As a professional property manager our objective is to lease space at a rental rate that delivers yield to invested capital. No yield, no capital. This basic principle gets lost in the day-to-day. Investors are seldom altruistic. They are results driven.
Creating Job Security
How do we create job security for our management company? In part by focusing on your customer. Who is your employer? Is it the person who signs your check (even if direct deposit)? Do you work for your vendors, suppliers and maintenance staff? The tenant, the baker the candlestick maker? Sometimes it’s all of these. However, our real employer is the property owner.
Granted, often the “owner” is represented by a wall of legalese and complex ownership structures. But at the end of the day every property is owned by an individual or group or entity that seeks a yield on their invested dollars. They are usually sophisticated investors. And they know professional property management is a large part of their continued success.
Investor/owners supply the capital/cash/equity to own the asset. And they select management. They have the right and ability to hire and fire. This is your employer.
One of your primary responsibilities as a property manager is to keep apartments leased for extended periods while limiting turnover. This keeps owners happy and creates job security for the property manager.
Owners are relying on you to manage their apartments in exchange for a management fee. If you are not up to the tasks, they’ll select someone else. Nothing personal.
How do you create job security? In part by delivering results that exceed expectations. Excluding references to the cheese always being moved, part of this is sharing measurable results. Provide this by taking advantage of every aspect of your property management software.
Delivering Reporting that Deliver
Too many property management companies deliver a minimum level of reporting. Income Statement, rent roll. Unit Expense Report, Cash Expenditures.
I’m not suggesting that you paper the earth (even electronically) but consider the depth of reporting available from your software and deliver up stream all aspects of operations that reflect how your good management is benefiting the property and it’s owners.
The not so surprising result is that ownership may retain your services for an extended period of time as they become accustomed to the high level of detail delivered versus other management companies in their employ. Even if everyone were using the same exact software, most minimize outputs.
Try expanding outputs- appropriately, and see how this endears you to owners. It may create a little more interaction initially, but the questioning will subside as the owner becomes even more comfortable with the fact they have a property management company that understands the assets in their care.
Along with this, remember to ask for a two-year management contract renewal….
Mr. Wilhoit is the author of two books: How To Read A Rent Roll: A Guide to Understanding Rental Income and Multifamily Insight Vol 1 – How to Acquire Wealth Through Buying the Right Multifamily Assets in the Right Markets. Multifamily Insight Vol 2 is set for release in 2015.
About This Blog:
Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily property management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. See www.multifamilyinsight.com.