September 2, 2010
Having noisy, disruptive, or otherwise disrespectful neighbors can be a major hassle, both for property owners/managers and tenants alike. Worst of all, a bad neighbor scenario could drive down your rent and retention rates. So what can you do? Check out these links to help you better avoid problematic neighbors and more effectively resolve disputes.
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Cost Saving Tips, Property Management, Property investment, Tenant's Perspective | Tagged: property management software, real estate, Buildium, dealing with bad neighbors, neighbor relations, dealing with nuisance neighbors, conflict resolution, involving the authorities | 
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Posted by Buildium
August 30, 2010
Dealing with bad tenants can be tricky enough—though such scenarios are not ideal, at least you have a contract on your side to dictate 
certain rules and behaviors that ensure the comfort of all your tenants. But what happens in a case involving bad neighbors, when you don’t have the benefit of a pre-existing agreement on your side? Depending on the set-up of your property, a bad neighbor can potentially be just as disruptive (or perhaps even more so) than uncourteous tenants in your own property. Following are some suggestions to help mitigate this sort of scenario.
Consider neighbors when property hunting.
Time and time again in this blog, we’ve highlighted the importance of doing extremely thorough research when seeking out an investment property. And guess what? We’re about to dole that same information out once again. With so many other factors to take into consideration when selecting a property, evaluating potential neighbors is one of those things that all to often falls by the wayside. But on a day-to-day basis, your property’s neighbor can have a considerable impact on your tenants’ quality of living. And if that impact is a negative one, you may very well find yourself with high turnover or an undesirable vacancy rate. So, with this in mind, taking neighbors into account is a consideration when purchasing a property.Visit your potential property at various times of the day to see if there are any red flags (be sure to do this at times when neighbors are likely to be home, such as weeknights or on weekends). If you pick up on any noise or behavioral issues, you may want to consider what sort of impact this might have down the line.
Meet your neighbors.
This sounds simple, but neighbors are much more likely to make more conscientious decisions when they are taking a specific person into consideration as opposed to an anonymous “neighbor.” As soon as you purchase your property, take a few minutes to introduce yourself to your neighbors—this doesn’t take much, just a five-minute chat will do.
Have a calm and rational conversation should an issue arise.
While “pre-screening” neighbors will certainly help you avoid problems down the line, it’s not fail-safe. After all, properties change ownership and if you have a neighboring rental property, you could find yourself dealing with someone else’s bad tenant.
If you become aware of problematic behavior either from your own observations or tenant complaints, have a polite but frank chat with the neighboring property owner, whether that’s the house occupant or a fellow landlord. This simple step may be all it takes; sometimes people are unaware of the effect their actions are having on others and may simply need a bit of enlightenment. Should you have this sort of conversation and find that the issue persists, try one more conversation, preferably at the time the issue is actually occurring.
Involve the authorities.
Although it’s not ideal and can be uncomfortable because it inherently involves a party that you will presumably deal with in the future due to proximity, if the offending behavior is chronic and involves some sort of legal violation (such as noise past a certain hour or reckless public behavior) call the non-emergency number of your local police force and put the matter into a third-party’s hands.
Remember, as with most things, the best way to avoid dealing with problematic tenants is to prevent the problems from happening in the first place. Hopefully, by executing the first three recommendations, you will never reach the point where you have to act on the fourth.
2 Comments | Cost Saving Tips, Property Management, Property investment, Tenant's Perspective | Tagged: Property Management, property management software, real estate, Buildium, online property management, dealing with neighbors, dealing with bad neighbors, neighbor relations, meet your neighbors, involving the police | Permalink
Posted by Buildium
August 19, 2010
If you are managing property in an area with frequent criminal activity, taking the necessary precautions to protect your tenants and your property is a worthwhile investment. There are several steps that you can take that will both raise your property value and keep your retention rates from plummeting. Check out these links to help secure your property and the surrounding neighborhood.
- Installing a home security system may be the most effective method of protecting your individual properties from criminal activity. Check out ADT’s website for more information on their award-winning security systems.
- The National Neighborhood Watch Institute provides inexpensive reflective signs to let potential criminals know that your neighborhood has a plan in place.
- If your property is in a high-crime area, it’s possible that theft and criminal activity are taking place on your property. Make sure that you and your tenants know their duties and risks.
- State Farm provides a fantastic guide to protecting yourself against home burglary — by heeding their advice, you’ll greatly diminish your chances of being burglarized.
Leave a Comment » | Cost Saving Tips, Property investment, Tenant's Perspective | Tagged: Property Management, property management software, real estate, criminal activity, Buildium, crime, Neighborhood watch, protecting your property, brinks, protect your property, adt, neighborhood watch programs | Permalink
Posted by Buildium
August 16, 2010
It’s a fact: Some neighborhoods are more safe than others. It’s also true that while a neighborhood may be quite safe at the time you purchase an investment property, things can go downhill at any time (happily, this phenomenon can work in the opposite direction as well). To make things even trickier, high crime rates aren’t necessarily limited to “bad” areas. Sometimes crime can trickle into nicer areas from surrounding neighborhoods, which is why it’s important to really do your homework before investing in a property—some hazards are simply not immediately obvious.
If, for any of these reasons (or completely different ones), you find yourself with a property in an area that is suffering from regular criminal activity, there are steps you can take to help make your property a safer place for tenants to reside.
Form a Neighborhood Watch Program
This is one of our favorite options, because it goes beyond just protecting your property and tackles the larger issue—making your entire neighborhood a safer, more enticing place to live. The results of accomplishing this are huge for you and include increasing property value and potentially lowering vacancy rates.
If your neighborhood does not already have a Neighborhood Watch Program, it does take some effort to start up but, again, the payoff is big. Begin by advertising the group to neighbors through fliers and notices in local publications (such as alternative weekly newspapers and online publications), and through social networking services. Once you have interest, set up a meeting and devise a plan, which includes safety patrols in the area during nighttime hours. It’s also worth having neighbors post signs on their properties advertising the fact that a neighborhood watch exists as this, in and of itself, can be a deterrent to crime. Contact your local sheriff and have them send a representative to the meeting to help provide tips and guidelines for creating a plan of action and the most safe, effective program possible.
The National Sherriffs’ Association has a number of great tips and tools for starting up and registering an official program in your area. You can also search USAonWatch.org to find out about any existing programs in your area.
Communicate with Your Tenants
There is a tendency to avoid advertising criminal activity in your surrounding area so as not to harm the reputation of your property or alarm existing tenants. However, if you are aware of crime in your neighborhood, it’s actually very important to inform tenants and to provide them with tips for safeguarding themselves and their property.
Much like a neighborhood watch program, having actively involved and alert residents can go a long way toward preventing crime. Just make sure that your communication is not alarmist—information should be provided in a straight-forward, factual manner and tips for protecting and safeguarding property should also be included in the same memo. (Also be sure to include contact information for local police and Neighborhood Watch Programs so that suspicious activity can be reported.)
Safeguard Your Property
Criminals often look for signs of neglect according to James Wilson and George Welling’s “broken window” theory. The gist of this theory is that if would-be criminals see signs of neglect, they are more likely to commit acts of vandalism or crime. Keep your property in good order and make it clear at just a glance that it is a carefully protected area. Install outside lighting (including motion detector lights), put up alarm system signs in conspicuous areas, and secure all doors and windows. Be sure to check out our previous blog post for more tips on safeguarding your property against crime.
There’s no quick fix for ridding an area of crime. But a concerted and consistent effort can definitely make a significant impact over time. Do what you can to make your property as safe as possible and recruit community members and tenants to do their part in keeping their eyes open, making your neighborhood a safer place for everyone.
Leave a Comment » | Cost Saving Tips, Property Management, Property investment, Tenant's Perspective | Tagged: brinks, Buildium, crime, home security, Neighborhood watch, Property Management, property management software, protecting against crime, protecting your property, real estate, tenants | Permalink
Posted by Buildium
August 12, 2010
While “going green” used to be seen by some as notoriously trendy, it has now become the norm. Many of your competitors have likely already gone green, which could be giving them a leg up on you in the eyes of prospective clients or tenants. There is no reason to wait any longer — taking small measures over time to green up your properties can be as good for your bank account as it is for the environment. Check out these sites to get started on the right foot.
- Check out Energy Star’s list of energy efficient products — appliances, electronics, heating, plumbing, and lighting — all of which can save you a bundle.
- Planet Green’s Top Green Cleaning Tips offer low-cost ways to immediately start greening up your properties.
- More and more, tenants are asking their landlords or property managers about their green credentials. This could be a great way to market your business to eco-concerned tenants of property owners.
- You probably aren’t managing properties like these, but they are fascinating case studies on just how far green property management can go. Check out 15 of the Greenest Buildings in the World.
2 Comments | Cost Saving Tips, Property Management, Property investment | Tagged: Property Management, property management software, real estate, Buildium, green, energy efficiency, energy star | Permalink
Posted by Buildium
August 5, 2010
Keeping your lease agreements up to date and in compliance with federal, state, and local laws is the best way to protect yourself and your investment in your property. Here are some great resources to help you keep that lease flawless.
2 Comments | Cost Saving Tips, Property Management, Property investment | Tagged: property management software, real estate, rentals, tenants, leases, Buildium, online property management software, rental software, lease agreements | Permalink
Posted by Buildium
August 2, 2010
If there’s one document in property management that simply has to reviewed (and updated as necessary) on a regular basis, it’s your lease. This 
is, after all, the document that will ultimately determine your rights and protect your best interests when it comes to issues both big and small. Because you’re dealing with a host of rules and regulations on the federal, state, and local levels, it’s imperative that you not only adjust your lease as necessary when laws change, but also that you’re in compliance and protected on all three fronts.
If you’re not proficient in legalese, chances are reviewing your lease (and, moreover, identifying those elements that need to be changed) is a daunting endeavor at best. Following are some tips and best practices for keeping your lease up-to-date and your best interests protected on an ongoing basis.
Hiring Legal Counsel
Yes, this can be a somewhat expensive option. However, consider the fact that a water-tight lease can potentially spare you legal costs of a far more unpleasant variety in the future and additionally saves you a ton of time (as compared to reviewing and revising a lease on your own). Suddenly, the cost of hiring a legal professional to review your lease becomes a far more appealing option. If you do choose to take this route and don’t already have a trusted lawyer in your contact base, talk with real estate and property management professionals for references to proven lawyers that specialize in such matters.
Professional or Association Meetings and Seminars
Taking part in professional groups and associations on both a local and national level can benefit your business in any number of ways. Particularly in the case of associations, it’s their job to keep close tabs on all of the legislative and legal issues that affect your profession. Most associations offer updates on such issues in addition to regular meetings and seminars designed specifically to guide you on issues such as leases, contracts, and other legal concerns. While professional groups in your area may or may not have meetings and seminars specific to this topic, such gatherings offer the perfect forum to exchange information on issues like this and to learn about any developments that may affect you.
Experience
Just as important as an up-to-date knowledge of laws and regulations is your own experience. Let’s say, for example, you’ve had consistent issues with tenants’ pets on your property. You currently have a pet policy in your lease, but know from hard-won experience that your life would be made easier by just disallowing them altogether. In such scenarios, take your own best advice and alter your lease to make it reflect a more manageable, optimal situation for yourself. One word of caution, though: Even in situations like this, you still want to ensure that such changes are not in violation of standing federal, state, or local laws by utilizing one of the aforementioned resources.
In the end, the most important thing is that you make a commitment to yourself to review and update your lease on a regular basis. Perhaps you want to schedule a lease review into your calendar as a recurring task the first week of every year. Whatever you do, don’t let it fall to the wayside. Always be alert to changing regulations that may affect you and potential problems that become apparent from your own experience with tenants your tenants.
7 Comments | Property Management, Property investment | Tagged: Property Management, property management software, real estate, narpm, leases, Buildium, professional associations, pet policies, federal laws, rental agreements | Permalink
Posted by Buildium
July 29, 2010
Natural disasters such as Hurricane Katrina and the California wildfires of 2007 serve as horror stories for property managers and tenants alike. While we don’t suggest living in fear, we do suggest taking the necessary precautions to protect your tenants and your properties from unexpected disasters. Here are some great links to help you learn more about how you can best be prepared for these unexpected events.
- The Property Insurance Coverage Law Blog has followed the aftermath of Hurricane Katrina very closely. The blog offers lots of interesting content regarding property insurance coverage and natural disasters.
- FEMA provides a mapping tool to help you identify if any of your properties are at risk for flooding.
- FEMA also provides a very comprehensive guide to preparing your property for a variety of natural disasters including floods, earthquakes, hurricanes, landslides, and tornados.
- The National Flood Insurance Program offers an interactive tool that can help you estimate how much flooding could cost your property management company.
2 Comments | Cost Saving Tips, Property Management, Property investment | Tagged: Property Management, property management software, real estate, Buildium, flood insurance, property management disasters, hurricane katrina, california wildfires | Permalink
Posted by Buildium
July 26, 2010
Do you think your day was stressful? Let’s stop for a moment to consider those extreme situations some property managers find themselves in. It’s often hard to personalize truly disastrous situations but when you think about it, there were faces behind those properties that were destroyed during natural disasters such as Hurricane Katrina and the raging fires that ripped through Southern California in 2007. While it’s likely you will never find yourself or your property in such extreme situations, there are lessons in both of these cases that can be taken and applied to more run-of-the-mill property management situations.
Hurricane Katrina and Insurance
We are all familiar with the images of the destruction Hurricane Katrina left in her wake—thousands of homes and buildings completely demolished and the families who lived in them homeless, with all of their property destroyed. Good thing insurance exists … right?
Well, according to an October 2007 article in National Real Estate Investor Online, one of the many hurdles which New Orleans faced in its ongoing rebuilding process was the fact that insurance premiums went through the roof, completely out-pricing many property managers when it came to getting back in the game. Not only did insurance premiums go up in New Orleans, says the article, but also “In coastal areas from Texas to Boston, insurers have raised premiums.”
What can possibly be gleaned from this situation outside of how unfortunate the repercussions of Katrina have been? Namely, the fact that insurance is a critical part of owning and managing a property — but one that many investors don’t think of when selecting a property for purchase. No matter how good of a deal you find on a property, if the monthly insurance premiums (which you must have to avoid major problems down the line) are out of control, the property is ultimately not a good investment for you.
When making an investment purchase, in addition to all of the other factors that weigh into your decision, make sure that you’ve done your research and know how much full-coverage insurance will run you. Arming yourself with this information ahead of time will save you (and your bank account) a whole lot of misery in the long run.
Southern California Fires and Safety Measures
When the Southern California wildfires ripped through 500,000 acres of land in 2007, there was not much the 1,500 people who lost their homes could do. While most wildfires are not as extreme as those in 2007, they are a real danger for any area that experiences the flammable combination of winter storms, spring winds, and summer heat.
According to ReadyForWildfire.org there are two steps any property manager who lives in this sort of environment should take to guard against the threat of wildfire:
- Create defensible space – create a buffer between your property and the fire by removing any dead plants, grass, and weeds.
- Harden your home – identify any weak spots in the exterior construction of your property that might easily fall prey to flying embers and bolster them with flame-resistant material.
And, of course, even property managers in less hazardous areas should protect their property by practicing basic fire safety: have accessible fire extinguishers on-hand in common areas; install smoke detectors in each unit and in common areas; and test and check the batteries of smoke detectors on an annual basis.
Though extreme situations may be difficult to relate to, there are lessons that can be taken from all of them to enhance property management practices and insure that disasters of the more personal variety don’t happen under your own watch.
1 Comment | Property Management, Property investment | Tagged: property management software, Buildium, property insurance, online property management, property management disasters, hurricane katrina, california wild fires, fire insurance, hurricane insurance | Permalink
Posted by Buildium
July 19, 2010
One of the most commonly touted reasons property management professionals provide for working in this industry is diversity. Not only is each and every day different from the one 
before but, also, property managers have the unique opportunity to put a wide range of different skills and talents into practice.
With this in mind, there are several different avenues that may lead one to a property management career. Perhaps your background is in real estate, finance, law, or marketing. You may apply any of the professional skills learned in these areas to property management. Or you may simply find yourself wanting to utilize certain qualities or characteristics, such as dealing with people on a consistent basis, problem solving, or multi-tasking. In the property management field elements of all of these professional areas and personal skill sets will come into play. While you don’t have to be a master of all of them (or any of them, for that matter), you do have to possess the willingness to learn certain specific tasks. For example, you don’t have to be a finance whiz to be a property manager, but you do have to perform accounting functions; likewise, you don’t have to have a law degree, but you must have a solid grasp on local, state, and federal laws and regulations to ensure your property is always in compliance.
Do you know you want to get into property management but don’t know what your options are? Property management positions come in all shapes and sizes. You can be a self-employed property manager handling only your own property or you can oversee multiple units for a third party. You can be an operations manager, maintenance supervisor, or regional portfolio engineer. When it comes to finding a job in the property management sector, the Institute of Real Estate Management (IREM) offers a great industry hub. Job listings at IREMJobs.org include everything from basic property management positions to business systems analysis work.
With all of this diversity, where do you actually go to learn about property management and arm yourself with the skills necessary to enter into the field? Here are a couple of our favorite resources for starting your property management career on the right foot.
IREM: Institute of Real Estate Management
Although property managers are not required to obtain any sort of specific licensing, obtaining industry-specific knowledge is a great way to market yourself to potential customers and, also, to ensure that you have a solid education and grasp on the field. IREM offers a robust catalog of classes that include everything from professional ethics to on-site maintenance to fair housing. A wide variety of online offerings allows you to take these classes from the comfort of your own home.
BOMA: Building Owners and Managers Association International
BOMA offers both new and seasoned property management professionals the opportunity to build both basic foundational knowledge and area-specific expertise. Whether you’re looking to learn about the basics of real estate management or to educate yourself on cutting-edge energy efficiency programs, BOMA has you covered. Like IREM, they have online offerings as well as audio seminars, which can be attended by phone.
Property management is one of the few fields that allows professionals to use a wide variety of skill sets, keeping work interesting on a day-to-day basis. If you think property management might just be for you, the resources above are a great place to start.
Leave a Comment » | Property Management, Property investment | Tagged: Property Management, property management software, real estate, IREM, institute of real estate management, marketing, law, property manager, Buildium, BOMA, finance, online property management software, Real Estate Manager, Property Management career, Building Owners and Managers Association International | Permalink
Posted by Buildium
