Professional Property Management

In multifamily property management, there is always more to do, but there are certain things that must be done. In the effort to maintain full occupancy, these five tips are in the “must be done” category.

1. Renewals! The straightest line to maintaining high occupancy in multifamily is focusing consistent attention on renewals. Ignoring this makes maintaining full occupancy near impossible.

2. Be Ready! Never show a unit to a potential tenant that is not ready to occupy. This includes “almost ready” and “gonna be ready next week” multifamily units. It’s either ready to occupy or… wait.

3. Know Thy Competitors! Know where you can compete and where you cannot. Wendy’s restaurant has tried many times to get in on McDonald’s breakfast revenue. They just cant do it. Know thy competitors and what concessions they are offering in the present tense. Leasing agents should know amenities of competitor properties and how/where your property can out-perform. Example: older units almost always have greater square feet than newer product. Accentuate the positive!

4. Social media is a mainstay! Integration of Internet based advertising/media is a must no matter how small the multifamily market. The renter market is younger people (still). Young people are glued/stuck/fastens to their smart phones…. smart phones with connectivity to available apartment homes.

5. Two-way communication! Leasing Agents are far from order takers- they are the front line representing your asset. A potential tenant coming to your Leasing Office is looking for a place to live and insight on the lifestyle represented. A big part of leasing, then, is to dialogue and convey to potential tenants what they are buying.

This is accomplished best by creating two-way communication. Leasing Agents should be asking open-ended questions that draw information from potential tenants to better understand their needs and wants. This allows Leasing Agents to provide information on features and benefits offered by the development that meet potential customers lifestyle desires. People may look for features, but they buy benefits. The only way to know what benefits they are looking for is to ask.

Do not discount property presentation is an owner’s initial visual contact with current and potential customers. There is just no getting around an un-kept parking lot or peeling paint, over-grown grass or broken window screens. These items are examples of low-cost repairs that should be eliminated as barriers to entry for new tenants and to assist in retaining current customers in a multifamily property. There are of course two things that a multifamily property owner never has enough of; cash and customers. The tools suggested here will hopefully assist you in gaining both!

Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily management and acquisitions. This website is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. We discuss best practices in multifamily management and methods related to how to buy apartment complexes. Our focus is sharing strategies and tactics that can be implemented and measured.

The demand of property rental management companies is growing because they act as a conduit between the property owners and tenants (renters). The represent the landlords or tenants without the two parties in argument with each other. They also act as a screen between the renter and the owner as they manage the properties under their charge. They can help both parties; renters and owners. People can easily search for good residence and landlords can easily offer their properties on rent to reliable tenants.

It is good to know about responsibilities of professional rental property companies. They must be well established and posses high reputation. They must have proven records in managing properties in significant manner. They must have sufficient personnel who are well trained, knowledgeable, dedicated and professional in their roles. They ought to be advisors, rental collectors, and repair or maintenance executors for the property they are hired for. A good property management company must have aforementioned qualities.

For the landlord or property owner, the management firm must be accountable in getting their property and find the best tenants as quickly as possible. And for the tenant or renter, the property management companies recommend the most suitable places for rent with the rental amount in desired range.

There are many rental companies who can be very helpful for both parties – tenants and landlords. You can knock on the door of professional property companies in your local area or the preferred area of stay or around it. You can gather information about them by signboards, magazine advertisements, newspaper advertisements or yellow pages. You can also ask your friends or relatives. The most common access to real estate management companies is through the internet.

Thus it is obvious that a good company can handle properties well. But choosing the right one is also big undertaking. Here are some ways you can find out the right company so that you can offer your property to right tenants. Make a list of some reputable Professional Property Management companies asking your relatives and friends or gathering information from websites.

Try to conduct some simple research in order to find out right one out of various Rental Management Companies. You must read the user feedbacks to understand the service and quality of services before dealing with them. It would be even better if you have online discussion or international with them to confirm their services, expertise, reliability and results. There are many online forums where you can discuss about real estate topics. Before making a final deal with anyone of property management companies you should clear each and everything crystal clear.

The United States began its official foray into public housing in the 1930s. The National Housing Act of 1934 established the Federal Housing Administration (FHA) and authorized its Administrator to federally insure a multitude of financing institutions including banks and mortgage companies. The original purpose of the FHA was to facilitate the funding of “alterations, repairs, and improvements” to real property by various financial institutions. Over time, the Federal government’s role expanded, and the United States Housing Act of 1937 established the first rental subsidies, complete with residential income limits. Income limits are used to determine a family’s eligibility for a variety of programs, including Section 8 homes and privately held housing units that were built with state or federal tax credits.

The 1937 legislation defined “low-income” as a family “whose income does not exceed 80 per centum of the median income.” In addition, “very low-income” was defined as income that is below 50 percent of the area median income (AMI) or Median Family Income (MFI). When the Department of Housing and Urban Development (HUD) was established in the 1960s, it continued using these standards. By law, HUD is required to set, and re-evaluate, income eligibility thresholds for all of its housing programs annually. As a result, HUD releases income limits to the public each year for its various programs. It most recently released updated income limits for Section 8 housing assistance.

HUDs income limits are based on an the Median Family Income (MFI), which is calculated – according to HUD – “for each metropolitan area, parts of some metropolitan areas, and each non-metropolitan county.” In other words, HUD calculates the median income in pre-determined regions, which are generally based on population. So rural regions tend to include larger geographic areas because populations are more sparse. Income data is collected from the region and an average is calculated. That average is used to determine who falls into the low- and very low-income categories. The Fair Market Rent (FMR) for each area is calculated as well.

This year, HUD updated its methodology and is no longer using year-2000 Census data for its calculations. Instead, it now uses the Bureau of the Census’ American Community Survey, which is conducted annually. Though some 2010 Census Data is available, not all of it has been made public. Even so, ten years is a long time, and though the data would be accurate now, populations and housing markets could change dramatically in the next ten years (or less). By using the American Community Survey, HUD has a more accurate count of an area’s population and income, increasing the accuracy of their MFI and subsequent calculations.

Because HUD calculates income limits by region, it is possible for families to qualify for affordable housing in one region, but not in another. These disparities take into account the cost of living and fair market rates for wages, both of which vary widely from one part of the country to another. For example, in Los Angeles County the low income limit for a family of four is $68,300, while in Clay County, Iowa its just $46,800.

In addition to determining eligibility for various programs, HUD’s income limits serve as an indicator of a region’s, and the nation’s, overall economic condition. If income limits suddenly decrease, it means wages in that region have dropped sharply, too. The opposite is, of course, true as well. Income limits also help regions determine how many families qualify for affordable housing, so they can work to meet their residents’ needs. Unfortunately, few communities are able to provide enough low-income housing, and hundreds – or even thousands – of families are placed on waiting lists until more units can be made available.