Calendar icon June 24, 2024

Why Pest Control Is Important for Property Management

Pest control plays a critical role in effective property management. That's because pests are not just a nuisance – they can also contaminate food, damage belongings, spread diseases, and make rental properties unlivable. In this blog, we'll cover the impact of pests on your property and residents' lives, practical strategies for controlling these unwanted guests, and the benefits of a preventive approach to pest management.

On hand to help us deliver these insights is Landon Cooley, the Co-Founder and CEO of Pest Share, a commercial pest control expert. Cooley's extensive experience in the pest control industry provides valuable knowledge on how property managers can effectively integrate pest control into their maintenance routines.

What you'll learn: 

  • Why preventive pest control is a smart strategy
  • How to monitor and control pests on your property
  • The responsibilities of property managers and residents in maintaining a pest-free environment 
  • Common pests, how they enter properties, and the importance of immediate action and resident education

By the end of this article, you’ll have a thorough understanding of the importance of pest control in property management and actionable steps to ensure a healthy, comfortable living environment for your residents.

 

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Why Preventive Pest Control Is a Good Strategy 

The most important part of pest control? Prevention. There are so many reasons that a good preventive pest control program can pay off for your company, your investor, and your residents. It sets professional property managers apart from the crowd. 

Here are some of the top reasons why preventive pest control works. 

Cost-effective in the long run

Investing in a preventive pest control plan can save significant costs in the future. While there is an upfront cost, it's generally far less than the expense of handling large-scale infestations or property damage caused by pests.

Prevents major infestations

Pests have a way of multiplying exponentially. A preventative approach can nip potential critter nightmares in the bud. By treating small issues promptly, you can prevent them from developing into major infestations that are difficult and costly to eradicate.

Enhances resident satisfaction

Preventive pest control contributes to a comfortable and healthy living environment. By keeping pests at bay, you increase resident satisfaction, which can lead to longer tenancy periods and positive word-of-mouth referrals.

Preserves property value

Pests can cause significant damage to the structure and aesthetics of your property. By keeping properties pest-free, you protect and preserve the value of the property. Property managers are, in the most foundational way, asset managers for their property owners. This is a critical way to protect those assets. 

Reduces health risks

Many pests carry diseases that can pose health risks to your residents. A preventive approach to pest control helps maintain a healthier living environment by reducing these risks. It also protects you and your investor from liability associated with those health concerns. 

Maintains reputation

Effective pest control is a key aspect of property management, and a preventative approach helps maintain a good reputation. It shows prospective and current residents that you are proactive and dedicated to providing a safe, comfortable living environment. Again, prevention sets you apart from hobbyists and amateur property managers. 

How to Monitor and Control Pests in Your Property 

Regularly scheduled inspections are the best mechanism for effective pest monitoring. Ideally, qualified personnel should conduct quarterly or biannual checks. These inspections will focus on identifying potential entry points for common pests, and might include checking for cracks in the foundation, gaps around pipes and wires, and proper ventilation in crawl spaces. 

Maintaining open communication with residents is equally important. Encouraging residents to report any signs of pests, like droppings or unusual noises, allows for early intervention. Property managers should have a clear procedure for responding to such reports, ensuring a swift and effective resolution to prevent infestations from escalating. 

Of course, understanding the problem only gets us halfway (if even!) to solving it. 

As property managers, the responsibility of dealing with pest issues falls squarely on your team’s shoulders. Great property management companies employ a strategic approach to integrated pest management (IPM), minimizing the possibility of pests – and dealing with them immediately when there’s an issue.

Along with routine inspections, here are some of the top property management pest control trips we’ve handpicked from the industry. 

Immediate action

Taking immediate action at the first sign of a pest problem is crucial. Delays can allow the pest population to grow, making the issue more difficult and costly to handle. 

A quick response to reported issues shows your residents that their comfort and safety are a priority and can often prevent minor issues from escalating into serious infestations. Whether you call an exterminator or handle it in-house, a swift response is key.

Tenant education

Educating tenants on proper food storage and waste disposal can drastically reduce the attractiveness of your property to pests. Regular communication about cleanliness and preventative measures empowers residents to contribute to a pest-free environment.

Professional pest control services

Sometimes, professional intervention becomes necessary. Pest control services can effectively deal with large infestations, employing safe and targeted solutions. They can also provide expert advice on preventing future infestations.

When hiring pest control companies, Cooley says, it’s important to understand what types of specializations they offer. 

“There are several different segments of the industry, and not all companies do everything,” he says. “Some do only residential insect control, or maybe rodent control. Some are very robust and specialize in all these areas. Every company is a little different.”

Landscaping and exterior maintenance

Maintaining the exterior of your properties is as crucial as looking after the interior. Regularly trim overgrown plants, manage water drainage effectively, and keep outdoor trash areas clean to deter pests.

Seal entry points

Prevent pests from entering by regularly checking for and sealing any potential entry points. This includes filling cracks, fixing broken screens, and covering crevices. Keeping your property in good repair helps make it less accessible to pests.

Proper waste management

Secure and timely waste disposal is key to pest prevention. Ensure that all trash bins are properly covered and regularly emptied to avoid attracting rodents, insects, and other pests.

Each of these methods contributes to effective pest control, helping to create a comfortable, pest-free environment for your residents.

Property Management Pest Control Concerns

Who is responsible for pest control?

The responsibility for pest control can vary depending on the state and the specific situation. In many states, landlords are largely responsible for maintaining a habitable dwelling, which includes addressing existing pest infestations and taking preventative measures. However, some states place more responsibility on residents, especially if the infestation arises from unsanitary conditions within the unit or from a tenant's actions that attract pests. 

Lease agreements often address pest control by outlining each party's obligations. It's important for both property managers and tenants to understand these clauses to avoid confusion or disputes.

What are the most problematic pests?

In terms of structural damage, termites and rodents are high threats due to their ability to gnaw and burrow. Ticks pose significant health risks as they can transmit diseases. For general nuisance and quality of life issues, cockroaches and bedbugs are common culprits. Ultimately, the most problematic pests will depend on the specific location, property type, and potential health risks.

Do I need preventive pest control?

If the properties you're managing have historically had pest problems, or are situated in an area with frequent infestations, then proactive measures will certainly be beneficial. Regular inspections and preventative treatments can offer peace of mind and potentially save money by stopping infestations before they start. Even if you haven’t had any issues, a purely reactive approach can end up costing you.

How can pests enter my property?

Pests can enter properties in a surprising number of ways. Cracks in foundations, gaps around windows and doors, holes created by utility lines, and damaged vents are all potential entry points. Even seemingly small openings can be enough for some persistent pests, like rodents and insects. Additionally, pests can hitchhike inside year-round on cardboard boxes, used furniture, or on pets.

Why Pest Control Is Important 

When we talk about property management, pest control isn't just an afterthought—it's a crucial component of providing the peace of mind that comes with a safe and comfortable living environment. Dealing with these “visitors” is important beyond just the ick factor. 

“The pest control industry only serves 15% of US residents, and yet 86% of US residents have an experience of pest infestations every year,” Cooley says. “So there’s a big gap.”

Let's delve into some of the key reasons why pest control is so important.

Pests contaminate food

Many pests, such as cockroaches, ants, and rodents, are notorious for finding their way into food supplies. They can carry harmful bacteria and other pathogens, contaminating food and cooking surfaces. Mouse droppings, for example, can spread disease, in addition to just being … gross.

This can potentially lead to foodborne illnesses amongst residents, causing unnecessary discomfort and potential health issues.

Pests destroy property

Pests like termites and carpenter ants can cause costly damage to the property structure, eating away at wood and compromising the integrity of the building. Other pests may gnaw through electrical wiring or insulation, leading to costly repairs. 

By maintaining consistent pest control measures, you can prevent such destruction and safeguard your property, making it a more secure and stable environment for your residents.

Pests destroy residents’ belongings

Some common pests, like carpet beetles or silverfish, may seem small and harmless, but they can wreak havoc on a resident's personal belongings. These pests can destroy everything from clothing and books to upholstered furniture, causing financial stress and discomfort to your residents.

Pests spread diseases

Pests are known carriers of a variety of diseases and can be a public health risk. Rodents can spread hantavirus and salmonella, mosquitoes transmit West Nile virus and Zika virus, ticks carry Lyme disease, and fleas are known to carry several diseases or allergic reactions, to name a few. Roaches carry any number of bacteria and diseases. 

Keeping these pests at bay is critical to maintaining the health and well-being of your residents.

Pests make it difficult to live

Beyond physical health risks, pests can create an uncomfortable, even distressing, living environment. The presence of pests can lead to anxiety and sleep disturbances, negatively affecting residents' quality of life. 

Pests like fleas and bedbugs cause physical discomfort if not outright health problems, and many pests, like mites, spread or trigger allergens. 

In short, effective pest control is essential to maintaining the integrity of your investors’ property assets, the health of your residents, and your reputation as a caring and responsible property manager.

 

download rental inspection checklist template

 

How Much Does Pest Control Cost?

The last, and sometimes biggest, hurdle when it comes to pest control? Cost.

General pest control methods can cost hundreds of dollars per service. Here’s an average breakdown for budgeting purposes:

  • Cockroach/flea treatment: $350-$750 per service
  • Bed bug treatment (heat): $1500+ per service
  • Bed bug treatment (chemical): $1000+ per service
  • Rodent trapping service: $250+ per service
  • Quarterly general insect service: $40-$50 per month

How can property managers find a cost-effective solution that drives value and comfort for their residents without breaking the bank? 

Throughout his years of experience, this is the question that Landon Cooley found was nagging the property managers he met. 

“We wondered: Can we take these specific pain points – bedbugs or cockroaches or fleas – and find a solution that we can build into our Resident Benefit Program?”

Property Management Pest Control Solutions

Cooley’s solution? He co-founded Pest Share, which is a new service in Second Nature’s fully managed Resident Benefits Package

The Pest Share model is a subscription model that works like a co-op: everyone pitches in, and the collected funds go to the more expensive parts of the plan without burdening any one client with too much cost.

Property managers simply select the Pest Assurance plan from four tiers of service levels. They add that plan to their RBP or OBP and pay a flat rate for it, which they can also roll into their overall RBP ancillary fees. Their residents can then go directly to Pest Share on their mobile phones to get pest services for no cost. 

“What we’re offering is unique, on-demand, and very tech-forward. Pet Share gives quick access to service but allows us to offer cheaper price points for the same end result,” Cooley explains. “Our approach is, 'How can we take this off the property manager’s plate?’ We aim to create ancillary revenue for them, take an annoying task off their list, and enhance the resident experience.”

The result? Pest Share has helped their property management clients increase their Benefit Package ROI by 75%. 

For Second Nature, including Pest Share’s model in our Resident Benefit Package – and upcoming Investor Benefit Package – was a no-brainer. 

Learn more about Pest Share by getting in touch, or read our latest study on the impact of our RBP on the resident experience.

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Calendar icon July 18, 2024

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Investor Experience Platform™️ IXP™️

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

Calendar icon July 17, 2024

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