Business plan

Do Not Wait – Renew Now!

30, 60, 90 days, when is the right time for Property Managers to begin thinking about lease renewals? AFI thinks the sooner, the better! As the beginning of March is right around the corner, surely it is too soon to be thinking about leases expiring in May or June, right? Think again!

While most renewals are signed 30 days prior to lease expiration, there can be a great benefit to both Property Managers, and Residents alike when it comes to getting that renewal taken care of early. According to ApartmentGuide.com, “Most people sign 12-month leases in the summer, meaning that they also end around that time, so this is when the highest number of new apartments are coming on the market. The downsides are you’ll have to act fast and face higher rent — there are a lot of other renters looking for the perfect place at the same time” (De La Cruz, 2020).

With peak season for marketing and move-outs being in the summer, what then are the benefits for Property Managers when it comes to early renewals (Thomas, 2020)?

1. Build Relationships with Tenants – Long-Term or happy residents will appreciate knowing they are being thought about “ahead” of time.
2. Save Time & Money – Why market a unit that is occupied? Residents should be encouraged to make decisions regarding renewal vs move-out as early as possible in order to allow for an ample amount of marketing efforts to take place.
3. Less CHAOS – New move-ins, unit turnover, community marketing, walk-ins, showings, summer maintenance issues, etc. These are just a few of the items Managers will be addressing over the busy summer months. Why add renewals to an already full plate?

As renewal rates have grown as high as 54% nationwide at the end of 2020, what then are the benefits for the Residents to sign early renewals (Ehmann, 2020).

1. Beat the Crowd – As stated previously, your lease is probably not the only one up for renewal in the given month. Get ahead of the game and allow yourself time to make a thoughtful decision by considering an early renewal.
2. Upgrades – Would you be more satisfied in your apartment with a fresh coat of paint or a new appliance? Making these requests in advance of your renewal can give your Property Manager time to carefully consider the accommodation and budget appropriately.
3. Moving Out & Next Steps – If you have decided to move out of your current community, do your Property Manager, and yourself a favor by communicating this information early so you can focus on what is next!

Whether you are an Owner, Operator, or Resident, AFI recommends reviewing your move-out dates and planning as far in advance as possible. Eliminate the stress, eliminate the confusion, eliminate the “what-ifs,” and act now!

References:

De La Cruz, Emmelie. “When is the Best Time to Rent an Apartment?” www.apartmentguide.com, 27 Mar. 2020, www.apartmentguide.com/blog/best-time-to-rent-an-apartment/

Ehmann, Chuck. “Apartment Lease Renewal Rates Continue to Climb.” www.realpage.com, RealPage, 1 Sept. 2020, www.realpage.com/analytics/apartment-lease-renewal-rates-continue-climb/

Thomas, Cat. “Should I Renew My Lease Agreement with my Tenant?” www.rentecdirect.com, 24 Aug. 2020, www.rentecdirect.com/blog/lease-renewal/

While the weather is remains quite chilly in Columbia, MO, we are forward-thinking regarding the coming Spring season and what that means for our Onsite Teams. Specifically, an increased focus on beginning quarterly, and completing annual maintenance items should be on everyone’s minds!

“While regular preventative maintenance will not eliminate all issues, it is a major money-saver in the long run. At the core of preventative maintenance, your goal is to catch minor issues before they grow into major, more expensive issues” (Deming, 2020). Why wait until tomorrow to correct today’s issue?

While comprehensive maintenance items are likely more effective on a staggered basis (allowing Managers to see the property in all seasons) the following should be included on a preventative maintenance schedule once per year at minimum:

1. Test Smoke and Carbon Monoxide Detectors – These safety devices should be installed in each apartment and tested at least once per year.
2. Pest Control – Can be outsourced to a local contractor or completed in-house with an easy-to-mix solution that is spread on a recurring basis.
3. Water Damage or Leaks – Water issues are some of the more common problems that can start very small but end up doing a ton of damage if not addressed properly.
4. Replace AC Filters – When filters become clogged and dirty, it can require the system to work harder potentially putting a big-ticket expense item at an increased risk of failure.
5. Check for Activity that Violates the Lease Agreement – Routine maintenance can also serve as an opportunity for Onsite Teams to be increasingly vigilant of potentially harmful tenant activity.

AFI Onsite Teams receive access to a robust online knowledge base that includes extensive documentation of current processes and SOPs. These processes include company-policies pertaining to more common items such as landscaping standards, as well as comprehensive checklists for quarterly, bi-annual, and annual maintenance items.

While no checklist is perfect, we can adhere to the best practices learned over years of experience and adjust when necessary. As best practices and SOPs will undoubtedly continue to change, the goal will always be to remain in front of serious issues and prevent high-cost renovations.

References:

Cifani, Sara. “10 Routine Preventative Maintenance and Repair Duties for Landlords.” www.dumpsters.com/blog, Dumpsters.com, 19 Dec. 2018, www.dumpsters.com/blog/landlord-repair-and-maintenance-checklist.

Deming, Micky. “The Landlord’s Preventative Maintenance Checklist.” www.avail.com, Avail, 6 Oct.2020, www.avail.co/education/guides/complete-guide-to-rental-property-maintenance/preventative-maintenance-checklist.

Leadership is commonly defined as the action of leading a group of people or an organization. However, commonly published leadership author, Warren G. Bennis, ventures that being a “Leader” is more complex than simply having “Followers.” “Leadership is having the capacity to translate vision into reality” (Forbes, 2013).

Who then, by Bennis’ definition, can qualify as a leader? Someone who simply barks orders and demands that his or will is implemented without a second thought? Or perhaps it is the individual that aligns their subordinates under the common goal or mission of that person/organization? Forbes.com identifies the following traits that almost all successful leaders possess in one capacity or another (Forbes, 2017):

1. Effective Communication – Leaders can clearly and succinctly explain to their teams everything from an organization’s long-term goals, to specific tasks or duties.
2. Accountability & Responsibility – An effective leader must take responsibility for their own mistakes/shortcomings and encourage team members to do the same while driving towards constant improvement.
3. Team Building – Successful leadership is dependent upon the people a leader can bring around them and align in the direction of a mutually beneficial goal.

AFI is responsible for the onsite operations of thousands of units across the country and effectively manages these assets through the implementation of a lean manufacturing model. Therefore, ensuring that the skills/resources necessary to effectively manage hundreds of individuals remotely are readily available is of the utmost importance. Often, one-on-one, in-person, and individualized instruction/guidance has no substitute.  

Some advantages of onsite, in-person mentorship are:

1. Outside Perspective – Without being physically present onsite at the asset from time to time, it can be easy to misunderstand or underestimate the magnitude of work onsite teams may be completing or issues they may be facing.
2. Task Importance – By spending a few days (or even a few weeks) to work with the management team at the property, we assure our onsite staff that their work is not just important, but critical to the continued realization of our company’s Mission, Prospering All Stakeholders.
3. SUPPORT – Sometimes onsite teams just need help. An extra set of hands a few days a month has proven to make a big difference to team morale and performance.

We believe the willingness to physically travel and be present where needed, when needed, is an obligation of AFI as the property operator and should not result in a significant addition to incurred expenses at the asset. To that end, AFI REFUSES to incur hotel charges and instead lodges onsite in a vacant unit whenever visiting (often sleeping on air mattresses). Everyone from our Interns, to company Leaders/Executives understands the importance of providing support and leadership to onsite teams whenever needed and minimizing costs all along the way.

References:

Kruse, Kevin. “What is Leadership?” Forbes, 9 Apr. 2013,                www.forbes.com/sites/kevinkruse/2013/04/09/what-is-leadership/#1b31f0395b90

Patel, Deep. “11 Powerful Traits of Successful Leaders.” Forbes, 22 Mar. 2017, www.forbes.com/sites/deeppatel/2017/03/22/11-powerful-traits-of-successful-leaders/#5e2b412a469f

What are a few things that come to mind when someone first thinks of “Winter?” Chilly weather, warm fireplaces, or possibly more forward-looking to the start of the holiday season? How about ensuring that your lawn receives proper aeration and over-seeding before the end of September?

While not necessarily the first thing on someone’s mind, this process may in fact be one of the most important things that any Homeowner (or Property Manager) has completed prior to the first frost of the year. Aeration and over-seeding can help ensure that a community’s landscaping survives the harshest of Winters and is adequately prepared to look better than ever in the Spring and Summer months.

So, if such a critical component to a robust landscaping schedule, then what exactly IS aeration and over-seeding?

Aeration is a process that mechanically removes plugs of soil and deposits them on the top of the surface. As these cores break down, the surrounding soil, now relieved of compaction, will allow oxygen to fill in the holes. At this time, it is most beneficial to over-seed your lawn with the most desirable blends of turf grass (Spring-Green.com). According to the Kansas State University Research and Extension Center, “The arrival of September with the milder conditions helps revive the summer stressed turf which naturally wants to grow and thrive. Therefore, it is important we give the grass what it needs to fully recover from the stress of summer (johnson.k-state.edu).

LawnCare.org provides five benefits Residential Property Owners and Managers alike should see immediately as a result of properly aerating and over-seeding (lawncare.org).

1. Reduction in the compact nature of the soil underlay in the lawn
2. Improved drainage along with a decreased amount of runoff
3. Alleviation in damages caused by droughts
4. Limits the development of thatch (loose and intermingled organic layer of dead shoots, stems, and roots)
5. Allows for improved flow of air, water, and other nutrients directly into the roots’ system

Who does not love the feeling of soft grass between their toes or the sight of families enjoying a lush yard? AFI recommends consulting with your property’s preferred landscaper to discuss the best aeration and over-seeding schedule before outside temperatures drop too low!

References:

“Aeration & Overseeding.” Spring-Green.com, Spring-Green, www.spring-green.com/service/aeration-and-overseeding/#:~:text=Aeration%20is%20a%20process%20that,will%20fill%0in%20the%20holes

“September: Time to Core Aerate Cool Season Lawn.” Johnson.k-state.edu, Kansas State University Research and Extension, www.johnson.k-state.edu/lawn-garden/agent-articles/lawns/september-core-aerate.html#:~:text=September%20is%20a%20good%20time,of%20a%20healthy%20maintenance%20program.&text=Core%20aeration%20is

“Lawn Aerating.” LawnCare.org, www.lawncare.org, 24 Sept. 2011, www.lawncare.org/lawn-aerating/

The mission of AFI is to Prosper All Stakeholders. “Prosperity” is defined as, “the condition of being successful or thriving.” While clearly defined, “prosperity” differs from person to person. Some may feel a sense of success from being promoted at work, receiving praise from a friend or loved one, or maybe even simply making it through a challenging day. The AFI team believes that in order to prosper, in order to feel successful, one must first feel safe.

AFI acknowledges that the tenants residing at complexes we manage are in fact our stakeholders; therefore, it is our mission to ensure both their prosperity and safety. Thankfully, we are currently living in one of the safest times in our country’s history. An individual’s chances of being involved in a random crime are as low as they can be for a large, diverse society (Grohol, 2019).

Despite statistics, safety is more abstract and can be heavily influenced by one’s background and previous life experiences. What feels unsafe for one, may feel perfectly safe for another. Dr. Anita Zuberi notes perceptions of a lack of safety have an adverse effect on adolescents. “Feeling unsafe can lead to limited personal freedom, social isolation, and a lack of trust, while feeling safe is linked with positive general well-being (Zuberi, 2018).

AFI believes that our trained/certified Property Managers living on site at the property they manage instantly provides comfort to our tenants, and ensures that the community is a safe place for all who want a quiet location to enjoy their lives.

By living on site, AFI Managers have a greater sense of ownership for the property which they are responsible for and can quickly respond to serious issues. In addition to the benefits listed below from Appfolio.com that Owners experience, our Managers themselves also realize several advantages that living off site would not otherwise allow them (Miller, 2012):

Property Owners:

• Interest in the Investment – Like Owners, On-site Managers are heavily invested in the community as any improvements or deficiencies also effect where they live.

• On-The-Spot Service – Owners and residents alike should recognize the benefit of extra security/service that comes with a 24-hour On-site Manager.

• Selling to Prospective Residents –
  On-site Managers can best communicate the benefits of their property because they live there themselves!

Property Managers:

• Increased Efficiency – AFI Managers save both time and money with full rent concession for living on site in addition to zero daily commute.

• Increased Urgency – On site emergencies can be addressed quicker by AFI teams that are intimate with any issues.

• Increased Trust – Have you ever had to try selling something you would not buy yourself? AFI Managers have not!

Owners, residents, and our Managers themselves all realize substantial benefits from living on site. Because trained, accountable staff are placed at the asset, AFI believes we are growing one step closer to realizing our mission of Prospering All Stakeholders.

  References:

Grohol, John M. “Feeling Unsafe in a Very Safe World.” www.psychcentral.com, Psych Central, 11 July, 2019, psychcentral.com/blog/feeling-unsafe-in-a-very-safe-world/.

Miller, Aimee. “Explaining the Advantages of On-Site Management To Owners.” www.appfolio.com, Appfolio Property Manager, www.appfolio.com/blog/2012/10/explaining-the-advantages-of-on-site-management-to-owners/.

Zuberi, Anita. “Feeling Safe in a Dangerous Place: Exploring the Neighborhood Safety Perceptions of Low-Income African American Youth.” Journal of Adolescnet Research, vol. 33, no. 1, 2018, pp. 90-116, doi:10.1177/0743558416684948.

According to the Bureau of Labor Statistics, the unemployment rate in the US is currently 3.6%, the lowest it has been since 1969. Qualified job seekers will likely look at this news favorably, as it means many employers are having to increase wage offerings in order to attract top talent. However, to Property Owners, news of a thriving economy can be detrimental to an already struggling asset.

In terms of maximizing the profitability of an asset, the Property Manager plays one of the largest roles in implementing solutions to improve performance and effectuate change onsite. When a reliable and on-purpose individual is placed to oversee the property, Owners can feel more at ease with taking a step back and relying on their team to achieve the desired results. Unfortunately, when Owners find themselves working with an under-performing Manager, making a transition can be a difficult process.

Continuing to work with an underperforming Manager can appear to be a more appealing solution as various factors can make the search for a replacement quite difficult:

1. Unqualified Candidates – Unemployment is at an all-time low meaning many employers are considering candidates that may not have the qualifications necessary to be successful in the position.
2. High Competition – Again, unemployment is LOW; therefore, the candidates that are well-qualified are likely being sought after by many companies within the same industry.
3. Hiring Budgets – As unemployment rates continue to drop, employers begin to face higher wage demands for qualified candidates that may simply not be able to be met.

AFI has designed and implemented a robust, transparent, and high yield hiring process that results in quick turn-around a placement of qualified Managers onto a property in our nationwide portfolio. This process consists of seven steps (sometimes more) that utilizes several filters ultimately resulting in a final decision matrix.

Should an applicant survive all filters, he or she will receive a full-time job offer to work for the owning entity of an AFI-Managed asset. This process is easily replicated across any role AFI could need to hire for and has given our team confidence in the ability to quickly identify high-quality candidates. 

Gipson, Jeff. “Hiring In 2019: The Struggles And The Solutions.” www.jamesallenco.com, JamesAllenCO.com, 3 May 2019, jamesallenco.com/hiring-in-2019-the-struggles-and-the-   solutions/.

Irwin, Neil. “The Good News: The Job Market Is Solid. The Bad News: The Job Market Is   Solid.” www.NYTimes.com, NY Times, 5 July 2019, www.nytimes.com/2019/07/05/upshot/jobs-report-analysis.html.

Le Phan, Linda. “The biggest hiring challenges we’re all facing today, according to 15 hiring experts.” www.TheLadders.com, The Ladders, 13 Sept. 2019, www.theladders.com/career-advice/the-biggest-hiring-challenges-were-all-facing-today-according-to-15-hiring-experts.

“News Release – November 2019.” Bureau of Labor Statistics, vol. 19, no. 1868, Nov. 2019.