By Linda Day Harrison, theBrokerList, Chicago, IL

I came to the conclusion very early in discussions with potential new property management clients that an initial drive-by, preliminary meeting with the owner, if possible, and compiling facts about the property on my own internal “Real Property Inventory Profile” was the best approach for me to take in determining the information necessary. Keep in mind, this approach is only necessary with local owners who were typically comprised of a partnership of local individuals or related persons who pool funds to invest in real estate.

If the potential prospect is an institutional-grade client, the approach is completely different as that type of prospect knows exactly what is involved and generally the real estate has been managed professionally. In that case, a discussion with the existing property manager would be ideal, or you can provide your request for key information included in the “Real Property Inventory Profile” initially. The key fact is whether or not the property has been managed by professionals or self-managed, or is being built or acquired.

Why are all of these differences relevant? Well the basic reason is that a professionally run property has systems and procedures and good habits in place, and generally a self-managed or new property requires much more upfront labor to establish all of the systems and procedures that all reputable owners will concur are necessary.

In my professional opinion, all of these key factors would need to be considered before ever providing a fixed quote to any client. A range would be safe, but never a fixed quote of any kind.

In addition, you need to determine the serious level of interest in this client actually wanting to go down the path of hiring a new management company. That is why I created my own “Real Property Inventory Profile”  as my own cheat sheet of questions and information to gather so I could learn more. In some cases, I can just send this questionnaire to the owner and ask them to respond. The profile helps you to qualify the potential property owner and their level of interest up front. Why? Because providing a proposal to manage a new property is an investment in time and resources. Property visits, analysis, team discussions, research, and preparation of a professional proposal that speaks to that owner personally about their property takes significant time, effort, and in essence, if you do a good job, actually provides the building owner with insight into their own property.

The “Real Property Inventory Profile” is vital because it immediately tells me how much upfront work we would have to perform to actually start managing the property. In other words, were we going to manage something that was mismanaged and needed work from the ground up, or was this a well-managed property that was not going to require a “swat team” (see New Property or Facility Takeover: Where Do I Start?) to take it over and set up all of the processes and systems and procedures from scratch? That is a major point of contention with any new business assignment — how much labor will be required. Labor relates to cost and overhead, so when pricing an assignment, the upfront investment of labor is an important consideration.

It can also demonstrate to the client you are serious and want to know more about what type of owner they are. Are they hands-on? Are they an absentee owner or a rookie owner? Again, all of this information will enable the most accurate quote of labor, which is what business services is all about. Remember, in property management and leasing, time is our industry commodity, therefore we need to understand how much time all of the steps and tasks will take us to execute. There are many people who would take on any new business assignment, and that is fine, but it is fraught with risk and you must go into the assignment with your eyes wide open, as well as be prepared for price objections when a client states that something costs more than they are willing to pay. By doing your homework, you will be more prepared to handle the feedback.

By Linda Day Harrison, theBrokerList, Chicago, IL

When I was on the front line, running a full-service real estate firm, I would be the point person on all new business calls. The first question from a potential client would almost always be “How much will you charge to manage my property?” Or “What percent will you charge to manage my property?”

It was a frustrating position to be in, but one that was easily answered: “There’s no fixed quote to manage your property.” Of course, the argument would be that they called several other management companies and were quoted X or Y. But no matter what, I learned that providing a quote to anyone on the phone is a slippery slope, and a very dangerous approach to gaining new business.

Two things are certain:

1. No two properties are alike.
2. No two property owners are alike.

Based on years of experience and knowing these basic fundamentals, I would always learn about the property and client before offering any opinion on what the cost would be to manage their property. Why? Since I could not possibly know the scope of service required for a property without a site visit and further investigation into so many pieces of information, quoting a fee over the phone would do the client and my firm a disservice. However, it was a balancing act on so many different levels — I would have to keep the client interested enough in my answer and approach as to why just quoting a figure may not be in the best interest of the management company and hence the client.

To calculate a management assignment quote and determine what should be included, you must have a good handle on what your overhead costs are as well. If you have unit costs on your overhead, it’s much easier to simply create a matrix of unit items and then calculate the labor hours that relate to those functions.

The functions can be general categories like:

• - Account Management/Executive
• - Supervisor
• - Property Manager
• - Administration
• - Accounting
• - Capital Project Management
• - Leasing
• - Legal
• - Insurance
• - Technology

This is a sample list of functions; some of the functions may or may not apply to the scope. For instance, the owner of the building may pay and secure property insurance or use their own real estate tax attorney. Although that may be a red flag for smaller property owners, for large clients, it may be that they put their insurance out to bid as they have a risk management department to handle that work. Or they have an in-house legal department. These are important areas to consider, and understand that these tasks take time. And remember, time is money!

I think you get the drift here, but the main points are that no two properties are alike and no two property owners are alike. If you keep that in mind, you will be able to identify clients that understand your value and your concern to do the job right, rather than just provide a proposal blindly, without knowing how it will impact their company and the overall health of the assignment.

By Linda Day Harrison, theBrokerList, Chicago, IL

Absolutely! Why, you ask? It’s not a bunch of boring legal stuff that is neither cool nor sexy. Heck, it’s not even about marketing, technology, social media, or anything current or trending, as they say. Or is it?

I think it’s very cutting edge to act ethically, and above all, with the highest respect for your employer, clients, and customers. It’s not an easy track to maintain with all of the examples we see and hear about every day. Other people did it, so why not me? So-and-so was able to do this and they got away with it. Why should I walk the straight line? If they don’t know it, it won’t hurt them. Hey, I can e-mail documents, take files, and share information about my properties or clients freely! What’s the big deal?

Today more than ever, the world is becoming more and more transparent. Documents, information, and actions move so fast. You can’t hide, run away, or conceal your actions. There is e-mail, tweets, LinkedIn, and many other virtual business networks where your trail of activity exists. Use extreme caution. Ignorance is not bliss when it comes to this vital aspect in our roles as property managers, leasing agents, or company executives.

No matter what segment of the real estate industry you’re in, finance, marketing, management, operations, facilities, et cetera all require an intimate knowledge of ethics and how ethics work. Many of us belong to organizations such as IREM, NARPM, BOMI, REALTOR, CCIM, SIOR, and scores of affiliations that all carry a code of ethics to which you must adhere. If you don’t adhere to these codes, you may be sanctioned.

The timing of this topic is speaking to me as I teach an online BOMI International course, Fundamentals of Real Property Operations.  Chapter 1 is, you guessed it, Ethics! Just today I received a tremendous and timely report of Real Life Ethics Cases from IREM, which is a powerful document that should be required reading for all employees at every single real estate firm, whether it be leasing, property management, or brokerage companies.

If you do not have this IREM Real Life Ethics Cases document, it’s strongly suggested that you obtain it and distribute it for your entire staff to read. Additionally, study your favorite organizations’ codes of ethics and use them as a road map to create one for your company. Today with the advent of virtual networking and conversations moving at the speed of light, it is surely cutting edge to consider the impact of your communication and online interactions, and how they may or may not cross the line of ethics.

Here are some excellent examples to give you a good start on how the various facets of our industry address their respective member code of ethics:

IREM Code of Ethics
NARPM Code of Ethics
BOMI International Code of Ethics
SIOR Global Code of Ethics
CCIM Code of Ethics
REALTOR Code of Ethics

Host meetings or brown bag lunches to talk about what is acceptable within your company code of ethics and what is not acceptable. Make your statements clear and connect the dots to real-life examples of what can happen. Role playing can be fun and create bonds with your teams when working with this subject matter.

Again, I repeat, the study of ethics is truly cutting edge, and I believe it will start to take the front seat and be a hand-in-glove solution to many of our corporate policies as they relate to social media. I told you ethics was cutting edge! I am not steering you wrong!

By Linda Day Harrison, theBrokerList, Chicago, IL

Sorry folks, but the answer is: it depends! I know you hate that answer, but here’s why it does really depend!

Engineer/Maintenance Staff: The number-one issue for any property manager to evaluate is whether or not there are on-site engineers or maintenance, or if they are in close proximity to the property. As far as what makes it really painful to be off-site, not having on-site maintenance or even a handyman can make or break the assignment. The worst case is to have no on-site maintenance and no on-site manager or leasing agent. This is generally accepted in the smaller properties where this expense is absolutely cost-prohibitive. The rule of thumb would be anything smaller than 20 units. Anything larger than 20 units and you need to consider extremely accessible, outsourced maintenance or a live-in superintendent of some type. It will always be to your advantage to have someone on-site to be a body when there is a service request or a vacant unit to lease. A single vacant unit can gobble up tons of labor in driving back and forth for showings. Also, it is not a good idea to make any prospective tenant wait to see a unit. In leasing, you have to be there to get the job done when the prospect wants to lease. That is probably why so many small properties are self-managed or the owner actually lives there!

For properties of 50 units and up, the following need to be considered as well:

Size of property, or economy of scale: The property has to justify the expense. It’s that simple! If the property is not large enough, it doesn’t make sense. However, it depends. For instance, if the property is located in a place where there’s a need for a hands-on manager or leasing agent due to vacancy, then on-site can be justified. Also, if the property has the income to justify it or projects that warrant it, such as major capital improvements or a lease-up, it would also make sense. The bottom line is that there are various tests of common sense with respect to on-site versus off-site.

Another example is a client that owned a portfolio of multi-family properties and a handful of commercial properties as well. We needed to create a suburban location, so it made sense for our firm to house some of our staff on-site. Now a small building has on-site management and the company was able to land a nice-sized portfolio!

Vacant Units or Space Available: When it comes to a lease-up, there is no doubt that being on-site is a great advantage to the success of the leasing. If the property has an abundance of empty apartments or vacant office space, put on-site people there! There is no sense driving back and forth for showings and if you are leasing; there’s nothing like being there to respond to showings instantly. The same holds true for all property types if the configuration of the property warrants your team to be housed, even temporarily. Do not let the leasing suffer because of this important point.

Outlots and Outbuildings: Some properties have extra buildings or extra land that is underutilized. If that’s the case, it’s a wise idea to determine the cost benefit analysis of housing on-site leasing or management. If you can purchase or lease a mobile office, why not be there for the customers during the lease-up or construction?

Geographic Strategy: When getting calls for new business, always consider the geographic proximity of your staff and the drive time between properties. There are many considerations to make when it comes to distance. Many property types do not warrant any on-site presence. For instance, single tenant net lease, industrial, and many retail properties fall into this category. These tenant profiles are independent business models that do not require on-site services or assistance. It is a different world from the multi-story, multi-tenant properties, and these facilities don’t have as many moving parts. Always consider the economics of staff travel too. It may not make economic sense to spend a lot of time driving back and forth, so be sure you resolve as many issues as possible if you are off-site. For instance, ask one of the on-site tenants to be a key holder. Provide a secure lock box and have that tenant provide the lock box to inspectors, utility companies, or other authorized personnel. It’s bad business to make people wait or to delay work or respond slowly to power failures because there is no one on-site to permit access to mechanical rooms.  Think through the practicality of visiting those sites for inspections and emergency response needs. Off-site can work nicely if you plan and strategize the outcomes of the worst-case scenarios. Always strategize those what-ifs so you don’t waste precious staff time. Remember, an off-site office should not pose a disadvantage to anyone; if it does, there is something very wrong.

With today’s speed of information, via the Internet, the use of cell phones, iPads, Google docs, and connectivity to video, there should be ample ways to provide property coverage without adding more overhead, while also providing fast service.

Economics of Property Management: It’s customary for a property management company to want to provide the best possible management and the highest level of service. For the most part, being able to set up an on-site office inside a vacant unit or vacant area within the property is the most ideal. In those cases, the cost of the overhead of that office and the related salaries are the expense of the property. For that reason, many owners opt to avoid having on-site labor that is exclusively borne by their property. Another way to structure this arrangement is to permit the use of the vacant unit to the management company and enjoy the benefit of an on-site staff, but permit that on-site team to manage more than one property from that location. This can be problematic, however, if the property owner doesn’t understand how this really works. What this means is that other business is conducted from their site; however, they are not paying the full freight of the salaries. If the property owner totally understands the trade of bodies on-site vs. the loss of income, on a prorated basis, it can be a tremendous advantage and a real win-win for everyone. Many residential properties are clustered in neighborhoods, so grouping a team and permitting them to work from one location can make economic sense.

Hybrid of On-site and Off-site: The best situation is that your next property management assignment is large enough to warrant an on-site management and leasing team. It’s a clearly defined and exclusive arrangement whereby the property owner absorbs the cost of the salaries and the overhead of the office. It’s the same cost the property owner would incur if you were not an outsourced third-party management agent. However, it’s not always possible, and since most property owners are not financially able to absorb the full-time salary of a property manager and/or leasing agent, we as management companies need to share and outsource our labor over multiple clients, and if there’s leasing involved, we must stress the vital importance of having folks on-site, even if only during leasing season. In those cases, we are housed off-site and on-site! The point is we have to make it work for the property, as it always depends in property management, and it should be evaluated on a property-by-property basis.

By Linda Day Harrison, theBrokerList, Chicago, IL

How do management companies typically respond to new business inquiries?

1. Phone interview with a request to tour the client’s property.
2. Follow up with a brochure and cover letter.
3. Suggest the prospective client visit your website for more information.
4. How about a lunch meeting to discuss the business opportunity?
5. Or do you receive an RFI that requires you respond to a series of questions to be considered to bid?

In any or all of these scenarios your properties and corporate office should strive to think that every time there is a new business inquiry, it will result in a live tour of your office or properties and you can confidently say, “Why not stop at some of our offices or properties? We would love you to see our operations first-hand!”

You need to think that each potential new business opportunity will be predicated on a behind-the-scenes tour of your operation and back offices, and you are always ready! Does that give you a warm and fuzzy feeling, or does it make you want to panic and run for the exits?

The question you need to ask yourself each day is: Are you ready for that tour?

When it comes to day-to-day property management or leasing, so much of our day can be filled with inefficiency, busy work, and interruptions. Reflecting on the daily drama, you will soon see that most of what is important isn’t even the focus — how we appear to the public and/or the customers we serve should be the focus!

What the customers and general public see when they step inside our properties or offices is our curb appeal. It is vital that we keep them up to par every single day.

If you think that your property is going to be toured, what do you do? That should be your mindset every single day. We know the world is not perfect, but customers or the general public should not be exposed to the ugliness or the behind-the-scenes issues — those are our problems, and should not to be publicly aired.

You need to show the world, or your customers, what they want to see.

• Smiling faces, friendly greetings
• Clean entrances
• Obvious issues attended to
• Neatly dressed & groomed staff
• Easy to navigate facility and grounds

Now think about Disney World as an example. Disney World has an exemplary manner of treating their guests. When the show starts at Disney World, you do not see messy stacks of paper, litter, uncut grass, weeds, torn uniforms, or grumpy faces. Even if the Disney people are grumpy, you would never know it!

There is no difference with property management and leasing. What goes on behind the curtain, before the show at Disney, may be very ugly and hectic and full of drama. Costumes may not fit, pins may hold things closed, etc., but when the show starts and the curtain is pulled open, the show is well done and rehearsed.

The same should hold true for our industry. When the door opens in the morning, greet your day just like you think Disney World would do it. Each face should be required to smile and it should be all hands on deck to strive for excellence with curb appeal, common areas, and behind-the-scenes mechanical areas. Just remember when a new business opportunity arises, your team is ready to be showcased to help your company grow. No need to prepare, no need to worry, just let the show begin and feel free to invite any prospective new client to tour your properties and offices — you will know your team is Disney ready!

By Linda Day Harrison, theBrokerList, Chicago, IL

The answer is yes and no. Newsletters are a vital connecting point between you and your building occupants — that is, if you do a newsletter. As a property manager, I always felt compelled to reach out to and keep in touch with occupants and tell them what we were doing in and around the property. The newsletter also served as a simple way to provide them with information about the area, property, or anything at all pertinent to their involvement in the community.

I would feel incomplete if I were not able to reach those customers and share something with them at least monthly. My attitude was that customers needed to be kept informed in some way.

The trick is to make sure the message is short and to the point. Everyone is inundated with so much to read and follow and keep up with. We have work, family, church, hobbies, and where we live and work, all trying to grab our attention. All of these groups want to send us messages, and it’s hard to keep up.

As a property manager or leasing agent, we have to walk in our customers’ shoes and understand what works and what doesn’t. Times are changing for all of us in property management, and newsletters have been such a big part of our operations and marketing, and way to reach our customers. For many, the newsletter is a longstanding part of a resident or tenant retention program.

So are newsletters old news today? Or are there ways to improve on this long tradition of resident and tenant communication? What is the best way to get our customers to read those important messages we send, and is the old-fashioned paper newsletter obsolete?

I think the term newsletter is old news, but I still believe communication that is consistent and effective remains vital. It’s not a good idea to think what works at one property works at all properties. Why? Because the profile of a customer changes from property to property and in different markets. In some markets, the single-page, slip-under-the-door newsletter may still be viable, while in other markets or properties a Tweet, Facebook post, or blog post may do the trick. Today the sky is the limit on how to deliver the communication. But you can’t assume that everyone has high-speed Internet, and you can’t assume that everyone has a computer either!

When making the decision on newsletters and communication, the first thing to consider is your customer profile. Do your customers use the Internet? That sounds like a crazy question, but many communities that are active-living or over-55 communities may require a hybrid approach. Communities of families, students, and under-55 profiles are likely more accepting of Internet communication. Again, depending on the profile, you need to decide what communication works best.

For instance, if the property has entry points or common areas where messages can be posted or where flat panel television screens can be installed, live, up-to-the-minute communication is most effective. If you have elevator lobbies, those are the most ideal locations to install flat panels that can provide timely communications to all residents or tenants. No matter what age, most folks appreciate knowing what is going on, and the entry area is the most appropriate location to post a communication to your customer! How it looks or how it is delivered will depend on budget, physical limitation, aesthetics, and manpower.

As far as using these technologies, it is important that your database programs have fields set up to collect all of these touch points. For instance, be sure there are e-mail, Twitter, Facebook, and cell phone numbers collected on all resident profiles. With a cell phone, you can also send text messages. Text messages are an effective way to communicate as well.

If you set up a system of collecting these methods, and you keep it up to date, pushing messages out can be very effective. Now the message can include a hyperlink that takes the customer to a blog, or it can be a message in itself. Either way, it is still relevant to communicate with customers and make sure the communication is effective. Do you have a plan today for communicating to your customers? Are you currently collecting e-mail addresses, Twitter, Facebook, and cell numbers? If not, I suggest you start. At least you can collect the data so you are ready to convert your paper newsletter to an online and electronic message in the future. Once you are ready, it will be ready for you!

As far as using online, digital options, websites, blogs, Tweets, e-mails, texting, and Facebook can all be used today for both brief communications and timely messages that communicate important announcement or updates to your customers. The great thing about websites and blogs is that your customers can be added to an e-mail distribution list, and those messages can go out to all via automation each time an update is posted. WordPress, for example, has built-in tools that provide subscribers. The process would be added to your move-in of each new customer. When you add the lease, you also add their e-mail address to your distribution list. The resident will get an e-mail that permits them to accept the opt-in as a subscriber. It would be part of the orientation to the property to educate the new customer on how you communicate so they are aware.

Twitter is much more advanced technology and is not ready to be used on a widespread basis today, but hopefully someday it gains more use with the masses. If the group is a student profile, Twitter can be used to push messages out.

The bottom line is that the concept of a “newsletter” is not about the physical document or blog, but about communicating to your customer. You should reach your customers in some way, shape, or form, and today the choices are unlimited. Do not ignore this vital piece of your marketing program.

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 Linda Day Harrison, theBrokerList, Chicago, IL

The other day a property manager asked me how one can make money for their company and building, using Twitter, Facebook, LinkedIn or any other online network. It was a great question. I believe so many property managers, leasing agents and real estate professionals are confused about how these tools can be used.

Networking sites are just that: tools. For example, just because you use Twitter, you will not make money. Twitter is a vehicle to carry a message with the potential for your message to be read by many more people without paper, postage or labor to stuff an envelope. So if you want to get the word out about a property you are leasing for instance, the goal is to touch as many people with your message as possible.

How do you do that? Well if you are a leasing agent there are companies with many employees in a given market that you want to do outreach to. It is very difficult and time consuming to create email lists of those contacts and maintain current emails. Those businesses have employees who want to live as close to work as possible. By reaching those businesses, you have a very good chance that the employees at the company also follow their own company on Twitter, Facebook or LinkedIN. By sharing your information through their stream of influence, you are touching a wider audience. Yes, you have touched the company, but they touch many more people as well. Also, you can build up a great list, which is all part of the public domain and much easier to track and maintain than say a single person’s email address.

If you can imagine the postcard, brochure or three fold flyer we all used to market our vacant apartments or spaces in the past, it was a stagnant piece of paper that might be read and maybe shared, but highly unlikely. Also, you needed to maintain actual email addresses as well for each contact. All of that is outdated almost as soon as you collect it. People move around, but company Twitter, LinkedIN and Facebook pages do not!

Today, that postcard takes the form of a “post” hence the term is so closely related to the term postcard! So now you can post to that source or stream and that post does not go away. It is very powerful and lives online forever. So if you send a “post” today on any virtual business network, like Twitter or a business Facebook page or a LinkedIn status or your network du jour, your “post” does not get thrown in the garbage can. It is still alive, searchable and quite possibly being shared.

So the moral of the story is that our fundamentals are the same, but our tools are different. We are greener, using less manual tasks, such as folding, stuffing, labeling, merging, stamping and doing more outreach and online networking. As well as more researching of who to follow and who to reach. There is no difference in the fundamentals that you need to create a powerful, target market list, it is just that when you send the “post” you are pushing a tweet button or a share link, in lieu of the manual labor we are most accustomed to. The plus of all of this is that once you get your outreach system in place, it actually begins to expand as opposed to a paper mailing list or labels which actually becomes stale and outdated. The outreach and contacts you build via your Twitter or Facebook or LinkedIN outreach, if done thoughtfully, can become an extremely valuable and powerful tool for filling vacant apartments or finding new employees, or giving your customers property updates. It truly is about quality and connecting to those people who are your target market and are likely to share your news and help to expand your reach!

By Linda Day Harrison, theBrokerList, Chicago, IL

As a property manager, you hire landscapers or onsite staff to care for your grounds because proper greenery can really increase the property’s value. But how much do you know about plants and how much time do you spend learning how to incorporate plants into your property? Here is a list of things every property manager needs to know about plants, along with some inspiring thoughts to save money and create community spirit!

The Basics:

Annuals – Plants that grow for one single season.

Perennials – Plants that will return year after year.

Ground cover – A plant that is low growing and generally prolific (i.e., it spreads). Ground cover is great for the base of other plants as an accent. Also, depending on the area of the property, it can hide ugly areas or hard-to-grow spaces. Grass is one of the most successful ground covers, especially if you want a tall grass look. Grass comes in a ton of varieties, so do a little research on what you want before you lay the seed.

Zones – A zone refers to your climatic region; you need to know your zone when shopping for plants, shrubs, and trees. Each region has a number, and that number is vital to understanding what plants will work in your zone and what plants won’t. For example, if you live in an area with harsh winters and you want your plants to return the following year, you may want your plants to be covered for Zone 5a/5b. Check out your zone number here.

Water – Caring for your plants should be as low maintenance as possible, but obviously plants need water to become established and in times of drought. Don’t throw money away by installing a new plant and then forgetting about it. That is wasteful to your property owner! Water new plants diligently the first year. That way the plant will come back and require little to no water the following year (subject to your climate). If a drought occurs, do the best you can to remember the plants, even if some areas have water restrictions.

Exposure – If you’ve put a plant in a certain location on your property and it’s not doing well, more than likely it is due to poor placement. Time after time I find plants placed in areas with tons of shade, when in fact they should be in areas that receive a massive amount of sun. If you are not sure about the best location for a plant, look to the Internet for a quick answer. Every variety has a detailed description on what exposure is best. Follow what the plant description describes and simply relocate the plant. If the plant is struggling, consider moving it to a container and giving it some tender loving care for a while. Once it regains its strength, move it to the new location and water, water, water! The last thing anyone wants to see on a property is a dead or struggling plant!

Money Saving & Community Building Tips:

Grow Your Own – There are beautiful plants that spread so prolifically that you can literally place a single plant in a certain area of the property and use that spot as an incubator to grow more plants each year for future areas, thus saving your property money on future plant expenses. Examples include plants such as hostas, coneflowers, lamiums, daylilies, salvia varieties, wildflower varieties, tall grasses, and sedums. Not only do these plants save you money outside, around your property’s grounds, but these prolific plants can also save money on decorative plants used inside, in lobbies and other common areas.

Seeds – If your property has no money for plantings or landscapers on a grand scale, consider buying seeds. Creating a beautiful landscape when money is tight can be done with seeds. I always like to plant the seeds in small pots and watch the little sprouts very closely. If you live in an active community, it’s easy to get your residents involved. Find volunteers to help watch the sprouts and water them. Once grown, move them to larger pots until the little plants are established and strong enough to be put into the ground. You can also find custodians and other staff members to get involved to help nurture the plants. You will be surprised by how many folks who live or work on your properties have a green thumb. Before you know it, for a few dollars you will have large, full-grown plants!

Flower or Vegetable Gardens – If you have a property with land to spare, consider organizing a community garden. Give the residents the space and a community storage shed or closet to store tools and supplies. Let everyone get involved and create a garden for everyone to share. Grow plants or vegetables for the property or a nearby homeless shelter. This is a great way to grow more plants for the property, and it’s also a great resident activity.

Plants can really bring a property to life. Properly kept grounds can make your property very inviting to new and existing residents. It also shows owners that you take the extra initiative to make their properties look as attractive as possible, which only makes you look more marketable to other potential owners. Plants can be a property manager’s best friends!