CRM Residential’s Post

Me in 2019: "There is no way we can manage our apartments (34 units)." Me in 2023: "We can manage our apartments (351 units)." - When I started buying small multifamily properties in 2019, I had zero interest in self-management. 🙅 - I was more than happy to let someone else handle the worst parts of the business; tenants, termites, and toilets. 🤢 - It wasn't just about what I was trying to avoid, but I was also trying to make sure I could continue to focus on moving the business forward- finding our next deal and raising capital. 🏃 So, what changed between 2019 and 2023? Well, over time, I developed several conclusions about property management: 1) The on-site property manager and the on-site maintenance tech are doing 90% of the work. - If we can hire good people and support them well, they will do 90% of the property management work for us. We don't have to know how to do all of the work necessary for managing a property because we'll have employees who are fully capable of doing this work as part of our team. 2) Third-party property management companies are designed to make money off of the properties they are managing, and will therefore make decisions based on this, not necessarily what's best for the property. - If we manage our own properties, we will be focused on making our properties profitable, not our property management company, because we are so heavily invested and heavily incentivized by our properties' performance. 3) Third-party property management companies don't worry about expenses as much as I do because (at least to some degree) they are paid based on revenue, not net operating income. - If we manage our own properties, we will be incentivized to decrease expenses (as well as increase revenue) because, as property owners, we're paid off of cash flow (and value), not just a fee based on revenue. 4) When the primary focus is on increasing revenue, you are going to experience higher turnover, higher vacancy, and increased turnover costs. (Yes, you'll likely also experience higher rent, but not enough to offset vacancy and turnover). - If we manage our own properties, our primary focus will be increasing net operating income/cash flow, not just increasing revenue. We'll focus on decreasing turnover and maintaining high occupancy. This will increase cash flow and decrease turnover costs. These 4 conclusions (among others) led me to make the decision to bring property management in-house. Do you agree with my conclusions? Why have you OR why haven't you brought property management in-house? Mitch Renda, Kevin Renda, CPA, Andy Crawford, Jaideep Balekar, Daniel (DJ) Hume, Andrew Cushman, Jered Sturm, Coleman Nelson, Wes Kohler, Josh E. Appelman, Adam Curry, Steven Rice, CPM®, Matthew Henderson, CPM, Scott Davis, John M., Blake Zaring, Dan Gorman, Michael Arnovitz, David Shirkey, Paul Shannon, Phil Moeller, Viral Patel ☁, Tom Mayl threefoldrei.com

Good lessons for those pondering apartment buildings.

Multifamily property management is changing rapidly, with vacancy rates at a 10-year low and renters paying more attention to online reviews. Virtual tours are also becoming increasingly popular. Managers must juggle property upkeep, finances, tenant satisfaction, and legal compliance. Efficient management of these tasks relies heavily on technology and software. Property management software supports everyday tasks like rent collection and maintenance requests, saving time and increasing accuracy. It also improves communication through tenant portals, where they can easily communicate issues. Managers also benefit from tools that track financial health, occupancy rates, and expenses, making operations smoother and more effective. HelpDeskRealty (HDR) provides IT services tailored for multifamily property management. Their software support and training programs boost efficiency, enhance tenant relations, and ensure compliance with housing laws. With ongoing guidance as a strategic partnership, HDR helps property managers optimize their operations. https://buff.ly/3Ad7YRb #Blogs #ITSupport #RealEstate #PropertyManagement #MultifamilyHousing #Compliance #PropTech #OperationalEfficiency

The latest multifamily data shows that residents prefer communities that offer efficient property management and gravitate toward apartments that offer streamlined avenues for communication, payment, and lease renewals. This article provides key strategies to enhance your property management performance and improve tenant satisfaction. #propertyowners #propertymanagement #multifamily #broker #cre https://lnkd.in/etH8N4CP

Full read: https://lnkd.in/g4y6zwU7 — “In conclusion, property management is a multifaceted field that encompasses tenant acquisition and screening, lease management, maintenance and repairs, financial management, tenant relations, legal compliance, and tenant turnover. Its importance cannot be overstated, as it directly impacts property value, tenant satisfaction, legal compliance, and the overall profitability of real estate investments. For property owners, employing a competent property manager is often the key to success. Property management provides a buffer between property owners and the day-to-day challenges of real estate ownership, allowing investors to enjoy the financial benefits while leaving the operational aspects in capable hands. Whether you own a single residential property or a portfolio of commercial real estate, effective property management is a wise choice that can help you achieve your investment goals with peace of mind.” Source: #TheFirstHome — At Fulton Grace Realty they deliver exactly that! ℹ️ Get info: https://lnkd.in/g9jPwfKX 📹 Video: https://lnkd.in/g6d9sc8i ⭐️ Readily Available: We are on call for emergencies 24 hours a day, 7 days a week. We also respond to tenant and owner inquiries & maintenance requests in a timely manner. ⭐️ Collect & Distribute Monthly Rent: Our online rent payment system simplifies payment for tenants, resulting in more effective and timely collection of rent. We direct deposit the monthly rental income into our owners’ bank account, ensuring they receive funds efficiently. ⭐️ Minimize Vacancies & Maximize Investments: If tenant turnover is needed, we prepare a rental analysis, advising landlords on current rental market value before placing a property on the market. We also begin the process of locating replacement tenants well in advance, ensuring there is minimal to no downtime between tenants, which in turn maximizes the return on our owners’ investments. ⭐️ Expert Maintenance: Expert maintenance provided by our licensed, reliable and insured handymen. For more complex issues beyond the scope of our standard handyman labor, we have an extensive rolodex of trusted and reliable contractors. ⭐️ Move-in And Move-Out Inspections: We conduct thorough move-in and move-out inspections, assessing potential tenant damages and any turnover repairs or improvements needed. We are experienced in navigating quick turnovers and have a strong database of trusted vendors to aid in the process. ⭐️ Financial Statements: Our robust property management software enables us to provide our landlords with detailed monthly and year-end financial reports, ensuring our landlords are kept up to speed on their property’s financials. — #singlefamilyhome #apartment #leasing #renting #fultongrace #chicago #chicagoland #investmentproperties #firsttimehomebuyer #propertymanagement #landlords

Property Management vs. HOA Management":key differences While property management and HOA management share some similarities, there are key differences between the two. Here are the main distinctions: 1. Clientele: Property management typically involves managing properties on behalf of individual property owners, real estate investors, or property management companies. The clients are primarily focused on maximizing rental income or the value of their real estate investments. On the other hand, HOA management involves managing common areas, amenities, and enforcing rules within a community on behalf of all homeowners who are part of the association. 2. Scope of responsibility: Property managers are responsible for the day-to-day operations of individual properties, such as residential or commercial buildings, apartments, or retail spaces. Their duties may include tenant screening, rent collection, property maintenance, lease agreements, and financial management. HOA managers, on the other hand, focus on managing the shared common areas, enforcing community rules, coordinating community events, handling dues collection, and maintaining the overall aesthetic and quality of the community. 3. Governance structure: Property management operates under the authority and direction of property owners or investors. Property managers act as agents for the owner or investor and work to ensure the property's financial performance and maintenance. In contrast, HOA management involves working closely with an elected board of directors who are homeowners themselves. HOA managers assist the board in making decisions, implementing policies, and enforcing CC&Rs and bylaws. 4. Financial considerations: Property management focuses on generating rental income for property owners and achieving a positive return on investment. Property managers handle matters such as rent collection, financial reporting, budgeting, and coordinating repairs and maintenance. HOA management centers around collecting assessments from homeowners to fund community maintenance, repairs, and reserve funds. HOA managers often assist in budgeting, reserve planning, and ensuring the proper allocation of funds. 5. Legal and regulatory considerations: Both property management and HOA management involve legal and regulatory considerations, but they differ in context. Property managers must adhere to local, state, and federal laws related to landlord-tenant relationships, fair housing, and property maintenance. On the other hand, HOA managers must comply with specific regulations for homeowner associations, including CC&Rs, bylaws, board elections, and community-specific rules. While there may be overlap in certain aspects, understanding these key differences is essential for property managers and HOA managers to effectively fulfill their roles and responsibilities. Having a clear understanding of the specific requirements and dynamics of each helps ensure success in managing properties or communities.

Losing tenants means more than just lost rent – it is a waste of valuable time and resources. Your landlord isn’t making money anymore on their property, and you’ll have to market the property, screen applicants, and find a new resident. It’s so frustrating. Imagine if, instead of all this, your tenant had simply stayed, and paid rent each month? Replacing a tenant who has left early is an ugly mess, which is why top property managers have systems in place to retain tenants for the right amount of time. Read this article to gain a complete understanding on how to increase your tenant retention, so you have more time to spend on growing your business: https://lnkd.in/dpwrz3vw #propertymanagement #tenantretention

Effective Property Management in both residential and commercial sectors ensure that property retain value as an investment.

During challenging economic times, multifamily owners and operators often apply proactive property management strategies to address operational inefficiencies, boost cash flow, and preserve capital. We utilize our firm’s 65-year history to outline some ways in which property management teams can assist property owners in augmenting value in all economic climates, such as: - Establishing a tailored property management approach for each unique community is a key in this business. This requires understanding the owner, their goals for the asset, and their management style. It also means thoroughly comprehending the market where that owner’s apartment community is located, its residents, and how to best position the property for success. - Delivering efficiency while maintaining quality and service is a challenge well-worth tackling as property managers. With the rising cost of utilities, construction, labor, and insurance, reducing expenses is critical for today’s multifamily owners. At the same time, competition is fierce; therefore, landlords are depending on their property managers to help drive operational efficiencies without sacrificing the level of service provided to residents. - Addressing both near-term and long-term value in operations strategies is one of the best ways property management teams can help landlords optimize their multifamily communities. At Western National, we look at the amenities our competitors are implementing and consider which make sense to add immediately and which to plan for down the road. To learn more about Western National’s approach to distinguishing apartment communities from others in the market and adding lasting value, click here: Western National Property Management (wnpmapartments.com)

How Much Do Property Managers Charge In 2024? https://ift.tt/wuygeZP The price of a property manager is dependent on several factors. One of the most important factors is the famous real estate mantra—location, location, location. Just as there can be vast differences between real estate prices from one zip code to another, the same is true for management fees. Urban properties in bustling city centers may command higher management fees because of the complexity of managing properties in dense areas. On the other hand, properties in more remote locations might see lower management costs because of reduced demand and possibly fewer responsibilities. This geographical pricing strategy ensures that property management fees are a reflection of the local real estate market’s dynamics. The type of property being managed can also play a role in determining the management costs. Single-family homes are typically much easier to manage than multi-family homes. Dealing with multiple tenants in such properties requires careful coordination of lease agreements, rent collection and addressing the concerns of multiple tenants. This increase in workload demands higher management fees. Similarly, larger single-family properties with more square footage than average can require more time, which can also increase management fees. Finally, the price of a property manager will depend on their list of services. Some companies have a simple pricing structure for core services, such as rent collection, while other companies offer a whole list of services including lease renewals, meticulous property inspections, ongoing maintenance, tenant communications, evictions and other advanced services. The more services a company offers, the more it will likely charge. Finance via Forbes Advisor https://ift.tt/ZouXN2C August 1, 2024 at 09:00AM