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Benefits of Outsourcing Property Management Services

Property management services have changed by leaps and bounds over the past 5-10 years. And property management outsourcing services have grown along with it. While the traditional approach to property management simply provided the basics – maintenance, rent collection, etc. – entrepreneurial PMs saw a massive gap in that value proposition and have transformed the real estate industry. Now, property management services are increasingly seen as a way to generate value for residents, real estate investors, and property management companies. PMCs are delivering resident benefits like credit reporting, renter’s insurance programs, pet guarantees, and more. And each of these services acts as a value add for everyone involved. But that can also add extra burden and cost to your property management business when your team is already spread thin. One of the best ways to offer value without overextending your team is to outsource some of those PM services to PropTech products, contractors, or a fully managed solution. Today we’re going to talk about this option in more detail. Whether you’re just getting started in property management or a seasoned pro, we hope you’ll find something here to help. Key Learning Objectives: What is outsourced property management? What services add the most value to the resident experience? What property management services are most easily outsourced? What are the costs associated with outsourcing PM services? What are the benefits of outsourcing PM services? What is Outsourced Property Management? Outsourced property management refers to the practice of paying for a third-party company or product to handle certain tasks or operations for your property management company. This could include tasks such as tenant screening, resident benefits, renters insurance programs, rent collection, maintenance and repair coordination, lease enforcement, financial reporting, and more. Property management is, in itself, an outsourced service for real estate investors/property owners. Just as property owners often choose to outsource their property management to save time, reduce stress, and ensure they stay profitable – property management companies may outsource several of their services for the same reasons. Property management outsourcing services, whether PropTech products or fully managed solutions, allow property management companies to build efficiencies and focus on quality and growth. Outsourcing certain services can give residents more of what they need and investors more value for their dollar. What Services Can Property Management Companies Outsource? Advances in technology and innovation within the property management industry have given PMCs greater flexibility in terms of outsourcing key services. As a property manager, you may outsource for a range of reasons. Maybe you’re still building up your team and need cost-effective expertise in a certain area. Maybe you have core products you want to focus on and want certain services to take less of your time. Maybe your investors or residents are asking for out-of-scope services that you can offer for an additional fee. Overall, outsourced property management services can help PMCs save time, reduce stress, and maximize the profitability of their company. So, what are some of the most commonly outsourced property management services? They can be grouped into a few categories: A single-family property management software and integrations that enable all kinds of business operations. Maintenance and repair. Many PMs outsource things like plumbing, HVAC, and other contractor work. Resident benefits and ancillary services. Property managers often outsource value-driving products like an RBP and other services that investors want, and residents will pay for. Let’s dig into the services that might be included within each of those larger categories. Rent collection Third-party payment processing companies can handle the actual collection and processing of rent payments for the PMC. The property management company will provide the payment processing company with the necessary information and details about the residents and the property, including lease terms, payment due dates, and amounts owed. The process may involve various payment methods, such as online payments, credit card payments, ACH transfers, or other payment options. Some popular outsourcing solutions that help collect rent include Buildium, Propertyware, and AppFolio. Second Nature provides a fully managed service that helps ensure your residents pay rent on time. Repair and maintenance Many PMCs outsource repairs and property maintenance. We’ve spoken with experts like Bob Preston, who run their own maintenance companies separately as another source of income and an added value to their clients. When a property management company outsources repair and maintenance, it typically involves hiring third-party contractors or service providers to handle the actual repair, upkeep, and maintenance tasks required for the property. Outsourcing repair and maintenance can offer several benefits for property management companies. You can access a broader range of specialized skills and high-quality expertise, which may not be available in-house, and save time and resources by avoiding the need to recruit and manage in-house staff to handle repair and maintenance tasks. Marketing and advertising Marketing isn’t everyone’s strong suit, and that’s okay! When a property management company outsources marketing and advertising, it typically involves hiring a third-party marketing or advertising agency to handle the promotion and advertising of the rental properties. The agency will work closely with the PMC to develop a comprehensive marketing strategy that aligns with the property's unique selling points and target audience. The marketing agency may use a variety of advertising channels and mediums to promote the property, including social media marketing, search engine marketing, online advertising, email marketing, print advertising, and other marketing channels. They may also create engaging content and visuals, such as videos, images, and virtual tours, to showcase the property's features and amenities. Legal Most PMCs outsource their legal services to a third-party law firm or attorney to provide legal advice and representation on various matters related to the property or properties. Legal services that may be outsourced can include lease agreements, evictions, compliance with local and federal laws and regulations, dispute resolution, and other legal matters that may arise in the course of managing the property. Outsourcing legal services helps minimize legal risks and liabilities, ensure compliance with applicable laws and regulations, and protect the property investor’s interests. Accounts and finance Many PMCs outsource to an accounting firm or financial service provider to handle the financial management and reporting. The outsourced firm will work with you to manage financial records, provide financial reporting, and ensure compliance with accounting standards and regulations. Accounting and financial services that may be outsourced can include bookkeeping, financial statement preparation, tax planning and compliance, budgeting and forecasting, and other financial reporting and analysis. Overall, outsourcing accounts and finance can help property management companies to operate more effectively and efficiently and achieve their financial objectives while minimizing financial risks. Insurance PMCs often work with a third-party insurance broker or agent to provide insurance coverage and manage insurance-related issues for the property or properties. The insurance coverage that may be outsourced can include property insurance, liability insurance, workers' compensation insurance, and other types of insurance coverage that may be necessary or recommended for the property. Another way to outsource insurance is to find a service that provides a renters insurance program like Second Nature’s. Ensuring that residents have insurance coverage is a priority for 90% of property managers, but only 41% of residents maintain compliant coverage. At Second Nature, our renters insurance program has 100% compliance. You can learn more about our coverage and fully managed Resident Benefits Package in our 2023 Resident Experience Report. Safety and security Many PMCs outsource to a security company to provide safety and security services. The security company will work closely with the property management company to assess safety and security needs, design and implement safety and security protocols, and provide safety and security personnel and equipment as needed. Security services that may be outsourced can include security personnel, security systems and equipment, safety training and education, emergency response planning and execution, and other safety and security-related services. Costs of Outsourcing Property Management Services? The cost for a PMC to outsource some property management services can vary depending on a number of factors, such as the scope of services required, the complexity of the work, the location of the service provider, and the level of expertise required. Some service providers may charge a flat fee, while others may charge an hourly rate or a percentage of the property's rental income. The cost of outsourcing property management services can range from as low as $1 per property per month to as much as hundreds of thousands of dollars annually, depending on whether it’s a full-service tech solution, simple maintenance services, a Resident Benefits Package, etc. It's important to note that while outsourcing property management services can come with a cost, it can also provide benefits such as increased efficiency, reduced workload, and access to specialized expertise. Before outsourcing any services, it's important to carefully consider the potential costs and benefits and to choose a service provider that offers high-quality services at a reasonable price. Benefits of Outsourced Property Management Services Outsourcing property management services can have a massive impact on your return on investment per door and per client. Outsourcing also helps with scaling when you can’t afford to run every service in-house. With the ability to outsource, you can offer more value to your clients without skyrocketing your operating costs. You can also drive secondary sources of revenue through outsourcing. Not convinced? Let’s go over some of the real-life benefits we’ve seen PMCs leverage with outsourcing select services. Cost savings Outsourcing property management services can save property management companies significant costs associated with hiring and managing in-house staff, as well as investing in technology and infrastructure. Outsourcing can also help to minimize overhead costs, such as office space, equipment, and supplies. Let’s think even bigger. Outsourcing value-generating services like a Resident Benefits Package has multiple benefits: boosting resident satisfaction, incentivizing on-time payments, and reducing vacancy rates. Talk about a cost-saving win! Increased efficiency We’ve seen PMCs use outsourcing to streamline their operations, reduce administrative property management tasks, and increase productivity. This can free up time and resources for property management companies to focus on core business functions and strategic planning. Instead of using your own team for time-consuming tasks, you can outsource them. Access to expertise Outsourcing property management services allows PMCs to access specialized expertise and skills that may not be available in-house. This can include legal, accounting, marketing, and maintenance expertise, among others. Outsourcing can also provide access to the latest technology and software, which can improve efficiency and effectiveness. Better risk management Property management inherently involves risk. You’re managing people’s lives on the one hand (residents) and investments on the other (owners/investors). Outsourcing can help better manage risks associated with property management, such as legal liabilities, compliance issues, and safety and security concerns. This can help protect your company from financial and reputational damage. Improved resident satisfaction You can more seamlessly and reliably improve resident satisfaction by providing better maintenance and repair services, more efficient rent collection, and faster response times to tenant concerns and requests. This can help to increase tenant retention and attract new tenants. Higher employee satisfaction Outsourcing services to a third party is a direct way to impact your employees’ satisfaction. How? Outsourcing helps reduce workload, gives access to better training and development, improves working conditions, and provides a better work-life balance. Often, outsourcing means that your employees get to focus on the core functions that they love instead of getting bogged down in tasks they don’t love or don’t feel equipped for. Factors to Consider When Outsourcing Property Management Back Office Services Selecting the right property management outsourcing services provider is a crucial decision that can significantly impact the efficiency, profitability, and overall success of your property management operations. Here are key factors to consider: 1. Range of services Evaluate the range of services provided by the outsourcing company. Check to make sure they offer the specific services you need, such as rent collection, maintenance, legal support, marketing, financial management, and resident benefits. A comprehensive provider can handle multiple aspects of property management, which can streamline your operations. 2. Industry experience Look for a provider with extensive experience in property management and a proven track record of success. They should have expertise in the specific types of properties you manage, whether residential, commercial, or mixed-use. Experienced providers are more likely to understand industry-specific challenges and deliver effective solutions for various situations. 3. Reputation Research the provider’s reputation within the industry. Check online reviews, testimonials, and case studies to gauge client satisfaction. A provider with positive feedback and strong references is more likely to deliver high-quality services. 4. Cost Evaluate the cost structure of the provider’s services. Compare their fees with the value they offer, as well as review how they bundle these services. While cost is an important factor, it’s essential to consider the overall value and benefits the provider brings to your property management operations. The goal is to achieve a balance between cost-effectiveness and high-quality service. 5. Customer service Effective communication is vital to successful outsourcing. Assess the provider’s responsiveness, transparency, and customer service quality. They should offer multiple channels for communication, ideally with a main point of contact, and provide timely updates on important matters. 6. Technology and innovation Assess the technology and software solutions the provider uses. Advanced property management software can enhance efficiency, improve communication, and provide valuable insights. Ensure the provider leverages the latest technology to offer seamless and efficient services. 7. Compliance and legal expertise Ensure the provider is well-versed in local, state, and federal regulations related to property management. They should be able to navigate legal complexities and ensure compliance with all relevant laws. This reduces the risk of legal issues and ensures smooth operations. How Thousands of PMCs Are Outsourcing Services for Better Resident Experiences Property management companies are always looking for new ways to generate value for themselves, their residents, and their investors. One of the quickest ways to scale and increase return on investment is to outsource property management services. At Second Nature, we’ve pioneered the first-ever fully managed Resident Benefits Package in order to support PMCs with just that goal. Our RBP provides services that residents are proven to pay and stay for – and our team manages every part of the process so property managers can focus on strategy, growth, or work-life balance. We’ve helped thousands of property managers transform their services and their operations with a customized RBP providing services they couldn’t do alone. Our goal is to make property management easier for PMs, residents, and investors – and drive value that benefits all three. We call it the Triple Win.

October 2, 2024

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9 Best Property Management Podcasts to Follow in 2024

As incredibly busy single-family and multifamily property managers, staying informed on the latest industry trends and resources on top of your ever-increasing list of to-dos can feel near impossible. But thankfully, there is now a wealth of excellent industry podcasts to do the hard work of staying up to date. All you have to do is tune in. Property management industry podcasts make it extra easy for you to gain insight, advice, and practical tips while commuting, cooking dinner, or working out. By listening to industry thought leaders and experts, you'll learn new ideas and perspectives on improving your strategies and ultimately growing your business. We've combed through all of the property management podcasts to find you the eight best ones. And we've made sure they meet the following criteria: The podcast's relevancy to your role as a single-family property manager – With so much information tailored to multi-use property managers, it can be hard to find industry insight into your particular challenges and industry issues. The caliber of the hosts and their guests – we looked for those run by reputable sources endorsed by trusted associations, organizations, and professionals in the property management business. Content quality and diversity of topics – We wanted to see that the podcast covered a wide spread of topics—from real estate investing to leasing challenges to tips like building your cash flow—and provided a well-rounded perspective on the industry. Actionable insights – We looked for podcasts that provided practical tips, strategies, and advice you can readily implement in your day-to-day work as a property manager. Length and accessibility – We all know how tiring it can be for a podcast to drone on and on. We looked for ones that were under an hour and were accessible, engaging, and even entertaining. 1. Triple Win Podcast The Triple Win Podcast is hyper-focused on the needs and challenges of single-family property managers. With each topic it addresses, The Triple Win Podcast looks at how property managers can create and monetize value for their company while also building strong working relationships. Its core focus is finding solutions that are a win-win-win for everyone involved—residents, real estate investors, and property managers alike. The Second Nature team hosts the podcast and invites experts across the industry to discuss topics such as using Practical AI for property management, turning customers into superfans, and tips for revenue building, annual goal planning, and more. The Triple Win Podcast is released twice a month and can be listened to here, and for more insights, subscribe to one of these property management newsletters. 2. Owner Occupied with Peter Lohmann Owner Occupied is an interview-style podcast. Each week, Peter Lohmann invites experts from across the industry to discuss the business side of property management. Lohmann covers super granular topics (like competing with the 3% management fee) and ones that look at the big picture (like how to know which opportunities to pursue and which to let go). Lohmann interviews experts such as Michael Girdley of the Complete HoldCo Course, Todd Ortscheid of Always There Repair, and Brandon Scholton of Key Renter Denver. The best part of this podcast is that Lohmann lists the time stamps in the description. So, if you don't have time to listen to the full interview, you can easily skip to the parts that most interest you. Find Owner Occupied on Spotify here and tune in weekly for valuable information and insightful interviews. 3. Property Management Business with Marc Cunningham Marc Cunningham of PM Build works tirelessly to help property managers build their people, profit, and processes. And he shares a wealth of industry tips in his podcast Property Management Business. Each episode is less than 30 minutes, making it incredibly accessible and easy to fit into your day. Marc brings an optimistic and grounded perspective to the industry, inspiring property managers to build strong working relationships with property owners, tenants, and realtors. He also encourages property managers to simplify maintenance and discover the industry's exciting future. Tune in for new episodes each month and be inspired to grow your business here. 4. The Profitable Property Management Podcast Do you love to hear success stories of non-stop go-getters? Well then, The Profitable Property Management Podcast is for you. The host, Jordan Muela, has worked in the industry for over ten years, started three businesses, hiked the Grand Canyon to raise money, launched two podcasts, and released the industry's first financial benchmarking study. And he brings all of that energy and expertise to his interview-style podcast. "This podcast is dedicated to the property manager entrepreneurs that refuse to settle in life and business," says Muela. And it's clear he's walked the talk. Tune in to his weekly podcasts on Apple, Spotify, or wherever you like to listen. He'll inspire you to find meaning at work, boost your profit margins, and stay resilient as you navigate the daily challenges of property management. 5. 300 to 3,000 300 to 3,000 is hosted by Matthew Whitaker and Spencer Sutton of Evernest. The episodes vary from 30 minutes to over an hour and a half, but because they are chock-full of tips for adding new properties to your portfolio, we decided to include it in our round-up. Evernest is a national property management company that grew out of necessity. When the 2008 economic crisis happened, Matthew Whitaker owned 30 investment properties he was desperate to sell but couldn't. Using all of their creativity and gumption, Matthew and Spencer launched their property management company. They have grown from the rockiest start to a thriving property management business that oversees 15,000+ properties across the U.S. Every week, Matthew and Spencer provide industry insight from an incredibly thoughtful perspective. They cover interpersonal dynamics (Episode 82: Trying to Build a Great Team? How Trust and Conflict are Essential), the emotional strain of property management (Episode 61: How to Find Clarity in the Middle of Painful Problems), and practical business tips (Episode 55: How to Grow Your Maintenance Department). Tune in here. 6. NARPM Radio The industry's most trusted association is the National Association of Residential Property Managers (NARPM). NARPM hosts conferences and trade shows, provides courses and webinars, advocates for policies that affect property managers, and offers ample networking opportunities for PMs. It's no surprise that their podcast is also an excellent resource. Twice a month, host Pete Neubig interviews different industry experts and provides invaluable insight into the various aspects of property management. Learn how to identify your business's core values, stay focused while growing your business, navigate property management taxes, and more. Connect with the organization on social media and catch the latest episodes here. 7. The Property Management Mastermind Show Like The Triple Win Podcast, The Property Management Mastermind Show focuses on single-family property management and is thus a valuable resource for those in that specific sector. Host Brad Larsen owns RentWerx, one of the fastest-growing property management companies in Texas. Brad brings his own hands-on experience to each episode and provides listeners with insight into the latest trends, best practices, tips for vendors, and more. Catch his weekly episodes here and take your property management strategies to the next level. 8. Property Management Brainstorm This podcast focuses primarily on maximizing your property value and raising your income while maintaining strong relationships with your tenants. Host Bob Preston brings his experience as a Silicon Valley technology executive to the property management space, guiding PMs on using the right technology and implementing effective operations to streamline and scale their businesses. Every week, Bob interviews other industry experts to help property managers think through business strategies and operations. Earlier this summer, Bob re-released our conversation on pest control in rental properties. It was such a delight to chat with Bob and I'm honored they have dubbed it one of their best episodes ever. Tune in to the full Property Management Brainstorm podcast here. 9. The Property Management Show The Property Management Show podcast, created by Brittany Stephens and Marie Liamzon-Tepman of Fourandhalf, Inc., breaks down the keys to business success with insights from industry experts. Launched in 2015, the podcast covers topics such as marketing strategies, industry innovations, and best practices for running a successful property management business. All content is based on the expertise of the folks at Fourandhalf, a marketing agency specializing in helping fee-based property management companies grow through services like website design, SEO, content creation, and online advertising. Catch show episodes here. Alright, there you have it—our nine favorite industry podcasts. We would love to hear which ones you enjoy the most and which ones you would add to the list. Happy listening!

September 30, 2024

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Property Management Pest Control: Why It’s Important

Pest control plays a critical role in effective property management. That's because pests are not just a nuisance – they can also contaminate food, damage belongings, spread diseases, and make rental properties unlivable. In this blog, we'll cover the impact of pests on your property and residents' lives, practical strategies for controlling these unwanted guests, and the benefits of a preventive approach to pest management. On hand to help us deliver these insights is Landon Cooley, the Co-Founder and CEO of Pest Share, a commercial pest control expert. Cooley's extensive experience in the pest control industry provides valuable knowledge on how property managers can effectively integrate pest control into their maintenance routines. What you'll learn: Why preventive pest control is a smart strategy How to monitor and control pests on your property The responsibilities of property managers and residents in maintaining a pest-free environment Common pests, how they enter properties, and the importance of immediate action and resident education By the end of this article, you’ll have a thorough understanding of the importance of pest control in property management and actionable steps to ensure a healthy, comfortable living environment for your residents. Why Preventive Pest Control Is a Good Strategy The most important part of pest control? Prevention. There are so many reasons that a good preventive pest control program can pay off for your company, your investor, and your residents. It sets professional property managers apart from the crowd. Here are some of the top reasons why preventive pest control works. Cost-effective in the long run Investing in a preventive pest control plan can save significant costs in the future. While there is an upfront cost, it's generally far less than the expense of handling large-scale infestations or property damage caused by pests. Prevents major infestations Pests have a way of multiplying exponentially. A preventative approach can nip potential critter nightmares in the bud. By treating small issues promptly, you can prevent them from developing into major infestations that are difficult and costly to eradicate. Enhances resident satisfaction Preventive pest control contributes to a comfortable and healthy living environment. By keeping pests at bay, you increase resident satisfaction, which can lead to longer tenancy periods and positive word-of-mouth referrals. Preserves property value Pests can cause significant damage to the structure and aesthetics of your property. By keeping properties pest-free, you protect and preserve the value of the property. Property managers are, in the most foundational way, asset managers for their property owners. This is a critical way to protect those assets. Reduces health risks Many pests carry diseases that can pose health risks to your residents. A preventive approach to pest control helps maintain a healthier living environment by reducing these risks. It also protects you and your investor from liability associated with those health concerns. Maintains reputation Effective pest control is a key aspect of property management, and a preventative approach helps maintain a good reputation. It shows prospective and current residents that you are proactive and dedicated to providing a safe, comfortable living environment. Again, prevention sets you apart from hobbyists and amateur property managers. How to Monitor and Control Pests in Your Property Regularly scheduled inspections are the best mechanism for effective pest monitoring. Ideally, qualified personnel should conduct quarterly or biannual checks. These inspections will focus on identifying potential entry points for common pests, and might include checking for cracks in the foundation, gaps around pipes and wires, and proper ventilation in crawl spaces. Maintaining open communication with residents is equally important. Encouraging residents to report any signs of pests, like droppings or unusual noises, allows for early intervention. Property managers should have a clear procedure for responding to such reports, ensuring a swift and effective resolution to prevent infestations from escalating. Of course, understanding the problem only gets us halfway (if even!) to solving it. As property managers, the responsibility of dealing with pest issues falls squarely on your team’s shoulders. Great property management companies employ a strategic approach to integrated pest management (IPM), minimizing the possibility of pests – and dealing with them immediately when there’s an issue. Along with routine inspections, here are some of the top property management pest control trips we’ve handpicked from the industry. Immediate action Taking immediate action at the first sign of a pest problem is crucial. Delays can allow the pest population to grow, making the issue more difficult and costly to handle. A quick response to reported issues shows your residents that their comfort and safety are a priority and can often prevent minor issues from escalating into serious infestations. Whether you call an exterminator or handle it in-house, a swift response is key. Tenant education Educating tenants on proper food storage and waste disposal can drastically reduce the attractiveness of your property to pests. Regular communication about cleanliness and preventative measures empowers residents to contribute to a pest-free environment. Professional pest control services Sometimes, professional intervention becomes necessary. Pest control services can effectively deal with large infestations, employing safe and targeted solutions. They can also provide expert advice on preventing future infestations. When hiring pest control companies, Cooley says, it’s important to understand what types of specializations they offer. “There are several different segments of the industry, and not all companies do everything,” he says. “Some do only residential insect control, or maybe rodent control. Some are very robust and specialize in all these areas. Every company is a little different.” Landscaping and exterior maintenance Maintaining the exterior of your properties is as crucial as looking after the interior. Regularly trim overgrown plants, manage water drainage effectively, and keep outdoor trash areas clean to deter pests. Seal entry points Prevent pests from entering by regularly checking for and sealing any potential entry points. This includes filling cracks, fixing broken screens, and covering crevices. Keeping your property in good repair helps make it less accessible to pests. Proper waste management Secure and timely waste disposal is key to pest prevention. Ensure that all trash bins are properly covered and regularly emptied to avoid attracting rodents, insects, and other pests. Each of these methods contributes to effective pest control, helping to create a comfortable, pest-free environment for your residents. Property Management Pest Control Concerns Who is responsible for pest control? The responsibility for pest control can vary depending on the state and the specific situation. In many states, landlords are largely responsible for maintaining a habitable dwelling, which includes addressing existing pest infestations and taking preventative measures. However, some states place more responsibility on residents, especially if the infestation arises from unsanitary conditions within the unit or from a tenant's actions that attract pests. Lease agreements often address pest control by outlining each party's obligations. It's important for both property managers and tenants to understand these clauses to avoid confusion or disputes. What are the most problematic pests? In terms of structural damage, termites and rodents are high threats due to their ability to gnaw and burrow. Ticks pose significant health risks as they can transmit diseases. For general nuisance and quality of life issues, cockroaches and bedbugs are common culprits. Ultimately, the most problematic pests will depend on the specific location, property type, and potential health risks. Do I need preventive pest control? If the properties you're managing have historically had pest problems, or are situated in an area with frequent infestations, then proactive measures will certainly be beneficial. Regular inspections and preventative treatments can offer peace of mind and potentially save money by stopping infestations before they start. Even if you haven’t had any issues, a purely reactive approach can end up costing you. How can pests enter my property? Pests can enter properties in a surprising number of ways. Cracks in foundations, gaps around windows and doors, holes created by utility lines, and damaged vents are all potential entry points. Even seemingly small openings can be enough for some persistent pests, like rodents and insects. Additionally, pests can hitchhike inside year-round on cardboard boxes, used furniture, or on pets. Why Property Management Pest Control Is Important When we talk about property management, pest control isn't just an afterthought—it's a crucial component of providing the peace of mind that comes with a safe and comfortable living environment. Dealing with these “visitors” is important beyond just the ick factor. “The pest control industry only serves 15% of US residents, and yet 86% of US residents have an experience of pest infestations every year,” Cooley says. “So there’s a big gap.” Let's delve into some of the key reasons why pest control is so important. Pests contaminate food Many pests, such as cockroaches, ants, and rodents, are notorious for finding their way into food supplies. They can carry harmful bacteria and other pathogens, contaminating food and cooking surfaces. Mouse droppings, for example, can spread disease, in addition to just being … gross. This can potentially lead to foodborne illnesses amongst residents, causing unnecessary discomfort and potential health issues. Pests destroy property Pests like termites and carpenter ants can cause costly damage to the property structure, eating away at wood and compromising the integrity of the building. Other pests may gnaw through electrical wiring or insulation, leading to costly repairs. By maintaining consistent pest control measures, you can prevent such destruction and safeguard your property, making it a more secure and stable environment for your residents. Pests destroy residents’ belongings Some common pests, like carpet beetles or silverfish, may seem small and harmless, but they can wreak havoc on a resident's personal belongings. These pests can destroy everything from clothing and books to upholstered furniture, causing financial stress and discomfort to your residents. Pests spread diseases Pests are known carriers of a variety of diseases and can be a public health risk. Rodents can spread hantavirus and salmonella, mosquitoes transmit West Nile virus and Zika virus, ticks carry Lyme disease, and fleas are known to carry several diseases or allergic reactions, to name a few. Roaches carry any number of bacteria and diseases. Keeping these pests at bay is critical to maintaining the health and well-being of your residents. Pests make it difficult to live Beyond physical health risks, pests can create an uncomfortable, even distressing, living environment. The presence of pests can lead to anxiety and sleep disturbances, negatively affecting residents' quality of life. Pests like fleas and bedbugs cause physical discomfort if not outright health problems, and many pests, like mites, spread or trigger allergens. In short, effective pest control is essential to maintaining the integrity of your investors’ property assets, the health of your residents, and your reputation as a caring and responsible property manager. How Much Does Pest Control Cost? The last, and sometimes biggest, hurdle when it comes to pest control? Cost. General pest control methods can cost hundreds of dollars per service. Here’s an average breakdown for budgeting purposes: Cockroach/flea treatment: $350-$750 per service Bed bug treatment (heat): $1500+ per service Bed bug treatment (chemical): $1000+ per service Rodent trapping service: $250+ per service Quarterly general insect service: $40-$50 per month How can property managers find a cost-effective solution that drives value and comfort for their residents without breaking the bank? Throughout his years of experience, this is the question that Landon Cooley found was nagging the property managers he met. “We wondered: Can we take these specific pain points – bedbugs or cockroaches or fleas – and find a solution that we can build into our Resident Benefit Program?” Property Management Pest Control Solutions Cooley’s solution? He co-founded Pest Share, which is a new service in Second Nature’s fully managed Resident Benefits Package. The Pest Share model is a subscription model that works like a co-op: everyone pitches in, and the collected funds go to the more expensive parts of the plan without burdening any one client with too much cost. Property managers simply select the Pest Assurance plan from four tiers of service levels. They add that plan to their RBP or OBP and pay a flat rate for it, which they can also roll into their overall RBP ancillary fees. Their residents can then go directly to Pest Share on their mobile phones to get pest services for no cost. “What we’re offering is unique, on-demand, and very tech-forward. Pet Share gives quick access to service but allows us to offer cheaper price points for the same end result,” Cooley explains. “Our approach is, 'How can we take this off the property manager’s plate?’ We aim to create ancillary revenue for them, take an annoying task off their list, and enhance the resident experience.” The result? Pest Share has helped their property management clients increase their Benefit Package ROI by 75%. For Second Nature, including Pest Share’s model in our Resident Benefit Package – and upcoming Investor Benefit Package – was a no-brainer. Learn more about Pest Share by getting in touch, or read our latest study on the impact of our RBP on the resident experience.

September 27, 2024

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12 Tasks for Property Management Automation

Property management automation refers to using technology and software to automate various tasks and optimize processes related to managing properties. It can involve using single-family property management software to streamline tasks such as rent collection, applicant screening, property maintenance requests, and accounting, among others. At Second Nature, we think of automation and outsourcing as two sides of the same coin. Either way, you're getting your time back. That's why our focus is making life better for residents and easier for property managers. Our suite of resident services helps support a better resident experience, driving up retention and making investors happier, too. And, since we fully manage every part of it, we also make life easier for you, the property manager. That's a "triple win." With that being said, let's dive into the nitty-gritty of property management automation: the seven tasks you can most easily automate and the seven tools to help you get there. Which Property Management Tasks Should You Automate? Automation might make us think of manufacturing lines or robots, but in the modern workplace, automation is simply a catch-all term for tech tools that can instantly streamline your work process. Automation tools handle time-consuming, repetitive tasks, speeding up the workflow process, creating fewer mistakes, and freeing us up to do more valuable work. Without automation, we find ourselves losing time with busy work like: Manually entering data Writing and sending emails Phone calls and follow-up Keeping track of to-do lists Fixing mistakes in spreadsheets or other work Reminding team members how to do day-to-day tasks Think about the last month when you took the same action repeatedly – or saw the same situation and made the same decision – or got the same question and shared the same information. If a task is easily duplicated and policy/rule-based, automation is coming for it. Here are a few of the most common areas where PMs are standardizing and applying automation tools. 1. Rent collection automation Online rent payments can automate reminders to tenants, reduce errors, and increase on-time payments to collect rent without creating any additional work for the PM. Tools like ELI+ (formerly Colleen.ai) and EliseAI are innovating this space. Both are chatbot-type tools that help automate things like rent collection by automating communication about delinquency and the follow-up process. The tools communicate directly with your residents for you with rent payment reminders, support, and more. 2. Property inspections and compliance Maintaining compliance with property regulations and ensuring thorough inspections are critical responsibilities for property managers. Using an automated checklist on a handheld device not only speeds up the inspection process but also ensures consistency, helping you meet regulatory standards efficiently. Automation tools can instantly generate comprehensive reports, eliminating the need to return to the office to manually input data. Tools like RentCheck and OnSight Pros can either automate or outsource this work for you as a property manager. RentCheck is a software tool that you and your staff can use for photos, checklists, workflows, and more, all while ensuring that inspections adhere to compliance standards. There's also a native app that residents can use to do inspections themselves. Then, it will compile a clean, easy report that you can send to your investors. OnSight Pros isn't exactly an automation, but it has the same impact on your workflow. They have a network of professionals who do property reviews in person for you, helping you stay compliant without having to perform every inspection yourself. They're not available in every market, but you can check their website for available service areas. Related: 5 Best Property Management Inspection Software Property Management Rental Inspection Checklist [Free Template] 3. Maintenance requests A 24/7 maintenance portal means you don’t have to take calls every time they come in, and you can quickly and easily triage maintenance requests. Tools like Property Meld help automate work requests, vendor communication, scheduling, and more. Mezo is another newer tool on the market that provides conversational AI to interact with your residents, scope the maintenance issue, support self-service, and help deploy the right professional if needed. With a tool like this, you can eliminate multiple trips out to the property or even have it fixed by the residents themselves. Related: 10 Best Property Maintenance Software 4. Accounting and bookkeeping Bookkeeping was one of the first areas of automation when computers entered the scene. It's hard to find a professional property management business that doesn't use property accounting software. Tools like Rentvine help automate fees, statements, financial tracking, and more. Most property management software platforms provide accounting features, and everyone uses them somewhat differently. You can use integrations, layer in vertical tools, and more. However, a lot of the actual accounting can't be truly automated. Instead, you can outsource to companies like Bynnd and Reconcile Daily who will do the accounting work for you. 5. Document management Property managers are always on the go. Automated document management is a game-changer. This one is pretty straightforward. Most property management software works with cloud-based documents and tracking or integrates with services like Docusign. 6. Managing new accounts With integrations, you can add new properties, trigger automatic processes, and reduce vacancies more quickly. For example, after entering a new property in your CRM, automation can launch a new property checklist and notify your whole team. For example, you can set up an integration where a new lead comes in as "won" through LeadSimple and Zapier automatically starts a new property checklist in Process Street, populates the data from the sales process, and assigns the checklist to the right person on your team. All automated. 7. Resident communication Email is the most common form of communication, and yes, it is automation. Some PMs are using even more streamlined workflow communication like Slack, LeadSimple, or Help Scout. Automation can feel alarming to some at first, but the best property managers are embracing it. They’re quick to do the hard work of developing policies, documenting the process, and then using tools to systemize their expertise and automate the work. The result is more reliable and likely less expensive than people doing it. Solutions like LeadSimple provide communication tools across customer types so you can set up automation for clients and residents. 8. Lease renewals Automating lease renewals allows property managers to streamline communication with residents when their lease is going to end soon. Various tools on the market can automatically generate renewal reminders, send them to residents, and draft lease agreements for electronic signatures. By automating this process, property managers can ensure they never miss a renewal opportunity, helping to reduce vacancies and keeping the workflow organized without manual tracking. Related: How to Craft a Lease Renewal Letter That Wows Your Residents [Free Template] 9. Resident onboarding Self-service workflows for resident onboarding allow new residents to manage their move-in process independently. Through online portals, automated messaging, and chatbots, property managers can reduce their direct involvement. This is especially useful for smaller property management companies that need to stay competitive while cutting down on manual tasks. By using these tools, residents can handle everything from signing leases and making deposits to setting up rent payments and maintenance requests, all without the need for back-and-forth communication. Although some property management companies may have some hesitation around adopting new technologies, the ability to simplify operations and offer a more seamless experience to residents makes these systems a smart choice for companies looking to operate efficiently in a tech-driven world. Related: How to Create Self-Service Tenant Onboarding Workflows Best Tenant Onboarding Software 10 Steps to Onboard New Tenants 10. Vendor management Managing vendors is an integral and sometimes time-consuming part of property management. Automation helps by consolidating communication and scheduling. For example, software systems can automatically dispatch work orders, track progress, and update the property manager on the status of repairs or maintenance. By using automation to manage vendor interactions, property managers can ensure timely service delivery while keeping their operations running smoothly. 11. Reporting and analytics Automating reporting and analytics allows property managers to track essential key performance indicators (KPIs) in real-time, providing a clearer picture of both financial and operational performance. These KPIs might include rent collection trends, occupancy rates, or maintenance costs, categorized by financial, operational, or property performance. By automating reports, property management companies can instantly access critical, transactional data while keeping sight of broader objectives like maximizing customer lifetime value. This enables data-driven decisions that not only focus on short-term metrics but also support long-term growth and stability. Learn more: Top 20 Property Management KPIs to Track 12. Utility billing and expense management automation Utility billing and expense management can be complex, but automation tools simplify the process by accurately tracking utility usage, generating bills, and distributing them to residents. This eliminates manual errors and ensures timely payment, while also allowing managers to monitor utility expenses across multiple properties. With automation, you gain full visibility into costs, making budgeting and forecasting significantly easier. Property Management Automation Tools After identifying the processes you want to automate, the next step is to adopt the best tools available to property managers. We’re seeing buzz from PMs across the industry using automation tools at every stage of their operations. One of the more visible examples out there is Peter Lohmann, CEO of RL Property Management. He outlined several no-code tools that he uses to automate his property management business. No-code tools are easy for anyone, and most can “talk” to other software through APIs. Here are some of the tools we like the best and how Lohmann has used them for his PMC: 1. LeadSimple LeadSimple is a sales and operations CRM geared towards property and real estate management. You can approve a rental application in the CRM and trigger other automations like emails, checklists, and more. LeadSimple recently added workflow automation and an inbox product that works like a ticketing system. 2. Zapier Zapier is a workflow automation app that connects all your other apps. For example, when you mark a new property in your CRM, it can “zap” your checklist software to start a “New Property Checklist.” 3. Process Street Process Street is an automated checklist software that gets your entire team on the same page. You can assign management tasks, mark priorities and completions, schedule, and more. It also has email templates that can be automatically populated from your CRM. 4. Slack We all know Slack. Slack is the communications app that puts your whole team in one place, sets up groups, streamlines topics, and more. Zapier can automatically send notifications through Slack about new accounts and assignments. 5. Mailchimp Mailchimp automates and sends professional emails. Through integrations, you can connect it with your CRM and other automations, so emails are automatically populated and triggered at the right time. 6. Airtable Lohmann explains that he has transitioned all non-financial data from their legacy system into Airtable, where they have control of it and can connect it to other tools. 7. Buildium Buildium is a property management software for PMs with 50+ doors in their portfolio. With a monthly fee, you can use Buildium to set up recurring rent payments with credit cards or ACH and use other property management features. Benefits of Automating Property Management Workflows and Processes Professional property managers don’t just manage property; they manage projects, workflows, and processes. Here are some of the top benefits of implementing automation tools to improve those processes and workflows. Improved efficiency Automated property management processes can drastically reduce the time spent on repetitive tasks, allowing your team to focus on more strategic activities. Use rent collection as an example: Instead of manually tracking payments, an automated system can collect payments electronically, keeping records updated in real time. Minimized errors Automated workflows minimize the chance of human error in tasks like accounting, tenant screening, or maintenance scheduling, ensuring accuracy and consistency. For instance, in accounting, automating calculations and data entry can reduce errors that may occur due to manual entry, ensuring the accuracy of financial records. Increased resident satisfaction Automation can speed up response times to maintenance requests, rent payment processing, and communication, leading to a better tenant experience. Using maintenance as an example here: Tenants can submit requests online, the system can automatically assign a service provider, and update the tenant with progress in real-time. Enhanced communication Automated reminders and notifications keep all stakeholders, from tenants to service providers, informed and engaged, improving communication. For example, automated reminders can notify tenants about upcoming lease renewals or rent due dates, ensuring they're well-informed and reducing late payments. Scalability Automated systems allow for easier scaling of operations as your property portfolio grows. It's much simpler to manage increased workloads when processes are automated. As your property portfolio grows, an automated system can easily handle adding new tenants, properties, and corresponding data, without requiring more administrative effort. Real-time reporting With automation, real-time reporting becomes possible, providing valuable insights into your business's performance and enabling better decision-making. An automated system can provide real-time occupancy rates, rental arrears, or maintenance costs, enabling you to make data-driven decisions. Cost savings By streamlining operations and reducing manual labor, property management automation can lead to significant cost savings in the long run. By automating routine tasks like tenant screening or lease agreement generation, you can save administrative time and associated labor costs. Regulatory compliance Automated systems can help ensure compliance with housing laws and regulations, reducing the risk of legal issues. For example, automated systems can update you on changes to housing laws and ensure all lease agreements are compliant. Remember, automation doesn't mean losing the personal touch that sets your business apart. Instead, it's about freeing up time and resources to focus more on those areas that truly require a human touch. What Is an Example of an Automated Property Management System? One innovative example of automated property management is right here at Second Nature. Our service helps manage and automate the resident experience to be the best that it can be. Our Resident Benefits Package allows property managers to deliver premium services – without the hassle of managing the programs in-house. Second Nature's RBP™ offers benefits that residents pay and stay for, like rent reporting, renters insurance, filter delivery, identity protection, resident rewards, and even a move-in concierge. With the RBP™ you can essentially automate resident happiness. How Second Nature Helps With Property Management Automation Automation sets professional property managers apart. As automation is adopted across the industry, professional PMs are more likely to build the right systems and put together the right tools faster than people who aren’t as motivated or skilled. At Second Nature, we believe in the power of innovation, and we see it every day in property managers around the country. Our tools, like the Resident Benefits Package, aim to bring more ease and automation to your work processes so you can get out there and grow your business. Learn more about our benefits and tools at secondnature.com.

September 26, 2024

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Resident Benefits Package: What is it? And How to Roll Out

What is a Resident Benefits Package? A Resident Benefits Package (RBP) is a selection of services provided by property managers to residents of rental properties. Sometimes referred to as a “tenant benefits package,” these benefits are usually included in the lease agreement and are designed to make residents’ lives easier by meeting their wants and needs. Some examples of these services could include filter delivery, credit building, and 24/7 maintenance. At Second Nature, we pioneered the only fully managed resident benefits package. If you’re ready to get started, you can start building your own Resident Benefits Package today! Note: We chose the term “resident” because the “tenant benefit package” sounded too impersonal for the value we’re driving. Continue reading to find out the benefits of a resident benefit package, how it can generate revenue, and how to implement one to give your residents, investors, and business a win. What Are the Benefits of a Resident Benefits Package? The resident benefits package adds value to residents by anticipating their needs and providing them with services that make life easier and better. It adds value to investors by preventing maintenance, vacancy, and delinquency. And, of course, it adds value to property managers because it differentiates them from the competition. Let’s take a deeper look at how the RBP creates a Triple Win – for residents, for investors, and for you, the property manager. 1. Attracting and retaining residents through better experiences Offering a comprehensive benefits package can make a property more appealing to potential residents. By providing desirable perks such as exclusive discounts, concierge services, or access to credit reporting and other financial benefits, the property management company can attract a larger pool of prospective residents and increase occupancy rates. Retaining residents is also crucial for profitability, as turnover costs can be significant. A benefits package can enhance resident satisfaction and loyalty, reducing turnover and associated expenses. 2. Higher rental rates for higher value A well-curated tenant benefit package makes properties more valuable. When residents perceive additional value in the form of amenities, services, or discounts, they are often willing to pay more for their living experience. This allows the property management company to command premium prices for their units, leading to increased revenue and improved profitability. 3. Differentiation and competitive advantage In a crowded real estate market, a distinct resident benefits package can set a property apart from competitors. It becomes a unique selling proposition that highlights the property management company's commitment to providing an exceptional living experience. By offering a package that exceeds what other properties in the area provide, the company gains a competitive advantage and attracts residents who value the added benefits. 4. Ancillary revenue opportunities A tenant benefits package can create opportunities for generating additional revenue streams tied to specific benefits in the package. Resident Benefit Fee: How Much Does a Resident Benefit Package Cost? Most resident benefits packages cost between $20 and $100, which is often included in the lease and added as a monthly fee for the resident. Prices vary depending on a few key factors, chief among them being the mix of benefits selected by the property manager. What Does a Resident Benefits Package Include? Here’s what the Second Nature Resident Benefit Package includes. Filter delivery service Air filter delivery was the first service Second Nature offered to scattered-site and single-family property managers. It is a cornerstone of the RBP, and over 1M residents have shown that a physical, tangible product is key to their ongoing perception of value. One of the most common causes of HVAC maintenance requests is a failure to change the home’s air filters on time. Air filter delivery from Second Nature solves the problem by delivering the correct-sized high-quality HVAC filters directly to each home’s front door on a predetermined schedule. The delivery serves as a reminder for the resident to change the filter, and voila – problem solved. The resident breathes clean air, the PM has fewer HVAC tickets to deal with, and the investor has their asset protected. That’s a triple win. Our message to residents: “Changing filters is as easy as opening the front door.” Phil Owen, founder of OnSight PROS, says of the delivery system: “Last year OnSight PROS performed third-party property condition reports at almost 18k single-family rental properties on behalf of property managers. The number of filters that we have to replace or mark as ‘needs attention’ becomes almost zero when a PM implements the Second Nature program. I cannot imagine how a property manager could justify not protecting their landlords with this program. The difference between those using the program and those who simply hope that their tenants go to the store to purchase and install a new filter is staggering.” Our filter delivery service has proven to reduce total HVAC maintenance requests by 38% and save up to $250 per year per property. $1 million identity protection One in four Americans will be victims of identity theft. In 2021, digital theft incidence surpassed home burglary incidents for the first time – and is rapidly rising. With identity protection as part of your RBP, every adult on the lease automatically gets the peace of mind you can expect from professional-level identity protection. Backed by AIG and monitored through IBM’s Watson, Aura Identity Guard works proactively on behalf of the resident to identify fraudulent use of their identity and alert them. In the event of an actual identity theft case, the resident receives a dedicated case manager and is covered up to $1,000,000 for most resulting damages. This protects the resident's ability to pay rent, which makes it a win for the investor. And it keeps property managers out of the middle of another difficult situation and decision. Credit building With RBP’s credit building service, on-time rental payments improve the credit score of your residents. It may seem crazy that people are building credit by paying for Netflix and other small subscriptions, but not their largest monthly payment... rent! But that's the truth for most residents. We asked, how is it even possible that someone's largest monthly expense is the only one they aren't getting credit or rewards for? This credit reporting program reports positive-impact, on-time rent payments automatically to all three credit bureaus, helping residents build their credit simply for paying their rent on time. Residents also get an immediate boost with 24 months of back reporting included. This service directly impacts rates on credit cards, auto loans, and future mortgages, incentivizing residents to get rent in on time and helping set them up for home buying in the future. The property manager and the investor both reap the benefit of the extra incentive to get rent on time and the resident gets to see their credit score rise as a result of something they have to do anyway. It’s a big-time triple win here. Resident rewards program Rental rewards are a favorite among residents and another powerful and positive incentive for on-time rent payments. Rental rewards programs deliver automatic benefits at move-in. Then, residents can unlock even more rewards by paying rent on the day it's due. At Second Nature, all on-time payment tracking is done through the app. Like other services in your RBP, it’s managed for you. Gifts include: $30 gift card for national and local brands $25 restaurant card $40 rewards cash on rent day each month rent is paid on time And more The value of rewards is covered in the cost of the RBP, so the property manager isn’t seeing any additional liabilities. The PM and investor only see a benefit, which is the increase in on-time rent payments. For the resident, rent day is now rewards day. Another triple win. Move-in concierge Setting up utilities can be a massive headache for a new resident. Residents aren’t sure who to call and who provides utilities and home services like internet and TV for their new address. Moreover, the research for discounts/promotions/coupons available takes more time. Most times, the process is clunky, with lots of friction that gets in the way of it getting 100% done. And it is too easy to overlook fine print in the lease about installing satellite dishes. Move-in Concierge changes all of that for professional property managers. In one phone call, residents find out what their best options are and can even get help simplifying setup. An experienced concierge confidently guides multiple people every day to properly set up their utilities. Renters insurance program Nearly all property managers require a renters insurance policy in their lease agreements. As part of our RBP, Second Nature offers price-competitive insurance coverage options through a Renters Insurance Program that property managers can apply to all their residents locked in with one group rate. Residents who have their own renters insurance can receive a waiver on RBP's insurance program, but the current list of enrolled residents is tracked for you by Second Nature, and any resident who drops off of their own insurance is automatically enrolled. No more hassle for you, quality asset coverage for the investor, and immediate and comprehensive liability coverage for the resident – another triple win you can create with your Resident Benefits Package. Additional benefits At Second Nature, we help property managers deliver all their services to residents. If you’re already offering perks and are ready to level up to a resident benefits package, we can help you bundle the above benefits with other services. We’ve worked with PMs to bundle in their existing property management services, including: 24/7 maintenance coordination: A huge benefit to residents and PMs is a service that provides after-hours support without dragging the property manager out of bed. This type of program makes reporting pesky maintenance issues easy and fast for the resident. It also helps prioritize emergency maintenance. Online portal: With a simplified online resident portal, residents can access all of their documents, messages, and more through an app. Residents can also pay rent and receive reminders to pay rent online. Home buying assistance: For residents who are building up toward home ownership, some PMs offer assistance in building credit and savings. We help them get there. Vetted vendor network: A vetted network ensures that vendors who service your properties are screened to exceed your standards for insurance, licensing, and professionalism on the job. Property managers, residents, and investors can rest easy knowing that they have the best vendors working on their assets. Washer/dryer rental: Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due to the convenience of having the washer/dryer available. Security deposit alternatives: Security deposit alternatives come in different packages, but all serve to provide residents ways to be financially liable for damages without having to pay a significant lump sum upfront. Pure insurance, surety bonds, and ACH authorization programs are all versions of deposit alternatives that seek to lower the barriers to rental, which in turn keeps days-on-market low and turnover costs down. Pest control services: Property managers can partner with pest control companies to provide routine or property management pest control services to the homes they manage. Bugs are one of the most common complaints from renters, and having services available to prevent infestation issues is a big win for resident experience. When implementing a full-service, fully managed resident benefits package, you don’t have to lose the benefits you already offer. A great service can integrate all of these benefits together – delivering more impact to residents, investors, and property managers. How Much Revenue Can I Create Per Unit With a Resident Benefits Package? The amount of ROI on a resident benefits package will vary depending on the property class type, market, and number and type of services offered. Generally speaking, resident benefits packages are often in the $25-75/mo range for residents, but could be more or less. It depends primarily on the amount and type of products and services. To go back to our concept of the experience economy: a resident benefits package gives residents the kind of incredible experience that they will pay and stay for. In short, keeping residents happy can reduce turnover and lead to lower costs and higher ROI for you and your investor. According to Eric Wetherington, VP of Strategic Initiatives at PURE Property Management, “Revenue is all about providing a service. The younger generations we’re dealing with in property management – they want convenience, they want experiences, and they want things to be simple, and they’re willing to pay to have things taken care of for them.” A fully managed resident benefits package can generate revenue in two key ways: Increasing services to improve resident retention Decreasing costs by increasing efficiency A resident benefits package can help to accomplish both. Routine filter delivery cuts down on HVAC and maintenance costs. A move-in concierge helps cut down time and cost as residents get settled in their new home. Credit building services keep residents invested in paying on time, sending online payments, and delivering incredible value. The list goes on. A resident benefits program creates a huge win for you as a property manager, and your investor, by driving higher ROI over time. How Can Property Managers Implement a Resident Benefits Package? If a resident benefits package is new to your company, you may wonder how best to implement it. Should you roll out a resident benefits package as part of your base service – ensuring the maximum benefits for your investor – or allow residents to opt in or out? What is legal or not? We do recommend including this as a part of the base package for all residents. Offering optional RBPs creates potential for headache, and the theoretical benefits almost never materialize. According to Second Nature's Head of Sales, Bob Hansen, “You have to look at the value that a resident benefits package brings to the investor and the resident, not just you as the property manager.” At Second Nature, we’ve seen incredibly low pushback from residents when an RBP was introduced. After all, it benefits residents, and most are delighted to have the extra service. How Can Property Managers Reduce Costs With a Resident Benefits package? The answer is: in several ways! Implementing a comprehensive residential benefits package can provide property managers with opportunities to reduce costs and increase operational efficiency. Let’s look at examples from the product above. By including air filter delivery as part of the package, property managers can ensure that residents have regular access to clean air filters, reducing the need for costly maintenance and repairs caused by poor air quality. Offering identity protection and credit-building services can help mitigate the financial risks associated with identity theft and delinquent payments, potentially reducing costs related to collections and legal procedures. They also improve retention and encourage on-time payments. Including a resident rewards program can also incentivize desirable behaviors such as timely rent payments or positive referrals, fostering resident satisfaction and reducing turnover costs. By partnering with a renter's insurance program, property managers can transfer potential liability and property damage expenses to the insurance provider, minimizing their own financial risks. A move-in concierge service can streamline the onboarding process for new residents, reducing administrative costs and improving operational efficiency. By providing these benefits, property managers can enhance resident satisfaction and retention, ultimately reducing expenses associated with turnover, repairs, and legal issues. Common Mistakes Property Managers Make in Implementing Resident Benefits Packages In our experience helping property managers implement RBPs, we’ve heard our share of concerns or even horror stories from PMs who had bad implementations with other products. Here are some of the most common mistakes in RBP implementations – and how to avoid them! 1. Overpromising and underdelivering Property managers may advertise extravagant benefits that they cannot consistently provide or fulfill, leading to disappointment and resident or investor dissatisfaction. Property managers should accurately represent the benefits package, ensuring that the offered perks are realistically achievable and consistently provided to residents. 2. Lack of communication Failing to effectively communicate the details and availability of the benefits package to residents can result in confusion and missed opportunities for using the offered perks. Property managers should effectively communicate the details, availability, and utilization process of the benefits package to residents through multiple channels, such as newsletters and online platforms. 3. Inadequate research and selection Property managers may choose benefits that do not align with the residents' preferences or needs, leading to a lack of interest and underutilization of the package. Property managers should conduct thorough market research and engage with residents to understand their preferences and needs, ensuring that the benefits selected align with their expectations. 4. Failure to evaluate cost-effectiveness Neglecting to assess the costs and benefits of the package can result in offering benefits that are financially unsustainable or fail to provide a satisfactory return on investment. Property managers should regularly assess the costs and benefits of the package, considering factors such as resident utilization, return on investment, and overall financial sustainability to make informed adjustments as needed. 5. Lack of flexibility and adaptability Not regularly reviewing and updating the benefits package based on resident feedback and changing market trends can make it less competitive and less appealing over time. Property managers should actively seek resident feedback, monitor market trends, and periodically review and update the benefits package to ensure it remains competitive and relevant to residents' changing needs. 6. Insufficient staff training Failing to train property management staff on the benefits package and its administration can lead to ineffective communication, missed opportunities, and difficulty addressing resident inquiries or issues. Property managers should provide comprehensive training to their staff on the benefits package, including its features, administration processes, and effective communication strategies, enabling them to effectively support and engage with residents. 7. Neglecting legal and regulatory considerations Property managers must ensure that the benefits package complies with all relevant laws and regulations, such as data protection requirements or fair housing laws, to avoid legal repercussions. Property managers should consult legal experts or advisors to ensure that the benefits package complies with all applicable laws and regulations, protecting both the company and residents. 8. Ineffective marketing and promotion Inadequate marketing efforts to promote the benefits package can result in low resident awareness and limited participation, reducing the overall effectiveness of the package. Property managers should develop a strategic marketing plan that utilizes various channels to promote the benefits package, highlighting its value proposition and actively engaging residents in participating and utilizing the offered perks. 9. Ignoring resident feedback Neglecting to seek and incorporate resident feedback can hinder the improvement and optimization of the benefits package, missing opportunities for enhancing resident satisfaction and retention. Property managers should establish channels for residents to provide feedback on the benefits package, actively listen to their suggestions and concerns, and make necessary adjustments to enhance resident satisfaction. 10. Lack of coordination with vendors Failing to establish clear communication and expectations with vendors offering benefits can lead to subpar service delivery, difficulty resolving issues, or missed opportunities for cost savings. Property managers should establish clear expectations, contracts, and regular communication channels with vendors offering benefits, ensuring a seamless and satisfactory service delivery process for residents and promptly resolving any issues that may arise. This is A LOT to keep in mind, and avoiding these mistakes might feel like it will cost too much or simply take too much work. But that’s why opting for a fully managed RBP is a solution so many PMCs are turning to. You can rely on a partner to manage all aspects of your RBP, and ensure it's delivering on its promises to your residents. More on that in the next section. How 1,000+ Property Managers Are Creating Triple Wins With a Resident Benefits Package Rolling out a resident benefits package is a powerful way for property managers to create a Triple Win – for residents, investors, and themselves. An RBP like Second Nature’s is designed to be simple to use and easy to implement. All the services included within it are managed externally by Second Nature, meaning there is no day-to-day upkeep required from the manager. You plug it in and Second Nature keeps it running. The value creation an RBP generates – with such little work required from the PM – is an incredibly easy way to grow your business and create great experiences that residents will pay and stay for. Don't get left behind in the evolving world of resident experience. Learn more about our fully-managed Resident Benefits Package and how we can build ease for you, your investors, and your residents. Learn More About RBP from Second Nature

September 23, 2024

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How to Write a Tenant Move-Out Letter: Thank You & Reminder + Free Templates

When it's time for a tenant to move out, sending a well-crafted letter can make all the difference in ensuring a smooth transition. Whether you're expressing appreciation for how they’ve cared for the property or simply reminding them of key dates, this communication is an important part of the rental process. Below, you’ll learn what a tenant move-out letter is, why it matters, and how to create one that leaves a positive impression. Note on language: Here at Second Nature, we like to use the term “resident” rather than “tenant” to highlight the human aspect of property management rather than the transactional. However, we’re writing this article in response to a verbatim query from one of our readers, so we wanted to reflect on their choice of language in full respect. What Is a Tenant Move-Out Letter? A tenant move-out letter, also known as a goodbye letter or termination notice, serves as an official notice to remind renters that their lease term is ending soon. Unlike an eviction notice letter, which often involves legal action due to lease violations, a move-out letter is generally more friendly and straightforward. It's a polite way of notifying your tenant about their approaching move-out date and outlining the next steps they should take to leave the property in good condition. Most move-out letters are routine and come at the end of a lease term, so they should maintain a positive tone. After all, your tenant has been living in your property for an extended period of time, and fostering goodwill—even during the process of departure—can leave both parties with a sense of satisfaction and end the current landlord-tenant relationship on a positive note. Why Send a Tenant Move-Out Letter? Sending a move-out letter offers several advantages for both property managers and tenants. Here’s why it’s a good idea: Avoiding confusion: A move-out letter provides clarity, helping both parties avoid any misunderstandings about key details like the move-out date, key return procedures, and cleaning expectations. This simple step can prevent miscommunication that could otherwise escalate into bigger issues down the line. Legal requirements: Depending on your location, a move-out letter may be a legal requirement so be sure to check state and local laws. Ensuring that all notifications are properly documented protects both parties and helps avoid unnecessary disputes. Planning and preparation: By sending a move-out letter, you give tenants enough time to prepare for their move. This allows them to schedule movers, clean the property, and organize move-out logistics, reducing the likelihood of last-minute complications. Final inspection planning: Scheduling the move-out inspection allows both you and the tenant to address any potential concerns before they depart. This process helps ensure that the property is left in good condition and that any necessary repairs or cleaning are handled promptly. Property maintenance: Including instructions in the move-out letter regarding cleaning and maintenance helps ensure that the property is returned in a suitable condition. By making your expectations clear of normal wear and tear, you can reduce the likelihood of damage or uncleanliness. Smooth transitions: A well-structured move-out process allows for efficient scheduling of maintenance issues and repairs after the tenant leaves, minimizing vacancy downtime. This quick turnaround is key to getting the property ready for the next tenant. How Are Move-Out Letters Different from Notices to Vacate? Move-out letters and notices to vacate serve different purposes. A move-out letter is a friendly courtesy reminder of a lease termination, while a formal notice to vacate often involves asking the tenant to leave the property for a specific reason, such as non-payment of rent or a violation of the lease agreement. While both letters involve tenants leaving the property, the tone and intent are very different. A notice to vacate is more formal and may involve legal repercussions if the tenant fails to comply. In contrast, a move-out notice is often seen as a courtesy to ensure that everyone is on the same page regarding the end of the lease. Read more: How to Write a Notice to Vacate Letter to Tenants [with free template] How to Write a Move-Out Letter to a Tenant When writing a move-out letter, keep it professional yet friendly. This is your opportunity to set your move-out expectations clearly while maintaining a positive relationship with your tenant. Also be sure that your letter is free of spelling and grammatical errors! If time allows, you can personalize the letter with a kind message about your experience with the tenant. Here are the essential elements to include in your letter: Date of delivery: Mark the date that the letter is being sent to document when the tenant was notified. Contact information: Make sure your contact details are easy to find so that the tenant can reach out with any questions or concerns. Tenant’s name: Address the tenant by name to make the letter feel personal and respectful. Move-out date: Clearly state the date by which the tenant needs to vacate the property, including their personal belongings. This helps avoid any ambiguity about when they should be out by. Lease agreement details: Reference the title of the lease agreement and the date it was signed to connect the letter back to the original terms agreed upon by both parties. Legal requirements: Include any local or state laws/regulations that pertain to the move-out process, such as the required notice period. Final walkthrough date: Offer a specific date and time for the final inspection of the property. This gives both you and the tenant a chance to address any concerns before they leave. Security deposit information: Provide clear guidelines on how the tenant can ensure they receive their security deposit back. You should also have their forwarding address handy. This might include information about cleaning, repairs, or any other factors that will influence the return of their deposit. Name and signature: End the letter with your name and signature to formalize the communication. Each of these elements is crucial to both providing clear instructions and maintaining a positive tone. How to Write a Thank You and Move-Out Letter Sometimes, property managers like to go the extra mile and include a thank-you note to tenants who have taken good care of the property. This small gesture can help leave a lasting positive impression and foster goodwill, even after the tenant has moved on. Here's a sample letter template: Template: Dear [Tenant Name], Thank you for being a valued tenant at [Property Name] for the past [lease term]. We appreciate you taking good care of the property throughout your tenancy. This letter serves as a reminder that your lease term ends on [move-out date]. We wish you all the best in your new home! Please refer to our previous move-out letter for a detailed breakdown of the move-out process, including final walkthrough scheduling and security deposit return information. Sincerely, [Your Name] Property Manager This letter not only reminds the tenant of the move-out process but also expresses gratitude, leaving a positive final impression. How to Write a Reminder Move-Out Letter to a Tenant A reminder letter serves as a gentle nudge to the tenant, ensuring they’re aware of upcoming deadlines and responsibilities. It's particularly useful if the tenant’s move-out date is approaching quickly, and you want to make sure everything is on track. Here’s a sample template: Template: Dear [Tenant Name], This letter serves as a friendly reminder that your lease term at [Property Name] ends on [move-out date]. We haven't yet received confirmation on your final walkthrough scheduling. To ensure a smooth transition, please contact the property management office at [phone number] or [email address] to schedule your final inspection. A detailed move-out guide outlining cleaning requirements, key return procedures, and security deposit information was previously sent to you. You can also find this information on our website at [link]. We look forward to hearing from you soon to schedule the final walkthrough. Sincerely, [Your Name] Property Manager This type of letter ensures that important details are not overlooked, helping both you and the tenant stay on the same page as move-out day approaches. Final Thoughts Writing a tenant move-out letter is a crucial step in maintaining a positive relationship with your tenants, even as they prepare to leave. By keeping the tone professional yet friendly, and including all necessary details, you can ensure a smooth transition that benefits both parties. If you’re a property manager looking to further improve the resident experience, consider enhancing your offerings with a Resident Benefits Package. You can learn more about these packages and how they can make your rental properties even more appealing at Second Nature

September 20, 2024

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How to Write a Noise Complaint Letter to Tenant + Free Template

Writing a noise complaint letter to a tenant can be one of the more challenging aspects of real estate property management, but it's a necessary step in ensuring a peaceful living environment in and around the rental property. In this blog, we'll discuss: What constitutes a noise complaint? Scenarios in which you may need to send a complaint letter Steps to take before sending a complaint letter Elements to include in the letter (along with a customizable template) How to send the complaint letter effectively What Is a Noise Complaint? Noise disturbances are not always cut and dry. Sure, the neighbor’s dad rock garage band is pretty awful, especially around happy hour, but should it be illegal? Opinions may vary! But fundamentally, a noise complaint happens when sound levels disrupt the peace and comfort of others. These disturbances can range from loud music, parties, or even frequent or loud arguments. Generally, noise complaints are about activities during designated quiet hours, typically late at night or early in the morning. There are general laws governing excessive noise levels. For instance, many local ordinances set limits on acceptable noise levels during specific times. Property owners and managers should familiarize themselves with these laws and ensure they align with any local or state regulations. Consider obtaining legal advice to ensure that you have full clarity on what constitutes a legal noise disturbance. Why You Might Need to Send a Noise Complaint Letter There are several situations where a noise complaint letter might become necessary. Some common examples include: Multiple complaints about loud noises during quiet hours. Specific complaints mentioning a resident by name or address, indicating recurring noise problems. A property manager personally identifies noise disturbances during routine inspections or visits. Today, we’ll address these common scenarios and provide guidance to property managers who may need to send one of these letters to noisy tenants. We’ll also include a customizable sample letter you can use in these cases. Related: Types of Tenant Issues and How to Deal with Them Property Manager Noise Complaint Warning Before drafting and sending a noise complaint letter, it's crucial to investigate the situation thoroughly. Rushing into sending a complaint without proper groundwork can lead to unnecessary conflict and misunderstandings, and create an uncomfortable resident experience. Identifying the source of the problem If complaints have been received from other tenants about the same individual, it's a good starting point to talk to the neighbors to confirm the issue. Evaluate these complaints in detail to gather all the necessary information such as the type of noise disturbance, when they experienced it, and how often these might occur. It might also be helpful to visit the property during reported disturbance times, although this isn't always feasible due to odd hours. Discussing the issue with the offending tenant Before issuing a formal complaint, having a conversation with the tenant can sometimes resolve the issue. Talk to them about the complaint, discuss the incident, and ask them to change this behavior. This serves as a preliminary warning, allowing the tenant to improve their behavior before further action needs to be taken, such as eviction. It also provides an opportunity for face-to-face de-escalation of the issue before proceeding to more formal corrective or legal action. Noise Complaint Warning Letter to Tenant for Noise Violation For first-time violations, issuing a warning letter requesting them to comply with quiet hours is often recommended. This letter should be polite yet firm, indicating that there has been a noise complaint (or even several) and explaining the necessary steps to mitigate future disturbances. Example of a warning letter [Your name] [Your address] [City, state, ZIP code] [Email address] [Date] [Tenant's name] [Tenant's address] [City, State, ZIP cod Dear [Tenant's name], This letter is to inform you that we have received a noise complaint regarding your residence. As per our records, the disturbance occurred on [specific date] during [quiet hours]. We kindly request you to be mindful of the noise levels to ensure a peaceful living environment for all. If the noise issues persist, further action may be taken. We appreciate your cooperation in this matter. Sincerely, [Your Name] What Should the Noise Complaint Letter Include? A well-structured noise complaint letter should contain the following elements: Notification of complaint: Explain that one or more noise complaints have occurred, and that this issue needs to be addressed. Further details: Back up your claims by providing the total number of complaints that you’ve received, and the timeframe they occurred. If the exact information isn’t available, provide some general timelines (such as “late Wednesday evening”). Legal information: If there are applicable local laws or noise ordinances, share that with the tenant, as well as how it applies to their actions. Lease agreement reference: Reference the rental agreement if it mentions noise-related laws and ordinances in detail and the consequences of not complying with them. Proposed solutions: Suggest ways to keep noises at a reasonable level and to avoid loud activities during designated quiet hours. Timeframe for compliance: Give the tenant a specific period of time to reduce their noise levels, and inform them that you’ll follow up with them. Consequences of non-compliance: Clearly state the potential consequences, such as eviction proceedings, if the noise disturbance continues. Noise Complaint Letter to Tenant Template Here’s a customizable letter template for a noise complaint: [Your name] [Your address] [City, State, ZIP code] [Phone number] [Email address] [Date] [Tenant's name] [Tenant's address] [City, State, ZIP code] Dear [Tenant's name], This letter is to inform you that we have received several noise complaints regarding your unit. The disturbances have been reported to occur during [specific dates and times]. This is in violation of the noise regulations stated in your lease agreement and local noise ordinances. We request that you reduce noise levels, especially during quiet hours, which are from [start time] to [end time]. Please take immediate action to remedy this situation. We will check in again after [specific period] to ensure compliance. If the noise disturbances continue, we may have to take further action, which could include eviction. Thank you for your understanding and cooperation. Sincerely, [Your name] How to Send the Complaint Letter to the Tenant The complaint letter can be sent via email or delivered as a hard copy. Make sure you retain a copy for your records, noting the date and method of delivery. Final Thoughts Handling noise complaints efficiently is crucial for maintaining a peaceful living environment. By following the steps outlined above and using the provided template, your property management company can address noise issues effectively and foster a more harmonious community for all renters. Learn how you can further improve the resident experience, with Second Nature’s Resident Benefits Package.

September 20, 2024

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How to Write a Tenant Welcome Letter + Free Template

When a new resident moves into your rental property, a positive first impression is the key to setting the tone for your future relationship with them. One straightforward way to do this is through a warm, well-written tenant welcome letter. In today’s post, we’ll examine the importance of this welcome letter in detail and what you should include. We’ll also provide a free tenant welcome letter template to help you get started. Note on language: At Second Nature, we prefer to say “resident” rather than “tenant,” but will use the terms interchangeably since many property managers are using long-standing document management conventions to leverage these checklists. What Is a Tenant Welcome Letter? A tenant welcome letter is a document sent by a real estate property manager to new residents prior to the move-in date. Its purpose is to: Provide important information about the property Outline expectations related to resident responsibilities Make the new residents feel both welcomed and informed Create a positive relationship between the resident and property manager The letter will typically include details about move-in procedures, contact information, property rules, and any neighborhood amenities. (Don’t worry–we’ll discuss this further in the blog.) Why Should You Send a Tenant Welcome Letter? Beyond just the all-important positive first impression, sending a tenant welcome letter has several other benefits: Highlights your brand: For property management companies, new tenants are an opportunity to showcase your brand. A well-crafted welcome letter demonstrates professionalism and shows you care about the comfort and satisfaction of their tenancy. Provides move-in instructions: Clear instructions about the move-in day (including any specific procedures or requirements) will help ease the often stressful and overwhelming process of moving into a new home. Eases the transition: By providing detailed information about utilities, local amenities, and property rules – as well as anticipating any questions your residents might have, you help them feel at home more quickly. When to Send a Tenant Welcome Letter The best time to send a new tenant their welcome letter is after both parties (the resident and property manager) have signed the lease agreement but before the resident’s move-in day. Sending the letter in between this period gives the residents enough time to review the information in detail and ask any questions before they officially move in. This is also an ideal time to inspect the property and schedule any necessary repairs before move-in day. Related: Property Management Rental Inspection Checklist If you don’t have a tenant move-in checklist, we have you covered. Check out our Tenant Move-In Checklist for a free template you can customize. What to Include in a Tenant Welcome Letter Start the relationship on a positive note by focusing on the resident’s experience. A welcome letter to tenants from property managers is pivotal to their tenancy and should include helpful information that addresses common questions or issues that may come up during the move-in process, and acts as a good reference point, as well. Property manager’s contact information Provide your contact information, including your phone number and email address, so residents know how to reach out to you for any questions or issues. Be sure to mention what days of the week and hours you’re available, and additional contacts they can reach out to if you’re not free. Details about move-in day Include specific instructions for move-in day, such as any loading zone rules and areas, moving truck parking information, or designated move-in times to make their move-in experience more convenient. Move-in checklist Offer a list of tasks the resident needs to complete before and after moving in, such as setting up utilities and obtaining renters insurance. To make their lives easier, send them a list of providers and their contact information. We’ve got you covered with a tenant move-in checklist you can modify to fit your needs. Local utilities As mentioned, within the move-in checklist, you’ll want to provide information on how to set up local utilities such as electric, gas, cable or internet, water, and sewer services. Share details about how to pay for them, as well. This should include information about local utility companies and providers to save them time. If any cost is covered by the property management company, be sure to mention it. Lucky for property managers, Second Nature offers move-in concierge services as part of their Resident Benefits Package to provide ease and convenience to residents. Learn more about our move-in concierge services. Property walkthrough Schedule a time and date for the property walkthrough, ensuring that all parties (residents and property manager) are aware of the current condition of the property before move-in day. Related: Rental Inspection Checklist Key collection details Inform the resident where they can go to pick up the keys to their new home, as well as when–what days of the week and during your business hours. If they can’t pick up the keys during your preferred time, provide a contingency plan for key pickup. Renters insurance Remind residents to provide proof of renters insurance (if it’s required), and be sure to link to specific resources that explain the benefits of renters insurance. Second Nature offers renters insurance as part of our Resident Benefits Package. Learn more about Second Nature’s renters insurance. Rent payment Explain when rent payments are due, as well the full rent amount is on a monthly basis and the payment methods available (such as an online portal). Share information about what late fees are if rent isn’t paid on time. Maintenance issues Outline the procedure for maintenance requests and provide emergency contact information for plumbing, HVAC, or electrical problems. See also: Preventive Maintenance Checklist for Property Management. Trash collection and recycling Provide information on where to dispose of trash and recycling, as well as collection days and any special disposal instructions, such as for bulk items. Parking information Explain parking arrangements for tenants, as well as any of their guests. This could include information about permits or designated spots. Neighborhood information Share information about local grocery stores, parks, gas stations, public transportation, and local attractions to help residents get familiar with their new neighborhood. Overall tenant responsibilities Reiterate key responsibilities, such as any necessary minor repairs and upkeep, to ensure residents are aware of their duties. (These will already have been outlined in the rental agreement, but it doesn’t hurt to reference them here.) Property rules Summarize the property rules and regulations, and be sure to refer to the lease agreement for detailed descriptions. Tenant Welcome Letter Template Below is a tenant welcome letter example you can use or customize to suit your unique needs: [Property Manager's Name] [Property Management Company] [Address] [City, State, ZIP Code] [Phone Number] [Email Address] [Date] Dear [Tenant's Name], Welcome to [Property Name/Address]! We are excited to have you as a new resident. To help you settle in, we’ve put together this welcome letter with important information and resources. Move-In Day Details: Move-in Date: [Date] Move-in Time: [Time] Loading Zone Rules: [Details] Contact Information: Property Manager: [Name] Property Management Company: [Name] Phone: [Phone Number] Email: [Email Address] Key Pick-Up: Date and Time: [Date and Time] Location: [Location] Utility Set-Up: Electric: [Provider Contact Information] Gas: [Provider Contact Information] Cable/Internet: [Provider Contact Information] Water: [Provider Contact Information] Sewer: [Provider Contact Information] Rent Payment: Monthly Rent: [Amount] Due Date: [Due Date] Payment Method: [Online Portal/Other] Maintenance Issues: Report Issues: [How to Report] Emergency Contacts: [Contact Information] Trash and Recycling: Location: [Details] Collection Days: [Days] Parking Information: Tenant Parking: [Details] Guest Parking: [Details] Neighborhood Information: Grocery Stores: [Details] Parks: [Details] Public Transportation: [Details] Local Attractions: [Details] Tenant Responsibilities: [Responsibilities] Property Rules: [Summary of Rules] We hope this information helps you settle in comfortably. If you have any questions or need assistance, please don't hesitate to contact us. Best regards, [Property Manager's Name] [Property Management Company] How to Send a Tenant Welcome Letter Email is the most efficient method of sharing the welcome letter since it ensures prompt delivery and allows residents to reference the information easily. It’s also good practice to provide a printed copy of the welcome letter upon move-in. You can simply leave it on the kitchen counter or another visible spot in their new home. Final Thoughts A tenant welcome letter is a simple yet powerful mechanism for enhancing the resident experience, fostering a positive relationship, and showcasing your brand. Ultimately, by providing essential information and a warm welcome, you are setting the stage for a smooth move-in process and a happy residency. For more ways to improve the resident experience, check out our Resident Benefits Package.

September 20, 2024

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How to Help Residents Use Their Identity Protection Services During a Data Breach

With personal data becoming increasingly valuable to bad actors, data breaches are unfortunately becoming a regular occurrence. The situation is particularly alarming at a time when cybercriminals are arming themselves with more sophisticated technology. Exhibit A is the recent theft of personal records belonging to 2.9 billion people from National Public Data. We’ll get into the details in a moment, but first let’s note that property managers are in a unique position to help residents respond to breaches, particularly when residents’ confidential information may have been exposed. As a property manager, knowing how to guide your residents through using identity protection services can make a big difference in minimizing the damage resulting from the breach. In today’s blog, we will cover: What a data breach is and how it affects property managers and their residents Steps to take to determine if your property management company and your residents are affected Key actions to help residents protect themselves after a breach How preventative measures, including identity protection services like Aura, can help safeguard personal information in the future About the Data Breach Data breaches occur when unauthorized persons or organizations gain access to sensitive personal information. A recent breach involving the hacking group USDoD targeted National Public Data, exposing the personal records of 2.9 billion people. This massive breach serves as a wake-up call for property managers and property management companies, as sensitive information such as names, addresses, contact information, Social Security numbers, driver’s license numbers, passport numbers, and financial records can be used by criminals to commit identity theft, fraud, and other crimes. Even more alarming, stolen data can include biometric data, healthcare and medical information, and financial account information (such as debit card numbers and bank account numbers). In short, any and all computerized data comprising of all types of personal information can be breached. The costs of data security breaches associated with personally identifiable information add up pretty quickly. In fact, recent years have seen a spike in the costs associated with cybercrime, likely because more and more organizations and financial institutions are opting to conduct high-value business transactions online (see image below). Unfortunately, despite consumer protection and data privacy legislation, civil penalties, and law enforcement’s best efforts, criminal investigations are often hampered by jurisdictional issues, as cybercriminals don’t respect international borders! For property managers, this type of cybersecurity breach is especially concerning because of the vast amount of personal information they collect and store about their residents. The thing is, data breaches like this don’t just affect the residents directly. They can also lead to a breakdown of trust between residents and property managers. Being prepared to act quickly and effectively in the wake of a breach is essential to mitigating the damage and helping residents protect their identities. Are You Affected by a Data Breach? If you manage properties that involve storing confidential resident information, it’s crucial to determine whether your company was affected by a breach. Here’s how you can figure that out: Confirm details about the data breach Start by verifying whether your property management company was impacted by unauthorized access to information. This means reaching out to the breached organization directly (in this case, National Public Data) for more information and confirming whether any of your residents are among the affected individuals. Beware of phishing attempts. Cybercriminals might try to trick you into believing your company has been affected when it hasn’t. Scammers may pose as the breached organization, sending fake notifications via email or phone. Always double-check the validity of any such communications. These often include unfamiliar email addresses, spelling and grammatical errors, and links to unknown URLs. In some cases, residents may contact you directly after receiving notifications about the breach. Make sure you have accurate, verified information to provide them, ensuring they don’t fall prey to scammers who may exploit the situation further. Above all, stay calm and be patient when communicating with residents. Determine what information was stolen Once you’ve confirmed a breach, the next step is figuring out what type of information was stolen. Was it just email addresses, telephone numbers, and names, or were more sensitive details exposed, like Social Security numbers, identification card numbers, credit card information, health information, or home addresses? The more you know about the nature of the breach, the better you can help your residents respond appropriately. For example, if a breach only involved email addresses, the threat might be lower than if Social Security numbers were leaked. However, if highly sensitive data is exposed, residents will need to take more substantial steps to protect themselves. What You Can Do After a Data Breach Once you’ve received a security breach notification indicating that your property management company and residents have been affected by a breach, you’ll need to notify your residents immediately and offer them guidance on what to do next. Here are the essential information security steps you can recommend: Change passwords Encourage residents to change all passwords and personal identification numbers (PINs) associated with their accounts, especially if they use the same credentials across multiple platforms. It’s also a good idea to recommend a password manager to help them create and manage secure passwords. However, be cautious in suggesting a password manager—only recommend ones with a solid track record and no history of breaches themselves. Additionally, advise residents to enable two-factor authentication (2FA) on all accounts that offer it. This extra layer of security requires a second form of identification (like a text message or authentication app) that provides an access code in addition to a password, making it more difficult for hackers to access their accounts. Remove personal information from data brokers Data brokers are companies that collect and sell personal information and data elements, often without individuals being fully aware of it. This information can include everything from names and addresses to purchasing habits and online behaviors. Unfortunately, during a data breach, the information collected by these brokers can be exploited by hackers, making it easier for criminals to commit unauthorized acquisition of data – and subsequently, fraud. Encourage residents to take the next step of removing their personal information from these brokers' databases. Several online services allow individuals to opt out of data broker lists, but it often requires a proactive approach. Residents may need to contact these brokers directly or use opt-out services such as OptOutPrescreen.com or Do Not Call lists to ensure their data is no longer being distributed. While this process can be time-consuming, it adds another layer of protection, reducing the amount of personal information circulating online and making it harder for hackers to misuse. Contact credit bureaus to freeze or lock your credit Another important step residents should take is freezing or locking their credit. This prevents scammers from opening new accounts in their names. Freezing credit involves contacting the three major credit monitoring services—Experian, Equifax, and TransUnion—and requesting that their credit be locked. This way, even if a hacker has stolen their personal information, they won’t be able to take out loans or apply for credit cards using that information. Additionally, residents can initiate a fraud alert with credit reporting agencies, to warn creditors that their information may have been stolen. Delete old accounts Another important step in minimizing the risk of identity theft is deleting old, unused online accounts. These accounts, often forgotten, can contain sensitive personal information that hackers can exploit in the event of a data breach. Residents may have accounts from years ago with shopping sites, social media platforms, or other services that still store their data. Encourage residents to review and close any accounts they don’t use anymore. They can start by checking for accounts tied to old email addresses, searching for accounts that use their email or phone number, or even using tools like Mine, which can help locate inactive accounts. By eliminating these forgotten accounts, residents reduce the number of potential entry points for hackers and strengthen their overall security. It’s a simple but highly effective way to protect personal data and limit exposure to future breaches. Monitor active accounts Remind residents to closely monitor their financial and online accounts for any signs of suspicious activity. This includes regularly checking credit reports, bank statements, and any unfamiliar credit inquiries or new accounts. Any strange emails, phone calls, or texts asking for sensitive information should be treated with caution. If any fraudulent activity is detected, advise residents to file an identity theft report with the Federal Trade Commission (FTC) through IdentityTheft.gov. This will allow them to take immediate action to stop any further damage to their personal information. What to Do to Prevent Data Breaches While dealing with a breach is stressful, there are steps that both property managers and residents can take to reduce the chances of a breach happening again. One of the most effective ways to do this is by using a trusted identity protection service like Aura, in addition to a Resident Benefits Package. Aura is Second Nature’s partner in providing residents with comprehensive protection. Aura identity monitoring Aura offers an extensive suite of identity protection services that can help property managers and residents stay ahead of potential breaches. Some of the services provided by Aura include: Financial fraud protection: This monitors residents’ financial activity for any signs of fraudulent transactions or unusual changes in their accounts. Identity theft protection: Aura scans a variety of sources, including the dark web, for compromised personal information, alerting residents if their data is found. Antivirus and VPN: These tools help keep residents’ devices safe from viruses, malware, and other types of cyberattacks. Parental controls and scam call protection: This is particularly useful for residents with families, offering extra layers of security for children and elderly relatives who may be more susceptible to scams. By offering a service like Aura as part of your property management’s Resident Benefits Package, you can give your residents the protection they need to safeguard their identities and personal information. Final Thoughts Helping residents protect their personal information is a responsibility that property managers must take seriously, especially in the wake of recent data breaches. Aura, a trusted identity protection service, offers a solution to the growing problem of identity theft, providing both residents and property managers with peace of mind. For property managers, incorporating Aura into your Resident Benefits Package is a practical and effective way to improve the overall resident experience while ensuring that their data is protected. Aura offers identity theft insurance of up to $1,000,000, making it an attractive option for residents looking to protect themselves from fraud. Its 14-day free trial is an easy way to see if the service is right for you. By being proactive and offering these services, you not only reduce the potential damage of a breach but also build stronger relationships with your residents, giving them the tools they need to safeguard their information for the long term. Learn more about how you can improve the resident experience through Second Nature’s Resident Benefits Package.

September 20, 2024

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How to Write a Security Deposit Return Letter + Free Template

Returning a security deposit is one of the final steps in a tenancy relationship, and it's important to handle it properly. Indeed, knowing how to write a security deposit return letter can help you close things out smoothly and professionally. Today we’re presenting a practical guide on crafting these letters, complete with examples and essential details to keep in mind. Important note: While this guide offers helpful general advice, it’s vital to check local and state laws to ensure compliance with specific regulations in your area. Note on language: Here at Second Nature, we prefer the term “residents” rather than “renters” or “tenants,” as that emphasizes the human element over the transactional. But because formal property management documentation often makes exclusive reference to “tenants,” we’ll favor that term in today’s post. What Is a Security Deposit Return Letter? A security deposit return letter serves as formal documentation that details the return of the security deposit to the resident after they move out. It's more than just a formality – this letter can clarify the amount being returned, explain any deductions, and provide transparency to avoid deposit disputes. When done correctly, this letter can help you avoid potential claims against the deposit. It’s also a chance to demonstrate professionalism and fairness, which can lead to positive relationships and, potentially, good word-of-mouth in the future. Here are a few things to keep in mind when crafting a security deposit return letter: State laws: Local laws dictate the time frame in which a tenant’s security deposit must be returned, what deductions are allowed, and any other related requirements. Preventing disputes: A well-crafted letter can help prevent claims against you by clearly outlining the return process and any deductions made. Insurance considerations: In some cases, following the correct procedures for returning a deposit can also help you avoid issues with any insurance policies you may have in place in relation to security deposits. Related: What is Security Deposit Insurance: Pros, Cons, and Best Practices? Common Questions About Security Deposit Returns Handling security deposits can be tricky, and questions often arise. Below are a few common concerns landlords and property managers face. Keep in mind that local and state laws vary, so always consult the relevant regulations. What can a landlord or property manager deduct? You can generally deduct unpaid rent, repairs for damages beyond normal wear and tear, and costs for cleaning if the unit is left in poor condition. However, these deductions must be reasonable, and you should always provide documentation, such as receipts or photos, to support them. What is considered normal wear and tear? Normal wear and tear typically includes things like minor scuffs on walls, light carpet wear, or small nail holes from hanging pictures. Essentially, it refers to the natural aging of a property during normal use. Anything beyond this—like large stains, broken fixtures, or damage from pets—may warrant deductions from the security deposit. When should you return the security deposit interest? In some states, landlords are required to pay accrued interest on the security deposit. If this applies to you, check the relevant deadlines and ensure you include any owed interest along with the returned deposit. You’ll need to itemize this in your letter as well. What if you don’t have a forwarding address? If the resident hasn't provided a forwarding address, it’s still your responsibility to attempt to return the deposit. Try reaching out through any available means, such as email or phone. If all else fails, you may need to follow state-specific protocols, such as holding the deposit for a set period. Learn more: Security Deposit Alternatives for Property Managers and Residents What to Include in a Security Deposit Letter A well-organized letter should cover all the necessary information, presented in a clear and concise manner. Here’s a breakdown of the key elements you’ll want to include: Landlord's name and contact information: Your full name (or the name of your property management company) and how you can be reached. Tenant’s name and contact information: Make sure to address the letter to the correct person in relation to the correct property address. Date of letter: This is important for record-keeping, as well, and signals what day the notification was shared. Lease details relevant to the deposit: Reference the deposit or lease agreement that applies (you can also provide a copy of the relevant agreement). Original deposit amount: Clearly state the original amount of the security deposit. Itemized breakdown of deductions: If any deductions were made, list them here with the corresponding amounts and explanations. Receipts or documentation for deductions: Include copies of cleaning, repair, or maintenance receipts as proof of expenses. Remaining balance: Indicate the amount being returned after deductions. Deposit details: Mention how and when the deposit will be returned (e.g., check, direct deposit). Signature: Ensure that the letter is signed by you or an authorized representative from your property management company. How to Write a Landlord Security Deposit Letter Security deposit letters can take different forms depending on the situation. Here’s a brief overview of the most common types and when to use them: Security deposit letter for full refund: If you’re returning the full amount of the deposit without any deductions, this is the easiest letter to write. A straightforward explanation, along with the original deposit amount, is all that’s needed. Security deposit letter for partial refund: In cases where part of the security deposit is being withheld for cleaning, repairs, or unpaid rent, your letter will need to include an itemized list of these deductions. Be clear and provide any supporting documentation. Security deposit letter for no refund: If the entire deposit is being withheld, your letter should carefully explain why. Be sure to include receipts and a detailed breakdown of the costs involved, as this can help prevent disputes. Security deposit letter with request for payment: If the security deposit isn’t enough to cover the damages or unpaid rent, you may need to request additional payment. This letter should include a full explanation of the costs and a deadline for payment. Below are sample letters for these scenarios: Sample letter: Security deposit letter for full refund [Your Name] [Your Address] [Date] Dear [Resident’s Name], This letter serves as confirmation that your security deposit of $[Amount] is being returned in full. Thank you for leaving the rental property in good condition. Please find the enclosed check for the total amount of your deposit. Sincerely, [Your Name] [Your Contact Information] Sample letter: Security deposit letter for partial refund [Your Name] [Your Address] [Date] Dear [Resident’s Name], After inspecting the property, we’ve determined that $[Amount] will be deducted from your security deposit for the following reasons: [Itemized list of deductions and costs] Please find the enclosed check for the remaining balance of $[Remaining Amount]. Receipts for the deducted amounts are attached for your records. Sincerely, [Your Name] [Your Contact Information] Sample letter: Security deposit letter for no refund [Your Name] [Your Address] [Date] Dear [Resident’s Name], After inspecting the property, we’ve determined that the entire security deposit of $[Amount] will be used to cover the following costs: [Itemized list of deductions and costs] Unfortunately, no balance remains to be refunded. Receipts for the deducted amounts are attached for your records. Sincerely, [Your Name] [Your Contact Information] Sample letter: Security deposit letter with request for payment [Your Name] [Your Address] [Date] Dear [Resident’s Name], After inspecting the property, we’ve determined that the cost of repairs and unpaid rent exceeds your security deposit of $[Amount]. The remaining balance of $[Balance Due] is owed to cover the following: [Itemized list of deductions and costs] Please remit payment by [Due Date]. Receipts for the deducted amounts are attached for your records. Sincerely, [Your Name] [Your Contact Information] How to Send a Tenant a Security Deposit Letter The best way to send a security deposit return letter is by certified mail with a return receipt. This ensures that there’s proof of delivery, which can protect you in case of disputes. Some states may also allow you to send the letter electronically, so check local regulations to confirm the appropriate method. Mistakes to Avoid When Writing a Security Deposit Return Letter When writing a security deposit return letter, be mindful of some of the common pitfalls below. Failure to meet the deadline Every state has specific rules about how long you have to return a deposit, broadly ranging from 10 days after inspection (as in the case of Montana) to 60 days (West Virginia and other states). Missing the deadline can result in penalties. Not providing enough detail If you’re making deductions, be sure to include detailed explanations and supporting documentation, as specified earlier. Neglecting to include interest In states where interest on security deposits is required, make sure you calculate and include it in the return. It’s best to document this early on to save yourself a headache down the road. Not retaining a copy Always keep a copy of the letter and any related documents for your records. It helps to also back up electronic documents, as well, but be sure to keep original copies of everything first. Final Thoughts Handling security deposit returns correctly can help you avoid disputes and maintain good relationships with residents, even after they’ve moved out. By following these guidelines and customizing your letters to fit the situation, you’ll be able to navigate this process smoothly and professionally, while ensuring a positive experience for all parties. For more tips on improving the resident experience, check out Second Nature’s Resident Benefits Package.

September 19, 2024

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How to Write a Pet Violation Letter to Tenants + Free Template

Dealing with pets in rental properties can be tricky. While our furry friends bring comfort and joy to many, they can also cause issues for property managers as well as property owners. That’s why it's essential to address the situation professionally and promptly when a tenant brings in an unauthorized pet. In this blog, we’ll discuss: What a pet violation letter to the tenant is The process of confirming an unauthorized pet lease violation How to write a pet violation letter to the tenant And bonus: we’ll share a free pet violation letter to tenant template you can customize to help you through the process. Note on Language: At Second Nature, we like to say “resident” rather than “tenant,” but will use the terms interchangeably since many property managers have official terminology around these templates. What Is a Pet Violation Letter to Tenant? A pet violation letter is a formal notice sent to tenants when they’ve violated the terms of their lease agreement by having an unauthorized pet. This type of letter serves to notify the pet owner of the violation and the consequences of not resolving it. The primary goal is to ensure compliance with the lease while maintaining a respectful and professional relationship with the tenant. The letter is typically sent after a property manager has confirmed that a tenant is keeping an unauthorized pet in their rental unit. This can be an issue when a lease explicitly prohibits pets, or when a pet does not meet specific criteria outlined in the lease, such as size or breed restrictions. (Note that while dog breeds often associated with aggressive behavior include pit bulls, dobermans, German shepherds, and others - actual breed restrictions vary by state). Put simply, unauthorized pets are animals kept by tenants without the property manager's consent. This issue can arise for a variety of reasons, including the tenant's desire to avoid pet deposits, fees, or restrictions, or simply because the tenant wasn't aware of the rules. Regardless of the cause, it’s important to address the situation before it escalates. Property managers might enforce a no-pets rule for several reasons, including protecting the property from potential damage, minimizing noise, or reducing allergens that might affect future tenants. There are also legal considerations to keep in mind, especially regarding service animals and emotional support animals (ESA), which we’ll cover later in this post. Pet violation in the lease agreement A rental agreement often includes a pet policy outlining what is and isn’t allowed. Some common restrictions might include weight limits, breed restrictions, and behavioral requirements. For instance, lease terms might allow pets under 25 pounds or prohibit aggressive breeds. There could also be rules about how many pets are allowed or requirements for pet insurance. Property managers have the right to enforce no-pets policies, and this is generally supported by law. However, enforcement must be consistent and in line with the lease agreement. If a tenant violates the pet policy, the property manager can request that the pet be removed or even take legal action if the tenant refuses to comply. An important caveat is that you need to be familiar with state laws as well as federal laws regarding pets. Service animals, for example, are protected under the Americans with Disabilities Act (ADA). This means that even if your lease has a no-pets policy, you must accommodate service animals without charging additional fees. Emotional support animals are a bit different from service animals – they’re protected under the Fair Housing Act, but property managers are allowed to ask for proper documentation. As a disclaimer, we urge you to obtain legal advice to ensure you are not stepping on any local regulations, as this blog post does not constitute formal legal guidance! Related: If you do offer pets in your rental property, check out our blog - Pet Policy for Renters: Best Practices for Property Managers to find out more. Examples of unauthorized pet scenarios Unauthorized pets can cause a range of issues, from minor inconveniences to significant property damage. Here are a few examples of common scenarios: Odors: Pets, particularly dogs and cats, can leave behind strong odors that linger in a rental unit long after they’re gone. These smells can be tough to eliminate and may require professional cleaning. Fur: Pet fur can accumulate on carpets, furniture, and air ducts, leading to additional cleaning expenses. Damage: Pets can cause visible damage to a rental unit. Dogs might chew up carpet or scratch wood floors, while cats could damage walls or furniture. It’s important to document these issues when addressing unauthorized pets. Clear evidence will help you communicate the problem to the tenant effectively, as well as help you deal with any ramifications around security deposits. Exceptions to the rule Not all pets can be treated the same under the law. Service animals and ESAs have special protections that property managers must respect. A tenant with a disability is entitled to keep a service animal, even if the property has a no-pets policy. These animals are not considered pets but rather essential aids for their owners. Emotional support animals are slightly different. While they don’t have the same legal status as service animals, property managers must still make reasonable accommodations under the Fair Housing Act. If a tenant provides a valid ESA letter from a licensed mental health professional, the property manager must allow the animal unless it poses a direct threat to the safety of others or causes significant property damage. When presented with an ESA letter, be careful not to overstep privacy laws when verifying its legitimacy. A respectful approach is key to maintaining a good relationship with the tenant while upholding the property’s rules. Related: Pet Screening 101: How Top Property Managers Do It Confirming an Unauthorized Pet Lease Violation Before sending out a pet violation letter, it’s essential to confirm that the tenant is actually in violation of the lease agreement. This might involve observing the pet directly, collecting evidence from neighbors, or discovering signs of a pet in the unit, such as fur or odors. Once you have confirmed the violation, check the lease to ensure the tenant is aware of the policy they’ve breached. When addressing unauthorized pets, start by communicating clearly with the tenant. Explain the violation and give them an opportunity to correct the issue. In some cases, a simple conversation can resolve the problem without the need for a formal cure or quit notice. If the tenant refuses to comply, you may need to take further action, such as issuing a formal pet violation letter or, in extreme cases, beginning the eviction process. Writing a Pet Violation Letter to the Tenant When crafting a pet violation notice, clarity and professionalism are crucial. Here are the key elements that should be included: Tenant’s information: Start with the tenant’s name, address, and the date of the letter. Violation description: Clearly state the violation, including the specific pet policy they’ve breached. Mention the lease agreement and the relevant clauses. Evidence: Include any evidence you’ve gathered, such as photos or reports from neighbors. Resolution options: Outline what the tenant needs to do to resolve the issue, whether that means removing the pet or paying additional fees. Deadline: Provide a deadline for compliance. This gives the tenant a clear timeframe to address the violation. Consequences: Explain the consequences of failing to comply, such as fines or legal action. Contact information: Include your contact information for any questions or concerns. Here’s a template to guide you through the process. Pet Violation Letter to Tenant Template [Your Name] [Your Address] [City, State, ZIP Code] [Phone Number] [Email Address] [Date] [Tenant’s Name] [Tenant’s Address] [City, State, ZIP Code] Dear [Tenant’s Name], This letter is to inform you that we have discovered a violation of your lease agreement regarding pets. Our records indicate that you currently have an unauthorized [type of pet] in your rental unit at [property address]. According to your lease, pets are not permitted without prior approval and proper documentation. We have attached evidence of this violation, including [brief description of evidence]. Please review your lease agreement, specifically [mention relevant section], which outlines our pet policy. To resolve this issue, we request that you [describe resolution, e.g., remove the pet from the premises or provide the necessary documentation]. Please comply with this request by [insert deadline], or further action may be taken, including fines or legal proceedings. If you have any questions or would like to discuss this matter further, please do not hesitate to contact us at [phone number or email]. We appreciate your prompt attention to this matter and hope to resolve it as soon as possible. Sincerely, [Your Name] [Title] [Company Name] If this is the first violation, a warning letter may suffice and can leave space for a humane and respectful resolution. In this case, follow up with a check-in after a suitable period. If the tenant has failed to comply, follow up with a more formal notice and be prepared to escalate the situation as needed, up to and including an eviction notice. Final Thoughts Managing a rental property comes with many responsibilities, and handling unauthorized pets is just one of them. By staying on top of these issues and communicating clearly with tenants, you can protect your property while fostering a positive tenancy experience for the resident. For more tips on improving the resident experience, learn about Second Nature’s Resident Benefits Package.

September 19, 2024

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Tenant Screening Checklist: Free Template, Printable PDF, and Form Example

When it comes to renting out a property, selecting the right tenant to take up residence can make all the difference in your experience as a property manager. While this might seem like a simple process at first glance, tenant screening is a multi-step journey that can save you from a host of headaches, when done correctly. That’s why developing a checklist to thoroughly address the full range of tenant screening considerations can streamline the process for everyone involved. Note on language: Here at Second Nature, we prefer the term “resident” rather than “tenant,” as that emphasizes the human element over the transactional. But because legacy property management systems and documentation often make exclusive reference to “tenants,” we’ll favor that term in today’s post. What Is a Tenant Screening Checklist? At its core, a tenant screening checklist is simply a tool designed to help property managers vet potential renters. It's a systematic way to ensure that you're gathering all the information required to make an informed decision about who will be living on the rental property you’re responsible for. The checklist includes a range of steps, from gathering contact information and employment details to running background and credit checks. The goal is to cover your bases so that when you hand over the keys, you feel confident that the person moving in will be a good fit for your property. Some of the typical components of a tenant screening checklist include: Rental application: This is where prospective renters provide their contact information, employment history, rental history, and more. Credit report: A detailed credit check gives you a glimpse into how financially responsible the applicant is. Background check: Criminal history is another factor that can play a significant role in your decision-making process. Reference checks: Talking to previous property managers, landlords, or employers can provide insight into how reliable the applicant is. Employment verification: Verifying that the applicant is gainfully employed and can afford the rent is crucial. Why you should use a tenant screening checklist A tenant screening checklist is more than just a series of steps to follow – it's a protective measure for your property and investment. Here's why it matters: For property managers: It ensures consistency. Every applicant is subjected to the same process, which not only helps you find the best fit for your rental property, but also legally protects you by showing that you treat all applicants equally. For potential residents: It fosters trust. Prospective renters know that if they're accepted, they earned their spot fairly, based on the same criteria as everyone else who applied for the rental property. This can create a stronger property manager-resident relationship from the outset. By sticking to a checklist, you avoid oversight or bias, and ensure that the process is transparent and fair. What property managers should know As you implement your tenant screening process, there are a few key areas that require special attention. First, familiarize yourself with the Fair Housing Act. This federal law prohibits discrimination in housing-related activities based on race, color, national origin, religion, sex, family status, or disability. Violations of this law can lead to severe legal consequences, so it's essential to understand and comply with all its provisions. Privacy is another critical consideration. The information you gather during tenant screening is sensitive and should be treated with the utmost care. Personal details like social security numbers, credit reports, and employment verification should be kept confidential to prevent identity theft and other security breaches. Consent is also vital. Make sure you obtain written permission before running background or credit checks on applicants. Not only is this a legal requirement, but it also helps build trust with potential residents by showing that you respect their privacy. Learn more: Your Guide to Property Management Laws, Regulations, & Rules How to Properly Screen Prospective Tenants There are several essential steps to a thorough tenant screening process. We'll walk through each of them in detail, but note that meeting the tenant in person, or connecting with them via phone or email, can also be helpful in assessing their suitability. Importantly, we’ll also highlight the contents of the rental application, which is crucial for gathering essential details like contact information, employment history, and rental history. It’s also where you’ll obtain permission to run background checks and credit reports, a legal requirement before proceeding with these evaluations. Now let’s take a closer look at each element of a thorough tenant screening process: Rental application The rental application is the first step in gathering essential details about a prospective resident. This form typically includes their full name, contact information, employment history, and rental history. Additionally, you may want to request a photo ID as part of this step. The rental application is also where you should ask for permission to run background and credit checks. Without consent, you're legally prohibited from conducting these checks, so this step is crucial. Income and employment verification Once you've received the rental application, verifying the applicant's employment and income is the next logical step. Pay stubs, employment verification letters, or a quick call to the employer can confirm that the applicant is both employed and earning enough to comfortably afford the rent. It’s essential to establish whether the applicant has a stable job that’ll allow them to meet their financial obligations. Consistency in employment is often a good indicator of a responsible resident. Credit check and credit report A credit check provides insight into an applicant's financial habits. Are they consistently paying their bills on time, or do they have a history of missed payments? While no one is perfect, this step can help you gauge the likelihood of timely rent payments. Before running a credit check, make sure that the applicant is aware and has provided written consent. Background check A background check can reveal any criminal history that might affect your decision to rent to a particular individual. It’s not just about finding out if someone has a criminal record – it’s about understanding the nature of any incidents and whether they present a risk to the property or the community. While it’s essential to take this information into account, it’s also important to comply with state and federal laws that govern how criminal history can be used in housing decisions. Rental history Checking an applicant's rental history is another key step in the screening process. Contacting previous property managers or landlords can provide a wealth of information, from whether rent was paid on time to how well the applicant maintained the property. Public eviction records can also give you insight into whether the individual has a history of problems with previous rentals. Reference checks Requesting references from previous rental or employment experiences can give you further insight into an applicant's character and reliability. Personal references can be helpful, but professional references tend to provide more objective feedback. Pet screening If your property allows pets, it's important to include a pet screening process as part of your checklist. This can involve gathering information about the type of pet, breed, and size, as well as providing an opportunity to review any rules or restrictions you might have regarding pets on your property. For a more in-depth look at the process of screening for the ideal tenant, check out our blog: How to Screen Potential Tenants: Tips for Property Managers. Next Step: How to Evaluate Applicants Once you've gathered all the information from your checklist, it's time to evaluate your applicants. Look for any red flags that might indicate future issues, such as a history of evictions, inconsistent employment, or a poor credit score. At this stage, you might also want to conduct an interview with your top candidates to ask any final questions and clarify details. This conversation can reveal important information that didn't come up during the formal application process. Once you’ve made your decision, it’s time to notify the applicant. If they’re approved, the next step is to provide a lease agreement for their review. Make sure to discuss the lease terms in detail and give them the opportunity to ask questions before they sign. This step is crucial for preventing misunderstandings down the road. Learn more about next steps: How to Create Your Tenant Move-in Checklist, Tips + Free Template What is a Resident Benefits Package? Tenant Screening Checklist Template The checklist below covers the process for screening potential tenants from beginning to end, and will help ensure that you are missing no crucial steps: Rental application Provide rental application form Collect full name, contact information, employment history, and rental history. Request a copy of the applicant's photo ID. Obtain consent for background and credit checks. Review rental application Confirm that all necessary fields are completed. Verify the accuracy of provided information (e.g., contact details). Income and employment verification Verify income and employment Request pay stubs or employment verification letters. Optionally, call the employer to confirm details. Ensure the applicant's income can comfortably cover the rent. Assess employment stability Look for consistency in employment history. Consider the nature and duration of current employment. Credit check and credit Report Run credit check Confirm written consent from the applicant is on file. Evaluate credit history, focusing on payment habits and outstanding debts. Identify any red flags, such as missed payments or high levels of debt. Background check Conduct background check Ensure legal compliance with state and federal regulations. Review criminal history for any potential risks to the property or community. Document findings in accordance with Fair Housing laws. Rental history Contact previous landlords or property managers Verify rent payment history (e.g., on-time payments). Check how well the applicant maintained previous rental properties. Investigate public eviction records, if applicable. Reference checks Request professional references Contact provided references to verify the applicant's character and reliability. Prefer professional references over personal ones for objective insights. Pet screening (if applicable) Gather pet information Request details about the pet(s), including breed, size, and any specific needs. Review and communicate property rules and restrictions regarding pets. Confirm the applicant’s acknowledgment of pet policies. This checklist should guide property managers and landlords through each step of the tenant screening process to ensure thorough and legal compliance. Tenant Screening Checklist Form A good tenant screening checklist form will include all of the components discussed above. Here is a sample that you can use or customize according to your needs and legal requirements: Tenant Screening Checklist Template Property Information: Property Address: Unit Number: Rent Amount: Security Deposit: 1. Pre-Screening Questions Preferred Move-in Date: Reason for Moving: Length of Previous Tenancy: Number of Occupants: Pets (Yes/No): Smoking (Yes/No): Employment Status: Monthly Income: Criminal History (Yes/No): 2. Application Information Completed Rental Application (Date received: ) Application fee collected: (Amount: ) 3. Identity Verification Photo ID received: (Type: ) Verified Name, Date of Birth, and Address 4. Income & Employment Verification Income Documentation Provided: Pay Stubs (Last 3 months) Bank Statements (Last 3 Months) Tax Returns (If Self-employed) Employer Contact Information: Employer Name: Contact Name & Position: Phone/Email: Verified Employment and Income (Yes/No): 5. Rental History Verification Previous Landlord Contact Information: Landlord Name: Phone/Email: Length of Tenancy: Rent Payment History: Any Damages or Issues Reported: 6. Credit Check Credit Score: Credit Report Reviewed (Date): Any Negative Marks: (Late Payments, Collections, etc.) 7. Background Check Criminal Background Check Completed: (Yes/No) Eviction History Check Completed: (Yes/No) Any Red Flags: 8. Additional Documents/Considerations Co-Signer Required (Yes/No): Co-Signer Information Verified: Additional Documents Provided: 9. Approval/Denial Decision Approval Decision Date: Denial Decision Date: Reason for Denial (if applicable): 10. Follow-Up Lease Agreement Sent (Date): Security Deposit Collected (Date): First Month’s Rent Collected (Date): Final Thoughts Tenant screening may seem like a complex process, but with a clear checklist in hand, you can navigate it smoothly. By staying organized, adhering to legal requirements, and keeping the lines of communication open with applicants, you'll be able to more efficiently find the best fit for your property, and set the tone for a positive resident experience all around. For more tips on improving the resident experience, check out Second Nature’s Resident Benefits Package.

September 19, 2024

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How to Write a Letter Notifying Your Tenant of the Sale of Property

Selling a rental property can be complex, especially when tenants are involved. But there are plenty of ways to notify your tenant of the sale in a clear, respectful, and legally compliant manner that also reduces their anxiety or concerns. In today’s blog, we’ll provide a practical walkthrough to help you draft this important letter, including: What a notice of sale of property letter is Rights of tenants when the property owner sells the property What the sale of property letter should include Sample letter to notify tenant of sale of property Note on language: Here at Second Nature, we prefer the term “resident” rather than “tenant,” as that emphasizes the human element over the transactional. But because legacy property management systems and documentation often make exclusive reference to “tenants,” we’ll favor that term in today’s post. What is a Notice of Sale of Property Letter? A notice of sale of property letter is a formal type of communication that informs a tenant that their rental property is being sold. It outlines the upcoming changes that will occur, reassures tenants about their rights, and details how the sale will affect their tenancy. You might wonder if selling a rental property is even possible with tenants in place. Yes, it is. However, the process requires careful consideration of the lease terms and local laws. If the tenant is on a fixed-term lease, they often have the right to remain until the lease expires. If the lease is month-to-month, the new owner may have more flexibility. But in all cases, understanding and following legal guidelines is crucial as they may vary based on your location. Why You May Want to Sell a Rental Property Property owners might have a variety of reasons why they’re planning on selling the rental property. We’ll break down some of the most common scenarios below: Potential for significant financial return: The property has appreciated significantly recently, and selling now could provide a substantial profit for the owner, and they want to capitalize on that as soon as possible. Eliminates the property management responsibilities: Managing the property has become too time-consuming or challenging, so selling is the best option to free up the owner’s time. Freeing up capital for other investments: They’re looking to reinvest in a different type of real estate, another location, or explore other markets entirely. Change of priorities due to finances: Financial needs, such as funding their retirement or other investments, are driving the decision. While selling a rental property has plenty of advantages, it also has its drawbacks. Here is a look at some disadvantages of selling a rental property: Loss of steady income: Monthly rent means money coming in at the same time every month. Removing that means another means of income needs to be secured. Potential legal challenges: There are many complex laws and regulations to consider, as well as logistics, so if not handled properly - this could lead to major issues down the line, including legal action from the tenant. Reputation: If not handled smoothly and above board, this can cause disruptions for tenants, which could lead to potential damage to a property manager or the property management company’s reputation. Rights of Tenants When the Property Owner Sells the Property Tenants have rights that must be respected when a property is sold. Knowing these rights and planning accordingly can help you avoid legal disputes. Please note that this guide does not constitute official legal advice, and it’s crucial to consult local laws or legal counsel for specific details. Some common laws and regulations you should be aware of include: Local laws and lease terms: Depending on your state or city, there may be detailed regulations about how to handle a property sale. For instance, some areas require you to honor the current lease terms, even with a new owner. In certain states, tenants with month-to-month leases might need to be given a specific amount of notice before being asked to move out. Tenants may not have to move: In some jurisdictions, tenant rights specify that they have the right to stay in the property, even after it’s sold. For instance, under California law, “tenants who have a rental agreement have the right to remain through the end of the rental agreement under the same terms and conditions. The new owner may be able to end a periodic tenancy (for example, a month-to-month tenancy), but only if allowed by law and after giving the tenant the required advance notice.” In other words, a buyer could inherit the lease, and this is especially true for tenants with long-term leases. Some local laws also require that tenants be allowed to stay until the end of their lease term. Always verify this with a legal expert. Utilities and maintenance: As the owner, you must continue providing a habitable property by providing utilities like water and electricity until the tenant moves out. Shutting off utilities during the sale process is illegal, and under criminal law, owners could be charged if they turn these off. For instance, New York Real Property Law § 235 provides protections for tenants, including prohibiting landlords from willfully interrupting utilities – and violations can be considered criminal acts under New York Penal Law. Additionally, if you plan to conduct maintenance or repairs, you need to notify the tenant as required by local laws. Property showings: Although giving notice for property showings isn’t always legally required, it’s good practice to inform tenants well in advance. Most state laws require you to provide reasonable notice before entering the property, usually 24 to 48 hours, though this can vary. Make sure you refer to your state’s tenant laws before scheduling any showings. As a matter of courtesy, prospective buyers should be accompanied by licensed real estate professionals, but in the event that this is not possible, it makes sense to keep open communication channels with the tenant and to maintain high standards for prospective buyers. Security deposits: If the tenant moves out before the sale, their security deposit must be handled appropriately. The deposit should be transferred to the new owner, who will hold it until the tenant vacates the property. Be sure to review your state’s laws to avoid any disputes over this process. As a point of accounting interest, note that on balance sheets, a refundable security deposit appears as a liability – the tenant security deposit belongs to the tenant and must be transferred to the new owner to be held until the tenant moves out. Lease terms: If the property is sold while the tenant is still living there, in most cases the new owner takes over the existing lease terms. However, this can vary based on state laws and the specifics of the lease agreement. For instance, under Florida law, new owners can provide a 90-day written notice of lease termination if they intend to occupy the property as a primary residence. What Should the Sale of Property Letter Include? When notifying your tenant of a property sale, the letter should cover essential points. Luckily, we’ve provided a breakdown of what should be included. Basic information Start with your name (or the property management company’s name), the date, the tenant’s name, and the property address. Include your contact information for any questions the tenant might have. Details about the sale Inform the tenant that the property is being sold. Be transparent about the process, including whether the lease and deposit will transfer to the new owner. Let them know that the property will go on the market, and they may need to cooperate with showings. Showing information Mention how much notice you’ll provide before a property showing. If state laws require specific notice periods (such as at least a one-day notice), cite them to reassure the tenant that their rights are being respected. Clarify that any showings will be conducted by licensed real estate professionals, and be considerate of the tenant’s schedule. Responsibilities before the sale If the tenant has any responsibilities, such as keeping the property tidy for showings, outline them in this section. You may want to consider offering a cleaning service to make it easy for the tenant to keep the property in great condition. In all cases, be polite and professional, and make sure the tenant understands what is expected of them. Incentives (if applicable) If you’re offering any incentives, such as paying for a hotel stay during showings, assisting with moving expenses, or providing a rent discount, mention them here. While not mandatory, these gestures can ease the transition for your tenant and foster goodwill. Relocation support If you manage other properties, you may wish to let the tenant know of any available openings, but this is completely optional and just a common courtesy you can provide to help ease the transition. Thank you section Close the letter by thanking the tenant for their cooperation during this process. Acknowledge the inconvenience this may cause and express your appreciation for their help in making the process as smooth as possible. Letter to Notify Tenant of Sale of Property Template Here’s a sample notice letter template you can use to inform your tenant of the sale, and customize to fit your needs: [Your Name/Property Management Company] [Date] [Tenant’s Name] [Property Address] Dear [Tenant’s Name], I hope this letter finds you well. I am writing to inform you that the property you are currently renting at [Property Address] is being put up for sale. This means there will be some changes in the near future, but I want to assure you that your rights as a tenant will be respected throughout this process. Your current lease will be transferred to the new owner, and all terms will remain in effect. You will be notified in advance of any showings, and we will work to make the process as smooth as possible for you. If you have any questions or concerns, please don’t hesitate to contact me directly at [Your Contact Information]. Thank you for your cooperation during this time. We appreciate your help in keeping the property presentable for potential buyers and making this transition as seamless as possible. Sincerely, [Your Name] Learn more: How to Write a Notice to Vacate Letter to Tenants [with free template]) Final Thoughts Selling a rental property involves careful planning, especially when tenants are involved. A well-crafted letter can help ease the transition and ensure a smooth process for everyone. Remember to stay informed about your local laws and consult legal experts when necessary. If you're looking for ways to enhance the resident experience during this transition, consider improving tenant satisfaction with services like the Resident Benefits Package. Learn more about these packages from Second Nature today.

September 19, 2024

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Six Ways to Make Your Vacancy Stand Out on Zillow

Every property manager wants to minimize days on the market, and a great listing can be a critical component of accomplishing that goal. If you've spent any time looking at real estate listings, whether rentals or not, you've no doubt seen some well-done ones and ones that have five photos, three of which appear to have been taken for the TV show Hoarders. What makes a listing strong? If you're asking this question, you're off to a good start, and you're in the right place. Be thorough but concise Your listing should strike a balance between being thorough and concise, but it’s important to never leave out critical information that could lead to a negative experience down the road. First and foremost are any upfront fees, then things like pet rules, HOA considerations, and other relevancies that you don’t want a prospective resident to learn about later after they’re further into the process. Be concise about these so your property description doesn’t become too long, but be sure to include what a renter needs to know regarding costs in the application and move-in process. Take quality photos Photos are the golden goose when it comes to property listings. Quality, considerate photography will create stronger first impressions from potential renters. Fortunately, getting quality photos isn’t super difficult, it just takes some planning and forethought. You don’t need to stage your property. In fact, many property managers outright recommend against it. Photos of vacant, clean rooms are usually the way to go. They allow prospective renters to view their stuff and their layout in the photos, which can make them feel less like they’re looking at someone else’s home. Vacant rooms also tend to look bigger, and low angles with wide-angle lenses can add to this effect while showing the whole room. Cleanliness is next to godliness. Never post pictures with boxes, garbage around, open toilet seats in the bathroom, or anything that just doesn’t look inviting. Always open blinds and include window views from rooms when possible. You don’t need to hire professionals for these processes, but it can be worth investing in a quality camera to take nice photos. Again, this will be the first impression a renter has of your property. They’re not going to look twice if it looks small and uninviting. Don’t overdo the property description Be thoughtful of what goes into a property description and how you organize it. These things can get long, and if you’re a property manager, you’re keenly aware of the general public’s lack of interest in reading. A short, one-to-two-sentence description of the property will do for an opener, and you can follow that with bulleted lists of the property’s amenities. Lists are easily consumable and where the eyes of the reader will go first if they’ve decided to skim the description instead of reading through it. In addition to the features of the home, be sure to include nearby amenities in the listing. In single-family property management, schools and school districts tend to be important. Beyond that, nearby shopping areas, outdoor spaces and parks, and distance to highway access are things that property managers have found matter to prospective residents. Don’t list the property until it is move-in ready This is an easy one to check off, but making sure a home is fully ready for a resident before it gets listed is an advantageous process for property managers. You may be tempted to list it as fast as possible, but this has risks, and the theoretical shortening of time-to-revenue may end up backfiring if a great resident moves on because the home wasn't ready when they were. Renters aren’t always proactive. They tend to be looking for properties closer to their actual desired move date than maybe they should be. Listing a property before it’s move-in ready is a great way to create a negative experience if a quality resident seeks it out and it’s not ready when they want to move in. Include a floor plan Employing a third party to create floor plan drawings isn’t a super expensive or difficult undertaking, and it’s worth your while. A floor plan helps a renter understand how the house as a whole is set up, how they might use the space, and how their stuff fits in the home. There is inexpensive software that makes this process easy, or if you’re like most property managers and crunched for time, there are third parties available. This goes back to the idea of being thorough and clear in your listing. You don’t need 100 photos of the home, but you want to tell the whole story of the house as concisely as possible. A floor plan can help you do that. Think outside the box Ask yourself how you can make your listing unique. Checking all the boxes that make a quality listing is step one, but once you’re comfortable with that, you can ask yourself how to be a little bit different and stand out in the sea of property listings. While not a property manager, Trent Miller has developed a viral video series that blends content marketing with property listing strategies. He calls it the speed tour, and it is exactly what it sounds like. @trent_miller__ It's Time For Another SPEED TOUR‼️💨 Thank you guys for all the love and support!! More videos coming soon! Looking To Buy Or Sell Real Estate?? DM ME‼️🏡 ~Price Is Estimated Down Payment~ #realestate #homesforsale #RealEstate #HomeForSale #RealtorLife #DreamHome #Property #HouseHunting #NewListing #ForSale #HomeSweetHome #InvestmentProperty #OpenHouse #LuxuryLiving #HomeBuyer #HomeDecor #HouseGoals #BuyersMarket #SellingHomes #Homeownership #RealEstateAgent #speedtour ♬ original sound - trent_miller__ Garcia Property Management adds colorful overlays to the cover photos for their listings. They don't do this for every photo, so they're still following general best practices for their photo sets for each property, but also trying to stand out within the listings thanks to some color.

August 23, 2024

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Property Management Companies that are Winning on Social Media

How would you say your social media marketing is performing? As a constantly changing medium beholden to trends that can peak and die in a heartbeat, it can be a tough area to win. Truthfully though, it's underused in the property management space. Content creation for social media doesn't have to be super intense, and it doesn't have to be super polished. It just has to have intent and understanding of who you're marketing to. If you're looking to develop a more robust social media program for your PMC, you're in the right place. Here we break down three companies with three distinct strategies, all of which are unique in the PM space. These companies are crushing it, and learning from their successes can help you develop a strategy that works for you. Home Ladder's Creative Video Content Home Ladder’s “Chaos and Disorder” video series is a hit and a great example of creativity that can sometimes be lacking in property management marketing. Co-founders Travis Bohling and Brandon Graham are among the most creative content marketers in the property management space. While they may be relatively new to the content side of things (Chaos and Disorder is less than a year old), they've hit the ground running with a unique video series that's both relevant and genuinely entertaining in addition to leaning hard into Facebook reels. Short video content has been trending up in social media marketing since the rise of TikTok, although it's not heavily used in the SFR property management space. Home Ladder has taken this on with sets of short, straight-to-the-point thought-leadership content. The Chaos and Disorder video series is really fun, though. Home Ladder is starting to spearhead a creative approach to content marketing that the industry could really use more of. The idea here is really to engage the inability of self-managers to be effective tenant screeners, and they've told this story with two destructive characters affably named Chaos and Disorder. A constant battle in professional property management is trying to keep ahead of the self-managing landlord as self-management tech expands their capacity. Home Ladder is keyed in on that messaging here as a play to position their professional services as more reliable and thorough, and they've done it in a way that's genuinely entertaining and relatable to anyone who has ever had a bad tenant, which is anyone who has ever managed a property. RL Property Management's Authority Play on Twitter RL Property Management CEO Peter Lohmann is crushing it on Twitter. Executives being active in the content creation space can be a big win for companies, and RL Property Management’s Peter Lohmann is a prime example. While this is a popular LinkedIn approach, Lohmann is one of very few who has taken ownership of the property management discussion on Twitter. A tougher nut to crack than Facebook and LinkedIn, Lohmann has found success and amassed over 21,000 followers via a content strategy that seamlessly blends an authentic connection to the property management space with expertise Lohmann has acquired over years in the industry. The word relatability gets thrown around a lot when it comes to any kind of content-based marketing, but being relatable isn’t a goal so much as a strategy. The power of relatability is that it establishes trust, a challenging thing to create in many online spaces. If you can establish a familiarity with what affects the people you’re speaking to on a daily basis, that establishes a trust that helps build interest in what you have to say. Lohmann’s 21K follower count didn’t come purely from expository property management tips. There's a relatability to his content that helps create that trust, which adds value to his thought-leadership content. He’s naturally an authentic person and a master communicator, and while the expertise is valuable, that lies downstream of a personal connection to other industry professionals. Property management in a nutshell: Owners with 40 units: "call me if it burns down" Owners with 1 duplex: "why did you pay $45 to cut grass? My guy only charges $30 please call me asap" — Peter Lohmann (@pslohmann) March 11, 2024 When Lohmann does get into thought-leadership content, he's an open book, which also helps establish trust. Lohmann, like many leading property managers, believes that propelling the whole industry forward is more important than holding any kind of trade secrets. He does not shy away from granular details of his company, including sharing the what and why of his entire tech stack. Cheat code for starting & growing a property management business. This is a complete list of our software stack. This is how the magic happens & how we can calmly and effectively manage ~600 units. pic.twitter.com/aTHYAp9MwH — Peter Lohmann (@pslohmann) December 23, 2021 Grace Property Management's Informative YouTube Series Marc Cunningham is the YouTube king. Cunningham has been in property management for over 30 years, and his YouTube strategy is arguably the best in the game. The CEO of Grace Property Management is approaching 5,000 YouTube subscribers. Part of the value of Cunningham's channel is that you know exactly what you're going to get when you go there. His content is built with a very consistent format and length. He has over 100 videos, almost all of which are between five and ten minutes long, and address a very specific issue or question in single-family property management. Cunningham's approach is expert-forward, demonstrating that there is more than one way to win in social media and property management marketing. He provides a combination of content that addresses specific questions and issues in the PM space and offers windows into his own operations and the decisions he's made. His channel's most popular videos, often having thousands of views, cover management topics like how to explain a rent increase to a resident and why you should never charge a pet deposit as well as industry trends like average rent trends and predictions for the coming years. Because YouTube content is indexed by Google, Cunningham's strategy is built more around capturing search engine traffic than the above two strategies. It's self-sustaining to a degree now because of the size of Cunningham's following, but YouTube is an excellent way to capture search traffic, something Cunningham has leveraged well.

August 15, 2024

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PMC Spotlight: Chambers Theory

Chambers Theory is a world-renowned property management team with clients in more than 30 countries worldwide. They specialize in serving the U.S. military, State Department, and Foreign Services families. Their motto “Real Estate With Intelligence” is more than just a saying. It’s on full display through the introductory videos for landlords and residents on their website in seven languages (Spanish, Portuguese, Italian, Vietnamese, French, Croatian, and English) - all spoken fluently by their own property management (PM) team. Since its founding in 2018, Chambers Theory has been achieving extraordinary performance benchmarks. They’ve led the marketplace in delivering the “Golden Triangle of Success” to their clients, which means the lowest vacancy, the highest average rents, and the highest quality of tenants of any property management firm in its same service area. They’ve also donated over $100,000 to local charities and community organizations, while also leading the way in promoting sustainability practices in real estate and property management services. Their outstanding team attributes their success to their ability to develop and utilize their emotional intelligence skills to capacity to care with all their interactions with both landlords and residents. That’s why they fully endorse the Resident Benefits Package at Second Nature! Find out more about what a Resident Benefits Package is, its benefits, and how it can help create a Triple Win for you, as well as your residents and investors. Related: The State of Resident Experience Report

July 18, 2024

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Investor Experience Platform™️ IXP™️

An Investor Experience Platform™️ (IXP) in property management is a suite of products, services, and benefits offered by property management companies to property investors. Just like a resident benefits package is a way to drive value for residents, investors, and property managers, the IBP™️ is an innovative approach to property management that focuses on driving value for an investor's assets and turning that value into profit for the property management company. In this article, we’ll dig into the different features that an Investor Experience Platform™️ can include, and how those benefit not just investors, but property managers and residents, too. What Is an Investor Experience Platform™️ (IXP)? As stated above, an Investor Experience Platform™️ (IXP™️) is a comprehensive suite of services that offer property investors higher quality property management, stability, and profit. An IBP™️ typically includes concierge-level services beyond basic property management – such as property insurance policies, eviction guarantees, rent guarantees, maintenance plans, asset performance reports, etc. These services are aimed at maximizing the investor’s assets, stability and convenience, profitability, and peace of mind in managing their properties. They're commonly managed through an investor experience platform to securely manage and monitor the performance of these assets online, which we'll discuss later. The first step to outlining an IBP™️ is to define what your basic management fee means and covers. If the answer is, it’s collecting rent, handling maintenance, and general communication – does that include maintenance coordination or is that a separate fee? Does it include asset reporting or is that an additional service? In your management agreement, define what the management fee is, what it covers, and how much it is. An IBP™️ can be an effective tool for articulating the new and differentiated things that an investor wouldn’t be able to do on their own and that you are offering beyond basic property management. Articulate your unique and differentiated services (IBP™️) and use that as a tool for positioning and charging for what it’s worth. What’s Included in An Investor Experience Platform™️? An Investor Experience Platform™️ should include a range of solutions to help deliver consistency, insight, and asset protection to a property owner’s portfolio. After all, professional property managers don’t have to be functional managers of a home – they can be strategic partners in the management of financial assets. You might hear services similar to the IBP™️ called an “owner benefit package,” but at Second Nature, we believe that the “investor” term is useful in encouraging a longer-term mindset, and emphasizes the economic value professional property management can bring. According to Eric Wetherington, VP of Strategic Initiatives at PURE Property Management: “As property managers, we need to think more like asset managers. This client made an investment, and we should be guiding that client through managing that investment, not just collecting rent.” To build and manage a winning IBP™️, property managers need an Investor Experience Platform that unlocks scalable product and service customization, digitized onboarding, accounting policy automation, and more. In addition, Investor Experience Platforms provide transparency and convenience for your investors. Here are some of the most valuable services that property managers can offer through an innovative Investor Experience Platform™️. Property insurance program Similar to offering a renters insurance program through an RBP in the lease agreement, property management companies can offer an insurance plan to investors to cut costs and ensure the safety of their assets. Most management agreements will include the requirement that the investor carries insurance on the property and that the property manager is additionally insured. But what if you as the property manager could help manage that for the investor – at scale? Property Insurance for investors should have dynamic pricing based on individual investors’s property portfolio and needs. The benefit beyond flexibility is the savings they’ll see on their premiums while also getting insurance that’s tailored to the needs of their specific property class. At Second Nature, we work primarily with single-family rental properties and small multi-family residences. Property Insurance Programs can bring scale that will drive economic value for the investor over what they could get retail on their own. They’d still have the option to go get their own insurance that meets requirements, but they can pay you a small fee to manage it for them. Rent guarantee An IBP™️ can include a number of financial guarantees to protect property investors and drive ancillary revenue for PMCs. A rent guarantee, or rent protection, ensures a consistent rental income to investors by protecting them against resident defaults or non-payment of rent. If a resident fails to pay rent, the property management company covers the unpaid amount and takes necessary steps for eviction or collection, providing financial security and minimizing the risk for property owners. Rent guarantees work for professional property management companies that have enough properties to balance the loss of rent if a resident doesn’t pay. The risk is low and the additional profit from fees for this guarantee can have a very high ROI, while driving satisfaction and stability for the investor. Plus, if you’re using services in an RBP to help incentivize on-time rent payments, you’ll rarely find yourself out in the cold. Eviction protection guarantee An eviction protection guarantee also goes beyond the normal scope of property management services and can be used as a secondary source of revenue. Eviction Protection is a service provided by property management companies to property investors that offers additional security and financial protection in the event of an eviction. Under this guarantee, the property management company assumes the costs associated with the eviction process, including legal fees and court expenses. It helps alleviate the financial burden on property investors and provides peace of mind by ensuring that they are safeguarded against potential losses resulting from resident evictions. The eviction guarantee helps protect property owners from the complexities and potential costs associated with evictions, ensuring a smooth and efficient resolution to tenant-related issues. Pet guarantees & other guarantees A pet guarantee is a service offered by property management companies to property investors that aims to address any potential issues related to allowing pets in rental properties. It typically involves implementing policies and procedures to ensure responsible pet ownership, such as thorough pet screening, pet agreements, and collecting additional pet deposits or fees. The pet guarantee may also include services like pet damage insurance or assistance with pet-related issues during the lease term. It provides property investors with a framework to accommodate residents with pets while minimizing risks and maintaining the condition of the property. For many residents, finding a pet-friendly apartment increases retention and profitability. They’re willing to stay longer and pay more for a pet-friendly place. And–get this–pet damage is less likely to happen than damage from kids! It’s not a huge risk to the asset, but can provide a big benefit in terms of satisfied, longer-term residents. Maintenance plan Home warranties are a four-letter word for property managers. They’re a massive headache to deal with, and yet there’s high demand for them among property investors. Because of that, most property managers charge a fee for home warranties, for each they have to file. Imagine if there was a world where home warranties weren’t needed. Here’s the thing: Professional property managers already have the vendor network and the know-how to coordinate maintenance jobs. What they don’t usually have is a product that’s priced to give the investor the experience they want. Let’s say right now an investor is paying $50 a month for a cheap home warranty. The warranty only covers 40% of issues and it creates all these extra people and friction in the middle. For anything moderately significant that goes wrong with a property, PMCs generally must contact the investor for permission to get work done. It’s all a massive hassle and loses time in maintenance requests that leave residents frustrated. What if there was a product that costs, say, $150 to $200 a month but it actually covered everything? Instead of having sudden expenses and emergencies, this maintenance plan smooths out the experience and makes it more predictable for the investor. For PMs, it means taking the initiative on fixes without waiting for approval. Imagine a world where you didn’t have to get owner approvals for 95% of maintenance issues – because they’re already budgeted for and already paid for. For residents, it means better maintenance, and faster. Another Triple Win! Asset performance reports Another piece focuses on property managers as asset managers. Think about any investment app, like Robinhood, Acorns, etc. You can log in to these apps any time, 24/7, and see how your stock and investments are performing. In most investment classes, you can see in real time how your assets are performing. Why shouldn’t property investors have that as well? An IBP™️ can include exactly that: a dashboard or online portal that shows investors regular reports on how their property is doing. They could get updates on the value of their home over time, the home price appreciation, rent price over time, and project rent growth, typically maintenance costs and how they’re doing against that, and more. Resident Benefits Package Another piece to include in your IBP™️ is to highlight the benefits of your resident benefits package to your investors. Explain how features like a filter delivery program protect their assets and reduce HVAC repair costs. Show how a renters insurance program can ensure coverage and protection. Give numbers on how credit reporting incentivizes on-time rental payments and helps ensure financially stable renters. Explain how a movie-in concierge saves both time, headache, and money. Each of the pillars of an RBP is critical to encouraging better resident behavior, increasing renter retention and lease renewal rates, reducing vacancies, and more – all primary goals for a property investor. A note about Rent Advance Programs There’s been due buzz about “Rent Advance” offerings, though many advise caution when approaching this financial product. It works in some ways like cash advance programs, which can satisfy urgent needs, but not be more valuable for anyone long term. The way it works is PMs offer to send a year of rent upfront to the investor in a big chunk, and collect monthly from the resident. The investor typically pays a 5-10% premium on the advance, which can be their entire expected return. So the question becomes, where do they put that cash to get a better return instead? Another thing to think about is who would actually use this product. Investors who don’t have enough cash on hand? How does that benefit anyone in the long run? What happens when there’s a big maintenance bill later? Does this encourage better decisions and practices by the investor? To date, there’s been pretty low adoption of this program, which is another sign it may not be hugely beneficial to everyone involved. But plenty of innovations start that way, evolve, and find traction. One case where it might be a value generator is if an investor is looking to take a cash advance and put it toward a down payment for another house. That would benefit the property manager as well, promising more business, and the PM could offer a lower rate for getting more properties to make the financing more attractive than hard money loans or other alternatives. The jury is still out here, it’s an interesting one to track. How Can Investors and Property Managers Benefit From an Investor Experience Platform™️? Investors and property managers can benefit from an Investor Experience Platform™️ in several ways. They’re also great for residents in the sense they build more stability and quality into the renting process. Here are just some of the benefits of an IBP™️. Enhanced investor attraction An Investor Experience Platform™️ provides incentives and advantages that can attract more investors. Financial guarantees and protections against the risks associated with evictions or late payments can increase stability, while services like a maintenance plan can ensure premium care of their property assets without increasing their workload. By offering attractive perks, property managers can differentiate their offerings and generate greater investor interest. Increased investor retention Both IBP™️s and RBPs help build loyalty with residents and investors. By fostering a strong relationship and demonstrating ongoing value, property managers can build trust and loyalty among investors, and retain them over the long term. IBP™️s help establish the stability, transparency, and asset growth for a real estate investment that an investor hopes to achieve. Improved property performance An Investor Experience Platform™️ can also contribute to improved property performance. For example, by offering discounted property management fees or access to professional services at reduced rates, property managers can help investors optimize their returns and reduce costs. Additionally, incentives such as rent guarantees or eviction protection can mitigate risk for investors and attract more capital to the property. Streamlined communication and transparency A well-designed Investor Experience Platform™️ facilitates effective communication and promotes transparency between property managers and investors. This can involve regular reporting on financial performance, property updates, and the sharing of relevant market insights. Transparent and consistent communication builds trust and confidence among investors, fostering a positive and long-lasting relationship. Competitive advantage A comprehensive Investor Experience Platform™️ can give property managers a competitive edge in the market. When investors have access to exclusive benefits and advantages, they are more likely to choose a property managed by a company that offers a compelling package – and to recommend it to others. Say hello to increased investment inflow and a stronger market position for your PMC. Should You Make an Investor Experience Platform™️ Mandatory? The first thing most property managers ask us when we’re talking about an RBP or an IBP™️ is: Should I make this mandatory for all investors or do I make it a flexible opt-in/opt-out program? Unlike RBPs, where best practices are more proven and established, different PMs are taking different approaches with their IBP™️s. Some have a mandatory level of service set at a flat price. Others may say they’re fine offering a base level of service without these differentiated products, giving investors the choice to simply pay a baseline management fee and opt out of the IBP™️ premium service. Some may offer a baseline to all investors and then give them the chance to opt in for premium IBP™️ services. There are a lot of ways to do it. With the RBP, we’ve found that making it mandatory does not generate nearly as much pushback as people expect – and can be a strong value add overall. Final Thoughts About an Investor Experience Platform™️ The Investor Experience Platform™️ is an innovative way to generate ancillary income and create more value for investors and residents. Similar to Second Nature’s premier Resident Benefits Package, the IBP™️ can deliver high-quality service for investor experience – and help create a triple win for investors, residents, and property management companies. The IBP™️ reinforces the value of a professional property management company for investors and helps differentiate you from the crowd. Stay tuned to learn more about the latest in the IBP™️ space, or learn more about how a resident benefits package can launch a whole new level of value for your PMC.

July 17, 2024

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How to Create Your Tenant Move-in Checklist, Tips + Free Template

We get a lot of questions here at Second Nature about the ideal tenant move-in checklist. After all, whether you're new to the realm of property management or a seasoned expert, one common goal unites us all: creating an excellent resident experience. The move-in process marks the beginning of your resident’s journey, and it's an opportunity to make a great first impression. A well-crafted resident move-in checklist can make this process smooth, efficient, and stress-free for all parties involved. In this article, we're talking to a leader in the single-family rental property management space to help us delve into the essentials of a resident move-in checklist, its benefits, and how it can enhance the overall resident move-in experience. Let's dive in and discover how a simple checklist can streamline your move-ins. Interested in reading more about resident experience management? Read our State of Resident Experience Report. Meet the Expert: Janet Sprissler, Broker/Owner, Rent 805 Janet Sprissler has over 20 years of experience in property management and a philosophy of working with residents to bring them value and help communities thrive while providing investors with a positive net operating income. She started her career in Los Angeles with 24 units and grew to a multi-family fixer for over 400-unit buildings throughout Ventura, Los Angeles, and Orange Counties. Janet left multifamily to consult with single-family residential managers to bring her problem-solving philosophy to life. Starting Rent 805 has been a lifelong dream of hers to bring investments, housing, and a positive impact in the property management community. Janet also received the 2023 Triple Win Property Management Award for Leadership in Resident Experience. Related: Notice to Vacate Tenant Free Template What is a Tenant Move-In Checklist? A tenant move-in checklist is a detailed document that records the condition of a rental property at the time a resident moves in, serving as an essential tool to prevent potential disputes over property damage during the lease period. Some consider this a landlord-tenant agreement but can be between property managers and residents, as well. This checklist is a lifeline for both property managers and new residents. From the state of the kitchen appliances to the condition of the flooring, this checklist serves as a comprehensive record of the property's state. Other names for the checklist could include: Think of it as a snapshot in time, providing a clear reference point for both parties. It's not just a piece of paper; it's a roadmap to a smooth tenancy for everyone involved. Now, that's a win-win! Note on Language: At Second Nature, we like to say “resident” rather than “tenant,” but will use the terms interchangeably since many property managers have official terminology around these checklists. Benefits of Using a Tenant Move-In Checklist Using a well-crafted checklist has far-reaching benefits for property owners, property managers, and property residents. We’re breaking down the benefits based on each of these perspectives. Benefits for property owners Protection of property: A move-in checklist includes a detailed property inspection, protecting owners from damage disputes at the end of a lease. Compliance with local laws: Some jurisdictions require move-in checklists for legal protection. Maintenance tracking: Early identification of maintenance issues can help property owners address them proactively. Benefits for property Managers Streamlined process: A move-in checklist provides a clear process, helping property managers to stay organized and ensure all essential tasks are completed. Improved communication: A checklist sets clear expectations for the move-in process, promoting transparency and minimizing misunderstandings with residents for the lease agreement. Property protection: By signing off on a detailed checklist, property managers ensure their good work is documented and any issues can be clearly identified as resident responsibility. This is critical when it comes to the security deposit if there is damage. Increased efficiency: Using a checklist can speed up the move-in process, maintenance before move-in, etc., saving property managers valuable time. Benefits for residents Clarity and transparency: A checklist provides residents with clear expectations of what the move-in process involves and their responsibilities. You will have a document of pre-existing damage and know what repairs are needed, plus what’s just normal wear and tear. Peace of mind: A detailed property inspection at move-in provides a record of the property's condition, protecting residents from unjust damage claims. It also helps them ensure any open issues are repaired. Smooth transition: A well-organized move-in process can ease the stress of moving, enhancing the resident’s initial experience and ensuring they move into a space that’s ready for safe living. How Should a Property Management Company Prepare for Tenant Move-In? Making sure the property is ready for the new tenant before they move in, and that the former tenant (if applicable) has a seamless transition out of the property - follow these guidelines to ensure a smooth process and happy tenants. Redirect mail: Before your last communication with the former tenant, PMs should notify them they can submit a change of address via USPS so all their mail gets forwarded to their new address with ease. Clean the property: The previous tenant will typically clean up the space to some degree before they move out, and PMs will do a rental inspection to review the condition of the rental property. After this process, we recommend scheduling professional cleaning services to spruce up the property and make it move-in ready for new tenants. Confirm repairs are completed: Any repairs or maintenance tasks identified in the move-out inspection should be completed before the new tenant moves in. Check for safety hazards: Conduct a thorough inspection and fix any potential safety issues, such as exposed wires, tripping hazards, or loose handrails. Copy the keys: The former tenant will leave you with a copy of the house keys. Make sure they’re not damaged and test them to make sure they still work properly before handing them over to the new tenant. If you happen to change the locks, be sure to set time aside to create an extra set (or two, just in case the tenant loses one). Share appliance instructions: While some of this information would be included in a welcome packet for tenants, it’s helpful to share instructions or operating manuals for some of the appliances to help them understand how to properly care and use them during their tenancy. Check landscaping: Make sure the grounds (such as lawns, gardens, and commons) are presentable and well-maintained. This should include reviewing the exterior elements of the property such as the driveway, light fixtures, fence, roof, and gutters. Reach out to your landscaping and maintenance vendors to schedule regular upkeep, unless this is the tenant’s responsibility such as mowing the grass. Provide utilities information: Share information about the utilities such as electricity, water, gas, heating/cooking systems, and internet. Make sure they know how to transfer utility bills to their name, as well. You can also include information about a move-in concierge in a Resident Benefits Package through Second Nature. What Should a Property Management Company Provide to the Tenants During the Move-In Process? During the move-in process, property management companies should provide tenants with the following: Lease agreement PMs should provide tenants with a copy of the signed lease agreement, which details the overall terms and conditions of the lease. We recommend providing a hard copy, in addition to an electronic one to ensure peace of mind both for the property management company and the tenant. Related: Lease Management Process Safety records Safety records, including smoke and carbon monoxide alarm certifications and any other safety inspections, should be readily available to ease the tenant’s mind. Having this documentation helps make sure the property is up to safety code, as well for the PM. Smoke alarm and carbon monoxide detectors In addition to PMs sharing documentation showing that smoke alarms and carbon monoxide detectors are properly installed and functioning, they should also discuss when and how often they may need to be replaced. This is essential to tenant safety and can reduce the risk of fire and carbon monoxide poisoning in the rental property. Inventory of the property A detailed inventory of the property, including the condition of furniture, appliances, and other items is helpful for tenants to be aware of. This is the bulk of the checklist, and includes an evaluation of each room's condition, including walls, flooring, windows, countertops, faucets, doors, light fixtures, and any furniture or appliances. More details can be included such as the condition of the paint, if there are any visible carpet stains, and the functionality of the appliances. PMs can take the extra step by providing clear photos of each room to show existing damages so there’s a visual record and to clarify any potential disputes. Property managers should perform the inventory check with the tenant, and allow them to review this checklist so they can agree on the condition of each item before signing off on it. By dating and signing the document, this confirms their agreement on the property’s initial condition. What Should a Property Management Company Do on the Day the Tenant Moves In? Property managers can start a positive relationship with the tenant by providing a warm welcome on their move-in day and clear communication about the property. Here are some guidelines on what to walk through that first day: Demonstrate equipment Tenants are typically aware of how equipment in the property works, such as locks, dishwashers, and washing machines. PMs should check with the tenant if they’d like an overview of anything, to make sure they understand how to use it. Explain safety equipment Part of the walkthrough should include an overview of where the safety equipment is so they can be prepared if there’s ever an emergency. This should include an explanation of how to use relevant equipment such as fire extinguishers and blankets, locks, and any security systems. Provide emergency contact numbers Tenants should have a list of local emergency contact numbers, as well as main points of contact at the property management company. This should include a written explanation of how to deal with different emergency situations on the property, such as losing power, issues with the HVAC system, or an urgent repair. Answer questions Once the walkthrough is complete, tenants should have the opportunity to ask any immediate questions they have about the property or their tenancy. If they have questions later, they can always reach out to the property manager later. Hand over the keys Once the property manager has walked through everything and answered all the tenant’s questions, the last step is handing over the keys and making sure they have access to any additional common areas. Are Property Managers Required to Use a Tenant Move-In Checklist? Sometimes, new tenants must be provided with a written statement on the condition of the unit at move-in time, including a comprehensive list of existing damage. This varies by state, though. For instance, this applies to all new tenants in Arizona, Connecticut, Hawaii, Kansas, Maryland, Nevada, North Dakota, and Virginia. Yet, in other states, such as Georgia, Kentucky, Massachusetts, Michigan, Montana, Washington, and Wisconsin - this depends on whether a security deposit is being collected. This process is designed to ensure transparency and fairness, promote better communication, and reduce potential conflicts between the tenant and property management company. For detailed information on specific state requirements, we recommend consulting local laws or legal resources, particularly since cities and counties may pass local ordinances that affect tenant rights and responsibilities. How to Create a Tenant Move-In Checklist As hinted earlier, a tenant move-in checklist involves several comprehensive sections to make sure it fully captures the property’s condition. (Don’t worry, we’ll provide a template you can use!) Some of these will include the following section: General information: This covers the basics like the property address, the names of the tenants, and the date of the move-in inspection. Rooms: This includes noting the condition of each space such as the bedroom(s), bathroom(s), kitchen, living room, and dining area. It typically includes an overview of the conditions of the doors, floors, walls, and windows in each space. Appliances: This describes the state of the appliances and fixtures in the property such as microwaves, dishwashers, fridges, washing machines, and outlets. Utilities: This includes a review of systems such as plumbing, electrical, HVAC, and the to make sure the electrical panel is property labeled and connected. Safety: In this critical step, a property manager does a walkthrough of safety equipment such as smoke alarms, carbon monoxide detectors, and fire extinguishers. This includes making sure they’re visible and functioning properly. Exterior: An overview of the exterior features of the property, such as the front walkway, front porch, rear deck, yard, driveway, security lighting, and any outdoor structures. What To Do After Completing a Move-In Checklist Once the move-in checklist has been properly filled out and completed, the property manager can wrap up the final steps of the process. The first step is to go over the details of the checklist with the tenant to make sure they understand it and agree with the property manager’s assessment on the conditions of everything in and around the property. If they disagree about any of the items, the property manager should discuss it with them immediately so they’re both in agreement before they sign off on it. Once the tenant has approved this, make sure they sign and date the checklist as well as the property manager. A copy of the signed checklist should be given to the tenant once they’ve signed it, and then the property manager should retain the original and copy for their own records. If the tenant has any repair requests, they should be able to share them by reaching out to the property manager directly or submitting a ticket through the property management portal. Tip to Optimize the Move-In Experience With a Checklist A checklist is the foundation of a wonderful move-in experience. But it’s just the starting point. How does a property management company set itself apart from others in the move-in experience? Here’s where we went to Janet Sprissler and others in our Triple Win Property Managers community for input. Use the right tools It’s easy to forget a step if you don’t have tools that help automate your process and keep your whole team on the same page. The most important thing? “You don’t forget a step!” Sprissler says. “Without a checklist, you’re pretty much setting yourself up to fail,” she continues. “You will drop things, things will be missed, they’ll move in, and there’s going to be a problem. When you set the tone that ‘this is going to be a hot mess,’ you’re setting yourself up to have disgruntled residents, and disgruntled residents never take care of the property well.” Sprissler especially recommends Monday.com for tracking the checklist and process with your internal team and tools like Tenant Turner to help on the resident side. They use zInspector to ensure they are on top of property inspections. “I’m not big on a bunch of papers around,” she says. “I want to see it all automated, I want any of my team members to be able to dive into Monday.com and see what’s missing or needed right away. That system runs so much, I’m a huge fan of it.” Treat all residents with equal care Sprissler says focusing on making residents feel that “WOW!” is critical to their longevity and care for the property. At her company, they focus on seamless processes, transparent communication, and even gifts! The key is that every resident gets that same treatment. “New residents MUST have a move-in gift,” Sprissler says. “They must all get the procedures we’ve set ahead of time. They must receive their birthday gift, they must receive access to our First of the Month Club. We do a move-in concierge through Second Nature – they must have that touch point. We don’t ever say, ‘Hey, this is going to happen,’ and then it doesn’t happen.” Design the ideal move-in process We asked Sprissler how they create an ideal resident experience throughout the move-in process, and this was her top recommendation. “We make it seamless. SEAM. LESS,” she said for emphasis! “On the move-in side, our new residents go through Tenant Turner to get onto the property with an access code. Move in and move out is on Tenant Turner. We make it very simple for them to get access to the property. We don’t play around with it.” “At every stage of the process, prospective and new residents have had conversations with us so that they’re set up, and they know what’s going to happen next.” For Sprissler, it’s about thoughtful touches that give residents a sense of a VIP experience. “For example, people get hungry!” Sprissler says. “We have pizzas delivered on a moving day. One of our move-in questions is ‘What’s your favorite pizza?’” Be willing to go above and beyond Added touches – like the pizza on move-in day – go a long way to establishing the best resident experience and behavior. “When tenants have those touches, it makes life better. It just does,” Sprissler says. They provide birthday gifts and move-in gifts and will add items for pets or children customized to those residents. “People often say, ‘How are you recouping that?’” Sprissler says. “I’m recouping that by having great units when I walk through the door. You cannot pay someone to take care of a unit. But if they feel the worth of themselves and how you feel about them, they take great care of the unit.” Provide a move-in concierge Second Nature includes a move-in concierge as part of the Resident Benefit Program. Sprissler says this is one of the best parts of a seamless move-in. “We use a move-in concierge through Second Nature,” Sprissler says. “People really like it when they’re being reached out to, and all of that is handled. Moving is one of the top five stressors people experience in life. You have to realize as a property manager that you have to take some of that pressure off them. Take it off their plate! Are you making a better experience by piling stuff up on them?” “When people come into my office and say this is the best experience I’ve ever had, I know we’ve done our job,” Sprissler says. Provide a renter’s insurance program Making sure that residents have insurance coverage from day one is key. You never know when something could happen, and protecting residents is the foundation of a good experience. Second Nature’s RBP includes a renter’s insurance program that has 100% compliance across its use. Sprissler is one of the people who use this program, and she says it’s critical to have for her residents. Set clear expectations and incorporate incentive fees Sprissler recommends requesting a tenant ledger so you have the clearest information about the resident before move-in. “You can see if they’ve been charged for maintenance requests, you can see what day they pay – it really is a black and white of how they treated that previous unit,” she says. And then, of course, that clarity should be reciprocated. Sprissler emphasizes transparency upfront and excellent follow-through. Be clear, but also show that you are willing to listen. “Say what you mean and mean what you say,” Sprissler says. “I have Rent 805 rules and regulations, and any delinquency is heavily fined. Those are behavioral fees. For example, my late fee is very high, but then it’s also part of my resident benefit package to forgo that one time during the life of the tenant being in the unit. It just sets expectations.” Ultimately? “If you use good software that does a good job of screening, these questions are all resolved for you.” Free Tenant Move-In Checklist Template To help streamline the move-in process and ensure clarity for both property managers and tenants, we’ve provided a free tenant move-in checklist template. This comprehensive checklist covers all essential areas of the property and helps document its condition at the time of move-in. Property managers can feel free to customize the checklist to their specific needs. We also recommend getting legal guidance to make sure you’re covering all your bases. Tenant Move-In Checklist Property Address: Tenant Name(s): Move-In Date: General Information Property Address: Tenant Name(s): Move-In Date: Living Room Walls: Floors: Windows: Doors: Kitchen Walls: Floors: Windows: Doors: Appliances: Refrigerator: Stove/Oven: Dishwasher: Microwave: Bedrooms Walls: Floors: Windows: Doors: Closets: Bathrooms Walls: Floors: Windows: Doors: Fixtures: Sink: Toilet: Shower/Bathtub: Utilities and Systems Plumbing: Electrical: HVAC: Safety Equipment Smoke Detectors: Fire Extinguishers: Carbon Monoxide Detectors: Exterior Yard: Driveway: Outdoor Structures: Signatures Tenant Signature: Property Manager Signature: Date: Final Thoughts Remember, a move-in checklist is not just a document; it's a tool to enhance communication, establish expectations, and create a positive resident experience. Our top recommendation for ensuring a world-class resident experience is to build a resident benefits program. Second Nature has pioneered the only fully managed Resident Benefits Package for single-family property managers. Learn more about resident experience management in our State of Resident Experience Report, or explore the benefits of a Resident Benefits Package.

July 15, 2024

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Property Management Pest Control Gone Wrong: Resident Horror Stories & Nightmares

In the world of property management and real estate investing, maintaining a clean and pest-free environment is central to the well-being of the residents who live in your properties. That being said, effective property management pest control is not only a best practice, but also a strategic move that enhances your properties’ living experience, making your life as a property manager easier and your residents happier. Pest control is crucial for several reasons: Investing in pest control saves significant potential costs by avoiding large-scale infestations and property damage, enhancing resident satisfaction with a healthier, pest-free environment, and preserving property value. This approach reduces health risks, protects against liability, and maintains a good reputation by demonstrating the property management company’s dedication to providing safe, comfortable living spaces for great tenants. Ultimately, pest control sets professional property management companies apart from DIY and amateur real estate investors by safeguarding both residents' well-being and property assets. By addressing these points, you can foster a positive living environment that benefits both you and your residents. It’s important to note that our goal is not to call out “good tenants” vs. “bad tenants.” Instead, we always aim to foster a constructive dialogue focused on addressing problems and finding solutions. By emphasizing respect and fairness, we can help create a positive environment that benefits all residents, ensuring their rights and dignity are always respected. Also note that even though we here at Second Nature prefer the term "resident" over "tenant" to foster the human element, the word "tenant" may still be used occasionally due to its long-standing legal and real estate context. "House of Horror" Stories Most property managers have encountered their share of resident horror stories – and many, not for the first time. These tales often involve unexpected and severe pest infestations, made worse by residents' behaviors. Indeed, from bedbugs and roaches (the truly bad tenants any property manager is looking to be rid of) to animal issues, the range of pest problems is vast and daunting. Our "House of Horror Stories" video provides a vivid account of these situations, including some landlord horror stories that are too distressing to include here. Maggots falling from the ceiling: A tenant reported maggots falling from the ceiling onto their bed. The pest company discovered that these maggots were larvae of beetles infesting the air ducts in the neighborhood. Pets and extensive damage: Animals in one property caused extensive damage by covering all floors with feces and chewing through doors, door frames, flooring, HVAC systems, and appliances, with clean-up costs exceeding $15,000. Flushable wipes backup: A tenant flushing baby wipes caused a major sewage backup, leading to water damage throughout multiple rooms (including the living room and master bedroom), with clean-up costs close to $5,000. Donkey in the basement: During the purchase inspection, a donkey was found tied to the deck and later moved to the basement to hide it from animal control, calling for its quick removal. Rodents damaging appliances: Rats infested a property, chewing through a new dishwasher, insulation, and electrical wires, requiring repeated pest control visits and extensive repairs. These stories from a range of contributors highlight the unpredictable and often extreme challenges property managers face in maintaining their properties and ensuring the safety and well-being of their residents. How to Control Resident Pest Issues A robust pest control program is often the property manager’s best friend. After all, infestations can be difficult to proactively defend against, given that background checks, references, and tenant screening go only so far in uncovering the pest issues that can befall even the best tenants. Regardless of the challenges residents may present, a comprehensive pest control plan can mitigate potential infestations before they escalate into true horror stories. This includes timely intervention, and educating residents about maintaining cleanliness. Providing residents with clear guidelines on waste disposal and food storage can also significantly mitigate pest problems. Additionally, offering pest control services as part of a Resident Benefits Package can encourage residents to report issues early, allowing for swift action. Planning Ahead When dealing with problematic residents, it's essential to have a clear action plan. Issuing notices to clean the property promptly (e.g., with a 7-day notice period) is a critical first step. Leveraging a notice-to-clean template can streamline the process and ensure that you comply with tenant laws and legal standards. If worst things come to worst, an eviction notice may become necessary. However, this process is governed by various rules and regulations that can differ significantly across federal and state lines. It's important to be well-versed in these laws to avoid legal pitfalls. A detailed “notice to vacate” template can be incredibly helpful for property managers looking to take care of these complex situations. Nipping Things in the Bud In conclusion, maintaining a pest-free environment is integral to property management success. On-Demand Pest Control is a service in Second Nature’s fully managed Resident Benefits Package (RBP). It offers predictable, cost-effective, and fast solutions when a pest issue arises. Instead of expensive scheduled preventive treatments, residents can request service as needed. This approach ensures fast response times, directly addressing the problem at hand and saving costs over recurring treatments Property managers simply select the best pest plan from four tiers of service levels to include in their RBP. When an issue arises, the resident reports it in the On-Demand Pest Control portal, and the pest issue will be resolved. Learn more about On-Demand Pest Control by getting in touch, or read our latest study on the impact of our RBP on the resident experience.

July 3, 2024

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