To help prepare you for the ins and outs of this career field, here are a few things apartment property managers regularly have going on.<\/p>\n
MARKETING<\/strong><\/h4>\nMarketing your complex is one of your most important jobs. Even if you live in an area where it\u2019s relatively easy to keep a low vacancy rate, you still need to stay on top of marketing. Indeed, you want a large pool of potential tenants applying to live at your property anytime. It\u2019s much easier to find great quality tenants from an extensive collection than a very small one, and attracting quality tenants is the name of the game.<\/p>\n
Even though the internet opens up great marketing opportunities, don\u2019t shy away from offline methods. For example, you can build relationships with local businesses to help gain referrals. In addition, you can look into billboards, putting a decal on your car, or having events open to the public.<\/p>\n
![\"apartment](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2023\/01\/08003407\/campaign-creators-yktK2qaiVHI-unsplash.jpg\")
<\/p>\n
TENANT SCREENING<\/strong><\/h4>\nAs referenced earlier, you want the highest quality tenants coming to live in your apartments. Even though it\u2019s difficult to judge how someone will treat the property, there are a few good indicators to look into:<\/p>\n
\n- Credit history:<\/strong>\u00a0Do they pay bills on time?<\/li>\n
- Previous landlords:<\/strong>\u00a0Were they happy the tenant left, or did they love how easy they were to work with?<\/li>\n
- Employment:<\/strong>\u00a0Do they have a regular paycheck to sustain the monthly rent?<\/li>\n
- Vehicle:<\/strong>\u00a0Do they maintain their car, or is it falling apart and trashed? They may treat your apartment the same way!<\/li>\n
- Background check:<\/strong>\u00a0Do they have a criminal record or previous brushes with the law?<\/li>\n<\/ul>\n
Even though it takes time to screen tenants, it\u2019s much easier to turn away potential tenants from the beginning than to kick them out and deal with repairs\/community consequences later.<\/p>\n
MAINTENANCE ISSUES\u00a0<\/strong><\/h4>\nLandlords love apartment complexes because it allows them to use the power of scale. Versus just renting out a few single-family homes, they can use the same amount of land to house a few hundred tenants!<\/p>\n
Having many units also multiplies the risk of maintenance issues. At any one time, you can expect\u00a0something\u00a0<\/em>to need work around the complex. For example, one person\u2019s dishwasher can break because a Tupperware fell and melted onto the heating element. A roof gets damaged during a storm and is now leaking. An angry tenant kicks a hole in the wall. That little dog (that met your weight limit for pets) leaves urine stains all over the carpet.<\/p>\nBecause there is always so much work to be done, most large complexes employ their own maintenance staff. Even though they can\u2019t do everything, having a friendly, competent maintenance staff will help take a huge load off your shoulders!<\/p>\n
![\"apartment](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2018\/12\/26185207\/Capture.jpg\")
<\/p>\n
FINANCES<\/strong><\/h4>\nEven though you don\u2019t need to be an accountant, having some bookkeeping knowledge and experience will help. Good property managers can read numbers and know what\u2019s going on. That allows them to advise the landlord on potential actions to help keep the business in the black.<\/p>\n
Here are a few metrics you should track:<\/p>\n
\n- Maintenance expenses (materials and labor)<\/li>\n
- Marketing expenses (advertising budget, time spent, etc.)<\/li>\n
- Turnover rate<\/li>\n
- Number of new tenants walking in the door and how they found you<\/li>\n
- Rent payments (on-time, late, etc.)<\/li>\n
- Cost trends (this year vs. the last several years)<\/li>\n<\/ul>\n
In any business, numbers tell a story. To understand the story being told, apartment property managers should get comfortable with spreadsheets like Microsoft Excel. Reliable property management software<\/strong><\/a> will also help track everything we\u2019ve discussed, including service requests and maintenance schedules.<\/p>\nThe Challenges of Apartment Property Management<\/strong><\/h3>\nApartment management is so unlike managing a single-family home. Property management for apartment complexes tends to bring unique challenges for several reasons<\/a>.<\/p>\nMULTIPLE TENANTS<\/strong><\/h4>\nEven if you have a small complex, you will deal with at least two tenants or upwards of a dozen or more. That challenges your management skills because the more people you have living in smaller spaces, the more likely you will get complaints.<\/p>\n
For example, almost any apartment complex that isn\u2019t built out of solid concrete will have downstairs neighbors complain about their upstairs neighbors. All it takes is one person with a heavy foot, a dog constantly jumping around, or a few rowdy kids to thud on the ceiling all day long.<\/p>\n
![\"\"](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2022\/12\/14052659\/pet-friendly.jpg\")
<\/p>\n
Another example is messiness. You may have 15 clean tenants in a building, but the 16th makes a huge mess. They leave stuff out in the walkways, garbage on the sidewalk, or don\u2019t clean up after their dog, all of which will elicit complaints from their neighbors.<\/p>\n
When that happens, you must lay down the law because you\u2019re in charge.<\/p>\n
YOU ARE THE HOA<\/strong><\/h4>\nHomeowners associations tend to get a bad rap sometimes. They\u2019re seen as too strict and overbearing, forcing homeowners to do certain things they may not want to.<\/p>\n
But guess what\u2014apartment management essentially means YOU are the HOA. So when someone is causing a mess, being too loud, or just not following the rules in general, you\u2019re the bad guy! And you\u2019re the authority who is expected to rectify unpleasant situations.<\/p>\n
There is a good side to this, though. You get to screen the tenants as they come in, whereas an HOA can\u2019t do that. Plus, you control how the complex\u2019s rules are set up, and you can easily display them on a website.<\/p>\n
RENT COLLECTION<\/strong><\/h4>\nWhen working with a series of single-family homes, physically going to the tenants to collect rent is a pain. You may be lucky with your tenants paying on time, but that\u2019s rarely the case.<\/p>\n
With apartment management, you can easily visit all of your unpaying tenants within an hour and do your collection. As part of your lease agreement, you can set a particular hour and day of the month for all unpaid rent to be collected.<\/p>\n
Either way, an online system<\/strong><\/a> is the best method to collect rent for apartments. If you manually process those checks every month, you\u2019re adding unnecessary time and effort.<\/p>\nREPAIRS<\/strong><\/h4>\nIf your apartment complex has even four tenants, that\u2019s four times the maintenance you need to attend to compared to just one tenant! Appliances break down, leaks occur, bugs get into the building, old tenants move out, and new ones come in.<\/p>\n
Because a complex has more regular maintenance than a single-family home, you\u2019ll want an excellent way to track your maintenance projects. Something as simple as an Excel spreadsheet can work, but you definitely want to consider a cloud-based application<\/strong><\/a> instead. That way, you or your partners can access maintenance issues from anywhere.<\/p>\n![\"\"](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2023\/01\/09061752\/rentpost.jpg\")
<\/p>\n
LOCAL LAWS AND REGULATIONS<\/strong><\/h4>\nRenting out a single-family home has different legal guidelines than renting out apartments. If you aren\u2019t familiar with the local requirements, consider talking to a lawyer or looking through your state and city\u2019s laws regarding multifamily housing.<\/p>\n
Apartment Management Companies<\/strong><\/h3>\nBeing a landlord is tough enough, but if you\u2019re taking care of everything in your apartment rental business, you may add more stress than you really need. For this reason, looking for an apartment property management company<\/a> to help take the load off your shoulders is an excellent idea.<\/p>\nFor those on the hunt, I have good news and bad news. The good news is there are a lot of great, reputable companies out there that will gladly manage your apartments for you. The bad news is that it can be challenging to select the right one. There are several factors to consider, from cost and the services provided to experience.<\/p>\n
Here are a few tips to help you find the best company for you.<\/p>\n
Comparing apples to apples<\/strong><\/h5>\nThe first thing to remember is to make sure you\u2019re not comparing apples to oranges. Because there are so many complexities in this industry, this is an easy trap to fall into if you don\u2019t pay close attention to the contracts and proposals.<\/p>\n
For example, one company may offer a much lower management fee than its main competitor, but it\u2019ll likely make up for that cost somewhere else. On the other hand, maybe their leasing fees are higher. Or it could be they\u2019re new to your market and still getting a feel for the area.<\/p>\n
While you probably won\u2019t be able to line up everything, weigh the pros and cons as you examine each company\u2019s strengths and weaknesses.<\/p>\n
Experience is everything<\/strong><\/h5>\nLet\u2019s face it\u2014this isn\u2019t the most innovative industry in the world. So while it\u2019s nice to see a few young faces on a team of property managers, the main thing you should look for is experience.<\/p>\n
\n- Experience and knowledge of your local area, including its laws<\/li>\n
- An extensive background in managing apartments specifically (not detached single-family homes)<\/li>\n
- A history with their company, so they understand its culture and won\u2019t leave<\/li>\n
- The ability to build rapport and relationships with tenants (because they\u2019ve done it hundreds of times)<\/li>\n<\/ul>\n
That does\u00a0not\u00a0<\/em>mean you want someone who doesn\u2019t use their brain. On the contrary, when a new type of situation arises, such as an emergency in the complex, you want someone flexible enough to deal with it well.<\/p>\nBut in general, you\u2019re looking for a team that knows the business like the back of its hand!<\/p>\n
![\"\"](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2017\/08\/02024105\/three-office-men-estimating-mock-up-model-future-terraced-house-caucasian-engineer-glasses-holding-miniature-smiling-other-colleagues-suits-looking-tiny-house-with-interest_273609-5766.png\")
<\/p>\n
Management companies don’t come cheap<\/strong><\/h5>\nObviously, the cost is an essential factor in doing business. A property manager that charges<\/a> only $50 per unit may\u00a0appear\u00a0<\/em>to save you a lot of money over another that charges $150. But there\u2019s a reason why that second company can charge higher prices. It may not be easy to see at first, but that premium is likely justified somehow. Maybe it\u2019s their more extensive experience or ability to retain tenants longer than the industry average.<\/p>\n
<\/p>\nAs referenced earlier, you want the highest quality tenants coming to live in your apartments. Even though it\u2019s difficult to judge how someone will treat the property, there are a few good indicators to look into:<\/p>\n
- \n
- Credit history:<\/strong>\u00a0Do they pay bills on time?<\/li>\n
- Previous landlords:<\/strong>\u00a0Were they happy the tenant left, or did they love how easy they were to work with?<\/li>\n
- Employment:<\/strong>\u00a0Do they have a regular paycheck to sustain the monthly rent?<\/li>\n
- Vehicle:<\/strong>\u00a0Do they maintain their car, or is it falling apart and trashed? They may treat your apartment the same way!<\/li>\n
- Background check:<\/strong>\u00a0Do they have a criminal record or previous brushes with the law?<\/li>\n<\/ul>\n
Even though it takes time to screen tenants, it\u2019s much easier to turn away potential tenants from the beginning than to kick them out and deal with repairs\/community consequences later.<\/p>\n
MAINTENANCE ISSUES\u00a0<\/strong><\/h4>\n
Landlords love apartment complexes because it allows them to use the power of scale. Versus just renting out a few single-family homes, they can use the same amount of land to house a few hundred tenants!<\/p>\n
Having many units also multiplies the risk of maintenance issues. At any one time, you can expect\u00a0something\u00a0<\/em>to need work around the complex. For example, one person\u2019s dishwasher can break because a Tupperware fell and melted onto the heating element. A roof gets damaged during a storm and is now leaking. An angry tenant kicks a hole in the wall. That little dog (that met your weight limit for pets) leaves urine stains all over the carpet.<\/p>\n
Because there is always so much work to be done, most large complexes employ their own maintenance staff. Even though they can\u2019t do everything, having a friendly, competent maintenance staff will help take a huge load off your shoulders!<\/p>\n
<\/p>\nFINANCES<\/strong><\/h4>\n
Even though you don\u2019t need to be an accountant, having some bookkeeping knowledge and experience will help. Good property managers can read numbers and know what\u2019s going on. That allows them to advise the landlord on potential actions to help keep the business in the black.<\/p>\n
Here are a few metrics you should track:<\/p>\n
- \n
- Maintenance expenses (materials and labor)<\/li>\n
- Marketing expenses (advertising budget, time spent, etc.)<\/li>\n
- Turnover rate<\/li>\n
- Number of new tenants walking in the door and how they found you<\/li>\n
- Rent payments (on-time, late, etc.)<\/li>\n
- Cost trends (this year vs. the last several years)<\/li>\n<\/ul>\n
In any business, numbers tell a story. To understand the story being told, apartment property managers should get comfortable with spreadsheets like Microsoft Excel. Reliable property management software<\/strong><\/a> will also help track everything we\u2019ve discussed, including service requests and maintenance schedules.<\/p>\n
The Challenges of Apartment Property Management<\/strong><\/h3>\n
Apartment management is so unlike managing a single-family home. Property management for apartment complexes tends to bring unique challenges for several reasons<\/a>.<\/p>\n
MULTIPLE TENANTS<\/strong><\/h4>\n
Even if you have a small complex, you will deal with at least two tenants or upwards of a dozen or more. That challenges your management skills because the more people you have living in smaller spaces, the more likely you will get complaints.<\/p>\n
For example, almost any apartment complex that isn\u2019t built out of solid concrete will have downstairs neighbors complain about their upstairs neighbors. All it takes is one person with a heavy foot, a dog constantly jumping around, or a few rowdy kids to thud on the ceiling all day long.<\/p>\n
<\/p>\nAnother example is messiness. You may have 15 clean tenants in a building, but the 16th makes a huge mess. They leave stuff out in the walkways, garbage on the sidewalk, or don\u2019t clean up after their dog, all of which will elicit complaints from their neighbors.<\/p>\n
When that happens, you must lay down the law because you\u2019re in charge.<\/p>\n
YOU ARE THE HOA<\/strong><\/h4>\n
Homeowners associations tend to get a bad rap sometimes. They\u2019re seen as too strict and overbearing, forcing homeowners to do certain things they may not want to.<\/p>\n
But guess what\u2014apartment management essentially means YOU are the HOA. So when someone is causing a mess, being too loud, or just not following the rules in general, you\u2019re the bad guy! And you\u2019re the authority who is expected to rectify unpleasant situations.<\/p>\n
There is a good side to this, though. You get to screen the tenants as they come in, whereas an HOA can\u2019t do that. Plus, you control how the complex\u2019s rules are set up, and you can easily display them on a website.<\/p>\n
RENT COLLECTION<\/strong><\/h4>\n
When working with a series of single-family homes, physically going to the tenants to collect rent is a pain. You may be lucky with your tenants paying on time, but that\u2019s rarely the case.<\/p>\n
With apartment management, you can easily visit all of your unpaying tenants within an hour and do your collection. As part of your lease agreement, you can set a particular hour and day of the month for all unpaid rent to be collected.<\/p>\n
Either way, an online system<\/strong><\/a> is the best method to collect rent for apartments. If you manually process those checks every month, you\u2019re adding unnecessary time and effort.<\/p>\n
REPAIRS<\/strong><\/h4>\n
If your apartment complex has even four tenants, that\u2019s four times the maintenance you need to attend to compared to just one tenant! Appliances break down, leaks occur, bugs get into the building, old tenants move out, and new ones come in.<\/p>\n
Because a complex has more regular maintenance than a single-family home, you\u2019ll want an excellent way to track your maintenance projects. Something as simple as an Excel spreadsheet can work, but you definitely want to consider a cloud-based application<\/strong><\/a> instead. That way, you or your partners can access maintenance issues from anywhere.<\/p>\n
<\/p>\nLOCAL LAWS AND REGULATIONS<\/strong><\/h4>\n
Renting out a single-family home has different legal guidelines than renting out apartments. If you aren\u2019t familiar with the local requirements, consider talking to a lawyer or looking through your state and city\u2019s laws regarding multifamily housing.<\/p>\n
Apartment Management Companies<\/strong><\/h3>\n
Being a landlord is tough enough, but if you\u2019re taking care of everything in your apartment rental business, you may add more stress than you really need. For this reason, looking for an apartment property management company<\/a> to help take the load off your shoulders is an excellent idea.<\/p>\n
For those on the hunt, I have good news and bad news. The good news is there are a lot of great, reputable companies out there that will gladly manage your apartments for you. The bad news is that it can be challenging to select the right one. There are several factors to consider, from cost and the services provided to experience.<\/p>\n
Here are a few tips to help you find the best company for you.<\/p>\n
Comparing apples to apples<\/strong><\/h5>\n
The first thing to remember is to make sure you\u2019re not comparing apples to oranges. Because there are so many complexities in this industry, this is an easy trap to fall into if you don\u2019t pay close attention to the contracts and proposals.<\/p>\n
For example, one company may offer a much lower management fee than its main competitor, but it\u2019ll likely make up for that cost somewhere else. On the other hand, maybe their leasing fees are higher. Or it could be they\u2019re new to your market and still getting a feel for the area.<\/p>\n
While you probably won\u2019t be able to line up everything, weigh the pros and cons as you examine each company\u2019s strengths and weaknesses.<\/p>\n
Experience is everything<\/strong><\/h5>\n
Let\u2019s face it\u2014this isn\u2019t the most innovative industry in the world. So while it\u2019s nice to see a few young faces on a team of property managers, the main thing you should look for is experience.<\/p>\n
- \n
- Experience and knowledge of your local area, including its laws<\/li>\n
- An extensive background in managing apartments specifically (not detached single-family homes)<\/li>\n
- A history with their company, so they understand its culture and won\u2019t leave<\/li>\n
- The ability to build rapport and relationships with tenants (because they\u2019ve done it hundreds of times)<\/li>\n<\/ul>\n
That does\u00a0not\u00a0<\/em>mean you want someone who doesn\u2019t use their brain. On the contrary, when a new type of situation arises, such as an emergency in the complex, you want someone flexible enough to deal with it well.<\/p>\n
But in general, you\u2019re looking for a team that knows the business like the back of its hand!<\/p>\n
<\/p>\nManagement companies don’t come cheap<\/strong><\/h5>\n
Obviously, the cost is an essential factor in doing business. A property manager that charges<\/a> only $50 per unit may\u00a0appear\u00a0<\/em>to save you a lot of money over another that charges $150. But there\u2019s a reason why that second company can charge higher prices. It may not be easy to see at first, but that premium is likely justified somehow. Maybe it\u2019s their more extensive experience or ability to retain tenants longer than the industry average.<\/p>\n
- Previous landlords:<\/strong>\u00a0Were they happy the tenant left, or did they love how easy they were to work with?<\/li>\n
![\"mixed](\"https:\/\/s3.amazonaws.com\/assets.resources.rentpost.com\/wp-content\/uploads\/2023\/01\/01212553\/quebec-city-canada-sep-10-old-street-night-september-10-2012-quebec-city-canada-as-capital-canadian-province-quebec-it-is-one-oldest-cities-north-america-1.jpg\")
<\/p>\n