Basics of Multifamily Property Management
Property managers develop the skill of handling several operations and dealing with countless tenants daily. When it comes to multifamily residences, their task can be a more complicated challenge. To boost their success, property managers need to keep clear, accurate records of tenant data, regularly perform maintenance and stay up-to-date about the latest trends to continually upgrade the property’s services and facilities for the benefit of tenants and the interest of owners.
Property managers are generally responsible for listing and showing vacant units, screening potential tenants, inspecting units for damage, handling tenant requests and complaints, and collecting monthly rent payments. Their role entails a wide variety of tasks that requires flexibility and good communication skills.
The multifamily property management industry is currently valued at $3 trillion dollars. While managing a multifamily complex may require more effort than managing separate single homes, it’s easier and more efficient since there’s no need to travel between different locations.
Before acquiring a multifamily property, property managers should take their time to thoroughly evaluate the property in terms of specifications and its value in the market. For example, managers need to think ahead when selecting properties to add to their portfolios. A building with great furnishing and varied spaces can be appealing initially, but it won’t be attractive for potential residents if it’s located in a bad area. Therefore property managers could face the obstacle of finding tenants.
Further, managers should assess the property’s place and value in the market. A high-rise building solely dedicated to studio apartments is not a strategic choice in a market occupied by big families. Conversely, a townhome with smaller units would be more valuable in a student-rich region such as college neighborhoods.
Once managers find the right property to acquire, they become in charge of improving its value in the market. Efficient upgrades can boost the property’s value and benefit tenants. Property managers can seek cost-effective improvements to cut costs while maximizing benefits.
For instance, large-scale improvements like water heater upgrades are done only once but impact the quality of all units. Property managers can split their costs among all tenants easily. On the other hand, some upgrades such as LED light replacements are completed per unit, so their cost multiplies by the number of available units and becomes a financial burden for tenants.
Tenant satisfaction reflects the success of the property manager. Property managers should employ useful strategies to maintain the property at all times to ensure the comfort of all residents. Conducting regular inspections can help managers identify problematic maintenance issues at an early stage and save costs.
Additionally, managers can divide the big workload of managing a multifamily property by recruiting staff members like maintenance technicians and assistants. Staff members can divide duties by floor or number of units to enhance work efficiency and ensure all tenants are attended to.
Property managers also handle legal concerns. By accessing state websites or local homeowner groups, managers can be familiar with the local property management laws. They may also consult with property management attorneys to review tax filing procedures.
In addition to property management companies, the industry includes rising tech companies specializing in designing and selling software programs to enhance different aspects of the property management process, including leasing, maintenance, and payments. Companies such as CoreLogic and TurboTenant focus on tenant screening while PayLease processes first payments and security deposits. Funnel harnesses the power of artificial intelligence in its lead management software to help realtors.
