The costs and benefits of property management are not always readily apparent to landlords. They don’t see the time and money that managers invest in their properties, but they do see rising monthly expenses. Accounting for your property management expenses is a way to help you understand the cost of managing your properties, monitor those costs over time, and optimize your return on investment by seeing how much profit you make from them.

Understanding these accounting concepts will also help you work more effectively with your property manager. Read this article to get an overview of common terms related to accounting for property management income and expenses, including which costs are considered direct vs. indirect expenses and what depreciation is as it relates to real estate investments.

Accounting for Property Management – Things You Should Know

What are Indirect vs. Direct Property Management Expenses?

Direct property management expenses are what you pay to directly manage and grow your property. For example, if you hire a property manager, the salary and benefits they earn are a direct expense of managing your property. Many indirect property management expenses are one-time costs that you may incur for things like repairs or upgrades to a property, or for marketing and advertising for your property. You generally won’t incur these expenses year after year.

Indirect expenses are typically non-cash costs that you may account for in your books as a prepaid asset or accrue as a liability until you actually incur the expense. For example, if you’re planning to hire someone to replace the roof on one of your rental properties, you don’t have to pay the roofer right away. You can accrue the cost as a liability on your books, and then pay it at a later date when the work is completed.

Depreciation for Real Estate Investments

 

Depreciation is an accounting method that allows you to recover the cost of an asset over a period of time. You may be able to deduct an estimated amount of depreciation for a property for financial reporting purposes, even if the property wasn’t acquired for the purpose of earning income. In the case of real estate investments, depreciation is used to account for the declining value of buildings, furniture, fixtures and other capital items over time.

As these items are used up and lose their value, you are entitled to offset that amount against your rental income to reduce your taxable income, thereby improving your overall financial position. The amount of depreciation that you can deduct depends on the type of property that you own. For example, you can use the straight-line depreciation method to account for the decline in the value of residential rental property over time.

Tax on Property Managers

Rental income is subject to state income taxes in Delaware. The amount of income tax that you’ll need to pay will vary based on your individual tax situation. The amount of income tax that you’ll need to pay on your rental property will be calculated based on the amount of income that you earn from the property.

For example, if you earn $40,000 in gross rental income and have an effective tax rate of 15%, you will have to pay $6,000 in state income taxes. The amount of income tax that you’ll owe on rental income varies based on your individual tax situation. The best way to determine the exact amount of income tax that you’ll owe on rental income is to create a rental income tax calculator. These calculators are very simple to use and will help you understand your tax liability.

Accounting for Repairs and Maintenance

If you incur expenses to repair or maintain a rental property, you can account for those costs in your books by listing them as an expense. You may prefer to list these expenses as a liability rather than an expense, however, if you can’t pay for the repairs or maintenance yet. On the other hand, if you are able to pay for the repairs or maintenance in a single year, you can list the expenses under a normal category, such as repairs and maintenance or property management.

You can account for repairs and maintenance in several ways: – You can record the cost of emergency repairs and maintenance in the year that they occur. You can record the cost of emergency repairs and maintenance in the year in which they are planned. For example, if you have to replace a water heater, you don’t have to account for the cost in the year that the water heater breaks down. You can account for the cost as a repair or maintenance expense in the year that you plan to replace the water heater.

You can record the cost of emergency repairs and maintenance on a deferred basis. If you don’t have the money to pay for repairs or maintenance when they occur, you can record the expense as a liability on your books. The liability can be paid off over time. This is typically done when the repair or maintenance work is expected to be completed in a year or less.

Accounting for Advertising and Marketing

If you spend money advertising or marketing your rental properties, you can account for those expenses in your books. You can record the amount spent as an advertising or marketing expense in the year that you incur it. Alternatively, you can account for the advertising and marketing costs on a deferred basis.

For example, if you agree to a three-year marketing contract, you can account for the annual expense on a deferred basis. There are a couple of ways that you can account for advertising and marketing costs: You can account for each marketing expense individually. For example, if you spend $300 one month and $500 the next, you can list each expense under the appropriate category in your books.

You can account for a lump sum of all marketing expenses in the year that they are incurred. For example, if you have a marketing budget of $1,000, you can list that amount as an expense in the year that it occurs.

Accounting for Agents’ Commissions

If you hire a real estate agent to list one of your rental properties for sale or to help you find a new tenant for one of your properties, you can account for the agent’s commission as a property management expense. Alternatively, if you are dealing with a tenant or a buyer, you can account for the commission as a liability in your books until the agent receives it. There are various ways that you can account for agents’ commissions:

You can account for each agent’s commission individually. For example, if you hire an agent to list one of your rental properties, you can record the amount they earn as an expense in the year that the property is listed.

You can account for a lump sum of all agents’ commissions in the year that they are incurred. For example, if you hire three different agents to help you list three different properties, you can account for the total amount that they earn as an expense in the year that you incur the expense.

Summary

Managing rental properties has its own set of accounting terms and practices. If you are new to property management, understanding these terms can help you make better decisions about how to manage your properties, and help you work more effectively with your property manager. To account for the expenses of managing your properties, you can use the following bookkeeping method:

AirBnB is one of the fastest-growing hospitality businesses around. If you’re thinking about partnering with AirBnB then here are important tips for AirBnB property managers or real estate investors.

In general, the rise of the sharing economy has given rise to new ways for people to monetize their assets. That’s why we’re seeing many more businesses sharing car services and homes as hotels. This trend is also great news for property managers and real estate investors who see a lot of potential in this market. After all, properties with access to services like grocery stores and restaurants are ideal for operating an Airbnb as a secondary rental unit.

7 Great Tips For AirBnB Property Managers

 

Know Where Your Audience Is

Before even thinking about partnering with AirBnB, you’ll want to know where your audience is. Airbnb operates on a global scale, but obviously, each market is unique. You’ll want to know where your guests are coming from, how many are coming from different regions, and what exactly they’re looking for in terms of location.

A good way to start is to take a look at the Airbnb website and see where the “Explorer” tab takes you.

The explorer tab is a way for you to explore interests in different places around the world. Take a look at the tabs that appear below the explorer tab to see the data behind each of those interests. You can also create a free ad on Airbnb to get information about the type of guests that are booking in your area.

Assign a Rep to Manage Relationships with AirBnB

Airbnb is a big business, so you’ll want to make sure you have someone who can help manage your relationship with them. While it’s not a requirement to partner with Airbnb, it will make it a lot easier to start accepting bookings once you go through the process of getting your account set up.

It’s also a great way to tap into a huge network of potential guests. If you don’t have someone in-house to manage this relationship, you can find an Airbnb travel agent who can help you get started. Travel agents have a relationship with Airbnb and an understanding of their systems, which will make the process go much more smoothly.

Understand Which Types of Guests Are Most Important to You

 

When you first start marketing your property on Airbnb, you’ll want to focus on getting as many guests as possible. However, as you get more and more experience with booking, you’ll want to start segmenting your guests based on the type of guest they are.

This will allow you to cater to the guests who are most likely to leave positive reviews and come back again.

You’ll want to focus on booking guests who are very focused on location, like business travelers. Alternatively, you’ll want to focus on booking families and other travelers who are looking for a particular experience.

Be Aware of By-laws in Your Area

You’ll want to make sure that you’re fully aware of by-laws in your area before you start booking guests and collecting money through Airbnb. In many places, landlords are not allowed to rent their properties on Airbnb.

During the process of getting your account set up with Airbnb, you will be asked to verify that you are the owner of the property. This can help you to avoid problems with local authorities and show that you’re fully compliant with laws and regulations in your area.

Provide the Basic Essentials for your Guests

Airbnb guests are looking for a certain type of experience, but they’re also traveling. That’s why they’re looking for places that have all the essentials. You may want to invest in some basic amenities like toilet paper, paper towels, and soap to make your guests feel more comfortable during their stay.

At the very least, you should make sure that your property has easy access to grocery stores, restaurants, and public transportation. You can even go as far as providing free passes to attractions in the area, which will make you stand out from other Airbnb hosts.

Show Off the Unique Features of your Property

Airbnb is at its most fundamental marketplace for people looking to rent rooms in other people’s places. You will want to be sure that you are highlighting the unique features of your property and including pictures and descriptions to make your place stand out.

This is an opportunity to show off the personality of your property and why it’s such a great Airbnb. You can also use this opportunity to show potential guests that you are attentive to their needs and have provided great amenities.

Don’t Forget About Other Important Groups in Your Community

While you’re busy booking guests and hosting people in your home, don’t forget about the rest of your community. There are many ways that you can get involved with your local community as an Airbnb host. You can get involved with charities in your area or offer free stays to people who are doing good work for the community.

This will help build a positive reputation for your Airbnb and give you something meaningful to talk about with your guests. You can even tap into the power of social media and join the conversation about home-sharing on Facebook.

Whether you love it or hate it, Craigslist is still a top resource for folks looking to rent an apartment. Here are 8 tips for compelling craigslist rental listings. Some landlords and property managers may avoid Craigslist because the interface is somewhat basic compared to some of the more advanced rental websites available today, like Trulia and Zillow.

However, if you disregard Craigslist, you risk leaving out a sizable portion of the market. Instead, appreciate Craigslist for what it is: a very well-liked platform that offers free advertising.

People frequently discuss their unsuccessful attempts to advertise rental apartments on Craigslist. Take a step back before you lose patience with the website. How well-written were the ads you placed on Craigslist? In our experience, ads on Craigslist that don’t do well frequently benefit from a bit of updating.

8 Tips For Creating Compelling Craigslist Rental Listing

#1: Utilize Multimedia in a Creative Way

Imagine that you’ve created the most descriptive advertisement ever. People will STILL be curious to see how it appears. Therefore, you have two options: schedule a viewing for each potential tenant, or incorporate multimedia in your advertisement (pictures and videos).

Before they enter the flat, they may get a feel for it through images and video. You immediately do yourself a disservice if you don’t add photographs on Craigslist because many users restrict their search results to only include listings with photos. Without images in Craigslist listings, it appears as though the apartment may not be in fantastic shape. If not, why won’t the owner want to flaunt it?

The most effective advertisements are those that use multimedia in inventive ways, displaying interior and exterior areas. Please make a video tour of the house, then post it on YouTube with a link in your Craigslist ad. You’ll get more quality leads as a result since you’ll be able to tell that people who contact you are genuinely interested in the property you’ve shown them.

#2: Use Illustrative Headings

When looking for rentals on Craigslist, individuals skim the headlines for terms that suggest a listing that matches their requirements rather than clicking on every post. Few people will bother to click on it unless your title is evocative, alluring, and truthful.

Consider using a headline like “Family-friendly 2BR unit in Coolidge Corner, steps from the T” instead of “Great apartment in one of Boston’s greatest suburbs.” As you can see, the former gives a potential tenant very little information on the apartment itself. Still, the latter specifies the size and location and suggests that the home would suit families.

Consider conducting an A/B test if you are unsure whether headlines will be effective: Use two different headlines to promote the same product, and then assess which one performs better (based on the quality of leads and inquiries).

#3: Avoid Using Formatting That is Spammy

Many headlines contain exclamation points and are written in ALL CAPS. Your adverts appear spammy because you effectively yell at potential tenants to catch their attention. Instead, use eye-catching headlines to persuade potential tenants to click and check out your listing.

#4: Create a Comprehensive Copy

Put yourself in the position of a renter. What information would you want to know if you were looking for an apartment on Craigslist? We advise at least adding the following:

• A description of the property’s condition: Is it more aged? Modern? Recently remodeled?

• A description of the property’s layout: Is the design open or closed? Which rooms are the largest?

• What does the advertised rent include? Heat? Warm water? Electricity? Parking?

• What amenities does the property provide? A laundromat? A gym? Outside area?

• Describe the basic terms of the lease: If it is month-to-month or for a year. What security measures will be necessary for the apartment? Initial rent payment? Rent from last month? A deposit for security? Do you need a background investigation? Employment screening landlord testimonials?

• When will the home be made accessible for rental?

• Where is the building situated? Is it close to the main roads or public transportation?

• Does the property allow pets?

This information will assist you in eliminating candidates who would not be interested in renting the apartment based on these standards. Fewer leads may be generated as a result, but they will be higher-quality leads. By responding to common inquiries from applicants, you’ll also reduce the number of pointless emails and phone calls.

#5: Make the Listings Unique

Landlords and property managers frequently design a single basic ad that they utilize across several listings. Avoid using this tactic unless every unit’s specifics are identical! You can only post 20 advertisements daily on Craigslist, and the website may flag them as spam if they are similar.

Additionally, you risk losing the person’s confidence if you use a generic ad to draw them in and they discover that the rental property is very different from what was described. It’s not a good way to begin a relationship.

#6: Don’t be Discriminatory

Ensure your listings don’t break local, state, or federal fair housing regulations. Some people, for instance, do not recognize that this is often regarded as discriminatory and write, “Section 8 is not welcome.” You should not refuse to rent to families with children, with few exceptions. Review fair housing legislation if you’re uncertain about what is and is not acceptable.

#7: Indicate how to be reached

This seems quite apparent, no? It’s incredible how many individuals neglect to add their contact details in their Craigslist advertising, though! The body of the Craigslist ad should contain your full name, business, phone number, and email address. Yes, someone can contact you by utilizing the “respond to” feature on the website. However, providing direct contact information lends legitimacy to the advertisement and eliminates a step from the process.

#8: Once a Vacancy is Filled, Remove the Ads 

A most important tip for Craigslist rental listings

Take down your Craigslist listing as soon as a tenant signs a lease for a particular unit. There are two reasons: The first benefit is that it stops you from receiving too many emails. Second, it keeps people from getting upset when they get in touch with you to find out the property posted isn’t available. People won’t be as willing to approach you about your other listings in the future as they were before that experience.

Landlords and property managers can use Craigslist as a terrific online tool to reach a bigger audience of potential tenants. Make sure your Craigslist ads are top-notch as we approach the busiest leasing season by using these suggestions.

 

 

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.