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9 Ways to Improve Your Resident Experience

Resident experience is the sum total of interactions and experiences a resident has with their property manager and the rental property itself – from the initial lease signing to the eventual move-out and all the day-to-day living moments in between. It encompasses everything from the quality of services provided, like timely maintenance and communication, to the overall livability and enjoyment of the property. In essence, it's how a resident perceives their rental journey in its entirety. Excellent resident experience management is the mark of a top-tier property management company. It boosts resident retention, satisfaction, and outcomes. In this article, we delve into nine actionable ways to enhance the resident experience in your single-family rental properties, fostering stronger relationships and, ultimately, achieving greater success in property management. Read the full report! If you haven’t already heard, we recently published our first-ever State of Resident Experience Report, which explores resident experience management: the pivotal touchpoints between a resident and a property manager. The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. 1. A Seamless Move-In Experience Ah, the move-in process – the start of a beautiful friendship between the resident and the property manager. It's a bit like a first date – you're setting impressions that could make or break the relationship. A seamless move-in experience is your chance to roll out the red carpet for your new residents, showing them they've made the right choice (and have definitely swiped right on the best property around). And guess what? A resident who's had a great move-in experience is a happier one. Happier residents stay longer, pay on time, take care of the property, and make positive recommendations. Resident experience examples: How to build a perfect resident move-in experience Here's how to ensure your move-in experience hits all the right notes. Clear Communication: Provide detailed information about the new home and move-in process, including key collection, utility setup, and property rules. Who's handling utilities? Where's the best pizza joint nearby? Share all the important details. Welcome Packet: Roll out the resident red carpet with a welcome packet. Not only does it have all the must-know info, but it also says, "Hey, we're glad you're here." Include essential information such as garbage collection days, rules, important contact numbers, and a neighborhood guide. Property Readiness: Nothing dampens spirits like a flickering light on the first day. Ensure the property is thoroughly cleaned, all appliances are working, and any previous damages are repaired before the move-in date. Efficient Paperwork: Let's face it, nobody loves paperwork. Make it painless with easy online forms and digital sign-offs. Personal Touch: A little welcome gift can go a long way. It's like saying, "Welcome home, neighbor. We're going to rock this thing." Second Nature’s Resident Benefits Package includes a Move-in Concierge to ensure the process is seamless and personal. 2. Responsive Communication In the symphony of successful property management, responsive communication is your melody. It's the backbone of a harmonious resident experience, and when done right, it can elevate your property management status from “forgettable” to “virtuoso.” The sooner you respond to your resident’s queries or concerns, the more they'll feel valued. And a valued resident is a happier resident. Remember, good communication isn’t just about speed—it’s about clarity too. It's like being a great tour guide in the bustling city of property management—clear, informative, and always ready to help. Ways to improve communication with your residents Let's explore some best practices: Multiple Channels: Embrace the digital age! Offer various communication channels like emails, text messages, phone calls, and even a resident portal. Variety is the spice of life, right? Be Proactive: Don’t wait for your residents to reach out with issues. Regularly check in and ask if they need anything. Set Expectations: Be clear about your communication protocols. Let your residents know when and how they can reach you and when they can expect a response. No one likes to be left on read! Listen Actively: When your residents speak, lend them your ears! Show understanding and work collaboratively towards solutions. It's a two-way street, after all. Be Respectful: Always communicate with respect and professionalism. Treat your residents the way you’d want to be treated – it’s the golden rule, even in property management! 3. Better Maintenance Services with Quick Response Times Think of maintenance services as the superheroes of the property management world. When done right, they swoop in to save the day, ensuring minor issues don't escalate into supervillain-sized problems. Quick response times? That's your superhero's super speed. The quicker the response, the happier your resident, and the safer the day. How to improve maintenance services and response times Here's how to get your property management cape (sorry) flapping in the wind: 24/7 Maintenance Line: Offer a dedicated line for maintenance requests. To belabor our superhero analogy, it’s like having a bat signal for your tenants – they know help is just a call away. Online Reporting: Make it easy for tenants to report issues. An online system can keep things organized and ensures no request gets lost in the shuffle. Prompt Follow-up: Act swiftly on maintenance requests. Even if you can't fix the issue immediately, acknowledging the request and providing a timeline can ease the resident's mind. Regular Inspections: Regular property inspections can help you catch potential issues before they become major headaches. It's all about that ounce of prevention! Trusted Vendors: Work with reliable and professional vendors who provide quality work in a timely manner. They're your sidekicks in maintaining property harmony. 4. Resident Surveys and Active Feedback Gathering Resident surveys and feedback gathering are your property's annual check-up, a key health indicator for your relationship with residents. These invaluable tools allow you to take the pulse of resident satisfaction, uncover hidden issues, and celebrate what's working well. When residents see their feedback being valued and acted upon, it creates a sense of involvement and community, enhancing their overall living experience and driving resident retention. Importantly, active feedback gathering shows your residents that their voices matter. It instills a sense of ownership and care that can often lead to better property care and longer tenancies. How to turn resident feedback into a better resident experience Here are some ways to champion feedback in your property management: Regular Surveys: Don't just wait for the annual survey. Keep the feedback coming in regularly, like a monthly check-in or a quick poll after a service call. It's like catching up over a virtual cup of coffee – relaxed and informative. Feedback Boxes: Consider setting up a digital feedback box where residents can drop their thoughts, ideas, or concerns anonymously. Think of it as your modern suggestion box. Act on Feedback: Here's the real deal – taking action. Show your residents that their feedback isn't just being heard, it's being actioned. 5. Resident Rewards Resident Rewards are a huge factor in resident retention and satisfaction. Rewards make residents feel appreciated and have proven to incentivize habits like on-time payments and better care for the property. Perks like this can significantly boost resident satisfaction, increase lease renewals, and even stimulate referrals. It's a win-win all around! For multifamily and apartment community managers, that might look like community-focused programs. For single-family property managers, we’ve got some other tips. Second Nature’s Resident Benefits Package includes a robust resident rewards program. How to improve the resident experience with resident rewards Here's how you can sprinkle some rewarding magic into your resident experience: On-Time Rent Rewards: Create a system that rewards residents for consistently paying their rent on time. It could be a small discount or a gift card to a local coffee shop. Longevity Rewards: Celebrate lease renewals or long-term residents. A gift, a discount, or even a personalized note can make your residents feel valued for their loyalty. Referral Rewards: Turn your residents into ambassadors! Offer a discount or a bonus for any referral they make that signs a lease. Surprise Rewards: Keep the excitement alive with occasional surprise rewards. It could be as simple as a movie ticket or a voucher for a free car wash. 6. Incentive Programs Incentive programs are the next level of resident engagement that professional PMs offer. They can positively influence resident behavior, promote a sense of belonging, and even enhance your property's appeal to prospective residents. When residents feel that their good habits (like timely rent payments) are being recognized or they're being offered valuable services (like credit reporting or identity protection), it builds loyalty and satisfaction. It's like saying, "We're in this together, and we've got your back!" How incentive programs can boost the resident experience Here's how to serve up a great menu of incentives for your residents: Credit Reporting: Offer a program that reports timely rent payments to credit bureaus. It's a win-win: they pay their rent on time, and they build their credit! Identity Protection: In a world where digital safety is paramount, offering identity protection services can be a powerful incentive. It's like providing an invisible, protective bubble around your residents. Rent Discount for Referrals: Encourage residents to become your ambassadors. Offer a rent discount or a gift for successful referrals. It's like having your very own fan club. Early Payment Incentives: Reward residents who pay their rent well before the due date. It could be a small discount or a token gift, but it makes them feel appreciated. Rewards for Green Habits: Encourage residents to adopt environmentally friendly habits, like recycling or energy conservation, and offer incentives for their green efforts. This can really help in SFR when you don’t have the same level of control as PMs managing an apartment building. 7. Support Tools Support services work behind the scenes, often unnoticed, but they play a crucial role in streamlining the resident experience. From filter delivery subscriptions to online payments, these services add a layer of convenience and assurance for your residents. Integrating support services into your property management strategy can not only elevate resident satisfaction but also reduce your workload. It's like having a friendly assistant who's always ready to lend a hand, both to you and your residents. How to create support services that add convenience to your resident experience Here are a few ways you can amplify your resident experience through support services: Filter Delivery Subscription: Offering a filter delivery service for your residents ensures their HVAC system is always protected. It reduces your maintenance issues and costs and ensures they have a safe living environment. Second Nature’s filter delivery reduces resident and PM costs by hundreds of dollars a year. Online Rent Payment: Providing an easy-to-use online portal to process and automate rent payments and lease renewals adds a layer of convenience for you and your residents. Maintenance Request Portal: An online system for maintenance requests helps keep track of issues and ensures timely response. It's like having a 24/7 maintenance desk at their fingertips. Digital Notifications: Use email or SMS notifications to keep residents updated about important things like maintenance schedules, community events, or changes in property rules. Proptech solutions can help with digital support. Resident Portal: A comprehensive resident portal where tenants can access services, find information, and connect with management can significantly enhance the overall resident experience. 8. Concierge Services Concierge services are the above-and-beyond offerings that can truly set your property apart from the rest. This personalized attention can transform the often stressful processes into a smooth and enjoyable experience. How concierge services help with resident experience Here are some other examples of concierge services: Move-in Concierge: Who doesn’t want a personal assistant during the often chaotic time of moving? A move-in concierge helps with utility setup and pricing comparisons and provides local area information. Learn more about Second Nature’s Move-in Concierge in our Resident Benefits Package. Cleaning Services: Offering access to trusted cleaning services, whether for regular use or during the move-out process, can be a huge convenience. Maintenance Scheduling: A service to help residents schedule routine maintenance can keep their homes running smoothly without them having to worry about coordination. 9. Insurance While, as a property manager, you carry insurance for the physical property, it's equally important for your residents to have renter's insurance. Your coverage protects your owners' real estate investment. Renter’s insurance protects residents’ personal belongings and covers them for liability, and it's a small investment for significant protection. Plus, in case of a mishap, it can help the recovery process go much more smoothly. Resident experience examples: How to leverage a renter’s insurance program Here's how you can integrate insurance into your resident experience: Educate Residents: Make sure your residents understand the importance of renter's insurance, what it covers, and what it doesn't. This is critical information that every renter should know. Insurance Requirements in Lease: Include a clause about renter's insurance in your lease agreement. This helps to set the expectation right from the start. Annual Reminders: Send out annual reminders for policy renewals. It's a small step, but it ensures continuous protection for your residents. Renter’s Insurance Program: While most property managers require insurance, less than half of renters maintain coverage. Second Nature has developed a renter’s insurance program that has 100% compliance and leaves residents – and you – with the coverage they need. How SecondNature Improves Resident Experience Resident experience – those pivotal touchpoints between a resident and a property manager – can significantly shape the success of a single-family rental home. At Second Nature, we’ve built our entire company on the idea that resident experience can change the game in property management. Our Resident Benefits Package wraps up each of these strategies into an all-in-one resource for property management companies. It saves money for you and your residents and delivers the best in convenience and resident experience. Learn more about the Resident Benefits Package or read our State of Resident Experience Report.

Calendar icon July 18, 2023

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20 Top Experts Weigh In On Optimizing the Resident Experience

In today's ever-evolving property management landscape, the focus on resident experience has taken center stage. It's not just about the bricks and mortar anymore; it's about building meaningful experiences, fostering connections, and ensuring residents truly feel at home. And have you heard? We published a comprehensive report on just that: The 2023 State of Resident Experience in Single-Family Property Management. The report includes in-depth studies and impact data on the most innovative strategies in property management right now. You can download it for free – it’s on us! Download the Report In the meantime, we’ve curated the top 25 insights about resident experience from 20 experts in the property management industry. These pros have been there, done that, and seen it all. We’ve been fortunate enough to chat with them on podcasts, document detailed interviews, and have in-depth conversations across the country. Whether you're curious about the rise of resident benefits packages, seeking inspiration on innovative revenue streams, or want to learn more about automation and AI, read on to hear directly from the experts – or go directly to our in-depth, downloadable report. Why Focusing on Resident Experience is a Strategic Goal Centering your property management strategy on resident experience isn’t just a nice-to-have – it’s a strategic imperative that drives success and sets industry leaders apart. Here’s how… ‍ “Property Managers who are on the cutting edge realize that by focusing on the resident experience, they will earn better returns on investment for their investor clients.” -Gregg Cohen, Co-Founder of JWB Real Estate Companies ‍ “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. We use resident retention as a key benchmark for measuring our customer service. In our market, we renew 72% of our leases annually. A standard PM benchmark historically is that about a 70% renewal rate for residents is a huge success.” -Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate ‍ “As the operator of a business, how can I get from something transactional to something transformative – so that people are getting something from me that they aren’t getting from most other businesses.” -Jordan Muela, CEO of LeadSimple ‍‍‍ “We’ve really started to notice that the better experience we can make with the tenants, the more they want to come to us as opposed to our competitors. It's all about the experience. Think about Starbucks. It’s essentially the same cup of coffee as McDonald's. But it's the experience that Starbucks gives you. So we’ve held onto this idea that we want to provide the experience that residents gravitate to.” -Chenoa Stark, Property Manager at American Leasing and Management ‍ “When you're giving that great experience to your residents, you're also giving that great experience to your owners. They have less lost vacancy, they have more care and more respect given to their property, and that's going to protect their assets. That shift in the industry is already happening, and those that are able to make that pivot quickly are going to be able to level themselves up and really get ahead of the curve.” -Kelli Segretto, K Segretto Consulting ‍ “Happy residents stay longer, take better care of the home, and provide better long-term stability and return on investment for clients. They also spread the good word locally and refer more renters to you. And happy residents are usually nicer, leading to happier staff!” -Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate ‍‍ “When people come into my office and say this is the best experience I’ve ever had, I know we’ve done our job.” -Janet Sprissler, Broker/Owner, Rent 805 ‍‍ Changes in the Property Management Industry The evolution of the property management sector has been remarkable. Gone are the days of one-size-fits-all solutions and impersonal transactions. Today, as these insightful quotes highlight, the industry is transforming to meet the increasing demand for personalized, consumer-centric experiences that elevate convenience and satisfaction. ‍ “[W]e’re seeing a huge culture shift in the housing space. How do we provide ease? The Uber or Grubhub mentality of We want it now: How can you do that in the real estate space as well?” -Phil Vera, CEO of Paragon Property Management ‍‍ “I think ten years ago, property managers were only concerned with collecting rent and keeping tenants from doing damage to properties. It was a much more adversarial relationship than it is today. Today, the best PMs know that resident experience is vital to minimizing vacancy and creating a resident that strives to be a higher quality tenant.” -Jonathan Cook, Community Manager at APM Help ‍ “The younger generations we’re dealing with in property management, they want experiences and simplicity, and they’re willing to pay to have things taken care of for them.” -Eric Wetherington, VP of Strategic Initiatives, PURE Property Management ‍‍ “What I'm seeing from our residents – whether they're paying $3,000 a month in rent or $1,000 a month in rent – the number one thing that they look for is ease and convenience. They don't want complicated instructions. They just want simple, they want right now. They want contact-free, they don't want to talk to people. So everything we do from showings to move-in to the experience after they move in is all revolved around design for that expectation.” -DD Lee, PURE Property Management Why More Property Managers are Choosing a Resident Benefits Package (RBP) Professional property managers are increasingly adopting the multifaceted advantages of the Resident Benefits Package. The quotes below highlight why this holistic approach is rapidly becoming the gold standard in property management – emphasizing the RBP’s value for both residents and property owners alike. ‍ “A resident benefits package – you hear people call it the easy button. That’s because it is essentially all of these different services and all of these different, valuable add-ons for your residents that are done for you.” -Kelli Segretto, K Segretto Consulting ‍‍ “As RBP services have evolved to include more products and services – like credit building, identity theft, etc. – they are providing value that affects everyday people. I’ve found that, beyond helping us to stand out in our industry, an RBP means we're actually doing something good for the people that we interact with. It's not just about beating our competition, it's that we're actually providing value that they can really use – services that actually help them for their long-term goals.” -Chenoa Stark, American Leasing and Management ‍ “A resident benefits package alone can result in a 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.” -Daniel Craig, CEO of ProfitCoach ‍‍ Implementing an RBP Adopting a Resident Benefits Package might seem daunting, but as the insights below will reveal, it’s not as difficult as you might think. ‍ “The fear (that residents or owners will push back against change) is normal. No one ever wants to say, ‘Hey, you need to pay more money.’ I was the same. But I slowly introduced things like filter delivery, renter's insurance, and ancillary services. What I found was astonishing – nobody pushed back! Out of 300 residents at the time when we first started introducing this, maybe two or three asked, ‘Why why do I need this?’ And we simply explained to them, ‘This is going to make your life easier, and it's not going to cost much more than if you went to the store, spent all that time in the car, and bought it yourself. Plus, you might forget.’ It just made sense to them. Now, we sign residents up as they move in.” -DD Lee, PURE Property Management ‍ “Be ultra-transparent and get it done in the beginning, just saying, we're not hiding anything. This is what you're being enrolled in. This is what it is. I think that helped the adoption rate a little bit. And if people did call in with questions, we were happy to answer them and talk to them about it.” -Kyle Hendricks, VP of Hendricks Property Management ‍‍ Automation & AI in Property Management Leading experts emphasize the pivotal role of automation and artificial intelligence in reshaping the property management industry. Professional property managers are embracing these technologies not just to stay competitive but to elevate the overall resident experience and streamline operations. ‍ “People who are against automation say, ‘I don’t like automation because I lose that relationship with my clients.’ I would flip that and say: If I can automate eight of the ten tasks that need to be done, that means I have more time to build the relationships.” -Pete Neubig, CEO of VPM Solutions ‍ “Automation is the great equalizer. It allows us to compete with nationwide companies and to provide not only the same level of service but to be able to pivot and adapt much quicker than those larger companies can. If you're a smaller company, AI and Automation Tech is that equalizer that's going to allow you to shine just as well as these larger companies.” -Wolfgang Croskey, Founder & President of How’s My Rental ‍‍ “One of the things I want my clients to think about is that our tech is not just for our benefit. This is not just to make our lives easier and our jobs easier. It's to really be able to reposition our time so that we're focused on value creation.” -Rhianna Campbell, Property Management Consultant, Proper Planning LLC ‍ Innovative Revenue Streams & Ancillary Income By offering value-added services that residents genuinely need, property managers not only boost their profitability but also create a win-win situation where both parties benefit from added convenience and value. ‍ “Prop tech companies are making the mechanics of property management easy – rent collection, maintenance, screening, the day-to-day mechanics of property management. Thirty years ago, that’s what a property manager did. Now, though, when it comes to things like benefits packages, pet guarantees, and rent guarantees with security deposit alternatives, we can offer much more value.” -Todd Ortscheid, CEO of Revolution Rental Management ‍ “There are so many of these things – when you look through all of the different revenue-generating ideas – that are just good across the board for everybody. [The Triple Win] is where you should focus your efforts when you’re trying to bring in the most revenue and do the most good.” -Todd Ortscheid, CEO of Revolution Rental Management ‍‍ “When considering a service like pest control, our approach is, 'How can we take this off the property manager’s plate?’ We aim to create ancillary revenue for them, take an annoying task off their list, and enhance the resident experience.” -Landon Cooley, Co-Founder & CEO at Pest Share ‍ “Security deposits and tenant screening are two fascinating areas of real estate that tech companies are attempting to disrupt. Traditional security deposits are starting to become passé in some jurisdictions.” -Peter Lohmann, Co-founder & CEO of RL Property Management ‍ “I think the type of initiatives that we're having success with are those things that provide an enhanced lifestyle for our tenants or residents. And that's all often driven via surveys 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.” -Steve Pardon, CEO of JMAX Property Management ‍ Hiring for Single-Family Rental Property Management (vs. Multifamily) Looking to hire this year? Single-family rentals have their own unique set of challenges and nuances that set them apart from multifamily units. Here’s a great tip from Matthew Whitaker to close us out. ‍ “When you add multiple investors and then the logistics of single-family, it becomes a much more complicated business. If you’re going to pull from the multifamily industry, you’re going to have to make sure that you’re hiring some of the best and brightest from that industry because, again, dealing with 300 homes and 50 investors is way more complicated than a 300-unit apartment community all together with one investor.” -Matthew Whitaker, Founder & CEO at Evernest ‍ Ready to Learn More? Wrapping things up, it's clear: nailing the resident experience is the secret sauce to elevating property management services and driving value for residents, investors, and your property management company. If you want even deeper insights into driving resident retention and investor value, check out our State of Resident Experience Report. The report deep-dives with studies on the value and impact of innovative property management services and explores the changing shape of the property management industry.

Calendar icon October 10, 2023

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Why Pest Control is Important for Property Management

Welcome to a topic that may make your skin crawl, but it's a crucial one: pest control in property management. For property managers, providing a pest-free environment is more than just a courtesy; it's a responsibility. Why is pest control so important? It all comes back to the resident experience! Pests are not only a nuisance; they can contaminate food, ruin residents' belongings, spread diseases, and make your property unlivable. In this article, we’ll delve deep into the world of pests, discussing their impact on your property and the lives of your residents. We'll explore practical strategies to control these unwelcome visitors and delve into the benefits of a preventive approach to pest management. We’re doing it with the help of a pest control expert, Landon Cooley, the Co-Founder and CEO at Pest Share. By the end of our conversation, you'll see that effective pest control is less of a bugbear (get it, “bug”?) and more of a necessity in providing a safe, comfortable home for your residents. Let's get started, shall we? Meet the Expert: Landon Cooley, Co-Founder & CEO at Pest Share Cooley is a fourth-generation pest-control business owner and owns and operates a pest-control business in Idaho. In 2018, he started Pest Share with co-founders and business partners Justin and Tom Clements. Pest Share is a unique service targeted for single-family property management companies that streamlines pest control and takes the day-to-day work off PMCs plates. “Our focus is providing excellent resident experiences and minimizing cost and effort for our clients, the property managers,” Cooley says. We gathered Cooley’s insights and expertise to contribute to this article. To learn more, check out Jordan Muela’s podcast episode featuring Cooley, “Creating a Vision with Landon Cooley.” Pest Share is a part of Second Nature’s fully managed Resident Benefits Package (RBP). Why Pest Control is Important When we talk about property management, pest control isn't just an afterthought—it's a crucial component of providing a safe and comfortable living environment. Dealing with these “visitors” is important beyond just the ick factor. “The pest control industry only serves 15% of US residents, and yet 86% of US residents have an experience of pest infestations every year,” Cooley says. “So there’s a big gap.” Let's delve into some of the key reasons why pest control is so important. Pests Contaminate Food Many pests, such as cockroaches, ants, and rodents, are notorious for finding their way into food supplies. They can carry harmful bacteria and other pathogens, contaminating food and cooking surfaces. Mouse droppings, for example, can spread disease, in addition to just being…gross? This can potentially lead to foodborne illnesses amongst residents, causing unnecessary discomfort and potential health issues. Pests Destroy Property Pests like termites and carpenter ants can cause costly damage to the property structure, eating away at wood and compromising the integrity of the building. Other pests may gnaw through electrical wiring or insulation, leading to costly repairs. By maintaining consistent pest control measures, you can prevent such destruction and safeguard your property, making it a more secure and stable environment for your residents. Pests Destroy Resident’s Belongings Some common pests, like carpet beetles or silverfish, may seem small and harmless, but they can wreak havoc on a resident's personal belongings. These pests can destroy everything from clothing and books to upholstered furniture, causing financial stress and discomfort to your residents. Pests Spread Diseases Pests are known carriers of a variety of diseases and can be a public health risk. Rodents can spread hantavirus and salmonella, mosquitoes transmit West Nile virus and Zika virus, ticks carry Lyme disease, and fleas are known to carry several diseases or allergic reactions, to name a few. Roaches carry any number of bacteria and diseases. Keeping these pests at bay is critical to maintaining the health and well-being of your residents. Pests Make it Difficult to Live Beyond physical health risks, pests can create an uncomfortable, even distressing, living environment. The presence of pests can lead to anxiety and sleep disturbances, negatively affecting residents' quality of life. Pests like fleas and bedbugs cause physical discomfort if not outright health problems, and many pests like mites spread or trigger allergens. In short, effective pest control is essential to maintain the integrity of your investors’ property assets, the health of your residents, and your reputation as a caring and responsible property manager. How to Control Pests on Your Property Of course, understanding the problem only gets us halfway (if even!) to solving it. As property managers, the responsibility of dealing with pests falls squarely on your team’s shoulders. Great property management companies employ a strategic approach to integrated pest management, minimizing the possibility of pests – and dealing with them immediately when there is an issue. Here are some of the top property management pest control trips we’ve culled from the industry. Routine Inspections Regularly inspecting your property or hiring a pest control company to monitor them can help identify potential pest issues early on. This proactive approach allows you to treat minor problems before they escalate into major pest infestations, saving time, money, and stress in the long run. Immediate Action Taking immediate action at the first sign of a pest problem is crucial. Delays can allow the pest population to grow, making the issue more difficult and costly to handle. A quick response to reported issues shows your residents that their comfort and safety are a priority and can often prevent minor issues from escalating into serious infestations. Whether you call an exterminator or handle it in-house, a swift response is key. Tenant Education Educating tenants on proper food storage and waste disposal can drastically reduce the attractiveness of your property to pests. Regular communication about cleanliness and preventative measures empowers residents to contribute to a pest-free environment. Professional Pest Control Services Sometimes, professional intervention becomes necessary. Pest control services can effectively deal with large infestations, employing safe and targeted solutions. They can also provide expert advice on preventing future infestations. When hiring a pest control company, Cooley says, it’s important to understand what types of specializations they offer. “There are several different segments of the industry, and not all companies do everything,” he says. “Some do only residential insect control, or maybe rodent control. Some are very robust and specialize in all these areas. Every company is a little different.” Landscaping and Exterior Maintenance Maintaining the exterior of your properties is as crucial as looking after the interior. Regularly trim overgrown plants, manage water drainage effectively, and keep outdoor trash areas clean to deter pests. Seal Entry Points Prevent pests from entering by regularly checking for and sealing any potential entry points. This includes filling cracks, fixing broken screens, and covering crevices. Keeping your property in good repair helps make it less accessible to pests. Proper Waste Management Secure and timely waste disposal is key to pest prevention. Ensure that all trash bins are properly covered and regularly emptied to avoid attracting rodents, insects, and other pests. Each of these methods contributes to effective pest control, helping to create a comfortable, pest-free environment for your residents. Why Preventive Pest Control is a Good Strategy The most important part of pest control? Prevention. There are so many reasons that a good preventive pest control strategy can pay off for your company, your investor, and your residents. It sets professional property managers apart from the crowd. Here are some of the top reasons why preventive pest control works. Cost-Effective in the Long Run Investing in preventive pest control can save significant costs in the future. While there is an upfront cost, it's generally far less than the expense of handling large-scale infestations or property damage caused by pests. Prevents Major Infestations Pests have a way of multiplying exponentially. A preventative approach can nip potential critter nightmares in the bud. By treating small issues promptly, you prevent them from developing into major infestations that are difficult and costly to eradicate. Enhances Resident Satisfaction Preventive pest control contributes to a comfortable and healthy living environment. By keeping pests at bay, you increase resident satisfaction, which can lead to longer tenancy periods and positive word-of-mouth referrals. Preserves Property Value Pests can cause significant damage to the structure and aesthetics of your property. By preventing pest problems, you protect and preserve the value of your property. Property managers are, in the most foundational way, asset managers for their property investors. This is a critical way to protect those assets. Reduces Health Risks Many pests carry diseases that can pose health risks to your residents. A preventive approach to pest control helps maintain a healthier living environment by reducing these risks. It also protects you and your investor from liability associated with those health concerns. Maintains Reputation Effective pest control is a key aspect of property management, and a preventative approach helps maintain a good reputation. It shows prospective and current residents that you are proactive and dedicated to providing a safe, comfortable living environment. Again, prevention sets you apart from hobbyists and amateur property managers. How Much Does Pest Control Cost? The last – and sometimes biggest – hurdle when it comes to pest control? Cost. General pest treatment can cost hundreds of dollars per service. Here’s an average breakdown: Cockroach/flea treatment: $350-$750 per service Bed bug treatment (heat): $1500+ per service Bed bug treatment (chemical): $1000+ per service Rodent trapping service: $250+ per service Quarterly general insect service: $40-$50 per month How can property managers find a cost-effective solution that drives value and comfort for their residents without breaking the bank? This is the question that Landon Cooley found was nagging the property managers he met. “We wondered: Can we take these specific pain points – bedbugs or cockroaches or fleas – and find a solution that we can build into our Resident Benefit Program?” Pest Control Solutions for Property Managers Cooley’s solution? He co-founded Pest Share, which is a new service in Second Nature’s fully managed Resident Benefits Package. The Pest Share model is a subscription model that works like a co-op: everyone pitches in, and the collected funds go to the more expensive parts of the plan without burdening any one client with too much cost. Property managers simply select the Pest Assurance plan from four tiers of service levels. They add that plan to their RBP or OBP and pay a flat rate for it, which they can also roll into their overall RBP ancillary fees. Their residents can then go directly to Pest Share on their mobile phones to get pest services for no cost. “What we’re offering is unique, on-demand, and very tech-forward. Pet Share gives quick access to service but allows us to offer cheaper price points for the same end result,” Cooley explains. “Our approach is, 'How can we take this off the property manager’s plate?’ We aim to create ancillary revenue for them, take an annoying task off their list, and enhance the resident experience.” The result? Pest Share has helped their property management clients increase their Benefit Package ROI by 75%. For Second Nature, including Pest Share’s model in our Resident Benefit Package – and upcoming Investor Benefit Package – was a no-brainer. Learn more about Pest Share by getting in touch, or read our latest study on the impact of our RBP on the resident experience.

Calendar icon October 10, 2023

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How to Optimize Your Tenant Move-in Checklist

We get a lot of questions here at Second Nature about the ideal tenant move-in checklist. After all, whether you're new to the realm of property management or a seasoned expert, one common goal unites us all: creating an excellent resident experience. The move-in process marks the beginning of your resident’s journey, and it's an opportunity to make a great first impression. A well-crafted resident move-in checklist can make this process smooth, efficient, and stress-free for all parties involved. In this article, we're talking to a leader in the single-family rental property management space to help us delve into the essentials of a resident move-in checklist, its benefits, and how it can enhance the overall resident move-in experience. Let's dive in and discover how a simple checklist can streamline your move-ins. Interested in reading more about resident experience management? Read our 2023 State of Resident Experience Report. Meet the Expert: Janet Sprissler, Broker/Owner, Rent 805 Janet Sprissler has over 20 years of experience in property management and a philosophy of working with residents to bring them value and help communities thrive while providing investors with a positive net operating income. She started her career in Los Angeles with 24 units and grew to a multi-family fixer for over 400-unit buildings throughout Ventura, Los Angeles, and Orange Counties. Janet left multifamily to consult with single-family residential managers to bring her problem-solving philosophy to life. Starting Rent 805 has been a lifelong dream of hers to bring investments, housing, and a positive impact in the property management community. Janet also received the 2023 Triple Win Property Management Award for Leadership in Resident Experience. What is a Tenant Move-In Checklist? A tenant move-in checklist is a detailed document that records the condition of a rental property at the time a resident moves in, serving as an essential tool to prevent potential disputes over property damage during the lease period. Some consider this a landlord-tenant agreement but can be between property managers and residents, as well. This checklist is a lifeline for both property managers and new residents. From the state of the kitchen appliances to the condition of the flooring, this checklist serves as a comprehensive record of the property's state. Other names for the checklist could include: Move-in move-out checklist Inspection checklist Tenant walkthrough checklist Rental inspection checklist Move-in inspection checklist Move-out inspection checklist Rental walkthrough checklist Think of it as a snapshot in time, providing a clear reference point for both parties. It's not just a piece of paper; it's a roadmap to a smooth tenancy for everyone involved. Now, that's a win-win! Note on Language: At Second Nature, we like to say “resident” rather than “tenant,” but will use the terms interchangeably since many property managers have official terminology around these checklists. Benefits of Using a Move-In Checklist Using a well-crafted checklist has far-reaching benefits for property owners, property managers, and property residents. We’re breaking down the benefits based on each of these perspectives. Benefits for Property Owners Protection of Property: A move-in checklist includes a detailed property inspection, protecting owners from damage disputes at the end of a lease. Compliance with Local Laws: Some jurisdictions require move-in checklists for legal protection. Maintenance Tracking: Early identification of maintenance issues can help property owners address them proactively. Benefits for Property Managers Streamlined Process: A move-in checklist provides a clear process, helping property managers to stay organized and ensure all essential tasks are completed. Improved Communication: A checklist sets clear expectations for the move-in process, promoting transparency and minimizing misunderstandings with residents for the lease agreement. Property Protection: By signing off on a detailed checklist, property managers ensure their good work is documented and any issues can be clearly identified as resident responsibility. This is critical when it comes to the security deposit if there is damage. Increased Efficiency: Using a checklist can speed up the move-in process, maintenance before move-in, etc., saving property managers valuable time. Benefits for Residents Clarity and Transparency: A checklist provides residents with clear expectations of what the move-in process involves and their responsibilities. You will have a document of pre-existing damage and know what repairs are needed, plus what’s just normal wear and tear. Peace of Mind: A detailed property inspection at move-in provides a record of the property's condition, protecting residents from unjust damage claims. It also helps them ensure any open issues are repaired. Smooth Transition: A well-organized move-in process can ease the stress of moving, enhancing the resident’s initial experience and ensuring they move into a space that’s ready for safe living. What should be on a Move-In Checklist? With those benefits, it’s clear that having a move-in checklist is critical for any property manager. Some states require property owners to provide new residents with a renter move-in checklist. So, what should you include? Is anything optional? While legally, you may have some leeway, Janet Sprissler says that if you want to truly focus on the best experience, nothing is optional. “Everything with us is a must,” Sprissler says. “That’s why it’s a checklist, you have to check everything off. I don’t have any nice-to-haves on my checklist because everyone is treated the same. We don’t do for one new resident what we won’t do for the other.” Here are the primary things that property managers include in a move-in checklist. Depending on your type of property, real estate investor preferences, and location, this list may change slightly. A comprehensive resident move-in checklist should include: Details of the Resident and Landlord/Property Manager: Full names, addresses, and contact information. Property Details: Full address of the property, the date of the inspection, and the move-in date. Room-by-Room Assessment: This is the bulk of the checklist. An evaluation of each room's condition, including walls, flooring, windows, countertops, faucets, doors, light fixtures, and any furniture or appliances. This should include specifics like paint condition, carpet stains, appliance functionality, etc. Note if anything needs repair, updates, etc. Include all rooms, such as: Living Room, Dining Room, Kitchen, Bedroom(s), Bathroom(s), Laundry Room, etc.‍ Exterior Assessment: Notes on the condition of the property exterior, including yard, light fixtures, fencing, roof, gutters, and driveway. Note if anything needs repair, updates, etc.‍ Utilities: Information about the functionality of utilities such as electricity, water, gas, heating/cooling systems, and internet. You can also include information about a move-in concierge in a Resident Benefits Package through Second Nature.‍ Safety Features: Status of smoke detectors, carbon monoxide detectors, fire extinguishers, locks, and any security systems. Note if anything needs repair, updates, etc.‍ Signatures: Both the resident and property manager should sign and date the document to confirm their agreement on the property’s initial condition.‍ Photographs: Include clear photos of each room and any existing damages to provide a visual record and clarify any potential disputes. Remember, this is a basic checklist, and depending on the property type and local landlord-tenant laws, there may be additional items to include. How to Optimize Resident Move-in Experience A checklist is the foundation of a wonderful move-in experience. But it’s just the starting point. How does a property management company set itself apart from others in the move-in experience? Here’s where we went to Janet Sprissler and others in our Triple Win Property Managers community for input. Use the Right Tools It’s easy to forget a step if you don’t have tools that help automate your process and keep your whole team on the same page. The most important thing? “You don’t forget a step!” Sprissler says. “Without a checklist, you’re pretty much setting yourself up to fail,” she continues. “You will drop things, things will be missed, they’ll move in, and there’s going to be a problem. When you set the tone that ‘this is going to be a hot mess,’ you’re setting yourself up to have disgruntled residents, and disgruntled residents never take care of the property well.” Sprissler especially recommends Monday.com for tracking the checklist and process with your internal team and tools like Tenant Turner to help on the resident side. They use zInspector to ensure they are on top of property inspections. “I’m not big on a bunch of papers around,” she says. “I want to see it all automated, I want any of my team members to be able to dive into Monday.com and see what’s missing or needed right away. That system runs so much, I’m a huge fan of it.” Treat all Residents with Equal Care Sprissler says focusing on making residents feel that “WOW!” is critical to their longevity and care for the property. At her company, they focus on seamless processes, transparent communication, and even gifts! The key is that every resident gets that same treatment. “New residents MUST have a move-in gift,” Sprissler says. “They must all get the procedures we’ve set ahead of time. They must receive their birthday gift, they must receive access to our First of the Month Club. We do a move-in concierge through Second Nature – they must have that touch point. We don’t ever say, ‘Hey, this is going to happen,’ and then it doesn’t happen.” Design the Ideal Move-in Process We asked Sprissler how they create an ideal resident experience throughout the move-in process, and this was her top recommendation. “We make it seamless. SEAM. LESS,” she said for emphasis! “On the move-in side, our new residents go through Tenant Turner to get onto the property with an access code. Move in and move out is on Tenant Turner. We make it very simple for them to get access to the property. We don’t play around with it.” “At every stage of the process, prospective and new residents have had conversations with us so that they’re set up, and they know what’s going to happen next.” For Sprissler, it’s about thoughtful touches that give residents a sense of a VIP experience. “For example, people get hungry!” Sprissler says. “We have pizzas delivered on a moving day. One of our move-in questions is ‘What’s your favorite pizza?’” Be Willing to Go Above and Beyond Added touches – like the pizza on move-in day – go a long way to establishing the best resident experience and behavior. “When tenants have those touches, it makes life better. It just does,” Sprissler says. They provide birthday gifts and move-in gifts and will add items for pets or children customized to those residents. “People often say, ‘How are you recouping that?’” Sprissler says. “I’m recouping that by having great units when I walk through the door. You cannot pay someone to take care of a unit. But if they feel the worth of themselves and how you feel about them, they take great care of the unit.” Provide a Move-In Concierge Second Nature includes a move-in concierge as part of the Resident Benefit Program. Sprissler says this is one of the best parts of a seamless move-in. “We use a move-in concierge through Second Nature,” Sprissler says. “People really like it when they’re being reached out to, and all of that is handled. Moving is one of the top five stressors people experience in life. You have to realize as a property manager that you have to take some of that pressure off them. Take it off their plate! Are you making a better experience by piling stuff up on them?” “When people come into my office and say this is the best experience I’ve ever had, I know we’ve done our job,” Sprissler says. Provide a Renter’s Insurance Program Making sure that residents have insurance coverage from day one is key. You never know when something could happen, and protecting residents is the foundation of a good experience. Second Nature’s RBP includes a renter’s insurance program that has 100% compliance across its use. Sprissler is one of the people who use this program, and she says it’s critical to have for her residents. Set Clear Expectations and Incorporate Incentive Fees Sprissler recommends requesting a tenant ledger so you have the clearest information about the resident before move-in. “You can see if they’ve been charged for maintenance requests, you can see what day they pay – it really is a black and white of how they treated that previous unit,” she says. And then, of course, that clarity should be reciprocated. Sprissler emphasizes transparency upfront and excellent follow-through. Be clear, but also show that you are willing to listen. “Say what you mean and mean what you say,” Sprissler says. “I have Rent 805 rules and regulations, and any delinquency is heavily fined. Those are behavioral fees. For example, my late fee is very high, but then it’s also part of my resident benefit package to forgo that one time during the life of the tenant being in the unit. It just sets expectations.” Ultimately? “If you use good software that does a good job of screening, these questions are all resolved for you.” Final Thoughts Remember, a move-in checklist is not just a document; it's a tool to enhance communication, establish expectations, and create a positive resident experience. Our top recommendation for ensuring a world-class resident experience is to build a resident benefits program. Second Nature has pioneered the only fully managed Resident Benefits Package for single-family property managers. Learn more about resident experience management in our State of Resident Experience Report, or explore the benefits of a Resident Benefits Package.

Calendar icon July 24, 2023

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Resident Benefits Package: How to Increase Revenue and Reduce Costs

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

Calendar icon July 18, 2023

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9 Ways to Improve Your Resident Experience

Resident experience is the sum total of interactions and experiences a resident has with their property manager and the rental property itself – from the initial lease signing to the eventual move-out and all the day-to-day living moments in between. It encompasses everything from the quality of services provided, like timely maintenance and communication, to the overall livability and enjoyment of the property. In essence, it's how a resident perceives their rental journey in its entirety. Excellent resident experience management is the mark of a top-tier property management company. It boosts resident retention, satisfaction, and outcomes. In this article, we delve into nine actionable ways to enhance the resident experience in your single-family rental properties, fostering stronger relationships and, ultimately, achieving greater success in property management. Read the full report! If you haven’t already heard, we recently published our first-ever State of Resident Experience Report, which explores resident experience management: the pivotal touchpoints between a resident and a property manager. The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. 1. A Seamless Move-In Experience Ah, the move-in process – the start of a beautiful friendship between the resident and the property manager. It's a bit like a first date – you're setting impressions that could make or break the relationship. A seamless move-in experience is your chance to roll out the red carpet for your new residents, showing them they've made the right choice (and have definitely swiped right on the best property around). And guess what? A resident who's had a great move-in experience is a happier one. Happier residents stay longer, pay on time, take care of the property, and make positive recommendations. Resident experience examples: How to build a perfect resident move-in experience Here's how to ensure your move-in experience hits all the right notes. Clear Communication: Provide detailed information about the new home and move-in process, including key collection, utility setup, and property rules. Who's handling utilities? Where's the best pizza joint nearby? Share all the important details. Welcome Packet: Roll out the resident red carpet with a welcome packet. Not only does it have all the must-know info, but it also says, "Hey, we're glad you're here." Include essential information such as garbage collection days, rules, important contact numbers, and a neighborhood guide. Property Readiness: Nothing dampens spirits like a flickering light on the first day. Ensure the property is thoroughly cleaned, all appliances are working, and any previous damages are repaired before the move-in date. Efficient Paperwork: Let's face it, nobody loves paperwork. Make it painless with easy online forms and digital sign-offs. Personal Touch: A little welcome gift can go a long way. It's like saying, "Welcome home, neighbor. We're going to rock this thing." Second Nature’s Resident Benefits Package includes a Move-in Concierge to ensure the process is seamless and personal. 2. Responsive Communication In the symphony of successful property management, responsive communication is your melody. It's the backbone of a harmonious resident experience, and when done right, it can elevate your property management status from “forgettable” to “virtuoso.” The sooner you respond to your resident’s queries or concerns, the more they'll feel valued. And a valued resident is a happier resident. Remember, good communication isn’t just about speed—it’s about clarity too. It's like being a great tour guide in the bustling city of property management—clear, informative, and always ready to help. Ways to improve communication with your residents Let's explore some best practices: Multiple Channels: Embrace the digital age! Offer various communication channels like emails, text messages, phone calls, and even a resident portal. Variety is the spice of life, right? Be Proactive: Don’t wait for your residents to reach out with issues. Regularly check in and ask if they need anything. Set Expectations: Be clear about your communication protocols. Let your residents know when and how they can reach you and when they can expect a response. No one likes to be left on read! Listen Actively: When your residents speak, lend them your ears! Show understanding and work collaboratively towards solutions. It's a two-way street, after all. Be Respectful: Always communicate with respect and professionalism. Treat your residents the way you’d want to be treated – it’s the golden rule, even in property management! 3. Better Maintenance Services with Quick Response Times Think of maintenance services as the superheroes of the property management world. When done right, they swoop in to save the day, ensuring minor issues don't escalate into supervillain-sized problems. Quick response times? That's your superhero's super speed. The quicker the response, the happier your resident, and the safer the day. How to improve maintenance services and response times Here's how to get your property management cape (sorry) flapping in the wind: 24/7 Maintenance Line: Offer a dedicated line for maintenance requests. To belabor our superhero analogy, it’s like having a bat signal for your tenants – they know help is just a call away. Online Reporting: Make it easy for tenants to report issues. An online system can keep things organized and ensures no request gets lost in the shuffle. Prompt Follow-up: Act swiftly on maintenance requests. Even if you can't fix the issue immediately, acknowledging the request and providing a timeline can ease the resident's mind. Regular Inspections: Regular property inspections can help you catch potential issues before they become major headaches. It's all about that ounce of prevention! Trusted Vendors: Work with reliable and professional vendors who provide quality work in a timely manner. They're your sidekicks in maintaining property harmony. 4. Resident Surveys and Active Feedback Gathering Resident surveys and feedback gathering are your property's annual check-up, a key health indicator for your relationship with residents. These invaluable tools allow you to take the pulse of resident satisfaction, uncover hidden issues, and celebrate what's working well. When residents see their feedback being valued and acted upon, it creates a sense of involvement and community, enhancing their overall living experience and driving resident retention. Importantly, active feedback gathering shows your residents that their voices matter. It instills a sense of ownership and care that can often lead to better property care and longer tenancies. How to turn resident feedback into a better resident experience Here are some ways to champion feedback in your property management: Regular Surveys: Don't just wait for the annual survey. Keep the feedback coming in regularly, like a monthly check-in or a quick poll after a service call. It's like catching up over a virtual cup of coffee – relaxed and informative. Feedback Boxes: Consider setting up a digital feedback box where residents can drop their thoughts, ideas, or concerns anonymously. Think of it as your modern suggestion box. Act on Feedback: Here's the real deal – taking action. Show your residents that their feedback isn't just being heard, it's being actioned. 5. Resident Rewards Resident Rewards are a huge factor in resident retention and satisfaction. Rewards make residents feel appreciated and have proven to incentivize habits like on-time payments and better care for the property. Perks like this can significantly boost resident satisfaction, increase lease renewals, and even stimulate referrals. It's a win-win all around! For multifamily and apartment community managers, that might look like community-focused programs. For single-family property managers, we’ve got some other tips. Second Nature’s Resident Benefits Package includes a robust resident rewards program. How to improve the resident experience with resident rewards Here's how you can sprinkle some rewarding magic into your resident experience: On-Time Rent Rewards: Create a system that rewards residents for consistently paying their rent on time. It could be a small discount or a gift card to a local coffee shop. Longevity Rewards: Celebrate lease renewals or long-term residents. A gift, a discount, or even a personalized note can make your residents feel valued for their loyalty. Referral Rewards: Turn your residents into ambassadors! Offer a discount or a bonus for any referral they make that signs a lease. Surprise Rewards: Keep the excitement alive with occasional surprise rewards. It could be as simple as a movie ticket or a voucher for a free car wash. 6. Incentive Programs Incentive programs are the next level of resident engagement that professional PMs offer. They can positively influence resident behavior, promote a sense of belonging, and even enhance your property's appeal to prospective residents. When residents feel that their good habits (like timely rent payments) are being recognized or they're being offered valuable services (like credit reporting or identity protection), it builds loyalty and satisfaction. It's like saying, "We're in this together, and we've got your back!" How incentive programs can boost the resident experience Here's how to serve up a great menu of incentives for your residents: Credit Reporting: Offer a program that reports timely rent payments to credit bureaus. It's a win-win: they pay their rent on time, and they build their credit! Identity Protection: In a world where digital safety is paramount, offering identity protection services can be a powerful incentive. It's like providing an invisible, protective bubble around your residents. Rent Discount for Referrals: Encourage residents to become your ambassadors. Offer a rent discount or a gift for successful referrals. It's like having your very own fan club. Early Payment Incentives: Reward residents who pay their rent well before the due date. It could be a small discount or a token gift, but it makes them feel appreciated. Rewards for Green Habits: Encourage residents to adopt environmentally friendly habits, like recycling or energy conservation, and offer incentives for their green efforts. This can really help in SFR when you don’t have the same level of control as PMs managing an apartment building. 7. Support Tools Support services work behind the scenes, often unnoticed, but they play a crucial role in streamlining the resident experience. From filter delivery subscriptions to online payments, these services add a layer of convenience and assurance for your residents. Integrating support services into your property management strategy can not only elevate resident satisfaction but also reduce your workload. It's like having a friendly assistant who's always ready to lend a hand, both to you and your residents. How to create support services that add convenience to your resident experience Here are a few ways you can amplify your resident experience through support services: Filter Delivery Subscription: Offering a filter delivery service for your residents ensures their HVAC system is always protected. It reduces your maintenance issues and costs and ensures they have a safe living environment. Second Nature’s filter delivery reduces resident and PM costs by hundreds of dollars a year. Online Rent Payment: Providing an easy-to-use online portal to process and automate rent payments and lease renewals adds a layer of convenience for you and your residents. Maintenance Request Portal: An online system for maintenance requests helps keep track of issues and ensures timely response. It's like having a 24/7 maintenance desk at their fingertips. Digital Notifications: Use email or SMS notifications to keep residents updated about important things like maintenance schedules, community events, or changes in property rules. Proptech solutions can help with digital support. Resident Portal: A comprehensive resident portal where tenants can access services, find information, and connect with management can significantly enhance the overall resident experience. 8. Concierge Services Concierge services are the above-and-beyond offerings that can truly set your property apart from the rest. This personalized attention can transform the often stressful processes into a smooth and enjoyable experience. How concierge services help with resident experience Here are some other examples of concierge services: Move-in Concierge: Who doesn’t want a personal assistant during the often chaotic time of moving? A move-in concierge helps with utility setup and pricing comparisons and provides local area information. Learn more about Second Nature’s Move-in Concierge in our Resident Benefits Package. Cleaning Services: Offering access to trusted cleaning services, whether for regular use or during the move-out process, can be a huge convenience. Maintenance Scheduling: A service to help residents schedule routine maintenance can keep their homes running smoothly without them having to worry about coordination. 9. Insurance While, as a property manager, you carry insurance for the physical property, it's equally important for your residents to have renter's insurance. Your coverage protects your owners' real estate investment. Renter’s insurance protects residents’ personal belongings and covers them for liability, and it's a small investment for significant protection. Plus, in case of a mishap, it can help the recovery process go much more smoothly. Resident experience examples: How to leverage a renter’s insurance program Here's how you can integrate insurance into your resident experience: Educate Residents: Make sure your residents understand the importance of renter's insurance, what it covers, and what it doesn't. This is critical information that every renter should know. Insurance Requirements in Lease: Include a clause about renter's insurance in your lease agreement. This helps to set the expectation right from the start. Annual Reminders: Send out annual reminders for policy renewals. It's a small step, but it ensures continuous protection for your residents. Renter’s Insurance Program: While most property managers require insurance, less than half of renters maintain coverage. Second Nature has developed a renter’s insurance program that has 100% compliance and leaves residents – and you – with the coverage they need. How SecondNature Improves Resident Experience Resident experience – those pivotal touchpoints between a resident and a property manager – can significantly shape the success of a single-family rental home. At Second Nature, we’ve built our entire company on the idea that resident experience can change the game in property management. Our Resident Benefits Package wraps up each of these strategies into an all-in-one resource for property management companies. It saves money for you and your residents and delivers the best in convenience and resident experience. Learn more about the Resident Benefits Package or read our State of Resident Experience Report.

Calendar icon July 18, 2023

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Why is Resident Experience Important?

Have you heard? We just published our first-ever State of Resident Experience Report! The report draws fresh insights from the SFR property management industry and explores the three top factors impacting resident experience right now. Download the report to see the results! In the meantime, today we’re getting started with a related topic: Why is resident experience so important? Resident Experience is the cumulative effect of all interactions and engagements between a resident and a property management company throughout their leasing lifecycle. It encompasses every touchpoint, from the initial viewing and leasing process all the way to maintenance services, communication, amenities, and lease renewal. In many ways, the resident experience is the heart of professional property management, encapsulating the quality of living provided beyond just a physical living space. In this article, we will: Explore the paramount importance of resident experience to property management Outline how it can directly impact factors like retention rates, profitability, and reputation Share insights from leaders in the single-family rental property management industry Buckle up as we delve into the power of stellar resident experience – and how it’s becoming a strategic imperative in the current real estate landscape. Here are 8 ways resident experience management can make a difference for residents, investors, and property management companies. 1. Improves Retention Rates Retention rates, or the ability to keep residents renewing their leases year after year, are a key metric of success for any property management operation. High retention rates mean stable revenue and reduced costs associated with vacancies, marketing for new residents, and turnover maintenance. But what fuels high retention rates? The answer is an exceptional resident experience. When residents feel heard and valued, they’re a lot more likely to renew their leases. This positive resident engagement is just as important in single-family rentals as it is in multifamily apartment communities, where it often gets more attention. In essence, the resident experience is your tool to turn the transient nature of renting into a long-term relationship. It's not just about providing a day-to-day place to live; it's about designing a product and service that residents will pay for and stay for. A truly positive resident experience can convert short-term leases into long-term homes, making it a strategic focus for effective property management. “I think ten years ago, property managers were only concerned with collecting rent and keeping tenants from doing damage to properties. It was a much more adversarial relationship than it is today. Today, the best PMs know that resident experience is vital to minimizing vacancy and creating a resident that strives to be a higher quality tenant.” - Jonathan Cook, Business Development Manager, Revolution Rental Management 2. Reduces Vacancy Costs One of the most substantial costs that property managers (and their investor clients) face is the cost of vacancy. Each day a property remains unoccupied equates to lost revenue. Not to mention the additional expenses associated with marketing the property, move-out costs, screening new residents, prepping the move-in process, and preparing the unit for occupancy again. When you add it all up, the costs can be quite significant. This is basically the flip side of the coin of “resident retention.” Good resident experience → Resident retention → Reduced vacancy costs. A positive resident experience can act as a powerful retention tool, encouraging residents to renew their leases and reducing the churn that leads to vacancies. “We’ve really started to notice that the better experience we can make with the tenants, the more they want to come to us as opposed to our competitors. It's all about experience. We’ve held onto this idea that we want to provide the experience that residents gravitate to.” - Chenoa Stark, Property Manager at American Leasing and Management After all, happy residents can become your advocates. They are likely to spread the word about their experience, drawing in potential new residents. By delivering an exceptional resident experience, you're offering them just that, making your property stand out in a crowded market. 3. Increases Profitability “Property Managers who are on the cutting edge realize that by focusing on the resident experience, they will earn better returns on investment for their company and their investor clients.” - Gregg Cohen, Co-Founder of JWB Real Estate Companies. A compelling resident experience is a secret weapon for driving profitability in property management. It's like a strategic chess move that not only strengthens your relationship with residents but also contributes to your bottom line in several key ways. Reduced Acquisition Costs: We’ve already discussed how, by keeping your current residents happy and renewing, acquisition and move-in costs are drastically reduced. Increased Ancillary Revenue Opportunities: A positive resident experience can open the door to various ancillary income opportunities with strategic pricing. Services like an RBP can boost your profitability while simultaneously improving the resident experience. Word-of-Mouth Marketing: Satisfied residents are your best brand ambassadors. They can spread positive word-of-mouth about your property, attracting new prospects and reducing marketing expenses. Operational Efficiency: Elements that enhance the resident experience, such as digital communication portals or automated maintenance requests, also lead to operational efficiencies. These improvements can streamline and automate processes, saving time and reducing costs. In essence, a robust resident experience strategy is not just about resident satisfaction; it's a profitability powerhouse. It allows property managers to attract and retain residents more cost-effectively, uncover new revenue opportunities, and operate more efficiently, all of which positively impact the bottom line. 4. Boosts Reputation In the age of online reviews and social media, reputation is everything, especially in the property management industry. A strong, positive reputation can be one of your most valuable assets, attracting potential residents and providing a competitive edge in the market. The cornerstone of a great reputation? You know the answer already: An exceptional resident experience. When residents have positive interactions with your property management team, they're more likely to share their experiences. These shared experiences, whether through word-of-mouth or online reviews, contribute significantly to your company's reputation. Positive reviews can attract new residents looking for a new home, reducing the time and cost of filling vacancies. They also provide a form of social proof, assuring prospective residents that they're making a good choice by choosing your property. Furthermore, a stellar reputation can strengthen relationships with investors, vendors, and other stakeholders. It can lead to new business opportunities and partnerships, further boosting profitability. In essence, cultivating a superior resident experience is like planting the seeds of a robust, positive reputation. As you nurture these experiences, your reputation can grow, reaping benefits in terms of resident attraction and retention, stakeholder relationships, and overall business growth. 5. Simplifies Rent Collection Rent collection is a critical component of property management, and any strategy that can streamline and improve the efficiency of rent collection is worth its weight in gold. That's where a stellar living experience comes into play. Satisfied residents are generally more cooperative and timely in fulfilling their financial obligations, including paying rent. Positive relationships between residents and property managers foster a sense of mutual respect and understanding, which can go a long way in ensuring smooth rent collection. The resident experience also extends to tools and incentives for on-time rent payments. For instance, an easy-to-use online portal for rent payment can lead to faster, more reliable rent payments. One of the best ways to ensure on-time payments is by providing incentives in a Resident Benefits Package (RBP). An RBP can provide credit reporting for on-time payments, resident rewards for early payments, and more. A great resident experience doesn't just make residents happier; it makes the fundamental aspect of rent collection easier and more efficient. It's a testament to the idea that good relationships make good business sense. 6. Reduces Maintenance Issues Maintenance is a significant part of property management, and it can be a substantial cost center. However, by offering a superior resident experience, you can reduce the frequency and severity of these issues. Residents who feel taken care of are more likely to reciprocate those feelings towards the property. A positive resident experience can also foster better communication between residents and management. Residents are more likely to report minor maintenance issues promptly before they escalate into major, costly repairs. For instance, a leaky faucet reported and repaired promptly will cost much less than ignoring it until extensive water damage occurs. Again, one of the best ways to boost resident satisfaction and reduce maintenance costs is to provide a Resident Benefits Package. At Second Nature, our RBP provides things like scheduled filter delivery to ensure air filters are changed on time and reduce HVAC costs. The mantra is simple – take care of your residents, and they'll take care of your property. 7. Creates Satisfied Investors Property owners are investors who seek returns on their investments and the preservation of their properties' value. A vital element to achieving this is through offering an exceptional resident experience. When residents are satisfied, they tend to stay longer, pay rent on time, and take better care of the property. This leads to consistent income, reduced expenses, and fewer maintenance issues — all key elements for maintaining a property's value and ensuring strong returns. And remember: properties known for their superior resident experience tend to attract quality residents faster, reducing costly vacancy periods. They're also more resilient against market fluctuations, preserving investors' returns. Property investors value professional property management that focuses on resident experience because it signifies competent handling of their investment. It displays a forward-thinking approach that aligns with today's renter expectations. It leads to a virtuous cycle of high-quality tenancies, stable returns, and preserved property value – a “triple win” for residents, PMCs, and investors. “When you're giving that great experience to your residents, you're also giving that great experience to your owners. They have less lost vacancy, they have more care and more respect given to their property, and that's going to protect their assets. That shift in the industry is already happening, and those that are able to make that pivot quickly are going to be able to level themselves up and really get ahead of the curve.” - Kelli Segretto, Property Management Inc. 8. Builds Competitive Advantage “As the operator of a business, how can I get from something transactional to something transformative – so that people are getting something from me that they aren’t getting from most other businesses.” - Jordan Muela, CEO of LeadSimple In today's competitive property management landscape, offering an exceptional resident experience is not just a perk, it's a differentiator. It's what sets a property management company apart in a crowded market and makes it a preferred choice for residents. A positive resident experience leads to higher resident retention, reducing vacancy rates and the costs associated with acquiring new residents. It allows property managers to maintain steady rental income, creating a solid financial foundation that competitors might struggle to match. In a nutshell, a commitment to providing an exceptional resident experience can provide a significant competitive advantage for all the reasons listed above – positioning a property management company as a leader in the field. How Second Nature Helps Optimize Resident Experience Second Nature built a product based on the idea that creating a world-class resident experience could make a difference in profitability and value for residents, property managers, and property owners. We designed a fully managed all-in-one Resident Benefits Package that does just that. The RBP provides benefits, incentives, and concierge services that residents want to pay for and stay for. It drives up value for everyone involved and delivers a unique and elevated experience. “A resident benefits package – you hear people call it the easy button. That’s because it is essentially all of these different services and all of these different, valuable add-ons for your residents that are done for you.” - Kelli Segretto, Property Management Inc. Learn more about the Second Nature RBP, or dig into our 2023 State of Resident Experience Report.

Calendar icon July 18, 2023

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Mastering Lease Management for Your Property Management Company

In the dynamic world of residential property management, mastering the art of lease management is more than just a strategic business move; it's the cornerstone of cultivating strong, trusting relationships between investors, property managers, and residents. After all, at the heart of every lease agreement is something profoundly personal: a person's home. Lease management extends far beyond the realm of contracts, finances, and legal compliance. Yes, these elements are undeniably crucial, but effective lease management is also about understanding and respecting the unique needs, expectations, and concerns of the people we serve. It's about combining professional acumen with empathy, maintaining a human touch in an industry that can often seem dominated by numbers and legal jargon. In this article, we have three experts who know what that’s all about. With them, we'll explore the lease management process, focusing not only on the technical aspects but also on the human elements that can make all the difference. We'll delve into why a compassionate approach to lease management can lead to better resident relationships, improved resident retention, and, ultimately, a more successful and rewarding property management experience. So, whether you're a seasoned property manager or just starting your journey, there's something here for you. Let's get started. (Or, if you prefer listening over reading, you can hear our full discussion on the Triple Win Podcast!) Meet the Experts Melissa Gillispie JWB Property Management Director of Leasing & Property Management Located in Florida - 5,600+ Doors Under Management David Galant Pathway Properties, LLC Owner / Principal Real Estate Broker (Licensed Broker in Utah & California) Licensed Continuing Education Instructor Utah Division of Real Estate Most recently, with Atlas Real Estate as a Regional Director Located in Utah - 50 Doors Under Management - started up 3.5 months ago Kristin Leet One Focus Property Management Leasing Agent - Boots on the Ground North Central Pennsylvania - 600 Doors Under Management Understanding Lease Management: What It Is Lease management is the process of overseeing and controlling all aspects of lease agreements between a landlord and tenant – or, in the language that we prefer to use here at Second Nature – the investor and resident. It includes tasks such as drafting lease agreements, screening potential tenants, handling rent collection, managing lease renewals, and maintaining clear communication lines between all parties involved. Effective lease management ensures a seamless experience for both residents and property owners, aiding in resident retention and maximizing rental income for your investors. Understanding Lease Management: Why it Matters Our panel has tons of advice on tactics, KPIs, and processes for effective lease management. But first, they say, it’s important to establish why it matters to get it right. “When you think about housing, it’s a basic human need,” Melissa says. “That’s the human element. Obviously, we lean on automation and technology to support us, but I think that as things have changed in our industry – and this generation of renters has changed – so must our processes evolve in order to meet the needs of the people that we serve and to impact our local communities.” David adds: “One of the basic human needs is shelter. Another way to look at it is some of the most stressful events in your life are death, divorce, and moving. So we’re dealing with high-stress situations. To be fair to the owners, to the prospective residents, and to your team, the lease management process needs to be efficient, organized, and systematized.” According to Kristin, that’s part of achieving a Triple Win: “A guiding principle is helping qualified tenants find a place that is safe, affordable, and something that they can be proud of. I’m also making sure that I’m doing my due diligence to our clients so they’re getting the best return. We want to give everyone involved an experience that's worthwhile and makes them want to continue to do business with us.” Steps in the Lease Management Process So, with a lease agreement established and prepared, let’s get to the meat of the conversation: each step of the lease management process. We’ll talk through the process and share insights from our panel on each 1. Preparing the Property Before listing a rental property, ensure it's in excellent condition to attract potential residents. This may include repairs, painting, professional cleaning, or upgrading certain features. “We have what's called our JWB Livability standards,” Melissa says. “Does this home meet our company standards? If it doesn't, then we need to make sure we're addressing those things. The more that you invest on the front end in making sure that a property is showing in an amazing way you're going to get that back with a resident who is proud of the place, going to take care of it and lead to a hopefully long-term resident.” 2. Marketing the Property Effectively advertise your property on appropriate platforms to reach your target audience. Quality photos, detailed descriptions, and highlighting of key features can help attract potential tenants. Kristin describes how important the details are here: “Are your pictures fantastic? Are there clear pictures of each room? I get comments all the time from people who say they love that you can get a feel of the property from our ads, just from the pictures or video. Video is such a powerful tool.” 3. Property Tours Hosting property tours is an integral part of the lease management process. It's an opportunity for potential residents to view the property firsthand and for you to showcase the property's best features. This is where your best sales skills come in. Kristin talks about how this is the chance to be the face of your brand. “I'm the one they see in the beginning, I'm the face that welcomes you in, makes you love the place. It’s so important to be positive and create this sense of home and comfort because the rest of it can be more stressful.” Melissa emphasizes that the property tour is the time to “warm it up. Our leasing agents are the ones who can draw people in and get people to open up and tell them what they're really looking for.” 4. Tenant Screening and Selection Next, you’ll conduct thorough background checks, credit checks, and rental history reviews on potential residents. This helps ensure you select reliable residents who will care for the property and meet their financial obligations. This is an intense part of the process for the potential residents. Kristin explains: “It’s meaty. We're going to ask for every single piece of information, and then we're going to let them know if they’re approved. As aggressive as that can sound, it's up to me to basically say, ‘Listen, we know it's a lot, but it's a lot because it's worth it.’” 5. Lease Signing Once a tenant is selected, you’ll conduct a lease signing meeting. Review the lease terms, answer any questions, and have all parties sign the lease agreement. It’s important to be transparent about the terms of the lease beforehand and ensure that residents feel comfortable and understand what they’re signing. Kristin again: “We have a very transparent website. Our leases are on there, so people can actually read the lease before they even come to us.” 6. Lease Renewals Monitor lease end dates and communicate with residents in advance about renewal options. Offering incentives or showing appreciation can encourage lease renewals and increase resident retention. Melissa explains that their company aims for long-term leases for a triple win: “A long-term lease is that security for the client, and it also locks in rental rates for the resident. It comes back to that triple win concept: the resident wins because they're not subject to significant rent increases based on the market every single year. It's great for the client because they have a little more assurance of long-term occupancy. And then we win because we hit our goals! And we all love to hit our goals.” Leveraging Technology for Lease Management Of course, one of the best tools at a property manager’s disposal for lease management is technology. Property management software and other digital solutions can streamline, automate, and simplify nearly every aspect of the lease management process. Especially since the 2020 pandemic, technology and automation have taken over in the industry. “That change [to digital] was inevitable,” David says, “but Covid really accelerated it. People were starting to dip their toes in the water with video tours and better pictures, and better online presence. And then Covid just forced that change.” Our panel shared some of their insights on the best places to leverage that tech to make your process the best it can be. Self-showings “Almost every company I've ever spoken with at this point does some level of self-showing,” Melissa said. “We use Tenant Turner and CodeBox,” David said. “And then leases are put in and automated through Buildium, which we use as our software suite.” Property management software We’ve written a lot about the best property management software, property management accounting software, and property management automation, so we won’t get in-depth about it here. The market has dozens of excellent solutions, and property managers are fantastic at sharing their knowledge. The software helps support client management, maintenance workflows, payment processes, resident relationships, and more. Virtual assistants Virtual assistants have grown as a major solution in the property management space. Especially in single-family rentals, jobs can be spread out across large geographic regions, and virtual assistants make it possible to serve those regions equally. Plus, they help PMCs maintain objectivity when it comes to the leasing process. Kristin explains the value of a virtual assistant: “So we have one dedicated person here at the company that does our applications, and the reason why we do that is that it eliminates any kind of discrimination. She is a virtual assistant, she does not meet with people in person. It eliminates her having a personal opinion while she's scoring the application. She has contact with them via email and things like that.” Digital solutions and video Digital marketing and video tours or social media posts are one of the leading ways to capture attention and serve potential residents. “I get in front of a camera with a tripod,” Kristin says. “I introduce myself and talk about the company that I'm from. I tell them what the address is, I give them a whole walkthrough tour, and I do an outro. When it’s over, they know what our website is, they know how to apply, they know how to book a tour.” “That personal touch right there helps get people in the door. It's not catfishing someone into believing that a property is any more than what it actually is because they're going to see it. It’s really presenting a property for what it is in the best way possible.” Best Practices for Effective Lease Management Melissa, David, and Kristin shared some of their top tips for building a better lease management process. Deliver digital content and contactless engagement The modern renter is looking for faster, more convenient, and, of course, contactless. “Renters more and more want contactless, like you get when you DoorDash something or order on Amazon and all of that – that’s the new norm,” David says. “The consumer is expecting a thorough, interactive, high-quality experience with digital solutions and online content.” Be flexible and responsive “Remote work has increased migration to different markets in different states,” David says. “Time zones have become blurred. Customers want responsiveness outside of normal Monday through Friday 8 a.m. to 5 p.m. business hours for inquiries on vacant properties.” He adds, “I think the pace of the leasing process has increased in terms of the speed. We're dealing with a more informed consumer. They want more information upfront, they want it quickly, and they want to make a quicker decision. There's a feeling that the pace is faster.” “I think that's the new norm, and I don't think that's necessarily a bad thing. It causes people to up their game and be better. And I think it benefits the property management ecosystem.” Stick to your criteria There are laws guiding leasing standards, and it’s critical that your criteria are fair and apply consistently. “Our criteria are firm,” Kristin says. “Every single applicant goes through the same criteria and same processes, and we don't deviate from that. We don't take your personal situation into account or make exceptions for people.” “Sure, you can customize and meet people where they're at,” Melissa says. “But there has to be some level of: what is the standard you are setting? Because ultimately, you want to treat people the same. And I think with leasing specifically, we are obligated to.” Clearly define workflows and process All three of our panelists describe clearly defined processes and roles within their company for the leasing process. Leasing agents provide that first touch and personalization; then you may have a virtual assistant or leasing assistant who helps follow up and get applications in; then it may go to a supervisor who approves the application, all the way back to the leasing agent who sends the lease out. “We use a process for every single thing that we do,” Kristin says. “If we follow it correctly from start to finish, there's not a point where anyone can say: ‘You didn't approve me because of this.’” Follow up on feedback David explains that asking for feedback is key to their leasing process. “We reach out to prospective residents that toured but haven't moved forward, and we ask them, ‘What did you see? Do you have any feedback on the property? We're very direct because it will help us market the property better.” “One thing we do in our department meeting with our leasing team every week is to have a structure for them to talk through any feedback they received from showings the previous week,” Melissa says. “Then we take immediate action on that feedback when needed. I think you get to make changes and actually improve when you ask for feedback.” Pay attention to pricing “You need to understand where your price is at,” David says. “Is it reflective of the market? Before we engage with an owner prior to a vacancy, we actually put together a spreadsheet that's almost like a rental analysis appraisal. And we'll have subject properties, we'll have adjustments, and we’ll make a recommendation.” If a property isn’t selling, evaluating price fit is a key step. “We have what's called a 10-day rule,” Kristin says. “If it's on the market for 10 days and we haven't gotten an application, we drop the rent. It's an expectation that we set with the owners when we put the property on the market: Is it better to take less rent, or is it better to just leave your property vacant? And nine times out of 10, they want to get the rent.” “One thing that's cool is we have rent escalations built into our lease agreements,” Melissa says. “And so even if we have to make a rent reduction while it's on the market in order to really drive in more leads and get it to move, we're then building in an escalation so that hopefully, by the end of that lease term, we sign long-term leases.” Focus on customer service “Since Covid, there seems to be a more consistent customer service experience across the industry,” David says. “Everyone's voice is amplified, especially the consumer. Their vote counts, thanks to things like Yelp, Google reviews, etc. They can really hurt or help your company's brand.” Balance tech with a human touch “There's one specific part of the leasing management process I think takes the most time,” David says, “and that's between the property tour and getting the application complete. Everything else is pretty automated. But getting that person over the hump to make a decision requires a human touch and follow-up. That's a big commitment. It takes the most amount of time, and you’ve got to be present.” “Ultimately, everybody needs to feel safe and secure with where they are,” Kristin says. “If we can get them on board with starting to get comfortable with technology right from the beginning, it helps eliminate hurdles that they have getting through the process and getting them into the place that they want to call home. But it takes that human touch.” Perfect your KPIs The last step, but what Melissa says could be the most important step: Analyzing the data with KPIs. “We lean heavily on data in our office,” Melissa says, “and I think it's really important as a professional property manager that we all have something that tracks and measures how we're doing compared to the industry, our peers, and benchmarking even against ourselves year over year.” Melissa says they use data to track conversion at every stage: from lead to showing schedule, showing scheduled to showing completed, showing completed to application submitted, and application submitted to application approved. “This is a benchmark against ourselves to help understand if there's any cyclicality to leasing, which I think there is. We track those metrics to say, What's in our pipeline at any point, and then how are we converting from each to the next?” David adds that in addition to seeing annual seasonality, it helps to see daily trends. “It’s not only the time of year, but are they looking more on the weekend or in the evening, or on a Wednesday?” A few other favorite KPIs from our panel: “Market to Move-in” - the time from when a home hits the market to the time someone moves in Time from viewing to application submittal Time from application submittal to turnover Clicks and engagement with ads Application count Average lease term Final Thoughts: Focusing on the Triple Win In the end, the most successful leasing process will focus on driving maximum comfort and value for your client, your residents, and your team. “We’re basing our leasing process on the Triple Win philosophy,” David says. “You're matching a resident with their home, you're helping them out, they're getting sheltered, they're happy, they're comfortable. If you do it right, you’re minimizing their stress. “You're also stabilizing the property or the asset and securing income for the owner. “And finally, it’s a win for your team and your company because you have a satisfied resident, a satisfied owner, and you're building goodwill for your business from these positive interactions.” Learn more about our study on what’s making residents happy in 2023.

Calendar icon July 11, 2023

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Property Management FAQs about Resident Experience

Resident expectations are changing. In today’s “experience economy,” residents and consumers alike are looking for experiences that make them feel taken care of, bring more ease into their lives, and set businesses apart. With these changes in mind, property management companies are developing innovative strategies to build better resident experiences – experiences residents will pay and stay for. Today we’re sharing a Q&A about the resident experience with Melissa Gillispie, the Director of Leasing & Property Management at JWB Real Estate Capital. Here’s what you’ll find in the article. ‍ Key Learning Objectives: Core tenants of resident experience Steps to improve resident experience How improving resident experience can save money for property managers Resident experience examples that have worked Resident experience examples that haven’t worked How to monitor resident experience ‍ Meet the Expert: Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate Capital Melissa started her career with JWB in 2013 and is currently the Director of Property Management. She is the licensed real estate broker for JWB and plays an integral role that has led JWB to manage over 4,900 single-family homes in Jacksonville FL, being the largest local rental management company in Northeast FL. Under her purview, JWB has delivered over 26 million dollars in cash flow to its current clients through exceptional management services. Melissa also sits on the Board for NARPM Northeast FL as the Membership Co-Chair. She won the 2022 NARPM Rocky Maxwell award for dedicated service and contribution to NARPM. She is married to her husband of 14 years and has three sons aged 11, 9, and 6. When she is not working, she can be found at the football and soccer fields cheering her sons on! Related: State of Resident Experience Study Why should property managers pay attention to the resident experience? What steps can property managers take to improve the resident experience? Happy residents stay longer, take better care of the home, and provide better long-term stability and return on investment for clients. They also spread the good word locally and refer more renters to you. And happy residents are usually nicer, leading to happier staff! Residents (and customers in general) are increasingly driven by instant gratification. They expect immediate communication, results, and benefit. Due to this, we have to increase our speed to outcome for them and set great expectations so that we can "under promise and over deliver" – one of our JWB core values! Some key steps to improving resident experience include: A great lease signing experience with impeccable expectation setting. If everyone knows from day one, who is responsible for what, we can avoid tough conversations down the road. Timely communication. Knowing the type of communication each resident prefers. We have a field in our system called "preferred contact method" – if it is via phone, pick up the phone. If it is text, text away. It helps the resident feel like you're willing to customize their experience. Answer the phone! Like any place open for business, you need to be reachable during office hours. Solve their maintenance issues. Make it easy for them to report those issues to you. If I had to give just one: Clear communication is EVERYTHING. Clear expectations, timely responses, and thoughtful and respectful interactions make us a professional industry vs. a mom-and-pop one. How can improving the resident experience save property managers money? Do you recommend hiring a dedicated resident experience specialist, resident manager, or separate team? Improved experience saves TIME. Time is money. Fewer tough conversations, supervisor calls, upset people impacting employee satisfaction, etc. Great experience leads to retention, which saves money and increases revenue for the business. I think the idea of a dedicated specialist or team is great in theory, but many places want to scale back on staffing (employees are expensive!). I also think that putting the responsibility on one person/group of people in the organization is a mistake to some degree. This limits creativity and reach. At JWB, our approach is that it is every teammate’s responsibility to dedicate effort and time to a great client/resident experience. This allows a wide range of ideas to generate and gives the feeling of impact and satisfaction to every teammate for their contribution. Do you recommend using software or tools to help improve resident retention? Here are some of the best tools we’ve used. Automation: Implementing things that don't require a ton of person-hours will allow you to scale your business at a lower cost. The automation/technology investment is worth it in the long run. The Resident Benefits Package (RBP) by Second Nature: DO IT! Find a mail fulfillment house in your city and rely on them to send mass communications via snail mail. Partner with local businesses for discount codes. Text Magic and Call Fire are great automation tools for communication via phone and text. What are examples of resident experience initiatives that have proved effective? On the flip side, what doesn’t work? Residents need to see the value in any initiative. Knowing your audience/clientele and what matters most to them is important. Is it time savings? Money saving? RBP from Second Nature has been a game-changer. It meets a real need and serves a purpose. We also do a monthly resident newsletter. We send out automatic happy birthday emails to every resident on their birthday (we have been able to automate this completely, so 0 time for staff and 100% feel-good for residents). We do "get to know your city" marketing for new residents with mural maps, restaurants and grocery stores near them, etc. We include a magnet at move-in on their fridge with our contact information and after-hours information. These all create moments that show care and concern, and we sprinkle in love for our city. When you miss the mark on providing value or miss the need the resident actually has, that experience moment may fall flat. So we constantly focus on who our residents are and what will fill their cups. How do you monitor or measure the resident experience? We love surveys! We have maintenance and resident net promoter score (NPS) surveys. Every time a work order closes, the resident receives a survey to give feedback on the experience. We review that weekly. For positive surveys, we ask for reviews. Supervisors reach out for low scores to see how we can improve. For the NPS surveys: If they leave a high score, we ask for a positive review on one of our online platforms (Google, Facebook, BBB). If they leave a low score, supervisors seek feedback to improve. The key is DOING SOMETHING with the information you receive; otherwise, there is no value. Don't just let a low score come through and then do nothing. Reaching out shows the resident you pay attention, value the feedback, and want to improve. Reviews online are also a good way to gauge experience. Take those with a grain of salt, however. People are much more likely to leave a bad review than a good one, so it is a lot of work to win here! We ask for positive reviews anytime we have a great interaction with a resident – a phone call where we solve a problem, an email where they say thank you, or anytime someone pays on time or renews their lease – we ask. You don't get positive reviews you don't ask for! How do you use the information you receive in resident feedback or surveys? There is value to it. You can gather a lot of good information and start to identify trends in the data. We can pinpoint areas as a team to improve and celebrate the things we do well. I do think you have to take some of the responses with a grain of salt. You can't make everyone happy even when you try. View it as information to help make decisions vs. the end-all-be-all to measure your worth as a company. We survey on maintenance every time a work order closes, and we get about a 3-5% completion rate. For the NPS surveys, we survey 60 days after move-in and then every six months. We get a 10% completion rate on those. What questions should you ask if you are considering a resident experience survey? What’s a good sample size for a survey? Are there other tips and tricks to keep in mind? For our NPS survey, it is one question: “How likely are you to refer your friends and family to rent from us?” They score us 1-10, and then we allow an open text response field that is optional if they have more to say. For the maintenance surveys, we ask: “On a scale of 1-5, how satisfied were you with 1. the work order submission process; 2. Your maintenance coordinator, 3. The vendor who performed the work, 4. The amount of time it took to complete the work; 5. The overall experience?” Each star scale also allows for open-text responses (again, not required). I think a good sample size is when at least ¼ of your customers have had the opportunity to review. Until that point, the results seem to be all over the place. We track results monthly, quarterly, and annually, as well as by the property manager and maintenance coordinator, work order category, and property type (multi-family, single-family, condo, townhome, etc.). All of this helps us put together a comprehensive picture of where we stack up against ourselves over time. I think it is important to benchmark against yourself. Each business runs in a unique way, so I get less caught up in how other people are doing compared to me and more caught up in how I am doing compared to myself/my business three, six, or 12 months prior. Perspective is important when you are being vulnerable and asking for feedback! Easily Manage and Improving Resident Experience With Second Nature RBP As Melissa mentioned, the Resident Benefits Package (RBP) by Second Nature goes a long way to creating premier resident experiences. And as the country’s only fully managed RBP, it doesn’t take up your team’s time or bandwidth. We designed the RBP to solve headaches for property managers and help them deliver world-class resident experiences that delight residents and build long-term retention. Happy residents = happy clients = happy PMC teams. A triple win! At Second Nature, we’re all about building experiences that residents will pay for and stay for.

Calendar icon June 28, 2023

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FAQs on Property Management Profitability

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.” 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 – and Where You Might Go Wrong 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 Optimize 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.” Best Practices to Increase Profitability 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. 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. How Can Property Management Companies Increase Profit? 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.”

Calendar icon June 28, 2023

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Benefits of Automating Property Management Workflows and Processes

Let’s talk about property management automation. First, a question: How much is your time worth? You can’t be everywhere at once, and yet it can feel like that’s what your residents and investors need from you. The management puzzle becomes even harder for single-family rentals (SFRs) since properties tend to be scattered all over the place. Okay, but hold on – we’ve seen property managers who seem to have exciting lives outside of the business and a strong reputation in the business! We’ve asked them how they do it – and almost always, at least part of their answer is: automate. Automation has transformed every industry, and property management is no exception. Property management automation can transform your workflows and process, and deliver benefits to your business like saving time and money, helping boost resident satisfaction, and more. Let’s dive into the benefits of automating property management, the best tools to use, and where to implement automation. Read more: Resident expectations and trends in the property management industry What is Property Management Automation Property management automation refers to using technology and software to automate various tasks and optimize processes related to managing properties. It can involve using property management software to streamline tasks such as rent collection, applicant screening, property maintenance requests, and accounting, among others. If it sounds great, you’re right! The point is to reduce the amount of time and effort property managers need to spend on manual tasks, allowing them to focus on more strategic tasks that add value to their business. The more processes you can standardize and automate, the more quickly and accurately you can get tasks done without hiring additional staff. The benefit is that you can grow and scale your property management company while keeping costs and pricing down. Doing more without adding cost is a win for you, your investor, and your residents. We recently spoke about Property Management Automation for Owners with Pete Neubig, Co-Founder and CEO of VPM Solutions. According to Neubig: “For the triple win: You have better communication, and things are getting done more efficiently for your resident, so they're happier. If the resident is happy, they will most likely re-sign the lease, which obviously is a win for the owner. And [it’s a win] for the property management company because now we're making more money because we're…reducing churn and capturing some opportunities to make more revenue.” Which Property Management Tasks Should You Automate? Automation might make us think of manufacturing lines or robots, but in the modern workplace, automation is simply a catch-all term for tech tools that can instantly streamline your work process. Automation tools handle time-consuming, repetitive tasks, speeding up the workflow process, creating fewer mistakes, and freeing us up to do more valuable work. Without automation, we find ourselves losing time with busy work like: Manually entering data Writing and sending emails Phone calls and followup Keeping track of to-do lists Fixing mistakes in spreadsheets or other work Reminding team members how to do day-to-day tasks Think about the last month when you took the same action repeatedly – or saw the same situation and made the same decision – or got the same question and shared the same information. If a task is easily duplicated and policy/rule-based, automation is coming for it. Here are a few of the most common areas where PMs are standardizing and applying automation tools. Rent collection Online rent payments can automate reminders to tenants, reduce errors, and increase on-time payments to collect rent without creating any additional work for the PM. Property inspections Using an automated checklist on a handheld device can help you stay mobile and get inspections done in less time. Automation can instantly generate reports, so you don’t have to worry about returning to the office and entering all that data. Maintenance requests A 24/7 maintenance portal means you don’t have to take calls every time they come in, and you can quickly and easily triage maintenance requests. Accounting and bookkeeping Bookkeeping was one of the first areas of automation when computers entered the scene. It's hard to find a professional property management business that doesn't use property accounting software. Digitizing paperwork Property managers are always on-the-go. Digitizing records and process management is a game-changer. Managing new accounts With integrations, you can add new properties, trigger automatic processes, and reduce vacancies more quickly. For example, after entering a new property in your CRM, automation can launch a new property checklist and notify your whole team. Communication Email is the most common form of communication, and yes, it is automation. Some PMs are using even more streamlined workflow communication like Slack, Leadsimple, or HelpScout. Automation can feel alarming to some at first, but the best property managers are embracing it. They’re quick to do the hard work of developing policies, documenting the process, and then using tools to systemize their expertise and automate the work. The result is more reliable and likely less expensive than people doing it. Automating Property Management with Automation Tools After identifying the processes you want to automate, the next step is to adopt the best tools available to property managers. We’re seeing buzz from PMs across the industry using automation tools at every stage of their operations. One of the more visible examples out there is Peter Lohmann, CEO of RL Property Management. He has outlined several no-code tools that he uses to automate his property management business. No-code tools are easy for anyone, and most can “talk” to other software through APIs. Here are some of the tools we like the best and how Lohmann has used them for his PMC: LeadSimple LeadSimple is a sales and operations CRM geared towards property and real estate management. You can approve a rental application in the CRM and trigger other automations like emails, checklists, and more. LeadSimple recently added workflow automation and an inbox product that works like a ticketing system. Zapier Zapier is a workflow automation app that connects all your other apps. For example, when you mark a new property in your CRM, it can “zap” your checklist software to start a “New Property Checklist.” Process Street Process Street is an automated checklist software that gets your entire team on the same page. You can assign management tasks, mark priorities and completions, schedule, and more. It also has email templates that can be automatically populated from your CRM. Slack We all know Slack. Slack is the communications app that puts your whole team in one place, sets up groups, streamlines topics, and more. Zapier can automatically send notifications through Slack about new accounts and assignments. Mailchimp MailChimp automates and sends professional emails. Through integrations, you can connect it with your CRM and other automations, so emails are automatically populated and triggered at the right time. Airtable Lohmann explains that he has transitioned all non-financial data from their legacy system into Airtable, where they have control of it and can connect it to other tools. Buildium Buildium is a property management software for PMs with 50+ doors in their portfolio. With a monthly fee, you can use Building to set up recurring rent payments with credit cards or ACH and use other property management features. Benefits of Automating Property Management Workflows and Processes Professional property managers don’t just manage property; they manage projects, workflows, and processes. Here are some of the top benefits of implementing automation tools to improve those processes and workflows. Improved Efficiency Automated property management processes can drastically reduce the time spent on repetitive tasks, allowing your team to focus on more strategic activities. Use rent collection as an example: Instead of manually tracking payments, an automated system can collect payments electronically, keeping records updated in real-time. Minimized Errors Automated workflows minimize the chance of human error in tasks like accounting, tenant screening, or maintenance scheduling, ensuring accuracy and consistency. For instance, in accounting, automating calculations and data entry can reduce errors that may occur due to manual entry, ensuring the accuracy of financial records. Increased Resident Satisfaction Automation can speed up response times to maintenance requests, rent payment processing, and communication, leading to a better tenant experience. Using maintenance as an example here: Tenants can submit requests online, the system can automatically assign a service provider, and update the tenant with progress in real-time. Enhanced Communication Automated reminders and notifications keep all stakeholders, from tenants to service providers, informed and engaged, improving communication. For example, automated reminders can notify tenants about upcoming lease renewals or rent due dates, ensuring they're well-informed and reducing late payments. Scalability Automated systems allow for easier scaling of operations as your property portfolio grows. It's much simpler to manage increased workloads when processes are automated. As your property portfolio grows, an automated system can easily handle adding new tenants, properties, and corresponding data, without requiring more administrative effort. Real-time Reporting With automation, real-time reporting becomes possible, providing valuable insights into your business's performance and enabling better decision-making. An automated system can provide real-time occupancy rates, rental arrears, or maintenance costs, enabling you to make data-driven decisions. Cost Savings By streamlining operations and reducing manual labor, property management automation can lead to significant cost savings in the long run. By automating routine tasks like tenant screening or lease agreement generation, you can save administrative time and associated labor costs. Regulatory Compliance Automated systems can help ensure compliance with housing laws and regulations, reducing the risk of legal issues. For example, automated system can update you on changes to housing laws and ensure all lease agreements are compliant. Remember, automation doesn't mean losing the personal touch that sets your business apart. Instead, it's about freeing up time and resources to focus more on those areas that truly require a human touch. What is an Example of an Automated Property Management System? One innovative example of automated property management is right here at Second Nature. Our service help manage and automate the resident experience to be the best that it can be. Our Resident Benefits Package allows property managers to deliver premium services – without the hassle of managing the programs in-house. The RBP offers benefits that residents pay and stay for, like rent reporting, renters insurance, filter delivery, identity protection, resident rewards, and even a move-in concierge. With the RBP, you can essentially automate resident happiness. How SecondNature Helps With Automation Automation sets professional property managers apart. As automation is adopted across the industry, professional PMs are more likely to build the right systems and put together the right tools faster than people who aren’t as motivated or skilled. At Second Nature, we believe in the power of innovation, and we see it every day in property managers around the country. Our tools, like the Resident Benefits Package, aim to bring more ease and automation to your work processes so you can get out there and grow your business. Learn more about our benefits and tools at rbp.secondnature.com.

Calendar icon June 28, 2023

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