Posts about Multifamily

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.

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.

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!

6 Tips for Pool Safety This Summer

Swimming pools are an enjoyable amenity for apartment communities, condominium associations and homeowner associations alike. However, if not managed and maintained carefully, they can pose great liability. Follow these six tips for pool safety to help ensure a safe summer. 1. Communicate your expectations for safe swimming and poolside behavior Swimming pool managers should clearly communicate acceptable poolside and swimming behavior to members. For example, rules should be shared via pool area signage, in membership application materials, through talking points included in the registration process, and on the website. Typical pool rules to be communicated include: No running in pool area No diving (in shallow areas, or in any part of the pool if it does not include a diving board) No wrestling or rough play No offensive language No prolonged underwater swimming or breath holding No glass bottles Non-swimmers must be accompanied by a parent/guardian at all times. 2. Implement safeguards for children. Pools can pose a great risk to children. According to the Center for Disease Control and Prevention , more than 700 children—about 8 per day—drown every year. And for every child who dies from drowning, an additional five receive emergency department care for non-fatal submersion injuries. These sobering statistics should spur pool managers to take special care to safeguard younger pool members, who tend to be non-swimmers or less proficient swimmers. Managers should remember that the best prevention is attention. Children should always be monitored closely by a parent or guardian and, if possible, also by a lifeguard. Pool rules should clearly stipulate this. Many pools also require children to wear color-coded wristbands that correspond to the child’s level of swimming ability. For example, a red wristband might indicate to the lifeguard and anyone in the vicinity that this child is a non-swimmer and should not be allowed in the water except when a parent/guardian is within arm’s reach. Some community pools may also have the resources to offer swim lessons or refer members to other locations for lessons. Swim lessons are another way to safeguard younger members by teaching them to swim more safely and become stronger in the water. 3. Keep the pool area safe. Many safeguards for the pool area are not only a good idea, but mandated by law in certain areas. Nearly all jurisdictions, for example, require any pool to be enclosed by a fence. And managers or homeowners should regularly check the latches of fence gates and the condition of the fence. Some surfaces become especially slippery when wet. When designing and installing a pool, homeowners or builders should research deck and pool perimeter materials and make selections based on safety, not merely on appearance. If certain sections of the pool deck are regularly wet and slippery, consider replacing those sections with other materials or applying non-skid adhesives. Finally, managers or homeowners should regularly survey the pool area. With regular walk-throughs, they can protect members and residents from simple dangers like tripping hazards, broken glass (if glass is not already prohibited), unlatched gates, et cetera. 4. Ensure a safe pool by monitoring the water quality and the pool drains. Maintaining the water quality of your pool is crucial. Most community associations and apartment communities hire a pool management company to ensure the right balance of chlorine or other chemicals that keep the pool clean. Commercial pools are required to test the water every hour that the pool is open, and to record their findings. For private pools, testing the water at least twice per week is recommended. Pool drains have also been shown to be a safety hazard if not covered property. Children are especially susceptible to suction entrapment if the drain has a missing or broken cover. Check your drain’s cover and make sure that it is compliant with the ANSI/ASME test standards. 5. Provide excellent staff training and encourage open communication. According to WPM Regional Property Manager Donna Sturdivant, the experience and skill level of the lifeguard makes the ultimate difference between a successful, injury-free summer and a pool season marred by incidents. “When a lifeguard is good,” says Sturdivant, “the pool has fewer issues with member behavior, rule infractions, and avoidable injuries and that creates a more positive experience for members. Problems are most likely to arise when lifeguards are not vigilant.” Sturdivant recommends that community managers meet face-to-face with the pool management company and lifeguards before summer begins and discuss what went well last season and areas where improvements are needed. This preemptive meeting also opens the lines of communication between community managers and the staff directly overseeing the pool, making it easier to address any problems that arise during the summer. 6. Make sure your closed pool is still a safe pool. Your commitment to residents’ safety continues even when the pool closes at the end of the season. Make sure that your pool is covered and/or partially drained, and the pool area is secured properly for the off season. And remember that rules about fence enclosures still apply, even when the pool is closed.

Building Smarter Buildings

The day to day demands of a property manager’s job are many: Nancy is cold again! Quick, go fix that heater! The toilet is stopped in the accounting department! Oh no! Gotta check that plumbing! There is another leak in the roof over the lobby! Really? Time for another patch! This non-stop barrage of daily demands makes it really tough for property managers to prioritize long-term strategies for extending a building’s life, over quelling the “tyranny of the urgent.” But insisting on high-performance strategies and best practices can improve the efficiency of the entire building (and radically improve a property manager’s quality of life) . In fact, by developing long-term strategies that keep all of a building’s many systems operating optimally, property managers can actually reduce the number of “urgent” requests that pop up and need to be attended to…quick! WPM’s President of Commercial Management and Construction Services, Mike Klein, asserts that a robust and proactive preventative maintenance program is the key to extending a building’s life. He describes the three levels of building care: 1. Reactive : As equipment and systems break, they are replaced or fixed 2. Preventative : The building’s many elements are regularly serviced to extend their lives and maintain efficiency 3. Proactive : Building equipment is replaced before it breaks or becomes inefficient “At WPM we believe that maintaining a high performance building requires proactive care, with a good dose of preventative maintenance mixed in,” Klein explains. “It may seem obvious that preventative building care is essential. But often, long-term planning falls by the wayside when things get hurried. It takes discipline to focus on a building’s future. But that is truly the best practice and what distinguishes successful managers. With a balanced approach to building management, property managers can add real value.”

Student Housing: 12 Months of Rent for 10 Months of Occupancy

Why do student housing units usually require college students to sign a 12-month lease, when students will only occupy the unit for the 10-month academic school year? WPM Regional Property Manager Karen Houston explains, “Buildings do not take a summer vacation. More importantly, the costs associated with maintaining a property never take a break. That’s why we allocate expenses across 12 months. The result is a lower monthly payment for students, which makes our units more affordable.” That said, some student housing facilities do, in fact, offer 10-month lease options. However, the 10-month option recoups the two months of lost income by requiring that renters pay a higher monthly rate or signing premium. In effect, 10-month leases end up costing the same as a 12-month lease—but provide less value. So many students get creative to make a 12-month lease work for them. “Students will stay longer into summer break than they otherwise might. Many may pick up a summer minimester course,” says Houston. Another way students can recover some of their 12-month lease payment is by partnering with property managers to find their apartment’s next renter. For Houston’s properties, renters who assist her in finding the new occupant will receive a resident referral fee, which is equivalent to about $250. “Student housing is unique because it is so transitory,” she explains. “Each year, about 50% of the building is turned over to new renters. This high turnover percentage means I am always marketing the properties.” Houston has found that her best marketers are actually the students who live in her properties. “If you want to know how to advertise, talk to your students! They are incredibly smart and tuned-in to technology and social media,” she says. “There is a perception that student renters will be irresponsible and cause damage to the building. But that has not been WPM’s experience. We have found them to be very socially conscious and eager to take their responsibility as renters seriously. They like it when you ask them questions and involve them in the process. Managing student housing properties has given me the opportunity to meet great kids from all over the world. They never fail to impress me.”

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