Tips for New Multifamily Property Managers
Being a multifamily property manager requires you to wear many different hats. You must work with the building owner or investors, trying to meet their expectations for financial growth. You must provide excellent customer service to current and potential tenants. You become a problem-solver, listening to tenant complaints or suggestions and working to find a solution that makes life better for residents. And you’re the go-between who coordinates maintenance when issues arise.
The Basics for Multifamily Property Managers
While each property is unique, there are several roles you can expect to fulfill no matter the location.
Multifamily property managers have many responsibilities, including:
· Listing and showing vacant units
· Marketing vacant units
· Collecting rent payments from tenants
· Accepting maintenance requests and coordinating with maintenance workers to fulfill requests
· Processing applications for new residents
· Inspecting vacant units for any damage
· Filing financial reports and taxes
· Tenant retention and customer service
· Ensuring compliance with all local, state, and federal laws
Of course, you will likely have other duties, but these are the most common.
5 Tips for Successful Multifamily Property Management
If you’re a new multifamily property manager, your success depends on your ability to fulfill several different functions at once. If that feels overwhelming, start by focusing on these five tips.
1. Focus on Tenant Retention
You work for property owners or investors. As such, your primary responsibility is to make money for those owners. Of course, tenants are the source of that income. Therefore, by keeping tenants satisfied, you’re meeting your objective of maximum occupancy.
Tenant retention is perhaps the most important role you play as a multifamily property manager. As such, you must represent the property before and after a tenant signs a lease. Start by developing a marketing strategy to reach potential tenants. What do prospective residents want in an apartment complex? Can you make upgrades that will align with those needs?
What concessions are you willing to offer to draw in new tenants? Once tenants sign the lease, the real work begins. Keeping your residents happy can be a challenge. However, you can increase tenant satisfaction by creating open and convenient lines of communication, responding to maintenance requests quickly, and continually creating an environment that promotes community, safety, and connection.
2. Minimize Operating Costs
Another way to increase the owners’ profits is to decrease overall operating costs. There are several ways to accomplish this aim.
First, invest in property technology like automation, AI, and other real estate technologies. There are a wide array of products that can help reduce costs. Automation tools can help manage tenant requests and answer tenant questions without having a live person sitting at a desk. Property management software can bill residents, collect payments, and send out reminders to tenants automatically. And maintenance software can help you keep track of needed repairs and schedule them quickly and seamlessly.
Second, Green Tech can help minimize overall energy costs. Eco-friendly properties aren’t just helpful for reducing your carbon footprint. They’re also a money-saving tool. For instance, automation tools can automatically adjust lighting and temperature when people aren’t in the room. And installing energy-efficient appliances in each unit can reduce overall costs for both the property and the tenants.
3. Respond to Maintenance Requests Quickly
As we mentioned above, keeping your tenants happy is vital to a thriving property management business. One of the best ways to ensure resident satisfaction is to respond to all maintenance requests quickly. Using property management software can assist in this process, allowing residents to make requests online. Property managers can then address concerns without delay.
In addition, property managers should maintain excellent communication throughout the maintenance process. If there will be a delay, ensure the tenant knows the estimated timeline. Effective communication is the key to satisfied tenants.
4. Stay Compliant
Multifamily property managers are responsible for adhering to all local, state, and national housing regulations. Violating these regulations could be costly, so it’s your responsibility to know these laws and run your business according to these guidelines. State law often requires multifamily property managers to work with a Designated Broker or Broker of Record to ensure compliance. While it is possible to hire a broker in-house, you can also choose a company like Designated Broker Solutions to help you manage properties in all states.
Maintaining detailed records is one of the most crucial roles a property manager plays. Creating thorough records helps maintain compliance with local and state laws. Many states require landlords and property managers to keep records for several years. Keep track of everything: financial dealings, tenant interactions, maintenance requests, renovation documents, and more. If you’re unsure about your state’s regulations, contact a property management professional.
Multifamily property managers have many responsibilities. But with the right tools, property management can be an enjoyable and fulfilling career.
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