October 10, 2023

Why Pest Control Is Important for Property Management

Chief Customer Officer - Second Nature

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 rental property unlivable.

In today’s 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 commercial pest control expert Landon Cooley, the Co-Founder and CEO at Pest Share.

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. Pest Share is a unique service targeted at single-family property management companies that streamlines pest control and takes the day-to-day work off PMCs’ plates.

Pest Share is a part of Second Nature’s fully managed Resident Benefits Package (RBP).

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 tun

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 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 bi-annual 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 is an issue.

Along with routine inspections, here are some of the top property management pest control trips we’ve culled 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

H3: 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 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.

H3: 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 are significant health risks as they can transmit diseases. For general nuisance and quality of life issues, cockroaches and bed bugs are common culprits. Ultimately, the most problematic pests will depend on the specific location, property type, and potential health risks.

H3: 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 have not had issues, a purely reactive approach can end up costing you.

H3: 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 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.

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?”

A Pest Control Solution 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.

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Meet Rhianna Campbell and Kelli Segretto, two property management consultants that combine to boast more than 35 years of property management experience. Both have been through more than their share of tech rollouts. They’ve seen what works and what doesn’t, and they’re here to share with you what a good process for building a tech stack actually looks like. Start from the problem Technology will help you button up inefficiencies, but tech itself can create inefficiencies if it’s implemented for its own sake, which is one of the most common mistakes PMs make when at the top of the tech funnel. “Start with your issues list,” says Kelli Segretto, Founder of K Segretto Consulting and 20-year veteran of property management. “A lot of times what I see is a property manager will go to a convention and they’ll meet with a lot of different vendors, and they’ll come home with five new things they want to implement tomorrow.” There’s something of a FOMO effect with tech as it’s viewed as innately progressive, but tech is only progressive on a case by case basis. It will only help you so long as it solves a problem for you. You have to spend the time to identify what problems exist in your business before you start searching for solutions, lest you find yourself putting the cart before the horse. “You really have to dive into your issues list,” continues Segretto. “Realize what your biggest need is first and choose technology that matches that need. Talk to your fellow PMs, join these mastermind groups, attend Triple Win LIVE events, network on Facebook, and talk to other people to find out what’s working for them.’ Segretto really stresses the importance of doing your homework, because there is a tremendous amount of money and effort that goes into a technology implementation, and the worst thing you can do is go through all of that for little to no benefit. The biggest mistake PMs make when trying to build a useful tech stack is just collecting as many programs as possible and trying to jump directly into a fully functional stack instead of identifying solutions and rolling them out strategically. “We really need to be strategic about how we onboard because how many of you want to onboard new technology today and then decide in a year that it’s the wrong one and change? None of you think that’s a good idea. It costs a lot of money. It takes a lot of effort,” says Segretto Segretto’s issue list template is something she works through with her clients. If you're interested in a professional consulting session to help create an issue/action plan for your PMC, you can schedule a call with K Segretto Consulting here. How do you compile an issue list? “I talk to every single employee and find out what their biggest challenges are,” says Rhianna Campbell, a property management consultant and former CEO with over 15 years of experience in the industry. “I love to hear directly from the people who are working face to face with residents and clients and find out what some of their challenges are in the way that they do things on a day to day basis. And then from there, you can really pull out some of the commonalities that everyone seems to be having.” Campbell goes on to clarify that your issues list that you compile from these conversations gives you a clear cut list of questions you can ask software vendors when investigating solutions. “You can say ‘these are a list of my challenges. Can you walk me through how this software can help me solve these problems?’ And that’s a more direct approach versus being sold all the features that you may not even use.” When vetting specific technologies, Segretto suggests asking for a sandbox instead of just a demo. “Ask for a sandbox to where you can actually play with it, manipulate it, break it, find where those weaknesses are in that software before you commit to it.” Segretto also recommends seeking referrals to users who have used the software successfully and who have tried the software and either passed on it or gotten rid of it. Being able to understand those different perspectives will help you see a more complete picture of who the software is for, where it excels, and where it may come up short. Implementation Once you’ve identified which proptech vendors you want to work with, it’s time to enter the implementation phase. 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Make sure your team knows why you’re doing this and how to use it. “You’re prepping your team, you’re talking about it, and you’re giving those ‘why statements’ so that everyone is on board before you launch. All of that needs to happen in your pre-implementation,” says Segretto Define Ownership Segretto believes it’s critical to identify who in the company will own the technology rollout. A tech rollout is just like any other undertaking in your business in the sense that it needs a central point of leadership to understand and manage all the processes of it. “You then have to pick a designated person who's going to be the owner of that technology. Then as you implement, they're going to be the expert, and they need to have time during that pre phase to become an expert, to get the training, to know the tool so that when questions happen in your office, your team members have a point of contact in office who's going to be able to either give them the answer or find them the answer.” Monitoring “It’s never set it and forget it,” says Segetto regarding the upkeep of a tech stack. “That would be cool, but that’s not reality. You need to be constantly monitoring its performance. I think that sometimes we tend to expect things will just keep working and we don’t really do the work we need to to monitor performance.” Campbell believes it’s helpful to monitor performance of tech that same way you would monitor performance of an employee. You need to conduct regular reviews of your tech’s performance much the same way you would of your team’s performance. Things change, companies grow, priorities shift. The same tech implemented the same way won’t necessarily be efficient forever. Tech audits are necessary to identify places where you can further optimize on a regular basis. After all, constant improvement should exist in any good business. “Being able to evaluate whether or not that technology is working is really important. I've seen a number of times where people buy into the tech and then don't use it. So really having points in time where you check to see if you're really utilizing that software that you paid a lot of money for, and not just spending money on it every month. And that can happen too. So just making sure that you are creating some opportunities to evaluate the performance of your technology to make sure that it's keeping up with the demands and the changes of your organization is so key.” Continuous Improvement The point of continuous monitoring is to promote continuous improvement. Tech evolves. It updates. Platforms overtake other platforms as the landscape changes. It pays to be aware, otherwise you can end up with less of a tech stack and more a tech pile, featuring redundant technologies, unused features, and wasted money and time. Getting the most out of your tech helps prevent these issues and keep your business efficient. Segretto, in her 20 years of property management, has seen companies go searching for tech solutions to problems they’ve already solved but were just unaware of. “Once you've identified how you're using it, then we start going on a treasure hunt to start looking for the hidden gems of what are the potentially overlooked features within my current tech stack.” Squeezing every drop out of your tech is a worthwhile endeavor. For every functionality you need that you can ID in your current stack, that’s one less rollout, one less training, one less process development you need to engage in. It’s a heck of a lot easier and cheaper than getting a whole new system. “How many of you would have time to stop and rebuild all of your processes every six months? Nobody? Yeah, it's impossible. And so instead of adding a new tool into that organization, what we did was we went back in and we maximized the utilization of that existing tool, which is a lot less expensive and a lot less cumbersome on the team than shifting entirely.” Tech is a good thing. Don’t let the length of this article about implementation scare you into thinking it’s more complex than it is. As long as you’re willing to manage your tech stack and make sure your team knows how to use it, you’re going to be in good shape. You wouldn’t bring on a new employee for no reason, so don’t add tech for no reason. Tech is a tool and its power is determined by the person who wields it. If you’re purposeful and thorough, you can vastly improve the efficiency of your business with the ever-growing field of PropTech companies in existence.

May 9, 2024

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How to Create a Rent Increase Letter that Provides Complete Transparency to Your Residents [Free Template]

As a property manager, navigating rent increases can be a delicate task, particularly at a time when the cost of living is rising all around. And while raising rent is a necessary part of maintaining a financially viable property, it's crucial to do so in a way that fosters trust and maintains positive relationships with your residents. The key to this process? Transparency. By clearly communicating the reasons behind the rent increase and providing all the necessary information, you can ensure your residents understand the rationale behind the decision and feel valued as part of your community. In the end, open communication fosters a sense of trust and respect between you and your residents. When residents understand the reasoning behind a rent increase, they're more likely to accept it and remain satisfied with their living situation. Additionally, a positive resident relationship translates to lower vacancy rates, reduced turnover costs, and a more stable income stream for your property. A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” in order to emphasize the human element of property management work. However, there may be instances where terms such as "tenant" are used for legal or industry-standard purposes within documents or communications. In these cases, please know that our intent remains the same – to provide clear, accurate, and meaningful information to all people involved in the business relationship. Key elements of a transparent rent increase letter Here's what should be included in a rent increase letter to ensure your residents have all the information they need: 1. Resident information: Clearly state the names of the residents you're addressing. Include their address. Mention the end date of their current lease agreement. 2. Clear announcement of rent increase: Unequivocally state the effective date of the rent increase. Clearly outline the new monthly rent amount. If applicable, mention any changes to additional fees like pet rent, parking, or utilities. 3. Justification for the increase (transparency is key!): Highlight specific reasons for the rent increase. This could include rising property taxes, increased maintenance costs due to inflation or repairs, market value adjustments based on comparable rentals, or significant property improvements you've made. Be specific and provide data or evidence to support your claims whenever possible. For instance, mention the percentage increase in real estate property taxes or highlight the specific property improvements that are enhancing the resident's living experience. 4. Resident options (maintain a positive tone): Briefly remind residents of their right to review their new lease agreement. Express your willingness to answer any questions they may have regarding the rent increase. Clearly state your contact information (phone number and email address) for easy communication. How to send a rent increase letter Delivering a rent increase letter requires a balance between convenience and ensuring you have verifiable proof of the notification. First and foremost, you’ll need to consider local regulations. Ideally, consult with a lawyer specializing in landlord-tenant law to determine the mandated method for delivering rent increase notices. Some states or municipalities may require certified mail or another verifiable method (e.g., signed delivery receipts with regular mail). Don't skip this step – non-compliance with local regulations can lead to legal issues down the line. Delivery method options Certified mail: This is generally the safest option. Certified mail provides a receipt confirming the letter's delivery and the date it was received. This documentation can be crucial in case of future disputes or legal proceedings. It is typically more expensive than regular mail, but the added security it offers can be worth the cost. Regular mail with signed delivery receipt: This option offers some level of proof of delivery but may be less secure than certified mail. Residents can potentially refuse to sign for the receipt. Hand delivery: If feasible, handing the rent increase letter to the resident in person and obtaining a signed receipt is the most secure method. Note that while some residents might appreciate the convenience of email, this is not always the most reliable notification method. Consider your residents' demographics and preferred communication channels. In any case, the original lease agreement you have with your residents should explicitly state acceptable methods for delivering important notice letters, including rent increases. For instance, if lease terms include email as an acceptable form of communication, then you may choose to use it for rent increase notifications. A note on property management software Property management software can be useful for maintaining a centralized repository of all your communications with residents, including rent increase letters. It is also a useful tool for furnishing clear audit trails and documentation in case of disputes. Do, however, remember to make updates if the software handles rent collection reminders, in order to reflect the conditions of your new rental agreement. Rent increase FAQs Q: How many days’ notice of rent increase do residents need to be given? A: The required notice period for a rental increase can vary depending on your location and the terms of your lease agreement. In general, most states require that residents be given 30 to 60 days' written notice before a rent increase takes effect (this can vary for year-to-year lease renewals vs month-to-month). It's important to check local rent control regulations for specific details on timeframes. Q: Can the rent increase be contested? A: Depending on your location and specific circumstances, residents may have the right to contest a rent increase. For example, rent control laws in some jurisdictions allow residents to challenge rent hikes that are deemed to be excessive (statewide in California and Oregon, or locally in New York, New Jersey, and Maine). It's best to obtain legal advice from lawyers specializing in applicable local laws and state laws to understand your options. Q: What resources are available for residents? For residents who ask about their rights or renting in general, here are some resources you can provide: HUD Tenant Rights: The U.S. Department of Housing and Urban Development (HUD) website offers a wealth of information on tenant rights, including resources on rent increases and eviction processes. Local tenant rights organizations: Many cities and states have local tenant rights organizations that can provide residents with specific guidance and support for renters based on their location and situation. Sample rent increase letter template Below is a template you can use for your rent increase letter. Simply customize the highlighted sections with your specific information. [Your Property Name and Contact Information] [Date] [Resident names] [Address of rental property] RE: Rent increase effective [effective date] Dear [Resident names], This letter is to inform you of an upcoming rent increase for [property address], effective [effective date]. Your current monthly rent of [current rent amount] will be adjusted to [new rent amount]. Additionally, [mention any changes to additional fees, e.g., "the monthly pet fee will increase to $XX"]. We understand rent increases can be disruptive, and we want to be transparent about the reasons behind this adjustment. The increase is necessary due to [list specific reasons for the increase, e.g., "rising rental rates for comparable units… ," “neighborhood revitalization resulting in enhanced value…”]. [If applicable, provide data or evidence to support your claims]. We value you as a resident and appreciate our relationship. You have the right to review your lease agreement if you have any questions about its terms. We are also happy to answer any questions you may have regarding this rent increase. Please feel free to contact us at [phone number] or [email address]. Sincerely, [Your name and the name of your property management company] Final thoughts Prioritize clear communication and transparency, and you’ll find you can navigate rent increases constructively, while ensuring a healthy and positive relationship with your residents. Such communications are a unique opportunity for positioning with your residents by reconnecting on terms, updating expectations, and more. The way you compose these letters – and the way you position the changes – can make all the difference in your renewal rate and resident satisfaction. It’s also the perfect opportunity to introduce a Resident Benefits Package (RBP) and remind residents of your role in adding value to their living conditions. Learn more about the benefits of Second Nature’s fully managed RBP.

May 7, 2024

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