Ms. Management - Onsite Management Questions

Calculating Maintenance Hours
Residents Receiving Special Treatment
Manager Brokers "Sweetheart" Deals
Residents' Feud
Rental Increases with Fewer Complaints
Importance of Tracking Traffic
Cost of High Resident Turnover
Making Exceptions to Community Policies
Are Pet Deposits Required for All Pets?
Parking Shortage
Emergency Line Abuse
Determining Pet Policies
Former Residents Want Old Rental Rate Upon Move-in
Re-painting
Unauthorized Pet
Hiring a Resident as Part of the Management Team
Turning a Property Around
Allowing Pets
Different Community Policies for Residents & Management
Owner Wants to Bar Pets
Getting Residents to Respect Your Time Off
Resident is a Nuisance
Residents Violate Community Policy
Determining Occupancy
Improving Service Procedures
High Resident Turnover
Skateboarders
Raising the Rent
How Often Should a Model be Redecorated?
The Importance of Exit Interviews
Improving Closing Ratio
Redecorating the Model
Credit Reports

Q: Is there a rule of thumb for figuring out how many maintenance man-hours you should schedule for a property? I currently schedule 14 hours per week per unit. (One maintenance person, 40 hours per week divided by 288 units.) He doesn't paint, but he does clean carpets. We're having a problem with him getting behind. Am I being unreasonable to expect so much?
A: Allow me to come at this from a slightly different angle. For a long time, the rule of thumb was one full-time service technician per 100 apartment homes. In the past couple years, as the emphasis is increasingly placed on customer service, that figure has been revised to one full-time service technician per 75-80 apartment homes. Ask your service technician to carefully track the types of activities he or she is performing and exactly how long each task takes. This will help you pinpoint any problem areas.

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Q: I recently found out a few of our residents have been getting special treatment and favors from one of our service technicians, while others have had to wait days and even weeks before having a service request taken care of. Naturally, there have been complaints about unfairness. How can this situation be made right?
A: Management should be handling the service requests in the order that they are received. The only factor that should delay the completion of a service request should be an emergency or a part on order. Favors aren't fair. Service requests need to be handled properly and fairly. Management needs to have written practices pertaining to service requests or they could end up in violation of Fair Housing.

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Q: One of our managers has been brokering "sweetheart" deals with some vendors with whom he also has personal connections. This is causing problems because the cost of repairs is higher than it should be in some cases. Help!
A: He obviously lacks integrity. The owner pays his salary. That means acting in the owner's best interest, not to mention the interests of the residents. This seems to be a win-win situation for the supplier and the manager: not the owner. The owner or management company needs to be apprised of these business practices A.S.A.P.

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Q: Two of our residents have an on-going feud with each other and we have logged in several complaints about them from each other. Both are otherwise good residents who pay rent on time and don't disturb anyone else. This really has to stop. What should we do?
A: Begin with offering to transfer one of the residents within the community at no cost. It is still more cost effective than re-renting to a new resident. If that doesn't work you will need to act as a mediator. Try to see what would be necessary for each resident to co-exist peacefully. If all else fails they will both have to move, because they could start offending other residents, which could cause more resident turnover. When dealing with both residents use your lease and community policies as guidelines.

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5 Q: I manage a mid-sized apartment community. The owner has asked me to raise the rents on all the apartment homes beginning next month. Last time we raised rents there were a lot of complaints and a couple of residents left. What's the best way to get our residents to swallow a rent increase?
A: The first thing I would do is to check out the competition surrounding your community and see how their rental rates compare. Then compare the features you with your competition. Then tie dollar amounts to the features, for example washer-dryer $50, carport $25, attached garage $100. You should check your market comps regularly. Surveying your residents-customers on a regular basis will also let you know how they feel you're doing which is helpful anytime, but especially during a rental increase. You can find customer care cards for this purpose at www.itpartnersonline.com. Don't make excuses or apologies for a rental increase. Last, show what it costs to move. Factor in costs such as utility changes hiring movers, truck rentals, not to mention stress. The average cost to move is between $800 to $1600, which is usually more expensive that the rental increase.

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Q: We constantly teach our leasing team the importance of tracking their traffic. How do you get across to your leasing team to always ask, "How did you hear of our property today?"
A: You are correct. Tracking is extremely important. Don't give up! Be sure your staff understands that your community/company budgets thousands of dollars to attract quality customers. If they don't ask the question to each and every prospect, you can't possibly know what works and what doesn't. Once you've determined and eliminated less effective advertising methods, those dollars might be able to be budgeted towards other categories, say employee incentives! It may seem hokey, but perhaps friendly competition between members of your leasing team might help them remember to ask.

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Q: One of our communities has a fairly high resident turnover rate. The manager is not concerned, because he says that we have new residents in almost as soon as the old residents are out and that we generate revenue from the lease-up anyway that makes up for the turnover rate. Is that true?
A: No, it isn't true, because to turnover an apartment means there will be certain costs involved, e.g. cleaning, carpet shampooing, etc. Even if the apartment is only vacant for a few days, those are days that it is not generating income, not to mention the on-going cost of marketing to new residents. The only way constant resident turnover might make good financial sense is if you have a significant rental increase each time you move a new resident into an apartment home. However, your rental increase will be decided by your vacancy factor and what the market will bear.

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Q: A couple of residents threw a loud party last week. This was the third noise violation in six months. According to the lease, I'm supposed to give them notice to move. They're nice people and I really like them. Can't I make an exception just this once?
A: What happens when we make exceptions to policies? We have just changed the community's policy. The issue is not whether your residents are nice; it's about the guidelines in place for all of your residents. Do you think its fair for the other residents to be inconvenienced by their noise? They rented an apartment with the understanding that the lease governs everyone equally at your community. The reason to have a lease is so that all parties know what is expected of them. What is expected of you, as the manager is to carry out these policies. Favors aren't fair. Your treatment all of your residents should be consistent. Continue with such treatment, so that no one feels that they have been discriminated against. Consistency and continuity is the key.

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Q: Are pet deposits required for all pets? (I.e. are the rules different for fish, birds, snakes, etc. than they are for cats and dogs?)
A: There are some management companies that state that any fur-bearing animal will require a pet deposit. That excludes birds, snakes, fish, turtles, etc. Most companies will take deposits on cats and dogs only. Sometimes they will specify what types of pets are allowed and a deposit will be required.

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Q: Recently, we've had a lot of parking problems at our community and residents are complaining because many of them have to park out on the street. What's a good way to alleviate the problem?
A: First I would find out who owns all those extra vehicles parked in the lot. Ask you residents which vehicles are theirs and then get the license plate numbers. Issue numbered parking stickers. If you already use them make sure that every resident has one and you know what the numbers are. Warn residents that any unauthorized vehicles or vehicles that are parked in the wrong spot will be towed. It's also a good idea to post signs so guests are aware of the policy. Then enforce it. If there is still a shortage, you might consider renting out spaces in a nearby parking lot or garage.

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Q: Since we have opened up an emergency line for residents to call on weekends, our company has been inundated by calls from residents with "personal emergencies" that can't wait until Monday. Many of these "emergencies" are really trivial, but the residents and some of the staff don't seem to understand what constitutes an emergency. What is the best way to handle these problems?
A: Your lease as well as community policies should state what constitutes an emergency. Be explicit. No water, heat, leaks from the ceiling, sparks, etc. Make sure you go over policies and procedures when your residents move in. Sometimes what we deem is trivial, the resident feels is crucial. It can become a customer service opportunity that needs to be handled delicately and carefully. Going above and beyond what's expected helps minimize resident turnover.

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Q: How many pets would normally be allowed in a two-or three-bedroom home? I'm trying to figure out a pet policy for our community and any help you could give me would be greatly appreciated. Also, how much does standard pet rent run?
A: Pet policies are not usually determined by the floor plan, but rather by community or management company policies. The majority of communities take one pet per apartment home. I have noticed in the past couple of years that more communities are taking two pets, especially in high-end communities. Pet rent can vary between $15-$25 per pet per month.

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Q: We have some former residents interested in moving back into the community. They were long-term residents and the problem is that they expect to have they same low rate that they had when they moved out instead of the rate we give to all new renters. How should we resolve this?
A: Explain that you are delighted to have them back as residents. Since they have been gone, rental rates have risen across the board. They are entering a new lease agreement, which makes them a new resident. You cannot give them any special rates because you would be discriminating against your other residents, which could create legal repercussions for you. Again, tell them that you are excited to have them back, but that this is a new contract and must be treated as such. If the truth be known, they probably already know this. They may just be trying to get a special deal that would have possibly happened if they'd renewed their old lease instead of moving out.

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Q: About how often should repainting be done? What if there's a resident in the unit?
A: It really varies. Some companies paint on an as needed basis. Others touch-up on an as needed basis every time a new resident moves in. Some apartment communities use painting for lease renewals and some paint every 1 to 2 years. We are all over the board on this one.

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Q: What should I do if I suspect a resident has an unauthorized pet in his apartment? We do allow pets, if the management company has approved them.
A: You need to address this immediately. Let the resident know that it has been brought to your attention that there appears to be a pet in his apartment home. Explain if that is correct, they will need to have their pet in accordance with the pet policies. Let them know about any pet costs such as a pet deposit and pet rent, and what the pet restrictions are such as height, weight or breed. If this isn't handled ASAP, he is in violation of his lease, because when he originally moved into his home he had no pets.

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Q: Recently, one of our managers had to quit. A long-time resident, who had experience in another community, wants to take over the job. She is very well known and well liked in the community. I'm a little worried about hiring her however; because she is so familiar/friendly with the other residents and this might cause problems. Am I right to be concerned about this? If it weren't for that I'd love to hire her.
A: You are right in your assessment that a manager should be a courtesy professional. There is a fine line between professional and personal. It is usually company policy that members of the on-site team do not fraternize with residents, simply because once a manager does he or she may be put in a position to waive a late fee, prioritize service requests, etc. This can be misconstrued by the residents as discriminatory practices. Tell the resident that she will have to apply for the position and meet the company's criteria for hiring. If she is the most qualified candidate, maybe you could change her out with another manager. This would allow her to work for the company at a different community and still keep her residence. This is a tough decision. Good luck.

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Q: We just received an offer to manage a property that already has a really bad reputation. It's not in particularly good condition and many of the residents are not used to being held to the rental contract other than paying their rent. The catch is that the owner wants us to turn it around as quickly as possible. Any suggestions?
A: Nothing like a good change to get the creative juices flowing. To begin with, a letter should go out to all the residents stating that the community is under new management. Then call a town meeting. Explain the policies and procedures that the on-site team. Will be implementing so that their lifestyle will improve. State what the residents can expect from management and what management expects from the residents. Once you start implementing community policies and holding residents accountable, word will spread like wildfire. Another good communication tool would be to start a newsletter.

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Q: I've decided to allow the residents at the property I own keep pets (previously there was a strict no pet policy). Naturally, I want to be careful about what kinds of pets I allow. What can I do to help protect my property from pet damage and still allow the residents to have pets?
A: Determine what your pet policies will be and be specific. Make sure that your pet deposit will cover any damages or shampooing, etc. Determine what is refundable and what is non-refundable Determine whether you want to charge an additional fee such as pet rent. It is a monthly amount on top of the rent that is usually about $15-20 a month. Your pet policy should spell out what is considered a pet. Will you accept fur or non-fur bearing animals? Are there any height or weight restrictions? If you accept cats do they have to be de-clawed and neutered? Taking pets may allow you to charger higher rental rates and minimize vacancies. Examine all the factors. There are trade-offs. In today's market there are many pet owners. They will pay more to keep their pet. We have a 95-lb chocolate lab. Although my husband won't openly admit it, we would pay whatever it cost to keep Rody, because he's part of the family.

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Q: One of our owners allows on-site managers to keep pets, even though none of the residents are allowed to have pets. Couldn't this cause problems later on?
A: Yes, this can cause a problem with the residents because the manager has to implement the community policies. It is difficult to do so if the manager doesn't have to abide by the same policies. Perhaps the manager has pets because when they were hired the community took pets.

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Q: The apartment community I manage was just bought by a new owner. The new owner wants to make some changes to the lease including barring pets. Several of the current residents already have pets and have signed long-term leases. How will this affect them?
A: The owner has the right to make changes to the lease and community policies. This includes not allowing new residents to have pets. Existing residents who have pets are allowed to keep their pets because the pets were there before the new policies went into effect. The owner has the option of not renewing their leases, however.

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Q: I'm an on-site manager. The residents at my community know that they can reach me if there's a situation that can't wait until normal office hours. The problem is that many of residents have a tendency to disturb my free time with minor problems that really could wait until the next day. What's the best way to get the residents to respect my time off?
A: Prepare a letter from management concerning what constitutes an emergency and how it should be handled. Also, explain in detail the office hours, the number of the answering service and after hours phone numbers. Clearly communicate community policies if they are not already in place. Thank your residents for going through the proper channels. Tell them how much you appreciate them allowing you to relax and enjoy your much-needed time off. Let them know your door is always open during office hours and if there is a real emergency, a team member will contact the resident immediately. Thank them for their cooperation.

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Q: We have a resident that calls about once a day with some minor problem that she could really handle herself. This usually ties up the phone for at least ten-to 15-minutes. My staff hates dealing with her and has a tendency to be "out" when she calls. How should I handle this?
A: Let's not forget that your residents are paying customers. Even though the problems are minor, they are inconveniences and why should she have to deal with them on her own. That's why she lives in an apartment, so that she doesn't have to deal with the problem on her own. Remember, customer service goes a long way. Each of our residents is different and has different needs. Be kind and helpful. Your team gets paid to solve problems and should act accordingly. Common courtesy is always in good taste.

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Q: Several of my residents have been responsible for violating one of our community policies. It's more of a nuisance than anything else. The problem is that even though I know it's going on I haven't been able to pinpoint any of the culprits. Any suggestions for putting a stop to this?
A: Do you have a community newsletter? This would allow you to communicate the violation of community policies. If the violation continues, you will have no recourse except to take legal action. Call a town meeting and bring the situation to their attention. Ask the resident's help so that everyone can co-exist peacefully. You could also hire a courtesy attendant to work with the community each night. He/she could be your eyes and ears. You could also put together a letter stating the problem and what management's intentions are if the behavior continues and distribute it to all your residents.

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Q: What determines the maximum number of residents that should be allowed in an apartment?
A: The community's occupancy standards determine the maximum number of residents allowed in an apartment. Remember that children are residents too and are counted as occupants.

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Q: I just became the manager over a 120-unit property and I'd like to improve how our service requests are handled. Do you have any advice on procedures and how service requests should be handled?
A: It's great that you want to improve your service! Service requests should be handled in the order that they were received by the date and time; unless a part has to be ordered or it's an emergency situation. If your resident's believe you attend to service requests according to personal preference instead of a set procedure they can become offended as a customer or worse believe you are discriminating against them.

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Q: Our community has been experiencing a lot of resident turnover. Help!
A: Are you keeping track of your annual turnover rate? The national average is 60 percent. Are you doing exit interviews when your residents move-out to track why they're really moving? It can be as simple as a survey card asking specific questions. Overtime exit interviews can provide a picture of how you're doing. You really need to survey your customers regularly throughout their residency. Get your service technicians involved in finding out what residents think about management, the community, etc.

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Q: A few days ago I caught some kids skateboarding in the community I manage. I pointed out that our community has clearly posted rules prohibiting skateboarding and asked them to leave. They called me a few swear words and left. Since them I have caught them trying to sneak onto the property. They are not residents or guests. Is there anything else I can do about this?
A: The next time the little darlings on skateboards come tearing through your community; call the police. Since they are not residents or guests, they are trespassing and the police need to handle the situation.

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Q: What should I take into consideration when increasing the rent? Also, how much notice should I give residents that their rent is going up?
A: The first thing is to check your competition and compare your rental rates. Make sure to check each feature and its dollar value - this will help you compare apples to apples. Keep in mind what the market will bear. Give your residents at least 30 days notice before raising the rent.

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Q: About how often should we redecorate our model? I overheard some prospective residents commenting about how old it looked. We're a fairly high-end community and need to maintain our reputation.
A: As a rule of thumb, you should redecorate you model every two to three years. You might consider using rented furniture, because it's easier to replace damaged items and you're not stuck with furniture when you redecorate.

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Q: I recently started working for a new apartment community. At my old community we always tried to conduct exit interviews when a customer left. My new company rarely does exit interviews. How important are they?
A: Exit interviews are an important part of customer service. Depending on the level of trust, an exit interview can give management a heads-up on how residents feel about the community and whether their needs are being met. This information gives valuable insight into problems and what can be done to solve them In interviewing over 1,000 residents who were leaving one community in favor of another, 70 percent indicated that they were leaving because of management. There was something the existing management could have done differently if they had known. We already know 80 percent of what residents tell us. It's the other 20 percent we don't know about that should concern us and we'll never know it unless we ask our customers. Who better to tell us how to improve our customer service than our customers?

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Q: The corporate office recently evaluated our onsite team. Overall we received high marks, but of course there is always room for improvement. Our supervisor has outlined specific goals including an increasing in our closing ratio. What is an acceptable industry standard? Can you give us any tips or suggestions to help us achieve our goals.
A: Great job! It is wonderful that your team is so motivated to work together. In my experience working with management companies across the country, most find 35 to 40 percent an acceptable range for a closing ratio. When making your presentation, find out which communities your customer has already visited. What did they like? What didn't they like? Describe the benefits of the community. Typically the number one mistake leasing professionals make in their presentation is failing to ask for a sale. I don't mean one big pitch line at the end. Little questions all along the way such as, 'Do you belong to a gym?' 'You will enjoy the convenience of working out right at home.' 'Don't you love this bright room?' 'How will your furniture look in this room?' Look at it this way, when the prospective resident came in, you had a vacancy. Worst-case scenario; they leave and you still have a vacancy. So ask. Ask again. Ask a different way. It never hurts to ask.

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Q: Is there a rule of thumb as to what you should do and how much you should spend when doing a makeover of the property's show apartment? (The furnished apartment you show to prospective residents). How often should these makeovers take place? What is opinion on leasing the furnishings vs. buying them? How important is a show apartment?
A: Your market conditions will dictate when you should redecorate your model. I don't really have a rule of thumb for the cost. It depends on a number of different factors such as: are you repositioning your community or changing your resident profile or simply raising rents. Redecorating should happen every three to five years because designs change and the furniture you currently have may become broken. This is also a good reason to lease your furniture. It is extremely important to have a model in a high-end community. If you are on a B or C community, with an occupancy rate of 96 percent or higher, it might be more cost-effective to generate revenue off of the vacant apartment home instead of off the model.

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Q: I need to get credit reports done for new tenants. I just took over a twelve-unit apartment community. Can you tell me what companies do this? Thank you.
A: It's a great idea to use an outside source to do your credit reports. Check with your local apartment association. They may have members who do credit reporting in your area. You can also call other apartment communities in your surrounding area to see who they use. I would also suggest you check with the Better Business Bureau to see who they recommend.

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