Property Management Nation

Entries from July 2009

Is a Tweet Worth a $50,000 Lawsuit?

July 29, 2009 · Leave a Comment

I am pretty sure this is not what the SEOs have in mind when they encourage property management companies to “utilize social media.”

Within the last few days, a libel suit for the ages has broken out over nothing more than…a tweet. Yes folks, 140 characters of “what are you doing” goodness has turned into a $50,000 lawsuit between a Chicago resident and the property management company she used to rent from.

Horizon Group Management is going head to head with former tenant Amanda Bonnen over a tweet she posted regarding the state of her apartment. One of Horizon’s employees recently released a statement (whose tone is ambigous) saying, “The statements are obviously false, and it’s our intention to prove that. We’re a sue first, ask questions later kind of organization.”

So here’s what we know:

  1. Horizon Group Management is already the number one example on the “Streisand Effect” Wikipedia page.
  2. Jeffrey Michael did his company no favors with the above quoted statement.
  3. The masses on the internet have, for the most part, found this to be more trouble than it’s worth for the management company and assume the company now wishes they’d kept their mouths shut and lawyers under lock and key.
  4. Amanda Bonnen, whether telling the truth or not, will surely think twice about any tweet she posts ever again (though one source says she’s already shut down her account.)
  5. The decision of this case will undoubtedly permeate the foundations of social media and networking as it make an example either out of the management company, or Bonnen herself.

Great points have been made across a number of blogs and articles about the legal aspects of libel, freedom of speech and whatnot (many are linked to within this article), but I’d like to focus on the literal absurdity of the situation.

If you read the complaint filed by the management group, you are able to read a string of Bonnen’s tweets, not many of which are particularly positive. If every company she complained about from Spirit Air to O’Hare airport to the City of Chicago, took up a suit against her, she’d be a full time defendant in the courts. And I doubt Bonnen’s twitter stream is all that different from millions of other Twitter users.

I realize Horizon’s case is based on Bonnen’s wording, that she’s directly accusing them of something they say isn’t true, but still. While I’m not condoning the use of Twitter as a place to complain or criticize, I have to wonder if it is really worth it for Horizon to go through with the suit.

If Horizon Management Group is lucky, the story will die down in a few days…but at the rate it’s spreading, that’s probably too much to hope for.

What are your thoughts property managers? Where does “clearing your name on Twitter” rank in your marketing strategy?

Categories: food for thought · property management
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Where Have All The Good Appraisers Gone?

July 28, 2009 · Leave a Comment

There’s something rotten in the real estate industry and this time it doesn’t directly center around predatory lending.

It has to do with appraisals. An appraisal is a valuation of a home or property to determine its worth in the market. This valuation is required in order to qualify for a loan.

According to an expose´-type report by The Center for Public Integrity, crooked appraisers have had their licenses stripped for everything from having a conflict of interest (acting as both appraiser and loan coordinator) to preparing incomplete, inaccurate or downright bogus appraisals. Some of these appraisals contributed to pushing homes sales through at the exorbitant prices seen at the top of the housing boom.

In addition, some “good guy” appraisers say they are being pressured by realtors and lenders today to bloat prices in order to justify mortgages.

It sounds more like a mob movie than our current housing market, doesn’t it?

Still, these questionable appraisal practices were supposed to be staunched by the creation of the Home Valuation Code of Conduct in May 2009. The agreement stopped lenders from pressuring appraisers to ‘influence’ the results of their appraisals, but has created a separate, third party, largely unregulated appraisal management industry that has a CNN Money article calling such companies “appraisal mills, churning out values cheaply and quickly — and often, wrongly.”

So where does this leave the housing market?

What happened to the days when a house was worth what it cost to build it, give or take the value of the location and how well the building was maintained? Comps now consist mostly of bargain priced foreclosures and short sales, or previous “boom-era” sales that had prices inflated. The HVCC had the right idea, but does not seem to have gotten to the heart of the problem: the basic need for good, decent appraising.

Categories: food for thought
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Lamb in Outer Space and Other Property Management Marketing Tools

July 23, 2009 · Leave a Comment

Um, attention grabbing, isn’t it?

http://www.geekstir.com/wp-content/uploads/2009/06/wtfrealty2.jpg

(Photo found on geekstir)

The truth of the matter is, more than half of all property managers are self employed. That means you get to set your own hours, pick your own clients, take as many vacations as you want…and find all of your own business.

Some of the best property managers in the business have difficulty making a living because they are simply unable to market themselves well. Regardless of the stellar property management services you provide, if no one can find you, your business won’t take off.

So, while we may all be laughing at the photo of Brad Lamb’s head pasted onto a sheep’s body in outer space which is wearing socks, apparently, Mr. Lamb and his team are doing something right. Not only do they have an HGTV show in Canada called “Big City Broker”, but they are known as one of the most successful private real estate groups in North America.

Are you still laughing?

Yeah, I’m feeling a little sheepish too (badum ching!). Well, here are some easy things to consider when marketing yourself and your property management services to the masses.

1. Choose a niche – whether or not you’re a property management all star, it’s easier to focus your marketing effort on a specific group of people, at least to get started. Don’t worry about showing off your versatility, with success will come the opportunity to expand. Pick the type of property or area you’d like to focus in and build your way up from there.

2. Brand yourself consistently – like when choosing a niche, use a logo, brand colors, or slogan consistently. It might seem boring, but building up a presence requires making yourself familiar to your audience.

3. Use the internet – obviously, if you’re reading this post, you already have some knowledge of what the internet can do for your business, but it’s amazing how many quality managers are still only in the phone book or have only a simple landing page with their contact information. Take advantage of the web’s resources and make yourself more visible:

  • Create an interactive website that potential clients can use as a resource
  • Utilize social media; make yourself easy to find and a voice within the online community
  • Use online rental listing sites; make your potential client and renter pools as large as possible

4. Be creative – okay, so maybe don’t start with the photoshopped ad with your head pasted on a farm animal’s body, but use the same spirit and enthusiasm. Property managers with photo-business cards are ten a penny. Find a way to make yourself stand out.

5. Persevere – if you don’t see instant results, it doesn’t mean your efforts aren’t working. Give your marketing efforts time to be soaked up by the industry. Take the opportunity to network at real estate events or even through the online community you’ve recently joined.

In any case, when you’re working for yourself, you get out what you put in (like notoriety for being a lamb-astronaut in space). If you take the time to build a brand online and in person, you’ll be sure to fill up your schedule and have a successful management business.


Categories: property management
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Buildings Where the Famous Have Died

July 22, 2009 · Leave a Comment

Let’s face it.  Call it tasteless, call it vile, but there’s just something fascinating about the places where people died.  Sure there is often an equal curiosity regarding where someone was born, but when Abraham Lincoln was born he was not yet “Abraham Lincoln”.  As interesting as a story may begin, it is hardly ever as gripping as the way the story ends, and if that’s now the case, well, then it’s not a very good story.  Below, we list just a few of the places where some of our histories greatest stories came to an end. (more…)

Categories: Uncategorized

A Well Read Property Manager’s Dream

July 20, 2009 · Leave a Comment

Every once in awhile, we here at PMN like to extend beyond our borders and touch on what’s going on in another part of the world. In this case, we’re stretching even further by rejoicing in the redevelopment of a rather long lost town in New Zealand: Hobbiton.

While the town itself is fictional, the revival of its location (from the record-breaking trilogy The Lord of the Rings) is currently rumored to be back on track for the prequel: The Hobbit. Despite stories that there are bed and breakfasts nestled in the old hobbit holes and other slightly nerdy property manager’s dreams of rental units left over from the original three movies, current reports and a little research of the area reveals that the location was, for the most part, returned to its original state once filming of the movies was complete.

Click here for photos of the progress made on rebuilding Hobbiton.

Still, there are many places in New Zealand immortalized in the films which can still be visited today. Perhaps there will be a revival of interest with announcement of the new film finally being underway.

Which leads to a fun management question for a Monday: if you could manage any property in the world, fictional or real, where would it be?

Categories: Uncategorized
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Harness 5 Key Elements in Your Home

July 17, 2009 · Leave a Comment

There are countless ways to prepare your home for personal comfort or  marketing if you’re looking to sell, but here’s a more alternative take on decorating to promote a natural good feeling about your house.

Using the art of Feng Shui to make sure each room has a pleasant energy in the house isn’t just about where you place items, it’s also about what you place in those rooms. HGTV.com has an excellent articles for beginners, and here are some of the highlights.

Feng Shui divides the world into five basic elements: wood, fire, earth, metal and water. Adding and combining all five elements in different ways in each room can affect the powers and motivations that can positively impact your day to day living and personal goals. Here’s a quick breakdown of each Feng Shui element.

1. Wood

White Pot by back_garage.
(Photo by:  back_garage )

The element wood can be represented by fresh or silk flowers, plants, trees, cotton and natural fabrics, and the colors of blue and green. This element is said to bring creativity and expansion to the space.

2. Fire

Candles in the dark by Peter Becker.
(Photo By: y Peter Becker )

Fire can be a represented element in candles, incandescent lights, sunlight, the colors red, pink, and purple, electronic equipment and animal prints. These vibrant and strong touches bring enthusiasm and leadership skills to the area.

3. Earth

untitled low table by nic joly.
(Photo By: nic joly)

The earth element can be brought into the space with earth tones like brown, green and sand, square and rectangular shapes, low flat surfaces, and images of landscapes. Earth represents the powers of physical strength and order.

4. Metal

Old Vanity Set by PrettySaro.
(Photo By: PrettySaro )

Metal is best represented in round or oval shapes, metal or metallic objects, rocks and stones, and the colors white, gray, silver, gold or light pastels. Bright and malleable, these objects bring out the powers of clarity and logic.

5. Water

Glass Gazing Balls by tiffanywashko.
(Photo By: tiffanywashko )

The element of water can be added to areas with black or deep and dark tones, reflective surfaces, wavy, free form and asymmetrical shapes and water features. Water, as an element, brings the powers of spirituality and emotion.

Utilizing and combining these five elements throughout the home is said to create pleasant and profitable energies that can make your spaces more comfortable and livable. Take time to choose your representative objects carefully, and remember that one object can have multiple elements. Enjoy arranging and moving elements around until you find the balance and harmony of the combined powers that feels right.

Need someone to handle other elements about your house? Click here.

White Pot by back_garage.

Categories: food for thought
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A New Niche for Property Managers on the Horizon?

July 15, 2009 · 1 Comment

With the huge kerfuffle in the housing market of late, the time has come for creative solutions.

In order to combat the rising foreclosures and housing vacancies, officials are looking at potentially allowing homeowners who have fallen behind on their mortgage payments to stay in their homes by becoming long term rental tenants.

First, let’s outline the positives:

  1. It would cut down on vacant homes
  2. Allow homeowners to stay in their houses
  3. Give banks a chance to recoup some of the loss on the mortgage
  4. Provide a new type of investment

Here are some issues that come to mind:

  1. How long would a homeowner have to rent his old house before being able to think about purchasing a house or even moving again?
  2. How can the transfer from mortgage to rental agreement be made without disrupting the mortgage markets?
  3. If a homeowner defaults on his mortgage on account of being jobless, why would it be any easier for him to pay a “fair rental amount” on his home than his current mortgage payment?

In addition, this scenario brings up another interesting possibility; if a solution like this were to be put in place, would professional property managers have a new niche to fill?

Think about it, if banks become the primary owners of homes, but the former owners have signed a long term lease to stay on as tenants, doesn’t this then revert to a traditional rental scenario? Homeowners would no longer be responsible for things like repairs, updating, or even some types of regular maintenance, and banks would need to hire professionals to ensure their assets are being well cared for.

Does this seem like a viable solution for a foreclosure market driven by both the housing crisis and rising unemployment? What other creative solutions might work to get the housing market back on track?

Categories: food for thought · property management
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5 Tips to Protect Yourself Against Fair Housing Complaints

July 13, 2009 · Leave a Comment

The days of Thoroughly Modern Millie style young professional girl’s housing are long past, and yet, property managers for apartments, rental homes and even vacation rentals are still under the impression that they can request to rent to only certain types of people.

A small newspaper in Visalia, CA, called American Classifieds is currently under fire for publishing a number of discriminatory ads for apartment and home rentals. The ads requested only certain types of applicants like those who are, “married couples only” or “families only” or “only single people.” The Fair Housing Council of Central California  filed the case in federal court on July 9th, and Council Director M.J. Borelli commented that there seems to be a rise in discrimination against families with children in the Central Valley.

While in this case it is the newspaper and not the landlords being accused of discrimination, as a landlord or property manager, there are a number of steps you should take to avoid violating fair housing laws. Even restrictions for people’s safety like, “no children in the pool after 8 p.m.” can be viewed as discriminatory due to the language. It is important that when advertising or going through the rental process, you are fair, unbiased and provide the same opportunity to all potential tenants.

Here’s a brief refresher of tips to avoid violating fair housing laws in print throughout the rental process.

1. Avoid requests in rental listings – particularly about desired tenants. Ads that have language like “female renters only,” “no more than two residents,” or “adult community only” can all land you in hot water fast. If your concerns are about occupancy, in 1996, a law was passed based on a HUD memo stating that a “2 person per bedroom occupancy” was the average standard for rental properties. While this is not rule written in stone, it is a good baseline when gauging how many occupants your unit can safely hold.

2. Make your rental listings about the property, not the prospective tenants - whether it’s a great location or a collection of first rate amenities, be sure when you advertise you aren’t inadvertently excluding people. Don’t advertise, “great for active young professionals” but instead list, “workout facilities, business center, and recreational clubhouse.” Even avoid words like “private” or “safe” as it can imply discrimination against certain groups of people.

3. Double check language and questions in rental applications – it is perfectly reasonable to have rental requirements like checking employment and rental history and having minimum requirements for salary, credit score and the like, but be careful that you are not overstepping your bounds in your documents. Clearly outline your expectations and fair housing rationale in your application, and once you’ve stated your policy, stick to it.

4. Standardize your paperwork – this may seem like a given, but there’s no harm in having a written page of interview questions as well as a single rental application and community rules to ensure you avoid any sticky fair housing situations. Do not use multiple types of applications or backgrounds checks regardless of what’s easier or cost effective. By using the same paperwork for each prospective tenant, it ensures that none of them feel like they are being treated differently.

5. Make your community rules generic – again, be careful of the language. Even simple rules that seem harmless in apartment property management like, “adult pool hours” can be deemed discriminatory against children. Instead, concentrate on safety, fairness, and making sure rules are directed towards to all residents living as tenants in your building or complex.

Whether in advertising, renting, or regulating the safety and harmony of your tenants, it is important to be vigilant of anything that can be deemed discriminatory in your paperwork or practices.

Categories: property management · seattle
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Big Brother or Just What We Need?

July 10, 2009 · 1 Comment

The interesting thing is, micromanagement often looks really good on paper.

The City of Colorado Springs’ Code Enforcement Unit (which sounds like it should be part of Big Brother Nineteen Eighty Four, does it not?) has recently proposed a new “Rental Unit Registration Ordinance” which would require the registration of all residential housing units to “maintain the health, safety and welfare of citizens who live in rental housing.”

The Gazette, based in Colorado Springs, posted an opinion article revealing that if the proposal goes through, there will be a per-unit fee of $10 unless the property owner completes the offered education classes, which would then bring the fee down to $1 per unit. In addition, the article goes on to theorize that the revenue generated from the fees would essentially keep the Code Enforcement Unit from being cut from the budget in 2010.

Now, not being a resident of the Colorado Springs area, but taking only the theory of this into consideration, it seems like a good idea on paper. Residences are all registered, there’s another check and balance in place, there’s the offer of education, and an incentive to lower the program’s cost for rental property owners.

But how will this work in practice? As The Gazette author points out, it is another fee which, in a way, penalizes the property and residential income-producing property owners of the city. In these times of economic duress, is this really a necessary program? Moreover, as a private enterprise and not part of government housing, shouldn’t property managers be free of this check and balance?

The city is opening it up to its residents for comment. Hosted by members of the police department, hear details about the proposition and voice your opinion at one of the following meetings:

  • July 14, 6 p.m., Falcon Division Community Room
  • July 15, 6 p.m., Police Operations Center Community Room

It will be interesting to see the reaction of rental owners and tenants alike with this new proposed system and fee. Does this sound like a worthy program? Or a way to keep a committee afloat?

Click here to find a Colorado Property Manager and ask what they think!

Categories: Colorado Springs · food for thought
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Is your landlord a liar, a thief and a cad?

July 7, 2009 · Leave a Comment

It’s true, your landlord could be a complete crook, but if you didn’t take proper precautions, you could be just as guilty.

Falling prey to a rental scam won’t land you in jail, but it could leave you homeless, and put you out a serious amount of cash and valuable information about your identity. The recent housing crash brought about a new type of thief preying on vacant and foreclosed houses, and innocent renters and homeowners alike.

MSN Real Estate recently published an article about these new takes on an old scam that are flooding the housing market, the new twists the technological age has brought to the grifts, and the warning signs both genuine property managers or owners, and renters can look out for to avoid being taken in by these charlatans.

The plot is simple– find a vacant or foreclosed house, break in, change the locks, advertise it as a rental online, and then choose just how you’d like to swindle people. These crooks have several choices of just how to separate honest folks from their hard earned cash and some of them go like this:

1. Rent to unsuspecting tenants sans paper trail by asking for monthly payments in cash until someone finds out and then disappear.

2. Complete move in paperwork and collect the deposit for a home from multiple sets of tenants, and then leave them all to show up on moving day without keys, a place to live, or an explanation. This has also been done with real apartments that the con artist will use both vacant and occupied; all he or she needs is a set of keys and a passable collection of rental applications.

3. Find a property that’s been for sale for awhile, stash the “Sale” signs in the garage and rent the place out before anyone’s the wiser.

4. Even a real owner might try and rent out his or her house after it’s been foreclosed, keeping the rental checks and leaving the city to evict a second set of, this time, unsuspecting renters.

It’s not pretty out there in the rental market but there are things that can be done to protect yourself. If you are a potential renter, here are some highlights from MSN’s list:

1. Don’t pay in cash or wire money in advance; use only ways that can be tracked and confirmed, like cashiers checks, until you are comfortable with your rental agreement.

2. Do your research; if the rental price seems a little too much of a steal, look around for houses or apartments for rent in the same neighborhood and see what they are being rented for. If the price differs by more than a couple hundred dollars, you might just be stepping into a scam.

While you’re at it, check that the house is not in foreclosure; try a site like RentalForeclosure.com.

If you are suspicious, validate the identity of the person you’re dealing with. If he or she says they’re a property manager, ask to meet at their office. Check government sources like county property records if you’re dealing with the owner, or the Department of Real Estate if you’re dealing with an agent or property manager.

3. Be on the lookout for unusual behavior from the landlord–Why are they pressuring me to sign? Why are they asking for payments upfront in cash? Why are they so eager to have me rent this place and so defensive when I ask questions? Why did we come in the back door? Why is there a “for sale by owner” sign stashed in the closet?

4. Create your own paper trail; ask for copies of any checks, applications or documents that change hands. If you ensure the process is legitimate and regular, it will make it easier to spot unusual behavior.

5. Report anything that sounds even vaguely suspicious. As the MSN article says, if it seems to good to be true, it probably is.

For property owners and managers out there, here are some tips we came up with at PMN:

1. If you own an investment or vacation property, check on it regularly; don’t give criminals a chance to move in or ‘borrow’ your place. If, as an owner, you don’t have the time or resources to physically check on your property, consider hiring a property manager.

2. If you list on any online sources (like Craigslist.com or Backpage.com), monitor your listings regularly to ensure they don’t get hijacked and no one tries to post your listing for less rent. If you discover a duplicate posting, report it immediately.

3. If you have had the misfortune to be foreclosed on and must vacate your home, be sure to report your foreclosure to the city or appropriate organization. More and more cities have registries to prevent vacant homes falling into neglect–or the wrong hands.

4. Do not ask for or accept any payments in cash regardless of how pressed for time you are. Make sure there is an auditable paper trail on your end of the transaction as well as your potential renters. Also, take the time to do a property background check on your tenants. Not only will it protect you from bad renters, but it will demonstrate that you are serious about your property and your business.

5. Be transparent. If your house or apartment is at a lower rent than all the others in the neighborhood, be straight with your potential renters. Whether it is due to tough economic times, an older unit without updates or what have you, be honest with your future tenants.

Here at PMN, we’ve explored one previous scam, to read about it, click here.

Need a reliable, legitimate property manager?

Categories: food for thought · property management