Posted by Nate Burnes on Thu, Sep 02, 2010
Assisted Property Management (APM) is a cost effective way to manage your property. APM combines the best aspects of a full-service management solution and self-management. Below are the top 5 reasons to use an APM Solution:
1. Control your costs
An Assisted Property Management solution allows you
the ability to easily control what you pay for. No more will you have to ask, “What does the 7% management fee go towards?” You control what you pay for. You have the power to mange your property on your own or with the help of a property manager – you customize to what works for you.
2. Access to Professional Property Managers
Use the professionals as a safety net. Let’s face it, most of what needs to be done to manage your property you can do, but there are times when you might get in over your head and need the help and guidance of a professional. With the APM solution you get access to the professionals when you need them.
3. Customized web-portal for your property
In a single, password-protected site you can manage all your property information. Store documents; share them with other board members, tenants, ect. List the property preferred vendors, contact information, contracts and pricing agreements. No longer will the information be on someone’s hard-drive, or in their head. Easily communicate property information with the easy to use site.
4. Email reminder system
Be sure to never miss a key property date such insurance renewals, fire alarm inspections, filing tax forms and more. Let the system prompt you with an email that a date is coming up and it’s time to act.
5. Property Calendar
Let the site host a property calendar. Easily share all activities and events on the calendar. Be sure everyone knows what’s going on at the property. No more surprises. Increase property communication.
For more information about the Assisted Property Management Solution click here.
Posted by Nate Burnes on Tue, Aug 31, 2010
Case Study #1: 5 Unit Condo AssociationThe board of a 5 unit Condo Association was self-managing their property and had their own accountant but were interested in having access to an experienced Property Manager to get involved as needed and provide certain services. Services the board was interested in included:
• Fielding emergency calls
• Holding keys to the property
• Capital Project Management
• A Property website
Additionally, this condo association was not willing or able to pay a great deal for this support.
A Placeforce partner property management firm was able to offer all of the above services through the Assisted Property Management
solution. The management firm spent a total of about 3 hours collecting property information and setting up the custom website. Included in the site is a list of the additional services that the management firm offers, which has since brought in new work to the firm.
The property gained a website that housed all their information including vendor list, contacts, a property calendar with key events listed, storage of documents and files and more. The property also gained the piece of mind that there is a professional property management firm that they are able to call upon to help take care of the property.
Cost: The monthly cost to the property is $49.
Posted by Nate Burnes on Mon, Aug 30, 2010
In late July I posted the above question to a Linked In group called Property Management Professionals. This is a group of folks involved in some form or another with Property Management. There was a great deal of discussion and some interesting comments about the topic.
The question is that with the increasing pressure on cost 
containment combined with the availability of easy-to-use technology is there still a need for the full-service property manager. The analogy I used was the gas station as they used to all be full-service, but now it is far more common for a gas station to be self-serve saving the consumers money.
The comments posted were a combination of thoughts. Generally the conversation can be broken up between the balance between the human element in property management and pressures to reduce costs and increase efficiencies.
1. Human Element in Property Management important
There is certainly a consensus that the effectiveness and abilities of the property manager is important. A few quotes from the discussion:
‘……..it’s not so much about the money as it is about the PEOPLE.’
‘....the human services offered at a property or a company are the only way to compete for quality tenants.’
‘Primarily this is a Service orientated business.’
I do not think there is any argument to be made that personalities and capabilities of the individual and of the management firm play a large role in effective property management.
2. Importance of saving money and increasing efficiencies
In contrast to the human element discussion is the expectation and demand to save money. Like it or not, the human element costs money. There is the ever-important goal of delivering more service for less money. A few quotes from the discussion:
‘…..if you do not adapt to market changes, you will slowly disappear.’
‘The decision makers you encounter are trying everything the can (sic) in order to control dollars and retain tenants;’
As with any service, property management does, and must continue to change with the times. There will always be market pressures to deliver more service for less cost and those firms that are able to figure out the best way to do that will come out on top.
Conclusion…..’Have it your way’
There were a few additional analogies that were brought up during 
the discussion. The ‘self check-out’ at a grocery store is better than the original gas station analogy. But the one I like best and is where I see property management going was brought up by Thomas Kenny. He brought up the old Burger King ad campaign, ‘Have it your way’. To me this is perfect. Properties should, and can customize the level of property management service they get. They can choose what they want to pay for, what will be automated and what they will do themselves. This balance is called Assisted Property Management and can be, and likely will be, different for each property.
So thank you Thomas for bringing up the Burger King ad campaign and thank you to all who participated in the discussion. This is certainly an ongoing discussion as the market continues to evolve.
Please comment and let me know what you think.
Posted by Nate Burnes on Fri, Aug 20, 2010
Assisted Property Management is a property management solution for both property owners and property management firms. It is a hybrid solution in-between self-managing a property and full-service property management. It provides for management customization so you can be sure the ‘right’ level of service is delivered by the management firm.
A New Option for Property Owners
The Assisted Property Management option enables the property owner to manage their property exactly how they
like. Each owner has differing levels service needs and wants, with the Assisted Property management option they get to create exactly what they want.
The ‘right’ level of service can range from 100% self-managed to full-service by a management firm and everything in-between. Through the Placeforce software the owners can fully manage their property. Features include:
• Documents storage
• Event tracking and management
• Property calendar
• Email reminder system
• Contact management system
Additionally, and perhaps most important, the software provides a template for the property owner to fill out to customize the site to be sure all the relevant property features get identified and addressed (i.e. location of water & gas shut off, property insurance expiration dates, property vendors…). The owners have the ability to fully manage their own property based on the best practice guidelines from experienced property managers.
There may be times however, when the owners want the help and guidance of a professional manager. In that case, they can request service from the professionals and pay for service as needed. Owners may want help preparing next years budget, or help coordinating a construction project, or any number of other service that a management firm is able to handle. Instead of paying for those services all year, the owners can simply pay as they go.
And for the Property Managers
The professional property managers have the ability to manage all the information associated with their properties in the site. This is a single repository to manage the information that has the same features as mentioned above. Additionally, management firms can easily track any service request from their properties and even print out property reports showing all relevant information and activities. Managers can receive the email notifications when there is activity at one of their properties - an easy way to stay on top of the properties and provide excellent service.
Best yet for the management firms, they do not have to provide the day-to-day management of the property. As a result, they can take on many more properties to manage. They will end up servicing each of these properties based on the property needs and often end up providing those additional services for which they typically earn good margins.
A Win-Win Scenario
This is truly one of those win-win scenarios. The ability to customize the management structure for the property works for both parties. This is a low cost option for both parties and enables them to easily reach the right balance of property management.
Please be sure to post and comments or thoughts
Posted by Nate Burnes on Mon, Aug 16, 2010
As someone living in a community or association being professionally managed there is nothing more frustrating than not have your phone calls returned by someone who you are paying to service the property. More often that not it is, in your mind anyway, a simple question that you have and are looking for an answer. So why does the property manager either take so long to return you call or not call at all? 3 reasons:
1. Rationalization of ServiceProperty managers only have so much time in the day. They need to be careful where they spend their time. For every call they
receive from you, they are getting dozens more from other residents at different properties. Perhaps they have too many properties they are responsible for, but in the end that manager needs to make sure he or she is giving equal level of service to all their properties.
In a given month you may have an unusual number of issues that you need addressed. While your manager is addressing your issues, he or she is not addressing the other properties’ issues. It often becomes a balance for the property manager to address the most pressing issues first while not irritating other customer too much.
2. No News or Bad NewsMay times you are calling simply to get an update on an issue. When will the elevator be fixed? Why is the paint chipping in the common areas and when will it be fixed? What is that smell? Depending on the manager’s personality they may avoid taking the call and/or returning that call all together if they don’t know the answer or know you won’t like the answer. Some people just do not like giving bad news
3. There are more important issues to deal with
Like it or not, there are pecking orders when it comes to how businesses treat customers. And that is not only true in property management, but in every business across industries. Property managers, whether they mean to or not, treat their customers differently. It could be because they make more money off a certain customer, or a personality issue, or they may know why you are calling and simply don’t want to deal with that issue right then. Whatever the reason, there are times when the property managers feel they have more important issues to deal with than calling you back.
And this all means……So what does this all mean? How can you use this information to get better responsiveness from your manager and get them to call you back? I wish there was a good answer to those questions. Like many businesses, property management often comes down to individual personalities.
One thing to take away from this is that you have options. There are many property management firms out there, there is self-management and there is the new
Assisted Property Management that gives you control but still allows you access to the professionals. Property Management is not always as easy as it seams, especially when you simply want a phone call back.
Posted by Eric Swardstrom on Fri, Aug 06, 2010
Second home ownership is one of the fastest growing sectors in the real estate industry and one set to rise dramatically over the next decade due to the confluence of very powerful demographic, socio-economic, and cultural trends in American society.
Many different types of people buy second homes, but the target market is dominated by higher-income young retirees and Baby Boomer households.
Baby Boomers, who total 79 million Americans, have reached or soon will reach the stage in their life when they have the time, financial means, and lifestyle orientation to buy second homes. Additionally, technology, greater work flexibility, investment potential, and a desire to have gathering places to bring extended families together combine to make second-home ownership increasingly attractive.
Increasing work flexibility may be the most important trend behind the rising appeal and demand of second home ownership. Technological advancement (cellular phones, Blackberries, laptops, other electronic gadgets, nearly ubiquitous internet access), combined with workplace culture and employment structure are creating interesting alternatives to the traditional workplace. It is becoming increasingly easy and common for mid-level and senior staff to telecommute for short-term periods.
Conducting office paperwork in the morning with breathtaking views of the mountains, taking a break in the afternoon for a swim in the lake, returning e-mails in the late afternoon from the veranda overlooking the forest - all of these functions are possible in a luxury vacation home.
Most people buy and own second homes for their own use and enjoyment. But demand is also shaped by the current and expected value of the property for investment. For a significant number of buyers and owners, investment potential - for oneself or one's children and grandchildren - is the principal motivation to own or buy.
In addition to low interest rates and demographics, the second-home market has been helped by the Taxpayer Relief Act of 1997, which established new rules for the treatment of a capital gain on a principal residence.
Under the old law, taxes on gains were deferred if the seller bought a new home of equal or greater value up to two years before or after the sale of the primary home. Also, sellers over age 55 could claim a one-time exclusion of $125,000.
But new, liberalized rules repealed the mandatory gain-deferral and raised the exclusion to $500,000 for married couples filing jointly, provided a taxpayer owned and used the principal residence for two of the five years preceding the sale date of the home. Moreover, the exclusion now can be claimed every other year.
In addition to putting more money in potential buyers' pockets, the change has "liberated" sellers from the pressure to trade up to avoid a tax hit. Instead, it seems to have encouraged some sellers to trade down to more modest digs, while using the remaining proceeds to purchase second homes.
Buying a summer home used to be as simple as paying a few thousand dollars and getting a cabin near a lily pond.
Now, however, as more Americans own vacation homes -- the number of recreational second homes has risen roughly 25% since 1989, to 5.1 million, according to the National Association of Realtors -- an array of new options is gaining popularity. Developers are increasingly targeting buyers who want the convenience of a full-featured second home, without the hassle of actually owning it.
This article provided by Condo Hotel Center, www.CondoHotelCenter.com.
Posted by Eric Swardstrom on Thu, Jul 29, 2010
As a former property management sales professional, selling mostly to smaller condos in the Northeast, I was constantly forced to justify my pricing when compared to my low-balling “competition.” Low-ballers offer services for around $25 per door in this market. These firms would promise an assigned property manager, property walkthroughs, full accounting with bank reconciliation, monthly meetings, meeting minutes, project coordination, collections, and a whole lot more for only $225 a month to the board of a nine unit building. How can anyone, even an independent manager, offer all of these services at such a low price and not lose money?
How Low-Ballers Operate
As I learned more about their operations, their pricing schemes became more understandable. Low-balling firms make money for two reasons:
1. They ration services by loading a manager with three times the number of properties compared to the number we allocated. Managers were “chained to their desks” working more like air traffic controllers in a power failure – just trying to keep everything from crashing. Only the most persistent owner or trustee would get their problems addressed.
2. The real profits were in other services that they coordinated or performed at the property. Property management was a loss leader. Margins and “commissions” were much better in cleaning, maintenance, and vendor projects. Unfortunately for the customer, the savings on management services was more than offset by the excessive cost of maintenance and other services.
We are Selling Time
It wasn’t difficult to justify our pricing to larger properties or to the smaller properties with high service level expectations. Once a board member understood the time its takes to do things like attend meetings, process bills, handle phone calls, coordinate vendors, prepare financial statements, and inspect the property, a $225/month price sounded ridiculous.
What about small properties with minimal needs?
But there was still a group that I could not sell to – the property that could not afford our minimum full management pricing. Offering a lower price for scaled back full management wasn’t an option because the risk wasn’t worth it. One bad electric meter, or a problem tenant, and profits could be shot for the year.
I could tell them they would receive less service from the low-baller. I could tell them they would end up spending the same or more when factoring in maintenance and vendor contracts. But I learned that it was best to thank them for the opportunity and wish them luck. Because I knew I could not deliver our product at the low-baller price.
Times have changed and the Low-Baller no longer wins
We offer a service starting at $39/month for properties with 10 units or less. Properties get access to the professional tools and information they need to operate. Properties get access to a full service property management firm when they need it. And properties only pay for the services that they need. This includes emergencies. And both the firm and the property owners benefit because the prices are fair, the costs are low and the risks to the firm are eliminated.
In this new model, the firm is no longer a managing agent but a service provider. The owners are responsible for managing their property. We provide the tool and expertise so that they manage better. They request from a menu of services and the firm responds because the firm has access to the key information about the property. The firm can now honestly compete and beat the low-baller. And best of all, potential customers are no longer being turned away.
About the Author Eric Swardstrom works with property managers and their service providers improving efficiencies, revenue, and customer satisfaction. He is currently one of three founders of Placeforce, an online service that offers inexpensive, easy to use tools for property managers, condominiumns, and homeowner associations.
Learn more at Placeforce.com.
Posted by Eric Swardstrom on Thu, Jul 15, 2010
The spectrum of property management reaches from self-management to full-service management. However, in today’s difficult times, we are finding that the spectrum is not necessarily continuous. There exists today an unmet need between the self-managed properties and the full-service properties. With a little creativity and use of technology, property management firms can capitalize on this unmet need and tap into a set of previously unserviceable customers.
GAP BETWEEN SELF-MANAGED AND FULL-SERVICE MANAGEMENT = THE OPPORTUNITYProperty Managers around the country are all challenged to grow their businesses in this increasingly competitive market. Customers are demanding more service for less money. In many situations, firms are forced to turn away potential customers because they cannot afford to service them at the demanded fees.
This can leave a large population of properties that are not receiving the services they need. Properties too, are feeling the strain of the economy and look for ways to save money. For those properties, one option is to forgo full-service property management and to self-manage their property. They save full-service management fees, but is their property being properly managed? Perhaps, but likely not, and is it wise to chance mismanagement of this most valuable asset?
Here lies the opportunity.Properties demand services yet are not willing or able to pay for the
full-service property management. Management firms, while they have the expertise, are unable to service these customers profitably. Thus, we have an unmet need in the marketplace.
THROUGH TECHNOLOGY, EXPAND THE PIE
Property managers have an opportunity to expand their reach to service these previously unreachable customers. They have the opportunity to expand the pie and provide service in a market that has a great number of potential customers.
With the technologies that exist today property managers can, in a very efficient manner, systematically provide a level of their expertise to the market and let these properties ‘self-manage’.
Why would property managers provide their expertise to the market you ask? Simple, because they are then able to access these previously unreachable properties and with that comes a nominal monthly fee along with the ability to sell their ‘other’ high-margin services (accounting, cleaning services, budget preparations….).
And the benefit to the property?They get a playbook from an experienced property manager without the cost; they get the technology; they get the safety net of the management firm should they need it and perhaps most importantly, they get the peace of mind to know that their most important asset is well managed.
A WIN-WIN SCENARIOBoth the property management firms and the properties end up ahead. Granted this is a slightly new way of thinking and offering service to the market, but times change and we all must evolve with the times and adapt to the new market needs. Those property management firms that can act quickly can rapidly gain a foothold in this new space and watch their business take off.
Posted by Nate Burnes on Fri, Jul 09, 2010
I am sure many of you have heard of the concept of the Long Tail. If not I would recommend reading Chris Anderson’s book The Long Tail.
In a nutshell the theory of the Long Tail is that our economy is shifting away from focusing on the mainstream products and markets, of which there are relatively few. Instead, the focus is shifting to the masses, which are located at the tail of the curve. By reaching the masses the market actually becomes much larger than focusing on the big few. This is quite a powerful theory and is clearly evident in different parts of out economy.
So what does this have to do with Property Management?
The game within the property management market is for firms to manage as many properties as they can providing they are making money on each. Obviously it does not make sense for a PM firm to manage a property if they are losing money. How much money the firm needs to make will differ from firm to firm, but there is a minimum that they must make.
As a property owner you want to get the best service for the least cost. Nothing novel there. Owners of smaller properties are increasingly looking at self-managing their property. A great cost savings, but do they have the experience and expertise to manage their most important asset? Sometimes yes, but more likely no.
This is where The Long Tail comes into play. Property Management Firms need to focus on the properties that can afford to pay them the full service fee. However, what if there was a way for them to service the properties that are unable to pay the full fee? What is the cost to service a property went down? The number of smaller properties (anywhere from 2-25 units) is growing throughout the country. Wouldn’t it be great if the Property Management Firms could service these properties?
Access through Technology
There are a great many software packages out there aimed at the property management space. Many are helpful and serve a great purpose. However, when it comes to transferring best practices around the operations of a property the playing field is sparse.
With the advancement of technology (especially cloud computing) property management firms can offer their expertise to the smaller properties and still come out ahead. Simple to use tool enable property owners to store, manage and track all the relevant property information at a fraction of the price of full-service fees.
A win-win Scenario
Property Managers
• Access to ‘new’ customers
• Addition service offering
• Access to new revenue streams
Property Owners
• Can build brand as knowledge leader
• Ass to experienced professionals
• Low-cost option; can pick and chose what service you want from the firm
• Safety-net of the PM firm to help
This is a different way for property managers to think and a new offering they can provide to the market. Those managers that have the vision can take advantage of the technology available to them and put themselves in a position to capture a whole new set of customers.
Part of the beauty of this is that the property management firms can still differentiate themselves by customizing their offering. Some may decide to offer accounting only, others may simply offer the best practices and set up. The firms can provide a list of all the services they can help the property owner with and let the owners chose what they want. This way, both parties are getting what they want.
Posted by Nate Burnes on Mon, Jun 28, 2010
As a Property Manager you are constantly struggling with managing your existing customers while trying to grow your business. There is always a competitor trying to take your customers. You need to be sure you provide the best possible service to your customer. Read below to learn about our time-tested keys to property management:
1) Know your client's property better than they do
Information Overload
You capture a remarkable amount of information about the properties you manage. There are three-ring binders and filing cabinets holding countless maintenance policies, contracts, and customer documents. There are electronic files holding gigabytes of files including legal documents, contracts, warrantees, and plans; and then there are the thousands of emails and calendar entries.
You use complex and expensive transaction processing systems to enter invoices and payments for your condominiums, HOAs, and apartments. You conduct regular meetings with trustees, board members, and owners and write extensive meeting minutes.
You have spreadsheets for everything imaginable.
And yet it can still be a challenge for a new maintenance technician to find the water shut off, for an on-call manager to quickly identify the right elevator company to call in an emergency or for an assistant to communicate the coverage and limits on the master policy to the new unit owner.
The right information, at the right time, for the right people
Having information is one thing, but having the right information, at the right time, for the right person is something that only the most effective can achieve.
The Internet has changed the way business is done everywhere, even in property management. Information no longer needs be locked in file cabinets or stored on inaccessible back room servers. Daily you are making key decisions about your property. Make sure you have the right information available to you whether you are at your desk or on-site at the property. Share information with your customers, vendors and other stakeholders. With encryption and access control, you can be sure that only the right people see the information they need. Everyone that services, lives, or is a key stakeholder of the property has a need to view appropriate information about the property.
Locked, inaccessible information becomes stale and dies. Shared information stays alive, grows, and becomes a critical link between you and your clients.
Store and share policies, contracts, spreadsheets and other property related information. Store photographs, diagrams and maps. Provide a photograph of the water shut off to the maintenance tech saving him time searching for it; share the insurance summary document to a unit owner. Be sure the right information is available to the right people at the right time.
Interested in the remaining 2 keys? If so, click below:
