Multifamily property management firms may be in trouble if they don’t do one thing. In this article, we tackle what multifamily property management firms must do if they want to survive in the ever-competitive real estate industry.
What Is a Multifamily Property?
A multifamily property is a property that consists of two or more residential units. Some examples are duplexes, semi-detached homes, and complexes. There are both pros and cons of investing in multifamily properties. And managing this type of property means you’ll have more cash flow, however, it also means that you’ll have to commit more time as you’ll have more units to maintain.
What Is Multifamily Property Management?
Managing a multifamily property can be more challenging, as it comes with more tenants, and more tenants mean more responsibilities. That’s where multifamily property management companies come in. They undertake the usual tasks of the landlord, such as collecting rent, screening tenants, and conducting maintenance, among others.
What’s the Biggest Challenge That Multifamily Property Management Companies Face?
Property management companies have a lot on their plate, but one of their main hurdles involves their day-to-day administrative duties. Many property management companies still spend a lot of time on administrative tasks like collecting rent, accounting, etc., and haven’t invested in property management software to speed up their processes.
Not only are manual tasks time-consuming, but their on-site teams are more likely to become burnt out because of this. And when employees are burnt out, it won’t be a surprise if they quit – this can be a huge setback for companies that manage multiple multifamily properties.
Not using AI-powered software also means they’re more likely to lose renters who value the convenience it offers. And since property management software offers critical insights into the tenant experience, not using it would mean missing out on data that could aid in tenant retention. To survive in this modern age, multifamily property management companies will have to start using property management tools such as tenant portals.
Multifamily Property Management Companies Need to Use Software
Here’s why multifamily property management companies should start using property management software ASAP:
#1 Maintenance Management
A well-maintained property is more likely to retain tenants. By taking good care of your multi-family home, you’ll be able to show your tenants that you’re committed to your obligations, and as a result, get them to renew their lease agreements. Besides, who’d want to rent at a poorly-maintained place?
However, this is easier said than done, as multifamily homes tend to have more maintenance-related problems. But by using property management software, your many maintenance to-dos can be manageable.
Property management tools are the key to making sure your maintenance tasks aren’t overlooked. Not only can tenants submit repair tickets, but they can also receive updates conveniently. What’s more, your property management team will get to sort repairs according to their urgency, track all current maintenance tasks, and have a clear overview of work orders. Property management tools can also be used to consolidate all communications – this can be useful in case a tenant claims you didn’t conduct maintenance and repairs.
#2 Easy Collections
Tenants want to be able to make monthly payments the easiest way possible. By allowing tenants to pay their rent online, you’ll be able to save them time and inconvenience. In turn, you or your multifamily property management firm won’t have to waste time collecting and processing rent in person. Tenants will be able to deposit directly into your business bank account or set up automated payments so they don’t have to do it manually every month. Collecting rent this way also allows all parties to have an overview of previous payments, which can help prevent rent-related conflicts.
Many property management tools, particularly the ones that can be linked to your bank account, also let you pay contractors from the platform. Your payments can then be stored with their corresponding work orders to make accounting easier.
#3 Processing Tenant Applications and Screening
When a multifamily property management company uses property management software, it can encourage potential tenants to apply. Being able to submit information on the internet is a big plus for any potential tenant, particularly the ones who are from out-of-town. It’s one way to widen your tenant pool to people who aren’t from the same location as your rental property.
Property management companies can also take advantage of the software’s AI tenant screening features. Through AI, you no longer need to conduct background checks one by one. Some applications use AI algorithms to determine if a potential tenant meets certain criteria, such as employment, credit score, and more.
#4 Communication Management
Through property management software, a multifamily property management company can manage tenant communications more easily. Not only can they record all communications between tenants, but they can also update tenants about repairs, inspections, and rent payment due dates.
Remember, maintaining an open line of communication between tenants contributes to tenant satisfaction. When you communicate with your tenants consistently, they’ll feel that you truly care for them. This can increase tenant retention rates.
#5 Vendor Management
Multifamily property management companies partner with many contractors. The problem is that managing that long list of vendors can become overwhelming. With that said, property managers must trade their traditional phonebooks for tools with contact management capabilities. That way, they can group their contacts accordingly and cut the time spent searching for their info. What’s more, they can record all written communications with contractors, which can be useful in case of lawsuits.
#6 Detection of Vacancies
Keeping track of vacancies can be tricky if you’re managing multiple properties at once. Software solutions can detect which properties will soon be available or are currently available – that way, you can advertise them ASAP and maintain your cash flow. Some property management apps also enable you to send email blasts to potential tenants, including past applicants who may still be interested in renting with you.
Does Your Property Manager Use Tech?
When choosing which multifamily property management firm to work with, make sure they use property management software. It’s a critical component to your rental’s survival. Without it, your prospective tenants are sure to choose your competitors’ properties over yours.
At Luxury Property Care, we understand the importance of adapting to tenants’ modern needs. That’s why we use property management tools such as AppFolio to streamline our operations and provide tenants with the convenience they’re looking for. Call us at (561) 944 – 2992 or complete our contact form today to learn more about our property management practices and our cutting-edge tech.