Ms. Management - The Multihousing Industry Questions

Repositioning
Industry Language
Terms for Residents
Starting a Company
Moonlighting
Transferring to Nevada
Tracking Rental Inquiries
Compensation for Onsite Management
Hands-on Owner
Customer Service for Affordable Housing
High Resident Turnover
Managing a Mobile Home Park
Running Credit Reports
Owner Makes Unreasonable Demands

Q: I'm relatively new to the apartment industry. I overheard a manager saying that they are repositioning my community. What does repositioning mean?
A: It usually means the owner is going to put some cash into the community for renovation. Sometimes it means upgrading the interiors of the apartments to make them more modern. It can also mean exterior changes: paint, landscaping, signage or all of the above. Repositioning image is to attract a different resident profile with a hefty increase in the monthly rental rates. I've seen many renovated communities across the country and they are beautiful.

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Q: I just started my first job in the multi-housing world. The key to success seems to be a big smile and a positive attitude. I am confused however, by the secret language the other members of my team seem to use. Maybe you can help. What on earth are NOI and ROI? Who are NAA and IREM? What about CPM, CAM, ARM and NALP?
A: You are right. I can see how a newcomer to our industry can be easily confused. Allow me to translate: NOI = Net Operating Income. It is the collected rent minus the operating expenses (i.e., property taxes, insurance, maintenance etc.) The effect on NOI is the basis for most property management decisions. ROI = Return On Investment. It's very important to the ownership of an apartment community looking for an investment (%) yield on the capital they have put up to purchase and/or improve the property.) NAA = National Apartment Association. It's a national organization promoting industry education and legislative awareness/advocacy with state and local affiliates across the country. IREM = Institute of Real Estate Management. This is another national organization promoting industry education. CPM = Certified Property Manager. This is a very extensive education program offered by the Institute of Real Estate Management (IREM) resulting in this professional designation. (Typically you see it like this: Julie Jones CPM). ARM = Accredited Resident Manager. This is another designation from IREM geared to the on-site manager who is serious about a career in the industry. CAM = Certified Apartment Manager. A similar designation offered for onsite managers by the NAA. NALP = National Apartment Leasing Professional. This is a designation developed by the NAA for the leasing specialist who is serious about a career in the industry.

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Q: Do you have another word to describe residents of an apartment building other than "resident" or "customer?"
A: The only other word that comes to my mind is guest and I don't like the word because it implies that it's a temporary situation and it's not their home. (A guest in someone else's home). There's no pride of ownership when residents are referred to as guests. Customer is an excellent term. The word customer is a reminder to render customer care. Eventually, the industry will probably come up with other terms, but for now these are the only ones that come to mind.

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Q: I own and manage several small properties from my home. I would like to expand and manage properties for others as well and eventually run my own company. Any suggestions?
A: You can contact real estate offices to see if they're selling homes to anyone who might need a property manager. You can also call corporations. The human services or travel departments can tell you if they are relocating employees out of state. Relocation companies are another source because they may have people who are moving out of your area or overseas that will need a property manager to manage their property while they are gone.

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Q: I do quite a bit of work as an independent agent for a real estate company. I want to branch out by working for a property management company part-time. I don't want to give up selling homes and would like to "moonlight" after hours. Will this cause a problem?
A: Most companies, but not all, require that their employees do not hold outside jobs because it could create a conflict of interest. I'm not sure that you'd be able to work for a management company. Perhaps you can work on days off or split your time equally between the two. Hopefully, it can work out if one job doesn't interfere with the other. Be up front with the management company when you interview. Also, during the interview, be prepared to answer questions about which you would choose if there were a scheduling conflict.

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Q: I am looking to get back into property management in the capacity of an assistant property manager. I have two years experience for a smaller community several years ago. I want to relocate to Reno, Nevada. How do I connect with management companies in that area? I am an excellent prospective employee.
A: The first thing that I would suggest is that you contact the Northern Nevada Apartment Association. They can be reached at calling (775) 322-6622 or faxing (755) 322-9860. Ask for Shellie Neeser-Brown, the association executive, she should be able to identify management companies that you might contact. Tell her that you contacted Ms. Management and that I told you to talk to her because you're thinking about relocating and want information on some of the membership. I would also visit www.aprtmentsforrent.com. These are two good resources. Feel free to contact me if I can be of any further help.

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Q: How important is it to track rental inquiries?
A: It is extremely important to track rental inquiries. If you don't keep a record of your phone calls as well as your walk-in traffic, you won't know what forms of advertising are working. Tracking will allow you to so what ads work best for your community. I also recommend that you keep a scrapbook of all your advertising so the entire on-site team knows what message you are putting out to the general public. We have spent thousands of dollars annually to generate qualified traffic. Tracking lets you see what really works.

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Q: I have been a resident manager for 1-_ years in an upscale 36-unit building. I was trained by a former manager before his departure. I have increased the monthly income from $29,000 to $35,00 a month. The building looks 100 percent better than when I took it over. I am well liked by the tenants and property supervisor, but recently had my pay cut from $500 to $300 per month by the head of the management company, because I changed from a $1,050 unit to a $1,200 unit. Please tell me how much of a resident manager's pay can be deducted as housing. I barely made it on $500 a month let alone $300. Thank you.
A: I couldn't begin to tell you how much of a manager's pay can be deducted as housing. It will all depend on what compensation package you have worked out with your management company. The only thing I can tell you is to sit down with your supervisor and determine exactly what your compensation for your responsibilities is and the method they have chosen within your state's guidelines. When you moved into a more expensive apartment, it created a $150 difference; you need to find out why they're taking $200 instead of $150. Again I'm flying blind on this because I don't know what your compensation guidelines are. Be sure to emphasize the positive results your employment is bringing to the community.

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Q: Help! We have a very "hands-on" owner who insists on being involved in the day-to-day operations of our three different communities. The problem is that he is making lists of what the maintenance should do, in the order he thinks it should be done and with unreasonable expectations. He is new to our business. We have a maintenance supervisor with 11 years in the industry and our apartment manager is certified and very capable. I'm afraid he's going to run them off with his constant jerking them around. How can I convince him that you can't put order to his business like he expects to and priorities sometimes change daily? I would really appreciate your help.
A: Obviously, someone who is new to the business does not understand a day in the life of the onsite team. What I would recommend is to have the manager invite the new owner to spend a week working onsite to give him a feel for the daily operations. He can spend part of the time in the office and part of the time with the service team. This will provide the hands-on experience necessary for him to understand the industry. He will quickly learn that the resident many times dictates how the priorities are handled. Show him how everything comes back to the resident and how it affects his ROI (return on investment). Happy resident minimize turnover, which equals $$ for the owner. This should pull him into the loop and bridge the communication gap. This is something he needs to see first hand. Show him - don't tell him.

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Q: I've worked for 13 years in conventional housing. Recently my company has started handling affordable housing. Sometimes my staff can be rude to these customers. I'm trying to get them to be more customer service oriented, but they just don't get it. Help!
A: Whether you are in conventional or affordable housing, a customer is still a customer and deserves the same common courtesy and respect given to any resident. The kind of customer does not dictate the kind of customer service you deliver. Remember you are a professional.

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Q: We are having a lot of resident turnover. Help!
A: Have you tracked to see what your annual turnover rate is? The national average is 60 percent. Are you doing exit interviews when your residents move out to determine why they are really moving? It can be as simple as a survey card that asks simple questions. You really need to survey your customers regularly throughout their lease term. Get your service technicians involved in finding out what your residents think and feel about management, the community, the competition, etc.

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Q: My husband and I are managing a mobile home park for my father-in-law. We both work full-time jobs, collect rents, mow a total of eight acres, and deal with all the maintenance schedule, and last but not least, all of the resident complaints. We've tried to tell our dad how time-consuming dealing with all of this is. He thinks you just put an ad in the paper, show it, rent it and that should be it. How can I let him see the whole picture? Help!
A: Maybe you should have your father-in-law spend a week running the mobile home park. That should put it all into perspective. Show him what it would cost to outsource the work. Ask a property management company that specializes in mobile home parks to give you a written bid. Last but not least, your residents are the customers who pay for mobile home spaces and the services that come with their rentals. When we lose customers, our marketing costs are driven up as well as the down time spent trying to re-rent spaces. You mow all eight acres and handle all the service requests. You need consistency when it comes to customer care or your father-in-law won't have to worry about running ads in the paper, because he'll be out of business.

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Q: I've been managing my own properties for nearly 30 years. I generally check their references myself (past rental homes, employment, personal references, etc.) however, lately because of bad experiences with a few tenants, I want to conduct more extensive background checks including getting credit reports. Can you point me in the right direction on getting started on this? Also, about how much should I charge prospective renters for running their applications?
A: These days it's hard to get all the information necessary on potential residents simply by calling the people listed on their applications. You might consider using an outside source to do your credit reports. Check with your local apartment association. They may have members that do credit reporting in your area. You can also call apartment communities or property management companies to see what services they use. I also suggest calling the Better Business Bureau to see who they recommend. The typical fee for running applications is $15-25 dollars (cash or money orders) per adult. Your fee should be enough to cover the cost of running the credit report and check references.

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Q: Help! One of the owners we manage property for is a real nuisance to our company. He's constantly making unreasonable demands and one of our team members quit because of him. We'd like to refuse to renew our contract with him, but unfortunately he's also our largest (and most profitable) client. How should we handle this?
A: Sometimes we have to evaluate our working relationship with our clients. Just because he is your biggest client, doesn't give him the right to be unreasonable or rude. I know that this is easier said than done. You need to sit down and explain to your client what makes the best sense when managing his properties. Obviously, your client hired you because you know what you are doing. Explain that it benefits his investments much more if there is a chain of command. If he notices problems when he visits his sites, the best way to handle it is to let you know so you can oversee how things are being handled. Remind him that is why he hired your company. Sometimes we need to look carefully at our business relationships. Sometimes, no matter how large a client is, it just isn't worth the cost of doing business with them, especially if they continue to generate employee turnover.

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