Over the years Texas weather has become the brunt of many jokes!
From the severe heat during the summer months to the volatility of the fall and winter, our weather is quite nonsensical and, while this lends quite a bit of humor to our lives, it can make planning quite difficult.
Preparing your rental property for Fall should be a joint effort between you and your tenant.
You should be sending out seasonal letters with instructions on steps the tenant should take to prepare themselves and the property that they occupy for the season.
However, the onus is not entirely on your tenant to maintain and prepare the property. Make sure you are doing your part to keep the property safe and protect your investment.
One of the most important preparations is to ensure that your HVAC or heating system has been maintained and serviced. Heating is simply a necessity and in the eyes of the legal system, it is a requirement for the health and safety of tenants. Having the heating system checked out yearly before cooler or cold weather hits could avoid bigger maintenance problems and making necessary repairs can prolong the life of the heating system.
Here are some quick tips for fall preparation!
Exterior Preparation
- Check siding to ensure that it is stable and secure
- Have the roof checked for weak spots
- Insulate doors and windows
- Search the property for areas that may need to be caulked to improve heating efficiency
- Cut back any overgrow vegetation (especially if it is hanging over any part of the property)
- Clean out the gutters before fall leaves have had the chance to settle in. (Bonus Tip! placing a gutter guard into the shaft will make future cleanings much easier!)
Interior Preparation
- Have the chimney swept to remove any blockages
- Check all carbon monoxide and smoke detectors
- Ensure the weather stripping on exterior doors and windows are functional
- Check your attic insulation for gaps
As the first days of fall approach, you will need to ensure your property is ready. This will mean coordinating multiple vendors, admittance to the property, and updating/educating your tenant on their duties. You will certainly have your work cut out for you!
Interested in letting a professional take care of these tasks for you? Contact Frontline Property Management today! We have the experience to handle your investments through any season, and protect your frontline to protect your bottom line!
Have a property that you need help with? Just fill out this form and we will reach out to see how we can help!
Why You Need a Property Management Company in the DFW Area
Whether you are an out-of-state property owner, a longtime local landlord, or are just getting into the property rental business, there are plenty of reasons why you need a company like Frontline Property Management on the ground for you in the DFW area.
2021 has been an interesting year for the Dallas / Fort Worth rental market – to say the least. As we’ve discussed before, the DFW is a very attractive market for Millennials & Gen Z, and is one of the top destinations for out-of-state moves. Investors have used this information to capitalize on the need for housing – and you may have, too! You have a property in a hot market that you’d like to rent. But now what?
You Need Management that Knows the Market
On top of the complications that the pandemic has had on the housing market, the failure of the Texas power grid in February of 2021 exacerbated conditions by forcing many renters out of damaged properties. In a seller’s market like the one we’ve seen this year, many individuals who would otherwise be buying houses are choosing to rent a bit longer. Meaning that there is immense competition between renters for available housing – which is good for DFW landlords. Competitive rental markets translate to higher rents in keeping with the average rent of a given neighborhood in the face of the market overall. A property management company that wants to grow your business is always aware of the many factors and nuances in the market.
You Need Vendors You Can Trust
Frontline Property Management employs many Property Managers who bring decades of experience to the table. The maintenance vendors we use are also experienced, vetted, and local. Relationships are what property management is all about! We take our time to strengthen our vendors with the online tools they need to be the most accessible and responsive. There’s an increasing number of vendors in the DFW area, which makes it daunting to choose a company to work with (particularly if you’re not a local). Transparent communication between our clients, our Property Managers and the vendors we use ensures that you are always up to date with your properties.
You Need Eyes, Ears, and Hands-On Management
While it takes a certain amount of business and research skills to stay on top of the market, there is no substitute for hands-on experience. You need Property Managers who know the Dallas / Fort Worth area down to the neighborhoods. You can trust the assessment of our Management team when it comes to evaluating your property’s value, condition, and what it takes to have it ready to become your passive income! With Frontline, you’re able to rest easy in the knowledge that our Property Managers are on top of any issues – sometimes before they start – so that you don’t have to think about it.
Out of state investors, especially, need to be able to rely on a company that can view, assess, and respond on-site.
You Need Management that Will Help Grow Your Investment
Property Management alone is only an organized system of processes. There are thousands of details to set up these processes, but to put simply it’s getting rental income from a tenant into your bank account. A Property Manager facilitates this process and cares for the physical property in the owner’s stead, but Frontline takes this relationship and builds on it by going a step further: We work to keep you informed. Not just about your property, but about what opportunities may arise due to market conditions. Our client newsletter provides you with up-to-date business information, including pertinent legislation. Property owners looking to get the most out of their investment, and then to grow their portfolio, will find that Frontline provides all of the necessary experience and drive to help you get there.
You Need Frontline Property Management
We’ve faced some unique challenges over the past two years, but Frontline has risen to meet them every step of the way. Utilizing our team of experienced professionals, we have been able to be proactive rather than reactive, and have continued to provide quality service to both our clients and our many tenants. We strive to strengthen our relationships and to create new ones as we move forward!
Contact us today to learn more about our Property Management team!
Have a rental property that you need help with? Just fill out this form and we will reach out to you!
5 Pieces of Tips and Advice for Investing in Rental Property
Written By: Andrea Erickson
Rental properties are a hot topic again since the real estate market is a madhouse currently, and many people are trying to figure out how to cash in on this. Although you can’t go back in time and buy properties when they were far cheaper: you can get the most income possible out of the currently available properties.
Here is some important information you should keep in mind when looking at which properties to invest in.
Consider if There’s Extra Land to Develop
When buying land, look beyond the current buildings that are sitting on it. Although things are far easier if you can rent out already finished units: there’s always room for more. While still maintaining common spaces, room for parking, and the apartments themselves, consider if there’s enough room on the property or neighboring property to expand the apartments further. The more units, the higher return, and the faster the property gets paid off so that it’s nothing but income.
Use Software to Manage Everything
Although it might seem obvious, many first-time renovators don’t realize how much goes into owning a rental complex: the more units, the more problems. Good software will let you track when an apartment was last renovated, how many issues a renter has caused, and who’s paid on time or not. Seek out landlord maintenance software that will help you track this information.
A worthwhile software should also notify you when a renter’s lease is closing soon, take care of maintenance, and be easy to use. If a property management app doesn’t have what you need, it’s never too late to switch to a new one.
Ensure the Property is Appealing
Aesthetics matter to everyone. Even though sometimes people will overlook an unattractive property if it means the costs are low enough: you don’t want your property to be like this. The lower the rent, the lower the profit. When purchasing a property, ensure that you pick one that people will want to move into.
The top things that build appeal are:
- Natural areas with trees and grass.
- Beautiful, clean, and fresh-looking exteriors.
- Amenities like pools and tennis courts are visibly well maintained.
- Gorgeous skylines if within a city.
- Attention to detail in everything from a well-maintained sidewalk to the apartment number signs.
The attractiveness can always be built upon by creating areas with natural beauty, like portions of land with trees and grass, or updating the interiors with the best flooring for rental properties.
Look Into the Current Rental History
If the property you’re looking at has already operated as an apartment complex or a rental property in general, what’s its history look like? How long have other land buyers overlooked this property? Ask the current owners how much they get on average for rent and if the current renters are responsible and pay on time.
Changing management doesn’t mean that the renters will necessarily have to leave, depending on the terms of their lease, so it’s a good idea to get to know the type of people who live in the area. If the complex seems to have a lot of eviction notices, or it’s in a place where the cost of rent wouldn’t be sustainable for the average wages of the area, this might not be a great property.
Don't Assume Any Project Could Be Considered Small
Looking at rental units to purchase, it can be tempting to view them the same way we view homes when we are buying them. A fresh coat of paint here, composite slate on the roof there, it might seem simple: but apartment complexes will quickly become expensive. Unfortunately, there’s no way to avoid these costs if they’re necessary, so when you’re shopping around, consider which projects you’d be willing to do for every single unit that you’ll be renting out.
It might not be a big deal to remodel the bathroom of a home, but remodeling the bathrooms of an apartment complex will eat up a lot of time and resources. Avoid this; take the time to make sure the property you purchase is the best fit possible. If you do need to do extensive updates, budget to ensure there’s room for that in your time and financial budget. Don’t leap into a project without knowing the full story.
Rental Properties Are Passive Income Gold
Whether you’re purchasing several apartment complexes or a single-family property, rental properties have the potential to divert thousands upon thousands of dollars to your bank account.
To build upon these properties, it’s good to update each space within the room by room when people move out. This will allow for a more gradual transition to a completely updated property while still ensuring that most units are in use or are more quickly available.
Andrea Erickson is a contributor to Innovative Building Materials. She is a blogger and content writer for the real estate industry. Andrea is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes.
Have a rental property that you need help with? Just fill out this form and we will reach out to you!
Determining Qualifying Criteria
Before detailing how to determine which criteria you will use for your applications, first be aware that you are legally required to inform your applicants of what they are. Making this information part of your application ensures that the applicant both has the opportunity to review the criteria and signs the document attesting as much. There are legal ramifications if this signature is not captured, as the presumption is by default that the information was not provided for review.
Details about the following criteria should be provided:
Criminal History
Specify which kinds of convictions and adjudications will disqualify an applicant. Establishing a clear timeframe will also better inform an applicant with a criminal background as to whether or not you will consider prior convictions from three, five, or twenty years or more in the past. Check out our previous post that discusses the criminal background check! Understand that requiring an entirely spotless criminal record is considered a violation of the Federal Fair Housing Act. Otherwise, having a substantive reason for disqualifying based on certain other convictions and adjudications (namely violence, sexual offenses, and drug manufacturing and distribution) is reasonable.
Previous Rental History
You won’t be relying solely on the information provided to you by the applicant. Using a third party (or several) to verify rental history will help you to establish the kind of renters the applicants are. By having the applicant sign a release form, you will be able to inquire as to whether their rent was paid on time, whether or not any lease violations were documented, if there were any pets with the applicant, and what condition the property was left in. You are entrusting your property to your future tenant, and you want to know that it is in good hands!
Current Income
The standard household income requirement is a gross total of three times the monthly rent. This comes from section 8 of the Housing Act of 1937 which in 1981 was amended to state that a tenant must pay at least 30% of their monthly income towards housing. Between the rising cost of living and wage stagnancy, some renters in large cities are spending up to two-thirds of their income on housing. According to the 2020 Joint Center for Housing Studies of Harvard University, one in four renters pays more than 50% of their income on rent. If this trend continues, you could expect (due to supply / demand) that income requirements will be reduced to asking that the total monthly household income is only twice the amount of rent. However, three times the monthly rent currently prevails as the industry standard and a change to that threshold is not on the horizon.
Credit History
Many landlords have a flat credit score threshold for their applicants, while others prefer a context-based approach. Credit scores as we know them today began in 1989. As a landlord, you will most likely use credit reporting to screen your applicant for unpaid debts and other financial burdens that exist outside of their monthly income. While you may decide not to rely on the score itself, you will need to review the report for information that will be pertinent to you as a property owner such as unpaid utility bills, evictions filed against your applicant, and bankruptcies. The leading cause of bankruptcies in America is medical debt, with two-thirds of all bankruptcies filed due to the high cost of healthcare. Being informed of where exactly your applicants stand financially will help you make the best decision in your process.
Failure to provide accurate or complete information on the application form.
As previously discussed, online applications open the door to increased fraudulent activity. If at any point in the process you determine that documents, contacts, or any other information is fraudulent, you can deny based on this alone. If you can’t count on an application being accurate, then you can’t use it to qualify a tenant!
Keep in mind (as always!) that these qualifying criteria standards must fall within the guidelines of the Fair Housing Act. Meaning also that they must be applied to every applicant, every time, no matter what! Standardization not only makes for effective processing, it also protects you in the event that an applicant assumes that they have been unfairly disqualified for your property.
Adding another buffer between you and the applicants is also recommended! You can do this by hiring a qualified and experienced Property Manager who will screen applicants on your behalf. Frontline Property Management has a team of Property Managers as well as a department dedicated to processing applications. Our Tenant Coordinators work every day to handle incoming applications and find you the best tenant for your property!
Contact us today to learn more about how Frontline Property Management manages thousands of doors in Dallas / Fort Worth and surrounding area, and how you can turn your property into truly passive income!
Do you have a property that you need help with? Just fill out this form and we will reach out to you!
Speed vs Accuracy: Efficiently Finding Quality Tenants
The Dallas-Fort Worth rental market is one of many (and one of the most) competitive rental markets in the nation. Due to the upward-trending boom in Millennial and Gen Z populations, as well as the unexpected conditions of the pandemic and the Texas freeze – there is a crunch for renters applying to properties. You may have felt the crush of applications and with it, the anxiety of meeting such an increased demand. While it is better to have more options rather than fewer when it comes to applicants, as paperwork piles up you may find yourself rushing to approve someone for the sake of having it done.
Not so fast.
You want to find a tenant who meets the standards you hold for the property. While you are not holding out for the best possible tenant in existence, you do want a tenant who absolutely qualifies. With the increase in document fraud and online scams, reviewing your potential tenants with a fine-tooth comb is necessary. But how are you able to do so when you have multiple applications on one property? When you are processing them all yourself while also receiving calls and emails and texts from agents, interested parties and applicants following up on their applications? Here are tips on how to be efficient, effective and most importantly, accurate in reviewing your applications:
Use an Application Portal
In a competitive market, applicants have zero time to waste. As properties are being snapped up, they need to be able to apply as quickly as possible. That means not having to trek to your office to pick up an application.
An application portal guides applicants through the process intuitively. Portals that require a registration will help you better track your applications to easily parse the completed apps from those in progress.
State Qualifying Criteria Up Front
It is your legal obligation to require that every applicant review the qualifications for the property that you manage. This includes the income requirement, your policy on the credit history and criminal background check, pet policies (including breed restrictions) – absolutely everything that needs to be considered before submitting an application. Eliminating the most obviously disqualified applicants before they apply is sure to lighten your workload and save both you and the applicant some disappointment.
Charge an Application Fee
If you want everyone to participate in a program, you make it free. When you want to restrict participation to interested parties who can pay, you charge an admission fee. It’s also true of applications. Processing applications costs time, and running screenings for applications costs money, which justifies charging an application fee.
You may, however, consider a reasonable compromise for your applicants: If you don’t process their application, don’t process their payment. If you have spent no time on an application and did not run a screening, then the applicant paid only for the privilege of being on a waiting list. This can leave a bad impression with applicants who would otherwise try to rent with you at a later time, or if your accepted tenant falls through. Renting housing is a business, which means that customer service is something to consider. You are not legally required to refund application fees at all in Texas, as application fees are considered nonrefundable so long as the law is followed.
Process Applications on a First-Come, First Served Basis
Utilizing an application portal makes it easier to pin down when exactly an application is submitted. Prioritizing applications on a first-come, first served basis is the easiest way to stay compliant with the Fair Housing laws, eliminating the opportunity for any bias to come into play when reviewing multiple applications. You simply take whoever is first, and work that application.
There is a big however – just because an application is submitted first does not mean that the application will remain in first place. When reviewing multiple applications, if your first application is missing documents or information, move on to the next completed application in line while they get back to you. An application can fall from first place to second in line, and so on and so forth as more applications provide everything that is required. Keep the lines of communication open so that your applicant can have the opportunity to provide the materials, but by no means should you lose out on the next potential applicant waiting on the first. Remember, these applicants are moving very quickly in this market, so while you may have multiple applications, don’t mistake any as a guarantee. Many applicants are inquiring into several different properties at once. There is simply no time to waste. Communicate quickly about missing information and move on.
Once you have the broad strokes of receiving applications down, you’ll find it easier to work through your application list in an orderly, systematic manner. Creating a Standard Operating Procedure in this way will help you be consistent and organized in the face of waves of applications. Knowing when to move on, who is immediately disqualified, and where to narrow your focus will help you find the right tenant in the right time.
If this sounds like a job in and of itself – you’re right! Frontline Property Management has a department that is dedicated to processing applications for our clients! Our Tenant Coordinators work daily to communicate with potential tenants, review documentation, run screening reports and comb through the details so that our Property Managers have all the facts when reviewing the results.
Contact us today if you’d like to leave the application process to the professionals and start enjoying your investment as a truly passive income!
Have a property that you need help with? Just fill out this form and we will reach out to you!
Application Process: Fraudulent Digital Documents (And How to Spot Them)
We’ve previously given tips on the application process as well as how to manage a property from out of state (or from any distance from the actual property). However, as time marches on in the digital world, we face new challenges.
A feature of processing applications in the age of remote work and distance is the upsurge in falsified documents. Unfortunately, as it’s never been easier to conduct the entire application process online, it’s equally as convenient for applicants to create mock-up documents. Here are a few ways to help sharpen your eye when processing your online applications!
Get Familiar
Processing documents whether online or in person will require a base knowledge of document types. Fraudulent documents are sometimes easier to identify in person due to the physical integrity of the documents, such as the particular lamination of a Driver’s License / State ID or the specific texture of banknote paper that Social Security Cards are made of. Being able to see and touch a document is handy, but online you will need to be familiar with the built-in security features that these documents have.
Texas Driver’s Licenses have changed multiple times, and the Under-21 IDs have a different orientation. Of course, you will have out-of-state applicants, so it will be handy to look up that state’s identification security features.
Social Security Cards have a history of carefully documented styles, which you will need to reference in relation to the date the card was issued. Other features make it difficult to forge, the noticeable of which are the font, print style and official seal.
Payroll statements are the most varied document that you will receive as a landlord. There is no standardized payroll sheet, and with the emergence of the gig economy, you’ll be looking at many more screenshots of direct payments than the traditional payroll. Being aware of different payment methods and payment processes will help you parse out the real from the fake.
Proofread
A great deal of fraudulent documents can be discovered with a brief review. Fraudulent applicants make common mistakes and spelling errors. On a proper document, all of the information will be consistent, and everything will be spelled correctly. Street names will be properly capitalized and business will have the correct designation (LLC, Corp, et al). Obvious photoshop or image manipulation will be easily identifiable in the signature line and in photos. ID photos are produced on a very consistent basis to help with this, and should not appear to be edited and should be consistent with the security features of the given ID.
Simply proofreading the submitted documents can flag a document as potentially fraudulent.
Reverse Image Search
Those who create fraudulent documents aren’t usually masters of the craft. There are thousands of templates online, not so that there are options to commit fraud, but because we live in an age of entrepreneurship and there has to be a system of payment for small business. Unfortunately, this does leave the door wide open for people to create a false payment record for themselves. And because you’re a landlord and not the IRS, you have very little to compare it to! Luckily, there’s a handy tool in Google Reverse Image search. Rather than scrolling through pages and pages of online payroll templates, you can upload the image and find it much more easily. (We do live in the future, after all!). Of course, these templates are made to be used, so just because a template matches doesn’t mean it’s fraudulent. Using your proofreading will come into play here: often, the fraudulent document will use the exact same check and batch numbers as the template, which is incorrect for a proper business to do.
Follow Up
The easiest and most important step to implement into your application process is to follow up on the application. As part of the process, you should have a release form that is signed by your applicant. This authorizes you to request both rental and employment information from the appropriate parties. With minimum investigative work, you should be able to find a contact number for a company or previous residence. You do not have to rely on the contact information provided by the applicant, and it best not to. Independent verification of the applicant’s information is critical to the application process – it’s the whole point!
For every application you should be contacting the previous residence yourself and following up with the current employer to confirm current employment information. They are under no obligation to release the information to you, but it is both a matter of fairness and due diligence that you follow up on every application.
If this sounds like a lot of work, it’s because it is! Finding a Property Manager who is effective not only at getting applications for your property, but also properly vetting them is key to finding a qualified tenant as soon as possible.
Reach out to Frontline Property Management today to explore the possibilities of never having to run your own applications again!
Do you have a property that you need help with? Just fill out this form and we will reach out to you!
Summertime Tips for Landlords
You should be sending out seasonal letters, communicating with your tenants what is expected to care for the property. A gentle reminder can go a long way to protecting your property against the damaging effects of summer – especially here in Texas! If you are wondering what exactly you should be requesting of your tenants, we have some ideas listed below!
Maintain Landscaping
After the bursting blooms of spring have faded, trees, grass and bushes are in full growth! It should be clear in the lease you have with your tenant who exactly is responsible for keeping everything trim and tidy. Grass lawns will need to be mown, trees and bushes will need to be kept in check and it’s the time of year where weeds will spring up in the side yards if left unattended. While a property “gone wild” is not exactly physically damaging, it could violate local HOA and City statutes, which can result in fiscal damages in the form of fines. Some creeping vines are as aggressive as they are attractive, and can split picket fencing, collapse chain link fencing, compromise the mortar of brick houses and force their way into cracks – which will damage the property! It’s much easier to maintain landscaping than it is to repair its damages.
Lock Up for Vacation
Many of us haven’t been on vacation in a while, so it’s only natural that a few precautions may have been forgotten! Remind tenants that they will need to protect the property if they decide to leave for a trip. Locking all windows and doors is the first step in preventing a break-in, but also making sure their security system is in order and that the property doesn’t seem unoccupied. Whether that’s leaving a light on, having a relative drop by the home, or parking a car in the driveway – every tip helps!
Barbeque Policy
Not every property can accommodate a barbeque, most often due to space. But when the sun’s out, the grills come out so you’ll want to have established the rules for your property. When, where, and how a grill can be operated (if allowed) will best inform the tenant on how to reduce injury to themselves, overhanging trees, and the property itself. Many HOAs have rules regarding how a grill can be stored on the property (out of sight!) in order to maintain a neat appearance to anyone driving through the neighborhood.
Be Aware of HVAC Issues
When the first hot day of summer rolls around, your phone will be ringing with tenants reporting that their A/C doesn’t work. Regular inspections, as well as regular maintenance, will prevent most of these calls. However, reaching out to your tenant lets them know that you are aware that it could be an issue, and are proactive in seeking a solution! Inform your tenants that cranking the A/C may do more harm than good, and that a moderately cool temperature will help their air conditioning last all summer long. A summertime inspection is a great opportunity to address not only HVAC issues, but anything to do with pests, insulation, wiring, the integrity of decks and fencing and other damages.
MultiFamily Considerations
All of the above are true of both single family homes and multifamily, but there are special considerations for multifamily residents! Common areas and pools are going to see an influx of resident traffic. Quiet hours may need to be established in order to keep the peace during long, hot nights. Pool rules will need to be enforced for the benefit and safety of all residents and visitors. Communicating consistently with your residents will assure them that their health and safety are being taken into consideration, and that shared amenities are available for all residents to use safely and without issue.
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Benefits and Challenges of Multifamily Property Management
Multifamily Properties may be the answer to the affordability issue that the nation currently faces. As we look forward to the post-2020 future, we will continue to see its effects on labor, wages, rent costs and the housing market.
This all affects how effective an investment your property is. Multifamily property management has a unique and quite variable set of benefits and challenges that you should be aware of whether you are renting out a duplex or are looking to build a high-rise apartment!
Getting into the Market
The Challenge: Entering the multifamily housing market is becoming a feat unto itself. There’s plenty of capital chasing after limited deals, so the competition is thick! For the same reason that many millennials aren’t able to afford their dream home, you may be facing a challenge in finding an existing property to invest in, or a lot to buy: bigger developers have seen the market trends and are moving in. Not only are single-family homes being purchased, which puts it out of reach for the average homebuyer, but developers are doing everything they can to meet the housing demand.
The Benefit: It’s not impossible to get into the market as an investor. You aren’t competing with homebuyers, and a single loan is much simpler to take on for multiple passive-income-producing units. Of course, the reason developers are focusing on multifamily is because it’s a great investment! Over the long run, multifamily housing remains steady even through economic downturns because people need affordable housing.
Buying to Hold (Rather than Sell)
The Challenge: In the past, the trend in housing as an investment was more “buy, lease, sell”: Buy a property, lease it out to recoup refurbishment costs, then sell the updated property at a net gain. However, more and more, you’re going to want to focus on the long-haul and hold the property.
The Benefit: Multifamily housing is a dependable source of income that has seen an increase in the length of residency. Increased multifamily tenancy has come as the result of the increased competition for single-family residences, the need for affordable housing, and the desire of some to build credit or save for a permanent home. In any case, steady management of multifamily properties is a guaranteed income for an investor!
Appealing to Multiple Generations
The Challenge: We’ve discussed before that there has been an increased focus on the generations that make up the largest portion of the rental population: Millennials and Gen Z. Not only is affordability at the top of the list, but environmentally sounds practices, convenience and location also dominate the rental desires of these generations who are willing to sacrifice space for walkability. However, Empty Nesters are a significant part of the growing rental population, and their needs are different. Empty Nesters generally have more disposable income and appreciate more space. So while you may be crunching the numbers on one-and-two bedrooms with reduced square footage to maximize profitability, you may be cornering yourself out of the Empty Nester market that prefers three or more bedrooms in a multifamily setting.
The Benefit: Remember that as a multifamily manager, you are not catering to an age range – you are catering to a lifestyle that renters want. Most people want peace, quiet, and a place to live their lives privately, wherever that may be. Implementing a variety of floorplans means that you can capture business whether it’s an extroverted Gen Z who likes to bike to the city or a retired grandparent who wants to keep a guest room open just in case they get a visitor. You are in no way limited with your plans moving forward, as the demand on each end of the spectrum is so high!
Short Term Rentals
The Challenge: Airbnb has disrupted the home buying and rental markets in a very short amount of time. Single-family homes have been removed from the market and turned into short-term rental properties that drive up home prices in areas that homebuyers were previously able to afford. However; the screening process for short-term renters is often unregulated and the lack of a thorough screening can put your property, and other tenants, at increased risk.
The Benefits: Multifamily units as short-term rentals caters to the here-and-gone crowd without alienating the local population. Some property managers create properties for the sole purpose of short-term rentals, while others at least keep them separated from the long-term lease-holders. The demand isn’t quite there in many areas for this to be considered absolutely steady income, but it is a great way to attain a resident while marketing for long-term leases.
Zoning
The Challenge: Residential real estate in most major metropolitan areas are primarily zoned for single-family housing. Multifamily buildings and complexes have consistently faced suppression as affordable housing has been mischaracterized as “low-rent”.
The Benefit: Some places are revisiting that strategy in order to combat the affordability crisis. In fact, you aren’t only seeing apartments in urban areas anymore – they’re going suburban! As the ever-increasing need for housing continues in the competitive housing and rental markets, multifamily is the practical solution for many cities. Not only is zoning adapting to the changing climate, but with the latest economic crisis on top of the continuing economic issues the average renter faces, there is the probability that legislation that introduces rent control will be more prevalent. Coastal markets are likely to see these efforts long before the Texas housing market, especially in the Dallas / Fort Worth markets! But adaptability is key, and information is king!
Looking at multifamily property management, it can be easy to miss the forest for the trees. There is a huge breadth of opportunities for success with multifamily properties, and it’s one of the most versatile investments in real estate. Frontline Property Management has the experts and supporting staff you need, whether you’re building new or buying in – we want to help!
Contact us today to discuss your future in multifamily investment and property management!
Have a multifamily property that you need help with? Contact us today!
Housing will continue to go for a premium – people will always need somewhere to live, and every year more and more adults enter the housing market. Renting has increased in desirability due to the economic crises of the past decade. Younger generations buying houses is at an all-time low, and many older generations (empty nesters) are selling their homes and re-entering the rental market.
This is where you come in!
Unless your passion is particularly in housing, you most likely are in the business of real estate to earn money – specifically, a healthy passive income after an initial investment. Multifamily housing is an excellent way to begin investing in real estate!
What is a Multifamily Property?
Multifamily properties are exactly what they sound like – individual units that are either in the same building or that share walls. These units are occupied by different tenants/families. Hence, multi-family properties.
This is everything from a duplex, to condos, to high-rise apartments. (Keep in mind that, legally, these are not all treated the same – we’ll get to that!)
Examples of other multifamily property types are:
- triplexes, fourplexes
- bungalow courts
- townhouses, garden apartments
- multistory apartment buildings
Local & Federal Governance - Fair Housing Act and the Americans With Disabilities Act:
The Federal Fair Housing Act leaves very few exemptions for property management, but one such exclusion is that apartments of four units or less are exempt if the owner lives in one of the units.
https://cxre.co/real-estate-investment/fair-housing-act-and-ada-regulations-in-texas/
Commercial Real Estate Properties (offices, warehouse & other non-residential buildings) must be more concerned with the ADA than the FHA, as the FHA concerns residential properties. However, multifamily properties must be well-versed in both the FHA & the ADA. While the bulk of business comes from residential income (therefore regulated by the FHA), public access areas, like lobbies, gyms, swimming pools, or leasing offices, must be ADA compliant.
Why Do Renters Choose Multifamily Properties?
Multifamily is playing a key part of urban infrastructure development! As suburban sprawl spreads outwards, for multifamily units in urban areas like DFW, the sky is literally the limit! Multifamily units ability to build housing upwards creates homes in areas that younger generations want to live in!
We’ve discussed before that Millennials and Gen Z are the fastest-growing rental population. The priorities of these financially-pressed generations focus on convenience, accessibility to social gathering places, affordability, and management values that acknowledge and reflect their own. Multifamily is flexible enough to accommodate these demands.
For empty-nesters and retirees, a multifamily setting is a reduced workload from the continuing maintenance of home ownership. Multifamily properties take on the burden of repairs and maintenance for older renters who would much rather spend their golden years relaxing!
Multifamily properties continue to be in demand, and will certainly grow as the population does! Management of these properties is a unique challenge for a landlord. Everything from applications to tenant issues, multiplied by the number of units that you manage – it can be quite the task! An experienced Property Management team like Frontline Property Management can help you assess your goals, manage your tenants and take the legwork (and guesswork!) out managing your multifamily properties!
Contact us today for more information about how we manage thousands of doors in the Dallas-Fort Worth area!
Sustainable Property Management: What Green Features are Millennials and Gen Z Expecting?
With an increased focus on climate and weather-related realities that we face, younger generations (who are quickly becoming the largest portion of the rental population – Millennials are already the largest group of homebuyers) are more likely to actively seek out businesses and properties that feature Green amenities. As a property owner with your eye on the market and a finger on the pulse, you’ll be exploring which features are right for your property and for your current and future renters!
Meeting the demands of Millennials and Gen Z renters will not only secure a stronger rent now, but will leave you well-positioned to increase attraction and retention down the line. Here are a few features that these renters are looking for:
Recycling Services
Making recycling convenient is not only something that tenants are looking for in a new complex; policy has now begun to reflect this growing concern. As of Jan 1, 2020, Dallas has had an ordinance in place which requires apartments & multi-family dwellings of more than 8 units to provide recycling facilities on-site. Fort Worth has had such a policy in place since 2014.
Smart Home Features
Between 89-95% of Millenials and Gen Z renters own smartphones. Implementing this basic tech in your property management is a direct avenue to reach these renters. There has been an increase in gadgets like keyless locks, doorbell cameras and smartphone-controlled led security lights, but also in higher-tech features such as “virtual doorman” services and extended smart home devices such as Amazon’s voice-activated Alexa. Property Management Apps mainstream communication between tenants and Property Managers.
Offering apps and devices that can keep up with the virtual age may not only prove to be energy efficient (think of lights that turn off when you leave the room, or a thermostat that can be controlled remotely) but will also assure your tenants that you are making investments in sustainability that provides more convenience and comfort for them – all of which bolters the rent cost.
Energy Efficient Appliances
Considering that renters with tight budgets and who pay for their own utilities will be more concerned about energy efficiency, it will be well worth it to consider appliances that reduce energy consumption. Renters consistently rank energy-efficient appliances as the top amenity request. We’ve reviewed other improvements that can be made to the property, but when upgrading an older home, the appliances are an easy Green win to list in your advertising!
Location, Location, Location
Millennials and Gen Z are known to prioritize sustainability and to invest more in experiences than property. Sustainability isn’t just about what construction materials are used, what programs are offered, and what amenities are available – it’s all about where this is happening. This means that your property is most competitive when it’s in close proximity to where those experiences can happen. Cities like Fort Worth and Dallas, which have invested in its arts & culture as much as they have invested in their business, stand to gain much more attraction from Millennial and Gen Z renters. Properties that have high “walkability” (or at least a short drive) to nearby restaurants, nightlife and other venues can lean hard into the sustainability of their location when advertising to these younger generations.
Other Considerations:
It’s important to note that newer complexes are automatically more energy efficient than older ones due to the continuing improvement to construction material. No need to shy away from how much more “green” your multifamily unit is, however! In hot markets like the DFW, you will want to list every energy-consumption-reducing amenity and feature that you have!
Another trend to consider is the increase in the prominence of the electric vehicle. Six utility companies have formed an electric highway coalition that aims to place charging stations on major highway systems on the Atlantic coast, in the Midwest and South, and in the Gulf and Central Plains regions. There are tax credits for buying electric vehicles – as well as for property management businesses that choose to install electric charging stations for their tenants.
If the demand is there, and eventually, it will be – you’ll want to be on the ball to provide this amenity for your tenants, considering that most EV charging happens while drivers are at home.
Understanding the consumer is the key to any business, and in property management, that means knowing your renter! While housing is a necessity, remember that your property is a competitive product and an investment. Ensuring that your property is at the top of its marketability game secures you the renters you need to thrive!
Unsure of whether or not you’re taking the right steps to maximize your efficiency, marketability & (most importantly) your bottom line? Contact us today!
Frontline Property Management has the experience, the staff, and the skills to help you get the most out of your investment!
