Triple Win Property Management Blog

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

Selling a rental property can be complex, especially when residents are involved. But there are plenty of ways to notify your resident 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. In some legal and compliance situations, we'll also use the term "tenant". What is a notice of sale of property letter? A notice of sale of property letter is a formal communication informing a resident that the property they're renting 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 lease terms and local laws. If the resident 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 Real estate investors might have a variety of reasons for selling a rental property. We’ll break down some of the most common scenarios below: Potential for significant financial return: In many cases, the property has appreciated significantly, and selling now could provide a substantial profit for the owner, who wants to capitalize as soon as possible. Eliminating property management responsibilities: Perhaps managing the property has become too time-consuming or challenging, so selling is the best option to free up time and energy. Freeing up capital for other investments: Maybe the owner is looking to reinvest in a different type of real estate, another location, or other markets entirely. Changing financial priorities: Financial needs, such as funding retirement or other investments, may be 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 may mean finding and establishing another source of income. Potential legal challenges: Selling an occupied rental property may involve complex laws and regulations and logistics. If not handled properly, this could lead to complications down the line, including legal action from the tenant. Reputation: For professional property managers, reputation is everything. If the sales process isn't handled smoothly, it may sour the reputation with the resident, causing them to leave a negative review. Rights of tenants when the property owner sells the property Tenant rights must be respected when throughout the entire process of selling a property. Knowing these rights and planning accordingly can help you avoid legal trouble in the future. 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 for leased properties: Depending on your state or city, there may be detailed regulations about how to handle a rental property sale. For instance, some areas require the purchaser to honor the current lease terms and allow the resident to remain in the home. 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. 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. Property owners should not shut off utilities during the sale process. Additionally, if you plan to conduct maintenance or repairs, you will still 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 residents 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. Security deposits: If the tenant moves out before the sale, their security deposit must be handled appropriately. In many cases, the deposit should be transferred to the new owner, who will hold it until the tenant vacates the property. In other cases, the security deposit may be returned, and the new owner will be responsible for collecting a new security deposit. 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 security deposit belongs to the tenant and must be transferred to the new owner to be held until the tenant moves out. What should the sale of property letter include? When notifying your resident of a property sale, the letter should cover several essential points. To help, we’ve put together a breakdown of what should be included. Basic information Start with your name or your property management company name, the date, the tenant name(s), and the property address. Include your contact information for any questions the tenant might have. We recommend addressing the letter to all residents who are listed on the lease. 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 be going on the market, and that they may need to cooperate with upcoming property showings. Showing information Include information on how much notice you’ll provide before a property showing. If state laws require specific notice periods, cite them to reassure the resident that their rights are being respected. Clarify that any showings will be conducted by licensed real estate professionals, and be considerate of the resident's schedule. Responsibilities before the sale If the resident 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 resident to keep the property in great condition. In all cases, be polite and professional, and make sure the resident 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 resident and foster goodwill. Relocation support If you manage other properties, you may wish to let the resident know of any available openings, but this is completely optional and just a common courtesy you can provide to help ease the transition. Opportunity to purchase If your property management company offers any kind of home buying assistance, you may consider selling the property directly to the resident. If you're open to the possibility of selling to the resident, include that in your letter and let them know who they should contact for more details. This is especially valuable if your management company also operates a real estate brokerage and you're representing the seller in the sale. 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. Feel free to 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.

May 19, 2025

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How to Write a Friendly Rent Increase Letter + Free Template

They're every resident's least favorite thing: rent increases. But for property managers, increasing rent is a necessary part of your fiduciary duty to investors. When it comes time to implement a rent increase, it's important to communicate with your residents clearly and professionally. The goal is to minimize conflict and prevent any unwanted surprises. Writing a rent increase letter is a critical first step in this process. By clearly communicating the reasons behind the rent increase, such as inflation and increased operational costs, you can help your residents understand the rationale behind your decision. A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” to emphasize the human element of property management work. However, there may be instances where terms such as "tenant" are used for legal or industry-standard purposes within documents or communications. In these cases, please know that our intent remains the same – to provide clear, accurate, and meaningful information to all people involved in the business relationship. When should you increase the rent? You should be considering rent increases periodically to keep up with the rising costs associated with property maintenance and management. Specifically, inflation drives up the costs of utilities, repairs, labor, and general upkeep, making it essential to adjust rents to cover these expenses. Other rising expenses include property taxes, insurance costs, and even the costs of improvements—all contributing to the need for rent increases. By aligning rent adjustments with these economic factors, property managers can ensure the financial sustainability of their properties while continuing to provide quality living conditions for their tenants. What to consider when increasing the rent There are several factors to consider to ensure fairness and transparency during a rent increase. These considerations will not only help in setting a rent increase amount that's justified, but also in maintaining a positive relationship with residents. Rent competition Understanding the rental market's competition is crucial. Evaluate the current market rates for similar properties in your area – this will help in setting a competitive yet reasonable rent increase that aligns with local conditions. Lease term Consider the length of the lease term currently in place. Typically, longer lease terms might warrant smaller, more gradual increases to retain residents, while shorter terms may allow for more frequent adjustments based on market trends. Changes to property value An increase in property value can often justify a rent increase. This should reflect market conditions, the property's value, and any improvements that have been made during the lease term. Transparency about how this amount is calculated can help mitigate resident concerns. Additional property costs Make sure you're also considering any increases to other property costs. For example, if the property is a condominium or is in a home owner's association, factor in any special assessments or increases to dues. State notice period requirement Each state has specific legal requirements for notice periods before a rent increase can take effect. Ensure that you comply with these regulations to avoid legal issues and give residents enough time to plan for the change. Security deposit Review the impact of the rent increase on the security deposit. In some states, the security deposit may need to be adjusted in accordance with the new rent amount. Ensure that any changes are clearly communicated and legally compliant. Reasons to send a rent increase letter Sending a rent increase letter is a necessary step in maintaining transparent and professional relationships with residents. Here’s why they're essential: Legal compliance Some states and localities may have specific requirements dictating how a rent increase is communicated. A rent increase letter can help you stay compliant with notice periods and documentation. It serves as an official record of the change and helps protect against potential disputes. Clarity and transparency Providing a written notice offers clarity to residents about the new rent amount, the effective date of the increase, and the reasons behind it. This transparency helps maintain trust and minimize misunderstandings. Communication is one of the top factors in resident retention, so make sure you're putting in time to make things clear. Professionalism A formal rent increase letter reflects a professional approach to property management. A well-written letter will come across as intentional, well thought out, and respectful, rather than making residents feel like you're just making decisions on the spot or without solid reasoning. Record keeping Documenting rent increases helps maintain accurate records for your team, the investor, and the resident. This can be crucial for future reference, additional lease renewals, or if any legal issues arise. By considering the factors that go into the rent increase and clearly communicating the reasons, property managers can ensure a smoother transition and foster a positive relationship with their residents. What should a rent increase letter include? Here's what should be included in a rent increase letter to ensure your residents have all the information they need: 1. Friendly tone Use a warm and polite greeting while also keeping things professional. Express appreciation for the resident's tenancy, and highlight any specific areas where they've gone above and beyond. Regardless of any past tension, make sure to keep a respectful tone throughout. 2. Resident information Include the names of all residents on the lease, even if you primarily communicate with only one resident. Include the address of the property. Mention the end date of their current lease agreement. 3. Clear announcement of rent increase State the effective date of the rent increase. Clearly outline the new monthly rent amount. If applicable, mention any changes to additional fees like utilities, parking, or pet rent. Include any information on how the rent increase will impact the security deposit, if applicable. 4. Justification for the increase Highlight the specific reason or reasons for the rent increase. This could include rising property taxes, increased maintenance costs, market value adjustments based on comparable rentals, or significant property improvements you've made. Be specific and provide data or evidence to support your claims whenever possible. For example, mention the percentage increase in real estate property taxes or highlight the specific property improvements that are enhancing the resident's living experience. 5. Consequences of nonpayment Clearly explain the consequences if the new rent amount is not paid by the specified date. You can cite the terms of the lease agreement to reinforce these consequences. Remind the resident of the potential late fees or penalties that may apply. Describe the steps that will be taken if non-payment persists, such as the issuance of a notice to vacate or potential eviction proceedings. Emphasize the importance of timely communication from the residents if they foresee difficulties in making the payment, and encourage them to discuss potential solutions or payment plans. 6. Next steps for the resident Be clear about whether the resident needs to take any action in response to the change. For example, if they have automatic payments set up through their resident portal, be clear about whether they'll need to adjust the payment amount, or whether your property accounting software will automatically draw the new amount moving forward. Briefly remind residents of their right to review their new lease agreement. Express your willingness to answer any questions they may have regarding the rent increase. Clearly state your contact information (phone number and email address) for easy communication. Sample rent increase letter template Below is a template you can use for your rent increase letter. Simply customize it with your specific information. [Your Property Name and Contact Information] [Date] [Resident names] [Address of rental property] RE: Rent increase effective [effective date] Dear [Resident names], Thank you for continuing to rent with us. This letter is to inform you of an upcoming rent increase for [property address], effective [effective date]. Your current monthly rent of [current rent amount] will be adjusted to [new rent amount]. Additionally, [mention any changes to additional fees, e.g., "the monthly pet fee will increase to $XX"]. We understand rent increases can be disruptive, and we want to be transparent about the reasons behind this adjustment. The increase is necessary due to [list specific reasons for the increase, e.g., "rising rental rates for comparable units… ," or “neighborhood revitalization resulting in enhanced value…”]. [If applicable, provide data or evidence to support your claims]. We value you as a resident and appreciate our relationship. You have the right to review your lease agreement if you have any questions about its terms. We are also happy to answer any questions you may have regarding this rent increase. Please feel free to contact us at [phone number] or [email address]. Sincerely, [Your name and the name of your property management company] For example, our rent increase template looks like this: How to send a rent increase letter There are multiple things to consider when choosing how, logistically, to deliver a rent increase letter. You want to keep the process as simple as possible, but you also may need verifiable proof of the notification in case of any future disputes. First and foremost, you’ll need to consider local regulations. We highly recommend consulting with a lawyer specializing in landlord-tenant law to determine the mandated method for delivering rent increase notices. Some states or municipalities may require certified mail or another verifiable method (e.g., signed delivery receipts). Don't skip this step; non-compliance with local regulations can lead to legal issues down the line. Delivery method options Certified mail: This is generally the safest option. Certified mail provides a receipt confirming the letter's delivery and the date it was received. This documentation can be crucial in the event that there's a future dispute or legal proceeding. While certified mail is slightly more expensive than regular mail, the added security it offers can be worth the cost. Regular mail with signed delivery receipt: This option offers some level of proof of delivery but may be less secure than certified mail. While unlikely, residents can potentially refuse to sign for the receipt, leaving you with more work to do to make sure they're informed. Hand delivery: If feasible, handing the rent increase letter to the resident in person and obtaining a signed receipt is the most secure method. This is more challenging for scattered site properties. Note that while some residents might appreciate the convenience of email, it isn't always the most reliable notification method. Consider your residents' demographics and preferred communication channels when selecting your delivery method. Regardless of what you choose, the original lease agreement you have with your residents should explicitly state acceptable methods for delivering important notice letters, including rent increases. Make sure you're adhering to the guidelines set out in the lease. A note on property accounting software Property accounting software can be useful for maintaining a centralized repository of all your communications with residents, including rent increase letters. It's also a useful tool for furnishing clear audit trails and documentation in case of disputes. Make sure that the terms outlined in your rent increase letter are accurately reflected in your property management software to prevent any accounting mishaps. Rent increase FAQs Q: How many days’ notice of rent increase do residents need to be given? A: The required notice period for a rental increase can vary depending on your location and the terms of your lease agreement. In general, most states require that residents be given 30 to 60 days' written notice before a rent increase takes effect, though this can vary for year-to-year lease renewals vs. month-to-month. It's important to check local rent control regulations for specific details on timeframes, and consult with a local attorney if necessary. Q: Can the rent increase be contested? A: Depending on your location and specific circumstances, residents may have the right to contest a rent increase. For example, rent control laws in some jurisdictions allow residents to challenge rent hikes that are deemed to be excessive. It's best to obtain legal advice from a lawyer specializing in applicable local laws and state laws to understand your options. Final thoughts Prioritize clear communication and transparency, and you’ll find you can navigate rent increases effectively while maintaining a healthy and positive relationship with your residents. Every interaction you have with a resident shapes the way they think and feel about you. The way you communicate a rent increase can make all the difference in your renewal rate and resident satisfaction. It’s also the perfect opportunity to introduce a Resident Benefits Package (RBP) and remind residents of your role in adding value to their living situation. Learn more about the benefits of Second Nature’s fully managed RBP.

May 14, 2025

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9 Marketing Ideas to Unlock Growth for Your Property Management Company

Like small business owners everywhere, broker/owners face the constant challenge of marketing their companies. In the era of AI, big data, and digital marketing, it can be tough to keep up with the latest trends and technologies. Effective property management marketing will leverage today's digital tools, but not at the expense of the human touch that's essential to the industry. A property management marketing plan should include a clear strategy, multiple channels, and measurable, achievable goals for growing your portfolio. In this article, we'll dive into the process of constructing a strong marketing strategy for your property management company, and cover nine of the top marketing ideas for property management. We’re joined by Rodney Hays of Geekly Media, a marketing consultancy built for the real estate industry. How to market a property management company Marketing is a wide-ranging field, so in order to help you focus your efforts, we've identified nine property management marketing ideas to help you grow your PMC. We know margins can be tight, so we've prioritized tactics that are cost-effective and have high return on investment. 1. Get disciplined about content marketing Some of the most successful property management leaders have built their go-to-market strategies on content marketing. Content marketing is media creation (think videos, podcasts, articles, social media) designed to inform rather than to persuade. A good content marketing strategy is designed to meet potential clients where they are, and answer the questions they're asking. This includes platforms like Facebook, LinkedIn, and Google, where investors and potential investors consume real estate investment content. The goal of content marketing is to provide value to your target audience, giving them useful information and gradually building their trust. Ultimately, good content establishes your company as a subject matter expert. So, what kind of content is useful in property management marketing? Start by thinking about the kinds of questions your audience is asking. Here’s what Rodney Hays has to say: “[Real estate investors] are going to ask questions about lease agreements and tenant screening. They’re going to ask questions about evictions, emotional support animals, those types of questions are always going to come up." For more on content marketing, listen to this episode of the Triple Win Property Management Podcast, where Pablo Gonzalez outlines community building and organic marketing. 2. Invest in SEO to build organic traffic Search engine optimization (SEO) is the process of optimizing a website for search engines and their users, so that your website ranks highly in search results and increases organic visibility. It helps extend your online presence. Search engines—most notably Google—are still the first place most people go to find information or answers. Content hosted on your website that addresses the most common questions your target audience is asking can position you well on the search engine results page (SERP), leading to increased website traffic. So how do you find out what topics to build content around? SEO tools, such as Semrush and Ahrefs, have an incredible database of keywords and common search terms, along with insights like how much search volume there is, how much competition exists in the rankings, and how often searchers click into various results. These types of tools can even show you what types of questions searchers typically ask. User questions can be great topic ideas for new content on your website that can drive relevant traffic. There are countless blogs and agencies that offer best practices for SEO, but when you're just getting started, our biggest piece of advice is this: write genuine content in your own voice. Don't try to trick search engines into ranking your content higher, and definitely don't plagiarize from other websites. Google is smarter than you think, and if they suspect you're trying to game the system, they'll punish your website. 3. Build a content distribution strategy Once you’ve developed content that speaks to your intended audience, what happens next? The next step to build a high-quality content distribution strategy. In others words, figure out how to get your messaging in front of your target audience. While a lot of people will find it organically, you should always be doing more to make sure it reaches them. A distribution strategy involves assessing where your primary audience is on a daily basis. Social media platforms, email, direct mail (aka "snail mail"), podcasts, regional conferences, and local ad listings are all examples of distribution channels. Start by identifying what pieces of content best match each platform. For example, a longer form piece should be linked via social media with a catchy blurb or graphic to hook your readers. Short form content can be its own social post with no link needed. You can send regular newsletters or other email campaigns to share your content, too. A few of the best ideas for distributing your content: Share on social media: Twitter, Facebook, Instagram, LinkedIn, TikTok Link to and reach out to real estate professionals and bloggers Ask to share guest posts on sites related to property management or real estate Connect with industry podcasters and apply to be a guest on their show 4. Create an email list Email marketing is one of the most effective ways to reach your target audience and nurture leads. A carefully crafted email can increase sales and your bottom line. With all that said, it can be tough to get email marketing just right. According to MailChimp, the average open rate for property management emails is just under 20% and the click-through rate is less than 2%. Not great, we know. That’s why building the right email list can make all the difference. Creating a targeted email list requires a good amount of research, knowledge of your target market, and email marketing tools like Hubspot, ZoomInfo, or Klaviyo. 5. Build and execute a social media marketing strategy Social media is something of an art and a science. Your social media strategy should include connecting and communicating with important accounts in your area and industry. Think of it like digital networking. The goal is to gradually interact with, build trust with, and provide value to likeminded people. For every piece of content or event you plan, you need to map out how you will share it on social media. Rodney Hays of Geekly recommends sharing new content and industry news updates across social channels whenever they’re updated. “Our customers will put their industry news page out there; they'll pull in like 15 or 16 new articles every month. And then, out of those 15 or 16, we will take eight of those and put a third-party link in it and send those out on social media as well. And I think that's done pretty well in bringing in some different traffic that you know, it's just another resource for the people that might be visiting your page,” says Hays. 6. Invest in online advertising Paid marketing efforts for property managers are more about visibility and awareness. They’re especially useful in reaching people who may not have heard of your company before, but who are looking for services like yours. Hays notes that Geekly clients opt for Facebook and LinkedIn for targeted social advertising, because they have the most active property management communities. They also tend to generate the most value for your investment. “Facebook ads are a great gateway into paid ads, since Google ads typically require a much higher budget to get similar performance. Facebook in the past has had a lower cost per click, so you’re getting higher performance from it for less lift and less spend, which is why I recommend it as a really good starting point.” Both LinkedIn and Facebook have put significant effort into making advertising aseasy to run as possible. They both include features like geotargeting, which is essential for property managers who operate locally. “One thing I do love about Facebook ads, like with any other kind of paid ads, is that you can geotarget. Especially with property management and real estate, it makes sense that you’re going to target a specific area because, depending on the scale of your PMC, you probably don’t have properties across the nation." 7. Manage your online reputation Your online reputation is made up of all the touchpoints anyone could have with your brand online. This includes Facebook, LinkedIn, Instagram, Twitter, Google Reviews, Yelp, and more. One of the biggest threats to online reputation is reviews. Your marketing plan should include regular maintenance and attention to your online reviews. How are people talking about you online in your comments section, Google Reviews, and Yelp Reviews? If you see any negative comments that have constructive feedback, make sure you reach out to the person and find out how you can improve or make it right. Respond to the review or comment publicly with a polite and professional tone. There are also plenty of review management tools, many of which leverage AI to read the tone and sentiment of reviews and generate suggested responses accordingly. You can’t make everyone happy, but the way you deal with negative feedback goes a long way to protecting your online reputation. 8. Host networking events for brand awareness Of course, digital isn’t everything. After all, people exist in the real world, too. In-person events and community-building strategies can still be incredibly effective, especially in something as hands-on and personalized as property management. If you have the resources, hosting events can boost your brand awareness and company reputation in your area. Because property management is so regional—and creating a niche in the market is key to success—these highly targeted events work exceptionally well in the property management industry. If you're not yet at a point where you can host networking events, look for events hosted by other industry professionals in your area. Grab a ticket, mix and mingle, and get to know those around you. 9. Build a steady stream of referrals Real estate is a people-first business. That's why many property managers see a large portion of your their doors will coming in from referrals. Real estate investors often have networking events and educational sessions, so they have plenty of opportunities to talk about their property managers, both good and bad. Welch-Randall, a property management firm based out of Ogden, Utah, attributes 92% of its new doors to referrals. This is the mark of a business with established authority reaping the benefits of the work it put in to create that trust. Consider establishing a formal referral program, where existing clients can receive a reward or a discount on management fees if they refer a new client to you. The absolute best way to grow your referral stream is simply by providing the best possible investor experience to your clients. Drive strong financial results, communicate effectively, protect their assets, and even step into the role of asset manager. The happier they are with your services, the more likely they are to recommend you to others. Final thoughts Becoming an industry-leading property management company is about more than just the number of doors you manage. There is a saying in marketing that perception equals reality. If you want potential clients to perceive your company as an industry leader, you have to give them a reason to believe that you are. Real estate investors, especially new ones, above all else, are looking for experts that they can trust to guide them through the ownership of their assets. By answering the questions they have and proving your expertise, you’re proving that you're up to the task. Want to learn more about how you can build your property management business into a true powerhouse? Download our property management business plan. Download now

May 2, 2025

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20 Ways to Get More Property Management Leads

It's no surprise that high interest rates over the last few years have driven plenty of opportunity for property managers. With plenty of homeowners carrying mortgages at comparatively low rates, they're less likely to sell and are instead renting out their properties. There's a high demand for skilled property managers, and lots of opportunity to get more property management leads from those entering the rental market. And that's exactly what we're talking about in today's article: property management lead generation. We're exploring 20 effective strategies to tap into this market potential, from leveraging referrals and business networks to harnessing the power of digital marketing. 1. Referrals Referrals can be a great step for new businesses. You can get referrals to new clients from friends and family, local business groups, realtors, and other clients. Leverage your existing network and ask for referrals. Satisfied clients and professional contacts can often provide recommendations to potential leads, which is why it's so important to keep a high level of client satisfaction. The happier an investor is, the more likely they'll be to recommend your services to other property owners they know. 2. LinkedIn Another great starting point for new business is to use LinkedIn to connect with potential clients, join industry groups, and share valuable content. It's a powerful platform for B2B lead generation. You can either sponsor posts and advertisements targeting people in your ideal client profile, or directly message individuals that you know are looking for property management services. Even more powerful, though, are LinkedIn's networking groups, where you can find and connect with property investors. Just be cautious when joining groups, as they may each have their own unique rules that limit or prohibit self-promotion within the group. 3. Event marketing If you're looking to grow your door count, you should also consider attending industry events to network with potential property management clients. These can range from local real estate meetups to larger industry conferences. If you're willing to invest the funds, you can also look into hosting your own networking events for real estate investors. Make sure the events are accessible and informational, not just a sales pitch for your company. That way attendees feel like they're getting real value, while also building a positive association with your brand. 4. Cold calling While it may seem old-fashioned, cold calling can still be effective, especially if you’re just getting started. The key is to ensure that you're targeting the right property owners and investors in your local market. Make the value of your offering clear and be prepared to get a lot of rejections, but know that even just signing a couple of new clients can make the time investment worth it. 5. Facebook Facebook, and other social media marketing, is effective for new and growing companies. Use targeted Facebook advertising or post in local groups to reach potential clients. Consider running ads targeting landlords or real estate investors. For growing companies, use advanced targeting options in Facebook Ads to reach a more curated audience. Consider retargeting ads, which can serve ads directly to people who have previously visited your website interacted with your content. Those users already know who you are and may have been interested in your services, so advertising to them tends to have a better ROI than serving ads to entirely new individuals. 6. Podcasts Yes, we know, it seems like everyone has a podcast these days. But the truth is, podcasts can work well as an early foray into property management marketing. Whether you run a company that's just getting started, or a growing company that has plateaued, a podcast can help get your name out there. The challenge with podcasts is that they do take some time to build momentum. You're not going to get thousands of listeners on your very first episode. If you're intimidated by trying to run your own, consider reaching out to existing podcasts (like our Triple Win Podcast) to ask about being a guest. That will help get you more accustomed to the process while also getting some eyes on your brand. You'll want to discuss relevant industry topics—not just pitch your business—to establish your expertise and reach a larger audience. 7. Local businesses & strategic partnerships When you’re just getting started, it’s a great idea to partner with local businesses that serve the same market. For example, a local moving company might recommend your services to property owners who are moving out, but putting their house up for rent. Similarly, local contractors, painters, plumbers, and other local vendors may have the inside scoop on self-managing landlords who are doing turnover maintenance or other upkeep on rental properties. You can also join local clubs and the Chamber of Commerce and attend meet-ups to build a network that refers high quality leads and clients. 8. Direct mailing New companies should also consider sending targeted direct mail campaigns to potential leads. This could include newsletters, postcards, or informational brochures about your services. The biggest benefit of direct mail is that you can be confident that it's reaching the right geographic areas. While Facebook or LinkedIn could end up serving up your ads to people too far away for you to effectively manage, physical mail gives you more control. 9. Niche forums Launching a new business requires support and community. Participate in online forums related to property management or real estate. Answering questions and sharing insights can help attract potential clients. 10. Read local listing reviews Looking for your first few clients? Monitor local listing reviews such as on Google and Yelp. People love to complain on the internet, and you may just find landlords who are having trouble with their current management company. This is an opportunity to tactfully reach out to better understand their challenges, and see if you may be able to help them by offering your services. 11. Browse newspaper ads Another great way to find those early clients is to look for rental listings or properties for sale. Reach out to the owners to offer your property management services. A surprising number of people still use newspaper classifies, but don't be afraid to look toward the modern equivalents, like Craigslist. Be diligent to avoid spam ads that may just be a waste of your time, but there can be some real diamonds in the rough if you're willing to do some digging. 12. Content marketing If you have a more established company and a bit more capacity to experiment, content marketing might be for you. Start by creating valuable content on your website and social media channels. The key is to make sure that your content is educational and entertaining, but not just a promotion of your services. Your readers and viewers need to feel like they're getting real value from your content, or they're not going to come back. You'll want to try a mix of content types, including blog posts, infographics, or eBooks that provide insights to property owners. A good example of content marketing for lead generation is Realty Medics. Another, run by our Triple Win Mentor Jennifer Ruelens, is Hold It with PM Jen, which is all about educating investors on how to be successful buying and holding rental properties. While we recommend looking at examples like these for inspiration, make sure that your content brings your own unique voice and perspective. 13. Google Ads (PPC) Pay-per-click (PPC) is the backbone of Google advertising. Whether you're well established or still new, you can build campaigns on Google to appear in search results for relevant keywords. For example, you can target "property managers in Cleveland" so that your ads appear for users searching that term. This can help attract landlords or property owners searching for management services. This is one of the best online marketing strategies, in part because of its flexibility. You can set firm budgets for how much you're willing to spend, and see an estimate of how many views your ad is likely to get for that price. You can also select related keywords to capture a wider range of searches and build visibility that way. 14. Search engine optimization (SEO) A great step for companies looking to keep growing is to optimize your website for SEO. SEO is a strategic approach to writing content with relevant keywords to rank higher in search results, increasing visibility and attracting organic traffic. There are plenty of tools—both free and paid—to help optimize for search engines, and many small businesses also opt to hire SEO agencies to provide guidance on strategy and produce optimized content. 15. Email marketing Worried about your company’s growth plateauing? Nurture your existing email list with regular newsletters or updates, providing valuable information and promoting your services to encourage conversions. Email marketing often works well in tandem with content marketing, because you can use your newsletter to promote the new content you're creating and drive more visitors to your site. Make sure your newsletter is relevant and informational. Focus on giving readers content that they want, rather than just using it to advertise your company. 16. YouTube (videos and ads) YouTube is an interesting hybrid of content marketing and social media marketing. Creating educational videos on property management topics can help build your brand, but also make sure to reply to comments and show appreciation for your followers in your videos. YouTube needs to be treated as a social media platform, not just a one-way street for your content. You can also advertise on relevant channels to reach a wider audience on YouTube. Because Google owns YouTube, many of their advertising features work similarly to Google PPC ads. You can target viewers based on channels that they follow, YouTube searches they've done, or previous Google search terms they've looked up. 17. Webinars If you have an audience established, ideally through other informational content and your newsletter, host a webinar on a relevant topic to provide value to your audience. Webinars are particularly good for lead generation because users typically have to provide contact information in order to register. That means that, not only can a webinar help position your company as an industry expert, it can also provide a list of contacts that you can follow up with, either by phone or email. 18. TV ads Depending on your budget, consider TV advertisements. Although more costly, they can reach a wide audience and increase your brand visibility, while still being targeted to your geographic markets. These are ideal for large companies, but there are options available for smaller companies, too. Streaming platforms like Hulu offer advertisement spots, and because they're connected to the viewer's email address, you can often get more specific in your targeting, meaning you're not spending precious dollars advertising to contacts that aren't relevant to your business. 19. Billboard ads Like TV ads, billboard advertising can be pricey, but some property managers have seen success with it. Outdoor advertising, like billboards, can help increase local visibility for companies that already have an established reputation. It’s well suited to companies targeting property owners in specific geographical areas, and is especially helpful if you're expanding your territory or opening an office in a new city. Because of the high price, getting the messaging and design right is a little bit higher stakes. Don't hesitate to consult a design agency if you don't have the necessary skillset in-house. 20. Pay-per-lead services There are websites and services specifically designed to provide qualified property management leads. One of the most popular is All Property Management, but a quick web search will reveal plenty of options. These services typically charge a flat rate per lead, and can provide a stream of potential clients who are actively seeking property management services. They provide the contact details and background information that you need to have a successful exploratory sales call. Final Thoughts For more insights about lead generation strategies, check out our Triple Win Podcast for residential property managers. Or, consider some of our other resources for growing your PMC: How to Create a Property Management Business Plan [Free Template] 15 Strategies to Grow Your Property Management Business Marketing Ideas for Property Management Companies

April 23, 2025

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Introducing Group Rate Internet from Second Nature

At Second Nature, we strive to deliver the best possible experience to residents and property managers alike. We’re always looking for new opportunities to help property managers provide better service, grow their businesses, and give residents homes they want to stay in. Now, with the introduction of Group Rate Internet, we’re able to deliver yet another benefit that residents want, while improving the experience for property managers. What is Group Rate Internet? Group Rate Internet is gigabit-speed˙ internet delivered directly to single-family rental homes, incorporated right into your lease. Thanks to the power of our network, Second Nature has negotiated group rates with some of the nation’s largest internet service providers, and we’re passing the savings on to you. Residents get high speed internet at a discounted rate below what they could get on their ownº, while property managers have a new way to grow their business. Why are we doing this? These days, internet service is a necessity. But until now the process has been time-consuming, frustrating, and expensive. Subscribers face complicated setup and cancellation processes, and when they need to reach customer support, they’re often left on hold. We wanted to bring a better experience to residents and modernize the way they receive internet service. Understanding the single-family market 98% of residents across the United States pay for internet service in their homes. But until now, they’ve struggled with inflexible contracts that don’t align with their lease terms, convoluted phone trees, and expensive hidden fees. Most single-family property managers haven't had the ability to negotiate better rates with ISPs, leaving residents to pay retail prices for essential services. That's where Second Nature comes in. By leveraging our nationwide network, we're able to secure group rate pricing that's lower than what's available on the market—giving property managers a new way to offer high-quality, affordable internet without the headaches of individual negotiations. Difficulties of scattered-site Internet coverage areas can be confusing. When you have properties in multiple areas, they may be serviced by different providers, making it even more difficult to negotiate a one-size-fits-all deal. That’s why Second Nature works with multiple major ISPs to provide maximum coverage, no matter how wide your management area is. Cutting costs and making life easier On average, customers typically pay $80-120 per month for gig-speed internet. Plus they get hit with fees for equipment, setup, early termination, and more. Now, with Second Nature, property managers can provide gig-speed internet, with no installation or cancellation fees, at a fraction of the price that residents are already paying. How does the program work? Like all of the pieces in our Resident Benefits Package, we’ve designed Group Rate Internet to be as easy as possible. From data exchanges to support, we fully manage the process so your teams don’t have any extra work. Integration with property accounting systems to check eligibility Second Nature starts by gathering property details directly from your property accounting system (PAS) to automatically confirm which ISPs serve each property. We confirm eligibility and pass that data back into your PAS, so it’s always available to you. Once a property is marked as eligible in the PAS, you’ll be able to include an internet service addendum in any future leases for that property. Billing operates directly through the PAS, with no extra tools or logins to keep track of. Integrated with the lease cycle When a resident signs a lease that contains the Group Rate Internet Lease Addendum, they’re enrolled into the program, and Second Nature works directly with them to complete setup. We’ll reach out directly to residents to make sure they know how to get set up. If necessary, they’ll schedule professional installation for equipment at a time that’s convenient for them. Because there’s no separate internet contract for the resident, there are also no setup, equipmentª, or cancellation fees, and no struggling to align their utility contract with their lease term. Internet is billed right alongside rent, so residents don’t have an extra monthly bill to manage. Dedicated support We all know the pain of waiting in a phone queue to try to solve a technical issue. That’s why Second Nature offers dedicated phone support for residents using Group Rate Internet. That way residents aren’t calling you for help or getting stuck in phone trees with their ISP. Residents call Second Nature directly, and if they need technical support from their ISP, we can make a warm handoff, making sure they’re on the line with a representative before our team leaves the call. No endless transfers from person to person. Easy transition at turnover When a lease is up and a resident decides to move out, Second Nature provides move-out information to residents. Depending on the ISP, the resident may not even have to return equipment. In most cases, it just stays with the unit, and service is turned off until the next resident moves in and a new lease starts. When a new resident moves in, one phone call is all they need to get their gig-speed service up and running. It’s a simple transition when someone else moves in, all managed by Second Nature. Get started Want to see how you can provide gig-speed internet to your residents? Schedule a demo with a member of our team to walk through Group Rate Internet. ˙ Compared to average nationwide gig speed price of $80-120/mo (source: USA Today) º Up to 1 Gig Internet speed, subject to availability. Internet Service powered by Second Nature is provided through Second Nature's preferred third-party Internet service providers. ª Residents may be subject to fees if equipment is damaged, lost, or stolen.

March 19, 2025

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What is Tenant Retention and 16 Ways to Improve it

What is tenant retention? Tenant retention refers to the ability of property owners or managers to keep their current tenants renewing their leases rather than having them move out and needing to find new renters. In the world of property management, retaining tenants is often more cost-effective and efficient than constantly finding new ones. This practice not only ensures a steady cash flow of rental income but also reduces expenses associated with vacancies, marketing, and new tenant screenings. To maximize tenant retention, you need a combination of value-driven services, proactive management, and strong tenant relationships. In this guide, we'll delve into 15 top tenant retention strategies. Second Nature's Outlook: "Tenant turnover” is an industry term used from time to time. But we here at Second Nature are trying to evolve the word "tenant." We’ve seen the incredible work property managers do day in and day out to make renters feel like they’re so much more than just a tenant – they’re residents. Making renters feel like residents isn’t just philosophical, it also encourages them to invest in care for their home and add value to the property. This is why, at Second Nature, we prefer to call renters “residents.” Like you, we think of them as people first – making your property their home. 1. Offer a Resident Benefits Package It’s one of the biggest trends in property management for a reason! Offering a Resident Benefits Package (RBP) is a strategic move to elevate the overall resident experience. And nothing is more critical to tenant retention than their experience. An RBP typically bundles various services and amenities that cater to the modern tenant's needs and desires. This can range from convenience-driven offers like an air filter delivery service or move-in concierge to value-driven aspects like resident credit building and renters insurance programs. By incorporating such a package, property managers not only enhance the perceived value of living in their property but also position themselves as being attuned to the evolving demands of today's renters. That’s what makes an RBP such a significant differentiator in the competitive renter’s market, making tenants more likely to renew their leases and stay longer. 2. Address maintenance requests promptly When it comes to rental experience, property maintenance is a top priority – and, unfortunately, often a top pain point. One of the chief concerns for tenants is how swiftly and efficiently their maintenance requests are addressed. Quick and effective responses to these requests demonstrate a property manager's commitment to the well-being and satisfaction of their tenants. Delays or negligence can lead to a feeling of being undervalued or overlooked, pushing renters to look for alternative accommodations where their concerns might be treated with greater urgency. Moreover, swift repairs prevent minor issues from escalating into major, costlier problems. In essence, by prioritizing and promptly attending to maintenance requests, property managers not only ensure the structural integrity and safety of their property but also build trust and rapport with their tenants, encouraging longer stays. 3. Incorporate a Renter’s Insurance Program Offering or even mandating a renter's insurance program is a proactive measure that benefits both property managers and tenants. This insurance covers tenants' personal belongings in cases of theft, fire, or other unexpected events, granting them peace of mind. For property managers and owners, it offers an extra layer of protection, as tenants are less likely to pursue claims against the property for personal loss. Additionally, when damages or accidents occur that aren't the property owner's responsibility, having an insurance policy ensures that costs are covered without disputes. For owners, it protects their property and protects them from financial losses. They can also often get lower premiums on their own insurance if they can prove their renters are covered with their own policies. Second Nature addresses this benefit by offering a renter’s insurance program as part of our RBP. 4. Focus on security In today's evolving risk landscape – with digital threats, increasing weather risks, etc. – ensuring tenant safety should be a paramount concern for property managers. In turn, tenants are more likely to stay in a property where they feel safe and secure. By installing high-quality security systems, surveillance cameras, weather safety plans, or generators, and by regularly updating and maintaining these systems, property managers can provide an environment where residents feel their well-being is prioritized. It's not just about the physical infrastructure either. Identity theft has surpassed home burglary in the level of threat to renters. At Second Nature, we provide $1 million identity protection as part of our RBP. That ensures that residents feel safe – and that their financial stability is protected. That, of course, protects their ability to pay rent. A steadfast commitment to safety fosters trust and is a clear indication to tenants that their welfare is taken seriously, thus making them more inclined to renew their leases. 5. Offer incentives We all like a nice incentive now and then! Incentives play a pivotal role in tenant retention, acting as a value proposition that goes beyond just the living space itself. For example: By incorporating a credit reporting program, property managers can incentivize on-time rent payments, helping tenants build a positive credit history in the process. This not only promotes financial responsibility but also offers a tangible benefit to the tenant. Lease renewal incentives, such as discounted rent for the first month of renewal or free amenity usage, further encourage tenants to stay longer. Incentives create win-win solutions where tenants feel they're receiving added value while the property manager and owners benefit through consistent occupancy. 6. Offer Group Rate Internet The vast majority of renters today already pay for internet access in their homes. It's one of the most highly adopted services among renters, and for many of them it's an absolute necessity. With Group Rate Internet, you can integrate internet service directly into your leases. Residents no longer have to try to coordinate their internet contract with their lease term, and they can wave goodbye to hidden setup, cancellation, and equipment fees. Plus, thanks to negotiated rates, you can offer gigabit-speed service at a lower price than residents could get elsewhere. It's a clear win-win, and it's just one more benefit that will keep residents happy and increase their likelihood of renewing their lease. 7. Implement a rewards system Building a robust tenant relationship goes beyond addressing their needs; it also involves rewarding their loyalty. Programs in other industries maximize this type of value – think of Starbucks Rewards or Delta SkyMiles. A Resident Rewards program is similarly a strategic approach to foster customer satisfaction and long-term loyalty. Unlike direct incentives, these rewards programs offer points or credits for consistent on-time payments, renewing leases, or even care for the property. Over time, these points can be redeemed for tangible benefits or perks like gift cards, discounts on amenities, or special privileges within the property. By providing a continuous system of recognition, property managers can cultivate a positive tenant culture, making residents feel appreciated and thereby more inclined to renew their leases. Such a system also nudges tenants to adopt behaviors beneficial to both them and the property management, leading to a harmonious rental ecosystem. 8. Conduct regular inspections Regular inspections are a cornerstone of proactive property management and are essential for maintaining tenant satisfaction. By periodically assessing the condition of a rental property, managers can identify and rectify potential issues before they escalate. Whether it's a minor leak or wear and tear, addressing them early on reduces long-term maintenance costs and demonstrates a commitment to providing tenants with a well-maintained living space. Furthermore, these inspections offer an opportunity for open communication with tenants, understanding their concerns, and building trust. While it's crucial to respect a tenant's privacy by giving proper notice and scheduling at convenient times, these inspections emphasize the property manager's dedication to preserving the property's value and ensuring resident comfort. 9. Update and renovate In the competitive world of rental real estate, properties that remain stagnant quickly lose appeal. By making periodic updates and renovations, property managers can significantly enhance the rental's desirability and rental rates and keep it aligned with current housing trends. Whether it's a modern kitchen makeover, a bathroom upgrade, or simply a fresh coat of paint, these changes can breathe new life into a space. Not only do renovations increase property value, but they also communicate to tenants that their living experience is valued and considered. Tenants are more likely to renew their leases when they see active efforts being made to improve their living environment, ensuring they always feel they're getting the best value for their money. 10. Offer On-Demand Pest Control One of the fastest ways to sour a tenant's experience? Leaving them to deal with unwanted pests. It also might put you or the owner at risk of legal action, depending on the state. Whether it's ants in the summer or mice in the winter, pest issues can quickly escalate if not addressed immediately. By offering property management pest control as part of the tenant package, property managers demonstrate a proactive approach to potential issues and ensure that tenants feel their well-being is a top priority. This service minimizes the likelihood of recurring pest problems and showcases a commitment to maintaining a clean and habitable environment. It’s also a better ROI than preventive sprays that don’t necessarily address real issues. On-demand services ensure that actual issues are addressed as soon as they pop up (or crawl out!). Tenants will appreciate the quick response and effort to ensure their comfort, further solidifying their decision to stay long-term. 11. Include valuable services like Filter Delivery Property managers know that it’s often the small touches that leave a lasting impression – and nip bigger problems in the bud. One such valuable service is offering filter delivery. Regularly changing air filters not only ensures a healthier living environment by improving air quality but also boosts the efficiency of heating and cooling systems, saving significantly on energy bills. In fact, a study by the National Rental Home Council (NRHC) found that filter delivery could reduce costs by up to nearly 80%. By offering filter delivery, property managers remove a common chore from the tenant's list, demonstrating attention to detail and a commitment to their comfort. This proactive approach to maintenance, coupled with the convenience of direct-to-door delivery, can enhance the overall resident experience, making them more inclined to extend their lease. 12. Offer a Move-in Concierge The moving process can be one of the most stressful experiences for new tenants, filled with a myriad of tasks and uncertainties. In fact, most renters have already made their decision to renew or not within the first 30-60 days. By offering a Move-In Concierge service, property managers can significantly ease this transition. This service assists new residents with tasks like utility setups, mail forwarding, local service recommendations, and even scheduling movers or rental equipment. Beyond just the practical help, a Move-In Concierge communicates to the tenant that their comfort and smooth transition are a priority. This initial positive experience can set the tone for the entire duration of the lease, making tenants feel valued and well cared for from the outset. Related: How to Write a Tenant Welcome Letter + Free Template 13. Use digital solutions It’s just the reality of 2023 and beyond: Tenants expect digital convenience. Whether it's online rent payments, a tenant portal for logging maintenance requests, or virtual property tours, embracing digital solutions can greatly enhance the tenant experience. These platforms not only streamline administrative tasks, reducing the possibility of human error but also provide a more responsive and efficient service to residents. For younger generations especially, the ability to manage their tenancy online can be a significant deciding factor in choosing a rental property. Property managers who keep pace with technological advancements in the industry not only improve tenant retention but also position their properties as modern and forward-thinking. 14. Vet tenants thoroughly The process of tenant retention begins even before a lease is signed. By thoroughly vetting potential tenants, property managers can ensure they're selecting responsible individuals who are more likely to be great tenants – tenants who will respect the property, adhere to lease terms, and foster a positive community environment. This involves conducting comprehensive background checks, verifying employment and income, and checking references from previous landlords. By choosing good tenants who have a track record of timely payments and good behavior, you set the stage for a longer, more harmonious rental relationship. It's an investment in time upfront that can save countless hours and resources in the long run. 15. Seek feedback and act on it Among the best tenant retention tips: Tenant feedback is an invaluable tool for understanding what you're doing right and where there might be room for improvement. Actively seeking out tenant opinions through surveys, feedback forms, or simply open-door policies can shed light on aspects of property management that might otherwise go unnoticed. Of course, collecting feedback isn't enough on its own; the crucial step is to genuinely act upon the insights gathered. Whether it's a minor repair, upgrades, or better communication methods, implementing changes based on tenant feedback not only improves the living experience but also shows residents that their voices matter, fostering trust and encouraging longer tenancies. 16. Foster a strong property manager-tenant relationship The foundation of tenant retention often rests on the relationship built between the property manager and the tenant. This bond goes beyond mere transactions and lease renewals. It's about understanding, respect, and open communication. By being approachable, responsive, and genuinely caring about tenants' well-being and comfort, property managers can foster a sense of community and belonging. Regular check-ins, prompt responses to concerns, birthday or anniversary gifts, and occasional gestures of appreciation can make tenants feel valued. A strong relationship not only reduces the chances of tenants seeking a new place but also encourages positive word-of-mouth recommendations, benefiting the property's reputation and bottom line. Tips for successful tenant retention program At the heart of tenant retention is a simple yet profound realization: tenants, much like any consumers, are looking for value, ease, and assurance in their choices. When it comes to exploring the topic of tenant retention meaning, for us, it’s all about the resident experience. The key question for tenant retention is simply: “How do we create an experience so good that residents never want to leave?” Answering this question helps property managers identify exactly what residents are willing to pay for and stay for. Here are a few tips for approaching the resident experience. Get a much more in-depth look at it through our 2023 State of Resident Experience Report. Focus on convenience: Today's residents value convenience more than ever. Be it quick maintenance solutions, easy-to-access amenities, or streamlined communication, the easier you make life for your tenants, the more likely they are to stay. A resident benefits package or on-demand services are ways to weave in this convenience. Embrace digital transformation: The digital age has transformed tenant expectations. Online rent payments, digital lease signings, AI-powered helpdesks, and smart home integrations are just a few avenues where digitalization can significantly enhance the resident experience. Aim for the Triple Win: True success in tenant retention is realized when all parties involved – the residents, property managers, and owners – feel they're gaining value. Implement strategies where each party stands to benefit, ensuring harmonious, long-lasting relationships. By grounding your tenant retention program in these principles, you not only meet resident expectations but often surpass them. How Second Nature helps with tenant retention Navigating the world of tenant retention can be intricate, but Second Nature simplifies the journey. Our comprehensive Resident Benefits Package (RBP) is meticulously designed to cater to modern tenant needs, offering unparalleled convenience and value. By focusing on strategies that drive resident satisfaction, Second Nature ensures both property managers and owners achieve higher tenant retention rates. Embrace the RBP, and witness the transformative impact it brings to your property management endeavors.

March 7, 2025

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How to Design An Effective And Adopted Ancillary Revenue Program

Ancillary revenue programs like Resident Benefits Packages have really hit their stride in the property management industry. We've come a long way from just collecting rent, and today's property managers have realized that creativity and innovation can drive new revenue streams and value-generating services. And that’s exactly what ancillary revenue is all about. We sat down with some of the best innovators in the business to talk about what makes an ancillary revenue program effective, how to make them sustainable in the long-term, how to incorporate revenue management, and how to know which ones can work for your business. What is ancillary revenue? Ancillary revenue is any additional source of income generated by a property that is not directly related to its primary function or purpose. In property management, property managers offer additional services to generate additional income for themselves and their client investors beyond the rent or lease payments they receive from residents. Most of us are familiar with ancillary revenue streams like those used in the airline industry or hotel industry, but the key to a good ancillary revenue program is that it should generate value without nickel-and-diming people. Examples of ancillary revenue in property management can include things like pet fees, renters insurance programs, management fees, and more. These boost your total revenue while adding value for residents and investors. They're not just upsells, they're really about value generation and finding a way to diversify revenue streams. How to design an effect ancillary revenue stream “There is one characteristic that is the most important, and that is that you have to believe in it,” says Steve Pardon, Head Broker at JMAX Property Management. “If you believe that there is a benefit to doing it, then you’re good. If you don’t, then it’s hard to sell.” You have to believe in what you're charging people for. Pardon hits on the most important question you should ask any time you’re adding cost to your residents: does it really create a benefit? While ancillary income programs benefit the PM, by driving revenue, add-on services that don’t create a benefit for the resident can have long-term consequences. Paul Mauk of Invitation Homes agrees. “You can make anything mandatory, but if it doesn’t create value for the residents, you’re going to pay the price down the line,” he says. Most ancillary revenue opportunities today are operated as part of a resident benefits package built into your business model. Pardon has rolled out an RBP to his residents, but took a very measured and analytical approach to ensure that everything his residents were paying for created value for them. Pardon summarizes his thorough process for determining value with "you have to believe in what you're charging people for." JMAX operates in the Roanoke, Virginia area, and Pardon considers the nature of his specific area when deciding what he believes in charing people for, noting that he feels certain programs work better or worse in his rural market than they would in an more dense market like an Atlanta. Residents rarely object to paying for services they find value in, which is why an RBP built with the principles Pardon describes above can be so successful. If we can find ways in which to make it an easier process for our residents, we can enhance our offering, enhance the experience for them, and increase the length of stay that we see from our residents. You can read about resident pushback to RBP here. Looking beyond pure profit Good ancillary services can come in many different shapes and sizes, and not all are just about making more money. HomeRiver Group, for example, sends each and every resident in a HomeRiver group managed home a holiday gift. “One thing that we're getting ready to do right now is our holiday gift to the residents, which is another win-win,” says HomeRiver Group CDO Andrew Propst. “We find local companies like restaurants or movie theaters. We buy a bunch of gift cards at a discount. We put it in a nice little letter and we send it out to the tenants. They get $50 in value, we paid $25 for that, and we spread Christmas and holiday cheer. And, you know, we get good Google reviews. It makes some money. We help local businesses. It's a big one.” Paul Mauk of Invitation Homes notes that ancillary services that don’t directly drive profit can still be hyper-effective as long term initiatives if they contribute to low turnover rates in properties. “I think the type of initiatives that we're having success with are those things that provide for enhanced leasing lifestyle for our tenants or residents,” says Mauk. “And that's often driven via survey and input from residents. So instead of us pretending that we know every potential amenity they would like, we’re actually reaching out to them and asking them what the value proposition would be from their perspective.” Asset protection is also top of mind for Mauk as a long-term strategy. By shaping resident behavior, Invitation Homes can minimize vacancies and maximize lease compliance. “One additional thing would be items that aren’t necessarily potentially revenue drivers for us, but help us relative to asset preservation. So things that may be very specific and required within the lease, if we can find ways in which to make it an easier process for our residents, we can enhance our offering, enhance the experience for them, and increase the length of stay that we see from our residents.” Minimizing turnover is the most important thing for most property management companies. The more time a resident lives in a property, the better ROI for the owner, which means better client retention for you and more potential for referrals. That’s why the resident experience aspect of ancillary services is so critical, even more so than the additional funds they can procure. Ancillary revenue examples Let’s look at some examples of the best ancillary revenue ideas in property management right now. The services with an asterisk (*) are all available in Second Nature’s fully-managed Resident Benefits Package. Air Filter Delivery* Air filter delivery is a premium service for residents that automates air filter delivery to all your properties on a set schedule. Filter delivery simplifies the process for residents and ensures timely replacement at a low cost. HVAC repair costs have increased by 48.7% year over year, and an air filter delivery subscription can cut costs up to $300 per year. At Second Nature, we’ve seen our filter delivery drive a 38% reduction in total HVAC ticket requests, and save residents $14.82 per month in energy costs on average. Group Rate Internet* 98% of renters already pay for internet service, so it's a great opportunity to provide a simple benefit that you know residents want. With Group Rate Internet, you can offer gigabit-speed internet to your residents at a price lower than they could get otherwise. Provide an improved resident experience and a simple way to grow your business, fully managed by Second Nature. Resident Rewards Program* Rewards aren’t just a perk for residents—they’re a powerful way to incentivize on-time rent payments. Talk about a win! Residents receive rewards like discounts to local businesses when they pay rent on time. You and your investors see an increase in on-time payments, and residents now see rent day as rewards day. Credit Building* Rent is one of the most significant regular payments any of us make. Why not report that to build credit? That’s what property managers are doing as a benefit to residents and an extra incentive to pay on time. A study by TransUnion found that 67% of residents would choose homes with rent reporting over other equivalent homes. Credit building supports your residents, helps attract financially responsible applicants, and encourages residents to pay rent on time. Move-In Concierge* Any time you move into a new house, one of the biggest headaches is setting up utilities. One great ancillary revenue stream is to provide a move-in concierge. At Second Nature, we manage this for you. Our move-in concierge helps residents find the best utility options in the area and can help simplify setup. In one phone call, residents get what they need. Identity Protection* Did you know that identify theft is a larger security risk today than home burglary? One in eight Americans were victims of identity fraud in 2021, equaling up to $52 billion in losses. Identity protection gives residents peace of mine and protects them finacially – which also protects their abilty to pay rent. Related: How to Help Residents Use Their Identity Protection Services During a Data Breach Renters Insurance* A quality renters insurance program will allow residents to keep current coverage if they wish, but be automatically enrolled in the PM's program if it ever lapses. That also means no more compliance tracking for your staff. Did you know that 90% of professional property managers require residents to carry insurance, but only 41% maintain compliant coverage? At Second Nature, our renters insurance program has 100% compliance, protecting residents, investors, and the PMCs. Pest Control* Many property management companies offer on-demand pest control services to residents to keep cockroaches, ants, and more out of the property. Property managers reduce complaints while offering a massive benefit to residents, and asset protection for them and their investor. Holiday gift program A holiday gift program helps residents feel seen, known, and remembered. Residents receive coupons or gift cards to local establishments as a wish of good cheer during the holiday season. Who doesn’t love a holiday gift? Security deposit alternatives We’ve seen security deposit alternatives proliferate in the last few years. Property management companies are choosing to offer other ways to cover financial liabilities without requiring a huge payment at move-in, such as a surety bond or ACH authorization. Home-buying assistance programs Home-buying assistance helps boost resident experience and trust, while also investing in resident retention. Learn more about assistance programs for long-term residents looking to purchase a home. How Second Nature helps create ancillary revenue At Second Nature, we work with property management companies around the country to help them generate more value for their residents and additional revenue for their business through a Resident Benefits Package (RBP). The Second Nature RBP is a custom suite of benefits that elevates the resident experience while adding profit to your bottom line. An RBP is a powerful ancillary revenue strategy, and because it's fully managed, it doesn’t add any burden to your team. Generate more value for your investors, ease for your residents, and profit for your PMC with an RBP. Register now for our next RBP Workshop, where you can hear from real RBP users about how it's changed their business.

March 3, 2025

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6 Property Management Skills for Success

In the high-stakes world of property management, professionals are constantly juggling a multitude of responsibilities. Developing your property management skills, from resident relations to financial acumen, can help you excel. The pressure is immense, and it's no wonder that over 25% of real estate property managers (PMs) are expected to abandon the industry within the next five years. The burnout is real, and the struggle to find enough time is a common theme among PMs. The right property management skills, paired with careful professional development, can significantly alleviate these pressures and transform careers. These top skills include communication, organizational prowess, financial acumen, relationship building, adaptability, and marketing savvy. In today’s post, we’ll examine these "big six" skill sets that truly elevate good property managers to great. Note that even though we here at Second Nature prefer the term "resident" over "tenant" in order to foster the human element, the word "tenant" may still be used occasionally due to its long-standing legal and real estate context. Top 6 skills for property managers Trying to pinpoint the most important skills for property managers is tough. The job encompasses so many things, but here are the top six that we find most important. 1. Communication Strong communication skills are the cornerstone of successful property management. Clear and concise communication ensures that all parties involved are on the same page, reducing misunderstandings, boosting negotiation skills, and fostering a collaborative environment. Clear and concise communication Effective communication is not just about speaking or writing well; it's about conveying a message in a way that is easily understood by everyone involved. This means avoiding jargon, being direct, and tailoring communication styles to different audiences. How you’d communicate with a potential tenant about maintenance issues might differ from how you’d interact with a contractor or a rental property owner. Make sure that you're conveying the right message to the right person. Active listening Active listening is equally crucial, particularly when it comes to resident relations. Active listening consists of four key steps: Fully concentrating on the other speaker Understanding their key message Responding honestly to show you're engaged Remembering what is being said so you can put it into action later This skill helps constructively address the concerns of residents, and over time will build trust and decrease tenant turnover. Multilingual capabilities In today's multicultural society, having speaking a second language can be a significant asset. While not a requirement in most parts of the country, being able to speak the language of your residents improves communications, making you a more effective property manager. 2. Organizational prowess A top-notch property manager excels in organization. With so many moving parts, you need to have a systematic approach to managing the details and keep everything running smoothly. Organization is a fundamental property management skill. Time management Successful property managers prioritize tasks and address important issues promptly. Property managers have a lot going on, so utilizing calendars, to-do lists, and project management software can help them stay on top of their work. Attention to detail Paying close attention to details ensures that nothing falls through the cracks. This could mean ensuring that maintenance requests are logged correctly or reviewing financial statements for discrepancies. Keeping detailed records is also key to property management success, so make sure your documentation is clean and timely. 3. Financial acumen Strong financial management skills are about understanding and executing the monetary aspects of property management to ensure profitability and sustainability. Financial management Creating and adhering to a budget is crucial. This involves forecasting future expenses and revenues to ensure that the property remains profitable. Plan for unexpected costs and allocate funds where they are needed most through effective budgeting. If you're looking to develop as a property manager, taking financial management courses may be in your best interest. Rent payments Efficient rent collection processes are essential to maintaining cash flow and ensuring timely payments. This includes implementing automated systems for rent collection and tracking payments to minimize late or missed payments across all rental properties in your portfolio. Financial reporting Generating accurate financial reports is critical for monitoring financial performance, identifying areas for improvement, and making informed decisions. These reports provide insights into rental income, expenses, and profitability, helping property managers to stay on top of their financial health. Understanding rental markets Staying informed about property values and rental market trends helps your property management business set competitive rental rates, ensuring maximum occupancy and profitability. You can track local market conditions and pricing, vacancy rates, economic factors, and demographic trends through industry reports, often available from property management software providers and real estate research firms. Spend some time finding sources you trust, and then subscribe to their newsletters so you can stay informed and up to date. 4. Relationship-building Building strong relationships is at the heart of property management. You need to foster trust and ensure that all stakeholders are satisfied. Excellent interpersonal skills Interpersonal skills are central to managing relationships with residents, contractors, and property owners. Focus on being approachable, empathetic, and professional, which will build a positive rapport with all parties involved. Negotiating skills are also vital. Whether you're negotiating a lease agreement, a new management agreement, or a maintenance contract, you need to know how to get the result that's best for the business. Conflict resolution Conflicts are inevitable in property management. Whether it's a dispute between residents or an issue with a contractor, having effective conflict resolution skills is key to maintaining harmony and ensuring that problems are resolved swiftly and fairly. Responsiveness and follow-through Being responsive to queries and requests shows that you value and respect others' time and concerns. Following through on commitments builds trust and reliability, which are essential in maintaining strong relationships. Customer service In the context of day-to-day operations, excellent customer service skills are about much more than resolving issues. They’re about creating a positive experience for residents, which can lead to higher retention rates and positive word-of-mouth referrals. 5. Adaptability The property management industry is dynamic and ever-changing. Top performers thrive in this environment by being adaptable and open to change. Problem-solving You need to be able to identify issues, evaluate options, and implement solutions quickly and efficiently. Strategic thinking skills help you make judgement calls on the fly and solve issues before they escalate. Staying current with regulations As industry development continues, regulations and laws related to property management are constantly evolving. Staying current with security deposit restrictions, relevant landlord tenant law, and other regulations is essential to ensure compliance. Regular research and training on local, state, and federal laws will protect you and your business. Embracing technology Technology is transforming property management. Embracing new technologies like property management software, smart home devices like smart locks and security systems, and digital marketing tools can streamline operations and improve efficiency. 6. Marketing savvy In addition to operational tasks, being marketing-savvy is a vital organizational skill. You should know how to market properties effectively to attract and retain residents, using traditional methods as well as social media and other digital platforms. Optimizing rental listings Rental listings are one of the most important pieces of the property management lifecycle. Property marketing requires an array of skills including search engine optimization, photography, and audience knowledge. You need to be able to speak specifically to the potential residents for each of your rental properties in order to attract the best applications. Building social proof You also need to be able to leverage social media to share personal stories. Sharing reviews, customer testimonials, and real stories from residents can help attract not only renters, but also investors. Differentiating your brand The property management industry is crowded. That's why you need to be able to differentiate yourself. Decide who you are as a property manager and as a company, and get very specific about who you want to target In a commoditized world, you need to be able to build a strong brand with a clear message that gives clients something to measure you on other than price. Property management certifications If you want to show expertise, commitment, and professional development, consider obtaining relevant real estate industry certifications. Certifications such as the Certified Property Manager (CPM), Residential Management Professional (RMP), or the Certified Apartment Leasing Professional (NALP) provide recognition of specialized knowledge and skills, enhancing credibility and career advancement opportunities. They show a dedication to the industry, to growth, and to providing the best possible service in your role. Final Thoughts There are certain skills that highly successful property managers have: communication, organizational prowess, financial acumen, relationship-building, adaptability, and marketing savvy. These skills not only help in managing day-to-day challenges, but also pave the way for long-term success and job satisfaction. And while developing those skills is important, so is leaning on processes and tools to help you along the way. Second Nature's Resident Benefits Package (RBP) provides fully-managed benefits that reduce maintenance requests, protect you and your residents, and give you back more time to develop your skills. Learn more about property management company best practices, marketing, and more in our Second Nature Community.

February 11, 2025

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Property Management Agreement Guide + Free Template

As real estate investing becomes more popular, so does property management. Busy professionals and out-of-town real estate investors increasingly rely on property managers to handle the day-to-day operations of their rental properties. If you want to stand out to new investors, you need a clear and comprehensive property management agreement. In today’s guide we’ll cover the essentials of a property management agreement that drives transparency and peace of mind for investors relying on you to manage their assets. What is a property management agreement? A property management agreement is a legally binding contract between a property owner and a property management company or individual. This document outlines the specific responsibilities and duties of the property manager, the expectations of the property owner, the terms of service, and the compensation structure. The agreement serves as a guideline for both parties to understand their roles, rights, and obligations in managing the rental property, ensuring a clear and professional relationship. Why do you need a property management agreement? A property management agreement is essential for multiple reasons: Clarity and expectation management: It improves the property management relationship by clearly defining the roles and responsibilities of both the property owner and property manager. Legal protection: The agreement provides legal protection for both parties, specifying the terms of the services provided and the consequences of breach of contract. Financial management: It outlines the financial aspects of the relationship, including management fees, rent collection, and maintenance costs, ensuring transparency in financial transactions. Maintenance and repairs: The agreement specifies the procedures for handling maintenance and repairs, ensuring the property is well-maintained and any issues are promptly addressed. Dispute resolution: The agreement includes provisions for resolving disputes, which can help prevent conflicts from escalating and provide a clear path for resolution. What should a property management agreement include? Crafting a solid property management agreement doesn't have to be daunting. Here's a breakdown of the key components: Parties involved Clearly identify the legal name and contact information of the property owner or owners. Do the same for the property management company or individual. Property description Include the full address of the property being managed. For added clarity, consider including the legal description, particularly for complex property ownership structures. Specify whether the property is a single-family home, multi-unit building, or commercial property. Mention any unique features (e.g., pool, historic designation) or limitations (e.g., zoning restrictions, HOA rules). Term and termination details Define the start date of the agreement. Outline termination provisions and reasons for termination by either party (e.g., breach of contract, property sale). Specify the required notice period for each party if they wish to terminate the agreement (e.g., 30 days, 60 days). Explain how the date of termination should be communicated (written notice, specific format [e.g., certified mail]), the process for early termination, and any applicable indemnification measures. Manager responsibilities Detail the process for tenant screening, including applications, background checks, and credit checks. Outline procedures for the collection of security deposits, rent payments, and late fees, and document the eviction processes. Specify the property manager's duties and roles in overseeing maintenance requests, repairs, and independent contractor/vendor selection (approval thresholds, cost limitations). Define the frequency and format of financial reports provided by the property manager (monthly statements, annual reports). Establish communication protocols regarding tenant relations, maintenance emergencies, and routine updates. Consider outlining the property manager's availability for emergencies (24/7 hotline, designated contact person). Owner responsibilities Specify the owner's responsibility for major repairs beyond normal wear and tear. Outline the owner's role in providing access to the property for maintenance or showings when residents are not present. Define how major decisions regarding the property (e.g., renovations, capital improvements) will be made (joint agreement, owner approval). Address expectations regarding the frequency and purpose of property inspections conducted by the owner. Clarify the owner's responsibility to maintain appropriate insurance coverage for the property. Fees and compensation Detail the structure of the property management fee (percentage of rent collected, flat fee). Address any additional disbursements for specific services, such as resident placement or lease renewals. Dispute resolution Explain the process for resolving disagreements between the owner and the property manager (mediation, arbitration, legal action) and responsibility for legal fees. Specify the governing laws that apply to the agreement in case of disputes. Free property management agreement template (basic) This contract template is for informational purposes only and should not be considered a substitute for legal advice. Please consult with an attorney to tailor the agreement to your specific needs and to ensure that the provisions of this agreement comply with local and state laws. Property Management Agreement This Property Management Agreement ("Agreement") is made and entered into as of [DATE] by and between: [Property Owner Name] residing at [Property Owner Address] ("Owner"), and [Property Management Company Name] located at [Property Management Company Address] ("Manager"). WITNESSETH WHEREAS, Owner is the legal owner of the property located at [Property Address] (the "Property"); and WHEREAS, Manager desires to provide property management services for the Property; and WHEREAS, Owner desires to engage Manager to provide such services for the Property NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the parties agree as follows: 1. Services Manager agrees to perform the following services for the Property (Services may be added or removed based on specific needs. Consult with a lawyer.): Resident screening and resident selection (application processing, background checks) Collection of rent and late fee enforcement Maintenance oversight and coordination (up to $[AMOUNT] per repair) Move-in/move-out inspections Monthly financial reporting related to management of the property 2. Term and Termination This Agreement shall commence on [DATE] (the "Effective Date") and shall continue for a period of [NUMBER] year(s), unless earlier terminated as provided herein. This termination of this Agreement may be effected by either party upon [NUMBER] days' written notice to the other party. 3. Management Fee Owner shall pay Manager a monthly management fee equal to [PERCENTAGE]% of the gross monthly rent collected. 4. Legal Proceedings In the event of a legal proceeding arising out of this Agreement or the management of the Property, the following provisions shall apply: Authority: The Property Manager is hereby authorized to initiate and prosecute any legal action deemed necessary to collect rent, enforce the terms of tenant leases, or protect the Owner's property interests. Owner Approval: Prior written approval from the Owner shall be required for any legal action exceeding $[Dollar Amount] or involving potential litigation. Costs and Reimbursement: The Property Manager shall keep detailed records of all legal expenses and attorney’s fees incurred. The Owner shall reimburse the Property Manager for all reasonable and documented legal expenditures associated with authorized proceedings. Representation: The Owner shall have the right to be represented by their own counsel in any legal proceeding. However, the Property Manager shall have the right to participate in the proceedings and may retain separate counsel at the Owner's expense if a conflict of interest arises. Communication: The parties agree to cooperate fully and share all relevant information in a timely manner throughout any legal proceedings. 5. Dispute Resolution (Optional - Replace with preferred method if applicable) Any dispute arising out of or relating to this Agreement shall be settled by [METHOD OF DISPUTE RESOLUTION, e.g., mediation] in accordance with the rules of [NAME OF MEDIATION PROVIDER] (the "Rules"). The decision of the mediator shall be final and binding on the parties. 6. Waivers The Owner acknowledges and waives any and all claims, demands, or causes of action against the Property Manager arising from the following, unless such claims arise from the Property Manager's gross negligence or intentional misconduct: Acts or omissions of any resident of the Property. Loss or Property damage caused by reasons outside the Property Manager's reasonable control, including natural disasters, acts of war, or civil unrest. Unexpected repairs or maintenance issues beyond the scope of normal wear and tear. The Owner further agrees to indemnify and hold harmless the Property Manager from any and all claims, liabilities, damages, losses, or expenses (including attorney's fees) arising from the Owner's violation of this Agreement or any applicable laws or regulations. 7. Entire Agreement and Governing Law This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written. The terms of this Agreement shall be governed by and construed in accordance with the laws of the State of [STATE]. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. [Property Owner Signature] [Property Owner Name (Printed)] [Property Management Company Signature] [Property Management Company Name (Printed)] Optional addenda For specific situations, consider adding supplementary documents like: Bed bug addendum Pool addendum Pet lease addendum These addenda can address unique requirements and regulations related to these aspects of the property. Ready to get started? Download our free template. Related: How to Write a Letter Notifying Your Tenant of the Sale of Property Best practices when using property management agreement templates Using property management agreement templates can streamline the creation of your contracts, but it’s important to adapt them carefully to meet your specific needs and legal requirements. Here are some best practices to ensure your agreement is both comprehensive and effective. Personalize the agreement Every property is unique, and so are the needs of the property owners and managers. Personalize your agreement by: Including unique features or limitations of the property, such as historical designations, HOA rules, or special amenities.. Adjusting the fee structure and additional details to match your specific financial arrangements. Regularly update and review Regularly review and update property management agreements to reflect changes in: Local, state, and federal laws that might affect your agreement's legal compliance. Current market conditions, such as changes in rental rates or maintenance costs. Establish effective communication channels Establishing effective communication channels within the agreement ensures smooth operations and quick resolution of issues. Include: Primary contacts for both parties and their preferred methods of communication. Clear guidelines for reporting maintenance issues, handling resident inquiries, and providing updates. Plan for contingencies Anticipate potential issues and include contingency plans in your agreement by: Outlining steps for handling emergencies, including contact information for emergency services and protocols for urgent repairs. Providing a clear process for resolving disputes, including mediation or arbitration clauses to avoid costly legal battles. Cover legal considerations Consulting with a lawyer is crucial to ensure your property management agreement is legally sound and reflects your specific circumstances. An attorney can help you with: Clearly defining which maintenance issues are the responsibility of the property manager and which fall to the owner. Outlining a comprehensive pet policy including pet restrictions, fees, and deposit requirements. Ensuring your agreement adheres to all relevant laws and regulations in your area, such as resident rights and fair housing regulations. Selecting the appropriate liability insurance for your properties to prevent lack of coverage down the road. FAQ Q: Is a property management agreement legally required? A: While not always mandatory, a property management agreement is highly advisable. It protects both the owner and the manager by outlining expectations and responsibilities of managing properties. Q: Do I need a lawyer to draft the agreement? A: While not mandatory, legal guidance is highly recommended. An attorney can ensure the agreement is legally sound, protects your interests, and complies with local laws. Q: Can I use this template for agreements outside of property management, e.g., for lease agreements or rental agreements? A: No, this template is specific to property management agreements. For other types of agreements, consult with a lawyer or use appropriate templates designed for those purposes. Q: What should I do after finalizing the agreement? A: Once both parties have signed the agreement, keep a copy for your records and provide one to the property manager. Familiarize yourself with the terms and communicate openly to ensure a smooth and successful working relationship. Build a foundation for success A well-drafted property management agreement is the cornerstone of a successful relationship between owner and property manager. By using the provided template as a foundation and consulting with a lawyer for customization, you can establish a clear and comprehensive agreement that provides full transparency and fosters a smooth rental property experience. On top of your agreement, consider rolling out a resident benefits package (RBP). It’s 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.

February 7, 2025

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How to Create Property Management Business Plan [Free Template]

There are as many different perspectives on property management business plans as there are different PM businesses. But one thing holds true – in the classic adage usually attributed to Dwight D. Eisenhower – it’s not the plan that matters so much as the planning. Outlining a detailed business plan is key to defining and communicating your goals to potential clients and investors. It also requires deep insight into what residents want to experience. You may be new to the property management industry, have been managing properties for years and are ready to start your own business, or own a property management company but are looking for greater investment. Whatever the case, we’ll cover important topics to address business plan creation. We’ll explain why business planning can be so important, as well as who to target with your plan. We’ll also share a free template to get you started. Key Learning Objectives: How to identify and find your ideal clients How to articulate your value proposition What to include in your business plan How to outline your business plan A free property management business plan template What is a property management business plan? A property management business plan is an overview of your company's services, go-to-market strategy, financial plan, and leadership. It provides details on your property management company and how you intend to operate it. Your business plan should be thorough enough that readers can clearly see how you'll run a successful property management business. It should illustrate that you have a comprehensive understanding of the industry and your position in it, as well as your future growth goals. Why do you need a property management business plan? A property management business plan provides a clear view of what you need to do to make your business successful. The process of creating a business plan forces you to truly evaluate your standing as a company, including factors like cash flow, staffing, and sales strategy. Your business plan also provides a roadmap for success. It outlines what steps you need to take to be successful. Whether you're considering large financial projects or incremental business improvements, your business plan helps you better understand how to execute. It also helps you position your company within the property management industry. It can guide your ability to stand out compared to other property management companies and acquire new investors to manage. What to know before creating a property management business plan For entrepreneurs, planning is the key to success. Here’s what you need to get clear at the outset. State laws governing property management business Each property management company’s approach is very dependent on regional or state regulations. Before taking any steps to either start or change your business, you need to have a clear understanding of the local laws governing your business venture. We highly recommend hiring an attorney who can help you navigate those laws and regulations. How to create a successful property management business plan Peter Lohmann, CEO of RL Property Management, lays out three critical steps for residential property managers looking to crystalize a successful business plan: Identify your ideal clients. Articulate your unique value proposition for those clients. Go out and find leads. Who are your ideal clients? “Get really clear on who your ideal customer is,” Lohmann says. “Are you managing associations, office buildings, big apartments, single-family rentals, etc.? The narrower and more specific you can be, the better your life is going to be and the more money you’re going to make.” In other words, anything outside of this target market is going to be a waste of your time. That’s why this is the first step. “The more narrow and specific you can be here, the more directly you can speak to your prospects in a way that’s compelling,” Lohmann says. “Everything becomes easier – content strategy, sales conversations, even operations become easier – if you know who you want to manage for and what types of properties you want to manage.” Articulate your unique value to those clients The next step is to identify your unique value proposition. There are tons of other property management companies out there. Why should your ideal client choose you? In Lohmann’s words: “Your second step is to ask, ‘Why should anyone care?’ Property management isn’t a new concept; there are tons of property managers. So, identify what your unique value proposition is.” This is key to figuring out not just who to pitch to but how to pitch to them. “What are you going to talk about?” Lohmann says. “You can’t just say, ‘Oh, hire us, we’re the best!’ You need clear examples that say, ‘Our company does something a little different.’” For RL Property Management, that started as a promise that they would never charge a leasing fee. “Sure, it’s kind of crazy, and I don’t know anyone else who doesn’t charge that, but it worked,” Lohmann says. “We were trying to figure out why everyone hated their property manager. And we decided that it might be an incentive problem where the property manager’s incentive is to fill the unit as quickly as possible so they can get that big leasing fee, and that was creating bad outcomes for property owners. So we decided that we weren't going to charge a leasing fee, and we've stuck with it ever since.” How to find your ideal clients The third and final step of preparation is to identify where you need to go out and find leads and engage property management marketing. “Given what you know about how you defined your ideal prospect and your company and what they offer, the next question is where you go and get these leads,” Lohmann says. “A lot of property managers start with this third step. They just say, ‘How can I get more leads?’ But that’s the wrong question. Why do you deserve those leads? Answer that first. Downstream of that is ‘Where are those people hanging out, and how can I get this to them?’” Getting this step right involves researching property management and real estate property in your area and getting familiar with industry news, conferences, and listings. Define your business model Your business model, which is a core piece of a business plan, outlines your cost structure and revenue streams. Put simple, it's how you plan to generate profits. Many property management companies select from a few different business models and fee structures. For example, full-service, fee-based, and hybrid models are all popular. This is where you should decide whether you want to charge a flat fee, charge a portion of rent, or some combination. Consider how you want to charge for listing and leasing services, big-ticket maintenance items, and more. What should a property management business plan include? If you’re starting a new business and aiming to present a business plan to investors, or even business partners, you should outline each section below as a presentation deck. The information presented in this section needs to read like it is designed for investors and should highlight key terms and concepts they care about. Here’s a sample property management business plan outline, followed by a detailed explanation: Executive Summary Company Overview Market Analysis (Industry, Customer, and Competitive Analysis) Services Marketing Plan & Sales Strategy Operations Management Management Team Financial Plan Growth Opportunities Executive summary This is a high-level overview of your entire presentation, and should be the last section that you write. You want to be concise but interesting and hook the reader quickly. Outline the following in broad strokes: The type of property management company you are operating Your target market Your objectives Your plan for meeting these objectives Company overview The company overview will dive deeper into your property management niche and business model. Explain what types of properties you manage and how you operate. Options include single-family residential property management (SFR), multi-family property management (MFR) or residential apartments, HOA management, and commercial property management. Give a brief history of your company and your legal business structure. Other important information might include: Your key competitive differentiators and core competencies Your metrics for success Your management team Financial details Mission and vision statements Market analysis (industry, customer, and competitive analysis) The market analysis benefits you almost as much as it does your audience. Researching for this section will help you more deeply understand the industry, customers, and competition. Industry analysis should include details on the trajectory of the market, its size, and key trends, along with challenges and opportunities. Customer analysis should include details about your target customers, their wants and needs, etc. Competitive analysis should outline direct competitors (PMCs in your area) and indirect competitors like in-house managers, automated tools, etc. Explain why your value proposition is unique. Ideally, present a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis. Services This section should describe the property management services the company plans to offer, such as leasing, maintenance, and rent collection. Depending on the jurisdiction, legal compliance and documentation services may be relevant to property management associations as well. This section should also discuss the pricing strategy for these services. Marketing plan and sales strategy Your go-to-market section should describe the company's marketing and sales strategy, including how it plans to attract and retain clients. It should also discuss any advertising or promotional campaigns the company plans to undertake. Promotions could include paid advertising in print and on websites, social media marketing, radio advertising, SEO marketing, and more. Here, it’s important to document your marketing channels (organic online, targeted online, print advertising, professional networking) as well as ongoing sales and marketing programs. Related: 10 Property Management Goals to Set for the Year (with examples) Operations management Outline your short-term processes and long-term business goals, as well as estimate day-to-day operations. What property management software are you using in the business? What bottlenecks slow down work that’s moving through the organization? How will you structure your company and your teams? You should also include details on critical process workflows, risk mitigation strategies, and technology integrations and updates. Management team Outline your management structure and the skills and experience of your management team. Highlight property management and other real estate experience. Consider who you have in the company, who is a right fit, and who needs to be looked at as not a great fit. Financial plan Outline your major cost centers and revenue drivers. What management fees are you going to charge? You should include a profit and loss statement, balance sheets, and a cash flow statement. Growth opportunities Identify and outline the most targeted growth opportunities for your business right now and over the next five and ten years. Knowing your long-term goals requires you to gain a deep understanding of the real estate and property management market in your area and to understand clearly where you fit in and how you can generate growth and value for years to come. Typically, this section includes: Expansion plans Strategic alliances Technology upgrades Emerging market trends Property management business plan free template Follow this checklist or else download our free PMC business plan template to customize to your business. Executive Summary The type of property management company you are operating Your target market Your objectives Your plan for meeting these objectives Company Overview Mission and vision statements Your property management niche and business model How you operate Company history Your legal business structure Your key competitive differentiators and core competencies Your metrics for success Your management team Financial overview Market Analysis Industry assessment Customer analysis Competitive analysis Services Marketing Plan & Sales Strategy Outline of sales and marketing plans Marketing channels Ongoing sales and marketing programs Operations Management Long-term business goals Current processes Critical process workflows Risk mitigation strategies Technology integrations and updates Management Team Management structure Skills and experience Financial Plan Financial projections Cost centers and revenue drivers P&L statement Balance sheet Cash flow statement Growth Opportunities Targeted growth opportunities Expansion plans Strategic alliances Technology upgrades Emerging market trends ‍ Get your free PMC business plan template here. Beyond the business plan: Increase retention with an RBP At Second Nature, we work with property managers around the country to develop better resident experiences that generate more value for their clients and their companies. A Resident Benefits Package, or RBP, helps property managers at every stage of their company’s growth. Each product in this package delivers a service that residents want and sets your PMC apart. Our goal is to help make running a successful property management business as easy as second nature. Related: Property Management Startup Checklist

January 29, 2025

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Why Rent Reporting Services Are a Triple Win for Investors, Residents, & Property Managers

All kinds of big consumer purchases are reported to credit bureaus—car loans, credit cards, even furniture financing—but for many people, their largest and most consistent monthly expense simply doesn’t make the cut: rent. Rent reporting services are transforming the property management landscape, creating a Triple Win of benefits for residents, property managers, and investors alike. These programs bridge a critical gap in the financial system by turning rent payments into a tool for building credit. “It’s kind of crazy that someone’s largest monthly expense—their housing payment—is one of the only payments that isn’t on their credit report,” our Chief Customer Officer Andrew Smallwood said in a recent interview. “It’s a really significant payment on a monthly basis.” Below, we’ll take a closer look at the concept of rent reporting and its benefits: For residents: Empowering financial growth through improved credit scores. For property managers: Enhancing tenant satisfaction while reducing administrative hassle for providers. For investors and owners: Increasing tenant stability and ensuring consistent cash flow. Note: At Second Nature, we prefer the term “residents” over “tenants” to emphasize the relationship aspect of property management. However, legal contexts may still require “tenant” for clarity. What exactly is rent reporting? Rent reporting is the process of submitting rental payment data to credit bureaus (TransUnion, Equifax, and Experian) so that rent payment history becomes part of a resident’s credit history. This creates a built-in reward system providing additional incentives to pay rent on time, helping residents build credit and, in turn, access better financial opportunities. For property managers, offering this service can streamline operations and enhance resident satisfaction by aligning their financial goals with reliable rent payments. There are two primary ways rent reporting works: Property manager-led reporting: Property managers can use a rent reporting service to submit rental payments on behalf of their residents, ensuring accuracy and consistency. Resident-led reporting: Residents can sign up for a rent reporting service themselves, which tracks their payments and reports them directly to the credit bureaus. Once payments are reported, they’re factored into the resident’s credit score. On-time payments reflect positively, potentially boosting their score. If missed or incomplete payments are reported, they may have a negative impact. Typically, a new tradeline appears on a resident’s credit report within 90 days of starting the service. Rent reporting services: A Triple Win Residents Smallwood reflected that a member of the Second Nature team rents a home and gets credit building services through their Resident Benefits Package. This individual tracked the first 16 months of renting the property. “What he saw was his score increased by 72 points over that time period, which, to put that in perspective, getting an increase of 20 to 40 points is likely going to move somebody up one to two tiers. A 70-point score is likely to boost somebody up probably two tiers, maybe even three, but what’s the impact of that? It makes life outside of rent much more affordable.” Rent reporting services give residents a significant advantage by transforming what was once an unrecognized expense into a credit-building opportunity. In turn, an improved credit history can open doors to new financial opportunities, such as better loan and credit card eligibility, improved interest rates, and even greater accessibility to future housing. For example, residents who report rent payments see an average 29% increase in their credit scores, which could mean the difference between qualifying for a mortgage, or securing lower interest rates from lenders on a car loan or credit card. This kind of improvement can also lead to significant annual savings on car payments, credit card interest, and future mortgage payments. When it comes to cost, residents who self-report typically pay a small monthly fee for these services, while property managers offering the service as part of a benefits package often include it in their rent agreement. In either case, the investment is minimal compared to the financial benefits of improved credit. Of course, it’s important to note that credit scores are influenced by multiple factors, and while rent reporting can be a powerful tool, it’s not a guaranteed fix-all—residents must also maintain good financial habits across all areas of their credit history to see meaningful, long-term improvements. Smallwood reflected on the impact of rent reporting services, saying, “When you think about the median home price of $400,000 or more and the mortgage somebody would be taking on that to be qualifying at one to two tiers… [they benefit from a] lower interest rate because of [their] credit score. The impact of that is going to be tens of thousands, maybe even a hundred thousand dollars or more over the lifetime of somebody’s mortgage product. “That’s a huge life-changing type of financial impact. It also means on their auto financing, that they’re going to be getting that at a lower rate. It also means their credit card, if there’s a balance, they're going to be paying a lower point of interest right on that credit card. It may mean the difference between even qualifying for a mortgage in the first place or qualifying for that auto loan that they need to get to work in the first place. And so, somebody’s credit score can really have a huge impact on their financial life, and experience as a resident getting the benefit of their largest monthly contribution towards building their score can make a huge difference.” Property managers Rent reporting services offer property managers a cost-effective solution to streamline operations, enhance tenant relationships, and reduce financial risk. In fact, a 2021 study from TransUnion found that 73% of renters would be more likely to make on-time payments if they knew their payment history was being reported to the bureaus. Positive reporting: On-time payments reported to credit bureaus can have a significant impact on residents building credit, incentivizing timely payments, and reducing the likelihood of delinquencies. Tenant screening: Rent reporting creates a transparent rental history and credit profile that future landlords can access, offering insights into a tenant’s payment behavior—both positive and negative. Marketability: Properties offering rent reporting attract tenants with financial goals aligned toward building good credit. These financially responsible tenants are also more likely to pay on time, reducing overall risk. Additional amenity: Including rent reporting as part of a benefits package positions property managers as forward-thinking and resident-focused, helping to retain existing tenants while drawing in new ones. Rent reporting services can even create opportunities for ancillary revenue streams—depending on the program structure. Investors and owners For investors and property owners, rent reporting services provide an invaluable level of financial stability and predictability. By incentivizing on-time rent payments, these services reduce the likelihood of delinquency, ensuring a steady stream of income. Owners can rest easier knowing their tenants are more likely to stay in their homes longer, minimizing costly turnovers and vacancies. Additionally, rent reporting aligns tenant interests with responsible financial behavior, which translates to fewer risks for property owners. Stable, long-term tenants not only protect the value of the investment property but also contribute to overall financial peace of mind. Final thoughts Rent reporting services can represent a transformative opportunity for residents, property managers, and investors. By integrating rent payments into credit reporting, these services empower residents to build better credit, provide property managers with streamlined tools to enhance tenant satisfaction and offer investors the stability of longer-term, financially responsible tenants. Interested in exploring what these services can do for your residents? Second Nature’s Resident Benefits Package makes implementing rent reporting effortless. With features like credit reporting to all three major credit bureaus, 24 months of back-reporting on past payments, and an automated, fully managed process, Second Nature ensures you can maximize the value of your property management strategy while creating meaningful benefits for residents. To learn more about how rent reporting and the entire RBP can create a Triple Win for your company, join our upcoming RBP Workshop.

January 2, 2025

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Tenant Gift Ideas for All Occasions

As Second Nature, we recognize that many in the industry use terms like "tenant gifts." However, you'll see us use the term "resident" in place of "tenant" as a way to emphasize the human element of property management. There may be instances where "tenant" and "tenancy" are used for legal purposes, or in quotes from property managers or other sources, but we prefer "resident" because it better reflects who they are as people, and sets property managers up to forge stronger relationships with them. Building strong relationships with your residents is essential to running a successful rental property (or properties). That’s why thoughtful, well-timed gifts can be a great way to not only create a sense of community, foster goodwill, and boost retention, but ensure the long-term success of your property management business. In this blog, we’ll explore: What resident gifts are, as well as practical and personalized gift ideas for all budgets and occasions The benefits gifts provide to both property managers and residents When to give resident gifts, such as key events like milestones or holidays Benefits of resident appreciation gifts Who doesn’t like feeling appreciated? Showing your residents what they mean to you can offer numerous advantages, helping to foster a positive and lasting relationship. Increases resident retention: A thoughtful gift demonstrates that you value your residents, making them feel appreciated and more likely to renew their leases. Encourages positive reviews: Happy residents are more likely to leave glowing reviews, boosting your reputation as a property manager. Sets you apart: Small gestures of goodwill can distinguish you from other property managers, making your properties more desirable. Builds trust and respect: Resident appreciation strengthens the manager-resident relationship by fostering mutual trust and respect. Maintains the relationship: If there has been a misunderstanding or miscommunication between the property manager and resident, a thoughtful gift from the property manager could help smooth things over. Investing in resident appreciation initiatives is a simple but effective way to enhance resident satisfaction and create a more harmonious living environment. Related: 9 Ways to Improve Your Resident Experience Why is Resident Experience Important? The State of Resident Experience Report (whitepaper) Overview of gift types There are all kinds of thoughtful gift options that property managers can offer to residents, creating opportunities to extend a sense of community and appreciation. Welcome packages: Everyday essentials like disinfecting wipes, filters, and toilet paper with a personalized welcome message are often well-received by new residents who are just moving in. Discounts or special offers: Reduced rent or exclusive deals, especially during the holidays, can go a long way in showing appreciation. (Learn more about different resident rewards you can offer through Second Nature’s Resident Benefits Package.) Gift cards: Options like coffee gift cards, grocery store vouchers, or spa services provide flexible and practical benefits. Other ideas include gas cards or gift cards from large retailers (such as Walmart or Amazon). (Gift cards are a type of resident rewards you can customize in your Resident Benefits Package.) Community-building contests: Organizing monthly or seasonal contests or giveaways for residents can foster engagement and create a stronger sense of community. Seasonal treats: Consumables like holiday-themed candy, desserts, or other festive goodies. Pet-friendly gifts: If your company allows residents to have pets, toys or treats for furry friends can be a thoughtful touch. Each of these gift ideas is a simple yet effective way to show residents that their satisfaction and happiness matter. Creative resident appreciation gifts by occasion Property managers can customize a resident rewards program, as part of Second Nature’s Resident Benefits Package, as a way to reward positive resident behaviors. Related: What Is a Rent Rewards Program? Although certain occasions or incentives can make gifting especially meaningful, you don’t always need a specific reason to show appreciation to your best residents. Here are some of the best times to consider. Welcome and move-in gift baskets for new residents First impressions matter, and a thoughtful welcome gift can set the tone for a positive relationship with new residents. Move-in gift baskets are a simple yet impactful way to show your appreciation and help tenants settle into their new home. A few approaches include: Practical essentials: Cleaning supplies like paper towels, laundry detergent samples, bathroom essentials like toothpaste, or kitchen basics like dish soap and sponges can be a lifesaver on moving day. Comfort items: Small snacks, a bottle of wine*, or a cozy throw blanket will make the space feel more inviting. (*Wine for adults over 21 only.) Local touches: Gift cards to nearby cafes, maps of the neighborhood, or coupons for local services help residents feel connected to their community. Sustainability-focused gifts: Reusable water bottles, energy-efficient lightbulbs, or biodegradable products align with eco-friendly values. First night’s dinner: Consider a gift card to a local take-out spot so that your residents don’t have to worry about cooking dinner on their first night when all their cookware is still packed away. These gift baskets not only make moving day easier but also show that you genuinely care about your residents’ comfort and experience from the start. A truly welcoming move-in gift for residents In this social post, Ian Joseph, the Owner and Founder of The Joseph Group, showcases a carefully curated move-in gift package designed to make a positive first impression on new residents. The package includes: A custom “welcome home” candle with a unique scent A freshly picked dahlia from a local farm A handwritten note from the property manager with a "dinner on us tonight” offer A folder containing resident benefits and orientation materials to help new residents settle in smoothly An orientation service offering on-site assistance from the moving concierge team This thoughtful combination of practical items, personal touches, and supportive services helps create a warm, welcoming, and stress-free experience for new residents. Resident appreciation gifts Thoughtful, personalized gifts can make residents feel valued and foster stronger relationships year-round. Whether you’re celebrating a major milestone or simply recognizing their presence in your community, these gestures can go a long way in creating memorable moments. Key milestones to celebrate Life events: Big moments like weddings, new babies, or graduations are perfect opportunities to send a personalized gift. A baby care package or a keepsake for newlyweds can make these moments even more special. Resident rewards program: Incorporate appreciation into structured initiatives like rent rewards programs, as part of your Resident Benefits Package, by offering perks such as event tickets, local discounts, or special experiences tailored to your residents’ preferences. Surprise gestures: Even small, unexpected acts—like a note of appreciation with a coffee shop voucher—can leave a lasting positive impression. Customization makes a difference Personalized gifts stand out because they show thoughtfulness. For example, a hand-written birthday card paired with a small, customized gift adds a personal touch that goes beyond standard gestures. When planning resident gifts, draw inspiration from real-life examples, ensuring they’re meaningful and relevant to the occasion. Thoughtful customization doesn’t have to be complicated, but it does make a lasting impact. Lease renewal gifts Thank long-term residents for renewing their lease—consider a gas or grocery card to show your gratitude for having such a loyal resident. You can also gift an affordable experience, like a movie popcorn basket for your residents to enjoy a nice night in, or an inexpensive goodie bag that you hang on their door. You can also offer small improvements to spruce up the unit now that it’s been lived in for a while. We’ve seen property managers offer carpet cleaning or updates to light fixtures, which would normally happen during turnover, but instead your current residents get to enjoy them! Plus, it keeps the property in good condition, which keeps your investors happy, too. Christmas and holiday gifts for residents The holiday season is an excellent opportunity for property managers to show appreciation to their residents. Thoughtful gifts not only create goodwill but also help strengthen the relationship between property managers and residents. Here are some real-life examples of successful holiday gift ideas: Delightful pies for Thanksgiving Tiffany Izenour, Principal Broker & Owner of Freedom Property Management, shared the tasty treat she gifts residents every year. In the Facebook Group, #PMHealth Group, she wrote, "Got my steps and lifting in today during our annual pie event. 🥧75 enormous pies gifted to clients, tenants, and community partners today. Managed to avoid the temptation of digging into a pie thanks to chatty clients 😁." What a great example of spreading holiday cheer with seasonal pies that residents can enjoy with loved ones during Thanksgiving. (Plus, it’s one less pie for residents to prepare on one of the biggest cooking holidays of the year.) Grocery gift card giveaway Dan McKee, President of Keyrenter Knoxville Property Management, understands the financial stressors residents experience around major holidays like Thanksgiving and Christmas. That’s why for Thanksgiving, residents were able to enter a giveaway for a $100 grocery gift card, just by liking the company’s Facebook page. For Christmas, property owners can opt-in to have Keyrenter Knoxville Property Management send residents $50 gift cards to local restaurants in a holiday greeting card - another win-win for residents. The 12 days of giving Brad Randall, Owner and Operator of Welch Randall Real Estate and Property Management, noticed that he had the highest delinquency rate for rent in the month of December. He decided to incentivize residents by implementing a “12 days of Welch Randall giving” initiative. Residents who paid rent on time during the month of December were entered into daily drawings for gifts such as cash, grills, and event tickets, some sponsored by vendors. Residents could also earn additional entries by leaving a Google review. Not only did this support residents and offer them incentives for paying rent on time, but it also fostered a stronger relationship between residents and property managers. When things go wrong Whether it’s a miscommunication with their management company, an unpreventable maintenance issue, or just bad luck, every resident will run into a tough situation eventually. Being there to support your resident in times of need can solidify trust and help improve your relationship. Consider using tough times as opportunities to really make your residents’ days in unexpected ways. Whether you’re making up for your own mistake, or just trying to cheer them up and help them over a hurdle, small gestures can go a long way. Bouncing back Melissa Gillispie of JWB Real Estate Capital prides herself on going above and beyond. Her secret is simple: listen. “Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Reach out early and often,” she said. “Identify the real roadblock or concern, and do everything in your power to listen and solve it.” In one instance, she had a resident who had a large trampoline in their backyard, but the property owner’s homeowners insurance demanded that it be removed. In response, Melissa and her team got creative. “We bought the resident their very own bounce house!” Budget for resident gifts When planning gifts for your residents, it’s important to balance thoughtfulness with budget considerations. Ultimately, your individual gift budget will also depend on your company’s finances. Make sure you’re maximizing margins so that you can reward the residents who help drive your business forward. Operating on a tight budget may seem intimidating, it’s often enough to cover small but meaningful gestures, such as personalized notes, small gift cards, or eco-friendly items. We also suggest that you speak with your tax advisor or local tax attorney to review any applicable benefits or limitations for gifts with monetary value. Final thoughts Showing appreciation through thoughtful gifts can make a significant impact on resident satisfaction and retention. By adopting a Resident Benefits Package, property managers can build stronger relationships and stand out as a property management company that truly values their residents. To take your resident experience to the next level, explore Second Nature’s comprehensive resident rewards program. Resident Benefits Packages help you create a seamless, rewarding experience for your residents while supporting your property management business.

December 16, 2024

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Property Management Profitability: FAQs on Profit Margin

Property Management profitability is, of course, how much money a property management company keeps of their revenue after their expenses. But Daniel Craig, the CEO of ProfitCoach, wants PMCs to think of profitability far more expansively. “We recommend that you think about profit as the opportunity to reinvest in the business,” Daniel says. “Your business isn’t just a machine that makes a profit; it's a machine that turns profit reinvested into more profit.” In other words, profit is a virtuous cycle that, once started, can deliver increasing ROI, better value, and better business. The big question is: How do property management companies increase profitability? That’s what we connected with Daniel to talk about. We’re sharing some of Daniel’s insights on property management profits and experiences we’ve gathered over years of working with property management companies across the country. Key Learning Objectives: How property management companies increase profit How long it usually takes to become profitable Common mistakes property management companies make when trying to build profit How to optimize operating costs How to find the right residents and property investors Tools for helping to increase profitability Meet the Expert: Daniel Craig Daniel Craig is the CEO of ProfitCoach, which provides property management entrepreneurs with financial knowledge, tools, and strategies to drive greater profits. How do property management companies make money? In the most basic terms, property management companies make money through real estate investors paying for the services they offer. The more value a PMC can drive for its property investors and residents, the more revenue they generate. The profit, of course, is how much is left over after paying all your expenses. “We've worked with hundreds of residential property management companies and seen a wide variety of profitability levels,” Daniel says. ProfitCoach and NARPM started benchmarking profits with the NARPM Financial Performance Guide and Daniel says they’ve seen a significant shift in the past few years. In 2017, the average profitability in the property management space was 6%, and the top 25% of performers’ profitability was 25%. In 2021, the average profitability was 11%, and the top performers were 32%. The important nugget in these benchmarks? Seeing what’s possible. Many rental property managers may not realize they could strive for anywhere from 25% to 32% profitability. But if the target is that high, how do you get there with your business? At ProfitCoach, Daniel and his team have outlined the “Three Steps to 3X Profitability.” Average property management fees Different property management companies structure their fees in different ways, so it’s important to familiarize yourself with the different options and determine what works best for you. First, some property management companies will charge an initial setup fee. Not all companies charge setup fees, and those that do typically keep the fee fairly modest. A 2022 survey of 80 metro areas by iPropertyManagement found that the average setup fee was just $185.24. Next, leasing fees are extremely common. Management companies will typically charge a fee for advertising a unit, collecting applications, screening tenants, and signing leases. Also known as tenant placement services, this is the process of filling a unit so that you can get back to collecting rent, and it’s typically charged as a percentage of rent. According to iPropertyManagement’s survey, the average placement fee is 70.6% of one month’s rent. This is higher than a lease renewal fee, which averages $211.92, according to the survey. Finally, companies will almost always charge a standard management fee. This is the bulk of the expense for most owners, and it may be charged as a flat fee or as a percentage of the rent. The average fee, according to the survey, is 8.49% of rent, but there was a large range in responses—from 3.75% to 14%. It’s also important to be clear in your contract whether your fee is based on rent due or rent collected, so that there’s no dispute if a resident fails to pay. Some companies may also charge other fees, like inspection fees, eviction fees, termination fees, or maintenance reserves. 3 Steps to 3X profitability Here’s what Daniel has to say about the three steps to 3X your profitability. 1. Get clear PMs need to get clear on where they are, where they want to be, and what they can achieve. It’s important to know: What’s possible across the industry Trends in your local market How you compare If you're not clear on the potential, then you're not going to be clear on what you should strive towards. If you're not clear on where you are today, you're not going to be clear on whether you need to change. 2. Define your target Compare your performance to the latest NARPM numbers and benchmarks and determine your target for each of the six Do-or-Die metrics. Maybe the benchmark isn't your target, and that's fine, but you need to know what's possible. Many people go through their business lives without engaging the possibilities. They operate within certain boxes, and those boxes need to be compared to what other people are doing. Then you can adjust your perspective of what's possible and set realistic targets. Next, build a realistic financial forecast that helps you chart the course from where you are to where you want to go based on your financial goals. 3. Stay on track Now it’s time to bring the team into the conversation and basically say, “Here’s our roadmap. What specific tactics and strategies will we enact to accomplish the financial shift we need in each of these six areas of our business?” And once you have those defined, measure your progress against your goals monthly or quarterly. Engage your whole team in the conversation and engage a coach to help you define a financial performance improvement action plan and hold you accountable. How long does it take for a PMC to increase profitability? According to Daniel, businesses should give themselves between one to three years. “We've seen companies make massive changes in 12 months, and we've seen companies make massive changes across several years,” Daniel says. “But generally speaking, I would say to give yourself one to three years to make a major shift – if you want to go from an average company to a benchmark company.” How to set up a property management business for profitability Setting up your business for profitability is often about avoiding the most common mistakes other businesses make. We asked Daniel about where he sees professional property managers most often go wrong. Daniel says three major mistakes affect how profitable your business is. 1. Financial fog Daniel defines financial fog as “Not having clarity on where you are, where you want to go, or what's possible in the industry.” “One of the cool things about this industry is that it's such a unique opportunity,” Daniel says. “I don't think that many property management owners realize the extent to which they can drive profit in this industry. They often don’t have a clear sense of what the real opportunity is.” 2. Financial isolation “At ProfitCoach, we believe that finance should be done in community,” Daniel says. “We are advocates of what we call community-driven finance, which is essentially engaging with community-based benchmarks, community-based best practices, and community-based scoring.” Community-driven finance helps individual rental property managers and businesses know how they’re stacking up against top performers. It also helps generate value for everyone, where each PMC can benefit from best practices from those top performers. “One of the wonderful things about the property management space is that it truly is a community space in which there is a lot of idea sharing,” says Daniel. “We think that when you bring that idea sharing into a conversation that is also numbers-based, you can begin to see the strategies and tactics that will be most effective as indicated by the data.” “Staying in financial isolation is a huge mistake,” he says. 3. Not being mission-driven Being mission-driven is all about thinking in terms of customer lifetime value. Sure, it’s possible to get a quick win on pricing, but it may cost you in the long run if you’re not thinking about lifetime value. Rather, Daniel says, “you want to make sure that your approach to pricing, marketing, everything in your business is values- and mission-driven.” “What is your mission as it relates to your employees? What is your mission as it relates to your stakeholders? What is your mission as it relates to your owners/investors? What is your mission as it relates to your tenants/residents?” How to reduce operating costs to increase profitability So, once you’ve considered the three steps to 3X your profit and evaluated the pitfalls of profitability – what next? How do you actually optimize your operating costs and increase profitability? Daniel advises every PMC to adopt the NARPM Accounting Standards Chart of Accounts for their bookkeeping. He says the best part of using the NARPM Chart of Accounts to optimize your profit is the six “Do-or-Die” metrics. These property management KPIs are critical to business success: Profitability Direct Labor Efficiency Ratio Revenue Per Unit Unit Acquisition Costs Churn Expenses as a Percent of Revenue “It’s critical that property managers get a clear line of sight on how they stack up in terms of specific rental property management metrics that have an operational connection.” For example, an income statement will tell you how much revenue you have but won’t tell you how much revenue per unit you have. By building off your income statement with the PM-specific metrics, you’ll be able to tie it to a more operational connection. For example: From profitability to profit per unit From revenue to revenue per unit From sales and marketing spend to unit acquisition costs In this way, you can understand on a per-unit basis how your business is performing operationally. Daniel says: “The problem with the standard income statement is that it doesn't often give property management owners and entrepreneurs a lot of clarity on specific operational shifts that they need to make in your business. When you implement the NARPM Chart of Accounts, you can then implement a whole suite of metrics that does give you that operational clarity and insight to drive action and improvement in your business.” How to increase profitability in property management Increasing profitability takes time and should be done in a few different steps across your business model. These steps are the same whether you are a large or small business. Daniel breaks down the work between developing your pricing, labor, expense, and growth models. Look at your pricing model Your pricing model is a significant driver of profitability. Getting your pricing right is one of the pillars of profitability. A few things to consider as you are managing properties: How does your pricing compare to the local market in your area? Are you offering any property management services that you should charge management fees for? What are you doing beyond rent collection that you should charge a flat fee for? Are there more services you could offer and charge for their value? How is your cash flow? Daniel cautions that it can take time. “If you roll out a new pricing model to tenants and owners, it takes time to implement. You should give yourself about a year to get that fully implemented.” Look at your labor model Your labor model is the next big thing, as labor is your biggest expense and could also be a driver of inefficiency if you don’t have it right. Daniel recommends asking: Do we have all the right people in the right seats on the bus? Do we have the right mix of U.S. talent versus global talent? Do we have retention strategies in place? Do we have the right systems in place to enable each team member to be maximizing their productivity and their effectiveness in the organization? Again, these questions may lead to significant strategic shifts that you should give yourself time to implement. Look at your expense model This one is a little bit easier but just as important. You can trim expenses fairly quickly once you identify where to cut back. Are you spending too much on overhead? Could you engage property management software to help with bandwidth? In some cases, changing your expense model may take some time – for example, if you need to renegotiate a long-term lease. Look at your growth model Evaluating and updating your growth model is another opportunity for maximizing profitability. Once you’ve identified and set your targets, here are some potential next steps for growth: Finding and hiring a high-performing business development manager Get a new sales process in line Dial in your lead generation strategies so that you have enough leads for that BDM Etc. Again, this shift may take several months or years to integrate into your business processes fully. Launch a Residents Benefit Package Ultimately, one of the best ways to increase profit and influence your bottom line is by considering where you can add more value for your residents and residential property investors. Daniel recommends starting small tweaks to your Revenue Per Unit. “We have seen repeatedly that a 10% improvement to revenue per unit can easily result in a 100% increase in profit per unit. So, look for ways to get small wins on value creation, value communication, and value realization.” Daniel says one of the quickest and most practical ways to adjust Revenue Per Unit is to implement a Resident Benefits Package. (And we didn’t even put him up to it!) “A resident benefits package alone can result in that 10% bump to revenue per unit, which can result in that 100% increase to profit per unit. This profitability can result in more fuel to your freedom, more fuel to your mission, and realizing all the things you went into business for in the first place.” You can also consider adding offerings like Group Rate Internet as a way to increase growth while delivering benefits that your residents want. How to find profitable residents & investors and keep them happy Daniel says they’ve seen significant profitability gains when a company identifies the right-fit and wrong-fit clients. “We have seen significant profitability gains come about for those who are looking through the client list, finding the misfits accelerating, and then getting those misfits out of their portfolio so that they can bring in the right-fit clients who are going to be a better fit from a value proposition perspective. Getting rid of low-performing clients and then backfilling those with the right kind of clients is a great way to improve profitability.” Daniel says that this goes back to being mission-driven. By identifying your point of view on your industry, your values, etc., you can build a “why” for your company that can help you define the right new clients for your business. Daniel uses his own company as an example: “At ProfitCoach, we believe in community-driven finance. If we come into contact with a potential client who's all about financial isolation – they don't want to share their numbers with anybody, they don't want to engage in a community conversation, they don't wanna learn from the best practices in the industry – that's not a good fit for us.” So, the two questions to define are: What is your point of view? What is the value proposition that comes out of that? Based on that value proposition, there will be a certain set of criteria that will define what a right-fit client is and what a wrong-fit client is. Learn more about SecondNature’s Resident Benefits Package, which is designed to generate revenue and “Triple Win” conditions that benefit residents, investors, and property managers alike.

December 16, 2024

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December 2024 Company Spotlight

As 2024 winds down, we wanted to take a moment to share some updates from Second Nature and give you a glimpse at what’s ahead in 2025. It’s been a big year of growth and setting the stage for the next chapter, which we can’t wait to share more about in the coming months. Here’s a quick 4-minute video detailing everything. Or feel free to read the update below: What’s in the video? Team investment for customer success: Growth on product and support to ship more benefits and help serve your business. Personalized RBP Profile Pages: Showcase your benefits with personalized pages tailored to help you market your RBP to residents. Custom RBP Explainer Videos: Customize a video that matches your RBP offering and answers the question, “What is an RBP?” Collaboration Opportunities: Share your ideas and insights with our product team to help shape the future of Second Nature's offerings. The Future of Resident Experience: A glimpse into 2025 when Second Nature evolves into a Resident Experience Platform Personalized RBP Profile Pages We’ve heard your requests for more tools to help property managers market RBPs to residents, and we’re excited to introduce RBP Profile Pages! These customizable pages are designed to detail the benefits of your specific Resident Benefits Package. Easy to link or embed on your website, they provide clear expectations and highlight the value of your services. Example of an RBP Profile Page Please submit this form if you'd like us to create this marketing asset. Our team will customize your page within five business days and share it with you for edits and feedback. We can then share instructions on how to add this to your website. Custom RBP Explainer Videos In addition to RBP profile pages, we also created custom RBP explainer videos. Each video is tailored to your specific RBP offering, so you only show what you provide to your residents. Here’s an example of an RPB video that can then be trimmed and altered to match your RBP offering: To get your custom RBP explainer video, use the same form to claim your RBP Profile Page. We'll then embed your tailored video directly onto your RBP profile page and share the video embed code for you to add anywhere else on your website. Collaboration Opportunities At Second Nature, we believe the best products are built in collaboration with the people who use them daily. That’s why we’re inviting you to work directly with our product team. You’ll have the opportunity to preview new ideas, share feedback on upcoming features, and help influence the tools that make managing properties easier and more efficient. Your insights drive our innovation, and we can’t wait to create with you. Fill out this form for an opportunity to connect with our product team to help co-build the future of resident experience. The Future of Resident Experience As we move into the next year, we’re focused on closing the “experience gap” in renting—the disconnect between modern consumer expectations and outdated rental processes. Our Resident Experience Platform is designed to make renting seamless, transparent, and personalized, turning what’s often a transactional process into a positive experience for residents. By rethinking everything from onboarding to communication, we’re empowering property managers to deliver the convenience and clarity that today’s residents expect. Together, we can set new standards for the rental experience and make 2025 a breakthrough year. Here’s to What’s Next This is just the beginning. You’ll be hearing more from us in the coming months as we work on elevating the resident experience together. We’re so grateful to have you as a partner on this journey, and we can’t wait to see what we’ll accomplish together in 2025. Let’s make it a year to remember!

December 11, 2024

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Your Guide to Property Management Laws, Regulations, & Rules

Property management activities involve overseeing rental properties, ensuring they’re maintained, residents are managed, and finances are handled effectively. While a real estate license is not always necessary to manage rental properties, licensing requirements can vary significantly by state. Typically, states may require property managers to hold a real estate license or work under a licensed broker. Property managers should familiarize themselves with the specific regulations in their state to ensure compliance. Related: What is the resident benefits package? Basics of Property Management Regulations Property management regulations serve as the legal backbone for managing rental properties, outlining obligations for property managers, and protecting residents. These rules vary across states, but a few core areas apply universally: Licensing requirements To legally operate, property managers in many states must hold a real estate license or work under a licensed broker. Some states, like California and Texas, have specific regulatory bodies overseeing these activities, such as the California Department of Real Estate or the Texas Real Estate Commission. These agencies enforce compliance and provide resources for navigating the requirements. Fair housing compliance The Fair Housing Act prohibits discrimination based on race, color, religion, sex, familial status, disability, or national origin. Adherence to these anti-discriminatory laws is mandatory, affecting everything from resident screenings to marketing practices. Lease and rental agreements Legally binding lease agreements must meet state-specific guidelines. These include clear communication and terms on rent, security deposits, maintenance responsibilities, and notice requirements. States often cap security deposits and mandate how they should be handled, including timelines for their return after the lease ends. Maintenance and habitability Property managers are required to keep residential properties safe and habitable. This includes ensuring access to essentials like heating, water, and electricity, as well as addressing safety hazards such as mold or lead-based paint. Laws typically require reasonable notice to residents before entering for repairs, which again, varies by state. Resident rights and evictions Eviction procedures are governed by state law, dictating notice periods and allowable reasons for termination. For instance, in states like California, tenants must receive at least three days of notice to cure or quit before an eviction process can proceed. In other jurisdictions, notice periods and rules around "unconditional quit" orders differ. Financial responsibilities Property managers must handle resident funds, such as rent and security deposits, in accordance with local laws. Accurate record-keeping and transparent accounting practices help avoid disputes and ensure compliance with tax and financial regulations. Understanding these fundamentals, along with state-specific variations, is essential for property managers to operate lawfully and build trust between property owners and residents. What Are Some Important Property Management Rules and Regulations? Property management laws encompass various areas, ensuring the safety, rights, and responsibilities of both property managers and tenants. Key areas include: Anti-discriminatory laws The Federal Fair Housing Amendments Act (FHAA) establishes clear protections to ensure equal access to housing opportunities. This includes prohibiting practices such as refusing to rent, setting different terms, or falsely claiming availability based on a person’s race, color, religion, sex, familial status, national origin, or disability. Property managers must also ensure advertising does not suggest a preference or limitation that violates these protections. Accessibility, such as allowing reasonable modifications for residents with disabilities, is another critical aspect of compliance. Local laws often extend these protections further, making it essential to review and adhere to all relevant regulations. Lease paperwork Lease agreements are foundational to the relationship between property managers and residents. These contracts should specify key details such as rent amount, payment due dates, security deposit terms, and the length of the lease. They must also outline responsibilities for property maintenance, procedures for repairs, and rules for renewal or termination. Many states impose specific requirements, such as disclosures about lead-based paint or local ordinances. Failing to include mandatory terms or misrepresenting details can lead to legal disputes or voided agreements. To safeguard both parties, leases should be clearly written, precise, and compliant with applicable laws. Safety, maintenance, and repairs Providing a safe and habitable environment is a legal duty for property managers. Basic habitability standards include functional heating systems, access to potable water, weatherproofing, and working electrical systems. Some jurisdictions have additional requirements, such as pest control, smoke detectors, and carbon monoxide alarms. When repairs are necessary, most states require property managers to provide adequate notice before entering a resident's home. Promptly addressing maintenance issues not only avoids legal complications but also reduces resident turnover and protects the property’s long-term value. Residents, in turn, may have the right to withhold rent or arrange repairs themselves if habitability standards are not met. Financial management Managing resident funds requires strict compliance with legal standards to prevent disputes, protect financial integrity, and promote a relationship of trust. Security deposits are often regulated by state laws, which set limits on amounts, dictate how funds must be held (e.g., in separate escrow accounts), and outline timelines for their return after a lease ends. Monthly rent collection should follow a clear system, with receipts provided and payment terms documented. Accurate record-keeping is not only a best practice but also a legal requirement in many states, particularly during tax filings or legal audits. Property management laws by state Each state has specific property management laws that property managers must adhere to. For instance, in many (but not all) jurisdictions, property managers must obtain a real estate broker license to operate. These laws are typically drafted and enforced by various regulatory bodies such as the state's Department of Real Estate or similar agencies. For instance, the California Department of Real Estate is responsible for regulating real estate activities, brokers, and salespersons, including those who work in property management, while the Texas Real Estate Commission handles these responsibilities in Texas. These agencies ensure compliance with state licensing laws and often provide resources and guidelines for property managers of both residential properties and commercial properties. Below is a table linking to the respective government sites for state-specific regulations: State State Body Alabama property management laws Alabama Real Estate Commission Alaska property management laws Alaska Real Estate Commission Arizona property management laws Arizona Department of Real Estate Arkansas property management laws Arkansas Real Estate Commission California property management laws California Department of Real Estate Colorado property management laws Colorado Division of Real Estate Connecticut property management laws Connecticut Department of Consumer Protection Delaware property management laws Delaware Real Estate Commission Florida property management laws Florida Department of Business & Professional Regulation Georgia property management laws Georgia Real Estate Commission and Appraisers Board Hawaii property management laws Department of Commerce and Consumer Affairs' Real Estate Branch Illinois property management laws Illinois Department of Financial and Professional Regulation Indiana property management laws Indiana Professional Licensing Agency Iowa property management laws Iowa Department of Inspections, Appeals, & Licensing Kansas property management laws Kansas Real Estate Commission (for commercial real estate property management only) Kentucky property management laws Kentucky Real Estate Commission Louisiana property management laws Louisiana Real Estate Commission Michigan property management laws Michigan Department of Licensing and Regulatory Affairs Minnesota property management laws Minnesota Department of Commerce Mississippi property management laws Mississippi Real Estate Commission Missouri property management laws Missouri Division of Professional Registration Montana property management laws Montana Department of Labor and Industry Nebraska property management laws Nebraska Real Estate Commission Nevada property management laws Nevada Real Estate Division New Hampshire property management laws New Hampshire Real Estate Commission New Jersey property management laws New Jersey Real Estate Commission New Mexico property management laws New Mexico Real Estate Commission New York property management laws New York State Division of Licensing Services North Carolina property management laws North Carolina Real Estate Commission North Dakota property management laws North Dakota Real Estate Commission Ohio property management laws Ohio Division of Real Estate & Professional Licensing Oklahoma property management laws Oklahoma Real Estate Commission Oregon property management laws Oregon Real Estate Agency Pennsylvania property management laws Pennsylvania Real Estate Commission Rhode Island property management laws Rhode Island Department of Business Regulation South Carolina property management laws South Carolina Real Estate Commission South Dakota property management laws South Dakota Real Estate Commission Tennessee property management laws Tennessee Real Estate Commission Texas property management laws Texas Real Estate Commission Utah property management laws Utah Division of Real Estate Virginia property management laws Virginia Department of Professional and Occupational Regulation Washington property management laws Washington State Department of Licensing West Virginia property management laws West Virginia Real Estate Commission Wisconsin property management laws Wisconsin Department of Safety and Professional Services Wyoming property management laws Wyoming Real Estate Commission Note: This list excludes resources from Idaho, Maine, Maryland, Massachusetts, and Vermont. Tenant screenings Tenant screenings are a critical step in property management, involving background checks, credit checks, income verification, employment verification, rental history, and proof of ID to assess prospective tenants. This process helps ensure that potential renters are reliable and financially responsible. It's important to obtain signed consent before running credit checks, as required by the Fair Credit Reporting Act (FCRA), to comply with legal standards and protect tenant privacy. Another important guidance is provided by the Fair Housing Act, which prohibits discrimination in housing-related activities based on race, color, national origin, religion, sex, familial status, and disability, ensuring equal access to housing for all individuals. Learn more about Tenant Screening Tips for PMs Lease agreements A lease agreement is a legally binding contract between the landlord and tenant, outlining the terms of the tenancy. Key components of rental agreements include lease terms, rent amount, security deposit regulations, and common clauses such as maintenance responsibilities and lease renewal terms. Regulations governing lease agreements can vary by state, so it's essential to ensure that leases comply with local laws. For instance, state laws often contain security deposit limits, provisions for the return of unused portions, as well as a clear accounting for any deductions. Consulting with a lawyer is crucial to ensure your agreement is legally sound and reflects your specific circumstances. We’ve shared some relevant resources below: Learn more about property management agreements, featuring a free template Learn about security deposit insurance, and its pros and cons Financial management Effective financial management in property management involves establishing clear rent collection procedures and maintaining organized financial records. This includes tracking rent payments, managing tenants’ security deposits, and adhering to landlord-tenant laws to avoid legal disputes and financial penalties. Keeping detailed records can help property managers resolve issues efficiently and ensure transparency with tenants and property owners. Solutions such as property management software can streamline financial operations, automate routine tasks, and perhaps most importantly - ensure accuracy and regulatory compliance with respect to various accounting regulations and legal requirements. Evictions Evictions are a legal process to remove a tenant from a property. Common reasons for eviction from rental units include nonpayment of rent, property damage, lease violations, and criminal activity. Property managers must follow their state's rules for eviction notices, such as unconditional quit terminations and termination for lease violations, to ensure the process is lawful and fair. State laws regarding unconditional quit terminations and terminations for violation of a lease vary widely. Unconditional quit notices typically demand that tenants move out immediately without an opportunity to remedy the violation. States like Indiana and Mississippi allow landlords to issue these notices for serious or repeated violations, with Mississippi requiring 14 days to move out. For lease violations, the notice period and the opportunity for tenants to remedy the breach also differ by state. For example, in Kentucky, tenants generally have 15 days of written notice to cure a violation, but if the same violation occurs within six months, landlords can issue a 14-day unconditional quit notice. In contrast, states like Iowa and Maine require a seven-day notice period for tenants to address lease violations before eviction proceedings can begin. In California, on the other hand, tenants must be given three days or more to cure the violation before landlords can file for eviction (source). These legal nuances emphasize the importance of PMs and tenants understanding their specific state regulations to navigate eviction processes appropriately. Property maintenance and repairs Maintaining rental properties is a legal obligation for landlords, ensuring that properties are safe, habitable, and free from hazards like lead, asbestos, and mold. This includes weatherproofing, providing adequate heating and water, and ensuring electrical systems are functional. You can find out more about these issues in our Property Maintenance Guide for PMs. Landlords must also give notice to tenants before entering the property for repairs, as required by most state laws. When in doubt, consult a legal advisor to ascertain the specific laws that apply to you in your state. Tenants have the right to a habitable living environment, and failure to meet these standards can lead to legal consequences as well as issues with occupancy rates. Indeed, when landlords fail to make required repairs, tenants have several options depending on their state's laws. Tenants may withhold rent, make the necessary repairs themselves and deduct the cost from the rent, pay a reduced rent, report the issue to local building inspectors who can order repairs, or even break the lease and move out. Additionally, tenants can sue the landlord for a partial refund of past rent or for damages caused by the substandard conditions, including discomfort and emotional distress. Get our preventative maintenance checklist for property management Learn about the importance of pest control to maintain a pest-free environment Second Nature's Guidance Staying informed about state-specific regulations, maintaining organized records, and ensuring compliance with federal laws such as the Fair Housing Amendments Act is key to successful property management. On a practical level, understanding and adhering to property management laws and regulations is crucial for property managers to ensure smooth operations, maintain property value, and foster positive tenant relationships. Learn more about property management company best practices, marketing, and more in our Second Nature Community.

December 9, 2024

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The Resident’s Guide to Resident Benefits Packages

In today’s rental market, Resident Benefits Packages are becoming more popular, offering residents a range of bundled services designed to make their living experience more convenient and enjoyable. These packages aim to simplify tasks such as paying rent, handling maintenance requests, and even safeguarding personal information. However, many residents may not yet be familiar with what these packages actually include and the value they bring. In this guide, we’ll answer some of the most common questions residents have about Resident Benefit Packages, using Second Nature’s Resident Benefits Package as an example. We’ll look at: What a Resident Benefits Package is What Second Nature’s Resident Benefit Package includes How much value these services provide to residents Why residents love Second Nature’s Resident Benefits Package While Second Nature's Resident Benefits Packages offer a wide range of benefits, we’re not the only company that offers a resident benefits package, and not all packages are the same. Please note that Second Nature is committed to offering transparency about what their Resident Benefits Package includes, to ensure that residents know exactly what they’re paying for. Related: Benefits of Second Nature’s RBP™ for Residents FAQs from residents about Resident Benefits Packages When residents hear about Resident Benefits Packages, they may have questions such as “What exactly am I getting?” or “Is this worth the extra cost?” Second Nature has designed its Resident Benefits Packages to be easy to understand and packed with value, so residents can get the most out of their living experience while knowing that the details are taken care of. Let’s explore some of the top questions that residents ask about these packages and how Second Nature addresses them. What is a Resident Benefits Package? Second Nature’s Resident Benefits Package is a collection of services that aim to enhance the resident’s experience. From everyday conveniences like rent payment portals to essential protections such as liability insurance that includes coverage for your belongings, the package is designed to provide peace of mind and streamline various aspects of renting. At its core, the Resident Benefits Package makes it easier for residents to manage their home life. For example, instead of tracking down different service providers, residents get everything in one convenient bundle. This helps reduce the hassle of setting up utilities, purchasing separate insurance, and dealing with unexpected issues like maintenance requests. In addition to making life easier, the package offers key benefits that protect residents, simplify communications with your property management, and provide added value throughout the lease. What’s included in Second Nature’s Resident Benefits Package? Second Nature has curated a robust Resident Benefits Package that covers a variety of essential services for residents. The benefits meet the needs and wants of residents during their tenancy. Here’s what’s Second Nature’s package includes: Renters Insurance Program*: Covers certain damages to your belongings and legal expenses in the event of a claim brought against you that occurred on your property. This eliminates the need to shop around for separate insurance policies. HVAC filter delivery: Receiving regular air filter replacements helps maintain air quality and extend the life of the HVAC system of the home. With filters delivered directly to the resident’s door, it’s one less thing to worry about. Plus, we found that it can cut utility bills by up to 15%. Credit building services: For residents looking to improve their credit score, timely rent payments can now be reported to all three of the national credit bureaus (Experian, TransUnion, and Equifax), helping to boost their credit over time. Identity protection: In today’s digital age, identity theft is a growing concern. Second Nature includes up to $1 million in identity protection services through Aura, offering another layer of security for residents listed on the lease who are 18+. This also includes dark web monitoring, fraud alerts, and much more. Move-in concierge: Calling multiple providers to set up utilities or researching online for hours is a thing of the past. With this service built into our package, that means less time and less stress in setting up utilities so residents can cross off one more thing on their move-in checklist. On-demand pest control: Second Nature’s on-demand pest control stops the pest issue in its tracks, while also immediately addressing any new issues that might come up. Residents can enjoy a clean, livable space without worrying about rodents and critters. (Note: These services may not be available in all areas.) Resident rewards program: In addition to welcome gifts when they sign their lease agreement, residents could receive additional perks when they submit on-time rental payments. (Benefits are customizable and incentives may vary across different property managers.) Group Rate Internet: Second Nature has partnered with major internet service providers to offer group rate pricing on gigabit-speed internet for single-family rental homes. Residents get high-speed service at a reduced rate, all managed by Second Nature. (Note: Not all residences are eligible for Group Rate Internet.) Additional complimentary services at no cost to you when enrolled in a Second Nature Resident Benefit Package: 24/7 maintenance request hotline: Emergencies don’t always happen during business hours. Second Nature provides around-the-clock access to maintenance support, which helps ensure residents are never left stranded in the event of a problem. Online rent payment portal: Paying rent is simpler than ever with an online portal that offers auto-pay options and a transparent payment history, as well as notification reminders when rent is due. No more writing checks and hand-delivering them to your property manager or worrying about late fees. For complete transparency, Second Nature has shared the full list of services here. How much do residents save with these services? While the exact pricing of Resident Benefits Packages can vary from one property management company to another, bundling these services typically results in savings. By providing essential services like filter delivery, pest control, and identity protection all in one package, residents avoid the higher costs of purchasing each service individually. For instance, enrolling in on-demand pest control alone could cost more than $40 or more per month (depending on services), and identity theft protection might add another $10 to $15 per month. Group Rate Internet can also add significant savings. When you start adding in the convenience of an online rent portal and 24/7 maintenance, the total value of these services can easily exceed what’s bundled in a typical resident benefits package. All told, residents typically save by opting into a resident benefits package rather than sourcing these services independently. While pricing for resident benefits packages will vary by company, the savings that are baked in can be significant. For a deeper look at potential savings with Second Nature’s RBP™, check out the details. Is the Resident Benefits Package part of the lease agreement? Yes, the Resident Benefits Package offered by Second Nature is included as part of the lease agreement, making it a seamless part of your rental experience. This is a best practice, designed to ensure that residents are aware that there are no hidden fees or surprise additions after the lease has been signed. By including the details about the Resident Benefits Package in the lease, property managers provide transparency about what services residents will receive and the associated costs. This also helps prevent confusion about whether services are optional or required, as all the terms are laid out from the start. For properties that introduce the Resident Benefits Package during a lease renewal, all details will be clearly communicated to residents before the new lease is signed. This ensures that there are no surprises, and residents can review the benefits and ask any clarifying questions to their property manager before the lease renewal takes place. Is Second Nature’s Resident Benefits Package compliant? When it comes to compliance, Second Nature takes great care in ensuring that all aspects of its Resident Benefits Package meet the highest standards. In doing so, Second Nature provides guidance to property managers to make sure they have the relevant information necessary to ensure the services offered comply with local and federal regulations. This focus on compliance is key to ensuring that both property managers and residents can enjoy the benefits of the package without worrying about legal concerns. Why residents love Second Nature’s Resident Benefits Package The feedback from residents who use Second Nature’s RBP™ is overwhelmingly positive. By bundling key services into one simple package, residents don’t have to spend time worrying about finding the best liability insurance or wondering how to get a maintenance issue fixed at 2 a.m. Second Nature goes above and beyond to ensure that residents have the best experience possible in their homes. Here are a few examples of how Second Nature’s services make life easier for residents: Emergency repairs made easy: Imagine coming home from work to find that your apartment’s air conditioning has stopped working in the middle of summer. With a 24/7 maintenance hotline, help is just a phone call away, no matter the time of day. Automatic rent payments: For busy professionals or students, keeping track of monthly rent can be tricky. With the online rent portal, residents can set up auto-pay, avoiding the hassle of late payments and tracking down checks. Credit score boost: For residents hoping to buy a home in the future, credit-building services can be a huge advantage. By reporting timely rent payments, Second Nature helps residents improve their credit over time, potentially helping them qualify for mortgages and other loans down the line. Extra services to support residents: Enrolling in the renters insurance program helps to protect your personal belongings, on-demand pest control ensures you don’t have to worry about rodents or bugs in or around your home, move-in support saves time setting up utilities, and identity protection will give you peace of mind as you move into your new home. To read more about why residents love Second Nature, check out their solutions. Final thoughts Resident Benefits Packages, like the one offered by Second Nature, provide a convenient and valuable solution for residents looking to simplify their lives. By having essential services bundled into one package, residents can save time and money, while enjoying the peace of mind that comes with knowing they’re covered for everyday issues. If you’re a resident and want to learn more about how Second Nature’s Resident Benefits Package can benefit you, contact our team today! * Renters Insurance Program is provided by Second Nature Insurance Services, LLC (NPN 20224621). Any policies placed under this program are placed by the preferred insurance partner-broker of Second Nature’s Insurance Services, LLC. Coverage subject to policy inclusions.

December 6, 2024

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10 Property Management Goals to Set for the Year (with examples)

Goal-setting is critical to planning for a changing industry. Before we dive into specific property management goals we recommend for the coming year, let's take a minute to define how to approach goal setting in property management. How to set goals and objectives for your property management company Think long-term Dr. Stephen Covey’s 2nd habit is “Begin with The End in Mind,” the principles of which should be applied to your property management strategies as a single-family rental property manager. This is especially true now as we enter 2024 with an industry that continues to evolve. Goal-setting should start with an understanding of where you want to be in several years, not just at the end of this year. It forces you to consider industry trends that you may not feel the impact of immediately but will definitely affect the viability of your business in the future. Short-term goals should ladder up to long-term goals. They should serve as pieces to the long-term puzzle. It’s important not to lose sight of what that puzzle is supposed to look like when it’s finished. Identify opportunities to improve resident experience and retention The most important property management industry trend continues to be the evolution of demand from a simple service to a more complex experience. Thus, you should be identifying opportunities to improve resident experience and setting goals based on how you want to achieve said improvement. What can you do this coming year to improve the living experience for your residents? This could include new programs to be developed and implemented, new roles on the team specifically focused on experience, or a number of things, depending on your answer. The best way to identify opportunities is to listen to your residents. It sounds simple, but they’ll tell you what they perceive as a great living experience, and that becomes data you can act on. Consider a list of services you think a resident may like, some of which could be rental rewards, home-buying assistance, credit reporting, holiday gift certificates to local businesses, etc. You can survey your residents on these ideas pretty easily, or you can simply roll them out and gauge resident response. Identify opportunities to improve investor experience We talk a lot about the triple win here at Second Nature. The third branch of the triple win is a win for your clients. Typically, this is laddered up to by a resident win, which minimizes vacancy to the benefit of the client. There is more you can do, though, to really deliver something irreplaceable to your clients. A popular takeaway from PMLX was the value of communication with clients. Scheduling quarterly meetings with your clients has proven valuable to the companies that pioneered this concept. Launching these quickly became a popular short-term 2024 goal for many attendees. Clients leave with an extensive understanding of what is happening with their investments. That’s an additional win for them and for you, as investors are not only more involved, but they tend to appreciate the time you take to communicate with them and can gain deeper insight into the full value that your company provides. Plan sustainable growth initiatives Like thinking long-term, creating sustainable growth initiatives involves expanding your business in a manner that's not only profitable but also manageable and responsible. This means considering how growth will impact all facets of your business, from your operational capacity to the quality of service you provide to residents and investors. Start by analyzing market trends and potential areas for expansion, whether it's by increasing the number of properties you manage or venturing into new geographical regions. Balance ambition with practicality. Ensure that any expansion doesn't stretch your resources too thin or compromise the high standards of service that have contributed to your current success. Automate and streamline operations to build efficiency James Clear says in his book Atomic Habits, "You don't rise to the level of your goals, you fall to the level of your systems." In some ways, setting goals is secondary to ensuring you have the right processes and procedures in place. Mark Cunningham shares that he has a KPI to achieve 6 percent quarter-over-quarter net income growth. It's not about setting new goals for a number of new doors each year; it's about focusing every quarter on that consistency. If you aren't confident in your processes yet, that should be an area to focus on when you are goal-setting. For example: Identify areas where manual processes are slowing down operations. This could be anything from rent collection and lease renewals to maintenance requests and property inspections. Or, look into streamlining communication channels. Efficient communication tools not only facilitate better interaction among team members but also improve the way you engage with residents and investors. Data management and reporting can also be significantly enhanced through automation. Think about who you want in the room with you Who are the most strategic thinkers in your company? What personalities will be at the table? Set the rules of engagement for the meeting to help your team be successful when you are actually setting goals. You should also decide your approach: Do you want to be deeply collaborative and get everyone's opinions or if you want to hear from your team and then make the executive decisions on your own. (Our recommendation!) Goal-setting isn't a time to give everyone an equal voice. Know your "who" and make sure they're the ones in the room. Ask: What should we stop doing? For you as the leader of your company, ask, "What should I stop doing and delegate away?" But, just as importantly, you should also be asking a broader question: "What does my company need to stop focusing on?" This may be about refocusing your niche, the types of properties you want to handle, the clients you want to focus on, etc. What are the things you're doing that don't qualify as "absolutely killing it." It might be time to cut those out. If you're contemplating stopping, you probably should. Follow the opportunity Another way of saying this is to pay attention to the market. For example, five years ago, focusing on accidental owners would have been a bad strategy because the market was being flooded with investors. But, going into 2024, the market has changed. Now accidental landlords are the majority of new opportunities. Homeowners are hesitant to sell because of high interest rates and have found themselves needing property management for a property they hadn't intend to keep. In short, be ready to pivot to follow the biggest market opportunities. Get your KPIs organized before you set goals It becomes a very expensive goal-setting meeting if you don't have all your metrics and year-in-review numbers prepared beforehand. Have your SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) ready, as well. Review all of your numbers before you sit down to set your next year's goals. It's critical to measure against last year's goals, see where you succeeded, where you hit below the mark, and how that might affect your coming year. Review your financials, dashboards, KPIs, etc., before setting goals. This could include anything from average management fee, to number of google reviews, open work orders, average rental rate, profit margin, number of employees, etc. This pre-review will help you assess where you actually are and where you want to go. Are you ready to take bigger risks? Do you need to double-down on some goals from last year? Your team should come to a goal-setting meeting prepared with all of these numbers ahead of time so you don't waste time. Be specific Your goals should have specificity or they set you up for failure. Get really clear on what is possible and what you really want to accomplish. Be clear and concise about your goals and what would constitute success. That may mean setting different levels that you target: things that must be accomplished, things that are a stretch, etc. If anyone on your team could read one of their goals and ask, "What does that mean?" you need to keep digging into more specificity. Example of property management goals Here are some examples of smart goals to set for a property management company. For your company, you should find ways to make these extremely specific and time-bound in a way that make sense for your team, your niche, and your focus. Our examples are more general so they apply to most SFR property managers who are in our audience. But remember that these can be made more specific for your own business. 1. Grow property portfolios Increasing your portfolio signifies not just an increase in business scale but also an enhancement of market presence and revenue potential. To achieve this, focus on networking with property investors, leveraging marketing strategies to attract new clients, and providing exceptional service to encourage word-of-mouth referrals. It’s also essential to identify emerging markets or areas with high rental demand. Careful market analysis and strategic partnerships can be instrumental in uncovering opportunities for portfolio growth, ensuring that each new addition aligns with your company’s strengths and long-term vision. 2. Increase resident satisfaction KPIs Great property management success is all about improving resident experience and satisfaction. Focus on understanding and addressing the needs and concerns of your residents. Implement regular feedback mechanisms like surveys to gather insights into their living experience. Prioritize swift and effective responses to maintenance requests, and explore ways to add valuable services that residents want, like those offered in a Resident Benefits Package. Training your staff in customer service excellence can also play a significant role. 3. Improve ROI To enhance ROI, focus on optimizing rental rates without compromising occupancy rates. Conduct market research to ensure your pricing is competitive yet profitable. Explore ways to reduce operational costs, such as negotiating better deals with vendors, implementing energy-saving measures in properties, or implementing new services that can increase your ancillary revenue. Regularly reviewing financial performance and identifying areas for cost savings or revenue enhancement can lead to significant improvements in your overall ROI. 4. Increase occupancy rates It's just math: Higher occupancy directly correlates to more stable revenue streams. To achieve this, focus on making your properties more attractive to potential tenants. This can involve the obvious like ensuring your properties are well maintained. But it also means providing services that residents are excited to pay for and stay for. Boosting occupancy rates and increasing retention are two major benefits of a resident benefits package. Understanding the needs and preferences of your target market is crucial. Tailor your services and communication to meet these needs, thereby making your properties more appealing. 5. Improve maintenance quality and speed Implementing a streamlined process and/or software for receiving and responding to maintenance requests can significantly reduce response times. Consider adopting technology solutions like maintenance management software to track, prioritize, and dispatch maintenance tasks promptly. Regularly sourcing feedback from residents post-maintenance can also help in continually assessing and improving the quality of your services. High-quality, quick maintenance responses not only keep residents happy but also contribute to the long-term upkeep of your property. 6. Enhance digital marketing efforts A strong online presence can significantly increase your property management company's visibility and appeal. Focus on building a user-friendly website, optimizing it for search engines (SEO) to improve your ranking in search results. Use social media platforms to engage with your audience, showcase properties, and share valuable content. Consider leveraging email marketing to keep clients and residents informed and engaged. Additionally, exploring online advertising options such as Google Ads or social media ads can help target potential clients more effectively. 7. Improve client satisfaction KPIs Enhancing the satisfaction levels of your clients – the property owners – is as crucial as focusing on tenant happiness. To improve client satisfaction KPIs, start with transparent and regular communication. Keep your clients updated with comprehensive reports on their property's status, including occupancy rates, financial performance, and any maintenance issues. Implement client feedback mechanisms to understand their expectations and areas of concern. Tailor your services to meet these specific needs, whether it’s providing more detailed financial analysis, offering advice on property upgrades, or improving tenant screening processes. Demonstrating proactive problem-solving and value addition can significantly boost your clients' trust and satisfaction. Remember, a satisfied client is more likely to retain your services and refer you to others, enhancing your business growth. 8. Adopt automation Property management automation can streamline various aspects of your operations, from tenant screening and lease management to rent collection and maintenance scheduling. Investing in property management software can significantly reduce manual tasks, minimize errors, and provide real-time data analysis. This not only frees up time for your team to focus on more complex tasks but also improves the overall tenant and client experience. Automated communication tools can keep tenants and property owners updated, while automated reporting can provide insightful analytics for better decision-making. Embracing automation is about staying ahead in a competitive market and offering a more responsive, efficient service. 9. Increase convenience Convenience has become one of the most significant deciding factors for clients and residents. Start by evaluating your current processes from their perspective – how easy is it to pay rent, report maintenance issues, or get updates about their property? Implementing online platforms for rent payments and maintenance requests can greatly enhance convenience for tenants. For property owners, providing easy access to property performance reports and financial statements through a client portal can make a significant difference. Additionally, consider adopting mobile solutions that allow both tenants and owners to access services and information on-the-go. The goal is to make every interaction as seamless and hassle-free as possible. A little twist? Implementing a Resident Benefits Package can make life more convenient for them and for your team. We're all about making things easier. You can learn more about how we do it on our benefits page. 10. Reduce rent arrears To achieve this, start by implementing proactive rent collection strategies. Set up automated reminders for rent payments and offer multiple, convenient payment options to make the process as easy as possible for residents. Implementing a strict but fair rent collection policy can also help in minimizing delays. Educating residents about the importance of timely rent payments and the potential consequences of falling behind can foster a sense of responsibility. In cases where residents are consistently late, consider personalized communication to understand their situation and, if possible, work out a payment plan. A great strategy to hit this goal is to increase incentives for on-time payments. Credit reporting is a great way to incentivize on-time monthly rent, as are resident rewards. The importance of goal setting in property management Setting clear and strategic goals is essential for steering your company towards success and growth. Goals act as a roadmap, guiding your decisions and actions, ensuring that every effort is aligned with your broader vision. Effective goal setting in property management also allows for measurable progress. It enables property managers to track performance against specific benchmarks, making it easier to identify areas that need improvement or adjustment. This process of continual assessment and adaptation is key in an industry that is constantly influenced by market trends, regulatory changes, and evolving tenant expectations. Moreover, well-defined goals can motivate and unite your team. They provide a sense of direction and purpose, fostering a proactive work culture where every team member understands their role in achieving the company's objectives. This collective effort not only drives the company forward but also contributes to a more rewarding and engaging work environment. In essence, goal setting is not just about envisioning a successful future for your property management business; it's about creating a structured approach to make that vision a reality. It's a vital tool for navigating the complexities of the industry and securing a competitive edge in the market.

December 2, 2024

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11 Best Property Maintenance Software

In the property management world, tech solutions are abundant. There are so many different players on the market, and sometimes, that wealth can make it tough to navigate. When it comes to property maintenance software, single-family property managers have to first identify how they approach maintenance and, second, what tech solution will best support their team, workflows, and operational structure. It’s a daunting task! So, today, we’re going to look at some of the best approaches you can take and the best software available to you for property maintenance. Property maintenance software solutions come in two basic categories: Platform Solutions: Property management operations platforms or accounting software that include maintenance support, among other full-service property management solutions. Dedicated Point Solutions: Property management software designed to tackle one specific problem – in this case, maintenance. We’ll explore solutions that fit into both of these categories and how to weigh the pros and cons of each. Related: Best Single Family Property Management Software 1. SecondNature Of course… we had to mention ourselves. (Our house, our rules!) While Second Nature isn’t necessarily a property maintenance software, it is a leading resident experience property management solution. We reduce maintenance needs through preventive maintenance strategies and take work off the property manager’s plate. For instance, our filter replacement service ensures that residents get convenient service, lower energy costs, and higher air quality. The result is that property managers and investors see a reduction in HVAC maintenance requests and costs. Other maintenance features included in our solution include on-demand pest control and utility setup. 2. Property Meld Property Meld is a leader in the small to medium-sized property management business space. It’s a maintenance point solution to optimize work order management, response time tracking, vendor and resident communication, scheduling, and analytics. Its built-in “Owner Hub” helps provide the right amount of transparency to your clients. Perhaps the best feature is the Insights Tool, which helps you track metrics like the median speed of repair, average resident satisfaction, vendor health score, total spend per unit, and more. Pros: The user interface is intuitive for PMs and residents Opening repair tickets take just minutes Tracking repairs and resident satisfaction is easy and transparent Powerful analytics help you see your success at a glance Cons: If you’re looking for a full-service operations platform, Meld won’t be the solution for you. 3. Rentvine Rentvine is a full-service property management platform that focuses on communication support between PMCs, residents, and clients. The platform streamlines application and tenant screening, inventory management, accounting with a manager’s ledger and client money tracked separately, marketing, leasing, and – of course – maintenance. The app tracks all your work orders from start to finish and supports communication between residents, property managers, and vendors throughout. Pros: Easy to use with excellent customer support Owner and tenant portals work seamlessly Excellent accounting process Cons: Has fewer features than some competitors but is continuously improving 4. Lula Lula is another dedicated point solution focused on property maintenance technology. They leverage a network of vetted contractors to make finding the best technicians easy. Lula’s team becomes an outsourced extension of your property management company, troubleshooting, coordinating, and managing maintenance tasks. They operate in over 30 markets in the US and boast results like 80% one-trip resolutions and a net promoter score of 80. Pros: They do the work to vet and provide the vendors You can bring your own vendors in if you want to Integrates with any software Customizable plans for self-service or full-service Cons: May not yet be available in your market Only focuses on maintenance 5. Buildium Buildium is a popular all-in-one solutions platform and property accounting software with excellent management features. The web-based solution and app provide support in accounting and invoicing, communications, leasing, and maintenance activities. Their portals provide tenant support, maintenance management, and templates to make every part of property management easier. Pros: A near-complete solution for property management Excellent tenant and owner portals and communication hubs Analytics and tracking to streamline operations and results A 14-day trial helps you evaluate if it’s a fit Customizable packages Cons: Lack of transparency for owners Expensive if all you need is a maintenance point solution rather than a full platform. 6. Mezo Mezo is an AI-driven, cloud-based property maintenance management software. The aim of the app is to take work off your plate by automating maintenance ticket responses, resolutions, and insights. Mezo takes requests directly from residents and uses conversational AI to ask questions in real-time, identify problems, and diagnose the issue. It will support residents in resolving the issue on their own or integrate with your management system to get work orders quickly sent. Pros: Residents can get help immediately when they have issues and potentially resolve themselves with Mezo’s chatbot support Technicians arrive with Mezo’s analysis and diagnosis, allowing them to come prepared and resolve issues quicker Integrates with most PMS options Cons: Doesn’t integrate with all other PM tech solutions As a newer technology, still has some bugs and gaps 7. Lessen Lessen, formerly SMS Assist, is an enterprise-level solution providing tech-powered renovations and maintenance at scale. It’s an end-to-end platform for maintenance operations with a vetted vendor network and provides everything you need for maintenance or turning projects. PMs simply use the app to request projects, deploy Lessen network pros, track progress and checklists, check for quality control remotely, and process payments – all in one slick tech solution. Pros: Excellent, seamless tech that’s easy to use and deploy A fully vetted vendor network takes that work off your plate An established brand that has worked out the “kinks” in service Cons: More ideal for more enterprise companies who need scale (rather than smaller SFR PMs) 8. AppFolio AppFolio is a full-service rental property management platform solution that is very popular with single-family property management companies. The web-based app streamlines and automates every stage of real estate management, including management, training, marketing and leasing, maintenance, accounting, reporting, and communications. For maintenance, AppFolio includes workflow automation, work order management tools, online maintenance requests, mobile inspections, and more. Pros: Easy-to-use technology with great UX Fully mobile and automated Customizable dashboards and advanced reporting Cons: An expensive platform if all you need is a maintenance point solution Customer service is not always available for maintenance line 9. DoorLoop DoorLoop is another full-service property management software that provides all the features a property manager needs to manage their portfolio. You can handle accounting, maintenance, listings, marketing, client success, and more, all from the app. For property maintenance, their software helps manage work orders, handle vendor payments, and track the process from start to finish. Pros: Intuitive, streamlined UX that’s user-friendly Great customer service Excellent integrations Cons: Ideal for landlords and smaller property management companies Expensive if all you need is a maintenance point solution rather than a full platform Some functionalities are still being developed 10. FTMaintenance FTMaintenance is a computerized maintenance management system (CMMS) point solution platform designed for maintenance managers, executives, and technicians. While it’s not specifically designed for property management, the software streamlines work order management, vendor payments, tracking, and more. For some PMs, this could be the added solution they need to focus simply on complex maintenance jobs. Pros: Robust work order tracking Excellent mobile app for vendors and maintenance managers Analytics and organization Cons: Not designed specifically for residential property managers, focused more on commercial properties Complex if you are not tech-savvy 11. Latchel Latchel is a property maintenance point solution that helps automate maintenance communication, scheduling, work orders, etc. Your residents message the Latchel team directly on the Latchel platform and get an immediate response to begin troubleshooting the issue. If the problem requires a maintenance visit, the Latchel team will deploy that and follow up with the resident. Pros: Fast response times Easy to use for maintenance communication Cons: Many reviews say the issues didn't get fixed correctly App is great for communication but sometimes requires the PM to step in and manage Key Features of the Best Property Maintenance Software When choosing property maintenance software, consider the key features below to make sure you’re selecting the most efficient and effective solution for you. Tenant maintenance requests The software should allow tenants to easily submit maintenance requests through a user-friendly portal or mobile app. This feature ensures that all maintenance issues are reported promptly and tracked efficiently. Tenant communication Effective communication with tenants is crucial for maintaining good relationships and ensuring that any issues that come up are resolved quickly. Look for software that offers built-in messaging systems, automated notifications, and communication logs. Vendor management and payments Managing vendors and processing payments can be time-consuming. The best property maintenance software should streamline vendor management by including vetting, scheduling, and paying contractors. This helps ensure that maintenance tasks are completed by reliable professionals in a timely manner. Work order management and history A robust work order management system is essential for tracking the progress of maintenance tasks. The software should allow you to create, assign, and monitor work orders, as well as maintain a detailed history of all maintenance activities. This is particularly helpful for identifying recurring issues and planning preventive maintenance. Mobile app and cloud features With the increasing reliance on mobile devices, having an iOS and Android mobile app for property maintenance software is a must. The app should offer the same functionality as the web-based platform, allowing property managers to manage tasks on the go. Cloud-based features ensure that all data is accessible from anywhere, providing flexibility and real-time updates. Key Benefits of Property Maintenance Software Property maintenance software offers several advantages that streamline day-to-day operations and enhance efficiency. Most notably, it helps simplify communication. A user-friendly platform helps tenants, property managers, and vendors stay connected. Clear communication reduces misunderstandings, speeds up response times, and keeps everyone updated on the latest information. Other benefits include: Improved accountability and transparency: Maintenance software logs every task, from request submissions to work order completions, making it easy to track the progress of maintenance requests. This visibility assures that nothing falls through the cracks, which helps foster trust and accountability. Time savings for routine tasks: Features such as work order assignments, vendor payments, and updates minimize the need for interventions and constant follow-ups, freeing up time for property managers to focus on more value-added tasks. Improved resident satisfaction: Prompt responses to maintenance requests are key to resident satisfaction. When residents can easily report any new issue and track its progress, they feel more valued, which helps improve retention rates. Better planning and cost management: With the ability to track recurring issues and repairs using maintenance software, property managers can plan preventive actions that save time and money in the long run. How We Selected Best Property Management Maintenance Software Our team has extensive experience in both property management and technology, allowing us to accurately assess how any given software aligns with the needs of property managers. Our SMEs have taken a deep dive to evaluate each solution based on practical usability, reliability, and specific features that benefit scattered site and single-family property management operations. By focusing on functional capabilities as well as user feedback, we’ve curated a list that genuinely enhances efficiency and simplifies maintenance operations. The bottom line: This isn’t just a random list. Each recommendation we’ve discussed has been reviewed for confirmation by our team and SMEs so that it meets high industry standards.

December 2, 2024

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Resident Retention: Ideas, Tips, and Insights from Property Management Pros

Resident retention ideas help reduce turnover in leased properties, a critical key performance indicator (KPI) every property manager pays attention to. But the property managers we’ve consulted have told us something interesting. Merely rolling out the traditional “resident retention” playbook no longer cuts it..Why? These legacy strategies are too reactive and far too basic. They were created to “save” a resident in the last few months of their lease. Instead, in today’s world, modern property managers need to be focused on proactively delighting residents the second they sign. If they do this, then high resident retention rates will follow. Here are some of the best, forward-thinking trends we’ve seen for resident retention in the property management industry. Related: State of Resident Experience Study Meet the expert we partnered with to create this article: Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate Capital. Melissa is the licensed real estate broker for JWB. She plays an integral role in the organization and her efforts have led JWB to manage over 4,900 single-family homes in Jacksonville, Florida. JWB is now recognized as the largest local rental management company in northeast Florida. What is resident retention, and why is it important? Resident retention is a key part of achieving a Triple Win in property management, whether it’s in single-family (our focus) or multifamily. In transactional terms, the ultimate goal of a resident retention strategy is to increase lease renewal and reduce resident turnover, which results in lower costs and less work for property management teams. However, a Triple Win mindset levels this up by asking, “How can we create experiences so good that residents never want to leave?” Resident satisfaction, in turn, maximizes the investor’s ROI and boosts the property manager’s success. A win for residents is a win for investors is a win for property managers. This mindset moves from approaching property management as a list of menial tasks into a more generative and entrepreneurial approach. You’re in the driver’s seat as the property manager, and you can create programs and solutions that residents will pay and stay for. Now, you might be wondering why property managers should pay attention to resident retention rates. Here’s what Melissa has to say about that: Melissa: “Resident retention is a direct reflection of your customer experience. If people enjoy working with you, they'll stay. If they don't, they won't. Due to rising costs for investor clients, rent rates are climbing to keep up with those costs – which can be a big objection to overcome with residents. Swallowing the pill of a $150-$200 increase in rent can be tough for a resident on a fixed income. That makes their experience with us even more important. If they don't enjoy the experience, they most certainly won't agree to that level of rent increase.” What residents are saying about lease renewing and retention? In a recent survey by Buildium, only 32% of single-family rental (SFR) residents said they were certain they’d renew their lease this year, and an additional 36% were on the fence. This means that more residents have a desire to move than we’ve seen historically. Why is that? A couple reasons… 22% said they planned to move to a rental with more appealing amenities or benefits. 13% said they planned to move because they weren’t happy with the experience at their current rental. That’s a huge chunk of residents whose main reason to leave is a lack of benefits they want or need. What is a good resident retention rate in property management? Calculating resident retention rates and factors that can affect this rate can be challenging, as well as what’s considered a good average retention rate. Melissa sheds some light on this: Melissa: “We look at leases ending as an opportunity, and our resident retention is how many of those leases ending in a calendar year we convert to extend their lease term. Executed / Opportunities = Renewal Rate. A good average retention rate is anything 70% or better. That number has been our benchmark for success for 17 years of business. Factors that impact retention include how much owners are involved in setting rent rates, the housing market, the rental market, demand, experience, etc. We haven’t seen retention rates vary significantly by location, such as states vs. cities vs. rural areas.” Property managers share their best resident retention strategies The Buildium survey findings align with what many property managers are telling us, too. In fact, professional PMs tell us that a Resident Benefits Package is a powerful way to retain residents over the long term. RBPs can help with resident satisfaction and resident retention rates. After all, a proactive, differentiating approach to resident retention means building experiences that people will pay and stay for. Melissa: “Residents who stay longer-term tend to make on-time payments more often, take better care of the home, and reduce vacancy costs/leasing burdens. These benefits lead to better rent collection and increased management fee collection, happier clients with lower turn costs, and a lower market-to-move-in or days-on-market metric for leasing because their inventory continues to be reasonable and controlled.” In multifamily property management, resident retention strategies often center around resident events and building a sense of community. They may try things like holiday parties, happy hours, movie nights, and other get-togethers. But in single-family property management, where your properties are likely very different and spread across a larger region, the strategies aren't always as straightforward. Here are the top strategies that professional PMs are talking about right now. These help with bringing in new residents and with retaining good residents. Build easy communication with residents Relationship building is an important part of resident retention, and the foundation of any good relationship is, as any dating advice will tell you, communication. The rise of digital apps, online portals, messaging services, and social media platforms has made it easier than ever to communicate. Studies show that text messaging is on the rise, and most single-family rental (SFR) residents prefer text to other communication channels. Here’s how one study found the breakdown of where residents are communicating the most. 49% are using text 43% are using email 41% are using a phone PMs also know that expeditiousness is key. If residents are attempting to contact you, they likely have an issue that needs resolution asap. That’s why strategic PMs leverage technology and services that are all about speed.. More PMCs are incorporating solutions like texting, ticketing/inbox, offshore or outsourced staffing, and automation to remain quick-to-reply. Another great communication channel is sending surveys to current residents on a quarterly basis. Professional PMs ask what could be improved and use the data collected as a source for additional resident retention ideas. At Second Nature, we allow residents to survey and give feedback in their rewards app, and even incentivize it. When you are proactively seeking feedback, you can more easily drive positive social reviews and reputation management. Invest resources in property maintenance Anyone can tell you that property maintenance management is critical to a positive resident experience. But sometimes newer property managers only know how to take a reactive approach. They might do an annual inspection or respond to complaints. But they may not be proactively developing strategies to improve the property for themselves and their residents. In contrast, seasoned property management companies approach maintenance with a benefits-focused mindset. Instead of reacting to property problems, enterprising PMs tend to ask, “What habits can I encourage in residents to help keep the property in tip-top shape and therefore avoid maintenance requests altogether?” First, by creating care and value, PMs encourage residents to care for and value the property. But beyond that, PMs can implement strategies that make those behaviors easy. For example, a Resident Benefits Package can include air filter subscriptionsand pest control services – all of which help support residents in maintaining and nurturing the property. After all, it’s easy to change your air filters on time when they show up on your doorstep. We’ve seen a trend of property managers developing proactive strategies that help residents take care of the property. It pays off in dividends. Provide a simple, rewarding payment portal Speaking of paying off, most property management companies now offer online payments to residents. It’s true: 73% of residents say they prefer a digital method for payment. That’s the first step. But PMs have told us that many of those legacy payment systems can be difficult to use or don’t actively support residents in making timely payments. The next step is to ensure you’ve set residents up for success in making on-time payments. Some PMs set up rewards systems or incentives for on-time payments. These programs can help reduce the amount of time you spend following up on rent. For example, Second Nature’s Resident Benefits Package has a built-in credit-building service that reports on-time rent payments to all three major credit reporting bureaus: Equifax, Experian, and TransUnion. We’ve helped residents increase their scores by as much as 40+ points. You can bet that if residents have the option to boost their credit score, they’re more motivated to pay on time. Focus on resident security Creating safe spaces to live in helps protect both the residents and the properties that you manage. Making it clear that safety is a priority is also an effective way to build a reputation as a property management company that cares. Property managers can emphasize the safety of single-family homes through standard practices like ensuring rental properties have flood lights, working smoke detectors, carbon monoxide alarms, and solid locks changed after each move-out or before move-in. Surveys can also help assess how safe residents feel in their homes and if your company can do anything to improve security. Regular inspections and good communication go a long way to maintaining excellent security. For a Triple Win, property management companies can also provide an Identity Protection benefit . The odds of falling victim to online crime is 1-in-4. A $1M coverage provides real protection and peace of mind for residents while they get their personal data restored. Adopt new technology Technology brings ease and automation to every element of property management – and every individual involved. In fact, 79% of SFR residents prefer to complete at least some rental processes online. Technology helps you deliver competitive features without breaking the bank or slowing you down. And it gives ease and convenience to residents, too. These days, property managers have digital solutions for basically every part of their job, including: Online payments Maintenance request tracking Online rental listings & applications Text and email communication Renters insurance programs Resident screening Document signing, sharing, and storage Using SMS messaging platforms, online rent payment systems, and resident portals adds more efficiency for property managers while offering convenience to residents. The ability to pay rent, make a property maintenance request, or register a new pet or vehicle online creates a seamless experience that the resident can manage independently on their own time while also creating an organized system for leasing agents to respond to those requests. No more scribbling a repair request on a sticky note—now you can automate everything. It’s the best option for everyone involved. Be proactive The best PMs are always aggressive. They visit each property at least once each year, not just when something goes wrong. They have automated systems in place to alert them when new needs pop up. They design or invest in benefits packages and perks to serve their residents and stand out from the crowd. In “The 7 Habits of Highly Effective People,” Dr. Stephen Covey’s second habit is, “Begin with the end in mind.” Professional property managers who are ready for the future proactively identify opportunities to improve the resident experience. Ask things like: “What can I do this coming year to improve the living experience for my residents?” Maybe that’s new programs, new roles on the team, new technology, etc. Whatever creates value for residents is worth an investment because the payoff lasts. Melissa: “The best advice I can give is this: Communication and expectations are KEY. Start to work for the renewal on Day 1 of the original lease term, and consider how you can increase your communications. Be transparent. Be open to feedback. See retention as a bottom-line revenue driver. See retention as a benchmark for how residents are experiencing your company. Set a budget for creative incentives, and then encourage your team to USE THAT MONEY UP! The more "dopamine hits" you can give for those feel-good connection moments, the better! I think creativity is understated in property management. We focus so much on difficult interactions. How can we increase the positive ones? Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Reach out early and often! We start reaching out to residents six months before their lease expires. Make the reason for that initial touch point to "check in" – because it’s about relationships! People like to feel valued. Get creative with incentives for long-term leases! We offer all kinds of crazy resident incentives. We even bought a resident their very own bounce house when the client's homeowners insurance made the resident remove their large trampoline. Identify the real roadblock or concern, and do everything in your power to listen and solve it. Listen to any real complaints. If there are maintenance issues, solve them. If there are communication concerns, address them. Residents want to know that when they voice a real concern, you hear them and work hard to partner with them to fix it!” Automate what you can as you grow As property management companies grow, it becomes harder to dedicate individual time to each one of your residents. Property managers must figure out a way to maintain this resident expectation though. One effective strategy is to utilize technology to streamline operations and foster stronger relationships with residents. Melissa: “Automation is key as you scale your business. We manage around 5,000 doors, and without the ability to send email and text blasts, etc., we'd struggle to achieve the high touchpoint mentality we have. I think the larger your business, the more important these tools become. You can only grow at the pace at which your business can efficiently scale without having to continually add more staff. Text Magic is a low-cost solution for texting, and Callfire is a great option for mass-dialing and automated phone messaging. Any PM software has great reporting capability to build out mail merge lists. It doesn't have to be expensive to make it happen!” For all of the above, invest in a Resident Benefits Package As we’ve seen, resident benefits packages are the best way to build these experiences and perks that residents want. Benefits packages are bundled services that help drive revenue for your investor and drive satisfaction for your residents. At Second Nature, we offer services in a custom resident benefits package (RBP) designed by you and managed by us. We developed and designed each pillar of the RBP based on pain points that property managers shared with us – turning those pain points into benefits. These services include supports like: Internet service: Your residents are probably already paying for internet. By offering Group Rate Internet, you can give them a benefit they already pay for, at a cheaper price than they can get themselves. Integrating internet service right in their lease eliminates setup fees, equipment charges, and other unexpected costs, and simplifies their lives. Routine air filter delivery: This is a cornerstone of our benefits package because one of the most common causes of HVAC maintenance requests is a failure to change air filters on time. PMs who have implemented air filter delivery have seen a total reduction of 38% in HVAC requests. $1 million identity theft protection: Our benefits package includes identity fraud alerts and protection. Your residents can rest easy knowing every adult on the lease has coverage. Credit building: As we’ve mentioned, we report on-time payments to the credit bureaus so your residents can automatically boost their credit scores just by paying rent on time. Rental rewards: People love rewards! We include the cost of rental rewards in our total package, so PMs don’t pay more. We include perks like gift cards to local businesses, restaurant cards, cash rewards, and more. Move-in concierge: The first thing most residents do on move-in is make several calls to set up utilities. With our move-in concierge service, residents turn four phone calls into one. They don’t have to contact utility companies; we do it for them and identify the best rates. Renters Insurance Program: Our benefits package includes price-competitive insurance options to apply to all residents – at one group rate. On-demand pest control: Pests are one of the most common resident complaints, and a huge financial burden for property owners. On-demand pest services allow residents to connect with treatment companies directly when the need arises, while avoiding costly preventative treatments that may not even be effective. A benefits package puts PMs ahead of the game, proactively building the environment residents pay and stay for. How 1,800+ professional management companies create Triple Win experiences Resident retention is far more than a transactional arrangement. We know that a high percentage of residents leave when they aren’t getting benefits they could get elsewhere. Forward-thinking property managers take a proactive approach to resident retention by developing experiences that residents are looking for. By creating a fantastic resident experience through offering benefits and support, property managers drive a triple win for residents, investors, and themselves. Higher retention can drive referrals to prospective residents and clients, too. Offering a Resident Benefits Package that adds value to the leasing and living experience of your residents is as easy as Second Nature.

December 1, 2024

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