Calendar icon April 10, 2023

AI Property Management: Tools, Benefits, and Challenges for the Industry

Photo of Andrew Smallwood

Andrew Smallwood

Chief Customer Officer - Second Nature

AI property management is one of the buzziest terms in the industry right now. Artificial intelligence through algorithms as a concept has existed for a long time, but with the sudden virality of chatbots like ChatGPT, members of many different industries are suddenly wondering how AI will affect their business and how they can harness it. 

The same is true in property management, an industry that has already seen something of a tech revolution in the last decade. We sat down with Wolfgang Croskey, President of The Perfect Tenant, to discuss how AI will help property managers and how it could hurt them. 

If you don’t know where to start with AI, Croskey does. In this article, he breaks down the practical applications of AI in property management with us.

Key Learning Objectives:

  • What can and can’t Artificial Intelligence do for property managers? 
  • How can you get the most out of AI tools?
  • What should you NOT try to do with AI?
  • What specific programs can you use right now?
  • Where is AI technology headed?

Meet the Expert: Wolfgang Croskey, President of The Perfect Tenant

Croskey has 20+ years of experience in the property management industry and is currently the President of The Perfect Tenant. Croskey is an early adopter of artificial intelligence in the property management space. Even though AI may feel like it’s in its infancy, and it technically is, there are already a number of programs that PMs can and are using to harness the power of the technology. 

 

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What is AI in Property Management? 

AI property management is a business strategy for real estate or property management companies to streamline, simplify, and improve their processes through software automation. New technology uses machine learning and artificial intelligence to speed up workflows, day to day tasks and even help with predictive analytics and marketing tools.

In its current state, artificial intelligence can best serve property managers by streamlining administrative work. It’s calendar clearing, essentially, by giving you more time to work on your business because you have less work to do in your business. As Croskey has implemented AI solutions into his business, he’s noted how much more time his property managers have to be property managers. 

Croskey says, “Now, with the time we have, our property managers call an owner every day just saying, ‘Hey, how’s it going?’” 

Croskey’s team is able to devote more time to elements of a great resident and investor experience. It’s ironic to think that AI is helping you forge stronger relationships with clients, but it’s true. With more time to devote to opening lines of communication and being proactive in doing so, PMs can build that experience that’s the primary differentiator in modern property management. That’s what it means to work on the business. 

“Can AI replace a property manager? No. Because at the end of the day, what is a property manager hired for? To provide solutions for crazy problems. And that's what we do. But if your whole day is filled with all this admin work, how are you going to have the energy and time to solve crazy problems? Use these tools to unload as much admin stuff as possible, so you can really focus on the property manager’s true value proposition, which is solving crazy problems and helping owners make money.” 

How to Use AI for Property Management 

So, how do you actually use these programs to cure your team of their grunt work pains? Let’s look at some of the top business areas and use cases for AI property management.

AI for Marketing 

With the rise of natural language processing tools like ChatGPT, creating unique marketing collateral has never been easier than it is right now. 

“If you are still wasting your time writing creative property descriptions, you just need to stop,” says Croskey. “Nobody reads them anyway. I’ll buy you lunch if you actually leased property because someone said, ‘You know what? That marketing description was phenomenal. That’s why I want to lease this house.’ Nobody has ever said that, so why would you spend a lot of time on it?” 

Croskey believes that tools like ChatGPT can spit out a perfectly viable description provided correct details of the property. He also says that a description, being something that is necessary but not critical, is a perfect candidate for time-saving via AI. 

“So the marketing and the copy is the thing you need to start right now. There's no reason not to do that. Nobody expects a property manager to be mighty in Word and to be a great writer. That's not why they come to our business. I'm not saying turn out garbage, but save time and have an AI tool like chatGPT or Jasper write the copy. Even if you don't use it 100%, it saves you a lot of time in that brainstorming.”

Beyond property descriptions, these tools are helping create blog content and other native web content for all sorts of businesses. Whether it’s long-form SEO writing for your website or short social posts, AI can give you at least a good template to work with. You should still make sure what you’re publishing represents your company as intended, but AI can get you really close to the finish line very quickly.

In a data-driven world where marketing is increasingly multifaceted, there are a number of other areas where AI tools can lend support. 

For instance: 

  • Crayon is a competitive intelligence tool that can help property managers track competitor activities on and off their websites, from pricing changes to new ad campaigns.
  • Copy AI is a writing assistant tool (similar to Grammarly) that helps property managers craft copy for listings as well as supporting marketing content.
  • ManyChat is a chatbot platform that can be used to interact with potential clients via AI-generated text, thus saving time in property management operations. It can also be used to create text for bots, or to improve existing copy.
  • Synthesia is an AI-driven video creation tool that can help property managers produce high-quality, engaging marketing videos without expensive equipment or specialized skills. It generates human-like AI avatars that appear to be voicing your script.
  • When it comes to the digital experience, Evolv AI identifies points where potential renters are dropping off, and provides recommendations designed to improve the buyer journey and create revenue opportunities faster.

AI for Email 

Language processing can also help with direct communication with clients, and Croskey has leveraged the same tools for that purpose as well. 

With so much communication being templated – particularly via email – things can get stale for the readers. But regularly updating email templates and follow-up communication falls under administrative work that you’d really rather not be doing. 

“Maybe once a year, take your templates, throw them into one of these AI tools, and say, ‘Hey, can you rewrite this?’ You’re just kind of freshening up,” Croskey says. 

“You could ask it to rewrite something with a more friendly tone or add some comedy to it or different things. And so now, each year, the point of the message is the same, but you're kind of making it new and exciting. 

“I can only imagine as an owner – especially if the owner has, let's say, 10 properties, and now the odds getting those different talk trigger emails is higher – that's gotta be so boring. I mean, most people don't read their emails anyways. So you might as well have some fun with it. Maybe you say, hey, this year, we want all the templates of our emails to be in the tone of Snoop Dogg. You may laugh, but you could do that, right?”

Along similar lines, AI tools such as SeventhSense's optimize email delivery times for each recipient in your database, to boost deliverability as well as target engagement.

AI for Scheduling 

Croskey has also leveraged AI tools for more robust management of his work calendars, maintenance requests, onboarding, etc. Most people have a scheduling app, but Croskey has started a real-time AI tool to go a step further. 

“The biggest problem with any basic scheduling app is the concept of priority, right? Apps without AI integrations simply look at free and busy times. For example: ‘Oh, this person wants 30 minutes. Let me find the next open spot for 30 minutes and plug them in there.’ But let's say you wanted an hour with me. If I didn't manually intervene, you probably wouldn't be able to get the hour for like two weeks because finding an hour-long spot is not going to happen. But I want to give you priority, so I had to override my account and say you know what, let's do 8 am.”

To solve this, Croskey has enlisted a tool called Reclaim.ai that’s designed to make scheduling decisions based on priority instead of just available time slots. We’ll talk more about it in the next section.

Other AI in Property Management Use Cases 

In many ways, property management represents a sweet spot for the use of AI-based assistance tools, thanks to its blend of content-rich, regulatory-intensive processes. Benefits include speedier content creation, automation of error-prone manual drudgery, and data-driven defenses against fraud and compliance lapses.

Applications include:

  • AI for generating listing descriptions 
  • AI for automating lead generation 
  • AI for property analysis and search 
  • AI for fraud detection and compliance monitoring 
  • AI for leasing 
  • AI for accounting 

Property Management AI Tools You Should Try

Croskey has used a number of AI programs to help with administrative and communications work. He goes into detail about each of them here. 

Chat GPT and Jasper

Chat GPT is a natural language processing tool publicly available at openai.com. It will write things for you while including whatever tone, keywords, structure, concepts, etc., you ask it to. 

One of the drawbacks of ChatGPT (free version) is its limit on a concurrent number of users. You can’t use it if too many other people are currently using it. Jasper is a paid alternative that relieves you of this issue, and a paid version of ChatGPT now exists as well.  

Grammarly 

Croskey says:

“The other tool is Grammarly,” Croskey says. “Grammarly on the paid level is a game changer. Because what you can do, as a company, you can establish the tone of communication for your company. Do you want it super serious and academic? Do you want it funny, more casual? You can create all those rules, and then as you're writing, Grammarly integrates itself into your web browser. Whether you're using Google Docs or LeadSimple or Asana, or anything else, it's in there. You can have it on your mobile device, too. 

“So anywhere you're writing, it’s making suggestions not just to make it grammatically correct but ‘Hey, this message may be interpreted as being too serious.’ Or ‘This message may be interpreted as being too direct.’ That's huge.”

Reclaim.ai

Reclaim.ai is a smarter scheduling app. 

According to Croskey: “Reclaim.ai is smart scheduling because it does the traditional scheduling, but then it has the ability to help you with your habits.”

“If you, for example, want to have a 30-minute lunch every day, you can go ahead and do that. And what it will do is it will find 30-minute chunks, but if an appointment comes in that you say is more important by using some rules, it will then move it around for you. So you can put in habits, but now they just released the ability for priority. 

“You can have different scheduling links, and so I have a high-priority one. If [a client] wants to meet with high priority, he gets a different link, and [reclaim.ai] will say ‘anything from this link trumps everything else,’ and it will start moving things around to give them the priority.”

“Let's say you use Google task lists, you can have it automatically go in there. So you say this task needs to be done by the 23rd, and I need 30 minutes. It finds the task, and as things trump it, it will move it around, but eventually, it gets to the point where it says, ‘You know what, you're out of moving time, this is stuck now in order for you to hit this deadline.”

KeyPilot from Keyway

KeyPilot is the AI co-pilot component of the Keyway investment platform. It's designed to research properties, draft investment memos, predict asset valuation, and analyze contracts, based on unstructured data from presentations, spreadsheets, and other documents. 

The upshot is that the tedious tasks of research, analysis, data entry, and writing are alleviated, which means that real estate teams have faster access to the data they need for fully informed decision making.

Use cases include acquisition recommendations, draft investment memos, document summaries, and asset management recommendations. 

Elise AI

MeetElise uses AI technology to support property management communications and operations processes.

The principal use case for MeetElise is its ability to answer questions in real time, which helps property managers deliver better customer service to prospects, thereby boosting the odds of conversion. 

MeetElise can be configured to automatically answer frequently asked questions across email, text, and voice call channels. This enables prospects and renters to conveniently get the information they're looking for, while alleviating the need for property managers to constantly monitor their inboxes.

Saleswise AI 

Saleswise is an AI platform that property managers can use to create content such as emails, sales scripts, social media posts, and listing descriptions. It also incorporates image tools that can be deployed for virtual room visualization and remodeling. 

Saleswise acts on live listing data and neighborhood insights, and outputs are customized based on the user's professional profile and client notes. 

GetFloorPlan AI 

GetFloorPlan AI creates detailed 2D and 3D floor plans, as well as 360° virtual tours. Property managers can upload floor plans or sketches and receive rendered materials within 30 minutes. This is a quick and easy way to enhance property listings as well as customer engagement.

Epique

Epique AI helps property managers generate content, streamline workflows, and improve marketing efforts. Along with content such as blog posts, Epique AI also generates images, newsletter campaigns, lead generation ideas, realtor biographies, and Instagram material. 

Additional capabilities include broker advice and state-specific legal assistance.

EasyListing.info

EasyListing.Info is an AI tool for creating compelling, SEO-optimized property listings in seconds. Property managers simply supply details such as the address and property type and EasyListing.Info will generate a listing description tailored to their needs and target audience. Property managers are also prompted to highlight five to ten key features of their property, which are then incorporated into the listing. This shortcuts the overall listing creation process, and boosts listing findability.

What You Shouldn’t Automate with Artificial Intelligence  

While AI can solve tons of issues and make work better, there are still functions that are better accomplished by a human being. 

Think about it this way: Have you ever used a power drill? It’s a pretty useful tool. If you measure correctly, mark your holes cleanly and accurately, use the right screw, and apply the right amount of pressure, a power drill will help you hang something on the wall. But if you just throw your drill at the wall and hope for the best, it will only leave you with a beat-up wall. 

This is a story about artificial intelligence. AI is a tool. It’s not a magic bean. If used incorrectly, AI can do more harm than good. Here are two common pitfalls of over-dependence on AI.

Creating Business Policies and Procedures

Croskey says: “The reality is that if you don’t have your policies and your procedures, there is no tool on earth that is going to save your bacon. You gotta roll up your sleeves, and you gotta get through that. Look at McDonald’s. At one point, somebody had to roll up their sleeves and make the process of how to build the Big Mac. It probably took quite a while to do that, but now that it’s done, they haven’t changed the Big Mac for at least 40 years. It’s still the same nasty hamburger.” 

Property management AI can help you repeat your processes, but it can’t create them for you, and it can streamline them, but it can’t optimize them for success. 

For example, say you’re writing a blog post for your website. You still need to do your research on what topics create the best opportunities for you to generate organic website traffic. You still have to decide what stance, if any, you’re taking on the subject. You still have to decide what tone you want your content to take. This is the information that can then be fed to AI to rapidly create the content. But the macro decision-making still has to be you. 

That’s the single biggest mistake you can make here, expecting the tool to use itself. 

Overreliance on technology is kind of an innate vulnerability with tools so robust. Croskey is quick to clarify that such a mistake can lead to notification overload, where you can’t keep up with everything that all these tech tools are delivering to you. You still have to be aware of what’s going on in your business. 

Training Personnel

The veteran PM also notes that, just like with any new tech, proper training for the team is of critical importance. 

“Really do your team justice by providing them training, providing them opportunities, not just saying, ‘Okay, starting tomorrow, we're using Jasper, have a nice day.’ Really do some training.”

For training, Croskey recommends the non-AI tech tool, Loom. You can create screen recordings and build a library of training materials for your team. 

“Loom does provide transcripts of the videos, too,” Croskey says. “You could take those transcripts and say, ‘Hey, chatGPT, Could you write me a summary of this?’ And it will do it. So now you can put that summary in your email.”

A big part of AI implementation is understanding what’s actually happening. This may seem tedious and unnecessary, but people leave companies for less. You can’t just have one person in charge of AI with everybody else completely unaware of how it’s working for the business. Croskey likened this scenario to one employee holding bank login info and then leaving the company. It’s a headache that can be avoided with solid education of the team. 

Future of A.I. in Property Management: Where Does AI Go Next?

As of now, the strategies above outline how Croskey and other PMs are finding value in artificial intelligence. AI will continue to evolve, and the technology is going to build advancements more for PMs in the future, especially with integrations with property management software.

“Right now, all the AI is around language because I think it’s probably easier,” Croskey says. “I think the next step is going to be the math and numbers side, being able to look at your numbers, your portfolio, your financials, and start making recommendations from that.”

Croskey predicts that AI could aid in ROI analysis and decision-making, essentially doing analytics of data points associated with specific properties and identifying trends and associations within your portfolio that can help you increase the profitability of your doors. 

The last place you’ll see AI reach, according to Croskey, is the maintenance realm.

“There's a reason why nobody has really fully nailed down maintenance,” he says. “There are just so many variables and one-off things that it's hard to get a machine to learn that. For example, work orders come in, and the tenant says, ‘Oh, my toilet is leaking.’ Well, is it leaking from the floor? Is it leaking underneath? Is it just running? So there are three variables right there. Is it a low-flow toilet? Is it not a low-flow toilet? There are variables there. There are just all these things that can be going on that make maintenance hard. So I think that maintenance is going to be later in life.”

Final Thoughts 

AI property management tools are nothing to be afraid of and can be a massive support to streamlining business processes, workflows, and day-to-day operations. Many leaders in property management are already leveraging AI apps and products to make their work better.

The true benefit of AI is that it can automate busy work and repetitive tasks – freeing you up to be strategic, focus on relationships, and build better resident experiences. AI tools help PMCs keep up and compete with commoditization, as well.

Follow us on LinkedIn, Twitter, or Facebook to stay up to date on these AI conversations. We’ll keep the conversation going and continue to deliver the best insights from experts across the industry.

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Hear more from Wolfgang Croskey and other PMs who have used AI on the Triple Win Property Management podcast.

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You might not be surprised to hear that at Second Nature we get asked this a lot: "Exactly what is a resident benefit package?" Or "What is a tenant benefit package?" Simply put, a resident benefits package (RBP) is a suite of services provided by the property manager to make life easier for residents. In today’s marketplace, residents and property investors expect a certain level of ease, convenience, and support. Property managers have noticed that beyond reacting quickly to requests, residents want their needs proactively anticipated. And they're willing to pay and stay for it. (Ready to get started now? Build your Resident Benefits Package today!) In this article, we’ll explore what a resident benefit package is, how it can generate revenue, and how to implement a resident benefits package (RBP) to give your residents, investors, and business a win. What is a resident benefits package (RBP)? 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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. 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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. 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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 setup 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 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 up front. 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 on-demand 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 deliver 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 mandatory resident benefit package – ensuring the maximum benefits for your investor – or allow residents to choose? What is legal or not? We do recommend mandatory rollouts to create the most ease for you, your investor, and your residents. Having a choice may give residents a short-term positive experience, but in the long term won’t be much of a benefit. Mandatory resident benefits packages tend to go much smoother and eventually have higher benefits for everyone involved. According to Second Natures 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 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! 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. 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. 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. 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. 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. 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. 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. 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. 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. 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 its 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-do-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

Calendar icon May 1, 2024

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Property Management Outsourcing Services: Example Tasks & Best Providers

Virtual assistants are becoming increasingly important in the property management industry for a number of reasons. First are the associated efficiencies. Property managers often wear many hats, juggling tasks like resident communication, lease agreements, maintenance requests, and advertising. A virtual assistant can handle many of these administrative and repetitive tasks, freeing up the property manager's time to focus on more strategic initiatives. Virtual assistants can also act as a communication "hub" between residents, property management companies, and service providers. They can field calls and emails, schedule appointments, and ensure everyone is on the same page. In the same vein, virtual assistants can help with tasks related to online advertising for vacancies, managing a social media presence to attract potential residents, and even creating basic property videos or photos for listings. It’s important to note that virtual assistants are not a replacement for in-house staff. Instead, they allow staff to focus on important tasks that add value, as opposed to time-consuming manual operations. In today's post, we'll provide concrete examples of how virtual assistants can help property managers, the pros and cons of using these services, and a brief directory of property management virtual assistant service providers. Note on language: In the interest of clear communication, particularly regarding legal matters, this blog post may occasionally use the term "tenant" in reference to residents. While "resident" reflects the valued community we aim to support, service provider agreements and other legal documents today typically use the term "tenant." For the majority of this post, however, we'll utilize the term "resident" to best represent the positive and collaborative atmosphere we aim to cultivate. 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. Example property management tasks you can outsource to virtual assistants The number of tasks property managers can outsource has increased over time, as companies have become more comfortable with geographically dispersed teams, and as virtual assistants themselves have become more sophisticated (better communication skills, task automation capabilities, and access to information). Given that the benefits of outsourcing to virtual assistants are on the rise, here is a sampling of tasks that can currently be outsourced to virtual assistants. Outreach to homeowners for management Virtual assistants can be a property management company's secret weapon for improving homeowner outreach in a few key ways. Given that property managers often manage a large number of properties and homeowners, virtual assistants can handle sending personalized emails, texts, or even making phone calls to homeowners. As indicated above, they can also help manage the property management company's social media presence, posting updates, building trust, and boosting its brand presence to property owners. Property assessments While virtual assistants can't directly conduct rental property assessments, which typically involve a qualified professional inspecting the property's condition, they can provide valuable support throughout the assessment process by gathering and organizing property information crucial for the assessment (for example, details such as square footage, number of bedrooms/bathrooms, year built, major renovations, and past maintenance upkeep records). They can also compile relevant data from property management software or online real estate industry resources. Virtual assistants can also manage the scheduling of property assessors and ensure clear communication between the property owner, property manager, and the assessor. This involves sending appointment reminders, handling any cancellations or rescheduling needs, and keeping everyone informed throughout the process. Once any given assessment is complete, a virtual assistant can help process and organize the assessor's report. This might involve formatting the report, creating digital copies, and ensuring it's easily accessible to the property manager and owner. Creating and presenting management proposals Virtual assistants can be a highly cost-effective asset to property management companies when it comes to creating and presenting management proposals. For instance, virtual assistants can save a lot of time by gathering data on comparable properties in the area, including rental rates, vacancy rates, and recent sales. They can pull this data from industry reports, rental listing websites, or public property records. They can also compile details about specific rental properties under management such as square footage, amenities, maintenance history, and any unique features. This ensures the proposal accurately reflects the property's value and the services offered. In addition, virtual assistants can alleviate the hassle of creating or maintaining templates for management proposals, ensuring consistency in branding and formatting. This saves time and ensures a professional presentation. As far as actual proposal presentation is concerned, virtual assistants can handle the electronic delivery of the proposal to the client and schedule follow-up calls or meetings to discuss the proposal details and answer any questions. If the property manager is competing against other companies, a virtual assistant can help research competitor offerings and identify areas where your proposal can stand out. Determining property rent In addition to the market research capabilities mentioned above, virtual assistants can gather data on rental trends in the target area. This includes vacancy rates, as well as recent rental listings for comparable properties (similar size, bedrooms, amenities) and their advertised rent prices. They can find this information on rental listing websites, property management software, or public rental databases. Virtual assistants can also handle initial communication with investors to understand their rental expectations and any specific goals they might have (e.g., maximizing rent vs. filling the vacancy quickly). Creating and organizing property photos and marketing material Virtual assistants can be a game-changer for property management businesses when it comes to creating and organizing property photos and marketing materials. If professional photography is required, a virtual assistant can schedule appointments with photographers, and even perform basic photo editing tasks like cropping, and adjusting brightness and contrast. This ensures a clean and polished presentation of the property. They can also create file-naming conventions for these photos, in order to make them easily searchable for future use in marketing materials or listings. As far as marketing materials are concerned, virtual assistants can create or maintain templates for various materials, ensuring consistent branding and design across all platforms. This saves time and creates a professional look while delivering cost savings. Advertising the property Virtual assistants can be highly beneficial for property management companies when it comes to advertising their properties. For instance, virtual assistants can create and manage listings on various online rental platforms, ensuring accurate and up-to-date property information reaches a wide audience of potential tenants. They can also optimize listings with relevant keywords to improve search ranking. On the social media channel, virtual assistants can help create targeted ads with eye-catching visuals and compelling descriptions highlighting the property's best features. They can also schedule ad posts and track their performance to optimize future campaigns. In general, virtual assistants can create and manage a content calendar for property promotions. This can include scheduling social media posts, email blasts to potential residents, or even blog posts showcasing the property and surrounding neighborhood. Responding to inquiries Virtual assistants can be the first point of contact for prospective tenants who inquire about a property through listings, social media, or the company website. They can answer basic questions, schedule viewings, and qualify leads to ensure they are a good fit for the property. Likewise, when it comes to responding to inquiries from potential investors, they can assess the lead quality and guide the initial conversation. Vetting resident applications Virtual assistants can be a valuable asset in the vetting process for property management companies. For starters, they can handle the initial processing of rental applications, collecting and organizing applicant information, as well as lease agreements and supporting documents. This frees up property managers to focus on reviewing qualified applications. They can also manage initial communication with applicants. This might involve sending automated emails with application instructions, answering basic questions about the property or application process, and scheduling appointments for viewings. Many property management companies use tenant screening software that virtual assistants can be trained to utilize, ordering credit reports, background checks, and eviction history reports efficiently. Approving a tenant application after review Virtual assistants can play a crucial role in streamlining the post-review approval process for property management companies. Once the property manager approves an applicant, they can handle initial communication with the new resident. This might sending a lease agreement electronically, explaining signing procedures, and collecting e-signatures. Virtual assistants can also coordinate move-in logistics, such as scheduling move-in property inspections, providing information on utility activation, and sending welcome packages with important building information and resident resources. Lease preparation Virtual assistants can help to streamline the process of lease preparation while minimizing the potential for errors. At a minimum, they can gather essential information from the approved application and property details to populate lease templates. This might include resident names, contact details, leasing terms, rent amounts, and security deposit details. Many property management companies use pre-defined lease templates with standard clauses outlining They can then handle initial communication with the approved resident about lease signing. This might involve sending the lease electronically, explaining signing procedures, and answering basic questions about lease terms and conditions. resident responsibilities, maintenance procedures, and lease termination processes. Virtual assistants can ensure these clauses are included in the lease agreement. They can also review completed lease agreements for any typos, inconsistencies, or missing information before sending them to the resident for review and signature. Lease renewals Virtual assistants can also help streamline the process of lease renewal, thereby helping to increase resident retention. For example, virtual assistants can monitor lease agreements and identify upcoming lease expirations. They can then create a timeline for initiating communication with residents about potential renewals, via personalized emails or letters to residents approaching the end of their lease term. These messages can express appreciation for their residency, highlight the benefits of renewing, and outline the renewal process. Virtual assistants can also track resident responses to renewal offers, flagging those requiring further discussion with the property manager. They can also generate reports on renewal rates, providing valuable data for analyzing resident retention strategies. Running tenant background checks While virtual assistants can't legally conduct background checks themselves, they can be a valuable asset in streamlining the process for property management companies. This might include managing the initial steps of collecting and organizing applicant information crucial for background checks. This includes details like full names, Social Security numbers (with applicant consent), and previous addresses. They can also help maintain standardized forms with clear instructions for applicants regarding background check consent. This ensures applicants understand the process and provide the necessary authorization for releasing information to background check companies. Organizing tenant records Virtual assistants can be instrumental in bringing order to record-keeping processes, from data entry and management to record-keeping and accessibility. They can handle the initial data entry of resident information from applications, including names, contact details, emergency contacts, lease details, and pet information. This ensures all crucial information is captured and readily accessible. Virtual assistants can upload and organize various tenant documents electronically. This might include lease agreements, signed addendums, rental history verifications, and maintenance request records. They can also create a filing system for easy retrieval of documents when needed. Note that virtual assistants should be trained on data security and privacy regulations to ensure the confidentiality of resident information – while virtual assistants can manage record-keeping tasks, the property manager should maintain oversight and ensure compliance with data protection laws. Invoicing and accounting Virtual assistants can handle a range of tasks related to recording rent payments, managing maintenance expenses, and categorizing various property management costs For example, virtual assistants can help set up secure online payment portals for residents to easily submit rent payments electronically. On the tracking side, virtual assistants can track incoming payments, reconcile bank statements, and ensure accurate records are maintained. Virtual assistants can then generate basic financial reports for the property manager, summarizing expenses and overall property income. This allows for better financial tracking and informed decision-making. Many property management companies utilize accounting software. Virtual assistants can be trained to use these platforms, automating tasks like data entry and simplifying record-keeping. Best property management virtual assistant services providers Identifying the "best" virtual assistant service provider will of course depend on your specific needs and budget. First, we'd recommend that you determine the specific tasks you want your virtual assistant to handle (e.g., advertising, resident communication, bookkeeping), then conduct research on different providers, and compare their services offered, pricing structures, and experience with property management. Also look to online reviews and ask potential providers questions about their screening processes, and data security measures. We're highlighting a couple of providers below that focus exclusively on property management, as well as a short list of solutions that include property management in their overall focus. Virtual Property Management Solutions VPM Solutions is a platform designed specifically to connect property management and real estate businesses with virtual assistants. Learn more Purple Powered Virtual Assistant Purple Powered Virtual Assistant (PPVA) specializes in providing virtual assistants specifically catered to the property management industry. They focus on connecting property management companies with qualified VAs as well as ensuring those VAs have the necessary skills to excel in the role. Learn more Honorable mentions Virtudesk Virtudesk specializes in virtual assistants for various industries, including property management. They offer a proven track record and a focus on quality service. Learn more MyOutDesk Known for their expertise in real estate and property management, MyOutDesk offers virtual assistants with experience in tasks relevant to the field. Learn more Wishup This company boasts a user-friendly platform, offers flexible pricing plans, and has a quick onboarding process for virtual assistants. Learn more Pros and cons of using property management virtual assistants Overall, virtual assistants can be a valuable asset for property management companies, boosting profitability, resident satisfaction, and business growth. However, careful vetting, clear communication, and training are necessary to mitigate potential downsides related to quality control, local regulations, legal issues, and retention. Pros of using virtual assistants in property management Increased profitability Virtual assistants can handle tasks like advertising and resident communication, freeing up property managers to focus on maximizing rental income and minimizing vacancies. Improved tenant satisfaction Virtual assistants can ensure timely responses to new tenant inquiries and manage resident portals, leading to a more responsive and efficient experience for residents. Streamlined bookkeeping and reporting Virtual assistants can assist with bookkeeping tasks and help generate accurate financial reports, allowing for better financial management. Support for business growth Virtual assistants can handle administrative tasks and marketing efforts, reducing the overhead costs of executing this work, and freeing up property managers to focus on growing their business and taking on new clients. Cons of using virtual assistants in property management Quality control challenges Ensuring the quality of services provided by virtual assistants can be tricky, especially for complex tasks like legal compliance or resident screening. Potential legal issues Data security and privacy become a concern when sharing property information with virtual assistants. Clear contracts and data security measures are crucial. Retention challenges Finding and retaining qualified virtual assistants can be difficult, especially for specialized tasks within property management. Maintaining resident satisfaction Reliance on virtual assistants for initial communication with residents might lead to impersonal interactions, potentially impacting satisfaction. Limited expertise Virtual assistants may not have in-depth knowledge of property management regulations or local real estate market nuances compared to experienced property managers. How 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 can be through property management service outsourcing. At Second Nature, we’ve pioneered the first-ever fully managed Resident Benefits Package. The 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. 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 what's important to them.

Calendar icon April 29, 2024

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