Special offer

Professional Property Management

By
Real Estate Broker/Owner with Bean & Dunn Real Estate

Word of mouth is a great thing.  Last year we decided to add a property management division suspecting the troubled housing market would lead to more rental units and fewer sales.  So far it is paying off.  In one year we added 32 properties and have beefed up our website with an online application and work order request form.  Our philosophy is "keep them happy."  Tenants, like homeowners, want a nice place to live at a reasonable cost.  Many of the properties we took over were in poor condition and vacant.  Currently we have only two properties not rented and both are being updated.  We've only been to court once and were able to recover all past due rent.  The online work order request has made tracking work requests a lot easier.  When the request is received via email we just forward it on to the right maintenance person (plumber, handyman, HVAC, etc.) and require the work be completed within 48 hours.  If the trade cannot meet that deadline the work is reassigned.  We had a rash of air conditioning problems so it's been a process getting the tenants educated on their responsibility for changing filers and washing off the outside condenser to ensure the system is getting sufficient air to keep things cool.  We have a zero tolerance policy on payment of rent.  If not received by the 5th a late fee is added and a Five Day Notice to Quit is signed by the tenant.  Tenants know we are dead serious about asking them to leave if they do not pay their rent.  We do a lot of routine small maintenance items ourselves, sometimes at no cost to the owner.  For example, yesterday one of our renters filled out the online work order request because the outlets in the bathrooms and garage suddenly stopped working.  I stopped by on my way home and showed them how to reset the GFI plug in the garage.  I'm not sure, but I think a lot of other property management companies would have sent an electrician at a cost of $75.00 to do the same thing.  These minor maintenance problems add up over time, which is why we have ALL of the properties we have.  Owners were tired of getting "nickle and dimed" to death.  Management companies started adding 10% to maintenance bills just for making a phone call.  Trades were fixing things to boost their own profits.  The "icing on the cake" for one owner was a plumber saying the entire sewer line had caved in and would cost over $3000 to fix it.  A second opinion confirmed a rag in the drain, which was removed for a service call of $75.00 and charged to the renter.  Our goal is to minimize problems and maximize owner proceeds.  If the properties are kept in good repair the long term affect will be increased profits.  I say increased profits because units in tip top condition with great curb appeal will stay rented for the highest amount of money for the longest period of time (sounds like the sales side doesn't it.)  We continue to look for good quality homes to manage.  If anyone reading this knows of an owner who is looking for a new company to manage their properties pass on our information. 

Comments (3)

Frank Beckendorf
Beckendorf Realty Group - Abilene, TX

We just added a property management area too. Formed a corporation too, LLC! High liability area. My property manager is most honest and compassionate, and that's important.

Aug 11, 2010 02:34 AM
Susan Laxson CRS
Palm Properties - La Quinta, CA
Realtor in San Diego, CA & Naples, FL

We are also adding a property management division to our company and formed the LLC - we think it is a great way to help our clients with their real estate needs.  ~ Susan

Aug 11, 2010 02:46 AM
Richard L. Sanderson
Richard L. Sanderson Consulting - Kalama, WA
helping improve local property tax systems

Ed:

One thing that successful property management companies in the Washington DC area have done is to effectively monitor the real estate tax assessments for the properties they manage.  Simply informing the owner of the change in assessed values from year to year or over a period of time and give them some of your own insight on the current market can alert then to the need to take action and hire a property tax specialist to look at the assessment. 

Aug 11, 2010 02:57 AM