Business plan

October Quarterly Maintenance!

October 1, 2021 Business plan, Current Events

October is officially here! What are you most looking forward to?

Changing colors of the trees?
Cooler temperatures?
Halloween & Candy?

What about Quarterly Maintenance??

October tends to be the month where we “begin” the holiday season as Thanksgiving and Christmas time seem like they are right around the corner! As excitement begins to build, it can be easy to forget about something as important as quarterly maintenance.

So, where do we start? What differentiates an item to be serviced both as needed, and on a recurring schedule? Apartments.com provides a great list below of a just a few examples of items generally included in a quarterly maintenance checklist (Bullock, 2021):

Gutter Maintenance – By properly cleaning gutters, you’ll avoid damage to the siding and foundation of your rental from gutter overflow.
Check the Dryer – The main culprit of dryer fires is lint buildup! Be sure residents are well-informed of the dangers and educated to prevent unnecessary damage.
Service the Septic System – Regular plumbing can help control scum that can clog drains and create many different issues.
HVAC Maintenance – Cleaning or changing air filters is vital for ensuring air quality and performance of the entire system.
Inspect and Clean the Chimney and Fireplace – Chimney’s should be inspected once per year. Fireplace maintenance is a critical safety, energy, and maintenance issue!

AFI managed-assets follow a “work-order” system to ensure that these critical items do not get missed. Managers and maintenance teams are alerted as to when quarterly maintenance items are coming due and held accountable to mark “Completed” with notes/applicable photos once an item has been addressed.

To learn more about quarterly maintenance, other services provided by AFI, and employment opportunities feel free to contact us directly!

References

Bullock, M. (2021, March 19). Top 5 Preventative Maintenance Tasks for Landlords. In www.apartments.com.

Retrieved from https://www.apartments.com/rental-manager/resources/article/top-5-preventive-maintenance-tasks-for-landlords

Is it Time to Hire a Property Manager?

September 23, 2021 Business plan

If you have been keeping up with AFI Social Media, then you have likely seen some examples of the benefits that Third-Party Management Operators are able to provide clients. While not the correct solution for all Property Owners, some may find that outside operators can further improve upon ROI MORE EFFICIENTLY than they could on their own.

The overall operations of an apartment community can be quite robust. Multi-Housing News provides several examples of just a few of the things many management companies are well-versed in that can not only help improve a community, but also reduce liability for the Property Owner (Fuhr, 2018):

Time – Accredited investors often have more than one investment consuming time from their day. Some Property Owners may find that they simply do not have the time necessarily to adequately manage the community.
Laws – Tenant/Landlord Laws often vary (sometimes exponentially) by state, city, or even at the county level. Despite whether or not the Property Owner is local to or familiar with the area of the property, he/she is still responsible for remaining abreast to the differing statutes.
Marketing – While online marketing has expanded to where it can be managed from practically anywhere, Property Owners will still want to make sure they are utilizing the appropriate tools for their community (online advertisements, flyers, business-to-business, etc.)
Safety – Most management firms bring a physical presence to the property that is often lost if the Owner/Operator is predominantly remote. Tenant screening, rule enforcement, and onsite issues are all able to be appropriately handled with onsite representation.

AFI is a full-service management firm that oversees all day-to-day operational aspects of managing a multifamily apartment community. For over 30 years, AFI has continued to PROSPER ALL STAKEHOLDERS by ensuring that managed-assets are safe, clean, and disciplined.

To learn more about AFI, our service offerings, employment opportunities, or just learn more about the multifamily industry, we encourage you to visit our website or email directly!

References

Fuhr, Meeghan. “Is It Time to Hire a Property Manager?” www.multihousingews.com, Multi-Housing News, 21 Feb. 2018, www.multihousingnews.com/post/is-it-time-to-hire-a-property-manager/.

AFI Manager Spotlight! – July 2021

July 19, 2021 Arts & Culture, Business plan, Employee Appreciation

AFI, LLC is a nationwide operator of multifamily apartment communities. Our Vision is to PROSPER ALL STAKEHOLDERS. Who/What is a “Stakeholder?”

We believe a stakeholder to be anyone that has an apparent, or subliminal investment in the property. Residents, employees, owners, neighbors, police and fire departments are just a few examples of a local stakeholder.

AFI Manager, Brisa, has been working at a managed-asset on the East Coast for over six months. In the short time Brisa has managed the property, we have seen a steady increase in occupancy and total income all while managing onsite improvement projects as well!

Read on to learn more about Brisa’s experience with AFI and some of the challenges she had to overcome when taking over a new asset:

How do you balance a personal connection with your tenants while still laying down the law to maintain a disciplined property?

I try to have a very relaxed and down to earth interaction with prospects and residents. I try to make them feel heard and strive to earn their trust while always having a personal AND professional vested interest and obligation to make them happy and comfortable living here. This includes always being available for questions, queries, and concerns and being prompt at addressing those with them.

2. What has been your favorite improvement at the asset?

There are still a lot of asset improvements that are underway but at this point in time, the marketing and rentability of our units is probably the major improvement here thus far.

3. In your opinion, what is the hardest part about being a property manager, and how do you manage that?

I would say that being a property manager in this environment and at this type of property is extremely demanding. The hardest thing is having to uncover problems that need extensive solutions which require a quick mind and execution. Although days can be long, it is rewarding to have this type of opportunity and challenge.

4. What are some tips for other property managers to make your tenants feel most at home on your property?

A spotless clean apartment to move into as well as a prompt, professional, and kind property manager is a recipe for success.

5. What has been your favorite part of working with AFI, and what has been your least favorite?

My favorite part of working with the AFI Team has been overcoming obstacles and challenges. I believe that I have turned my property around quite a bit in the six months I have been here and I am entering a new phase that will present new challenges but I look forward to the end result. My least favorite thing is sometimes having longer than usual hours which can make balancing work/home life challenging. That will soon improve though since I am putting a lot of work now to reap bigger rewards later.

Brisa’s effectiveness on property may not be better demonstrated than through the work she has done improving the property Google rating from a 1.0 at takeover, to currently 4.6! We are confident Brisa has her sights set on being a BLUE Property!

How to Sign MORE Leases!

June 25, 2021 Business plan

PEAK Leasing Season is the time of year when the highest number of renters are looking for a new rental property (Collatz, 2018). Per a previous AFI blog post, we know that over 40 million Americans move each year with more than half of these moves occurring in the summer months!

With approximately 34,000 apartment complexes per state (Reonomy.com) Onsite Teams cannot expect the influx in potential applicants to directly correlate to increased traffic/performance. Managers must work diligently to ensure that their community stands out from the rest and attracts the most prospective renters!

In need of a “Lease-Up” this summer? Check out these helpful tips from MarketApartments.com (Housel, 2021):

Develop Your Goals – Management Teams should work together to establish realistic milestones for the next 30, 60, and 90 days (at minimum).
Utilize 3D Floorplans – With an ever-growing focus on remote accessibility, these detailed depictions can provide a convenient means for prospective residents to gain a full experience.
Update Your Local Listings – Create and manage your brand through outlets such as Google My Business, Yelp, Apartments.com, etc.
Involve Local Businesses – Spread the word! Build connections with the individuals and workplaces around your property that can start to give positive endorsements.
Start a Referral Program – How many of your current or soon-to-be renters know others that may also be looking for an apartment?

AFI recently took over management operations of a new construction project on the East-Coast and have had to put these tools, as well as many others, to the test right away. With the first eight units coming online July 1^st, 2021, our Onsite Manager had over 25 approved applications within the first week of advertising! The only acceptable standard will be to have all units pre-leased BEFORE they come online!

References:

Collatz, Andrea. “The Best Time to List Your Rental Property.” www.SmartMove.com, 11 Aug. 2018, www.mysmartmove.com/SmartMove/blog/best-time-list-rental-property.page.

Housel, Isabella. “21 Apartment Lease-Up Marketing Ideas to Increase Occupancy.” www.MarketApartments.com, 25 Jan. 2021, www.marketapts.com/blog/21-apartment-lease-up-marketing-ideas-to-increase-occupancy/.

Reonomy.com, www.reonomy.com/properties/apartment-building/us/1. Accessed 9 June 2021.

Managing a Successful Apartment Complex.

June 11, 2021 Business plan, Success

What defines “Success?” A quick Google search will state that success is simply, “The accomplishment of an aim or purpose.” Essentially, completing the task at hand as expected with the available resources and despite any obstacles/distractions. While this may seem straightforward, nowhere in this definition does it identify the acceptable metrics for success.

Is it enough to say that simply completing a task makes it a success? Or is there a need to look more closely and define the standards of acceptable performance? When asked to define success, world renowned technologist, business-leader, and philanthropist, Bill Gates, described it as, “Feeling like you made a difference” (Bliss, 2018).

The Vision of AFI is to Prosper All Stakeholders and our Mission is to EXCEED Property Owner expectations. “Success” for AFI is not as simple as achieving a desired outcome. Rather, we place extensive, measurable goals in the paths of our Onsite Teams and provide constant coaching on how to surpass even these lofty objectives.

One measurable our Managers strive for is to achieve BLUE PROPERTY STATUS. Despite our ~+/- 5000 managed-units across the country, the number of properties that are able to achieve this goal on a recurring basis is relatively low. Why? Read on to learn more about what it means to be a BLUE Property:

100% Occupancy – ALL Units on the property are FULL and a waiting list has been established.
Pre-Leasing 30 Days in Advance – All future notice/lost renewal units are PRE-LEASED prior to current tenant move-out.
Less than 1% on Accounts Receivable – Manager has collected a minimum of 99% of all outstanding items on the Income Statement.
Achieved Monthly Renewal Goal – Varies by month (typically 60% of presently expiring leases).
4.7+ Google Rating – Property must have greater than a 4.7/5.0 review rating on Google.

Given the robust nature of these key performance indicators, one can see why it is such a sought-after goal! Rather, than simply completing a task, AFI chooses to measure success through exemplary performance that exceeds standard expectations.

References:

Bliss, Dan E. “12 Remarkably Successful People Define Success.” www.globalexperiences.com, 1 Aug. 2018, www.globalexperiences.com/blog/successful-people-define-success.

How to Get an Internship: The AFI Difference!

June 6, 2021 Business plan, Employee Appreciation, Hiring

Fetching coffee, prepping documents, compiling generic spreadsheets, etc. are all examples of the pictures painted by movies and television of what items are associated with a student internship. Unfortunately, in some cases, this may not be too far from reality!

“I have been asked to do small tasks like cleaning a shelf or compiling information that takes me less than an hour to complete. I have been asking people who I know are busy to please let me know if they need any help, because I’m desperate” (Green, 2020).

Internships are usually sought by college students that are seeking preliminary professional experience in a formalized organizational setting. Should an individual be motivated enough to seek these opportunities, prove he/she is able to manage the job/school workload along with personal interests and obligations, and have the aptitude to pass all of company’s hiring criteria, is it not reasonable to reward this individual with the type of experience they are seeking?

While any role (whether it be Full/Part-Time or an Internship) can have some “horror stories,” Indeed.com cites several examples of how internship opportunities can really benefit interested applicants (Indeed, 2021):

What Am I Interested In?
1. Internships are a great, low-risk opportunity to see what tasks or careers one may or may not be interested.
Networking.
1. Whether an Intern is thrilled about the internship or not, it will still provide an otherwise unavailable environment by which professional connections can be made.
Learning in a Safe Environment.
1. Again, most internships can be considered “safe” or “low-risk” where mistakes are expected, corrected, and learned from.
Unspoken Rules.
1. Internships in an office environment are a great way to observe general “office politics” that may not be otherwise identified in a job advertisement such as office gossip, order of authority, addressing upper management, etc.

AFI has been able to grow its business over the past 30 years through the creation of systematic processes and repeatable systems by which the same standard of excellence is continually ensured. The responsibility of executing these systems is then placed into the jurisdictions of the applicable individual. This standard is replicated throughout the entire company, including our Interns.

Recently, Paige and Dominic, two students at the University of Missouri-Columbia completed their respective Marketing and Accounting Internships with AFI! Both students were given a robust list of jurisdictions that they were responsible for on a daily, weekly, and monthly basis in addition to any schoolwork or extracurricular items they were involved in. AFI asked a great deal of both these bright individuals and the feedback that was continually offered was, “I cannot believe the amount of responsibility I have or how much my work actually influences the business.”

In addition to an hourly wage, AFI was DELIGHTED to award both Paige and Dominic with a $10,000 bonus following graduation and completion of their internship requirements. These students have worked diligently to add true value to AFI and we wish them nothing but tremendous success in the future. The bar is certainly set quite high for the next group of Interns!

References:

Green, A. (2020, January 14). I have nothing to do at my internship. In www.askamanager.org. Retrieved from https://www.askamanager.org/2020/01/i-have-nothing-to-do-at-my-internship.html

Indeed Editorial Team. (2021, February 22). Why Is an Internship Important?. In www.Indeed.com. Retrieved from https://www.indeed.com/career-advice/finding-a-job/why-is-an-internship-important

Move-Out Cleaning Checklist

May 21, 2021 Business plan, Current Events

AFI’s latest blog post, talked about how moving to and from apartment communities is most common in the summer months. While a lot of factors may play into the decision to find a new place to call home, there are two important aspects of the moving process that are always present:

Moving IN to a New Community.
Moving OUT of the Current Community.

While fairly obvious, each item is critically important as failure to plan appropriately can result in added stress, or even added expenses! When it comes to moving out of a current residence, the general expectation is that the exiting residents will leave the apartment in similar condition to how it was received. An unwillingness to put in a little elbow grease can result in the withholding or total loss of one’s security deposit, and even added fines in more egregious circumstances.

According to a survey by Rent.com, more than 25 percent of renters have lost part or all their security deposit at some point (Lassman, 2019). Again, seems obvious, but if it is so simple, then why are one of every four people being penalized?! Thankfully, many online resources such as Apartments.com provide renters with resources/checklists to help plan appropriately for the move-out process (Pirulis, 2020):

Give Proper Notice – Many complexes have policies regarding when notice must be provided to be eligible for receiving the security deposit back. Failure to do so on-time could result in a total loss regardless of how sparkling clean the apartment is left in!
Consider a Cleaning Service – Residents should assume that Managers/Landlords have seen a TON of “clean” apartments. While the term is somewhat subjective, a local cleaning service may be able to help if the task is too much to handle oneself.
Take Pictures – A reference point following move-out will be very beneficial should any concerns arise regarding condition of the unit.
Schedule the Walkthrough – Consider walking through the apartment with the Manager/Landlord. This activity provides an atmosphere for open communication about any issues and associated costs prior to receiving the bill.

AFI Property Managers are trained to begin renewal communications 120 days in advance of lease expiration. With each renewal communication, Residents are given the Move-Out Cleaning Guidelines Checklist that states minimum cleanliness expectations for every room, floor, countertop, appliance, etc. in the apartment. Receiving an apartment back in rent-ready (or close to) condition not only saves time and money for the Manager, but will help ensure that Residents receive their security deposits back!

References:

Lassman, C. G. (2019, November 19). The One Thing People Forget to Clean When Moving. In ApartmentTherapy.com. Retrieved from https://www.apartmenttherapy.com/move-out-cleaning-mistake-262210

Pirulis, A. (2020, April 30). The Essential To-Do List Before Moving Out of an Apartment. In Apartments.com. Retrieved from https://www.apartments.com/blog/the-essential-to-do-list-before-moving-out-of-an-apartment

Summertime = Lease Time!

April 13, 2021 Business plan, Current Events

Many Property Owners and Managers alike will find that the transition to warmer weather can mean added challenges in terms of general occupancy. With summer just around the corner and more renters searching for a new place to call home, this is the prime time to not only recover occupancy, but pre-lease for months to come (Bennett, 2018). Owners, Operators, and Onsite Teams can all use these following tips help to increase an assets performance, occupancy; and ultimately, top line income. The most critical time to do this is approaching – start planning now!

Full pipeline, full property.

First, the property must have adequate leasing traffic. Online advertisements should provide a unique selling proposition to attract consumers in the target audience. The listing should match the market, without blending into the market. Examples of online advertising sources include Apartments.com, Facebook, Google, etc. It is important to continually track which application sources yield the highest quality leads.

One of the biggest factors of driving quality leads to the apartment complex is the online reputation of the property. According to LinkedIn, the consensus is the sweet spot for online rating average is generally between 4.2 and 4.7 (Callaghan, 2017).

2. Consistent, personal communication.

It is not only vital to call every lead immediately, but to also follow up with every received guest card. Guest cards are typically completed in advance of a prospect visiting the property and indicate that individual is already interested in the community! AFI expects Onsite Teams to respond to new guest cards within seven minutes of receipt and contact each individual three times daily (at minimum) by phone, text, and email. Some helpful items we can learn from guest cards include various aspects of what renters may be looking for in an apartment:

Working from home? The free Wi-Fi will be perfect!
Looking for family friendly activities? Tell them about the community pool and park down the street!
Safety concerns? Feel at peace with ample exterior lighting and security doors!

3. How does the property look to someone passing by?

Curb appeal is the first impression the community makes to a visitor and is an opportunity to invoke a “wow” factor right from the start. Planting rows of flowers, touching up paint, professional landscaping, and keeping the parking lots clean not only attract people to visit the property, but also invokes a sense of pride and may encourage some renewals!

While this is not an exhaustive list of leasing techniques, should all these items be working together simultaneously, great results are much more likely! Make sure not to fall behind this summer. Start making plans now to be 100% occupied through the Summer, and in to Fall!

References:

Bennet, S. (2020, July 30). How does seasonality impact rent prices? Retrieved April 08, 2021, from https://www.apartmentlist.com/research/best-time-of-year-to-rent

Callahan, S. (2017, August 27). The power of online reviews to boost sales. Retrieved April 08, 2021, from https://business.linkedin.com/marketing-solutions/blog/b2b-beat/2017/the-power-of-online-reviews-to-boost-sales

Seasonality.” What is it? How Does it Affect Your Community?

March 31, 2021 Business plan

According to ApartmentGuide.com, over 35 million Americans move each year, many of which will make the transition during the summer months between April – August (Gregory, 2020). With over 43 million renters in the US, Managers and Owners alike need to be aware of the phenomenon referred to as Seasonality.

Generally defined, Seasonality is a characteristic of a time series in which data experiences regular and predictable changes that recur at specific points each calendar year. Apartment searches and moves follow this same seasonal trend where searches begin a gradual increase in January, and slowly ramp up to their peak in August. Moving to a new community begins to escalate in March before a similar peak in August (Brouwer, 2018).

Given this measurable trend that has been observed year-over-year, it is reasonable for Property Managers to assume an average occupancy loss of between 10-20% just in the peak months of June – August alone. On a 200-unit asset, this means anywhere from 20-40 units that need move-outs and inspections completed, scheduling of any maintenance or vendor labor inside of the unit to get it ready, all while simultaneously marketing the unit for rent to avoid any income loss!

The amount of work to receive, turn, and lease-out even a single unit can be a daunting task for onsite teams depending upon the condition of the unit, let alone when Managers get a few dozen units back at the same time. Prioritized checklists like the one provided by Apartments.com can help ease the turnover burden when managing multiple vacant units (Kenan, 2020):

Advertise ASAP – As soon as you receive notice from current residents, do not wait to advertise the upcoming vacant and try to get it pre-leased!
Schedule Vendors – Almost simultaneously with advertising the unit, key vendors should be scheduled quickly to allow ample time for all repairs to be completed.
Walkthrough – While you can already have vendors scheduled for routine and common items, you will not gain certainty of what exactly needs repaired in a unit until you can walk it with the current resident.
Change Locks – Following walkthrough, make sure that all keys have been returned and apartment is secure.
Final Cleaning – A thorough cleaning can be a time-consuming task, but cannot be forgotten to ensure the new tenant receives the unit in the best possible condition.

AFI Managers believe that the best way to soften the blow of tenant turnover is by ACHIEVING RENEWALS! The more DELIGHTED residents that continue to renew, the easier the Managers job becomes. However, when a move-out does occur, we encourage staff to NEVER WAIT. Managers should begin working renewals 90-120 days IN ADVANCE of lease expiration date to ensure work is scheduled promptly and that ample advertising time is allowed for upcoming vacancy, all while ALWAYS FIGHTING FOR THE RENEWAL!

References:

Brouwer, Chris. “How Does Seasonality Impact the Rental Market?” www.apartmentlist.com, ApartmentList.com, 5 Feb. 2018, www.apartmentlist.com/research/rental-market-seasonality.

Gregory, Lesly. “The Ultimate Moving Checklist + Printable Reminders.” www.apartmentguide.com, ApartmentGuide.com, 20 Mar. 2020, www.apartmentguide.com/blog/apartment-guide-moving-checklist/.

Kenan, Jamia. “Nine Step Apartment Turnover Checklist .” www.apartments.com, Apartments.com, 22 Oct. 2020, www.apartments.com/rental-manager/resources/article/nine-step-apartment-turnover-checklist.

Manolas, Kasia. “When is Peak Rental Season?” www.avail.com, Avail.com, 7 Aug. 2019, www.avail.co/education/articles/when-is-peak-rental-season.

“Number of renter occupied homes in the U.S. 1975-2019.” www.statista.com, Statista Research Departments, 5 Nov. 2020, www.statista.com/statistics/187577/housing-units-occupied-by-renter-in-the-us-since-1975/.

“Spring” into Action! Seasonal Landscaping Tips.

March 11, 2021 Business plan, Current Events

As of March 20^th, 2021, the Spring Season is officially upon is! Are you ready for the necessary landscaping changes/improvements that comes with warmer weather?

Whether one is living in a residential home, or managing a multi-unit apartment building, the following items should always be addressed as we start to see that Winter snow melting away (Render, 2021):

Gutter Cleanup and ridding downspouts of accumulated debris.
Be Cool and check on your A/C system!
Seal It Up! Have your windows and screens taken any damage from the changing temperatures?
Prep Your Lawn/Garden. Tree trimming, pruning shrubs, or simply adding fertilizer are all examples of simple ways to care for your lawn even before the start of the new season.

Through years of Multifamily Apartment Management experience, AFI has developed a robust understanding of which seasonal landscaping items are most important to tend to right away. However, for new homeowners or overwhelmed operators, appropriately prioritizing a multitude of tasks can be a challenging endeavor.

The team at Landscape Management provides some helpful tips for getting started with Spring Landscaping this season (Herrick, 2021):

Step One – Cleanup: Before looking to “beautify” or improve on a specific area, one must first clear out any existing debris or loose foliage that may have scattered from the Winter.
Step Two – Keep Equipment Ready: Anyone that has lived in Missouri knows that the seasons can change in an instant. Keep cleanup equipment ready to go for prompt remediation following any one-off winter events that may occur later than expected.
Step Three – Prioritize Edging: Properly edging a freshly cleaned planter bed is a great way to immediately improve the curb appeal and give the property a nice, clean appearance.
Step Four – Keep Plants Growing: Pruning allows for existing plants to sprout new leaves that can provide fresh foliage all year long. Do not forget or be afraid to trim away!

Any of the items above can be completed through the utilization of an experienced landscaping company, or individually with the right equipment. Finding the right solution for your property can make this Spring the most beautiful yet!

References:

Herrick, Christina. “Spring into action: How to start the season strong.” www.landscapemanagement.net, Landscape Management, 19 Feb. 2021, www.landscapemanagement.net/spring-into-action-how-to-start-the-season-strong/2/.

Render, Jessica. “7 tips to get your home ready for spring.” www.consumeraffairs.com, Consumer Affairs, 5 Mar. 2021, www.consumeraffairs.com/news/7-tips-to-get-your-home-ready-for-spring-030521.html.

Business plan

October Quarterly Maintenance!

Is it Time to Hire a Property Manager?

AFI Manager Spotlight! – July 2021

How to Sign MORE Leases!

Managing a Successful Apartment Complex.

How to Get an Internship: The AFI Difference!

Move-Out Cleaning Checklist

Summertime = Lease Time!

Seasonality.” What is it? How Does it Affect Your Community?

“Spring” into Action! Seasonal Landscaping Tips.

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