Blog Posts

Today’s Digital Customer Base

Before the internet, if you needed to get in touch with your property manager, you picked up the phone or marched down to the front desk in person. Obviously, all of that has changed for today’s renters and homeowners. They have multiple channels through which they can seek answers and access information about their community, including websites, Facebook pages, email and text. And increasingly, residents are managing more and more of their community needs through their personal online account. For example, WPM Real Estate Management makes it possible for residents to create an account, then download an app to their phones. The app allows them to address all their management needs—such as submitting a maintenance ticket, paying rent, checking their account balance or getting information about amenities—right from their phone. Benefits of Property Management Software For the most part, digital access has proven extremely helpful for both managers and residents. Modern property management software offers many benefits: 1. Communication. Using software helps to eliminate errors, as the software maintains an electronic record of all communications between property manager and the resident. Also, it helps property managers keep residents informed about the status of their requests—from confirmation that the request was received, to estimated time of a repair, to notification that the job is completed. Such regular updates might be difficult for a staff member to provide, especially if that individual is managing multiple properties. 2. Efficiency. Property managers can track and respond to needs more promptly. Plus, the software can help prioritize requests so that the most urgent ones are attended to first. Also, the software automates a lot the tasks that property managers used to have to oversee. 3. Customer Service. Because property managers can be more efficient, it’s easier for them to stay on top of resident requests and ultimately ensure resident satisfaction. 4. Convenience. An app that allows residents to manage all of their community needs via smart phone provides a valuable amenity for residents. Despite these many benefits, there are some disadvantages that savvy property managers work hard to avoid. “While the benefits of property management software are many, using software exclusively to communicate would virtually eliminate face-to-face communication,” cautions WPM Director of Multimedia Marketing and Communications Brent Gratton. “At WPM, we encourage managers to go out of their way to build rapport with residents and to look for opportunities for in-person interactions. For example, many of our communities host social events. Our managers make an effort to be present at these events and meet residents and hear about their experiences.” Gratton also cautions that, when it comes to communicating with residents, there is no “one size fits all” solution. “Software doesn’t always perfectly fit everyone’s needs,” explains Gratton. “Residents may have varying comfort levels with managing their community via an app. And some may prefer to receive communications through text messaging, while others may prefer email, while still others rely on paper communication.” Luckily, Gratton has a simple solution for property managers trying to determine their residents’ preferred methods of communication: “Ask them!” “When residents first apply to live in our communities, this is one of the first questions we ask. We want to make sure that our information is reaching them. But we also don’t want to annoy them by contacting them through too many channels or reaching out through media they don’t monitor.” Associations’ Digital Customer Base Property management software can also be advantageous for Associations. In addition to the benefits listed above, Association-specific management software centralizes the community’s information and makes it easier for board members to access and perform their responsibilities, such as managing contracts, financial reports, tracking delinquencies and submitting work orders. WPM recently adopted an association website software platform called SenEarthCo. “It’s so helpful to have all of a community’s information in one location,” explains WPM Association Management Support Supervisor and Executive Assistant Rita Dore. “Board members can tend to their responsibilities in real-time. And residents appreciate the convenience of accessing their information online.” Today’s digital customer base expects options when managing their community’s account. Good multifamily and association managers will do their best to communicate with their customers by whatever individual manners they prefer. Software often makes the job easier for managers and more convenient for residents. But there’s no substitute for a dedicated, attentive manager.

Association University

Julia Child once said, “You’ll never learn everything about anything, especially something you love.” The famed chef was speaking about cooking. But the same could be said about the field of Association Management. Even the most expert and seasoned Association Manager still has more to learn about this dynamic field. Fortunately, the opportunity for Association Managers to expand their knowledge has been made easy through continuing education. Continuing education classes can provide Association Managers with valuable information about industry best practices, the latest technology, new legal and regulatory guidelines, new management techniques and more. Continuing education credentialing programs can also lend credibility to an Association Manager’s expertise. One of the primary organizations that provides continuing education and credentialing programs for Associations is the Community Associations Institute, or CAI. This international membership organization provides information, education and resources to the homeowner volunteers who govern communities and the professionals who support them. “CAI provides a valuable service to our industry,” says WPM President of Association Management Barry Yatovitz. “WPM belongs to the Chesapeake CAI Chapter. Our Chapter regularly provides seminars on various topics, produces trade shows, hosts networking events and offers a wealth of information and resources on its website, CAIonline.org.” In addition to CAI programs, Association managers can also look to their vendors for additional learning about topics pertaining to Association Management. “Sometimes our vendors will invite us to forums on topics that range from litigation to landscaping to insurance to security,” explains Yatovitz. All of this education not only benefits Association Managers, it actually makes good business sense. “When Associations are shopping for their property management company, one of the things they look for is a team of professionals whose knowledge and training are current and whose expertise is deep,” says Yatovitz. “Managers’ credentials and continuing education participation offer one tangible, quantifiable way for Association Boards to assess a company’s expertise.” It’s important to remember the ultimate goal of all this learning: to benefit your Association. Learning for learning’s sake helps no one. Rather, Association Managers should take the valuable insights gleaned from courses and apply that knowledge to the Associations they manage to help them thrive. So, to all those Association Managers out there – go ahead and sign up for a course today! While Julia Child may be right that you can never know everything about anything, you can certainly try.

Multifamily Real Estate as Investment: A Client Perspective on 2018

Mark M. Caplan We recently sat down with Mark Caplan, WPM Real Estate Management’s Chairman – who is also an investor in multifamily real estate and is a large client of the firm – and asked him to put on his “customer” hat for a brief discussion about his perspective as a client about the multifamily real estate market for 2018. WPM: How would you describe the multifamily real estate investment market today? Multifamily real estate continues to be perceived as a desired property type. With significant amounts of capital pursuing limited transactions, low capitalization rates (5-6%) have resulted in higher sales prices for all properties both old and new. This has caused more money to shift towards development, particularly for more expensive rental units. As the supply of higher-end multifamily continues to increase, potentially faster than demand, the operating environment has become challenging for lower price points as well. WPM: How has this market changed over time? A lot of forces are at work. First off, the real estate industry – like the rest of the world – is becoming increasingly data-driven. There’s much more information available today regarding property performance. That’s critical because investors perceive access to more data as leading to less risk. The more you know about something, generally the more you’re willing to pay for it, because you’ve eliminated some risk by possessing additional context. Real estate is also increasingly considered and compared to other asset classes (stocks, commodities, etc.). The hierarchy of perceived risk has changed. This has resulted in more money flowing into real estate, further driving down returns. WPM: Where do you think the multifamily real estate market it is headed in 2018? Overall, I think it will remain comparable to where it was in 2017, absent something unpredictable and catastrophic. Perhaps there will be some hesitation on new projects as investors wait to see if what has been created is absorbed. Remember, residential units to be realized in 2018 were conceived in 2015/2016. Real estate doesn’t turn quickly, and projects conceived in 2018 won’t deliver until 2020. With more supply coming into market in 2018, and fewer new deals done, 2020 may see less of a supply/demand imbalance. WPM: What do you perceive the biggest opportunities to be in 2018? I think the areas that are most variable and challenging are office and retail – how people work and how they shop. If you feel confident in your perspective and are willing to invest, you have the potential to be really right or really wrong . I have a good sense of where people sleep and where they want to live, but work and shopping are changing quickly. Because real estate is less permanent, these types of investments are challenging, but they also represent opportunity. WPM: What do you think will have the biggest impact on investors/owners in 2018? At a macro level, the national and local economy are the two biggest external factors. I think the third is consumer preferences or residential preferences. We’re living through a time where people want to live in cities. But as millennials get older, and schooling and open space become more important, it could cause the suburbs to be more attractive. Transportation-oriented development has become more prevalent, the need for a car less so. Changing demographics of renters and the makeup of the student population at U.S. colleges and universities may also have an impact. WPM: How do you think the Baltimore market stacks up against neighboring markets (DC/VA/PA)? Politics and real estate are local. I don’t see individuals generally choosing between neighboring cities from just a rental perspective. That being said, look at Marc Train ridership between Baltimore and Washington. From a fundamental economic basis, Baltimore is compelling in that we have great transportation, higher education and a lower cost of living. But Baltimore has perceptual and real challenges right now because of crime. Baltimore could use a good year.

What is the Purpose of a Reserve Study?

A HOA/Condo board runs its finances in much the same manner as you probably do for your own family: a checking account funds the ongoing, predicted monthly expenses, while a savings account covers unexpected expenses or future repairs and replacements. For HOAs and Condo Associations, that savings account is called a reserve fund . And the careful monitoring of – and strategic planning for – use of the reserve fund is called a reserve study . A reserve study is an essential long-term capital budget planning tool for any thriving community. It enables HOAs and Condos to create a plan for funding ongoing deterioration, future repairs and replacements. According to WPM Community Manager Troy Painter, “the reserve study provides a guideline for managing projects for your community association. It tracks the existing life of major shared investments, such as roads or roofs, so that when something needs to be repaired or replaced, the HOA is prepared and has the funds ready to meet that need.” Painter cautions that it’s not enough to simply conduct the study and then put it on the shelf. “It should be a roadmap that boards consult quarterly to understand what projects are happening and to plan accordingly.” The reserve study is also intended to be a flexible guideline that informs , rather than a rigid law that mandates . For example, if a capital expense is planned for the current year, but an inspection reveals that the equipment to be replaced has several more years of usable life, boards can opt to delay replacement in favor of prioritizing other expenditures for that year. A reserve study offers homeowners another important benefit: HOAs and Condo’s are less likely to require special assessments if they routinely conduct a reserve study. “If you plan properly, you can often avoid collecting special assessments,” explains Painter. “Obviously emergencies happen and unexpected expenses may arise. But the goal is for the reserve study to predict what will need to be replaced and to maintain adequate cash reserves. That’s important, because the more special assessments a community collects, the more likely it becomes for delinquency to increase. Most homeowners can budget for their annual HOA/Condo fee. But an unexpected special assessment is beyond the reach of some homeowners. Careful review and planning by the Board/Management team of the reserve needs goes a long way towards sound fiscal management and avoiding special assessments.” When a board regularly conducts a reserve study, it’s indicative of the overall health of the Association. Properties are maintained on schedule. Residents are not burdened with unexpected expenses. And boards can devote their time to helping their communities thrive.

10 Things to Think About Before A Long Vacation

Whether you spend a lot or a little on vacation, the last thing you want on your return is to be greeted with a costly repair problem. Even a simple mistake, if left unchecked, can lead to major repairs. That’s why we recommend taking these 10 important steps to help ensure your property is protected and secure. 1) Program your thermostat correctly. Never turn off your heating or cooling system. Instead, set the heat no lower than 55 degrees when you leave for winter vacations, to prevent pipes from freezing. And for summer vacations, set your thermostat to 78 degrees, to keep humidity down while saving energy while you’re away. 2) Check your water outlets. Make sure your toilets are not running and ensure that no faucets are leaking. Check your hose bibs and if you can, turn them off from the inside to prevent any possible issues with freezing in the winter or leaking in the summer. You may even want to turn off the main water supply, though this is not recommended unless you have your home professionally winterized or you’re familiar with the winterizing process. If you do choose to turn off your water, be sure to also turn off your water heater (and your boiler, if you have hydronic heat). (Also see #6) 3) Check your sump pump. If you have a sump pump, check to ensure that it is working properly and is free of debris. You may even want to install a battery-backup system. Power failures, frozen pipes or excessive rain can all spell disaster for your sump pump and your basement. If your area experiences a major storm while you’re away, it may be a good idea to call a friend to verify that your pump remains in good working order. (Even if you haven’t left a key, you may be able to grant access through your garage door, or with a digital security system. 4) Check your windows. Make sure that all of your windows and doors are locked, weather tight, and shades are drawn closed. 5) Unplug everything that you can. Save yourself some money and reduce energy consumption while you’re away by unplugging everything but your timed lights and your security system. Don’t unplug your refrigerator, of course, but try turning it to a slightly higher setting. 6) Water your plants. Indoor plants need to be watered once every 7-10 days. Considering asking a neighbor to do this for you, or find a house-sitting service. For outside landscaping, you can install a soaking hose on a timer, especially if you live in a dryer climate – but do so judiciously, as any water bib left on could become a leak. If you opt to turn your water off, many landscaping services offer watering trucks that can water your yard or gardens for you. 7) Put baking soda in your drains and toilet to prevent any unwanted odors. There’s nothing worse than being welcomed home by odors that aren’t very welcoming! 8) Take steps to keep your home secure. If you have an alarm system, notify your alarm company of the dates that you will be away. If you do not, inform your trusted neighbor(s) that you are away and ask them to keep an eye on things. Be sure to remove any outside spare keys from the “usual” spot and put the key in a new place that only one or two people know about. Additionally, to make it not so obvious you are out of town, we recommend that you invest in a timer for your outside lights and perhaps one living room light that turns on for a few hours each evening. 9) Take out all your garbage. Empty your trash cans to eliminate odors and to make ants, rodents and other pests less likely to move in when you temporarily move out. 10) Stop your mail service. Visit the USPS website to fill out a simple form that requests that they hold your mail for the dates of your stay. Your local post office will hold your mail for up to 30 days. If you will be away longer than that, you can schedule monthly deliveries of your mail to your temporary address. You can also notify other delivery services and ask that packages be held until your return. With a little bit of preparation, you should be able to rest assured that your return will be no more stressful than your time away!

James Dahlgren, Jr. Selected for Maryland Daily Record’s VIP List

WPM Real Estate Management is pleased to announce that our own Vice President and Director of Business Development James “Jim” Dahlgren, Jr. has been selected as a winner for Maryland Daily Record’s 2017 VIP List . Please join us in congratulating Jim on this honor! The VIP (“Very Important Professional”) List recognizes Maryland’s leaders who are 40 years old or younger for their professional accomplishments, community service and commitment to inspiring change. Winners are selected by an outside panel of judges, which includes previous winners and business leaders. Jim earned this award because of his impressive career at WPM and commendable community service in our region. To learn more details about Jim’s career, community service and the VIP List award, please check out the press release on our news page. *** As part of this blog, we want to share a portion of Jim’s application for this award, as it sheds light on WPM’s care for our clients and how we view our role in serving them. Take a moment to read Jim describe in his own words his approach to property management: Through WPM, I have a positive impact on the lives of more than 36,000 people every day. I’m proud to work for a company built on the core values of integrity , strength , energy , and excellence . Our clients—commercial tenants and residential residents throughout the region—benefit from this commitment and can feel the difference. I like to say that we manage “little cities”: each property has a society and ecosystem all its own. Through excellent management, we improve the lives of the “citizens” in each micro-community. I also take very seriously the expectation that I am entrusted to manage people’s homes. If they own their home, it’s probably their most valuable asset. If it’s an investment property, then I’m tasked with keeping their investment safe. And if they are renters, then their rent is likely the highest bill the pay each month. They are trusting me and WPM with something very important to them—their home. I do everything within my power to earn and keep that trust. That’s a commitment that makes a difference. And the reward is seeing each community thrive as a result. I also do my best to positively impact my fellow WPM associates. I care about each team member and do my best to work with them in a positive, cooperative way. This ensures that our clients get the best service possible because they have a whole team of experts working together on their behalf. I believe that it’s because of this culture of mutual respect and collaboration that WPM has been named one of the “Baltimore Sun’s Top Workplaces” for the past five years. As for my impact on my industry, I have served as an instructor for the Maryland Multi-housing Association. It’s a privilege to teach other real estate professionals about our trade because there is a continuing need for professional management in this marketplace. Just scan the horizon in Baltimore and you will see the many cranes in the sky. Baltimore continues to grow and build and we need to make sure that there are people trained and ready to manage those new communities. Training excellent property managers benefits us all. With WPM, “property management” is more than just managing properties. It’s caring for people. We’re proud that the Daily Record has recognized Jim for his exceptional work at WPM on behalf of our clients.