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With Immunity Comes Responsibility

March 14th, 2013

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

That’s not the quote, is it? No that’s right, it’s not. The quote is “With great power comes greatLady Justice responsibility.” Notwithstanding, we discussed the immunity provisions granted by the California Civil Code with respect to a volunteer director’s conduct that might be considered a “tort.” So what the legislature gives, it also gives duties. That’s not the quote either. It’s something about what the legislature gives it also takes away. My right hand does not know what the left is doing, either, by the way. But I digress. Are you still reading this?

The same Article of the Act that provides immunity for such volunteer directors also sets forth affirmative duties that all HOAs must follow. They can give themselves “more stringent” duties, but at a minimum, they must: 1. review operating accounts quarterly; 2. review reconciliation accounts of association reserves; 3. quarterly review reserve revenue and expenses; 4. review account statements from financial institutions in which reserve funds are placed; and 5. every quarter review income and expenses for operations and reserve accounts.

There is a subset of requirements regarding reserve accounts, in place to protect the maintenance of the complex and its maintenance areas. Who can sign checks, how much has to be in the reserve, what it can be used for. But there is another affirmative duty that dovetails into the theme of our last two blog entries and indeed, a lot of these entries regarding landlords in general. That is the duty to inspect.

“At least once every three years” the HOA board is to have the premises inspected, visually, in a reasonably competent and diligent manner. This is in conjunction with keeping the right amount of funds in the reserve accounts. But included in all of these inspections are requirements of identifying costs of repairs, for the “repair, replacement, restoration, or maintenance” of any identified repair needs.

In essence, the HOA is required to document what needs work, what arguably could later cause injury or property damage, how much it will cost to fix, and even estimate how much longer such conditions will exist (useful life). This would be great evidence in a lawsuit. Sounds like a subpoena for documents to me. So if folks were hoping for the protections of immunity without corresponding responsibilities, they might have been reminded of another quote: “Be careful what you wish for, you just might get it.” That quote is right. I’m pretty sure of it.

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in this blog submission do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

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Keeping Lease Renewals High in 2013

January 9th, 2013

By Steve Boudreault, Buildium, Boston, MA

Well here we are in a brand-new year, and if you’re a property manager, you’ve no doubt drawn up your plan forLeasing Center Sign keeping your residents and keeping them happy in 2013. Many property managers follow a fairly standard playbook when it comes to resident perks — Super Bowl parties, free coffee in the mornings, discounts on multi-year leases, and so forth. But here’s something to consider: SatisFacts, the apartment industry’s authority on resident satisfaction and retention, discovered that the top three factors that influence a renewal decision are quality of maintenance service, safety and security, and quality of customer service provided by office staff. But what about the free peppermint candy in the leasing office? Nope. Not gonna cut it.

So how can you use these three factors to your advantage? Let’s take a look.

The quality of maintenance service is a no-brainer. It can be a challenge for larger properties, but maintenance staff showing up quickly with the most likely tools they’ll need for the issue can go a long way. And though many properties have switched to an online maintenance request system, most service requests still come via phone or in-person leasing office visit, so having staff on hand who are familiar with the most common issues and how to resolve them can be a real feather in your cap. Never having to worry about the malfunctioning garbage disposal? Who wouldn’t want to renew?

It’s no surprise that safety and security are a high priority for residents. Why would anyone want to stay somewhere they didn’t feel safe? Taking proactive steps to ensure a well-lit property filled with well-informed residents is key. Make sure that you have a good rapport with the local law enforcement. Replace burnt-out light fixtures in exterior common areas quickly. Inform residents if there have been any incidents such as break-ins, vandalism, or strangers hanging around the property, and be sure to let them know what’s being done about it. A feeling of security? Who wouldn’t want to renew?

And finally, customer service. It doesn’t matter if you have five units or 500, it all comes down to customer service. Do you have experienced professionals in place? Folks who can endure the most expletive-laced tirades with a smile? Who can make prospective tenants feel at ease, but with just enough sales experience to convince them they should take the plunge? And the $64,000 question — do you have a customer service staff that cares? Really cares about resident concerns? If so, you’ve got the biggest piece of the puzzle already in place. A pleasant voice on the other end that makes a person feel valued and appreciated? Who wouldn’t want to renew?

So? What are you doing to keep your renewal rate high this year?

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“Weather” You Like It or Not – Winter is Coming!

August 21st, 2012

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!

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Pest Management for Property Managers

July 27th, 2012

By Rose McMillan, Terminix, Atlanta, GA

If you are a property manager, you may think that the idea of calling an exterminator is a nightmare. While dealing with pests of any sort is no picnic, it is far better than simply letting the infestation get worse and worse, which is exactly what is going to happen if you do nothing. If you are performing a property management role for a multifamily property, you need to have an integrated pest management strategy available at your fingertips should you detect a problem.

For Property Managers

Keep an open door policy for reporting pests. Be very clear that there will be no blame or penalties placed for reporting pests of any sort. One great way to keep things blame-free is to allow residents to sign up for weekly or monthly pest control treatments.

Be proactive with your pest control and make sure that you seal up any cracks or gaps in the walls and the baseboards. This keeps pests from entering the building on their own. Seal up the areas where pipe lines enter and leave the unit as well.

Call an exterminator sooner rather than later. For example, if roaches and bedbugs are seen during the day, this usually means that an infestation has gotten quite bad and needs immediate attention. An exterminator can tell you what you need to know about your situation.

Educate your residents by passing out notices with pictures of different pests and what draws them in. For example, people who live in urban areas should be warned about bedbugs and cautioned to avoid picking up furniture on the side of the road.

Put together a sound strategy for integrated pest management by working with a good company that specializes in pest removal. In many cases, a good company of this sort can ensure that you have all your bases covered.

For Residents

All residents should keep their homes tidy to better facilitate good pest management. For example, they should wash their dishes every day, and they should reduce clutter in their home to provide less of a safe haven for pests.

Residents should also throw out old food. This is because insects are drawn to food that is left out and undisturbed, even if the food has not gone bad. This includes old frying oil, which can be put in the freezer and thrown out when it is frozen.

Use bleach if possible to clean up the wet areas in the home. There are many pests that are drawn to the damper areas of the home, and bleach makes it impossible for them to live there. Bleach also sanitizes the areas, making it more pleasant in general.

Do a thorough clean of the home or the unit once a month. This includes sweeping, mopping, and scrubbing. Not only will this discourage pests from coming in your home, you will find that it can also help you detect pests that you did not know were there.

If you are running a large multifamily property, you must be proactive when it comes to pest control. This is not a matter that you can put off, so act before there is a problem. Most pest problems can be nipped in the bud early on if you have the right information at hand.

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Understanding a Property Manager’s Green Friends

July 9th, 2012

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!

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Failure to Inspect or Repair = Trouble

April 11th, 2012

By Colin McCarthy, J.D., Robinson & Wood, San Jose, CA

I once lived in a house in downtown San Jose that was next to an abandoned “historic” house. The house was only abandoned because it was “historic.” The city had an ordinance that prevented the owner from demolishing the building and rebuilding it, or selling it. Because the house was built before a certain time, the city ordinance prohibited him from doing anything with the property other than fixing it up. Rather than doing that, in protest, he did nothing with the property. And I mean nothing, other than board it up.

Mistake! You see it was downtown San Jose. It was right in the middle of urban, night time activities. The abandoned home soon became a sort of an attractive spot for the seedier and less fortunate souls. We frequently had to call the police. There were the typical late night guests, drinking, broken glass, and other non-printable activities going on in there. After enough of these visits, the neighbors reported the landlord to the city, and hearings were held. Fines were levied. Landlords got mad. Fences were put up.

Pulling the restrictive ordinance and the obstinacy of the landlord out of the equation, the landlord had a duty to know what was going on at his property. He should have inspected it, even if he did not have tenants.

What kinds of things can happen, from a legal perspective, if you do not inspect and repair? What will happen if the property falls into disrepair under your watch? Well, you can be sued for breach of contract. But if it gets really bad, you can be sued for a tort, too. How about for emotional distressed caused by an uninhabitable residence? For unfair business practices?

At least in California you can. Consider the facts in a case we cited in a recent post:

“Regarding the condition of the subject premises, appellant alleged that: ‘On or about October 8, 1974, to the present, numerous defective and dangerous conditions were in existence, including, but not limited to leaking of sewage from the bathroom plumbing; defective and dangerous electrical wiring; structural weaknesses in the walls; deteriorated flooring; falling ceiling; leaking roof; dilapidated doors; broken windows; and other unsafe and dangerous conditions. These defective conditions were unknown to plaintiff at the time she moved in to the premises, but as she continued to live on the premises, she became increasingly aware of them.” (Italics added.)

Also attached to the complaint was a copy of the Kern County Health Department’s notice to vacate and demolish the subject premises, which listed the following violations among others: heavy cockroach infestation, broken interior walls, broken deteriorated flooring on front porch, falling ceiling, deteriorated, overfused electrical wiring, lack of proper plumbing connection to sewage system in bathroom, sewage under bathroom floor, leaking roof, broken windows, and fire hazard.”*

Pretty bad, no doubt. But this particular landlord was sued not only for rent, but for the intentional infliction of emotional distress the tenant suffered. She repeatedly asked for repairs and informed the landlord of these problems. He did nothing. She informed him again. He did nothing. She did what all smart people do in such circumstances. She talked to a lawyer and sued.

At first it did not look good. The trial court limited her to breach of implied warranty of habitability, and limited her damages to rent payment. The appellate court disagreed, and allowed her to sue for all manner of civil wrongs related to the landlord’s alleged intentional neglect.

And although it’s not a discussion for this post, most insurance policies do not cover damages caused by intentional conduct. So not only was this landlord being sued, his insurance company might not have paid for any award against him.

So remember. If a tenant asks for a repair, don’t ignore. Inspect.

*Stoiber v. Honeychuck, 101 Cal. App. 3d 903, 912 (1980)

This blog submission is only for purposes of disseminating information. It does not constitute legal advice. The statements in these blog submissions do not necessarily reflect the opinions of Robinson & Wood, Inc. or its clients. No attorney-client relationship is formed by virtue of reading this blog entry or submitting a comment thereto. If you need legal advice, please hire a licensed attorney in your state.

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Never Put Off Until Tomorrow

February 13th, 2012

By Linda Day Harrison, theBrokerList, Chicago, IL

Touch It Once is a mindset, a philosophy, and a management style. It is the antithesis of procrastination coupled with a smart way to work by stopping redundant behavior dead in its tracks; both of which are the enemy of any efficient and well run organization.

The concept is simple – Touch It Once (TIO). Did you ever notice that each month the cycle is the same? Collect rent, send out 5 day notices, process accounts payable, cut checks, etc. So if this is something you know that’s going to happen, why is it so painful? Then at the end of the 30 day period, the cycle is going to start again! How can you not be prepared?! It happens every 30 days!

If you think about how the concept of TIO comes into play it will change the outlook you have on your business. Every time you do a task, think about how you can do that task perfectly. Save the process, document the task, and create a road map for others to follow that same format or system. The next time the task is required, anybody can use your process, learn how to execute, and actually accomplish it with the least amount of error or redundancy.

So how do you as a property manager or leasing agent “touch it once”? For me it was about checklists and document packets. These checklists include a new resident checklist, a move out checklist, a new vendor checklist, a monthly owner’s report checklist, etc. Every single time a new resident moves in or move out we have a series of steps and actions to take. Of course things change constantly, so the checklist was set up as a packet and saved as a .pdf document. Inside the packet are all of the forms, letters, and actual physical checklists for each item that needs to be accomplished. The checklist is clipped to the top of the file and it travels through the office circulating and being executed as required in anticipation of that new resident move in. So, if there is a form, letter, orientation, or document to be signed for any new resident, just open the New Resident document and all of it will be there. Simply hit print and go! This same concept can be accomplished in a similar fashion via online forms, but the system and procedure is the same – Touch It Once!

TIO is the most empowering tool a property manager can employ. TIO provides training, checklists, procedures, processes, and standards in everything you do. Remember, you are on a cycle. The cycle is daily, weekly, monthly, quarterly, annually, semi-annually, etc. What you want to do when you start to breaking the tasks down is to perfect the task, document the task, and train folks on how to perform the task. You are now building processes.

Those processes can be saved and used over and over like templates. After achieving these cycles and documenting these processes for one year, you now have an incredible roadmap of excellence for all to share. Now combine the power of TIO with today’s technological tools and you have a multitude of ways to execute this legacy of knowledge, which will result in the right tools being shared to your entire department, property, portfolio, or company.

One process that we developed has to do with new vendors. Each time we receive a call from a vendor or service provider we simply send them to our website to click and download our New Vendor Packet. It includes a cover letter, checklist, insurance standards, vendor profile form, all IRS forms, etc. Every single time this task arises, it is only takes seconds of time. It is also paperless and effortless. In addition, we now have a company-wide standard that everyone follows and knows what to expect. The other important element to this process is the image of you and your company. When meeting a new resident or interacting with a potential new service provider, your system is organized and systematic. When you give each process the care and proper attention to set it up and only touch it once, you are showing the world how much you respect, not only your experience with them, but also your organization, your clients, and your people.

Imagine if all employees understood the concept of TIO? If each employee were exposed to this philosophy, the power would multiply even faster and be an exciting approach to management and excellence.

TIO can result in comprehensive checklists, quality control, time saving templates, video training, orientation of new hires, new business tools, etc. It is also the least disruptive way to organize, train, and develop standards on a company wide basis, with everyone contributing. Start off trying it with one task. Remember, do it now and Touch It Once!

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The Circle of (A Property’s) Life

February 6th, 2012

By Linda Day Harrison, Manager Labs, Chicago, IL

There are business models in all shapes and sizes. There are retail stores, medical and legal practices, cleaning companies, general contractors, grocery stores, etc. So when you think about a business, how many business models do you know of where the business owner outsources the entire business to another party? For instance, if you visit your local grocery store, is it managed by a grocery management company? How about a retail store management company? So what makes the residential real estate investment business any different? Why are there so many property management companies and outsourced service providers to the property industry?

According to a colleague of mine, the answer is quite simple, “It is not easy, there is so much at stake, and there are many moving parts.” Also, when you think about properties as investments, there are often multiple partners and joint venture groups who own the assets. In those cases, the managing partner realizes they do not have enough time or expertise to do all of the functions required of them to maximize the value of the asset. That is what outsourcing offers.

As a property manager outsourced by these partnerships, the responsibility of managing that asset is crucial in so many ways. First of all you have been selected by the partner on the management of the asset. All of the actions you take as the manager or management company directly reflect onto the reputation of that partner or company that made the decision to hire you.

Next you have the individual people that make up the partnership. In each case, the goal of the investment with each partner is diverse. Whether there is one partner or 100, each one has their own individual investment objective. For instance, one partner may be investing because they have young children and the investment is intended to be a college fund. Another partner may be saving for their retirement. The point is that in managing the property there are many significant outcomes to decisions and actions of the property manager.

Remember, the actions you take need to be considered as part of a global picture. Each action impacts the value of the property. Now enter the customers. The actions of the property customers (aka tenants) also play a pivotal role in the value of the asset as well. For instance, if a tenant does not pay rent, the cash flow of the property is impacted. This is a business and the business must be financially healthy to exist. There are services and debts that the business is obligated to support as well. So if the rent is not collected in a timely fashion, there may be consequences to the service providers looking to be paid. The service providers are outsourced too. Those service providers need to be respected and considered as they are a vital resource to the property ecosystem and the operations.

The entire ecosystem of the property needs to flow in a healthy and respectful manner. If there are members of the ecosystem that do not respect the life cycle of the asset, there is imbalance. An imbalance is what causes tremendous pressure on the other members of the ecosystem. For instance, if a tenant does not pay, there is not enough cash flow to pay the electric bill. If the electric bill is late, there is a penalty. When a penalty occurs, it further erodes the income. When the income becomes eroded, other service providers suffer since the invoices cannot get paid on time. It is necessary to understand how all the actions of the parties involved will affect each other.

When issues arise, keep the ecosystem or big picture in mind. Each move matters and each party to the property ecosystem can make or break the healthy cycle. Hold every member of the ecosystem accountable. Follow up and follow through on everything! Make sure you have an excellent command of the property and your communication to all parties is crystal clear. As with all business habits, be fair and honest about how everyone must work together. If one party falls short of their obligation, be sure to put them on notice. Do not hesitate to follow the letter of the lease or contract or whatever you are obligated to enforce on behalf of the partners who own the property.

Being a property manager is exciting and rewarding, but it does require hard work and the ability to view the business from a holistic perspective. It can be a challenge to maintain the ecosystem, but as long as you’re always looking out for your partners’ (owners, tenants, and service providers) best interests, you will feel gratified about the work being done with the property. Your owners and investors will be pleased that you are increasing their properties’ value, and your tenants will be happy about their living situation.

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A Resident’s Expectations

January 23rd, 2012

By Steven Van Zile, Total Management, New York, NY

Within the past 24 hours, here are the maintenance issues I’ve experienced at the property where I reside: the maintenance person, loyal to this building for 33 years, responds to a
clogged toilet by advising us to pour bleach down the toilet. Concurrently, the intercom buzzer is stuck and won’t shut off. And, of course, the elevator renovation that started out as a one week project actually turned into a three week project, providing 6th floor tenants the opportunity to save money by cancelling their gym memberships.

It’s always seemed simple to me; as residents, we pay rent, maintenance fees, or mortgage payments and the property management staff provide services for the resident. Building and trust owners hire those property managers based on their abilities to keep churn rates low, vacancy at zero, and tenants happy all at or below a budget designed to re-invest in the property. So what happens when we tenants aren’t happy? Well, in today’s age of instant knowledge and access, a lot of renters turn to rating sites like Yelp or apartmentratings.com to spitefully pen scathing reviews in an attempt warn others. These sites might be seen as a threat, but if you’re really good at your job, more transparency can only help you, and reviews will actually help your business grow.

Let’s get back to the problems at hand. In the three examples I highlighted earlier, the correct response would have been to snake the toilet, send the on-call maintenance tech to repair the intercom, and hire a vendor that can deliver what they promise. Hiring a sub-par vendor can hurt your reputation as a problem solver, and at the end of the day, most renters see their property managers as just that.

One of the best things a property manager can do to avoid many of these issues is to do some vendor research before the hire. The property manager’s goal should be to minimize risk and liability when it comes to contracting with vendors. While making these minimizations it is also the property manager’s responsibility to hire a vendor that is legitimate and legally allowed to perform the work. A few ways to ensure that these requirements are met is by signing up for vendor review, screening, and compliance websites (e.g. servicemagic.com, vendorcompliance.comangieslist.com). It can take a little extra time to have all potential vendors verified through an extensive search process, but the benefits of providing quality service to the tenants greatly outweigh the negatives.

Still worried about those rating sites? Instead of fearing them, use them to your advantage. Track down some of your happy tenants and ask them to post a positive review. Do you have really happy tenants? Ask them to write a testimonial letter to the building owner and include it in your next monthly report. Anecdotally, the point that I’m making is that as a renter, the most important thing is customer service. If you can take care of that, everything else will follow.

If you list out the responsibilities of a property manager, and prioritize that list, ‘provide customer satisfaction through exceptional service’ should always be at the top. If you can ensure that quality of service, above all else, your services will always be in demand.

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5 Time-Organizing Tips

April 5th, 2010

One of the biggest challenges for property managers is staying on top of all the tasks they have to do in a given day. What with unit inspections, apartment showings, incoming and outgoing payments, resolving maintenance requests, signing leases, and responding to various queries, it’s all too easy to look at the clock at the end of the day and wonder where all the time went. Following are a few tips to help you make the most of each and every day.

1. Stay Organized
Sometimes it can feel like there’s no time to actually get organized. But the truth of the matter is, no matter how time-pressed you are, investing in organizational time is almost always worth it in the long run. Time saved trying to locate paperwork, contact information, financial records on your computer, or any other number of other items adds up quickly. Creating a system of organization (the more automated the better) will allow you to perform all your duties in a more streamlined fashion … which ultimately results in a whole lot of time saved.

2. Prioritize
Some days you may have to choose between getting one or two time-consuming tasks done versus completing a number of smaller tasks. Whatever the case, it’s most important that you use your time wisely. Take stock of your task list and check items off not according to the amount of time they’ll take, but by which issues must be resolved most immediately.

3. Stay on Task
There’s no doubt about it—we live in a world of multi-tasking. And while it’s true that modern technology allows us to do this (and there is a lot to be said for returning calls while on the road or responding to emails while waiting in line), it’s also much easier to be distracted than it once was. These days it’s hard to get anything done without being interrupted by a ringing cell phone, an incoming email, or the distraction of a web link. Don’t let technology get the best of you. A simple 10-minute task can be dragged out to an hour or more if you keep stopping in the middle to take care of those little distractions. Make the most of your time by staying on the task at hand. Flip your cell phone on silent, shut your email down for the time it takes to complete your task, and shut down your web browser. You’ll be shocked at how much more quickly you can get things accomplished.

4. Resolve Problems as They Occur
The most successful property managers have built a reputation on accountability—both to their property owners and their tenants. And accountability means being efficient. Don’t allow problems that can be resolved quickly to linger on your to-do list. The task will become more daunting, the issue at hand may expand, and your customer service will diminish. Make a point of taking care of those maintenance requests, queries, and miscellaneous requests within a 24-hour period. Your to-do list will remain more manageable and, best of all, you’ll keep your clients happy.

5. Check in with Yourself
Always know where you stand. It only takes five minutes at the end of each day to review your day’s progress and get a handle on what needs to be taken care of tomorrow. Having a clear idea of what’s done and what needs to be handled allows you to manage your time accordingly. And if you find there’s too much for one person to take care of, it also allows you the opportunity to delegate tasks to other staff or vendors to ensure that even if you’re simply out of time, nothing falls through the cracks.

In the world of property management, chances are there will often be more work to do than can be accomplished in one day. And that’s okay. But these tips will help you make the most of the time you do have and guarantee that those must-do items are always taken care of efficiently.

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