Analysts anticipate by 2026, the market for property management will reach $26 billion, according to analysts. A market with this much growth attracts property managers trying to expand their businesses, take on more doors, or even real estate brokers eager to test the waters. If you too are planning to start a property management company then read this article to know the right way. 

But there are many things to think about before you start managing properties. That’s why we’ve created a thorough list of everything you must accomplish before welcoming customers and residents inside your place of business.

Here’s a complete guide on 

How to Start a Property Management Company In The Right Way

#1: SETTING UP YOUR PROPERTY MANAGEMENT COMPANY

First, you need a license, file your business name and develop a business plan to seize the opportunity.

How Should a Property Management Business Plan Be Written?

To start a property management company you should first have a plan. A business plan is a blueprint for your property management operation, including every aspect of your enterprise, from startup costs to break-even points.

According to the Small Business Administration (SBA), a business strategy includes the following:

• Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Service or Product Outline
• Marketing and Sales
• Funding Request
• Financial Projections
• Appendix

For individuals preparing their first business plan, the SBA also offers assistance with writing business plan examples.

Tip: A property management business plan will outline the types of clients you intend to target and the services you will provide.

What Licenses and Certifications Do You Need To Start A Property Management Company?

Only a few states do not require the licensing of property managers. Make sure you have a license to practice in your state before opening your business, especially considering how quickly housing regulations can change.

• Real Estate Broker’s License: A licensed real estate broker has passed an exam covering property management courses, including insurance, taxes, and contracts.
• Property Manager’s License: A property manager’s license requires coursework and an exam.

These certifications will help increase the value of your business.

National and international groups can also help you network, establish the legitimacy of your company, and develop your personnel by providing them with continuous education and property management certification. They consist of the following:

• Institute of Real Estate Management (IREM)
• National Apartment Association (NAA)
• National Association of Residential Property Managers (NARPM)
• National Association of Realtors (NAR)

 You may deconstruct licenses, certificates, and licenses using the information in Property management certifications that give you an edge.

How Should a Property Management Company be Filed?

To start a property management company you must register your company with the IRS and select a legal entity. Filing is essential for protecting your assets and separating them from your business.

Though S-Corps and C-Corps are also excellent candidates with more robust legal safeguards, most property managers set up their management companies as limited liability corporations.

You must decide whether to register as a C-corporation and receive payment as an employee or a pass-through business like an LLC, where money flows through the company directly to you.

C-corporations run the possibility of having a double taxation issue, but if you have a competent accountant who is familiar with the rules, you shouldn’t be concerned about that. Double taxation with S-corporations is impossible because the taxes are passed on to the shareholders. In place of business income, they tax the earnings as personal income.

#2: ORGANIZING YOUR FINANCES

Do you have a revenue target in mind for your first fiscal year? If not, consider coming up with one; it should be in your business plan. How much do you anticipate making? How much will you be spending? How much money should you save for unanticipated events? Your targets and ways to achieve the targets should be always on your priority list before you start a property management company. 

Keep this in mind as you start planning your company’s financial future.

Creating an Accounting Property Management System

Updating a spreadsheet is an easy way to track your owners’ properties. However, we don’t advise it. With comprehensive property management accounting tools, you can monitor spending, pay recurring payments, and keep track of rent and fees.

They can assist you in keeping track of both incoming and outgoing funds. For instance, tenants’ rent and other income sources might be considered income. Repairs and other payments to vendors for upkeep are expenses that you make.

Pro tip: Establishing the structure of your bank accounts will lay the groundwork for a disciplined accounting system. Remember, you should maintain your security deposits in a trust account that complies with the law, with a different account for the properties owned by your owners and yet another active account for your business.

The Costs Should You Anticipate

You can set realistic revenue objectives and prevent financial difficulty by keeping track of every dollar leaving your business.

Your expenses may include the following:

• Payroll and Vendor Fees: This includes the money you pay your contractors for their services and the wages you receive for yourself and your staff.
• Overhead: For brick-and-mortar businesses, this includes supplies, rent, and utilities.
• Other Service Fees: This category covers any software you use to run your business or to identify potential tenants and property owners.
• Membership Fees: Consider the cost of membership in any property management organizations you are a part of when calculating.

Setting Objectives and Predicting Revenue

Most of your income should come from management fees, which are often a portion of the rent collected. But some companies charge a set amount for basic services. Owners can choose to add extra services at a premium cost after that.

Late fines, key or lock replacement costs, finders’ fees for bringing in new tenants, markups on maintenance bills, and other minor charges will provide additional revenue.

#3: Launching Your property management company

After establishing the foundation, it’s time to start assembling the components that will power your efforts—the personnel and the tools they’ll employ.

What Organizational Structure Should Your Property Management Team Follow?

You can build up your property management company using one of two basic formats. The first is to begin by taking on all management duties as a general property manager. Inspecting, communicating with residents and owners, collecting fees, maintaining, and leasing would all fall under this category.

The alternative is to hire people to fill more specialized roles. You might designate two employees—one to manage leasing and the other with contractors or repair technicians—to manage maintenance.

The organizational structure would then be more precise, with different levels of staff reporting to you.

Creating Your Team

Your crew will be small when you first start. For the time being, it might just be you, and that’s okay. People will naturally join your team as you expand.

Full-time, part-time, and contract employees may make up your staff. The first stage is identifying the type of work required, followed by deciding whether hiring someone internally or outsourcing the work is more cost-effective.

You could think about hiring either full- or part-time workers from the following categories:

• More property managers
• Admins receptionists (if you have a physical location)
• Maintenance staff
• Sales personnel
• Payroll and accounts payable
• Leasing agents
• Showing coordinators
• Move-out coordinators
• Field managers
• Maintenance managers
• Office managers (for a brick-and-mortar location)
• Service coordinators
• Marketing specialists

A team member or company may still be desperately needed even if they are not currently employed. The following are some of the contractors that property managers use.

• Accountant (a good accountant will always be your most trusted advisor)
• Real estate lawyers (also a partner to make sure you are in compliance with the law and protected from potential liability)
• Contractors such as painters, plumbers, roofers, groundskeepers, pool cleaners, locksmiths, chimney sweeps, or HVAC specialists
• Customer service representatives
• Communication and IT employees

To protect your business in case something goes wrong, request copies of any vendor’s license, insurance certificate, and bond certificate when hiring them. Additionally, please make an effort to negotiate a lower fee for your property owners; they will be grateful for your actions on their behalf.

Pro tip: You can use software to centralize all of your processes. For instance, many online platforms offer software that enables you to manage accounting, 1099 filing, communication, and maintenance chores without hiring additional people.

Finding and Recruiting the Best Individuals for Property Management Staffing

Find the staff who can make it happen after you’ve decided on the full- and part-time positions you need. This procedure consists of two steps. It would be best if you first invited solid prospects for an interview. To do that, create clear job descriptions and use advertisements that reflect the ethos of your business (and benefits). Post your advertisement where your target audience will see it.

Organizations like the NARPM maintain job boards for property managers, and most popular job sites like Indeed and ZipRecruiter also feature relevant positions.

You’ll want to retain the right employees once you’ve found them. Additionally, you want them to promote your business and culture. One of the most effective strategies for drawing in fresh talent and enhancing your brand’s perception among consumers and property owners is to have contented personnel. After all, they are the ones who publicize you first.

Develop a strong company culture to keep your staff satisfied and grow your business. Ensure that your perks are competitive, pay attention to your customer’s demands, and encourage learning and career advancement.

Developing Bonds with Owners of Properties

Appreciating your relationships with your employees and local property owners can help you grow your business.

To do this, you must establish expectations before a property owner accepts you as a customer. Before you sign a contract, speak to potential customers to learn what they want from a property management company and to demonstrate what you can offer.

Send monthly owner-draw reports, maintain constant communication, and let them have the opportunity to ask questions and offer input. While doing so, you ought to have no trouble giving owners constructive criticism and spotting chances for new sources of income.

You want to provide your owners with the best possible customer service and living environment for your inhabitants.

What Software and Technology do you need for Property Management?

There is software available for every type of business.

From invoicing to P&Ls, QuickBooks can handle all aspects of finance for your business operating account. You may manage taxes and audits with it as well.

Google offers web-based solutions that compete with Microsoft’s Office package to create word-processing documents, spreadsheets, and even slide shows. Furthermore, Google Drive lets you store and share your documents.

You can arrange your emails with MailChimp and get opinions from locals with SurveyMonkey.

You will, without a doubt, require software tools to assist you in running your organization. A summary of your company’s operations and research into the software solutions that can help you save time, money, and resources are necessary for choosing the best ones.

Platforms for property management SaaS (software as a service) are available, particularly for property managers, which can come into use to meet your company’s unique demands without requiring you to piece together various software solutions.

For instance, you may consolidate your property accounting and receive rent payments online using some online software. You may manage your tenants’ insurance, property inspections, and maintenance requests through it as well.

Utilizing mobile-enabled technologies for property management helps keep your company flexible and accessible for those who are frequently on the go.

#4: MARKETING YOUR PROPERTY MANAGEMENT COMPANY

Your branding and marketing are a big part of getting your business to take off.

Your branding defines your company’s identity and mission. It ought to be an accurate reflection of your ideals and culture. Are you a specialized property management firm that offers a boutique service? Do you concentrate on upscale Class A properties or HOAs? Each of these elements helps to build your name.

It’s time to start promoting once you’ve established your brand. Your social media paid advertising, website, and local networking should all be used to promote your business operations, whether you do it yourself or employ a company.

How to Build Your Portfolio from Scratch

You might have one or no property in your portfolio. To develop your portfolio, you need to “feed the top of the marketing funnel” with lots of leads.

This is the time to cast a wide net, entice potential investors and property owners, and then start chatting with them about your services to pique their curiosity and move them into working with you.

But such leads aren’t made up on the spot. Please start with a multifaceted marketing plan to attract new customers. The following tools will help you accomplish that: services to gain their interest and bring them closer to signing with you.

•     Social media: Join your target demographic’s appropriate social media platforms and begin posting. Engage your audience by inviting them to leave comments, and don’t forget to address any requests, grievances, or praises. You can also remark on other people’s posts and contribute stuff. Social keeps you in people’s minds even if they lack the resources to produce new content.

•     Review Sites: To improve your reputation and attract more customers, encourage your owners or residents to leave a review on your social media handles if they are satisfied with your services.

•     Local Business Events: Network and share your knowledge to promote new business in your neighborhood and spread word of mouth, particularly among local investor groups.

•     Paid Search: Target particular search terms that prospective customers use and place a bid to have your name show up first in the search results.

•     Marketplace and matchmaking services: Hire one of these companies, like All Property Management, to handle your marketing efforts.

•     Professional Referrals: The first step in developing enduring, fruitful connections is encouraging referrals from other real estate contacts, such as brokers or investors. Pro tip: If property sales arise with your owners, you may pay brokers a cash referral fee and grant them the first right of refusal.

Would you like to learn more about how to fill your marketing funnel? 

#5: Getting your first property started

You have a new customer. Congratulations! It’s time to discuss fees and sign the contract at this point. Here are some pointers to assist you in choosing your price schedule and handling contracts.

How Should a Pricing Structure Be Set?

You must conduct a thorough study before deciding on fees. Look at the rates that other property managers are charging for equivalent services. Look at your revenue targets to evaluate if you can offer more affordable prices. It would be best to consider the properties you are taking on.

The pricing structure and inclusions in your ongoing management fee, which includes your primary service, may impact how competitive you can remain.

Although this charge typically includes managing tenants, collecting rent, keeping up with upkeep, and doing inspections, you want to be careful not to adopt a one-size-fits-all strategy that makes it nearly impossible to generate a profit.

If you currently have a significant portfolio, you must choose the compensation you will give each property manager. Will you pay them according to the number of units, gross rents, or the percentage of rent collected if you hire them as independent contractors? Again, these are challenging problems that you can resolve by understanding your market and its labor force.

The following are three typical methods used by property managers to determine their ongoing management fees:

•     Percentage-Based Costs: While some recommend a range of 8 to 12 percent of the rent for property management fees, others advocate for various amounts. Make sure you complete your study because this will depend on your local market and services formula.

•     Flat Fees: Some property managers offer services at no additional cost while charging a flat rate for others. It enables property owners to select and personalize the services they want.

•     Per-Project Fees: This is the most fantastic and cost-effective choice if your property owner needs services on an as-needed basis. They will like not having to pay for services they don’t frequently utilize. 

Setup fees, lease fees, late payment fees, unoccupied unit fees, and eviction fees are a la carte charges to take into account:

•     Setup costs: These are one-time charges for setting up your system. When you have property management software, it’s even simpler to justify. A helpful hint is that many of our clients use property management technology in their sales presentations to highlight the value-added benefits of elements like owner reports and resident-facing portals.

•     Leasing Fees: This one-time cost assists you in covering the costs of finding a new resident and arranging for their move when you have an empty property (e.g., showings, screening, leasing, move-in, and rental listing syndication).

•     Lease Renewal Fees: This cost covers lease renewals, which, if a strict renewal procedure is in place, might be a brilliant idea.

•     Eviction fees: While it is evident that thorough tenant screening can help you avoid evictions, they do occasionally take place. This fee will partially cover the time you invest as the property owner’s advocate in the court proceedings. 

Once more, understanding your market and being clear on how you allocate your resources will help you choose the appropriate pricing, which will change over time. 

Developing reliable Property Management Contracts and Agreements

Do you recall the proverb “strong fences make good neighbors”? Well, reliable property management agreements create loyal commercial ties. There should be a clear outline of the functions and responsibilities of property management in a contract.

A well-thought-out contract will include the following:

• Management fees
• Off-duty coverage
• Work hours and vacation time
• Workman’s comp, liability insurance, and indemnification from loss and damages
• Whether you or your property managers will live on-site
• Maintenance and repair budgets
• Emergency funds
• A detailed description of the services promised
• A timetable for invoicing and any penalties for non-payment

To ensure everything is secure in your contracts, always have a lawyer review them. They may also help you create a template for contract talks.

#6: HOW TO improve YOUR RESIDENT EXPERIENCE

Residents will be in contact with you and your team every day. Making sure your tenants have a positive resident experience keeps your properties running efficiently, encourages the referral of additional tenants, and enhances your standing with landlords.

Target the right residents for your properties, promote a sense of community, and maintain open lines of contact to achieve that.

Offering Your Residents the Proper Experience and Amenities

The residents’ preferences your properties draw will determine the kind of service and resident experience you offer. Residents want more than just a roof and four walls. They seek a practical setting that fits their way of life and feels like home. Apartments in the city draw young professionals and retirees wishing to downsize. Families may be drawn to homes and apartments.

Every part of your property management company, from amenities to routine communications, should consider the residents, from emergency preparation to facilities.

Older people, for instance, might feel more at ease getting emails or letters in the mail. Facebook is most likely their preferred social media network. A young family might like text notifications in the meanwhile.

Pro tip: Use a resident center (or portal) online so that your residents may obtain the required data, make rent payments, and get in touch with you quickly and easily via a mobile app.

Have you considered the amenities you want to provide residents if you manage multifamily buildings with common areas? Benefits like offices, outdoor fitness areas, event calendars, and Amazon package mailboxes make homes stand out. The amenities won’t be under your control, but you can control how you advertise them and build an excellent resident culture.

Ways to Handle Concerns, Disputes, and Requests

When a person has a concern, a request, or a disagreement, listen to them and assure them you are interested in learning more about their problems. Give your residents a deadline if you can remedy it right away. If not, do it as soon as you can.

Explain why if there is a problem you can’t solve. 

The Best Way to Make Emergency Plans

Real estate managers require emergency plans for storms, earthquakes, fires, and damaged pipes. Your preparations should be precise, comprehensive, and catered to your area’s emergencies and natural disasters.

#7: MANAGING YOUR PROPERTIES

It’s time to start considering the requirements you’ll need to meet to manage the properties you choose to target (single-family, multifamily, condominiums, etc.) or the market you choose.

Taking care of Upkeep and Repair

For potential customers who don’t want to deal with the effort and expense of maintaining their properties or resolving unforeseen problems, offering maintenance and repair services may be a huge seller. Additionally, it benefits your company since you may reduce the cost of repairs while relieving your property owners’ stress.

Listed below are some considerations to make if you decide to provide those services:

• Specify exactly which services you will offer and how they will be paid for in your contract.
• Make sure your liability insurance covers all your workers and contractors who perform the work.
• Establish a reliable method for job orders. You can encourage residents to submit work requests online using a platform. Then utilize it to monitor the project’s progress.

 Building Your Leasing Services

Filling vacancies is a significant value addition provided by many property management firms. Unoccupied units will cost you money in lost rent, so you’ll want to keep them as complete as possible.

Similarly, you should make sure your process is lean and mean so that you can swiftly, effectively, and with a solid first impression place high-quality tenants in their homes from lead to lease. Here, technology has a ton to offer. Here are all the ways technology may speed up your lease process.

1. Marketing Rental Listings: To market a rental listing, you must promote it and draw desirable tenants. Rental listing syndication is a feature available on many property management platforms that allows you to send a single listing to numerous websites, including Zillow and Trulia, with a single click.

2. Schedule showings: This might be a full-time job if you’ve attracted interested renters. Software for scheduling and showings can therefore save a ton of time.

3. Tenant Screening: Next, you should conduct background checks on potential tenants utilizing a partner like Transunion.

4. Lease: You want to streamline, simplify, and manage the leasing process. Software for property management also provides a simple method to reduce paperwork, gather signatures, and keep them electronically stored online.

5. Property inspections: You should do checks as tenants move in and out and during the lease term. Why not run your inspections through a mobile app? Doing this ensures you document any damage beyond regular wear and tear, fixed, and paid for by the right person while maintaining compliance with local and state building rules.

Ways to Stay Compliant

Regarding construction codes, compliance is a significant aspect of your profession that you cannot ignore. You will be responsible for keeping up with rules and regulations regarding elevators, sanitization, and building permits. Additionally, you will need to pass routine inspections by the fire department, which will check for the placement of smoke detectors, fire extinguishers, and exit signage on your premises.

WHAT’S YOUR NEXT MOVE?

You’ll need strong project management and customer service abilities to succeed in property management. You’ll need to stay abreast of regional laws, regulations, and business trends.

You must be able to sell your company and real estate, entice prospective customers and residents along the sales funnel, and secure leases and contracts. I know it seems like a lot.

You do not need to struggle alone. Take it step-by-step and surround yourself with individuals you can genuinely trust if you’re serious about learning how to launch a property management firm. The only way to scale up your business securely is to lay the proper foundation for it. 

                     

 

If you own a rental property then you know how difficult it is to reach out to people. Here are 5 free ways to advertise your rental property.

In the past, advertising a vacant property in the local newspaper was the best way to spread the word. You could also place a “For Rent” sign on the front yard and hope for the best.

Countless choices are available today, making free rental listing promotions simpler. Your chances of finding potential tenants will significantly increase if you put your listings on one of the many websites available.

However, not all choices will be appropriate for you. You may discover that one strategy generates many high-quality queries, another clogs your email with spam, and a third generates just a few visitors weekly.

The good news is that since these choices are cost-free, you can see for yourself what works best for your company.

5 Best Ways to Advertise Your Rental Property.

#1: Utilize Your Website

Consistently market your listings on your website, and endeavor to keep them current. If your website still has the same design as in 1999, it may be time for an upgrade, as your website has the power to either attract or repel visitors.

You want your website to be simple to use on mobile devices, for users to navigate, and for you to update. When more people visit your website and rank higher in search results, the better it is. Keep your website updated according to the latest technologies and with the latest listings. Make sure that the website is optimized for mobile devices.

As more and more people access websites on mobile devices, the websites should work faster and correctly on mobiles and tablets too. Also do not forget to add some of your client testimonials so that your website visitors can know about your previous work and clients. Make the website easy to navigate and easy to contact you.

#2: Make an Email List

By building an email list, you can gain direct access to a large number of potential buyers who might be interested in your property.

You can include a subscription link when you post properties on your website so that customers can input their email addresses to get updates about current and upcoming vacancies.

You can notify your mailing list once a new listing becomes available for owners and property managers with smaller portfolios. You may send a monthly email that promotes available units to individuals with more extensive portfolios.

A monthly newsletter is a fantastic tool for property managers to foster a sense of community among tenants who end up renting from them and to keep them informed. The more you keep your potential customers informed about your work and new listing, the more chances are for getting new business. Keep your email list growing and updated.

#3: Utilize Sites with Free Rental Listings

 

There are several websites where you can list your rental property without any cost. These are the best place to advertise your rental property for free. You can select which of the following websites makes the most sense for promoting your listings after you update your website:

• Apartment Finder
• Zumper
• TurboTenant.com
• Hotpads
• PadMapper
• Apartment List
• Oodle
• Zillow
• Rentberry
• Trulia
• Apartments.com
• Craigslist
• Rentdigs
• Apartment Guide

Make use of their free listing feature to advertise your listing to bring users and potential customers to your website. This can also be a good way to attract new business. 

#4: Use Social Media to Publicize

The best modern way to advertise your rental property for free is the use of social media.

This is a time when social media is at its peak. Most businesses and general users are present on one or more social media.

Having a significant online presence is helpful when it comes to marketing your listings on social media. Nevertheless, posting a listing won’t harm you even if you don’t have a massive following.

Social media is fantastic because it allows users to spread your content, giving it a life of its own with minimal effort.

While you’re at it, we advise frequently posting on your social media profiles even if you have no listings to advertise.

To bring your company to more people’s attention, try to establish a residential community and discuss interesting things about your homes. 

Most social media websites and app gives user various tools that they can use to create and upload content. Make sure that the content is relevant to your business and is shared to get maximum reach. 

#5: Publicize in Your Area

Posting your listing offline is beneficial because apartment seekers occasionally walk right past you. If you don’t advertise offline, prospective new neighbors in your area might not be aware that you have anything available.

Sometimes the most straightforward solutions yield the best outcomes. Continue to place “For Rent” signs around the neighborhood and place ads at nearby businesses.

If you do not wish to spend money on advertising your rental properties, you can make use of the above ideas to publicize your listings for free and get business. 

Conclusion

The above mentioned 5 best ways to advertise your rental property for free can certainly help you in finding the right renter for you property.

 

If you want to advance your career or future in property management then you should not have these Must Have Certifications in Property Management.

Some property management qualifications are excellent, while others are necessary, depending on your work and ambitions. Additionally, even though some jurisdictions don’t demand any formal qualification or licensure for property management, you might want to think about getting one or two to make yourself more credible and marketable.

Let’s discuss the available qualifications and licenses for property management, who issues them, and how they might advance your career.

5 Important Types of Certifications in Property Management

#1: Organizations Managing Property

Various certifications are connected to a particular real estate or property management association. These organizations are many, and each offers a specific set of credentials.

Simply put, a property manager gains influence by becoming a member of one of these groups. Once you enroll and finish their certification programs, you can promote yourself as having acquired knowledge and experience in the area. You may also utilize the organization’s badge or logo on your website and marketing materials. Additionally, you’ll get other advantages, such as being featured in the organization’s directory, that provide a competitive edge in the property management industry.

The following are several reputable organizations in the sector:

• The Institute of Real Estate Management (IREM): This is a worldwide association with about 20,000 members. They provide property managers with globally recognized training, certification, professional development programs, and networking opportunities.

• The National Apartment Association (NAA): More than 93,000 businesses worldwide are members of the NAA. It provides guidance, training, and support for apartment operators and owners with a strong emphasis on philanthropy.

• National Association of Residential Property Managers(NARPM): This is a global organization of real estate experts who manage single-family or small residential properties. Their credentials are acknowledged all around the world. A report on the shape of the property management industry is released annually during NARPM’s Annual Convention.

• The National Association of Realtors (NAR): NAR provides chances for professional development and real estate professional training and certification. After passing the NAR’s certification program, more than 200,000 members are granted the right to use the title realtor.

• Community Association Managers International Certification Board (CAMICB): To develop and implement rules of conduct for community associations, CAMICB was established in 1995. It has 20,000 members now and is a well-known organization in the community association sector on a global scale.

These five organizations issue most of the certificates for property managers. They can find the best certifications and support for your needs by visiting their websites or contacting a member.

Let’s look at the property management certifications and the licenses required to become certified.

#2: Essentials in Property Management

The minimum requirement is often a property management license, so let’s start there. Additionally, you can become a Certified Property Manager (CPM), which is not necessary but strongly advised.

License for a Real Estate Broker or Property Manager

Most states require a real estate broker’s license or a property manager’s license to manage rent, negotiate leases, and officially list properties.

States grant licenses for real estate brokers. Only 11 states do not need you or your business to get a real estate broker’s license. Oregon needs either or both, and three of those states (Washington, D.C. as well) require a property manager’s license.

Both licenses include coursework, classes, passing an exam, real estate sales experience, and ongoing education to keep the certification current. Additionally, depending on the State, real estate license holders must be at least 18 or 21.

Note: Most states don’t require a license if you intend to work in community associations. For those that do, there are various requirements. Therefore it’s crucial to know the laws in your State. You can find these specifics in databases and independent organizations like the Community Association Managers International Certification Board and the Homeowners Protection Bureau.

Certified Property Manager (CPM)

IREM states that the base pay for property managers in the United States is, on average, $48,340. The average CPM pay is $118,383 per month. Although no state mandates this qualification, it is the industry benchmark for property managers and is widely accepted.

To become a certified property manager, you must first fulfill the prerequisites. One, manage a portfolio of properties for three years and hold a real estate broker license to graduate. Two, finish a management ethics course and the other seven required property management certification courses before you can take either of the two examinations.

#3: Certifications to Advance Your Profession

Various property management credentials can further your career or raise the profile of the management firm where you work. Which certifying organization best suits your professional objectives will determine which certification route you should pursue.

Residential Management Professional (RMP)

NARPM offers this certification.

The RMP and IREM’s CMP certifications are highly comparable. It has about the exact requirements and has the same level of recognition in the property management community. It also serves as a springboard for earning NARPM certificates that are even more renowned.

You need to be a real estate broker, have a license, and have experience managing 100 units for over two years to qualify for an RMP.

Master Property Manager (MPM)

NARPM issues the certification.

The highest position within NARPM that a single member can hold is MPM. You can apply to have your company become a Certified Residential Management Company once you have earned an MPM.

To be eligible for an MPM, you must have obtained your RMP and managed 500 units for at least five years.

Accredited Residential Manager (ARM)

IREM offers the certification.

Property managers who are just starting can benefit from ARM certification by learning the skills necessary to advance in the field. Before moving on to a CPM, it would be the first step.

You must have 12 months of real estate management experience to qualify for an ARM. Additionally, you’ll have to take the test, finish the required courses, and take the ethics class.

Certified Apartment Manager (CAM)

NAA is the issuing organization.

Only individuals who manage apartment rentals are eligible for the CAM certification.

Candidates must have at least a year of on-site management experience, finish the curriculum, and take the exam within 12 months of announcing their candidacy to become a CAM.

Certified Manager of Community Associations (CMCA)

CAMICB issues the certification.

Community association managers who have this accreditation make 20% more money than those who don’t, according to the CAMICB.

To get this certification, candidates must apply, pass the exam, and finish the coursework (which you can avoid if you have five or more years of experience managing communities).

#4: Company Credentials

Company certificates might improve the reputation of your entire team in addition to individual qualifications.

Certified Residential Management Company (CRMC)

NARPM is the issuing body.

Your business can apply to become a Certified Residential Management Company if you or one of your employees has earned an MPM.

NARPM must conduct an on-site audit within three years of applying before granting certification. Additionally, your business must have 500 unit years of experience (one unit year equals managing one unit for a year).

Accredited Management Organization (AMO)

IREM offers the certification.

This renowned company accreditation certifies your profession’s knowledge, similar to the CRMC.

To acquire an AMO, IREM lays out a very long list of conditions for your business: having a CPM holder on the executive team is one of them. To learn more, go to their AMO page.

#5: Credentials in Property Management

Continuing education certificates also help you maintain your competitiveness in property management. All property management companies’ various continuing certification programs offer a range of subject matter from marketing to ethics. They comprise:

• Certificate for Apartment Maintenance Technician (CAMT): This training teaches Cost-effective maintenance for new maintenance professionals.

• Certified Apartment Leasing Professional (CALP): In this course, you learn leasing techniques, including attracting customers, running leasing demonstrations, handling objections, and screening potential tenants.

• Certified Apartment Supplier (CAS): New salespeople can take this course, while seasoned professionals can learn more about how to run apartment communities.

• Independent Rental Owners Professional (IROP): This program is for landlords who personally own and manage one or more apartment buildings. They study how to prepare rental units, screen and keep residents, manage budgets, arrange taxes, perform preventative maintenance, use energy efficiently, and more.

• Specialist in Housing Credit Management (SHCM): Management professionals can learn the requirements of the Low-Income Housing Tax Credit program with the assistance of the Specialist in Housing Credit Management (SHCM) certificate.

• Credential for Green Property Management (CGPM): After choosing a green mark-to-market restructuring, the CGPM gives management businesses and owners a way to fulfill initial and ongoing HUD Office of Affordable Preservation (OAHP) training responsibilities.

• Certified Support Specialist (CSS): Any administrator in your office who wants to learn more about their industry should get this certification.

Starting with a real estate broker’s license is wise if you’re new to property management. After acquiring it, you can consult with your employer or other property managers to ascertain the ideal property management credentials and certifications to meet your business goals.

If you are an experienced property manager, consider your objectives as well as the goals of your business. Next, decide which certifications and organization will best suit you.

Are there any other certificates worth mentioning that help you maintain your competitiveness? Comment and let us know!

 

Career Facts in Property Management

If you are interested in making a career in property management then here are some important facts that you should know before reading this article.

• $55,380 a year is the median wage (Bureau of Labor Statistics, 2014)
• 313,800 jobs are available (Bureau of Labor Statistics, 2014)
• There will be 25,300 new job creations in the next ten years (Bureau of Labor Statistics, 2014)
• One of the 20 happiest jobs in the U.S. in terms of work satisfaction (CareerBliss, 2014)

Who is a property manager?

Property managers are in charge of managing real estate on behalf of someone else. These assets could be modest residences, significant multi-family structures, or sizable shopping centers.

They are in charge of several duties, such as tax filing, tenant screening and administration, rent collecting, and management. They frequently work odd hours.

Property managers must have exceptional customer service, marketing, and communication skills and a thorough understanding of the local real estate rules and regulations.

Property managers frequently oversee the office’s leasing, administrative, and accounting responsibilities. However, they may also be in charge of other staff members or outside contractors who handle these responsibilities.

The Responsibilities of a Property Manager

Property managers have a variety of administrative and leasing responsibilities, including:

• Submitting requests for maintenance services for a property
• Rent collection
• Giving prospective tenants tours of the unit
• Inspection of the apartments after the tenants leave to check for damage
• Advertise unoccupied properties on the company website and post ads on syndication websites
• Eviction of renters who have broken the conditions of their lease

Because a property manager’s duties are so varied, it is crucial to understand every component of the rental market.

The Perfect Time To Make A Career in Property Management Sector

Adults choose to rent because the cost of purchasing a home is rising. The availability of empty properties is declining as renters grow and home ownership numbers fall. The need for property managers increases in a competitive rental market.

Reference: U.S. Census Bureau

Career Paths for Beginners in Property Management

#1: Leasing Assistant/Assistant Property Manager

The leasing assistant helps with general office duties to keep things operating smoothly. Their responsibilities are:

• Taking care of the business’s external relations
• Advertising the properties
• Talking to the residents
• Data entry
• Handling rent payments
• Handling maintenance requests
• Monitoring business expenses

An assistant property manager should possess excellent customer service abilities, much like a property manager, to maintain the satisfaction of both present and future tenants.

Although many businesses employ extra staff members, such as bookkeepers and administrative assistants, the assistant property manager may be in charge of these duties.

#2: Administrative Assistant/Office Coordinator

Many businesses employ administrative assistants to handle routine office tasks so the property manager can concentrate on maintenance, tenant relations, and advertising. Their regular duties could include the following:

• Answering phone calls
• Helping walk-in clients
• Setting up appointments to view apartments
• Collecting maintenance requests
• Dealing with suppliers
• Receiving and processing data

Administrative assistants frequently serve as the company’s spokesperson, so they must be professional even under pressure and thoroughly understand the organization’s policies and processes.

#3: Bookkeeper

Some leasing companies employ a bookkeeper to take care of specific financial duties. Their regular duties could involve:

• Processing rent payments after receiving them
• Penalizing homeowners for late payments
• Tax filing
• Keeping track of income and expenses
• Creating yearly or quarterly financial reports for the owner and property manager

Skills, Training & Qualifications in the Property Management Career

Education & Certifications in Property Management

While many property management positions do not demand a college degree, a specific certification demonstrates your dedication to and expertise in your field. Some employers favor candidates with real estate, business, or accounting degrees from college.

Thanks to these degrees, property managers may be confident that applicants have the skills necessary for this industry. Relevant work experience always aids a job search, and internships demonstrate commitment and a foundational understanding of the field.

Consider acquiring a credential to advance your career if you’re sure about a career in property management. You benefit greatly from becoming a CPM (Certified Property Manager) or an ARM (Accredited Residential Manager).

An ARM certification demonstrates a person’s ability to perform and surpass employer and client standards. Although they are an investment, the job prospects they open up often make them worthwhile.

Please read our article about property management certification to learn more about whether you should pursue the training.

Skills in Customer Service

The property manager is responsible for filling vacant properties and maintaining them occupied. This skill implies that they must represent the organization in a way that encourages customers to interact with the staff.

Information spreads quickly in the technology era; thus, it is in the property manager’s best interest to establish a good name for the business.

At each step of the renting process, relationship management is crucial:

• Before the lease is signed: The rent should be set at a price that covers property maintenance expenses but isn’t excessive enough to turn away potential tenants.
• When a lease is signed: Every formality should be explained, so the tenant knows what to expect.
• Throughout the lease term: The property manager must balance being prompt, cordial, professional, and stern. This skill is crucial in dealing with maintenance difficulties and when the tenant breaks the lease or the rent is past due.
• When the lease is over: The property management will have to look through the unit and give sufficient reasons for not returning the security deposit to the renter.

Skills in Administration

An effective property manager should be able to manage every facet of the company. Management entails obtaining and processing rent payments, paying business expenses, entering data and producing reports, and generally keeping the office atmosphere productive.

As was already noted, customer service abilities are essential because a firm cannot exist without tenants to occupy each unit. The firm gains a lot by keeping open contact with tenants, maintenance workers, and the community.

Career Development & Earnings in Property Management

The Bureau of Labor Statistics states that the median pay was $55,380 in May 2015 for the community association, property, and real estate managers. The top 10% made more than $123,790, while the bottom 10% made less than $28,490. For comparison, in May 2015, the median pay for all U.S. jobs was $36,200.

Experts predict between 2014 and 2024, employment in this industry will increase at a pace of 8%, comparable to the average job growth rate across most industries. The return on time and financial commitment in these careers are pretty good as they do not require substantial training and education.

Local government, excluding institutions of higher learning and hospitals, is currently the area of the economy where property management is most profitable.

Career Trends in Property Management by State

Reference: Bureau of Labor of Statistics

Resources in the Property Management Career

Countrywide Organizations

(NARPM): The National Association of Residential Property Managers acts as the industry’s hub, providing a place where people can exchange tips, connect with other experts in the sector, go to conferences, and take measures to become certified.

(NAR): The National Association of Realtors is a more inclusive resource that covers all real estate perspectives and provides news about market trends.

Property managers and those in charge of their respective organizations can use the National Property Management Association (NPMA) services. It offers networking possibilities as well as education.

IREM: The Institute of Real Estate Management offers a wide range of services, including job resources, blogs from industry insiders, real estate trends, and education.

Legal References

• Forums for Real Estate and Property Law
• Real Estate Laws Affecting Transactions
• 23 Laws that Apply to Real Estate Sales
• Real Estate Laws in Your State (U.S. Department of Justice)

Finding Work

• PropertyManagerJobs.com
• Glassdoor’s Property Manager Jobs
• Indeed’s Property Management Jobs
• Monster’s Property Management Listings
• Career Builder’s Property Management Jobs

Additional Interview and Career Advice for Property Management

Before you take any action toward pursuing a career in property management, it’s crucial to be sure that it is the one you genuinely desire. Being in a customer-driven, 24/7 profession can be demanding, so it’s not for everyone.

However, if you’re prepared to advance in property management, the following advice might be helpful:

• If concentrating on one property management task implies ignoring the others, don’t do it. Employers value knowing that a potential worker has diverse talents because property managers frequently handle every part of the business.
• Demonstrate your decision-making skills by making logical choices. You might need to make decisions on your own more frequently than you would have liked.
• Be ready to commit to the industry entirely. If you approach it halfheartedly, you won’t perform to your full capacity in a property management profession, and the company will suffer.
• Pose questions! Although it is Interviewing 101, people often disregard this advice. Employers value candidates interested in the property management industry since it signals dedication and commitment over the long run.

When dividing a water bill between several residents, it’s important to keep in mind the way your utility bills are classified. Most utilities classify their bills into three main categories: fixed charges, metering charges, and user fees. Each type of charge is assigned a certain percentage of customer usage, with the remainder being billed as user fees. RUBS  or Ratio Utility Billing System is one of the best systems to divide water bills between the residents..

When dividing a water bill between several residents, it’s important to know which category your utility falls into. Read on to learn more about your options if you’re looking to divide your water bill among several people.

Fixed Charges

There are a handful of fixed charges that are generally applied to all of your water bills each month. These charges are usually for water quality testing and the cost of maintaining your plumbing system (i.e. waste, water, and fire protection systems). These expenses are necessary and should not be discounted from your water bill, but you should feel free to ask your water provider if they can charge you less for these costs. The first fixed charge is the Department of Water Quality Assessment fee, which is the cost of testing the water so that you know what contaminants are present in your water.

This fee varies based on your area. If you live in one of the 18 states that have a DEQ program where you get your water quality tested for free, you can expect to pay around $2-$6. In other states, this fee can go as high as $21. The second fixed charge is the State Water Quality Assessment Fee, which is charged by the state in which you live. This fee is charged to all residents in all 50 states and is used to fund the state water quality programs in those states. The amount charged will vary depending on the state you live in and is usually around $0.25-$0.50 per month.

Metering Charges

If residents can be provided separate meters to know how much water they used, then RUBS can work best in such a scenario.

Many utility companies charge an amount for the usage of the service which is referred to as a metering charge. This charge is based on how much water flows through your pipes and how it’s being used. Your water bill will typically include both a fixed charge and a metering charge, which means that a portion of your bill is set by the state. The state will determine what the metering charge should be based on a number of factors, including your level of conservation.

If your water usage is above average, you may be charged a higher amount for your use, as an incentive for being more water-efficient. Some utilities will charge a small fixed charge to offset the usage and then a higher metering charge that varies depending on your consumption. This is the most common way that utilities will charge for water use, so you need to be aware of it.

User Fees

The third portion of your water bill is usually referred to as a user fee, which is the portion that’s billed to every single customer. This user fee is also determined by the state and is meant to cover expenses such as billing and repairs. It’s important to note that your state government or water agency sets the amount of this fee, so you’re not at fault for paying it. Your municipality will typically take a portion of this fee, which is added to your water bill. This user fee is the portion that’s used to pay the salaries of people who run your local water utility.

Now under the Ratio Utility Billing System or RUBS, you will have to divide the water usage charges as well as the maintenance/repair charges that need to be paid at different points of time. It depends on the agreement between the resident if they want to pay the utility and repair charges in the same ratio or not.

Dividing the Bill Between People

As mentioned above, the most common way to divide up a bill is between a fixed charge and a metering charge. Your water provider will take the amount of the fixed charge and then apply a certain amount to your bill based on how much you use. This amount paid by your customers will vary based on your utility’s rates. Anyhow, if there is only one supply and multiple residents on the property using the same then sub-meters will be required to pay under the system of RUBS.

If you’re dividing a water bill between several people, you’ll want to make sure you’re all on the same billing rate. To do this, you need to get in touch with your utility’s billing department and make sure that the billing address is the correct one for all of you. If one person is on the bill and the rest aren’t, you’ll be charged for that person’s use.

Water Meter Replacement Cost

Some cities and utilities will replace your old water meter with a new meter that reads water use every minute. This is a common way to charge customers based on their consumption and helps to standardize the billing process. An advantage of this method is that it’s more accurate, as it measures the amount of water that is coming out of your pipes. Anyhow, to replace the meter one has to pay a certain price. So it is important that under RUBS, the residents should be taken on board to agree to pay in the same ratio for the replacement.

Modern meters give you a better understanding of your water usage, especially if you’re a high-consumption customer.

Conclusion

A water bill can be difficult to split among several people, but there are ways to make it work and RUBS or Ratio Utility Billing System is one of the best. The goal is to find a billing rate that’s fair for all of those on the bill. Your water provider can help you determine this. Once you have a bill that’s divided between several people, you’ll need to remember to pay it. Most utility companies require payment at least once a month, and in some cases, you’ll need to pay more often than once a month. I

f you don’t pay your water bill, your water provider can shut off your service, which can cause major issues if you don’t have enough water pressure.

A few months back, a rare “bomb cyclone” hit the Northeast. Inches of snow, hurricane-force gusts, and below-freezing temperatures wreak havoc on homes. More than 50,000 Americans were experiencing loss of power as of noon on Oct. 21, 2021.  And people were struggling to deal with freezing pipes and no one was there to help. So here are 10 perfect ways to deal with freezing pipes in any such condition. 

The blizzard comes after a week of extreme cold in the US, with record-low temperatures in many cities. The cold spell has sometimes lasted the longest since at least 1918.

Your pipes don’t stand a chance in this weather.

People have been battling frozen pipes since then. After spending a few peaceful days away for the holidays, this was a big shock for them. Many neighbors and tenants were calling landlords complaining about the frozen pipes. 

The following are ten suggestions about what to do if your pipes freeze and how to avoid this.

How to Deal with Freezing Pipes

Tip #1: Not All Pipes Freeze at The Same Place

One important factor you should remember while dealing with freezing pipes is that not all pipes freeze in the same place.

Some pipes are susceptible to freezing, and some are not. As a result of the harsh cold, some pipes burst easily. If you are at home then you can easily hear the water spraying in the basement. To avoid flooding you should turn off the water to your unit.

After that, you can put heating cables around all your exposed pipes. These cables, which resemble lengthy extension cords, are used to cover cold water lines made of plastic or metal to keep them from freezing in the event of a dip in temperature.

All winter long, you should leave these cords plugged in. Usually, that is all we required during the winter. 

But this year, it was an altogether a different experience for many. 

Tip #2: Hairdryers Don’t Always Work

Sometimes, during harsh winters, hairdryers do not work. You cannot spend your entire day and night using a hairdryer to remove the clogged pipes due to freezing. 

To get more heating cables you should visit a Home Depot. Some people shared their experiences with using them. 

Liza said, ” When we got home, we improvised the best solution by making a hand-sized hole in the bottom of the bathroom vanity. After that, we dug a heating cable into the basement and around the pipes. It doesn’t appear appealing. There are extension cords and power strips all over the room, but it seems to be temporarily working.”

Tip #3: A Drafty Foundation May be the Cause

One of the things we’ve learned is that your home’s outer wall pipes usually freeze. Your brick foundation sometimes appears to be deteriorating. You should try foam insulation to fill in some tiny cracks. Also, you can put a layer of fiberglass insulation between the interior of the foundation and the pipes. This will surely help.

Tip #4: Pipes That Have Never Frozen May Freeze in Extreme Cold

You should turn off the water in your water tank before leaving. This is an additional safety measure, but not the final solution. Due to the lack of water feeding the leak, the damage would be minimal, even if a pipe bursts. But, if you have a renter you should ensure that they have enough water supply in case you are out. 

If you allow water to keep trickling it will help. 

Tip #5: It’s Harder When Pipes Freeze Behind a Wall

All the above techniques that we have discussed so far are for pipes that are visible. But, what about the pipes that are behind the walls? A long-time plumber advised us to turn up the heat and install space heaters along the wall we suspected was the problem. He said it should work after a few hours. 

Tip #6: A Plumber Can Easily Fix the Problem with the Right Equipment

The best way is to call a  plumber to fix the issue. You should describe what happened while your pipes froze. Each freezing action is different and therefore if you explain in detail what happened, your plumber can easily narrow down to the exact location or issue.

But, during such a season the main challenge is that all plumbers are busy. You may not get an immediate solution. Once the plumber is available get the pipes defrosted. This will let the water flow. And once the water flows don’t close the flow completely at any given time.

Tip #7: A Thaw Machine Can Save You

What is a thawing machine? It is a portable appliance used by plumbers to defrost pipes swiftly. Think of the jumper cables coming out of the ends of a car battery. You attach one end to a pipe that isn’t frozen and the other to the frozen portion.

You plug the thawing device in, turn the switch, and wait.

Low-voltage, high-currency electricity is sent through the pipe by the thawing machine. The warmer water seeps through the ice as the frozen areas start to defrost. Within minutes, water will begin to pour out of the faucet downstream. The best feature is the device’s ability to clean lines up to 175 feet long and work on copper and iron pipes.

The plumber’s visit to service the apartment cost a few hundred dollars, but it prevented us from damaging the walls or, worse still, from suffering thousands of dollars worth of damage if the pipe behind the wall had burst.

Tip #8: Running the Water During Cold Spells Helps

It’s easy. Your mother has probably advised you a million times to leave the tap running overnight to avoid frozen pipes. My mother, at least, has. I’ve always assumed it to be a myth. But according to my plumber, this is the only method to prevent the pipes from freezing during extended cold spells like the one we currently have. Yes, the water bill may increase, but it’s a small amount to pay to prevent the damage brought on by burst pipes.

Tip #9: Salt & Hot Water Can Thaw Drainpipes

Your plumber may also advise you to pour the hot water mixture down the frozen drain after stirring a cup of kosher salt. This slurry will function similarly to the rock salt you spread outside to thaw icy sidewalks. Repeat this a few times, and your drain should soon start to fill with water.

Tip #10: Have a Plumber on Speed-dial and Take Precautions to Avoid Pipes Freezing

For both property owners and managers, extreme cold causes significant difficulty. Make every effort to prevent frozen pipes; if they do, call a plumber with a thawing device to save yourself the hassle. After attempting everything else over the past week, I am confident in asserting that it is the only surefire fix.

After Memorial Day, the season for swimming pools and barbecues officially begins. The community residents may be looking to plan parties and pool parties are everyone’s favorite. So here are the important 8 fundamental pool regulations every community should follow. 

For your chilly residents, that’s terrific news. They’ll arrive equipped for swimming and grilling, with plenty of kebabs and buckets of sunscreen. They could even give you some of their lunch if you’re lucky! However, if the thought of unattended residents and visitors in the pool keeps you up at night, this is likely your least preferred season.

 Naturally, you may take some common sense precautions to guarantee the security of your inhabitants and their visitors. The precautions involve displaying the following eight pool rules at the patio’s entry and around the pool. Remember to offer this vital safety advice for neighborhood pools. 

8 Fundamental Pool Regulations Every Community Must Adhere To

Do not run: The most important out of all fundamental pool regulations is to not run. It can be dangerous. Both children and adults should avoid running around the pool area. They can easily hurt themselves by slipping on wet surfaces. 

Don’t dive: Diving can be risky, even with an experienced lifeguard on duty. If the pool is excessively shallow, it could endanger other swimmers and seriously hurt the diver. Before trying to dive, know about the pool depth and the availability of a lifeguard. Also if you do not have any swimming experience, do not take risk of trying a dive in any case. It could prove fatal.

Watch over children: All the fundamental pool regulations are meant for safety. Especially when it comes to children. Whenever near the pool area, it is advisable to keep a complete watch over children. Young children should always be under adult supervision. Check with your state or municipal government for information on the relevant age restriction. Given that some 16 and 17-year-olds are trained lifeguards, some states have determined that the age limit of 18 may be stringent. 

Toddlers should wear swim diapers: You don’t need an explanation on this, but if there are many families in your community, having this guideline is a good idea.

 A maximum number of swimmers at once:  For safety purposes, most swimming pools have a capacity. Often, people forget this regulation if not told, especially on busy days. Make sure that there is no more than the maximum capacity allowed inside the pool. A crowd inside the pool is very risky and should be avoided.

 A maximum number of visitors per resident: Usually communities do not allow many visitors per resident in the pool area. On that topic, you can establish a (sensible) visiting limit if you are concerned that there will be too many people on the patio when it gets hot. Usually, 2 or 3 per inhabitant are acceptable. In case there is no limit, the pool area will always remain crowded with visitors more than residents. The more the crowd, the more unusable the pool will be and require more maintenance.

 No pets are allowed in the pool: It should be a strict rule to not allow pets in the pool. The hair from dogs in swimming pools will block the filter and can be unhygienic. If any of the inhabitants have allergies, you might also want to restrict the number of animals on the patio. But remember that you might need to create an exception for service animals. 

8. Do not allow glass bottles: People in communities often like to have drinks at pool parties. If residents are having drinks at the pool, you might not mind, but you might not want broken glass where people can go barefoot. It can be dangerous for adults, children as well as animals. You can create rules that no glass bottles are allowed near the pool area to ensure complete safety.

The above list is not comprehensive. These are just the common precautions that you can have for the pool area. The rules for swimming pools are not all included in this list. You can have various regulations based on your community’s location and who lives there. Always research local ordinances before establishing and posting rules to prevent legal complications. 

In addition to posting swimming pool restrictions, building a key-locked fence around your pool is a brilliant idea. To prevent anyone from using the pool after dark or before sunrise, you might be able to impose time restrictions on it.

Pools are, in the end, an excellent method for locals to cool off throughout the summer. However, they can also be a liability, particularly if you consider children, visitors, and pets.

If you find that people are ignoring or breaking your swimming pool rules, don’t hesitate to send a reminder via email or to tuck a notice under their doors. After all, you installed the pool so they could enjoy it—but you want to ensure they do so safely!

The pool area is common and is to be used and enjoyed by all residents. So everyone in the community should work to maintain the area clean and accessible for others also. If you are planning to buy a property where there is a common swimming pool area then these fundamental pool regulations are something that you should know beforehand. 

In recent years, new technologies have filled the real estate industry. Many companies have emerged to make it simpler to own, rent out, or manage rental properties. Who wouldn’t want that? Self-showingS of your rental properties was never easier than today. There are many techniques and technologies that can be used to show your property for promotion. Whether you are selling your property or putting it out for rent you can use the technology. The technology includes smart locks, virtual tours of properties in 3D, and robots!

Although self-showings are a fascinating technology, they might not suit all users. Let’s take a look.

What Do Self-Showings Entail?

Traditionally, the property management, landlord, or leasing agent had to arrange a physical showing anytime a potential tenant wished to see a rental, which often required a lot of communication, like scheduling a date and time for the showing.

When renting out properties, there are numerous logistics to arrange. Even if a leasing agent automates scheduling with software like the showing coordinator the agent may still need to visit the rental property 15 times before finally leasing.

Neither the owner, agent, nor tenant finds the conventional lease process convenient. The design of the Showings Coordinator software helps make the leasing process easier.

Instead of physically showing the unit to potential tenants, the owner or property manager uses technology to let them take a virtual home tour.

The Process of Self-Showing

The leasing agent will place a set of keys in a lockbox and give the prospect the code, which they’ll use to tour the house at their convenience. After the tour, they will place the keys back.

Naturally, landlords have reservations about simply handing over the keys. What if someone destroys the property? What happens if they flee with the keys? What alternatives do you have? All of these reservations are legitimate.

New technology can help in this situation. Self-showings are now safer thanks to improved software and smart lockbox technology.

Tenant Turner, for example, provides scheduling software that agents can integrate with electronic lockboxes and smart keyless locks. Tenant Turner controls the equipment remotely and gives visitors a unique access code.

Built-in security measures are present. For instance, leads interested in viewing a home secured by Tenant Turner must upload a photo ID and provide personal information to prove their identity.

Tenant Turner puts each tenant lead through several fraud detection procedures to screen out Nigerian princes and people with burner phones. A tenant lead indicates when they’d like to inspect the property after successful security checks.

The owner or property manager can impose restrictions, such as scheduling showings only during specific times of the day. However, in general, self-showings allow potential buyers to see houses whenever they choose.

It is easy for the tenant to lead to enter the unit. A one-time-use, unique code that will expire after a set amount of time is texted to them when they arrive at the rental to unlock the lockbox.

When the tenant lead comes to the rental, this process immediately alerts the property management, landlord, or leasing agency. Tenant Turner records all access by tenant leads, suppliers, and team members to have a history.

The potential tenant can take a self-guided tour of the apartment once inside. After the tour, the visitor returns the key to the lockbox and offers feedback.

Benefits and Drawbacks of Self-showingS of Your Rental Properties

Self-showings are a topic on which property managers, landlords, and leasing agencies frequently disagree.

Benefits OF Self-showings of Your Rental Properties

• There is less coordination between the property manager, the landlord, the leasing agent, and the potential tenant. Instead of wasting time planning and running showings, devote that time to other duties.

• It becomes much simpler to display dispersed geographical units. No more navigating the city or putting up with no-shows.

• Self-showings speed up the lease process by allowing your tenant leads greater freedom to choose the time they want to view the rental.

• Portfolio expansion for property managers is easier. Each leasing agent can manage more units because unoccupied units require less direct supervision.

• Renters receive immediate satisfaction because they can view houses whenever they wish.

But as we’ve already established, not everybody loves the idea of self-showing. H

Drawbacks of Self-showingS of Your Rental Properties

• Property managers should do Self-showings when renting out vacant properties. The prospect should be accompanied during the showing to safeguard the interests of the current occupying tenant.

• While self-showing, potential buyers could have questions, and it might be challenging to acquire answers if they’re alone.

• Depending on your software supplier, you could have to pay monthly fees, which might add up. Property managers and landlords must calculate whether they would be better off renting or purchasing smart lockboxes, depending on the number of units they are in charge of, how many are unoccupied at any given time, and for how long.

• Not all tenants are computer savvy. Self-showing technologies may not be comfortable for older renters in particular.

• Self-showings are not entirely reliable. There is always a chance that someone will misplace the keys or destroy the unit. There is still a certain amount of risk involved, although landlords can implement safeguards.

Additional Ways to Enhance Self-showings of Your Rental Properties

Self-showings can be beneficial when used as a part of a bigger plan to provide a better rental experience. Combining self-showings and conventional in-person property visits, a hybrid strategy, can lessen coordination burdens while offering potential tenants high-quality service.

Additionally, technologies can assist property managers, landlords, and leasing agencies in coordinating rental showings without leaving potential tenants to fend for themselves.

To manage potential renters more effectively, the Showings Coordinator provides software for arranging showings. Whether you have a dozen or a thousand rentals, their powerful platform always works for you.

The software guides potential tenants through a pre-qualification procedure that complies with fair housing laws. It rates each applicant per your requirements and only permits qualified prospects to book a viewing.

It’s your choice to utilize electronic lockboxes, combo lockboxes, smart locks, and key checkout, or show them the rental yourself. But, believe it or not, self-showings of your rental properties will be a common thing in the near future due to fast advancements in technology. 

Managing an owner’s assets, revenue, and expenses is a property manager’s primary responsibility, so whether you like it or not, you’re constantly dealing with accounting. So how to become a successful property accounting bookkeeper? 

Your company handles a lot of money monthly, from vendor invoices to collecting rent payments. But are you accurate and effective where it counts by using the necessary bookkeeping principles, procedures, and property management accounting software?

A senior product manager, states that “accurate figures and real-time financial data enable good decision-making within your firm and inspire trust in your property owner clients.”

She also states that accurate bookkeeping prepares you for tax season and other financial occasions like quarterly meetings with your HOA boards or monthly owner reports.

According to Brandon Hall, The Real Estate CPA, “there is a lot of liability to incorrect accounting, especially for a property management company.” “You might not be accounting for expenses and revenue per client, or you might be missing tenant payments.”

He claims that sound accounting principles help ensure that your books are balanced and that you correctly account for all the money associated with your properties.

To assist property managers in being profitable, we’ve compiled a list of ten best practices for bookkeeping.

How to Create Good Property Accounting Procedures

The first step to becoming a successful property accounting bookkeeper

#1: Create Individual Bank Accounts

You’ll require a different account for security deposits in addition to a standard company account. This will be your first step to becoming a successful property accounting bookkeeper. Many states demand that security deposits be kept by landlords and property managers in separate escrow accounts so that they are available when tenants vacate.

Hall advises keeping security deposits in a trust if your state permits it. “If you do it right, each property will have a separate P&L. You’ll be aware of your financial situation and your expenses and income per client.

Making sure you’re precise about how much you owe the customers and what your management fees are, is the whole point of trust accounting. If you don’t execute it correctly, you could face a lot of liability and possibly licensure problems.

#2: Create a Chart of Accounts

A chart of accounts lists all assets, equity, expense accounts, income, and liabilities. It aids in categorizing and organizing your financial transactions. Without mastering the chart of accounts you can never become a successful property accounting bookkeeper. 

While having these is crucial, you do have the freedom to modify your chart of accounts to suit your company’s demands. You may maintain your chart of accounts as high-level or as detailed as you wish. Everything relies on what is suitable for your business.

You can use something as simple as an Excel spreadsheet to construct a chart of accounts or invest in property management software to make the process easier. For instance, some software tailor elements for property managers that automatically generate a chart of accounts.

#3: Select a Method of Accounting

The two primary accounting techniques are accrual and cash. Cash accounting allows you to track your income and expenses as they are collected and paid. Contrarily, accrual accounting captures revenue and costs as they happen.

Most property managers use cash-basis accounting, but as they incur, be careful not to lose track of income and expenses. Accounting software is helpful in this situation. It helps you monitor every cash coming in and going out.

#4: Select a Bookkeeping Technique

Next, decide whether to use single-entry or double-entry bookkeeping. All incoming and outgoing financial transactions are entered only once under single-entry accounting, which does not imply that each could not have its column. It means everything is entered into your record only once.

Double-entry bookkeeping is more frequent in businesses. Every transaction is entered twice in this method—once as a credit and once as a debit. If you were to pay a bill from your cleaning service, for instance, you would enter the payment as a debit in one account (or less money in the bank) and as a credit in another account (or less money owed to the cleaning service).

#5: Keep Track of Receipts and Invoices

Find a productive approach to organizing all invoices and receipts. It might be a general accounting program like QuickBooks or other property management software which is more suited to the requirements of property managers in accounting for the books of their owners.

Whatever you decide, make it a habit to keep track of all financial statements for your company’s inflow and outflow.

Create a timetable for regular reporting for both you and your owners. Owners have the opportunity to create and download their reports. However, meeting them to review the numbers could be a good idea. A property accounting bookkeeper will always keep proper track of receipts and invoices. 

Tips for Maintaining Profitability

Mandatory skillset to become a property accounting bookkeeper

#6: Maintain Up-to-Date Collections

In some cases, such as during the pandemic, when tenants or owners are having difficulty, it becomes sensible to suspend payments. But, it would be best if you did not let your collections fall behind schedule because that cash can accumulate and affect your financial situation.

Note any waived costs and classify those apartments or houses correctly. Additionally, ensure your procedures are consistent and adhere to local and state regulations to avoid putting yourself, your residents, and your owners in a risky scenario.

#7: Prepare for Unexpected Costs

Even if your collections are current, there will inevitably be one expense that you weren’t expecting. Maintaining a rainy-day reserve will save you from scrambling to cover an urgent purchase or even lost revenue from an owner who left.

Look back on your expenses from the previous year, especially the unforeseen ones, and aim to save enough cash for future costs of a similar nature.

#8: Balance Your Accounts Often

You can identify typos, duplicates, missing entries, and bank problems by doing a monthly reconciliation. It is the initial phase of proper bookkeeping. To make sure there isn’t any money missing or overpayments, do your reconciliations at the end of each month.

It’s tempting to put it off because it can take a lot of time, but choosing the appropriate tool to makes it easier and can save you a lot of money.

Many software enables users to begin reconciliations and preserve their work for later. Therefore, with time, you can continue. When you’re finishing up your bank reconciliations at the end of each month, this can save you hours.

#9: Maintain a Positive Cash Flow

Even though your cash flow is positive, you may not be profitable. Not all monetary outlays qualify as expenses in property management bookkeeping. For instance, in property accounting, repayment of the security deposit uses a liability account but shifts the money. You might purchase a large, pricey piece of equipment, a computer, or a vehicle with corporate funds and record it as a fixed asset.

You’ll typically have a positive cash flow with cash basis accounting as long as you maintain your business’ profitability. This number will undoubtedly fluctuate, so it’s essential to keep an eye on it if you run your company’s books on an accrual basis.

#10: Find Ways to Deduct Cash

You can review your accounts to find areas where you might save money if you keep precise, current books. Utilizing tax deductions is one approach to achieve this. Saving is earning and therefore any successful property accounting bookkeeper will focus on this aspect. 

For instance, you can write off mileage, bookkeeping services, and education and training expenses. However, a lot has changed during the pandemic and will probably continue to do so to boost the economy. Keep up with any tax regulation changes that may affect what you can and should write off.

Also, remember to integrate your business strategy with your tax approach. Your best resource is a qualified CPA and advisor, but you may also keep up to speed by reading the tax guide for property managers available online. 

In addition to keeping you in the black, good accounting keeps your company compliant and lowers the risk of losses. However, knowledge is only one component of the puzzle; you must also ensure that the data you gather is high quality. Spending a few minutes each day verifying any new transactions that have come through is always helpful.

You can ensure that your accounting gives an actual image of your company and doesn’t obstruct your growth strategy by having a firm grasp of the principles, the accompanying technology, and the necessary discipline. If you have any more tip to become a successful property accounting bookkeeper then please let us know in comments.