By Carla Toebe, New Century Realty, Kennewick, WA

One of your responsibilities as a property manager is to maintain a safe, secure, crime-free property. Unfortunately, there are a number of scenarios within property management that a criminal – or even just an opportunist – could exploit. The list below outlines some situations to avoid and some precautions to employ.

Never accept cash. Never, under any circumstances, accept cash as payment of rent. By never accepting cash, you will prevent possible thefts by employees or outside people who have marked you as a target, and you will also attract fewer criminals who want to deal only in cash so they can launder money or keep their money trail off the records to avoid being tracked.

Screen your applicants. Application screening is another very effective way of recognizing criminals, or people living beyond their means. Naturally a criminal record is a red flag and is generally considered a reason for denial. Another red flag is having a number of items in collections that are not being dealt with. This could mean the individual is living beyond their means. You have to consider the possibility that their wages might be garnished to take care of these bills. Would they be able to still pay the rent? Where is the rent money coming from in that case?

Be aware when showing units. Showing a rental unit could also be potentially dangerous if you do not take appropriate precautions. When you are showing a place privately to a stranger, you are giving them a perfect opportunity to commit a crime against you. It is always a good idea before you meet them to get their information and do all the pre-screening you can. If you feel they may be an OK fit but are still uneasy about them, be sure to show the unit during daylight hours. One very good tactic is to set appointments for multiple prospects at the same time. If you must meet the person alone, require an ID prior to entering and leave their license info with someone who can follow up with police in the event you don’t return with the “all OK” message.

Change the locks. Always make sure you change the locks between tenants. There should be adequate key control in place as well. Keys marked with the unit number and street number can lead someone right to the tenant’s door in the event that key becomes lost, is not returned, or is left lying around by someone using it. Keys should only have limited information on the tags or a cross reference sheet identifying what the codes on the tags mean. Always keep proof that the locks have been changed; it protects you from liability in the event of a break-in. If a tenant loses a key, they should be charged a replacement cost to re-key the locks.

Keep sensitive information secure. You’re holding personal information about each of your tenants. All of this information needs to remain in locked cabinets when not in use and not given out to anyone without the tenant’s written authorization, unless it is requested by law enforcement. If it is requested by law enforcement, you will need to cooperate, but make sure you are dealing with an official of the local police or FBI before giving out personal information.

Keep renters informed. If a crime does occur in one of the units you are managing and you have other tenants in the same vicinity, they should be notified of the crime so that they are aware and can protect themselves. Most crimes committed against people in rentals are crimes of opportunity, and renters can do simple things to make sure they do not become victims.

Think twice about signs. If your rental is in a higher crime neighborhood and prone to vandalism, you may want to do some creative advertising that your unit is available. You do not want to leave a sign on the street indicating you have a unit ready to move into. If you must put a sign out there, you can request that the current tenants not be disturbed so that any onlookers will think it is occupied.

Engage the community. Finally, there are neighborhood watches that you and tenants can become involved in, and many cities have crime prevention seminars that you can attend to learn more tricks of the trade in order to help keep you and all your tenants safe.

By Linda Day Harrison, theBrokerList, Chicago, IL

I think we can all agree that whether you’re a seasoned property manager or building owner, or if you’re a rookie to managing property, that there are not enough reminders about Mother Nature changing course, come winter each year!

Weather can be a property manager’s best friend or worst enemy. The key is to be sure you are prepared! Even if you have the best staff and the finest building engineer, double checking the basics while the weather is mild is much more pleasant than learning that something was overlooked after it breaks or bursts in the middle of January, especially when it could have been prevented with a $5 piece of weather-stripping or a $2 valve.

Winter can really cause a lot of trouble for the bricks and mortar of a building, in addition to the windows and pipes. Going over all of the most vulnerable areas early will save you so much grief later on down the road. For instance, walk the lower levels and check the basements or whatever areas are least visited at your property, in addition to all spaces that are vacant.

It is vital that even the smallest pinhole be closed up tight. In a biting subzero winter, a blowing cold snap can pierce through that small hole and act as a razor through any pipe. That type of damage can be menacing and I would not wish it on anyone.

I have learned over the years that you MUST check and double check to prevent a winter disaster. As a force of habit I circulate the below checklist as a tickler to all of my staff in early Fall. It is a simple, yet gentle reminder that we need to make sure we have thought of the obvious before winter sets in. Every year you should pull out your checklist and send it to your team. This will help them to make sure they are covering their bases. Of course in the large properties, these checklists can become quite comprehensive, but regardless of size, these basic reminders are worth their weight in gold.

Winter Risk Management Checklist

1. Winterization of outside hoses, spigots, etc.
2. Boilers and heating equipment has been inspected and tested for proper operation.
3. Roof inspected and gutters and downspouts have been cleaned and inspected.
4. Vents and other openings are closed and sealed tight for cold air infiltration.
5. Final fall plantings (bulbs, sod, etc.) completed and clean up.
6. Customer heating systems checked and inspected (individual)
7. Walk off mats inspected and located for installation on hard surface floor areas.
8. Snow supplies purchased such as shovels, ice melt, etc. for first snow fall or ice storm.
9. Snow blowers inspected, checked, and made ready for first snow fall (remember November/December you can have an early snow!).
10. Snow removal vendor identified and contract in place. Please identify the name of the vendor hired for the 2012/2013 season and update all emergency calling lists.
11. Insure heat tape, if applicable, is working properly.
12. Be sure time clocks and other equipment is functioning properly for lighting and security systems (remember it is darker earlier so exterior lights and parking lot lights need to be on earlier).
13. Inspect all vacant units and spaces to insure heat is operational and windows are sealed tight.
14. Inspect all basements and lower levels to insure openings are closed and weather tight.

Download The Checklist

Here are some other sources for more comprehensive winterization steps. You may also find some ideas to include in your resident or tenant newsletters:

http://www.sdao.com/ref/RiskMgmt/winter_weather.pdf

http://www.energystar.gov/ia/business/Winter_Checklist.pdf

http://www.tcrecc.com/docs/3bepreparedWINTER_Checklist.pdf

http://www.buildings.com/tabid/3334/ArticleID/13154/Default.aspx

http://homerepair.about.com/od/exteriorhomerepair/ss/winterize.htm

Have a safe winter!

By Linda Day Harrison, theBrokerList, Chicago, IL

It is a tough time of the year for us property managers as many of us are in the process of planning our budget for next year. However, it’s also a perfect time to poll all of your property owners, vendors, customers, and staff to see what might be on their wish list!

What is a wish list you ask? Well a wish list is a reminder of all of the things your customers, staff, vendors, or property owners have wished for that can help your property to improve, save money, or maybe even provide a new service idea!

Simply create a friendly form and title it 2013 ABC Property Budget Wish List. Leave a blank page of lines and explain that you are interested in feedback for ideas to make your property better, greener, or more efficient. Ask them to share their wish list items and suggestions because you may be able to incorporate some of the ideas into the budget for 2013, or into your long range planning for 2014, 2015, 2016! There is no time like the present to start looking out beyond next year’s budget!

Everybody understands budgeting and cost containment. People know that you cannot purchase everything all at one time. But, if you offer everyone on the property team a chance to contribute to the future you are not only giving everyone a chance to be heard, you are also holding them accountable to planning and strategizing for their department or focus area! It is amazing what ideas you can glean from such a request. The wish list for your customers may take the form of a Facebook poll, website newsletter post, or online form. For your staff, you may send an online email form as well! Give everyone a short window of time to respond, say a few days or so, and see what feedback you get.

Once you get all of the results you can look at the list and address some of the suggestions and/or share the suggestions that may be incorporated or not incorporated and why. Also, if you plan for the long term budgets, at least everyone will understand your program and your plan of attack for the future! It will also demonstrate how well you have picked up on the property needs over the last year. You’ll find out that you either have a good grasp on the needs of the property, or a little surprised to learn that you’re a bit out of touch with what other people observe as property needs.

In addition to the budget wish lists, an annual Vendor budget letter, which is a more formal request, should be distributed to all contract service vendors, suppliers, utility providers, and professional services, such as accountants, auditors, attorneys, architects, etc. Every property is different so it may not apply for all property types, but it gives everyone a part in the budget, and it also shows them that you are interested in what they think or their suggestions. When polling the vendors and suppliers you are looking for feedback and recommendations as well as the future projections for price increases next year. This letter provides a written response that can be part of your budget presentation. Even your local city water and sewer provider should receive a request for increase information. No one should be left out as it truly saves time and provides a great documentation trail for your budget. It will also explain why you are proposing various increases.

As far as the contract service providers, the request for next year’s contract is another aspect. Each year you prepare your budget you are also evaluating the contract services as well. Why not incorporate that into the request, and ask for the contract too.

Here is an example of a Vendor Budget Letter.

Even if you are not able to distribute and use these ideas for the 2013 budget process, you now have a year to prepare for the following year. Happy budgeting!

By Ken Kmet, Condo Voice, Clearwater, FL

Hurricane season runs from June 1 to November 30, so we’ve put together a checklist for condominium associations and homeowner associations for hurricane season readiness. The first thing an association has to do is adopt a policy on how the association will function during the three phases of a severe weather event: before, during, and after a hurricane/severe weather event. They must also adopt a hurricane shutter specification, then make a checklist of actions and duties assigned to the association and to each homeowner in all three phases of the severe weather event. If you have all this, examine it carefully, and update if necessary. Of course, all of this should be done well before you see the television alerts showing you the radar of a hurricane off shore and heading right for you. The last thing you need in a crisis, where your life may be in danger, is confusion and wrong assumption of duties. Make sure your preparedness policy alerts individuals of what common area services, equipment, and facilities will be available, or NOT available (such as the elevator). How to create this policy deserves its own post, and we will do that at a later date at condovoice.com, but every policy should contain the following details.

Emergency Board Powers: With details on the “special powers” conferred by the state legislature on condominium boards to enable them to maneuver their association through the difficult post-disaster period;

1. Immediate Post-Storm Action: Including locating residents and employees, attending to the injured, securing the community, and documenting storm damage.

2. Reconstruction and Restoration: Dealing with association attorneys, insurance companies, and contractors in disaster recovery and putting a community back together again.

3. If you have hurricane shutters, decide whether the association has the ability and the responsibility to close them when needed, or not.

Note: Impact-resistant glass windows and doors have become the norm in recent years, and condominium units and HOA homes with these are now self-sufficient and hurricane ready. As a homeowner, and as a rule, you should never assume it is the association’s responsibility to close your shutters. During a crisis, there is never enough manpower available to handle everything the community needs, or for each homeowner that has not planned well.

4. Post a notice to your bulletin boards and website. It should contain an alert of severe weather approaching and clearly state the association’s hurricane policy. This policy will assign duties to the association and each homeowner before, during, and after the crisis, including evacuation procedures.

5. Install shutters and/or make the association’s common areas and facilities ready well in advance of the storm. The storm may not hit, but it is better to be safe than sorry.

6. If you have association records on site, gather the boxes that contain them and put them in your pre-designated secure location either higher up or off site.

7. Try to determine who is staying, who is leaving, and what group of people will serve as volunteers for the association during the crisis. For example, who will help fill sand bags, move furniture, etc.?

8. If you employ a maintenance person or staff, determine if they are available, and if so, when and for how many hours, before they have to head home and care for their own property and family. They may serve several properties and have to share their time with those, and at their own homes. Contact each of your service providers and have a plan for what they will do for your property before, during, and after the storm. Discuss charges, rates, and the amount of time they can dedicate to your property, so that expectations are clearly set. Some service contractors have hurricane retainer contracts, which can reserve a certain amount of man-hours for emergency service.

9. Move all equipment that can be moved to a higher place. This includes pool pumps, compressors, small generators, and the like. Most condominiums and HOAs have maintenance rooms, which are most often located on ground level. These contain tools, equipment, and supplies, which should be set up to be moved quickly in the event of rising water. This place should be higher and easy to access after the storm so these things can be used to clean up and do immediate repairs if necessary. Remember, your elevator will not work in a power loss. Generators operate life safety equipment, and an elevator is not life safety equipment.

10. Remove all furniture and items that can become projectiles in high winds from the exposed common areas. Check with your swimming pool professional, and, in an emergency, if your pool’s surface can handle it, throw your pool furniture in the swimming pool.

11. If the association owns a generator, test it, and make sure it is supplied with fuel and that it functions properly.

12. If you have time, purchase supplies needed at your local hardware store for possible repairs and cleanup after the storm, including water, batteries, and perishable items.

If you have a website for your community association, make sure you post the links to medical and emergency services, including evacuation routes and procedures, so that members can access this while there is still power. A community website can be a powerful tool and asset during a time of crisis. It can be a place to turn, created and designed for just that moment, when all else fails. Make sure your website is also mobile ready, so that if power does go out, your members can still use their mobile phone to access the website. If you can, manage the website by posting alerts, notices, and other information so that not only residents, but out-of-town owners can access it for updates as to the status of the property, damages, etc. A website can also serve as an off site records storage resource for occasions like this. Talk to your website manager about this option.

Each condominium and HOA community has their own particular needs to prepare for a hurricane. This list IS NOT complete. It is only intended to get you thinking about “what if” a hurricane were to approach your condo community, townhome, time share, or HOA. Make sure you have gone over everything ahead of time.

If you are a self-managed community, have the list of people you will turn to for help handy. If you are professionally managed, go over your hurricane policy with your property manager, and how management will help you during the three phases. Don’t assume! Make sure you are clear with how much, and with what specifics, management will help you in the crisis. Determine and agree on the additional charges, if any, so that there will be no hesitation on their part when you ask for help. Make sure crisis-related manpower and equipment is designated for your community. Also determine how many of their resources you will have available to you.

During a time of high anxiety, the last thing you need to do is to have your anxieties increased by the thought that you haven’t prepared well enough. Having a proper checklist, being fully stocked with hurricane supplies, and having a clearly defined hurricane policy for your community can give you the peace of mind to know you have done all you can to prepare.