Property Management Trends
By: Matt Alderton
Issue Date: July 2008

Property Management Trends

Times are tough for homeowners. Sky-high gas prices. Weak job growth. Record foreclosures. The evidence is everywhere, and it’s making home ownership more difficult than it has been in years.

Even with a faltering real estate market, however, rentals are flourishing, according to Richard Swerdlow, CEO of Condo.com, a Coconut Grove, Fla.-based Web site that is counting more and more rental properties among its condominium listings. “The credit crisis has made it virtually impossible in some markets to get financed for a mortgage,” he says. “Because of that issue in the for-sale market, you’re seeing a lot of demand in the rental market.”

For property managers, increased demand means increased business, which has the most cautious among them wondering, “When will it end?”

In hopes that it doesn’t, property managers are embracing their inner entrepreneurs, counting on business-building trends and tactics to keep the momentum going. Here are four of their favorites for building a bigger bottom line—in any market.

Trend: Customer Service
Tenants are looking for more than a roof over their heads, according to Boise, Idaho-based property manager Tony Drost, national director and regional vice president for the Chesapeake, Va.-based National Association of Residential Property Managers (NARPM). They’re also looking for great customer service.

“I have proven to be an honest person who gets results,” says Drost, who owns Boise-based First Rate Property Management. He prides himself on giving great customer service, which he says has been the key to retaining tenants and growing his business. “I don’t market our services; I focus on taking care of current tenant and owner needs, and that brings me the business.”

In order to deliver exceptional customer service, Drost gives his tenants access to 24/7 tools, including an online account management system and an online repair request service—both on his Web site—not to mention a rental hotline for each of his available properties. He even offers renters an automatic debit payment plan, recognizing that convenience is king.

Trend: Tenant Incentives
Where service fails, money often succeeds. So while many property managers focus on raising rents, Drost looks for opportunities to reduce them. “We offer referral fees and rewards like a credit card,” he says. “We give so much credit for signing the lease and then additional credits for each month they pay rent on time and have no lease violations.”

Cash incentives go a long way toward making tenants happy, according to Swerdlow. “The ability to keep a property fully leased is paramount,” he says. “So, we’re seeing property managers be more proactive.”

Property managers that can’t afford to lower rents or offer cash back might consider other incentives, according to Swerdlow; offering new or renewing tenants a flat screen TV, for instance, will cost much less than having vacancies on your properties, he suggests. Other potential incentives are moving expenses, a month of free rent or a furniture allowance.

Trend: Perfect Properties
More attractive than a flat screen TV, according to Swerdlow, is a nice property with lots of upgrades. “Upgrading units for existing tenants keeps tenants happy and also increases the value of the unit,” he says.

The promise of new carpeting, nice finishes and stylish lighting fixtures is a big bonus for renewing tenants.

Of course, it’s also a big draw for new renters, who inevitably judge properties by their appearance. For that reason, if you can’t afford granite countertops, at least settle for clean ones. “It’s important to keep your units in rent-ready condition,” Swerdlow says. “Property managers are making sure that when a prospective tenant goes and looks at a unit, it’s spotless. ”

Trend: Internet Marketing
Most people don’t view properties for the first time in person, however. They view them online, according to Swerdlow.

“The biggest trend that’s changed the past couple of years is the migration to the Web as a low-cost marketing tool,” he says. “The fact is, 80 percent of people start their real estate search online; by doing online searches, they can knock out half of the units on their list without having to drive around town.”

Drost can attest to the power of Internet marketing for property managers. “To attract tenants, we post our listings on Internet listing services that have high search engine optimization,” he says. “By having virtual tours, photos, online inquires, online applications and online payment services, we attract a lot of tenants.”

No matter what what Web sites listing services you use, the key to success is photos, according to Swerdlow. “Listings with photos get clicked on oftentimes 40 percent more than listings without photos,” he says. “And if a listing has multiple photos or a video, those get clicked on more than listings with a single photo.”

Note: This content is for informational purposes only. Lowe’s makes no warranties and bears no liability for use of this information. The information is not intended, and should not be construed, as legal, tax or investment advice, or a legal opinion. Always contact your legal, tax and/or financial advisors to help answer questions about your business’s specific situation or needs prior to taking any action based upon this information.

more on this here.

Just open the door of a Costa Vida restaurant and your escape from the bland and boring begins. The sights, sounds, smells and tastes capture that unique and vibrant Baja experience – leaving you energized, inspired and satisfied.

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Eat Well. Live Inspired.™

The Sweet Tooth Fairy is locally owned and operated by founder Megan Faulkner Brown, but the store is growing rapidly and sharing their delicious creations nationwide.

“The Sweet Tooth Fairy continues to expand and grow,” said Brown. “We are now baking in two states and getting ready to open our eleventh location in Southlake, Texas. Even with this growth, we continue to be a community-oriented company.”

Brown and her assistant, The Sweet Tooth Fairy’s lead baker, Hilary Cavanaugh, were able to surpass the competition through their innovative approach and tasty confections, particularly impressing judges with their first-round Cranberry Wine and Brie Cheesecake cupcake.

In the initial round of the “Cupcake Wars,” contestants had to create a cupcake using a few selected “mystery ingredients.” In this round, the ingredients available represented items that a rock star might request to be in their dressing room. Brown and Cavanaugh selected dark chocolate, cranberry juice, red wine, brie cheese and cashews to create their delicacies for the judges.

“Having the opportunity to appear on “Cupcake Wars” was an incredible experience, and winning was absolutely surreal,” said Brown. “Participating in a competition like this really pushes you to draw upon your creativity, especially with limited time and with maximum pressure. It was truly a delicious adventure.”

Some of the other cupcake flavors presented by this winning team included their Sweet Potato Pie, Crème Brulee and Nutella Crepe. Part of the winnings from the Food Network competition will be donated to the Safe to Talk Foundation to help eliminate bullying in schools. The Sweet Tooth Fairy will also donate 25 cents from the sale of each of their winning cupcakes to the cause.

“One of the most exciting parts of this whole experience is being able to share it with our wonderful customers, who have been nudging us to go on the show for years,” said Brown.

The Sweet Tooth Fairy has also been featured on The Rachel Ray Show, the Gayle King Show and in Martha Stewart Weddings and Woman’s Day magazine.