Name: Class A Management
Address: 8701 W Bedford Euless Rd, Hurst,, TX, 76053, United States
Telephone: 817-295-5959

Aug 26 No Comments

Property Management Benefits: 10 Signs It’s Time to Hire the Pros

Author: cl@ss

Categories: Blog,Property Management Tips,Property Marketing,Real Estate Investment,Services

Property management benefits blog post image of a confident woman, smiling while sitting at a computer.

Updated September 2023

Wondering whether it’s time to investigate professional property management benefits? Here are 10 signs that you might need to hire a property management company and make your life a whole lot easier.

10 Situations in Which Property Management Benefits Property Owners

1. Limited Time and Personal Commitments

Do you find yourself juggling multiple responsibilities, personal commitments, and a full-time job? Managing an entire property on top of everything else can be overwhelming. By hiring a property management company, you’ll save time and have the peace of mind that comes with knowing your property is being expertly handled by professionals.

2. Tenant Screening and Placement Headaches

Finding quality tenants is critical for the success of your rental property. A property manager will handle the entire tenant screening process, including credit checks, background checks, and verifying employment and rental history. This will minimize the chances of problematic tenants, lease violations, and rental income disruptions.

3. Rent Collection Hassles

Are you tired of having uncomfortable conversations with your tenants about rent collection? A property management company will handle all rent-related matters, ensuring consistent and timely collection. They’ll also enforce late payment charges and handle any necessary legal actions in case of non-payment.

4. Maintenance and Repair Issues

Responding to maintenance requests and arranging repairs can be a major headache. A property manager will handle maintenance issues promptly, utilizing a network of reliable contractors and vendors. Your property will be regularly inspected, ensuring necessary repairs are identified and handled before they become major problems.

5. Compliance with Tenant Laws

Navigating the complex legal issues that come with owning a rental property can be unnerving. Property management companies are well-versed in local laws and regulations, and will ensure your property is compliant with landlord-tenant laws, fair housing regulations, and any other legal requirements.

6. Marketing and Advertising

Struggling to attract quality tenants? Property managers are experts in marketing and utilize a variety of channels to advertise your property, including online listings, local publications, and social media. They’ll ensure your property stands out, minimizing vacancy periods and maximizing your rental income potential.

7. Handling Evictions

Evictions can be stressful, time-consuming, and emotionally draining. Property managers will handle the entire eviction process, adhering to legal protocols, and ensuring timely removal of non-compliant tenants. They’ll minimize your involvement, saving you considerable stress and frustration.

8. Financial Management

Keeping track of rental income, expenses, and financial statements can be overwhelming. A property management company will maintain accurate financial records, providing you with regular reports that detail income, expenses, and cash flow. This ensures transparency and simplifies tax preparation.

9. Market and Rental Rate Changes

Setting the right rental rates can be tricky. Property managers conduct market research and analysis to determine the optimal rental rates for your property. This helps maximize your profitability without pricing your property out of the market.

10. Peace of Mind

Last but not least, hiring a property management company provides you with peace of mind. Knowing that experienced professionals are handling all aspects of your property—from marketing and leasing to maintenance and tenant management—allows you to focus on your other priorities—personal or professional.

Reap the Benefits of a Great Property Management Team

If you decide it’s time to hire a professional property management team to help you in the day-to-day and operations management of your multifamily property, our team is ready to help. Contact Class A Management today to learn more about the benefits you’ll tap into by partnering with our team. Call 817-295-5959 or email info@classamgmt.com.

Jul 01 No Comments

20 Must-Ask Questions When Vetting a Property Management Company

Author: cl@ss

Categories: Blog,Property Management Tips,Real Estate Investment

How to Choose the Best Property Management Company blog graphic.

If hiring a property management company is on your list of action items, you need assurance that the company’s management team delivers what your tenants, your property, and your investment portfolio needs.

Property Management Company Vetting: A 20-Question Checklist

Aligning on these key needs begins with asking the right questions during the vetting process. Here are a few questions we’d like prospective clients to ask, as well as a few you might not have thought of.

Do you have a list of references? This should be offered before you ask, but at the very least, you need a list of 5-10 property owners you can call directly to ask about their experience with the company you’re considering.
How many units are you actively managing? Understand this answer in context; a small, local company with hundreds of units under management may be stretched thin, while a larger company managing thousands of units could have tried-and-true systems in place to make sure there are no gaps in management.
What does your property manager hiring process look like? A property management company that hires exceptionally well and has low turnover has the ability to manage relationships on many levels, and processes that work.
What services do you offer? Not every company offers what you need, so understand their limitations from the beginning. Feasibility studies, for example, can be an added bonus if you’re actively building your investment portfolio.
What is your pricing structure, and what other fees can I expect to pay? Unexpected fees can hurt your profit margin, and you’ll need to know what percentage of rent a property management company charges and what extra fees to expect when comparing prospective management companies.
How do you handle maintenance? Is there a markup? A great property management company will hire and manage maintenance staff in-house, and has access to third-party repair companies they trust in the event they’re needed. Know in advance what you’ll be paying for maintenance services.
What maintenance reserve do you require? You’ll need to know how much capital to set aside for reinvestment into your property for regular and unexpected maintenance jobs.
What does your onboarding process look like for new properties? It’s important to know what to expect and who will walk you through getting set up as a new property owner under contract with a property management company.
What is your average vacancy rate? This is something a great company will know by heart, and be proud to share. Check average vacancy rates in your area to establish a benchmark for comparison. As of August 2, 2023, the national vacancy rate reported by the U.S. Census Bureau was 6.3 percent. That number varies by geographical region.
Do you have a standard lease agreement? If so, ask to see it. Ask if you have any input in creating a custom lease agreement for your property.
How would you describe your relationship with tenants? Double check this answer against the property management company’s online reviews.
How do you attract quality tenants? Ask about marketing tactics, screening tools, and tenant selection standards.
What is your eviction rate? Renewal rate? A low eviction rate is great and speaks to a quality tenant recruitment process. A high renewal rate means quality tenants stay a long time, which is ideal for any rental property.
Do you offer a tenant portal? A company that makes it easy for tenants to pay rent will likely collect more rent in a timely fashion. If tenants can submit questions or service requests via the portal, that means better reporting for you and higher renter satisfaction.
How do tenants contact you? Multiple points of contact means fewer tenants feel disconnected from their management office. That’s a win.
How would you describe your response time to tenant or owner questions? Typically, one to two business days is acceptable. Taking weeks to respond is not.
What’s an example of a property issue that you handled well? Listen for attitude, adaptability, and innovative thoughts. Pay close attention to procedures that work well for any situation.
What type of reporting should I expect, and when? This needs to be clear from the beginning. You need regular updates on your property’s performance, vacancy rates, rents collected, and progress on any large maintenance projects.
How do you handle vacancies? Are there fees for vacant units? Some property management company policies state that fees are collected on vacant units. If that’s the case, the answer to the first question and question number 9 will be critical in your decision-making process.
What is your community management philosophy? Here’s where you can get an idea about a company’s approach to community building: events, engagement, and tenant loyalty are key factors in building a successful and happy multifamily community.

We Help You Ask the Right Questions

At Class A Management, we’ve been managing single-family and multifamily homes for our clients successfully for more than 40 years. We think our services and track record are pretty impressive, and we like sharing stories about our communities and developing customized strategies for yours. Reach out anytime to ask about property management company vetting questions, or to set up a time to ask us all these questions and more. We offer the service and experience you need to grow your investment portfolio and value.

Sep 06 No Comments

How Property Management Companies Deal With Hoarders [Infographic]

Author: cl@ss

Categories: Blog,Property Management Tips

Image of hoarding situation featuring clothing, boxes, and trash many property management companies must face.

Property management companies have to be prepared to manage a great variety of people, personalities, and the challenges that can accompany them. That includes tenants who keep everything – including trash and food – in hoarding piles throughout their rental property.

What is Hoarding?

The idea of hoarding may be fascinating. It’s certainly garnered the attention of a national audience enough to create a few popular television shows. But, what many don’t realize is that hoarding is a real disability with far-reaching implications. See the Appfolio infographic below to learn more about this disorder.

Infographic explaining hoarding and how it may affect property management companies that have to deal with damage from tenants who hoard. — Source: AppFolio.com

Believe it or not, hoarding is a disability protected under the Fair Housing Act. It cannot be used as a qualification criteria.

What this means for property owners and property management companies is you need to understand people who hoard, and what steps to take when addressing a problem situation before it gets too far out of hand.

Property Management Companies’ Hoarding Nightmares

You can control and protect yourself and the property against the potential issues posed by people with bad credit, criminal records, and prior eviction lawsuits. What you can’t control are the unknowns that come with every other tenant.

Take Ms. Brown in 2A, for example (names and apartment numbers have been changed, don’t worry). She moved in two years ago and seemed to be the model tenant. She was always on time with her rent, quiet and respectful, and kept to herself. But, several months ago, she stopped coming out except on the rare occasion to take out the trash. Even then, other tenants noted odd behavior, and commented on the length of time it took her to discard the bag. Sometimes she even decided not to do so and returned with it to her unit instead.

It was when her neighbor in 1A started complaining of a smell wafting through the vents that it became necessary to take action. The owner, friends, and family were utterly shocked to discover the conditions in which Ms. Brown had been living, at least for several months, if not more.

What Hoarding Looks Like in an Apartment

Mrs. Brown had stacks of items grouped in every room in her apartment. She used every available surface to stack and store a wide variety of items—from old newspapers, bills, and magazines, to boxes and boxes of toiletries and paper goods.

Even the bags of trash were sitting by the door. She said she was going to go through them to see what she could salvage.

What Rights do Property Owners and Property Management Companies Have When it Comes to Hoarders?

According to the Anxiety and Depression Association of America, “Hoarding is the persistent difficulty discarding or parting with possessions, regardless of their actual value. Commonly hoarded items may be newspapers, magazines, paper and plastic bags, cardboard boxes, photographs, household supplies, food, and clothing.”

While it may seem like a harmless condition, the potential threats to a rental, and especially to multifamily properties, include:

Damage to floors where items are stacked
Interior decay from collection of trash and other items
Fire hazards from collection of paper goods and flammables
Obstruction hazards that make access difficult in case of emergency

And these really just scrape the surface.

Relationships Can Help Identify Issues

Know your tenants, and talk to them regularly. Property management companies focus a lot of time on developing relationships between tenants and management, for many reasons. Mrs. Brown’s neighbors noticed a problem, and management was able to get some help and address property issues before her hoarding got too far out of hand. Does your property manager have that kind of relationship with tenants?

Contact Class A Management for more information about the importance we place on community development and creating connections with the tenants and families we serve.

Mar 31 No Comments

Investing in Rental Property: The Price of Ignoring Multifamily Property Repairs

Author: cl@ss

Categories: Blog,Preventive Maintenance Tips,Property Management Tips

Image of water damage to drywall that can lead to big problems when investing in rental property.

Investing in rental property isn’t a one-and-done proposition. Ignoring rental property repairs and maintenance can lead to bigger, more expensive repair problems down the road.

What are the penalties from ignoring those seemingly small-ish repairs around the multifamily property? What about the not-so-small ones that have grown over time because you thought they could stand to be put off just a bit longer? You may be surprised at just how big the price tag can become.

10 Tasks to Protect Your Portfolio When Investing in Rental Property

Here are 10 common small-ticket tasks that can turn into major repair issues if ignored when investing in rental property:

Smoke detector testing and replacement. Apartment fires can be dangerous and devastating, but working smoke detectors can limit risk to residents and property. Schedule monthly smoke detector inspections to test, replace batteries with every time change, and replace detectors every 10 years. A small investment like this can save you and your residents lots of heartache and loss with just one early detection.
Water leak repairs. One leaky faucet might not seem like a big deal, but water is the enemy of any man-made structure. Water leaks can cause thousands of dollars in damage in short order, so encourage tenants to report any leaks quickly, and make repairs a maintenance priority. Watch water meters for unusual spikes in usage, and consider that a sign you’ve got a leak to find.
Water heater maintenance. Traditional water heaters last about 10 years, but their lifespan can be cut short by hard water deposits and improper temperature settings. Schedule an annual water heater maintenance flush to prolong the life of heating elements and delay water heater replacement that can easily run $1,000-3,000.
Regular HVAC system checks. Reduce service calls and maximize the life of HVAC systems by providing routine inspections and cleaning for your rental properties. Your residents will be comfortable year-round, and your bottom line will thank you. Remind residents to change air handler filters every 30 days.
Pipe freeze protection. Enlist residents to help maintain inside temperatures above 55 degrees when there’s a freeze warning, and make sure external spigots and exposed pipes are wrapped to prevent catastrophic freeze damage.
Garbage disposal usage tips. Provide residents with tips on what can go into a garbage disposal, and what can’t. Encourage them to call as soon as there’s trouble, to avoid major water damage from a backed up disposal that prevents a dishwasher from draining.
Toilet tips and quick maintenance. A running toilet tank due to an improper flange seal can send water bills skyrocketing. In addition, tenants and unsupervised children tend to flush things that can damage your sewage and septic systems, so offer tips to renters to keep their toilets functioning properly. Address any running tanks or leaks with the same urgency you would a leaky pipe.
Electrical problem prevention. Local building codes usually require ground-fault circuit interruptor (GFCI) outlets within a certain proximity to water, so make sure when investing in rental property that your electrical systems are protected. Go the extra mile by providing light bulbs for tenants, to control energy usage and wattage and avoid overheated bulbs.
Pest management. Sign up for regular pest control treatments to avoid costly infestations. Enforce strict trash management policies, and hire a pest management service to maintain rodent bait stations near dumpsters and other areas where rodents travel. Insect and rodent damage can quickly make investing in rental property a high-dollar venture, so prevention is key.
Drywall repairs and replacement. Add a thorough drywall damage inspection to your make-ready checklist to ensure that walls are in good repair. While small holes can be patched, sometimes it’s better to replace sections of drywall, especially in wet areas where a leak or other water damage has compromised the integrity of your wall structure.

An Ounce of Prevention Goes a Long Way

When investing in rental property, preventive maintenance tasks can seem tedious, but can pay dividends. Deferred maintenance and shortcuts can lead to bigger problems later, including damage to your property’s reputation and resale value.

Want to reduce the likelihood of unexpected financial surprises like these? Get the responsive and attentive care your tenants and property deserve from the professionals at Class A Management.

Feb 08 No Comments

Rental Deposits: What’s the Right Amount?

Author: cl@ss

Categories: Blog,Property Management Tips

Apartment Rental Deposits Amount: blog post image

If you’re new to multifamily property ownership, or even if you’re new to residential renting in general, it’s likely one of the decisions you’re grappling with is the correct amount to charge for a deposit. But let’s get one thing straight right off the bat: charging a deposit is a must. It’s a non-negotiable under any circumstance. It’s your protection in the event of default or damage, and it establishes the relationship between tenant and owner.

Now, the key is making sure the amount you decide to charge fits your needs and doesn’t drive away prospective tenants. Here are six tips to help you find that balance.

Six tips for setting and reviewing rental deposits

Know your state’s limits. Some states do have a set ceiling on the amount owners are allowed to charge for deposits. It’s important to know whether your state is one of them and the exact limitation.
Know your tenants. What are your tenants going to be comfortable paying? If it’s a higher priced rental in a nice neighborhood in a wealthier part of town, you know tenants are going to expect to pay for what they get. So, it’s important to understand the type of tenant the property will appeal to.
Know the competition. Do your research. Get on any number of the apartment listing sites online and dig a bit into the properties located around you. It’s important to compare apples to apples, targeting competing properties in your same neighborhood, around the same age, and with similar offerings and amenities. What do they have listed as deposit requirements?
Know the property. It’s likely you think very highly of your property; but you need to be realistic when it comes to how others will see it and what they’ll want to pay. What is the property’s age? What will it cost to repair or replace items or aesthetics within a unit? Having a realistic number in your head of what it will cost to address real damage (not just normal wear and tear) will help put this in perspective.
Know the risks. Are you going to allow higher risk tenants? These are people with less than stellar payment histories, criminal backgrounds, and the like. If so, a considerable allowance for protection is a must.
How will renter incentives impact your deposit? Some properties offer incentives to improve marketing effectiveness and increase occupancy rates. How you structure your incentives may impact the amount you’ll require for a deposit.

Having answers to these questions is a great start that will give you a much more accurate idea of what you’re dealing with and what you might need in order to protect yourself and the property. Many owners and managers ask for a deposit equal to a month’s rent. That way, if he/she skips town on the lease, that last 30 days is covered. Taking it a step further, some charge first month’s rent, last month’s rent plus a deposit equal to a month’s rent. And then even still, it’s not unheard of for deposits to be up to three times the cost of a month’s rent. But this, of course, is for high risk tenants and/or costly properties.

Make deposit language clear, fair, and consistent

Whatever you decide, make it consistent. Charge the same to everyone who requests a lease and don’t show favoritism. The key is to make sure you’re covered. Then, you want to make sure to put it in writing, every single time. Clarify all the stipulations, detailing out whether the deposit will be refunded or partially refunded, under what terms, and in what time frame. Leave nothing to guessing. And, remember that if you are going to allow pets, it should be treated as a separate and additional deposit.

Need some help walking through the steps and determining the best deposit amount for your property? Let our property management experts help. Call us today at 817-295-5959 or send us an email to info@classamgmt.com.

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Property Management Tips

Property Management Benefits: 10 Signs It’s Time to Hire the Pros