A best practice is something that produces optimal results, and as such, is widely adopted. Property managers work in an industry filled with intense technological, cultural and demographic change.
As such, best practices in the field have changed dramatically over the past few decades. Today, managers are expected to treat properties as assets, rather than sources of rent checks. What, exactly, does that mean? Here are seven current best practices that all property managers should adopt:
1. Effective And Frequent Communication
There are few things more important for property managers than effective and regular communication. You need to stay connected to your staff, your vendors and your tenants. Renters will often have questions about utilities, payment scheduling and maintenance – especially during the first month of their lease.
You should be available to answer these questions. If this isn’t possible, considering hiring someone capable of handling questions, requests and complaints from tenants, vendors and other interested parties.
Effective communication is important and there are many landlord communication lessons to become proficient in.
2. Expense Management And Proper Accounting
You cannot succeed as a property owner if you don’t know how to handle expenses. Everything you do, every purchase you make, you should carefully mark and record for future reference. You should have a firm understanding of how much it costs to operate or maintain your property on a monthly basis, how much you earn in rent and how much profit you have left over.
For example, if you don’t know how much money to set aside for monthly maintenance, you’ll find yourself dipping into your profits and falling behind. This is just one of the many consequences that come with investing in property without being prepared for proper accounting and expense management.
Take the time to prepare your own property management audit, which should document the physical state of your building, in addition to the financial state. You’ll need to sort through your operating budget, rent roll and lease abstracts, among other important documents. Ask for assistance from an accountant, if needed.
This process should help you obtain a firmer grasp on business-related finances. Learn more about property expense tracking through Landlordology.
3. Creating An Efficient Maintenance Plan
To a tenant, there’s nothing worse than asking for a repair and waiting over a month to receive it. Take initiative when it comes to maintenance on your property. Create an effective and efficient maintenance plan that ensures most, if not all, requests can be addressed within 48 hours.
If you consistently miss the mark, your tenants will make sure everyone knows it. Remember, your tenants are your best source of free marketing. When you fail to maintain your rental space, you lose that marketing and risk turning it into a weapon.
Need more information? Visit Rentec Direct for a complete guide on rental property maintenance.
4. Attracting New Tenants
On that note, the best way to attract new tenants is by keeping your current tenants satisfied. When you receive a request or complaint, respond quickly. Keep an open line of communication and schedule a clear date of resolution. Then, when you address the request or quell the complaint, follow up with your tenant to make sure your solution was satisfactory. Happy tenants ultimately keep your building desirable, so don’t let them down.
Check out this list of seven other tips to help property managers attract and keep high-quality tenants.
5. Embracing Technology And Innovation
Let’s say you purchased a building completed in 1989. The windows, lighting, flooring, and other features haven’t been updated since then. It might be easy to think, “This is a nice building. I don’t feel I need to upgrade just because the design is dated.”
Tenants want updates. They want to see new technology and innovation at work in their rental space. Why? Because, even though they don’t own the space, they spend most (if not all) of their time in it.
For this reason, investing in new carpets, upgraded kitchen appliances, smart technology and responsive lighting is not only recommended but greatly appreciated by past and future tenants.
Your reputation will earn a boost, and so will your bottom line.
Master the art of using technology to upgrade your property for efficiency.
6. Having A Reliable Network Of Trades
There will be many times when property managers need to call on service providers in a variety of trades. When you first purchase a building, get in touch with all companies and workers who regularly provide maintenance.
Keep track of these providers, ensuring they are reliable and guarantee accurate quotes. Write down how long each professional has worked on your property and ask how much experience they have. These people know the history of your building better than anyone else. With their assistance, you can quickly deal with complaints and requests from your tenants.
Never underestimate the importance of screening your vendors. Learn more through Rentec Direct.
7. Simplifying The Process For Leasing Agents
Another great way to guarantee an ongoing stream of new tenants?
Make the process easy for leasing agents. Give them all the details necessary to sell your space and make a standard offer. If necessary, create several offers based on the different spaces available on your property.
Leasing agents should be able to access these offers at any time, providing handy information on rent to interested parties. Usually, with this kind of upfront knowledge, new leases can be signed in a matter of days.
When the leasing process is prolonged, possible renters have a tendency to walk away. Keep your business running like a business, instead of playing hardball. The money you earn from tenants who appreciate the convenience will be worth it.
Here are three steps you can take to streamline the leasing process.
Contact An Experienced Team To Learn More
At LCI Realty, we specialize in property management. We take pride in providing an education for interested investors, outlining useful tips and essential information for both commercial and residential properties. Contact our experienced team to learn more!
Click here to read the previous blog post.
