Property Management – Calabasas

Owning apartment buildings and multifamily properties is not for the faint of heart. Managing multi-unit properties presents it’s own special list of challenges, skills and talents.

When it comes to managing your property you have two choices. You can manage the property yourself (and if it’s a small property chances are this will be your only option if you plan to have a cash-flowing property) or you can hire a third party management company.

You, your team, or your manager, must have skill sets and experience in at least the following areas:

Great multifamily property managers are hard to find. But know this: Your property manager is the number one person on your team.

Managing Your Multifamily Property Manager

Your level of involvement with the management of your property is up to you—it is not a decision your manager should make. You determine what protocols and procedures will be set forth in your management agreement. And you determine how often your manager reports to you.

The key to successfully managing your asset is to put solid systems in place. The best time to do this is at the beginning of your relationship with your manager, not as potential problems develop. It’s much harder to make adjustments after your manager has had a free hand and is accustomed to managing your property his/her way.

You’re less likely to hear your manager say, “Well, we’ve always done it this way, I’m not changing now” when you’ve established upfront how you want things done.

Here are some great systems to put in place:

Rental Property Accounting

There are many multifamily property management software programs on the market today. Most commercial property managers use software programs such as Yardi, AppFolio, Rent Manager, RealPage and Tenant Pro.

Here’s the important thing to note: Be sure your manager actually knows how to use the software. Before hiring a property manager ask to see and review sample reports from the properties he/she is currently managing. Property management software programs are designed with integrated accounting systems and comprehensive reporting—but the old adage “garbage in garbage out” still applies even when your program has all the bells and whistles.

Tip: Request online access to your property reports. Most property management software programs have an owner portal. Have your manager give you the appropriate log in information so that you can access your property reports 24/7.

Here are the reports you must receive and review regularly:

These reports will cover all property income collected and all invoices and expenses paid. Plan to review these reports as needed. For example, you may want to review them on a weekly basis at the beginning of your relationship then bi-monthly or monthly as you gain confidence in your property manager.

Note: Your manager should also provide an Annual Budget Forecast. These are your projections for income and expenses over the next 12-months. Do not prepare an annual operating budget for your multifamily property or apartment building and then file it away and ignore it.

Multifamily Property Rent Roll

Along with leasing reports I like to see a Rent Roll on a regular basis—at least bi-monthly. Your property Rent Roll should be kept current at all times and available to you online. At a glance you can see, among other things, your vacancies and collection status—two items you must always watch closely.

A good Rent Roll will include: Unit number, unit type and square footage; resident name, move-in and move-out date; lease term and expiration date; rent (current and market); security deposit; starting balance; additional income such as parking fees and storage fees; all other charges (late fees, utility reimbursement, etc.); and amount paid and balance due.

Leasing and Marketing Residential Investment Properties

It’s up to you how often you receive leasing and marketing reports. Leasing is such a critical part of property management that’s it’s a good idea to ask your property manager for weekly updates especially if you’ve purchased a property with high vacancies.

Your weekly leasing and marketing updates should include:

Responsive Property Management: Maintenance and Renovations

Establish a system for resident maintenance requests.

How will your residents contact your property manager when they have a maintenance request or other questions? Who will follow-up with your residents? And when? Set established procedures for your residents and manager to follow. Your manager should be on top of resident complaints and requests for maintenance 24/7. Set deadlines for returning calls and written requests.

You should approve all property renovations. Here’s an example of not leaving it up to your property manager. I had an 18-stall carport at a property that was in need of a new roofing membrane. A simple repair. I asked our property manager to get a bid on repairs, which he did. However his bid included complete gutter replacements, new downspouts and replacement beams in addition to the new roofing material. All but the roofing material were unnecessary improvements.

The lesson here is don’t leave renovation decisions in the hands of your property manager.

You can put a clause in your management agreement that states the manager must secure your approval for any expense that exceeds a certain dollar amount—a dollar amount set by you.

Community and Resident Relations

Plan to have periodic conversations with your manager about your property’s community. How would your manager summarize the residents at your property? And more importantly how can he/she positively influence relations with your residents?

Some of the things your manager should be proactive about are:

The Know-How to Increase Income and Lower Operating Expenses

Property managers who have experience as both a manager and a multifamily property owner can bring a lot to the table in areas such as:

It’s been my experience that the best multifamily property managers own multifamilyinvestment properties. Look for this type of manager and make good use of their talents. A good owner/operator manager can help you improve your property revenue, decrease property expenses and increase the value of your property.

Legal Issues

From time to time legal issues will arise at your rental properties. Be certain your property manager uses attorneys who are experienced in real estate law and residential and commercial landlord representation.

Put procedures in place for:

Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda,Porter Ranch, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can serve your area.