Posts

There are plenty of multifamily investors who make such investments because they desire to run it as their own business and manage the day-to-day activities with full awareness of what it entails. Yet, there are also investors who get into the business without being fully aware and make the assumption that higher returns naturally come with self-management. After all, the fees associated with hiring a property manager must account for a significant chunk out of revenues, right?

While it’s definitely true that hiring a property management company is an added expense, it’s proven itself time and again to be the type of investment with significant returns. It often saves investors considerable amounts of money, in addition to helping secure ongoing income.

Just a few examples of the types of savings investors may enjoy with the help of a property management company include:

Reduce vacancy rates – One of the biggest challenges of managing a multifamily property for many owners is keeping maximum occupancy. And, as can be surmised, any unit sitting vacant is not earning income. Another way to look at this is just like money going out the door because mortgage and additional shared utilities still must be paid on that space.

Hiring a property management company can ease that burden. They not only have resources that can help in determining the best, long-term prospective tenants, but also potentially have access to better and more effective marketing tactics to turn units quickly once vacated; narrowing the timeframe in which financial loss occurs.

Economies of scale – It is defined in microeconomics as “the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.”

In other words, a property management company, which manages a number of properties in the same area, can leverage far better rates on necessary services than an individual owner of a single property could achieve. This includes lawn service, HVAC maintenance and repair, roofing services, marketing and advertising, and more.

Time is money – Of course, you can’t forget that your own time is money, and you lose it when time is spent inefficiently. The time you spend managing a single property may not be as effective or efficient as the same time spent by an experienced management company with a team of professionals.

Ready to realize savings through a partnership with a professional property management firm? Contact Class A Management today. Call 817-295-5959 or send an email to info@classamanagement.com.

Who do renters go to when they need advice on a place to live? Not too long ago, the answer was always the same: close friends and family. After all, you can picture the scenario easily wherein a prospective renter posts options on Facebook or Instagram and solicits feedback from connections.

It, however, would seem the tide has turned. People are no longer relying heavily on the opinions of friends and family; the responsibility now lies with complete strangers. If you think about it, the thought isn’t too farfetched. The clear popularity of property review sites should give an indication of just how much people are willing to seek out and put trust in the views of complete strangers.

The proof is found in a recent Kingsley Associates study, sponsored by RentPath. After surveying nearly 30,000 prospective renters, it was found that ratings and reviews on sites like ApartmentRatings.com are more important to the perspective renter than a referral received from friends and family.

In an interview with Multihousing News, Bonnie M. Spinks, social media marketing manager for Pegasus Residential says, “Today’s prospective renters are searching for an objective view of what it’s like to live at an apartment community and have found that ratings and reviews offer a perspective that they can’t get anywhere else. This isn’t bad for apartment companies. It’s an opportunity to not only better manage your reputation, but also to make the necessary changes on site to provide an outstanding living experience to residents, which translates into more new leases and renewals.”

Does this really matter in the long-run? It does when it comes to brand management. This information confirms the need for managers and owners to be even more concerned about what is being posted about their properties online.

Some simple steps? Here are 3:

1. Set up an alert through Google. You can input a variety of keywords, including the exact name of the property as well as variations. When someone uses the name to create a post of any kind online, Google will notify you.
2. Search regularly. Even if you have alerts on automation, you need to be aware of what’s on the web. Make a list of the common review sites, and then visit them at least on a monthly basis.
3. Be effective and efficient in how you respond (and, yes, you need to respond). For tips on how to keep bad reviews from getting worse (and encourage more positive posts), read more in this article.

If you’re feeling a bit overwhelmed and would like some assistance in navigating the task of brand management, the professionals at Class A Management are here for that and so much more. Give us a call today to learn how we can work together. Call 817-295-5959 or send us an email to info@classamanagement.com.

Are you under the impression your property will never be able to effectively compete with the high priced property across the street due to an inability to afford big ticket upgrades? If so, it might be time for a little insight into what tenants really want. While it may not earn you a Class A categorization, these small, but noticeable efforts will help you attract and keep the right kind of tenants.

1. We all know location is everything. And, having a property in the right neighborhood is a good way to help ensure tenant safety. However, regardless of location, there are some measures to take to promote safety on the premises that will improve its attractiveness to existing and prospective tenants.
   1. Lights – the property should always be well-lit, including doorways, hallways, parking lots, and grounds
   2. Gates – while costly, installing a gated system on the property helps deter unwanted guests and reduces the incidence of theft
   3. Security – offering tenants the option of a security system is a hot selling point for many; deep discounts can be achieved on installation for a bulk monitoring package, and this is a cost easily passed along to tenants
2. Discerning tenants will notice even a little bit of crud that gets left behind in a drawer somewhere, and cleanliness is a big issue to most. Keep the grounds and parking lots clean, the pool and any common areas clean as well, and invest in a really good maid service each time a unit is vacated.
3. While many owners may tend to feel the pace of their heartbeat increase on this one, it’s not as drastic as you may think. While any and every one would enjoy brand new stainless appliances and marble countertops, people understand what they can and can’t afford, and the great thing is that it’s not necessary to have these things in order to compete. All it takes is an investment in upgraded hardware (such as nickel-plated door handles instead of gold), undated fixtures (nickel-plated lights and faucets), a fresh coat of paint on every wall surface, and more modern window coverings (such as a faux wood 2” blind). If it’s in your budget, stripping out old carpet in first floor units and opting for painting concrete is a more affordable flooring option with a mass appeal.
4. When surveyed, tenants say having a Wi-Fi connection is more important to them than a swimming pool when it comes to amenities. Get good, reliable service and offer it as a standard amenity to all units (and advertise as such).

Need some more tips like these? We’ve got a bunch. Contact the professionals at Class A Management today at 817-295-5959. You can also reach us by email at info@classamanagement.com.

Five years ago, going green may have been a cost prohibitive thought for many multifamily property owners. After all, the push seemed to be all about Energy Star windows, energy efficient insulation, and eco-friendly HVAC—all major overhauls that cost a pretty penny. And, while, if you have the budget for such improvements, these efforts are definitely attractive, you don’t have to spend an arm and a leg to show tenants you care about the environment.

In fact, making small, easily affordable strides to improving the green-ness of your property will not go overlooked by eco-conscious tenants. All of these can even be used in marketing materials as selling points to prospects.

• One of the easiest and most affordable ways to go green is with lighting. According to EarthEasy, regular light bulbs (incandescent) burn up to 25% of the average home energy budget. Over a lifetime, a single bulb can cost 5 to 10 times the cost of the bulb itself just in energy usage. On the flip side, a Light Emitting Diode (LED) lasts about ten times as long as the traditional bulb and are far more efficient—using only 1/3 to 1/30 of incandescent or CFL. And, the price of these bulbs continues to lower annually.
• How efficient is the plumbing in your property? While having a professional out to inspect the lines and insure there are no major problems is something that should be done at least on an annual basis, take a simple look just at the fixtures within each unit can prevent long-term issues. Consider low flow faucets in kitchens and baths, as well as low flow shower heads. For budgets with a big more room, high efficiency toilets will also help to clear the bowls with more thrust, but less water, reducing the amount of usage and waste.
• Weather proofing. One of the easiest and cheapest methods to reducing energy usage is to ensure weather stripping is in place and healthy on all unit doors and windows. Leaks can drive up air usage in the summer and heat in the winter, and that’s a lose-lose for all involved. Not to mention, the risk of damage from other elements. So, it’s wise to always include a thorough inspection of the stripping in a unit in between tenants, while encouraging all tenants to report issues in the meantime.
• Provide tenants the ability to recycle. Even if it’s not possible to have a door-to-door service that collects the receptacles, your eco-friendly tenants will thank you for providing them a place where they can separate and discard their aluminum, paper, and plastic products.

These are just a few tips, but we have many more where these came from. Let Class A Management help ensure your property has what it takes to attract even the most discerning of eco-friendly tenants. Call us today at 817-295-5959. You can also reach us by email at info@classamanagement.com.

If you’re in business, you’ve likely heard more than once that it’s more expensive to lose an employee and face the need to find a new one than it is to actively focus on retention efforts. It makes sense. You have a significant outlay to advertise the position, recruit, go through the vetting process, relocate the right applicant, train him or her, and invest in both salary and benefits. If you lose that individual, you lose not only all of that investment, but the time and productivity losses associated with a vacancy, as well as another round of the same initial investments to fill the position yet again. For this reason, wise companies make significant investments in their ongoing retention efforts.

Multifamily apartment properties are no different. Think about it. To get a tenant in the door, you must advertise the vacancy, then you must vet and screen the applicants, which takes significant resources in including time, effort, and money. You then must have the unit move-in ready, which always requires at least a small investment. And the list goes on. Once that tenant is in place, if anything goes awry and he or she is no longer satisfied enough to stay the term of the lease or renew, you are now faced with all the related expenses of losing that tenant and replacing him or her, and according to research conducted by the National Apartment Association (NAA), those expenses can add up to a whopping $4,000 for each move-out.

The moral? As a property owner, tenant retention efforts should be a top priority. And even the simplest efforts go a long way. How can you get your tenants to stay? Here are just a few ideas:

• Have an open door policy to encourage feedback and free flow of information, including keeping all tenants up to date on anything they should know about the property and its management.
• Be responsive. When there is an issue, be attentive and quick to respond. Think of how you would like to be treated if you were the one making the request, and give it due diligence. Even if no real attention is needed, empathy is sometimes all people need or want.
• Keep an open mind. Remember that while the property is your business, it’s home to all your tenants. For this reason, it’s recommended you keep an open mind when it comes to special requests. Do your tenants want an outdoor chicken coop? Is there room for the volleyball pit that seems to be in high demand? Would a community garden really be such a bad idea? Granting wishes within reason in order to help tenants achieve a more ideal living situation will encourage them to stay.

At Class A Management, we understand the demands of tenant retention and have at- or near-occupancy at every property we manage. Let us help you. Contact us today at 817-295-5959 or send us an email to info@classamanagement.com.