By Linda Day Harrison, theBrokerList, Chicago, IL

You want to make a purchase, but what is driving that decision? Is it cost benefit analyses, the idea of getting more bang for the buck, impulse, or is it a high return on investment? And what does this all mean to us as property managers?

When you are a property manager, one of the biggest roles you play on behalf of your client or property is purchasing! You purchase utilities, light bulbs, labor, services, marketing media, copy paper (hopefully less each day!), equipment, tools, professional services, and capital improvements or repairs.

Each time a purchase is made it impacts your Net Operating Income (NOI). The NOI is the key ingredient to the value of the asset. Investors look to that number when valuing the asset, so it is very important to know that each purchase chips away at that number. But guess what? If the income goes up, the chip is worth it. So how do you measure each chip you make?

There are many ways to look at purchases. It shouldn’t be emotion, reaction, or impulse. It needs to be grounded with cold, hard, numerical fact. In other words, you need to know the bottom line of that purchase.

Some purchases are super simple to analyze, while others take a more complex analysis, and may even require experts to help you so you are measuring things properly. There are many ways to look at numbers and anybody can present those numbers to you in different ways. The most important thing to remember when performing the analysis is common sense and logic.

For instance, if you are purchasing marketing media, the #1 measurement is traffic! There is no other way to measure it except results. So if you place an ad or do a promotion, what is the result of that effort and expense? Notice I said effort. Effort = labor and labor = dollars. In other words, your time is money, and this is actually one of the largest and most critical pieces of the property expense pie.

If you are spending X number of hours doing a task and the result is a $0 return on the property, you must immediately stop doing that thing. It is that simple. If you ask your building engineers, administrators, or vendors to perform a task, ask yourself how that will bring a return to the property. Most things you do are valuable to the property, like preserving the structure or preventative maintenance. Those are no-brainers. However, there are things we do sometimes that we are not measuring accurately, like marketing efforts, or energy-efficient products and equipment. You might be surprised when you measure all of these components and determine how much money you may be able to put back into the income. I call that getting the “biggest bang for the buck”!

If the item saves labor or brings me tenants who lease at my property, that is quantifiable and clearly a bang! Just remember with each purchase to really think about your decision. Make sure there is value and evaluate the labor as well. Value is key because it is a test of quality and price, NOT just price. Do not fall into the rookie trap of just following low price. More property managers get in trouble buying for the lowest price than if they go with the middle price, for instance. Time and time again, they are not measuring. It just appears to be so low that they feel like heroes, when in fact they are being fooled. Now in some scenarios, this may not be the case, depending on the purchase. However, usually the low price is a low price for a reason. For instance, with a contractor it may mean they are not insured, they are non-union, or they do not provide all of the benefits and tools needed to perform the task properly. So now the hourly rate of $35 looks great compared to the guy charging $50, but it will take the $35 guy longer.

Always remember to ask for a budget or a not-to-exceed cap on purchases, if possible. The only time that a not-to-exceed cap is impossible to predict is if the scope of the project changes. In other words, if the scope is controlled by the service provider, they need to cap it. If the scope changes due to unforeseen circumstances, it is not always a fair compromise. Both parties need to face the risk. However, there are many service providers who have such a strong command of their business that they know alternatives that make them superior providers, and they can in fact give you a not-to-exceed. They also may be willing to do this to gain your loyalty for future purchase decisions.

Just remember to think things through. Do not buy in haste, as haste makes waste and every penny counts. Remember to always measure it! Even if it is not obvious, there is always a way to compare a purchasing decision.

By Linda Day Harrison, theBrokerList, Chicago, IL

Twitter is a fascinating tool. You can love it or hate it, but if you love it, there are a multitude of styles and personalities you can apply to this powerful online tool. While there are many different ways to use Twitter, I think up close and personal is the best style of all!

Rule #1 Get your name.

First of all, I strive to match my project name and my Twitter site in all ways possible. Examples include my own for theBrokerList and its companion Twitter site is @theBrokerList. Same name. In all cases, it helps tremendously to get your name, so get it now! Many folks are out there building a brand name for themselves or their company and have not yet reserved their Twitter URL. That is a big mistake in my opinion. Go get your name, even if you have no time to set it up!

Rule #2 Create your icon.

Now that you have your name, the image that you associate with that name will be your brand icon as well. Twitter comes with a generic egg-shaped image on all profiles. So many folks are just continuing with the egg and never take the initiative to brand their tweets with an image. That is wasteful because they are wasting all of that work in tweeting but they have not created a memorable picture that folks will immediately recognize. When I tweet, my eye catches images faster than words. If I see a colleague’s brand it draws me to it instantly, which saves time. The same holds true for your brand. If you send out five tweets or one tweet, your name is travelling through the Internet with that brand icon and you should remember pictures are worth a thousand words! There are unlimited ways to set up your icon. If you’re not a company, your picture is perfect. If you are a company, a snip of your logo or an acronym will do. It can be an image of almost anything, but remember, it is your brand! It is a good idea to add an element or create one that will remain your symbol, at least for now. Do not change the symbol frequently as that will cause confusion.

Rule #3 Fill in Profile Blanks.

Next thing that is absolutely necessary to add is a hyperlink to your online profile, your website, or anything about you! So many people leave their profiles blank, and that defeats the entire purpose! You want traffic to you or your brand and people want to check you out. Also, if you are really an online wizard, you can even add an extra hyperlink in the content of your profile description! That gives you two links folks can click on. Even more bang for the buck!

Rule #4 Use a Strong Password.

Due to the power of Twitter, it is frequently a target for hackers and spammers. The spammers love to take over Twitter accounts and spew garbage and bad hyperlinks out to your followers. For that reason it is vital that you use a STRONG password. A STRONG password is one you will not ever remember. It is so difficult that there is no sense even trying to remember it. My approach is to use an online password generator and generate a long and totally meaningless password that I would never remember. I store the password in a safe place for future use. If you do not want to generate a strong password like that, make it really long and mix up letters, numbers, symbols, and anything that you will remember, but would be hard for a spammer to crack. Even with using strong passwords, it is no guarantee, but if your account gets hacked or hijacked, just change the password immediately. Basically the password was cracked, but if you change it, the spamming will stop.

Rule #5 Know the Basic Tweetology.

As you probably know already, Twitter is a micro blog and permits micro posts, or Tweets, of 140 characters per message. With that in mind, much of the messaging lingo is abbreviated. For instance, RT = Retweet, and FF = FollowFriday. Check out sites like Webopedia and Social Media Today for a complete listing of Twitter lingo. A search for Twitter abbreviations will also yield many sites with similar lists.

Rule #6 #HashTagsAreGood.
A hash tag (#) is just a way to help organize or tag messages for grouping, alerting, or searching. For instance, if you are hosting an event you can name the event “#2012Event.” Now each time that hash tag combination is used that message will be searchable via “#2012Event,” etc. Hash tags exist in organizations, industries, geographies, and are unlimited. There are already so many hash tags, with new ones created every second, the sky’s the limit.

Rule #7 How to Use the Twitter URL.
Many folks have no clue what their Twitter URL is or how to present it. For instance, on signage you would use @MyURL, but in online use you need to use the full URL, http://www.twitter.com/myurl. The difference is that everyone knows when they see an “@” in front of the name, it is for a Twitter account. Twitter has really claimed that symbol.

Rule #8 Use Your Twitter URL.
Twitter is a micro blog and an easy way for folks to find you. So use it! Add it to your business cards, brochures, email, LinkedIn account, and any other sites you utilize. There are more property management websites and blogs missing out by not sharing their Twitter site URL or hyperlink. People have no way to know what your Twitter URL is or how to follow you if it’s not posted! The goal is to get people you know, customers, or potential customers to follow you. When they follow you, they are up on your blog posts, announcements, and messages. It is a tremendous customer service tool.

Rule #9 Twitter, aka Phone Ringing or Email.
It may sound a little odd, but when someone sends you a message on Twitter you must reply! It is becoming a more efficient messaging system than email. It forces you to be brief, and it can take people (via hyperlinks) where you want them to go. Also, it’s FREE! It is very easy to use on your mobile device. As a property manager or leasing agent, you should definitely offer Twitter as an option to your customers so they have that ability to communicate with you quickly and at any time!

Rule #10 Twitter is a Business Tool.

So many people have made Twitter out to be a ridiculous and silly tool. You hear the stories of folks like Justin Bieber and other celebs using it for silliness, but in reality, it is a massive PR tool for them. Not only do they have crazed fans following them, but they can promote what they do. You are no different! You are not Justin Bieber, but you are marketing properties, your company, and your services. With that in mind, you need to take it seriously and use it wisely. Do not mix a business or professional Twitter site with personal use or activity. Keep business and personal separate. Be nice, polite, and professional. Use Twitter to post messages, make announcements, and network. It is also the most efficient way to cold call, or perform a community outreach to find customers. If you spend time searching Twitter, you can find many businesses in your community that use it. Reach out to them to share your promotional news about space or units available. Isn’t that the name of the game? It should be, and Twitter can do that for you if you follow these rules.

There is so much more to Twitter, including tools to use with it and what messages you should send. Look for future blog posts about this incredible online marketing tool that every property manager and leasing agent should be familiar with.

By Linda Day Harrison, theBrokerList, Chicago, IL

What is a website? Okay, so you’re thinking, “I know what a website is, so please don’t bore me with something I already know.” Great! But, for most folks, there needs to be a breakdown of parts so it’s clear. As property managers and building owners, we are accustomed to wanting to understand all of the details, as details are vital to our learning.

For instance, if we have a boiler failure or a roof issue, we ask the contractor to draw us a picture or explain exactly what the problem is. It’s the same with a website. There are many moving parts.

As we mentioned in a previous blog post, Property Management and Your Online Presence, you start with a name. This step is vital, and is termed as Registering a Domain Name.

So if your company name is ABCTower, it would be a good idea to register a domain name that is as similar as possible, such as ABCTower.com, ABCTower.net, or whatever variation makes sense so folks can find you and remember the name. To register a domain name, you can visit official services such as GoDaddy.com. It’s always a good idea to register your name at a separate site such as GoDaddy.com – it’s a safety net to any issues that may come up later with your site. The fee you pay to maintain the name can be paid annually or in multiple years, say three, five, 10, etc. It’s a decision you need to make based on your future longevity for using the name, and also the funds you have available. This is generally a small-ticket item, in the range of $6 to $12 per year, but it is subject to specials, sales, and terms.

The next step is to find a web hosting company. A web hosting company is not necessarily the same as the registration service. It’s my personal habit to have my domain name registered at GoDaddy, but hosted at another site. The host is the physical place where the website and related files are stored or hosted. For example, Bluehost.com is a web hosting service, and there is a monthly fee to pay each month to use their servers. Identifying a company like Bluehost.com is selecting your Web Hosting Service.

Okay, so now you have a name, a place where your files will live, and the servers where your visitors will actually go to view your website. Remember, you do not maintain the files and the actual website on your own computer. All of the content actually lives on these hosted servers or computers, which is why you might hear them referred to as a web host.

The third step is to decide how you want to build the website itself. Basically, the website is simply a series of files inside folders, just like files and folders on your computer. Creating a website is no different from navigating through and using files. You need software. The software is often times referred to as a Content Management System (CMS). Why CMS? Because we want our websites to be many things – communication outlet, blog, directory, online brochure, photo gallery, social media hub, online form, etc. If you had to build all of those tools from scratch, it would be cost prohibitive. Why do that when you can use a standard program that is used all over the world? Now when you hear the term WordPress, you will understand! It is a framework for a Content Management System, or Blog Platform.

WordPress is an industry standard and is so user-friendly that it makes sense to consider it for your website. It has evolved from being just a blogging platform! Some of the biggest companies in the world use WordPress as their entire website.

So now you have a name, a web host, and software. After you select a web host, you must check to make sure that it will play nice with the software you have selected! The term for making sure that any product works with any web host you use is called Supported.

If you have selected WordPress as your CMS, it is fairly easy to set up. But “easy” is a relative term. If you have no Internet, HTML, or online experience, it may be a bit harder. The beautiful thing about WordPress is that almost anybody who uses the Internet on a regular basis can navigate it and teach themselves. That means your employees or administrators can easily learn how to populate your WordPress site with new blogs and content each day.

My personal recommendation? Have your WordPress site set up by a professional! That’s the number one piece of advice I can give you. The number two piece of advice is to have a component called a plug-in added so that your site is backed up daily. Any function you can conceive that gets snapped on or plugged into your WordPress site is a Plug-in. So if you want to add a photo album, link directory, backup service, or any other feature to the WordPress site, it is called a Plug-in.

So once you have your functions identified such as blog post feature, photo album, link directory, backup service, and so forth, you need to have a design. When crafting your WordPress site, there are unlimited designs and templates out there called themes. If you want to create a certain look for your site, you can obtain pre-made themes for free or at nominal cost. You can also pay to have a customized theme made.

The important point here is not that all of this is totally free. You still need the labor to execute this, but a good portion of the work (mainly with the automation of plug-ins) is open-source and that is FREE. The web designer or marketing expert you hire needs to be paid for their labor, design work, and customization. The beautiful part of using WordPress is that it’s easy to hire or find folks who know how to use it because WordPress is one of the more popular industry standard platforms. The message here is to stick with a standard – it will save time and money in the long run, especially when training new employees. Once your WordPress site is up and running, the on-site staff should be able to maintain it and keep your content fresh.

Maintenance and fresh content will be a future blog, so stay tuned!

A guest post by Gabriel Knight, Mortgage Fit, Chicago, IL

It’s no secret that the still-sputtering economy has made it a rough go for property managers. After all, one of their primary responsibilities is making sure that rental properties are rented, and with still so many unemployed and underemployed folks out there, renting has become a real problem – the pool of eligible renters is shrinking.

But while things are tough for the property managers out there, it pales in comparison to the hardships that potential renters are facing. Keep in mind that many prospective tenants were homeowners before the recession came along and forced them into short sales, default, and foreclosure. These people have little rental experience or history, if any, so property managers have to question whether or not they’ll be able to pay their rent. Ironic, given that these people once managed to pay a mortgage every month.

Many of these potential renters are dealing with bad credit because of tough decisions they were forced to make regarding their homes. Often they are considered higher risks, so they face tougher standards, higher deposits, or rejected applications.

While there isn’t much property managers can do beyond waiting for the economy to stabilize, there are things potential tenants can do to better their chances of approval. For one, having pay stubs from a current job can show that your employment is ongoing and steady. And a reference from a former landlord, if you have one, helps as well. You can also run a free credit check on yourself through various online services so that you have an idea of what the landlord is going to see when they pull your report, and you can explain any extenuating circumstances that drove your FICO score down.

Of course, the best policy is to have first and last month’s rent and a security deposit ready for the property manager. That probably goes without saying, but ultimately that’s what the property manager is going to look for if they give you a shot. Potential tenants can also check with their local government’s Housing and Urban Development (HUD) department for expert advice.

Renting these days is hard, but not impossible. Preparation is key!