more cost-effective vendor. It is not about eliminating the cost but controlling the cost. PMs who get this win. – Noel ChristopherRenters Warehouse

12. A Long-Term Mindset

Make sure they have a long-term mindset because real estate is a long-term play, not a one night stand. It’s a marriage. So make sure to surround yourself with individuals, agents, property managers and accountants that all have the same mindset as you. Make sure they have your best interest at heart and want to help you accomplish your goals. – Engelo RumoraList’n Sell Realty

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Why Smart Building Technology Is Here to Stay

By Lexie Lu

Source: SocPub

For as long as anyone can remember, buildings have always been rigid, unintelligent things. Most are nothing more than a frame or structure used to provide shelter, a place of work or general space. However, as is evident from the advancement of modern technology, that’s soon to change with the next generation of structural areas.

Intelligent, more-aware buildings are being developed to offer unprecedented levels of energy and resource efficiency, organizational management, general optimization, and improved occupant health and productivity.

It sounds a bit mad at first, but smart technologies — namely IoT and AI — are making it possible to create intelligent and heavily automated spaces for the modern world. These new structures are also forming the basis for the smart cities of the future.

A Memoori report reveals that the global market for the Internet of Things in Buildings (BIoT) will grow from $34.8 billion at the end of 2017 to $84.2 billion by 2022. That equates to a compound annual growth rate of 19.4 percent.

In addition, the report reveals that the Asia-Pacific region is leading the charge when it comes to the adoption of these platforms and technologies, with the U.S. not far behind.

The question is, why the sudden and exponential growth? What does smart technology truly offer the commercial world? What benefits will smart buildings provide?

1. Smart Tech Improves Energy and Resource Efficiencies

The extent of improvements depends on the technologies implemented and how they are used, but overall smart systems can vastly improve resource usage. In particular, buildings become much more energy efficient not just through better resource application, but also from enhanced monitoring solutions.

Smart lighting, for instance, can turn off expensive systems when no one is present in the building, or even to better manage them during off-peak hours. Leak detection sensors can discover potential water leaks and fix them sooner. Smart climate control systems can automate the cooling and heating processes to eliminate costly temperature changes.

Renewable energy application also becomes more viable thanks to smart technologies. Solar-powered systems can be supported through supplementary energy solutions when generation is paltry. That also opens up organizations to renewable energy accreditations and tax breaks.

2. IoT Empowers Autonomy

IoT and smart, connected devices are designed to collect and report vast quantities of information. The resulting data is used to improve conventional operations, as well as automate them in full. This augments user-focused processes to allow for more efficient worker and personnel tasks.

In a smart building, any rote and repetitive tasks are handled by an automated system, freeing up the workforce for more important and user-centric responsibilities.

3. Enhanced Convenience and Control

In addition to the many conveniences and enhanced control options smart technologies provide, there’s a remote element introduced too. Not only do decision-makers and management teams gain a boost in control options, but they can also handle such duties anytime, and from anywhere. This relates to all operations and aspects of a building’s management.

Imagine being able to fine-tune payroll and scheduling while on an international business trip. Adversely, climate control systems can be managed in this same regard to keep operating costs down. The improvements are offered in the enterprise and professional fronts, as well as property management.

4. Unprecedented Analysis and Intelligent Reporting Opportunities

With more robust information flowing in, decision-makers and personnel can continuously discover new opportunities. Operational data might reveal entirely new solutions that were never considered in the past.

The initial benefit is that efficiency is enhanced in many ways. This translates to the bottom line, allowing for lower operational costs and higher revenue streams.

5. Predictive Maintenance Is Now Possible

For decades, building maintenance has either been a preventive or reactive operation. Thanks to real-time data and more nuanced information, it’s now possible to carry out predictive actions. Sensors can measure building, space and equipment performance and deliver alerts based on contextual information.

If a system is losing efficiency, maintenance crews will not only be able to identify why but also take action to change course. In this way, equipment and spaces can be kept optimized and healthy for longer periods while mitigating downtime for the entire property.

6. Real-Time Space Management Is Enabled for All

Whether you’re talking about an entire corporate-owned facility or a smaller, sublet space, there are always situations where proper management is necessary. Maybe a meeting room needs to be properly managed or leased? Perhaps individual offices are constantly being swapped to accommodate a changing workforce?

Whatever the case, smart buildings introduce the concept of real-time space management and not just to higher-ups, but for everyone. Teams can reserve conference spaces. Employees can book offices or private rooms. Management crews can monitor — in real-time — how their building and rooms are being used.

7. IoT Increases Safety and Security

Understandably, it’s incredibly important for people to feel safe in their workplace or on the corporate campus in today’s landscape. Smart building technologies like IoT can enable real-time reporting and security assessment tools to help make total safety a reality.

The possibilities go far beyond conventional security solutions like cameras and general surveillance, however. An entire building can be controlled and interfaced remotely, which means security teams can do things like lock down specific areas to prevent unauthorized access. Colleges and universities are using smart technologies to track people on the property and deliver real-time safety alerts. There’s also a disaster awareness element, allowing for greater evacuation and management opportunities during emergencies.

8. Self-Diagnosing, Self-Monitoring and Self-Healing Spaces Are a Reality

Because smart buildings are constantly gathering information, the data can be used to structure systems and create more reactive situations. A building or facility can become self-diagnosing, self-monitoring and self-healing, allowing the people spending time within to focus on more important matters.

For example, if an elevator breaks down in a smart building, a control system can identify the problem, attempt to correct it and then report its findings to the necessary team. As a result, maintenance crews can respond in person, or simply remain informed about what the system did. This means problems are fixed much sooner, but also that the resulting teams can remain more hands-off.

9. More Synchronized Services and Operation

By nature, expansive properties are more siloed, keeping departmental teams and various sections separate in terms of operation and even communication. Smart buildings can break down these barriers and allow for a much more streamlined corporate process.

Imagine knowing when another department is on break or unavailable. Because internal teams are often dependent on one another at varying times and in different ways, this helps generate a much more organized environment. For instance, remote teams can see when HR is going to be out of the office, allowing for better schedule management and ample reaction times.

10. Smart Buildings See Increased Tenant Retention

For property managers and owners, smart building technology also allows for stronger controls over resource and space usage. New opportunities to improve convenience for tenants also help boost retention.

Managers can see not just how their spaces and buildings are being used, but can also identify ways to enhance convenience and functionality. Maybe adding another type of amenity is necessary? Perhaps tenants are leaving because they don’t have access to a particular service or function?

The data coming in can reveal the necessary insights to make these changes and optimize the entire property so it’s better suited for tenants.

The Future Is Smart

After considering many of the benefits listed, it’s impossible not to see a brighter, more intelligent future, particularly when it comes to the application of buildings and physical spaces. IoT, AI, cloud computing, remote technologies and much more will be key players in the next generation of physical spaces — rightfully dubbed the smart buildings and smart cities of the future.

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Important Property Management Trends for 2019

Source: Manage Casa

How will property owners and property managers improve business operations and revenue in 2019? By keeping a close and persistent eye on the major trends affecting future business performance.

Property management is a booming multidimensional business worth Billions. Improvements and threats will come from many directions.

The top 15 trends to watch are dominated by the new software and tech electronics and all the amenities tenants want. It’s the demands of tenants who want technology that’s driving big changes for landlords and property managers.

Keeping on top of industry trends and improving your business should be a priority in 2019. Just being aware of stats, views, opinions and news in the property management and housing markets can help keep you ahead of the crowd.

Trends Impact the Bottom Line Quicker Now

Trends aren’t gimmicks.  These improvments are responding to landlord’s and tenant’s pain points.  It’s not the apps, services, etc. that matter. It’s the need for them that makes property trends so interesting.

Owners and Investors Need Your Insight

Property owners and investors in general may not be housing demographic, technology nor customer service experts. Cultural trends and new software technology for instance, are invisible to them. However these will affect demand for their properties or how long they hang onto good tenants.

Your choice of software and apps might have big effect on future rental property portfolio earnings, yet they won’t see these trend “trains” coming unless they’re an avid property management blog reader.

Only you’ll understand the evolution. They’ll be relying on your forecasting and leadership here. Your expertise ensures their investment is protected and you know how to add value.

Upstart property management companies will be looking for an advantage to beat you, and an authoritativeness about the “new property management market” might be their opportunity. Make sure they don’t get ahead of you on this.

Property Management Trends 2019/2020

1.    Technology Trends: In 2019, the most influential trends might arrive from many different sources due mostly to technology.  New cloud services, Internet connnected devices, automation software are creating business advantages.

Fintech and Proptech are the buzzwords.   These technologies integrate well with modern property management software such as ManageCasa and they’re optimizing management in a way tenants appreciate.

2.    Demographic Trends: Millennial tenants are becoming more of the tenant market and what they want often requires high tech solutions. Without that technology, they consider you backward or irrelevant, even though you’ve got everything else nailed.

Without technology and growing property portfolio’s you may not be a

ble to keep up, nor satisfy landlords and owners that you’re capable of growth and efficiency. They’ll likely know from their first visit to your website or conversation on the phone that you’re old school.

Is it overhyped or underhyped? Well, renters love the ease of doing things when they can via their smartphone, on the bus or subway, at work, on the road in their car or at home.

3.   Rental Market Demand: Housing construction starts will grow in 2019 and for the next 5 years. Renters are weighing the buy vs rent decision, and some will make the choice to buy a home. That will in turn lower rents and raise vacancies. Your costs will go up and your revenues down.

4.   Booming Economy and Trade Tariffs: President Trump’s new tariff walls will likely mean the return of jobs across the U.S. including the long lost cities of the midwest and rust belt. High employment and rising wages among Millennials who are mobile will mean no city has to be left out of the new economy. New single houses, townhouses and multifamily developments will spring up creating opportunities for property management companies.

5 .  Government Restrictions: given how high housing prices are and how high rental prices have become in cities such as San Diego, New York, San Francisco and Los Angeles, the cries for rent controls will get louder in 2019. That’s a death sentence for many investors. From California to Texas, keeping an eye on state and local attitudes is smart.

6.   New Construction Trends: besides big growth in new construction, and government programs (such as the new $1 billion program in Vancouver, Canada) can impact your future rents and income potential.

Large multifamily buildings are the trend, due to so much pent up demand for units. Big developments near key transit locations will receive priority from government.

7.   Interest Rates and Inflation: financing, wages, utilities, and operating costs will rise in 2019 thus cutting into your net income.

8.   Software Technology: New software technology is offering improvements in simple accounting, time management, tenant screening, online payment, property maintenance and repair services, and property management analytics. Some offer complete solutions while others are woefully inadequate. Some might impose on your business creating addtional costs and adoption issues. Which solutions and apps should you adopt in 2019?

9.   Demographic Shifts: Babyboomers are finally retiring and the Millennial generation is out of their parents homes and into renting their own apartments. Your rental products and managment style will gradually be reshaped to suit them in 2019.

10.   Startup Property Management Companies: We’ve all heard about the growth in accidental landlords. Buying rental income properties is popular and many are realizing there is big money in property management. They will want to get serious about growing their portfolio and formally launching a property management company.These newcomers to property management won’t want anything to do with old PM practices involving spreadsheets, receipts, and check payments at month’s end. No, they’re not trained pros and they’ll want to simplify right away using property management software.

11.   Industry Consolidation: Big property management conglomerates are entering the independent property rental market. What are they looking for in properties or in property management companies they’d like to acquire? What services will they offer, e.g., maintenance).

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Safeguard The Value Of Your Commercial Property With The Right Management Firm

By Alex Radosevic

Source: Forbes

Experienced owners of commercial property understand that one of the most important decisions they must make after acquisition of an asset is the selection of a top-notch, highly experienced property management firm. Doing so helps ensure that a property is well-maintained, and also that it will appreciate in value over time. Anything less often leads to the opposite result, presenting owners with a series of challenges that have a deleterious effect on a property owner’s bottom line.

While anyone can put up a shingle and call themselves a property manager, savvy and experienced property owners understand the importance of vetting and securing the services of an experienced company with an enviable track record of success over the long term. Owners must carefully separate the wheat from the chaff, a requirement made all the more important by the fact that many property owners live a number of zip codes or even countries away from their assets.

Brokerage, investment and property management have been my firm’s focuses for over 20 years, so I understand the importance of a property manager’s performance to all parties involved in the relationship. The leading property management firms understand that no shortcuts exist when it comes to building a successful practice. They also know that their primary responsibility is to minimize the owner’s risk and maximize ROI, and that doing so leads to trusting, long-term relationships between property owners and the firms that manage their holdings. Doing anything less is often an abdication of a firm’s fiduciary responsibility to its owner-clients.

While owners of commercial real estate come in all shapes and sizes and from varying economic strata, all share two things in common: They want their properties to be well-maintained and stress-free, and to increase in value over time. A good property management firm understands this overriding premise and is committed to accepting this responsibility on behalf of a property owner.

I am often asked when speaking around the country how owners should evaluate and select a property management firm, either after acquisition of a property or when looking to replace their incumbent property management firm. An obvious starting point is that property owners should take no shortcuts when doing the necessary due diligence.

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How Location Analytics Can Pull Commercial Real Estate out of the Darkness

By Noam Ben Zvi

Source: Propmodo

Decision makers in the $15 trillion commercial real estate industry are forced to make huge decisions based on insufficient data. Surveys are expensive and slow. Other data sources are biased and limited, leaving professionals flying blind on choices worth tens of millions of dollars, or more.

Mobile location analytics, a recent entry into the field, is changing this picture dramatically by providing unprecedented visibility into consumer behavior. Location analytics collects data on the movement of individuals and presents it as an aggregate picture. Where do people shop? What days do they go to a specific restaurant and at what time does that restaurant see the most visitors? How did they get there and where did they visit afterward? This unique ability to visualize movement provides strong behavioral data that underlies performance.

By showing real-time and accurate insights into the movements to and from any place, this data can surface real trade areas, customer journeys, brand preferences, cross-shopping and much more. The change is hugely significant as it finally empowers the industry to make data-driven decisions on the questions that define success for their business. From acquisitions to leasing to marketing and operations, location analytics brings commercial real estate out of the dark.

Here are some examples of how location analytics drives success in commercial real estate.

Accurate Knowledge – True Trade Areas

Anyone who has spent time in the competitive commercial real estate industry knows many of the professionals rely on gut instinct to inform significant decisions. By leveraging location analytics, professionals can put proven rules and concepts behind their gut feelings to help make these concepts more tangible and widely applied.

One example of location analytics in action is the examination and identification of trade areas. Without the specificity provided by location analytics, companies are forced to take a generic approach to their trade area analysis. The basic assumption is made that an audience exists within a radius that extends a certain number of miles beyond the actual store site. However, analyzing true trade area data consistently shows that top retailers often miss major opportunities to expand their audience and drive more sales. A generic three-mile radius ignores critical physical and demographic factors that can determine where a property’s audience actually originates.

Example of a true trade area for two California based properties that show a variety of unexpected realities.

By looking at foot traffic patterns, a company can finally know – and not guess – where their audience comes from. This has huge implications for how they spend marketing budgets, where they build their next store, or even how they analyze their competitive landscape. Location data goes beyond guessing and allows professionals to create an accurate picture of their audience behavior.

Maximizing Investments – Property Acquisition

A simplified analysis of the cost to buy and develop a shopping center estimates the investment at $25 million, on the low end of the spectrum. With this large financial stake, a developer should look to see major returns, as the cost of failing is significant. What is the health of the prospective center’s tenants? How do they rank compared to national and local benchmarks?

Comparing two shopping centers in New Jersey by their weekly foot traffic.

Obtaining objective data that can be applied to all cases is a huge asset. To begin, an investor can develop data-backed parameters on which factors drove success on previous sites. Is the proximity of a customer segment’s workplace the key to success for a specific location? Is the most important factor the mix of tenants, or the overall number of foot traffic nearby? Putting a number behind these components can help developers identify ideal properties and turn those properties into successful entities faster than ever before.

Analyzing two shopping centers based on the time visits take place.

The ability to identify the high opportunity sites and apply effective strategies to them based on set performance data can be a defining trait in driving success.

Analyzing Competitors and Benchmarking Performance

In order to maximize the potential of any property, it is crucial that the property owner understands the behavior and trends of the target audience. Point of sale data, or even counting cars in a parking lot, can provide strong indications. The lack of access to competitor information provides a limited picture. Without location analytics, a property owner cannot answer key questions: How does this property stack up to similar ones in the area? Is a store being negatively impacted by a wider trend or is there something happening at that specific site that needs to be fixed?

Using a single source of data to understand all properties enables an “apples to apples” comparison that reduces biases and improves the quality of decision making. It also empowers true competitive intelligence which enables retailers, property developers and more to gain deep insights into the strategies that drive results. The ability to reveal competitor strategies is a massive opportunity to improve processes and bottom line performance.

Understanding Customer Behavior

Understanding the customer is the Holy Grail of commercial real estate. Seeing how people move, interact, and engage positions retailers and property owners to create the experiences that will drive revenue. It allows developers to invest in high-quality sites, identify better tenants and empower those tenants to more effectively engage with their audience.

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7 Ways to Make Budgeting Season Less Painful

By Christine Bright

Source: Property Management Insider

Yes, it’s arrived, like a distant relative who you wish would not visit and definitely not stay. It’s budgeting season.

A regional manager once quipped, “I’d rather have root canal surgery once a week than create the budget.” Ouch!

Why is this such a dreadful time of year? The year is making the turn to the backstretch and the finish line will soon be within sight. It’s typically the busiest time of year, and momentum is building. Yet, we are held accountable to meet or beat the numbers, and often managers or first-line budget preparers are just not educated in the whole budgeting and forecasting process.

Sometimes we can be our own worst enemies, which is what makes budgeting so painful. But many pain points can be avoided. The beginning of budget season doesn’t have to be hard to swallow. Identifying and correcting processes that can help make budgeting feel more comfortable is the first step.

Here are seven ways to make the season less like pulling teeth:

1. Make preparation time count

Poor preparation often results in a rocky budgeting process. Don’t expect to just sit down and knock out a budget without being aware of market conditions, including economic forecasts for your sub-market. Marketing, demographic and economic changes impact leasing and retention and, in the end, profitability.

Research prior to committing to revenue is critical. Corporations moving in and out of your market can have a substantial impact on the bottom line.

2. Set clear objectives and targets

Ever try playing darts blindfolded? Just try to hit that bulls eye (and watch people take cover).

It’s important to provide clear objectives and targets for your budget preparers so they have direction. Ask questions like “What are the expectations for income growth and expense control?” Also, “Is the property under review for renovation and how will that impact income and expenses?” For novice budgeters, this is critical information. Written guidance, checklists with what is expected, and guidance on how to use your budgeting model are critical to success.

3. Forecasting is a comprehensive process, not folly

Projecting losses and gains and year-over-year growth without knowing your starting point is dangerous. Failing to forecast prior to budgeting eliminates all real hope of getting a true idea of YOY performance. Being able to compare end-of-year revenue at the beginning of the budget cycle is important. If starting numbers aren’t correct, you will be writing variance explanations each month to your owners.

While expenses are usually easier to project, forecasting end-of-year market and effective rents, Loss to Lease, concessions, vacancy and bad debt can be a challenge. For example, forecasting economic occupancy at 90 percent to finish December and starting the January budget at 95 percent or boosting Gross Potential rent more than the minimal amount could cause the remaining budgeted revenue to be off substantially for the entire year.

4. Avoid averaging or annualizing

Taking an average or annualized amount and budgeting it equally for each month makes expense-line items messy. Seasonality, move-ins/move-outs and resident retention impact various line items. Utilities, turn costs and other income are line items that should never be averaged. This is a common mistake made by novice budgeters that asset managers often complain about.

Also, remind budget preparers that just because an expense or income event happened one year does not mean it will repeat. Timing issues, staffing changes or shortages, one time supplier refunds or major repairs such a boiler system may be a one-time occurrence and shouldn’t be factored into the budget.

budgeting season

5. Take the blinders off before budgeting Capital

Property managers who have spent any length of time on a property may be so accustomed to seeing an issue that needs fixing that it becomes invisible to them. Property walks, therefore, are critical to identify Capital issues that need to be addressed and budgeted. Walk interiors and all the way around buildings, common areas, signage, flags, models, and office areas.

While it is very unlikely that everything will be addressed, it may bring things to light that were otherwise ignored. Also have someone perform a light check at night and look for potential safety risks resulting from poorly lit areas. Be aware of any city or state regulations that might impact common areas.

6. Consider historical values when budgeting

While reviewing a preliminary budget for the first time with a property manager, I asked why an expense line that did not appear to have any historical value was budgeted. For example, a $500-a-month expense would surface out of the blue on an expense line that had previously been zero. “We always budget that just in case,” was the reply.  Just because you have always done something, does not make it the right choice. Unless, the budget item can be justified, don’t just plug a number in to be on the safe side.

7. Speak the truth and back up the budget with solid comments

Quality commentary and explanations throughout the budget process are important to selling the game plan to owners.  Budget preparers should avoid statements such as “based on historical trends” when explaining a line item. Cite specific trends so the numbers hold water. For example, explain that payroll increased 15 percent because of staff shortages in the previous year. Solid comments will reduce review time substantially and speed along the budget process.

Budgeting and forecasting are skill sets, and managers should invest time in their teams to ensure time spent is meaningful. Pre-budget season preparation will make it much simpler to forecast or see into the future. A solid budget is one that takes into consideration past and present trends, as well as market conditions and property knowledge.

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Six Tips for Being a Great Commercial Property Manager

Source: PayRentChex

One of the greatest ways to increase the value of commercial real estate is through good property management. While buying a property at the right price is critical, what you do with it after the purchase is often more important. Here are some key tips for good property management.

Keep tenants happy
Unlike residential properties, it is very difficult and expensive to find new tenants for commercial properties. It can take two to nine months. A leasing commission isn’t due until you sign the lease, and often you have to spend money on the space to make it leasable. Therefore the best way to maintain your income is to keep existing tenants from leaving.

Maintaining a positive tenant relationship involves regular communication, anticipating their needs, and being proactive.

Maintain the property
The appearance of a building is important for a business’s success and tenants pay more for better maintained properties.

In the commercial real estate business we designate properties as Class A, B, or C based on the state of the property. Class A properties have higher rent and lower turnover than Class B or C. While a tenant may settle for a Class C property, as the business grows (or rents decline), the tenant will often move to a Class A property.

As with all properties, deferring maintenance can lead to costly fixes later. For example, resealing a parking lot every three years can seem expensive and unnecessary, but it pushes out the need for asphalt replacement (at 10 times the cost of sealing) by decades.

For a large commercial property, the list of things that need to be regularly maintained is extensive. If you don’t have experience managing commercial properties, you should rely on a seasoned property manager to do the necessary inspections.

Improve the property
Perhaps the best way to increase the value of a property is by making targeted improvements. Since the value of a commercial building is derived solely from the income it generates, it is easy to quantify the value of an improvement based on the potential increase in rent.

For example, if a landscape upgrade costs $20,000 and it’s expected to increase the rent by $750 per month (due to increased rental rates or filled vacancies), not only will you get your money back in two years, but that minor upgrade increased the value of the property by $150,000 (at an 8 percent cap rate)!

Know your product
Owning and managing commercial real estate requires specific knowledge about that product type. Retail, office, and industrial properties each require different skill sets, understanding of your customer, and maintenance expertise. Know what amenities your tenants require, what services you’re expected to provide, and the aesthetic standards typical of that product type.

In addition, each product type has different equipment (signage, boilers, roll up doors, bathrooms) and different preventative maintenance requirements. Because of this, it’s important you have a team that is experienced with the type of property in which you are investing.

Know the leases inside and out
Leases are complex, cumbersome, and hard to read. Yet one of the greatest ways to increase property value is through diligent analysis and follow through of the lease provisions in place.

There are many provisions in leases that either allow the owner to collect more money or the owner to bill back expenses. Often rental rate increase and late payment provisions are not followed. In large properties, there are typically multiple variations of leases for different tenants. Having a clear understanding of each lease and the diligence to follow through during the entire period you own the property will significantly increase its value.

Have an asset management plan
Like any investment, commercial real estate should involve a plan. Each property should have its own strategy. Why are you investing in that property? What is the upside potential? How do you achieve it? What is your holding period? Five years? Ten years? Until death? How does your holding period affect the investments you make in the property? How do you achieve optimal value (cash flow or sale value depending on strategy) during your holding period?

These are the types of questions you should ask when evaluating a property. After purchasing, you should put the game plan in place for achieving your strategy. An experienced asset manager knows how best to achieve objectives based on the stated strategy.

Owning commercial real estate can be a tremendously rewarding investment. But unlike investment in stocks or bonds, it requires active management and participation. Following the steps above will help ensure you achieve the highest income and sale price for your commercial real estate.

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The Changing Face of Property Management

By Tom Stokes

Source: CCIM

A day in the life of a property manager today dramatically differs from that of a decade ago.

Modern office and multifamily property managers have greater responsibilities beyond traditional rent collection and bill paying. They now arrange insurance; provide tax information; design and collect renovation bids; develop marketing plans; hire, manage, and motivate staff; coordinate maintenance services; improve landscaping; oversee property security; ensure compliance with government regulations; and report income and expenses.

To accomplish these tasks, today`s property managers must evaluate and respond to changing market conditions and world events, be aware of new developments in technology, and find additional ways to increase fee income. At the same time, they must maintain the personal client relationships that are so integral to their business.

Adapting to Changing Times In recent years — and especially in the past few months — numerous external factors have affected how property managers work.

As licensing requirements, government legislation, lender regulations, insurance requirements, environmental concerns, and accounting and taxation issues become more complex and property specific, managers have begun to specialize. In addition, the growth of real estate investment trusts and other large real estate companies has created a consolidated marketplace.

A result of this consolidation is increased use of branding, in which companies develop a unique image based on management services that translates across all properties. Property managers often are critical to developing and maintaining a company`s branding identity.

Branding strategies are key to surviving economic downturns. Building a positive brand image helps retain tenants; however, a negative image can do just the opposite. Thus, it is critical to ensure that customers have a positive experience with the brand at all times. Since property managers have an essential role in maintaining strong tenant relations, they should have plans in place to manage tenant or service provider problems quickly and easily.

For example, EpiCity has a problem resolution program that explains to customers how the company expedites problems and complaints through management. By informing customers of the process, more complaints are resolved without resorting to litigation, outside mediation, or arbitration.

Using e-mail and voice-mail for placing work orders is another general way to help customers gain a positive experience. One specific example, on a larger scale, is the Web portal offered by essention, a supplier of Internet-based property management solutions. The company stores important property information, including drawings of each suite and real-time operation of fan motors, heating, ventilation, and air conditioning registers, floor temperatures, and alarm systems. Also offered is a 24-hours-a-day help desk to answer basic tenant questions and dispatch on-site or third-party maintenance personnel as needed. Services such as this allow good management operations to expand into additional markets and eliminate the need for an on-site presence in each submarket.

Property insurance is another new wrinkle for managers. Since Sept. 11, 2001, insurance rates for investment real estate have risen as much as 75 percent on some product types. According to a southeastern regional insurance agency, since Sept. 11, there is 50 percent more capacity (dollars available to pay losses with) in the insurance business today. Moreover, some insurers have drafted terrorism exclusions that will not cover terrorist attacks in future policies. Managers traditionally have relied on the insurance coverage provided in the owner`s policy for their protection. If coverage is lessened, managers become more vulnerable and at risk.

As well as national trends, property managers also must be ready to adapt to local external factors such as changing urban and economic trends.

For example, in 1994, Atlanta was emerging from an economic recession in which the multifamily segment was especially hard hit. One spot tapped for economic improvement was the area surrounding the Lindbergh transit station, which was across the street from a 304-unit apartment community.

The building`s owner asked the property management company to represent its interests in meetings with resident and homeowner groups. The property management company formed a team of four key personnel to work on the project, including the site manager of the community, the senior property manager, the chief financial officer, and the president. The team developed a program to determine more specifically the objectives and potential outcome of the study and juxtaposed this with the needs of the client. Due to the property management team`s active role in the process, the building owner accomplished all of its objectives.

A property manager`s role in understanding the local leasing market also has changed. Leasing lead time is increasing. As lease rates rise, government regulation of construction and renovation increases, and technology issues become more complicated, it is critical that tenants see space “ready to go.” Property managers must work with their clients and their leasing personnel to anticipate tenant needs and make infrastructure and other changes before a lease is signed.

Technological Advances Numerous advances in technology are helping property managers do their jobs more effectively.

As in most industries, computerization has provided some relief regarding data collection, manipulation, and storage, as well as new and better means of communication.

Many property management companies already have deployed terminal server platforms that allow their personnel to connect to company networks over the Internet and run applications in a Web browser or through a proprietary client. Citrix is one of the most prevalent companies providing these platforms. Excalibur Group in Atlanta has such a system. According to company president Mike Nelson, “This makes us tremendously more efficient. Our folks can get to what they need from home or even a client`s property if necessary.” Nelson has taken this application even one step further. He currently is in the beta-test phase of allowing his clients to connect to the system to run reports on their properties using the Yardi software that his staff utilizes to manage their portfolio.

Property management software also has exploded in the last 15 years. A few pioneers such as Yardi now compete with dozens of other applications that have become more specialized. (See “Technology Buyers Guide: A Man(ager`s) Best Friend,” CIRE, May/June 2002.)

Advances in technology also have helped property managers analyze buildings` energy consumption and develop strategies to manage energy more efficiently to lower total operating lease costs.

For instance, by creating strategic alliances with Enerwise Global Technologies and Strategic Energy, Grubb & Ellis developed an Internet-based energy management platform that enables property managers to collect and analyze energy use data, share information and best practices, and help clients develop demand-side and supply-side energy management programs. Programs include designing purchasing programs customized to a client`s particular needs, conducting tariff and rate analyses, and acting as the client`s agent to procure energy in deregulated markets, including the use of aggregation to increase purchasing power. It also allows managers to isolate costs for individual tenants and allocate these costs based on actual tenant energy use.

Revenue Beyond Rent To stay ahead of the game in 2002, property managers must continue to look beyond rent as the sole revenue source. Identifying new ways to add value to properties also is key to gaining and retaining tenants.

In the past, tenants paid common area maintenance fees for janitorial services and some utilities. Today, fees are more widespread, collected for services such as applications, administration, memberships, parking, secretarial services, furnishings, and construction management.

An emerging multifamily property trend is offering pay-as-you-go features such as high-speed Internet connections, wiring for surround sound, exclusive club memberships, fitness club programs, premium parking passes, and access to social areas and conference facilities with high-quality audio/visual equipment.

A similar trend is occurring in the office sector. For example, an Equity Office Properties` class A building in Atlanta has a built-in conference room, training room, and auditorium that tenants can rent.

Fiber-optic broadband service is another add-on that Equity Office includes in many of its buildings. It also has a “fast office lease” available in some areas for tenants that are in a hurry to move in and want immediate access to telephone and data lines, furniture, office supplies, and kitchen supplies. Many property managers also make flu shots, blood drives, book fairs, and other events available to tenants.

Aside from fees, property managers should look to new technologies to find additional revenue sources. For example, in certain markets, renting out rooftop space for telecommunications equipment has created a new and profitable revenue source. (See “Towers of Babble,” CIRE, September/October 2001.)

Attracting and Retaining Tenants Despite the numerous changes in property management, maintaining good curb appeal continues to be a critical aspect of getting prospects in the door.

But while pleasant buildings and landscaping add to a property`s visual appeal, other attractions have become equally important. For example, some office properties have added amenities such as restaurants, travel agencies, laundry services, and car washes to add to a facility`s allure.

Some multifamily properties now offer residents various amenities. For instance, prospective tenants at Oakwood Corporate Housing properties can choose from packages including furnished apartments, furnished offices, specialty kitchens, and even a kids` package. Fitness clubs, movie theaters, day-care centers, dry cleaners, car rental, conference rooms, and activity programs also are popular add-on features in many new multifamily developments.

Security issues are another significant factor in tenant relations. Multifamily communities in urban settings still struggle with how to increase security effectively. Property managers typically use paid security patrols or have a local law enforcement officer live on the property to provide security for a reduced rent.

In addition, many property managers believe that the best protection is an involved and informed resident group. For example, during a recent spate of break-ins and vandalism on Buford Highway just north of Atlanta, a coalition of 11 apartment community managers began to meet weekly to share information. The heightened awareness was transferred to the residents, whose involvement led to the apprehension of some suspects.

In another case, the property management team for Equity Office recognized the security exposure that a sprawling office park in a wooded, park-like setting in Atlanta presented. Restricted parking access and individual building security personnel were not feasible given the buildings` design, layout, and budget. To overcome these obstacles, the property management team added building access control systems to limit unnecessary, after-hours foot traffic. The company also contracted for a security patrol service and formed a close relationship with the county police department to provide focused attention on the office park.

Other aspects of security for property managers to consider include personal safety, building integrity, and systems administration. With heightened concerns since Sept. 11, 2001, it is prudent to study each of these areas for potential security weaknesses.

But clearly, good old-fashioned customer service is key to successfully attracting and retaining tenants. Many of the common-sense basics to achieve this haven`t changed: answering the telephone promptly and politely, returning telephone calls quickly, and resolving maintenance requests promptly.

Next Up As the real estate investment market matures, the pressure on professional property managers increases. Some 10 years ago, virtually no school offered a bachelor`s degree in real property management; today several do.

Technological advances, along with changing client needs, will affect the property manager`s role over the next decade. The job will continue to evolve as technology capabilities grow, infrastructures transform, and the world changes. Despite the numerous changes on the property management horizon, one constant will remain: The importance of personal customer service is an essential part of every property manager`s role.

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3 Ways to Master Commercial Property Management

By Elizabeth Millar

Source: AppFolio

Life is about to get a lot better in the commercial property world. With the economy on the upswing, previously abandoned industrial and retail areas are experiencing astonishing new growth. Crowded or overpriced urban centers are encouraging businesses to look beyond Main Street and rent in unconventional spaces to attract customers more affordably. America is falling in love with chic new microbreweries popping up in old storage facilities or exercise studios emerging from reimagined factory space. With a surge of young and driven businesses gaining confidence in the market, now is the time to reinvent your own commercial property management practices and help your business grow.

How can you Master Commercial Property Management?

The 3 Ways to Master Commercial Property Management slideshow below will highlight the following three areas that can hit PM’s the hardest, and what you can do to stay on top of your game:

#1 Save Time with Accounting

Gone are the days of spreadsheets and paper files. Stop rifling through files and folders and centralize your data in a secure and accessible location. Most accounting tools also do CAM Reconciliation, so you can say goodbye to the worst headache of the year with a few easy clicks.

#2 Have a Killer Maintenance Plan in Place

If one of your commercial properties is stuck with a maintenance problem for even a day, that could mean massive revenue losses for your tenant, leaving you with a bitter business. Online maintenance tracking and reporting is a great way to clean up messes and your act.

#3 Market Your Technology to Attract Owners and Tenants

Sure you have brokers, but are they getting the word out about your properties like they should? Take matters into your own hands by formulating your own marketing plan, and show your owners and tenants what kind of tools you are using to make their lives better. As their businesses grow and their needs for space become greater, renewed confidence in your management team could mean big money down the line.

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Important Property Management Trends for 2019

Source: Manage Casa

How will property owners and property managers improve business operations and revenue in 2019? By keeping a close and persistent eye on the major trends affecting future business performance.

Property management is a booming multidimensional business worth Billions. Improvements and threats will come from many directions.

The top 15 trends to watch are dominated by the new software and tech electronics and all the amenities tenants want. It’s the demands of tenants who want technology that’s driving big changes for landlords and property managers.

Keeping on top of industry trends and improving your business should be a priority in 2019. Just being aware of stats, views, opinions and news in the property management and housing markets can help keep you ahead of the crowd.

Trends Impact the Bottom Line Quicker Now

Trends aren’t gimmicks.  These improvments are responding to landlord’s and tenant’s pain points.  It’s not the apps, services, etc. that matter. It’s the need for them that makes property trends so interesting.

Owners and Investors Need Your Insight

Property owners and investors in general may not be housing demographic, technology nor customer service experts. Cultural trends and new software technology for instance, are invisible to them. However these will affect demand for their properties or how long they hang onto good tenants.

Your choice of software and apps might have big effect on future rental property portfolio earnings, yet they won’t see these trend “trains” coming unless they’re an avid property management blog reader.

Only you’ll understand the evolution. They’ll be relying on your forecasting and leadership here. Your expertise ensures their investment is protected and you know how to add value.

Upstart property management companies will be looking for an advantage to beat you, and an authoritativeness about the “new property management market” might be their opportunity. Make sure they don’t get ahead of you on this.

Property Management Trends 2019/2020

1.    Technology Trends: In 2019, the most influential trends might arrive from many different sources due mostly to technology.  New cloud services, Internet connnected devices, automation software are creating business advantages.

Fintech and Proptech are the buzzwords.   These technologies integrate well with modern property management software such as ManageCasa and they’re optimizing management in a way tenants appreciate.

2.    Demographic Trends: Millennial tenants are becoming more of the tenant market and what they want often requires high tech solutions. Without that technology, they consider you backward or irrelevant, even though you’ve got everything else nailed.

Without technology and growing property portfolio’s you may not be a

ble to keep up, nor satisfy landlords and owners that you’re capable of growth and efficiency. They’ll likely know from their first visit to your website or conversation on the phone that you’re old school.

Is it overhyped or underhyped? Well, renters love the ease of doing things when they can via their smartphone, on the bus or subway, at work, on the road in their car or at home.

3.   Rental Market Demand: Housing construction starts will grow in 2019 and for the next 5 years. Renters are weighing the buy vs rent decision, and some will make the choice to buy a home. That will in turn lower rents and raise vacancies. Your costs will go up and your revenues down.

4.   Booming Economy and Trade Tariffs: President Trump’s new tariff walls will likely mean the return of jobs across the U.S. including the long lost cities of the midwest and rust belt. High employment and rising wages among Millennials who are mobile will mean no city has to be left out of the new economy. New single houses, townhouses and multifamily developments will spring up creating opportunities for property management companies.

5 .  Government Restrictions: given how high housing prices are and how high rental prices have become in cities such as San Diego, New York, San Francisco and Los Angeles, the cries for rent controls will get louder in 2019. That’s a death sentence for many investors. From California to Texas, keeping an eye on state and local attitudes is smart.

6.   New Construction Trends: besides big growth in new construction, and government programs (such as the new $1 billion program in Vancouver, Canada) can impact your future rents and income potential.

Large multifamily buildings are the trend, due to so much pent up demand for units. Big developments near key transit locations will receive priority from government.

7.   Interest Rates and Inflation: financing, wages, utilities, and operating costs will rise in 2019 thus cutting into your net income.

8.   Software Technology: New software technology is offering improvements in simple accounting, time management, tenant screening, online payment, property maintenance and repair services, and property management analytics. Some offer complete solutions while others are woefully inadequate. Some might impose on your business creating addtional costs and adoption issues. Which solutions and apps should you adopt in 2019?

9.   Demographic Shifts: Babyboomers are finally retiring and the Millennial generation is out of their parents homes and into renting their own apartments. Your rental products and managment style will gradually be reshaped to suit them in 2019.

10.   Startup Property Management Companies: We’ve all heard about the growth in accidental landlords. Buying rental income properties is popular and many are realizing there is big money in property management. They will want to get serious about growing their portfolio and formally launching a property management company.These newcomers to property management won’t want anything to do with old PM practices involving spreadsheets, receipts, and check payments at month’s end. No, they’re not trained pros and they’ll want to simplify right away using property management software.

11.   Industry Consolidation: Big property management conglomerates are entering the independent property rental market. What are they looking for in properties or in property management companies they’d like to acquire? What services will they offer, e.g., maintenance).

12.   Specialization: Given growing complexity in PM licensing requirements, government legislation, lender regulations, insurance requirements, environmental constaints, and accounting and taxation property management professionals have begun to specialize. Will expertise in any area give you a business advantage? What training and licensing must you obtain?

13.   Insurance: Changes in legal liability mean more renters should have their own renters insurance, and they will. Similarly, landlords will also need to be sure of their own landlord insurance. Is insurance coverage for them a value add for your company?

14.   Digital Amenities including Free Wifi: Here’s benefits tenants love. It’s for large multifamily buildings or large portfolio managers to either provide free wifi or create it as an affordable option for tenants. Wifi may be the coin operated washing machine of 2019.

15.   Smartlocker Storage: We’re in the era of Amazon. Amazon’s growing share of retail shopping is shocking. Tenants will need some way of accepting packages at their apartments, many of which don’t have suitable storage. Smartlockers allow them to pick up parcels when they can. The tenant receives a digital message and unlock code on their smartphone. Yes, another app.

Technology is just trying to keep up with modern renters lifestyles. So you’ll need to keep up with property management technology.

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How Property Managers Can Face the Challenge of Scale Head-On

By Elizabeth Millar

Source: Appfolio

Have you found yourself struggling to scale your processes with your changing business? You’re not alone. What methods you had in place for your business even five years ago, may no longer be working with the state your business is in today. Find out how Patrick Bain, President of Long & Foster, was able to tackle the challenge of scale and set his company up for success no matter what the future holds.

Scaling Processes For A Changing Property Management Business

Long & Foster Property Management is a large real estate company owned by Berkshire Hathaway HomeServices, they manage more than 7,500 units and is the largest property manager of single-family homes in the Mid-Atlantic region. They desired to scale every process and transaction within their property management system due to the size of their portfolio. When managing thousands of units, it’s counter-productive to have various ways of accomplishing the same tasks. They were looking for a simple, easy-to-replicate process, so they turned to AppFolio Property Manager PLUS. According to Patrick, “When I look to the future of the industry, I know we can only get where we want to go with AppFolio Property Manager PLUS.”

Switching to AppFolio Property Manager PLUS

In speaking with Patrick, we found that the biggest reason they decided to make a software partner switch was to solve their challenge of scale. In Patrick’s own words, here is what he found with AppFolio:

To maintain a high standard of service, we also need to have reliable and repeatable processes for our teams. Whether it be maintenance work orders or the marketing and leasing flow, we’re designing scalable workflows within the product, and efficiently running our business. For example, today we process more than 1,000 work orders a month easily through AppFolio. I am confident that as we continue to grow, even if we’re managing 5-10,000 work orders a month, our processes will allow us to do the work with very little impact on our customers’ experience.

Long & Foster’s vision for the future is to change the single-family property management space and become innovators as traditional property management transitions into asset management. To deliver on the true value of asset management, property management companies will have to partner closely with software providers to create memorable, modern customer experiences. Patrick believes AppFolio is the future of the property management industry.

Find a Technology Partner That Understands Your Business

When it comes to the technology that runs your business, it’s critical to not only get the features you’re looking for, but also a true partnership that will support you through the years. Take it from Patrick, “I would recommend AppFolio to any property management company, regardless of the size of their portfolio. If it’s a small company that wants to grow, AppFolio has the tools and the team to help that company grow. And if it’s a big company, that wants to get bigger, AppFolio has the strategy in place to be the top software provider in the property management space.”

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Can Your Properties Benefit From Energy Audits?

By Elizabeth Millar

Source: Appfolio

Concerns over environmental protection have prompted real estate investors to pursue higher standards of energy efficiency. In doing so, they reduce their rental properties’ footprint and secure their reputation as a responsible property owner. And you as the responsible property manager can promote energy efficient upgrades to attract tenants with eco-friendly lifestyles.

But where do you begin in getting your owners on board if they aren’t already leading the charge? If you’re interested in the benefits of an energy-efficient property, you might feel overwhelmed with options. You can choose simple, cost-effective upgrades like new windows, spend a moderate sum on new appliances or invest in solar panels if you have the cash to spare.

Whichever route you take, you’ll find it’s a smart idea to conduct energy audits on your rentals before moving forward. That way, you’ll know which areas of your property need improvement, and which you can leave alone.

1. Conduct Energy Audits on Your Properties

You have two choices when conducting energy audits. If you’d rather save money, you could perform the energy audit yourself, using tools like the Home Energy Saver to guide you in the right direction. Alternatively, you could hire an energy professional to inspect your residential property and provide an assessment.

While you’re likely interested in conducting the audit on your own, you might end up spending more instead of less if you miss areas of your properties which need improvement. An energy professional has the experience to locate these areas, and after they’ve finished, they’ll offer useful recommendations.

2. Organize Your Timeline for Renovations

As we mentioned above, it’s a smart idea to conduct an energy audit on your properties before moving forward with renovations. You’ll leverage the data from your audit to prioritize renovations, choosing to pursue projects based on necessity instead of intuition. Try to answer these questions:

  1. Where are the greatest energy losses in your rentals?
  2. Which projects have the highest return on investment?
  3. How long will it take for these projects to pay for themselves?
  4. Which renovations are urgent and which can you postpone?
  5. Are you capable of making the changes yourself or will you need help?

After you’ve answered the questions above, you’ll have a solid framework to build on as you continue. Reference other material with helpful tips for saving money and energy, and as you collect information, begin to polish your plan. Build a timeline, and do your best to remain on schedule.

3. Search for Incentives to Minimize Costs

Some property owners hesitate when they review the costs of energy-efficient upgrades. But there’s no reason to worry, as they could qualify for federal, state, local and utility incentives which will help pay for renovations. Research the Database of State Incentives for Renewables and Efficiency for tax credits and rebates.

For a minimal investment, you don’t need solar panels to make a considerable difference in the energy consumption of your property. Close to 40 percent of all energy usage in a building involves lighting, and the addition of CFL, LED and halogen incandescent light bulbs can earn incredible energy savings at a comparatively low cost.

Planning Your Energy Audit

If you see the appeal in an energy-efficient property, an energy audit is the best place to begin your renovations. After you’ve determined the most cost-effective and practical improvements, you’ll feel far more confident in your decisions. It starts with an assessment of your rental properties.

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