Effective property management is mission-critical for success in commercial real estate but as multifamily managers, our role extends beyond maintaining buildings and collecting rent.
Property Managers are Managers!
We approach property management as a management function, because that is what it is. The PM process involves a wide range of responsibilities, from daily operations to long-term planning. We are stewards of valuable assets, maximizing their potential and ensuring positive living experiences for residents.
Our philosophy is rooted in a simple principle: We treat other people the way we want to be treated ourselves. It might be cliche, but there is a reason this approach remains valid over time; it is just the right thing to do.
It also gives us an anchor in a market that is always changing. The property management landscape is dramatically different in 2024 compared to 2014, or even 2022. People and demands change. Technology, changing tenant expectations, and market dynamics have also changed, and in response we are constantly reshaping our approach.
In the following sections, we will give you a glimpse into our approach to multifamily property management, sharing insights from our years of experience in the field.
Understanding Property Management
Property management encompasses a broad spectrum of responsibilities crucial to the successful operation of multifamily real estate assets. Our role involves overseeing the comprehensive performance of the properties under our care.
As a managing agent, we collect rents, screen applicants, and handle all the leasing. We manage the daily operations at our properties, addressing maintenance issues, preparing units for new tenants, installing new carpet as needed, and performing any necessary upgrades to the units.
Successful property management hinges on several key components. Attention to detail is paramount – the devil is in the details, in both the financial and physical aspects of property management.
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The Importance of Being Adaptable
Adaptability is also crucial for successful long-term property management, which often takes the form of embracing cutting-edge tech solutions.
Technology has taken us a long way. We are proud to deploy the latest and greatest solutions in the field. These tech solutions are implemented judiciously, ensuring each new tool enhances our operations and benefits residents, and has an actual, real-world purpose, rather than being the flavor of the month.
Communication is vital. We maintain open lines with staff and residents, addressing concerns promptly and efficiently.
We prioritize proactive management. Anticipating potential challenges and addressing them preemptively is a major contributor to our success. This approach minimizes disruptions and contributes to the long-term success of our properties.
Tenant Screening and Selection
Our approach to tenant screening and selection is thorough and methodical, designed to ensure we attract and retain high-quality residents.
The process begins with "ID verify." This initial step confirms that applicants are who they claim to be, crucial in an era of sophisticated fraudulent applications.
We require prospective residents to provide verifiable proof of income, which is a crucial part of our screening process. Recognizing that the majority of our applicants, approximately 75%, are employed by companies using ADP or other national payroll processing systems, income verification is typically straightforward.
Advanced Screening Tools
We utilize advanced screening tools to enhance our screening process, including Snappt, a service that helps us verify that submitted documents are authentic. This system allows us to verify bank statements and pay stubs directly from their sources.
Our screening process is rigorous yet fair and consistent, ensuring equal treatment for all applicants. Our goal is to accept individuals who are well-suited to our communities and capable of fulfilling their lease obligations.
Financial Management in Property Management
Effective financial management is another cornerstone of successful multifamily property management. Our approach is comprehensive, data-driven, and focused on maximizing returns while maintaining high-quality living environments.
Plan Ahead
Preparing and managing operating budgets is critical to our success. Our budgeting process is thorough and forward-looking, accommodating any accounting method. We adjust for inflation to accurately predict how expenses may deviate from the original budget, whether positively or negatively.
When developing budgets, we consider various factors, such as the rising costs of personnel and recurring property upkeep expenses. We also project income carefully, using market studies and historical data.
Data Matters
Our strategies for increasing Net Operating Income (NOI) are rooted in a simple principle:
Know your numbers and look at the details.
A deep understanding of financial data is key to identifying opportunities for improvement and efficiency.
For pricing rents, we employ sophisticated tools to optimize our strategy and revenues. We use Revenue Manager, which is a Yardi product. It is our revenue management system. This technology helps us ensure that we are capturing the full value of our properties while remaining competitive in the market.
We conduct regular market surveys to stay current with pricing trends. Our managers reach out to their counterparts at competing properties in the immediate market. By combining this information with our internal data and revenue management tools, we can make well-informed pricing decisions.
In all aspects of our financial management, we strive for transparency and accuracy. We regularly review our performance against projections and make adjustments as necessary.
Maintenance and Repairs
Effective maintenance and repair management is crucial for preserving property value and ensuring tenant satisfaction. Our approach is proactive and efficient, emphasizing preventive measures and prompt responses to issues.
We are firm believers in the power of preventive maintenance. This philosophy guides our maintenance strategy. We implement regular maintenance schedules to address potential issues before they become significant problems.
This not only extends the life of our assets but also reduces unexpected repair costs.
Our proactive HVAC (heating, ventilation, and air conditioning) maintenance approach has yielded significant benefits. For example, at our 15-year-old property in Raleigh, we have rarely needed to replace HVAC units.
This success is due to regular maintenance practices such as cleaning coils, changing filters, and flushing lines before the summer season.
Our maintenance teams are trained to be thorough and observant, going above and beyond during routine inspections. This approach not only addresses reported issues but also identifies and resolves potential problems before they escalate.
Attention to detail enhances tenant satisfaction and is a cornerstone of our commitment to property upkeep.
Emergency Protocols
For emergency situations, we have systems in place to ensure a rapid response, including a 24-hour monitoring service. Our on-call system ensures that urgent issues are addressed promptly, minimizing property damage and tenant inconvenience.
In case of an emergency, tenants can call a dedicated number that dispatches the on-call maintenance team, which operates on a rotating schedule.
Tenant Relations and Conflict Resolution
Maintaining positive tenant relations is essential for successful property management. When handling tenant complaints, we prioritize active listening and address concerns at the appropriate management level, escalating when necessary.
Our conflict resolution strategy is rooted in empathy and professionalism. We aim to de-escalate tense situations and find mutually beneficial solutions. Being 100% transparent about policies and lease terms helps prevent misunderstandings and builds trust with our residents.
To foster a positive community atmosphere, we focus on creating a welcoming environment from the start. The move-in experience is incredibly important, so we ensure apartments are clean and ready and often provide welcome gifts to new residents.
Our community events offer social outlets for residents and help create a sense of belonging, transforming our properties from mere apartment buildings into true communities. We respond to the needs and preferences of our residents, adapting our community-building efforts as necessary.
In cases where residents face financial difficulties, we strive to be understanding while maintaining our professional obligations. We work with residents experiencing personal situations that create financial burdens to find solutions that benefit both them and the property.
Adapting to Market Changes
The property management landscape is in constant flux, requiring us to stay agile and responsive. We continually monitor market trends and adjust our strategies to maintain our competitive edge.
Alongside broader market changes, tenant expectations have also evolved, particularly regarding technology and service quality. In response, we have embraced technological advancements that enhance our operations and tenant experience.
Market dynamics play a crucial role in shaping our strategies. Our goal is to minimize vacancies while ensuring we maintain credible tenancies. We strive to attract residents who can comfortably afford to live in our communities and will find happiness in our properties.
This approach increases the likelihood of long-term residency, thereby reducing turnover costs and avoiding unnecessary vacancies.
Balancing Tradition and Innovation
At Cores Real Estate, we have built our approach on a foundation of experience, adaptability, and a deep understanding of both the financial and human aspects of our industry.
From tenant screening and financial management to maintenance and community building, every aspect of our operation is designed to maximize value for ourselves and our investors while providing a high-quality living experience for our residents.
