Triple Win Property Management Blog

How Ultrarunning Inspired my Brand Positioning

Mark Brower is the owner and designated broker of Mark Brower Properties. He has over 20 years of experience in property management and investing, and lives in Mesa, Arizona. Mark is a Second Nature Triple Win Mentor. Right around the time I turned 40, I took up distance running. I started with marathons, and then after about a year and a half I got bit by the bug: ultramarathons. Marathons are any race longer than a marathon, and are often 50 kilometers, 100 kilometers, or 100 miles. The things that ultrarunning has taught me have changed my life, both personally and professionally. So when I recently met with my fractional CMO to talk about brand positioning, there were some immediate connections in my mind. Our rally cry We developed two key brand positioning statements through a process of really digging deep and uncovering who we are. The first was a rally cry. We didn’t initially set out with a goal of developing a rally cry, but when we stumbled upon it, it just clicked. A rally cry is meant to be the north star for your team, reminding them why you do the work that you do. In a lot of ways, it’s a distillation of your core values. The goal is to craft something motivational but concise. It should, as the name suggests, be something that people can rally around. Here’s mine: This is what we came for. This is something that I heard another runner say while he was running a 250-mile race. He was at a low point, something we all experience during long races. But through the pain and the struggle, that was his mindset. I thought that was incredible. We don’t run ultramarathons because it’s easy. We run because it forces us to push our limits. It drives us to reach new levels that we didn’t think were possible, and we do that through struggles. Working in property management is the same way. We don’t do it because it’s easy, we do it because it can change people’s lives. That same belief that drives me to keep running when I’m struggling at mile 53 is exactly what drives me during the difficult times at work. When we push ourselves, we grow. That’s what my team is here to do. Our brand promise The second element of our brand positioning project was a brand promise. Your brand promise is a clear statement to your customers that outlines what they can expect in terms of service, quality, and commitment. Here’s what we wrote: We go beyond managing properties—we are a trusted partner enabling you to build wealth through real estate. Our relationship with property owners isn’t a simple, transactional one. It has tremendous scope and magnitude, and a lot of people underestimate that. We’re coaches. We’re leaders. We’re advisors. And when we view that relationship as a journey, that’s when we can really add value. Owning a business—whether that’s a property management company or a real estate investment company—pushes you to the limit. Along the way, you’re going to become a different version of yourself, one you may not have known you could be. But that change in mindset is what unlocks the wealth-building power of real estate. That commitment and transformation is incredibly similar to my journey with ultrarunning, so it was just natural to use it as our brand promise. Writing your personal brand positioning When I sat down with my fractional CMO, Vince, to start drafting these brand elements, he pushed me to make them personal. He emphasized telling my story through my brand and making sure it’s completely unique. What I ultimately ended up with sits right at the intersection of who Mark Brower is and what service Mark Brower Properties delivers. Plus—and this is maybe the most important part—what impact we have on people’s lives Your rally cry and brand promise should embody who you are, and, more importantly, who you aspire to be. They should represent your highest calling. Ask yourself what you want to become and commit to that. Let it flow naturally Your brand needs to come organically, from the inside, not the outside. You can’t craft a perfect brand in a lab. It just won’t resonate. People will be able to feel that it’s artificial. In ultrarunning, you’ll hear a lot of runners say that they let the speed out. They don’t force it. They don’t push the speed out. They just allow it to happen, and it comes out freely. You need to take the same approach to your brand. You can’t sit down in a conference room and overthink your way into a strong brand. It isn’t about what’s good for the marketplace. It’s about the truth, and the uniqueness of you and who you are. So how do you find those pieces of you and your story that make up your brand? Ask the right questions. Look for the parts of yourself that are the most meaningful. What do you believe in? What do you want to achieve? What difference do you want your work to make in the world? Start asking yourself those questions and you’ll start to get at the heart of what’s important to you and your company. The challenge of self-discovery I truly believe that 80-90% of branding is embracing self-discovery and being open and vulnerable about your authentic self. Showing who you are at your core can be scary, but people will connect with it on a much deeper level than when you talk about the specific services you offer and how much you charge. It builds trust in an industry where trust is everything. You can’t make people care about what you say until they know you care about them. And how can they trust that you care about them if your real, authentic, vulnerable self isn’t showing up? The scariest part about this all is acknowledging that your business and services aren’t for everybody. When you build a company that’s very specific to who you are, some people are going to decide that it’s not a great match. And that’s okay. Leaning into that takes confidence and courage. It’s not an easy thing to do, especially if your business has been unbalanced, and focused on growth-at-all-costs in the past. But it’s essential to growing with purpose. You can’t please everyone all the time, and trying to do so doesn’t build a strong brand. Often saying no to one prospect is more important as saying yes to another. When you develop the courage and strength to embrace that, you’ll be more effective at the work you do. There’s no other you Remember, the more unique your brand is—and the more personal it is—the more it will resonate with people. When you’re developing a brand, you’re not positioning yourself against your competitors. You’re communicating who you are. Your goal is to get so good at understanding and communicating your brand that it resonates when people see it. The Rolling Stones didn’t do rock-and-roll. The Rolling Stones did The Rolling Stones. And that’s why they’re still selling out arenas 60 years later. There are other bands out there, but no one does what the Stones do as well as they do it. When I’m running with a couple of my friends, we know we’re not going to win these races. Let’s face it, we’re older than a lot of the other competitors, and we’re enthusiasts, but not professionals. But we’ll often joke with each other that we can definitely come in first in the category of over 40, over 6 ft, with a certain shoe size, based in Mesa, AZ, etcetera. And we’ll just keep narrowing down the criteria until we’re the only ones in it, so we know we’ll finish first. That’s what you want to achieve. If you do it right, no one can be who you are and do what you do. You will be number one in a category of one. You can’t compare my company to anyone else, you can’t compare my fees to anyone else, because my brand makes me unique. What makes you unique? Want to learn more about positioning your brand? Start with your core values. Watch this webinar that I recently did with Second Nature’s Andrew Smallwood on creating core values that matter.

March 11, 2025

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Leading with your Logo: Why Visual Branding Still Matters

Mark Brower is the owner and designated broker of Mark Brower Properties. He has over 20 years of experience in property management and investing, and lives in Mesa, Arizona. Mark is a Second Nature Triple Win Mentor. A brand is far more than just designs on a page. It needs to be lived and carried out in everything that your company does. But your visual branding—including your property management logo, colors, website, and photography—are the physical representation of your brand. If you want to build a successful property management company, developing a logo and visual representation that exemplifies your personality and who you are as a company is essential. It cannot be skipped. It’s how potential new customers will identify and connect with you, so it’s worth the effort. A chance to make a good first impression You’ve heard the cliches about how you only get one chance to make a first impression. But when we look deeper at what that means, the stakes are actually even higher. When people intersect with your brand, they’re making huge judgment calls on very limited information in a short amount of time. They’re trying to make a determination on whether they can trust you, and in property management, they’re trusting you with one of the most important financial assets in their life. They’re looking at every single piece of evidence that they can possibly consume as to whether they can trust this new—very important—relationship. And they’re always looking for a reason to say no. Think about when you’re showing a home. Chances are, the resident who’s getting a tour knows within about two minutes whether they want to live there or not. They get a first impression, and if they see one little flaw that turns them off, they’re checked out. Your branding is the same way. So when you think about the visual representation of your company, you need to eliminate every flaw that you can, just like you would in a rental listing or home showing. Consistency above all else Yes, your logo is important, but it’s not the end all be all. The real value isn’t so much in how your logo looks, but in the consistency of how you use it. Consistency builds trust. When your audience gets used to seeing your logo and colors used in the same way across multiple channels, they feel more familiar with it. They get comfortable with you as a business. That’s why we put our logos on everything from swag gifts to pens and stationery. On the other hand, if you’re inconsistent about how you use it, you’re going to breed distrust. Just like your customer service delivery needs to be consistent, so does your visual branding Think about your team’s email signatures: even if the smallest thing is different across team members, it hurts that sense of trust. Someone receiving emails from three members of your team is going to be thrown off when all of their signatures are different. There are plenty of other places to build consistency, too. The photos of your staff on your website should be consistent. They should all be high quality, taken from the same angle, ideally with the same lighting and background. In an industry where people have a lot of options in who to work with, the slightest perception of mistrust can jeopardize your chance of working with a great client. So efforts toward brand consistency are never wasted. Attention to detail is vital All of these seemingly small branding elements add up to shape opinion. The details matter more than you’d think, and you can’t let them slip. Letting them slip carries much more cost than taking the time to get the right in the first place. Ideally, a potential client should look at your website and think, “Wow, if they’re this disciplined with these details on the website, they’re going to be disciplined about the work they do on my property.” Discipline and consistency around your visual brand also shape a baseline level of professionalism. I’ve seen more than one property management company who lets the details slide. As a potential client, I’d be thinking, “If you can’t put a logo on a PDF correctly, what are you going to do to my house?” You need to appear competent, capable, and professional so that people can trust you, and attention to detail is a big part of that. Some of the most successful entrepreneurs I’ve met get to a deep level of obsession over the tiny details until they get it right. That’s something I’ll be vulnerable about and admit I’ve struggled with. It can be hard to get out of the big-picture mindset of a business owner and really focus on the details. But you can’t afford not to. Your brand represents your value When you buy a physical product, you can actually hold it in your hand. You can look at it and see what, exactly, you got for your money. In a service-based industry, your customers can’t do that. Instead, they tend to fill that gap with the experiences that they’ve had with you and your brand. Instead of seeing something on a shelf, they remember their interactions with you and the way you represented yourself visually. In a lot of ways, your brand is a symbol of the value you provide. You need to adopt that mindset and lean into it. You need to be as consistent with your brand as other companies are with their products. There should be a quality assurance process to make sure that you’re nailing the details and presenting yourself consistently. Otherwise you’re jeopardizing your value. Add a personal touch to your visual brand Just because you want to keep consistent with your branding, that doesn’t mean it can’t evolve. After all, your company and your personality are always changing, so sometimes your brand needs to keep up. At Mark Brower Properties, we just visited our visual branding and decided to make some changes, including an update to our logo. Our old logo used block letters, but now the “Mark” in Mark Brower Properties has been redone as a hand-written version of my name. Our updated logo It’s very similar to how I write my name when I’m signing things. And it brings the personality and human aspect to the brand. It reflects who I am. In my experience, people are afraid to commit to being open and vulnerable about who they are. Too many small business owners feel the need to portray themselves as something that they’re not, rather than being honest. But the reality is that audiences really love when people are themselves. People do business with people, so when they see vulnerability and a personal touch, it goes a long way. Make sure that you’re consistent with your property management logo and your website, but even more importantly, make sure that they actually represent you. Final thoughts Look, I know what you’re thinking reading this. You have way too much on your plate to go analyzing everyone’s email signatures to make sure that the logos are the same size. I completely understand that. But at the same time, this stuff really is important. Think about it this way: in business, there are production tasks, and there are tasks that increase production capacity. Meeting up with a resident so they can sign a lease? That’s a production task. Implementing electronic signatures so you don’t have to drive out and meet the resident just to get a lease signed? That’s a task that increases production capacity. Branding is a task that increases your production capabilities. It helps build an engine that will bring more residents and more property owners in the door. And every small detail adds up. The benefits compound. And when done well, they help build an authentic, trustworthy brand that people want to do business with. Build your brand by managing your reputation Want to learn more about how to manage your business reputation? Watch Second Nature’s recent webinar with LeadSimple on reputation management.

March 6, 2025

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How to Get More Glowing Property Management Reviews

We live in a review-centric world. Whether you’re deciding what to watch on Netflix, what hotel to stay at on your next vacation, or what to order for dinner, you put a lot of faith in the opinions of others. Our industry is no different—property management reviews help residents and owners alike decide where they want to live and who they want to work with. Whether you like it or not, your success will be influenced by the reviews you receive. And, unfortunately, people are a lot more likely to leave unsolicited negative reviews than positive ones. So how can you start generating more positive reviews? Read on to learn just that, and how to leverage positive reviews to attract business and improve your business reputation. Why positive reviews matter Just as prospective residents will check reviews when deciding where to live, prospective investors will do their due diligence when hiring a property manager. That means reviews impact your business from both sides, doubling their importance. Influence on prospective residents Renting a home is one of the biggest decisions a person can make. For most renters, it’s not just where they’ll spend most of their time, it’s also the single biggest bill they pay every month. So they want to be sure they’re getting it right. Reviews are one of the most important ways that residents make that decision. In fact, according to a 2024 survey by Reputation, 81% of prospective residents consider reviews important when looking for a new home. On top of that, 55% require a property to have at least 4 stars to be considered, and 71% said negative reviews could deter them from even touring a property. Boost your property management reputation The good news is that reviews aren’t just a negative force. They can actually be a tremendous competitive advantage when they’re positive. Because so many prospective residents and investors are looking at reviews, they provide a single place to really boost your reputation. Focusing on obtaining positive reviews from happy residents can elevate your brand and help you stand out from the competition. Excellent for marketing purposes You can also take advantage of your positive reviews by spreading them across different channels. Yes, great reviews are an asset when people look you up on Google, but they should also be an asset across your website and social channels. Share positive reviews in your email newsletter, your pitch deck for new investors, your social media accounts, and more. Get the word out about how much your customers love you, because the more eyes you get on positive reviews, the better. When to ask for reviews Deciding to ask for reviews can feel like a big deal. You don’t want to feel like you’re pressuring anyone to do something they don’t want to do, and you want to make sure they’re truly delighted with you before they go talking about you publicly. Here are some great opportunities to ask happy residents for reviews. Move-in Move-in is a hectic time. There’s a lot in motion, which means there are also plenty of opportunities to delight your new residents, whether that’s with a move-in concierge, a welcome gift, or just a perfectly presentable home. Once you’ve gone the extra mile to help them settle in, consider sending a follow-up email or survey to see how their experience went. If they have good things to say, that’s a great opportunity to ask for a review. Catch them when they’re at their happiest to increase the likelihood of them singing your praises. After resolving issues Another great opportunity to ask for reviews is after resolving an issue or complaint that they had. Whether it’s a maintenance request, service issue, or something else entirely, you can ask for a review when you take care of it. Make sure that you’re still going above and beyond, either by making it up to the resident or by being proactive and communicating clearly. You don’t get points for doing the bare minimum, so if you’re going to ask for a review, make sure you’ve earned it. After making upgrades Upgrades are the kind of proactive service that really delights residents. When you’re making their home better, they’re more likely to view you positively, so take advantage. Use these opportunities to ask for reviews on your business profiles. During lease renewals Lease renewals are another natural time to ask for feedback. If someone’s choosing to renew their lease, that means you’re doing something right. Take the opportunity to ask for a review of their time with you so far. It won’t feel out of place to the resident, and you can bake it right into your renewal process so it’s fully automated. Move-out Move-out is another natural point in the resident lifecycle where a review makes sense. At the very least, it’s a great opportunity to ask for private feedback in a survey. That way you can learn what’s working well, what’s not, and why they’ve chosen to move. They may be perfectly happy with you, but they’re relocating, moving in with a partner, or purchasing a home. When you’re parting amicably, it can be a great time to encourage them to leave a review. It always helps if you attach the request to a more altruistic thank you letter during the move-out process. Running a review-generating campaign Aside from these opportunities, it can be worthwhile to run the occasional dedicated campaign to generate more reviews. To do it right, you’ll have to set a clear goal, select what platform to use, and incentivize your residents to participate. And, if you want the campaign to be manageable and not take up all of your team’s time, you’ll want to automate as much of it as possible. Set clear goals As with any business project, you have to start with a clear goal. You want to be sure that your goal is specific and measurable so that you can objectively track whether or not it was successful. For reviews, you may set your goal a few different ways: Gather 10 new 4- or 5-star reviews Shift our overall average score from 4.5 to 4.7 Double the number of reviews on our page Your exact goal and how you structure it will depend on your individual business needs, so make sure it’s specific to you. Choose the right platforms Next, you need to decide where your customers will be reviewing you. Yelp is synonymous with business reviews, but Google Reviews plays a more important role than ever, and Facebook is important to reach key demographics. Yelp: Established in 2004, Yelp is a pillar of the internet. While it may be less popular than it once was, it still ranks highly in search results and serves certain geographic areas well. However, Yelp has a strict no-solicitation policy, so it may not be a good option for a campaign asking for reviews. Google Reviews: Google Reviews’ strength is its integration with Google Maps. That means that when someone searches Maps for a local property manager, they’ll immediately see your Google Reviews. You can also integrate your reviews into ads, and gain organic search benefits on the world’s largest search engine. Facebook: Facebook has a very useful review tool as part of its business pages. Because users can find your page—and therefore your reviews—organically, this can really help increase visibility. However, Facebook serves a changing demographic. Younger people are less likely than older generations to use Facebook, so if you’re targeting young first-time apartment renters, it may not be a great option. But it still holds up if you’re targeting families for single-family home rentals, for example. Incentivize participation Some—including Google themselves—may not find it ethical to offer incentives for positive reviews. In fact, Triple Win Mentor Mark Brower strongly agrees that you should never bribe someone for a positive review. However, you can offer perks or rewards for honest, sincere reviews, even if they aren’t perfect 5-stars. You don’t want the process to feel transactional, so incentivize participation, not specific opinions. If you do run an incentive program, make sure to disclose that on review sites, or else risk violating terms of service. Incentives can be as simple as gift cards or entries into a raffle. For example, you can award one lucky winner a discount on rent or free perks. Just make it abundantly clear that the contents of the review won’t dictate who wins the reward. Automate requests Finally, in order to keep your program scalable, be sure to automate as much of it as possible. Set up automatic email or text message notifications at the key moments we outlined earlier. Bake review requests into your move-in, move-out, and maintenance processes so that you maximize the chances of getting those sweet, sweet positive reviews. Leveraging positive reviews As outlined before, reviews have maximum impact when you leverage them across different platforms. Let’s take a look at some of the different ways you can put reviews to work. For marketing The customer voice is marketing gold. Leveraging reviews in marketing activities like social media, email newsletters, and your website can help get more eyes on your customers’ positive words. Social proof is vital to building trust with a prospective resident or investor, so use it liberally. When a reviewer sings your praises for you, that’s less work for you to do yourself. For advertising vacant properties Rental listings are another opportunity to get your reviews out into the world. A five star review on a vacancy listing can help you stand out and catch the eye of a prospective resident. Plus, when someone visits a listing, you know that they’re actively looking for a place to live, so you’re catching them in a moment of decision. This can make all the difference between a top resident submitting an application or scrolling right on by. To attract new investors Residents aren’t the only ones looking at reviews. Prospective investors want to see that you’re running an effective, high-quality business, and that you’re selecting great residents and treating them well. Why would they entrust you with their investment if your own residents don’t like you? Positive scores on Yelp, Google, and Facebook can actually boost the perceived value of your business, making owners more likely to hire you. Best practices for asking for reviews If you’ve never done it before, asking for reviews can seem intimidating. In reality, there are a few key steps you can take to simplify the process and get great results. Ask for feedback Gathering feedback is essential, not just because it helps you understand your business better, but because it helps you build a better resident experience. You should make this very clear to your residents; if they know your feedback surveys and reviews are actually put to good use, they’ll be more incentivized to provide their opinions. Show them specific changes you’ve made in the past based on resident feedback, from improving customer service to adding amenities. This will increase the likelihood that they’ll give their honest perspective. Make it easy No matter how incentivized a resident is, if the process isn’t easy, they’re not going to follow through. That’s why you have to streamline things as much as possible, and remove roadblocks to participation. If you have an office or are using printed materials, make sure to include QR codes so that residents can quickly access your survey. If you're reaching out via email or text, use direct web links. Either way, make sure that the survey is mobile-friendly. Over 40% of all U.S. web traffic now happens on mobile devices, and that’s higher among young people. If you aren’t offering a mobile-friendly page, you’re going to fall behind. Follow up It’s also important to know that just one request may not be enough. While you don’t want to pester your residents, it’s worthwhile to follow up with them if they don’t leave a review. There’s a good chance you caught them at a bad time the first go-around, or that they just got busy and forgot. Make sure you’re giving them another chance to give their feedback. To avoid feeling like a bother, make sure to set the expectation upfront that you’re going to be following up. When you send your initial request, let them know that you’ll check in if you don’t hear from them, and be specific about the timeline of events. Respond to reviews Responding to reviews is also key. Not only does it show readers that you’re paying attention and taking feedback seriously, it also creates opportunities to generate positive outcomes. If someone leaves a positive review, thank them sincerely. If they have negative feedback, show honest concern and offer to make things right by improving your service. That might require following up to get more information, but it’s worth the extra effort to delight a previously-unhappy customer. Get glowing reviews with Second Nature If you want to delight your residents and generate positive reviews, a Resident Benefits Package from Second Nature can go a long way. From credit building to pest control and identity protection, our RBP provides a better rental experience for residents. If you’re interested in learning more about how an RBP can elevate your business reputation, request a demo and hear directly from a member of our team.

March 4, 2025

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Your Brand Isn’t Up to You, It’s Up to your Audience

Tony Cline has over 20 years of experience in property management. After purchasing a real estate and property management brokerage in Denver, Colorado, he spent more than two decades as managing broker. Today he's focused full time on his work as a Property Management Success Coach. Tony is a Second Nature Triple Win Mentor. Think of your brand as your company’s personality. You probably have a pretty good sense of what your personality is like. But if you asked all the different people you know—your spouse, your friends, your coworkers, the cashier at your local grocery store—they might not all say the same thing. Not to get too philosophical, but the truth is, every person that knows you knows a different version of you. In your mind you’re the same you, but because everyone has had a different set of interactions with you, they each perceive you differently. That’s exactly what happens with your company’s brand. You may work hard on what you want your brand to be, but it’s ultimately up to the people who are having those interactions with you to decide who you are and what it is. Consistency is key The people closest to you probably know you better than anyone, especially if they’ve known you a long time. The more interactions you have with someone, the more complete their picture of you is. In the same way, the more your audience is exposed to your brand, the more familiar with you they are. But the important thing isn’t just to get in front of your audience over and over with as many messages as possible. Instead, you want to be as clear and consistent as possible with the same message. People feel comfortable around you when they know what to expect. They don’t want to be walking on eggshells, trying to guess how you’re going to behave or what you’re going to say next. Unpredictability doesn’t beget strong relationships. With your brand, your goal is to try to unite all of the many different audience perceptions as much as possible. You want to deliver the same messages, services, and core values in all interactions. When you repeatedly live out your brand and values, your clients, customers, and prospects will start to see you for who you really are. You may not be able to control their perceptions entirely, but you can certainly influence them. You can control your branding, not your brand perception There are certain elements of your company that you do have control over. One of those things is your branding—the name, logo, colors, and other visual elements that you use to represent your company. Most of these branding elements are just scratching the surface of what a brand truly is. Because of that, in many ways, your logo and your name do not matter. On the flip side, they matter immensely. And yes, both of those things can be true. If you’re providing good service and value in the market, and you have brand momentum, most people are not going to care what your company name is, what your logo looks like, or what colors you use on your website. But in order to get that momentum and buy-in, you have to have a strong story. You need something for them to grab onto, believe in, and understand. And that story should be reflected in your visual branding. A few years ago I was on the road traveling, and I decided to stop at a sandwich shop for lunch. The outside of the store had an intricately painted sign with classic colors and a striped awning. It looked like exactly the place where you’d get a great sandwich. But when we stepped inside, the visuals were all different. The signs indicating where to order and where to pick up your meal were completely different from the signs outside. The logo was different, the font was less formal—almost bubble letters—and the color was just a slight shade off. Neither set of visuals was wrong, per se, but they were definitely inconsistent. I had no idea what to actually expect from the meal. In the end the sandwiches were good, and if I were a regular I wouldn’t care about the branding. But because they hadn’t built that trust with me yet, it was off-putting. So make sure that your visual branding is strong, consistent, and representative of your company, but understand that brand goes far beyond that. Narrow your audience and your messaging I hate to sound like a broken record, and I know I’ve written about target client profiles before, but they’re an essential part of developing a consistent brand. If you’re trying to make sure that you’re being consistent with your messaging, you also have to be consistent about who you’re messaging to. If you try to be all things to everybody, you’re going to be nothing special to anybody. But if you develop strong messaging for a narrow client profile, you’re going to be more consistent with how you’re perceived in the market. Tracking your brand perception I spend a ton of time working with my clients on KPIs to make things measurable. Brand perception is one element that’s extremely difficult to make measurable and actionable. There are plenty of frameworks for brand perception mapping, but those don’t measure brand objectively. There are others who lean on satisfaction surveys and customer feedback to gauge their brand. In my opinion, those aren’t a great way to measure how you’re being thought of in the market. They can be really misleading. For example, you can provide someone great service, really delight them, and get a high net promoter score from them, but still be missing the mark with where you want to take your brand. It can be a challenging problem to solve. The way I like to look at this question is, of the leads that are coming in, how many of them fit our target client profile? In other words, when new potential clients reach out to you and are interested in your management services, how many of them are the right size, geography, financial makeup, and goal orientation? If you’re attracting more and more qualified opportunities, you’re doing a great job hitting your brand. The messaging is working and it’s reaching the people you want to attract. On the other hand, if you’re attracting a lot of leads that aren’t in your target client profile, you may need to reevaluate how you’re presenting yourself in the market, because clearly something isn’t working. If you’re truly effective in how you position your brand, most of those misaligned clients will weed themselves out and realize that it’s not going to be a great fit before they even reach out to you. What about when it goes wrong? No matter what, eventually you’re going to slip up. Something will go wrong, a mistake will be made, and your clients might see a side of you they weren’t expecting. You might spend your whole life trying to stay buttoned up every day and prove to your neighbors that you’ve got your life in order. But one day, you’ll walk out to get the newspaper in your pajamas with terrible bed head, and someone will see you. The illusion will be shattered. The same thing happens with brands all around the world, in every industry. You might send out an incomplete email to your customer list by accident, or you might drop the ball on a maintenance order and leave a resident in the lurch. Especially in property management, mistakes are inevitable. As I always tell my clients, I’m not upset when something happens. I care about what happens when something happens. In other words, it isn’t the mistake that really matters to me, it’s how you act in response. I want every one of my clients to know how to respond to negative interactions. You should always make sure that you: Fix your mistake Clarify what went wrong and why Uphold your brand Deliver the level of service your clients expect and deserve Make meaningful changes to process or policy to make sure you don’t make the same mistake again The goal is to meet the expectations that you set for your clients, hold true to your commitments, and deliver service in the way that you want your brand to be perceived. Final thoughts Your brand is like a garden. You either plant and sow the seeds of what you want to grow, or something else is going to grow in their place. Part of your job as a business leader is to make sure you’re planting the right seeds and continuing to water them. Want to learn more about managing your brand perception? Check out our recent webinar with LeadSimple.

February 27, 2025

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Why Client Customer Service is Key to Brand Perception

Tony Cline has over 20 years of experience in property management. After purchasing a real estate and property management brokerage in Denver, Colorado, he spent more than two decades as managing broker. Today he's focused full time on his work as a Property Management Success Coach. Tony is a Second Nature Triple Win Mentor. Your brand is the way that your audience thinks and feels about you. In this industry, one of the most effective ways to shape those thoughts and feelings is through your property management customer service. Your job is to decide who you’re serving and how, and then to do that in the best way possible. When you emphasize your quality of service and expertise, you can build a strong brand to set you apart from the competition. Leaning into your authority I firmly believe that you can’t deliver great service unless you lead from a position of authority. When someone hires you as a property manager, they’re giving you jurisdiction to make decisions on their behalf. They’re hiring you because you have a level of expertise and experience that they don’t. Part of your job—and I’d consider it a core responsibility, if not a full-fledged obligation—is to confidently step into that role of expert. When you take on a new client, you have to ask yourself, “do I want to be a high-level, functioning fiduciary, or do I want to take instructions and run errands?” You don’t go to the doctor and tell them what tests to run, what medicine to prescribe, and how to diagnose you. That’s because you’re the patient, and you’re asking them to lend their expertise and advise you. Great customer service isn’t just about doing what you’re asked. It’s about knowing what should and shouldn’t be done in the first place. As a property manager, you need to be confident in your ability to solve the problems in front of you, and to create systems that solve those problems both proactively and reactively. Define what problems you’re solving The truth is, you can’t have expertise and authority if you don’t know what specific problems you’re solving. And before you can truly identify the problems you’re solving, you first need to identify whose problems you’re solving. Different client types have different problems and different definitions of what good service means. That means that identifying your target client profile is an essential first step to providing quality service. It’s important to realize that you can’t be all things to all people and provide top-tier service to all of them. A jack of all trades is a master of none, so focus on what you’re truly good at and who you can best serve. There’s nothing wrong with that. If you walk into Cava or Garbanzo and ask for a burrito, they’ll probably tell you you’re in the wrong place. They might have some of the ingredients to cobble together a burrito, but it’s not going to be Chipotle, and it doesn’t make sense to try. The thing is, you know that before you walk in the door, because Garbanzo and Cava advertise themselves as Mediterranean, not Mexican. You have to do the same thing with your business. Garbanzo isn’t trying to sell to people who are looking for burritos, they’re selling to people who want high quality mediterranean bowls and pitas. Decide who your audience is and learn what their biggest problems are. Then you can start to get very specific about your area of service and tune out the rest of the noise. Using pricing as a behavioral correction & setting boundaries Setting boundaries is a core part of property management. Part of that is being able to tell your clients what services you do and don’t offer, and why. Remember, you’re the expert, so you get to define what your services are. From time to time you’ll run into a client who feels very strongly about having a particular service done, even though it’s outside of your standard offering. That’s when I suggest using pricing as what I call “behavioral connection.” Basically, you can either say “no,” or you can say, “yes, but it’s going to cost you.” By pricing special services at a very high rate, you actually help your clients realize what they truly value and what’s really a priority. It discourages them from insisting on service that, in your expert opinion, isn’t valuable. It also trains clients on what their relationship with you is going to be. You have to be willing and able to tell your investors no, because their actions and the things they request of you can undermine your ability to provide the important services effectively. Communication is key to property management customer service Communication is one of the core parts of your service offering. Being able to answer your investors’ questions, and prevent questions by proactively giving them the right information, is key. Communicating too little Early in my career, I used to only call property owners if something really bad happened. Basically, unless something exceeded the authorization amount I had already been given, I didn’t consult them, I just acted, and I had no check-ins or updates in between. I didn't want to involve them in every little detail, because that can quickly lead to co-managing a property with them. And, as I already outlined, you want to be the authority rather than just an order taker. The problem with this approach was that it didn’t allow for transparency. As a result, a lot of my clients didn’t actually see the work that I was doing or the value that it was bridging. So when it was time to renew our management contract, a lot of them were asking what they were paying me for if managing their property was “so easy.” Communicating too much As my business matured and I learned some of those harsh lessons, I started to lean on technology and automation a lot more. Instant notifications let my owners know when maintenance requests came in, when rent was paid, and everything in between. The problem then became overcommunication. My clients were getting more than they actually wanted. The vast majority of landlords already expect and assume that rent will be paid on the first of the month. They don’t need to be notified every time it happens. And they definitely don’t need to get notifications about leaky faucets or squeaky hinges. That’s just going to make them concerned that you’re not doing your job. Automation tools definitely have their place in property management, but overcommunicating can be damaging. The more you involve your client in real-time decision making, the lower the quality of service you can provide, because you’ve given up your position of authority. Finding the balance The big challenge is learning what types of issues are worth communicating about, and which should just be handled without consulting your investors. My team sat down and looked at the full resident lifecycle to figure out all of the touchpoints where communication is critical. It turns out, the places where communication is most important are the ones that have a lot of emotion attached to them; expensive appliance replacements, evictions, lease turnovers, etc. Whatever touchpoints you decide are important to communicate, make sure that you set expectations up front. Your clients should know when they’ll be getting notified and what kinds of updates are worth reaching out about. When in doubt, focus on making statements rather than asking questions. Exercise your authority as part of your brand As I said at the start of this article, your brand is how you’re perceived. That means that your brand is: Whether you’re trusted to make smart decisions Whether you’re seen as an expert Whether your level of service is considered valuable Whether you’re looked at as an authority on management Your brand is every interaction that your clients have with you. Every time you make the decision to go beyond your authorized spending amount—because that’s what you need to do to deliver a superior level of service—that’s impacting how your owners view you. On the flip side, every time you ask an owner’s approval for something they think is trivial, that’s negatively impacting your brand. If you lean into your expertise and authority, you can deliver superior service and show clients and potential clients that you’re smart, dedicated, and trustworthy. Lean on public communications To build your brand publicly, start creating content that shows your expertise and the value that you deliver. Use videos, blog articles, newsletters, and social media to tell the stories of the problems you’re solving behind the scenes. Show your clients that, even if they aren’t hearing about it, you’re doing important work for someone in your portfolio each and every day. Make sure that the value you’re highlighting across channels focuses specifically on your target client profile. Your goal is to illustrate that you have expertise in the challenges faced by your chosen audience. That’s how you build a true brand that resonates with your clients. Interested in learning more about developing your property management brand? Watch our on-demand webinar on developing a brand positioning statement.

February 20, 2025

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How to Write Your Property Management Company Core Values (Examples and Best Practices)

Mark Brower is the owner and designated broker of Mark Brower Properties. He has over 20 years of experience in property management and investing, and lives in Mesa, Arizona. Mark is a Second Nature Triple Win Mentor. People buy who you are, not what you do. You need to lead with who you are as an individual and as a company, rather than just the services you offer. Developing, sharing, and living out your core values is vital to showing your potential clients that you’re genuine. Your core values don’t just define your property management company's mission and culture, but also how you interact with both residents and owners. Let’s dive into some tactical ways that you can create effective core values, and along the way I’ll share some of my experiences writing core values for my own property management company. Understand the purpose of your core values Your core values underpin your property management company’s mission and vision. When done well, they guide every decision and action that your company takes, across policies and processes, team members, and client agreements. When everything rolls up to a strong set of values, you can make more consistent decisions and run a more effective business. The vital factor here is that they can’t just be something you write and then tuck away in a drawer. You have to live them every day in everything that you do. How many core values should a company have? Whenever business leaders try to write core values for the first time, they inevitably want to know how many they need. This is a question that, for a long time, I struggled to answer. It’s always bothered me that, in the hierarchy of things we believe in and value, we have to draw a line somewhere to say, “These are the things we care about, and the rest don’t make the list.” As a business owner, I have dozens of things that I care about and believe strongly in, so why narrow it down to just a short list? It’s important to get very specific about your core values because they’re a reflection of who you are as a business. For that reason, they should show the things that you currently do, rather than being aspirational. Having a manageable number of values also helps make them more memorable, which makes it more likely that your team members will keep them top of mind and embody them in their daily work. In psychology, there’s a theory that people best remember lists of five to nine items. I’d recommend using this as a guide for how many core values to develop. The good news is that the values that don't make the list can still be important. You don’t have to completely abandon all other beliefs and values just because they aren’t core values. Core values vs. Brand Principles One thing that helped me come to terms with a more limited list of core values was understanding the difference between core values and brand principles. When I started working with a fractional Chief Marketing Officer in 2024, we worked on clarifying that difference. Core values are often somewhat abstract. They’re character traits or belief systems. On the other hand, brand principles are the tactical ways that you bring those core values to life. They describe how you manifest your core values. Some of my company’s brand principles include: Own the outcome Highly responsive communication Exceptional service Transparency These are clear ways that we can live out our values, but they aren’t core values themselves. We’ll get deeper into my company’s core values later. How to write your company core values So how do you actually get to writing your core values? Several years ago I had the opportunity to join a small entrepreneurship group, and one of the activities we worked on together was writing our core values from scratch. Here’s how we did it. 1. Brainstorm core values The common starting point for core values is to brainstorm a list of potential words or short phrases, then group similar ones together. For example, honesty, integrity, and truthfulness might be grouped. I recommend taking a slightly different approach. To start brainstorming, take inventory of the people in your life who you most admire and most respect. Ask yourself why you respect them so much. What about them makes you trust and admire them? On the flip side, think about the people who bother you, or rub you the wrong way, or don’t come across as trustworthy. What about their behavior makes you feel that way? Use those traits and behaviors as the basis for your core values. I like this approach because it’s not just looking at the values, but also the antithesis of those values. It gives you better context and substance so that you really have a well-rounded perspective as you write. Consider ChatGPT I also think that large language AI models can be really useful, not in giving you your specific core values, but in helping you along the way. You’re obviously not going to ask, “What are some good core values for a residential property management business?” Instead, come up with a sophisticated prompt. Ask the tool to walk you through an exercise to clarify your core values. For example, “The outcome of this exercise is that I will have a list of 6-8 most important core values that can be a useful framework for hiring and firing decisions and employee reviews. I work in the residential property management space. Please ask me a series of questions to help me uncover what my core values are.” This can replace a lot of the process pieces of traditional brainstorming methods, and help you find your values faster. 2. Narrow your list Once you have your brainstorming ideas grouped, you should identify the single word or phrase from each group that best describes your company. After you’ve got just one word or phrase per topic, it’s time to make the tough decisions. This is where you have to decide what’s truly most important to your business, and, as I said before, tease out what’s actually a value versus what’s a business principle. 3. Write your core values Here’s where you want to actually define the meaning of each core value. You want them to be clear and concise so that everyone in your company can easily understand them, including the behavior that’s expected from each. I strongly believe that phrases, rather than words, bring color, texture, and meaning, which will help your staff truly grasp them and live them out. Who should be involved? I am a strong believer that diversity of opinions drives better outcomes. Even when it means slowing down a project, I think getting a lot of opinions is worth it for the improved outcome. That said, with values, there’s no room for diversity. There can’t be tolerance for team members who aren’t aligned on values, or else the values lose meaning. As a leader, I am the keeper of the values. Part of my job is to make sure that everyone on my team is aligned and believes in the values. They can’t be designed by committee. The one place where it is very helpful to get input is in the brainstorming phase. Your team members will often have a better sense of what values you’re actually embodying, which can be hugely informative. Remember, the truth is what we do, not what we say, so it’s valuable to get opinions on the values that you’re currently living out. Perfect is the enemy of done One pitfall that I often see in small businesses, both across the board and with values specifically, is perfectionism. This is especially true for founders and entrepreneurs, and it was definitely true for me. I spent weeks and months thinking through my values, revising them, and trying to perfect them. The truth is, you need to accept that your values are going to get about 70-80% of the way to perfection, and not second guess them. Overanalyzing can be devastating, because it only delays the process. You should find a framework that works for you and stick to it, rather than adding revision after revision at the end of the process. Best practices for writing core values for a property management company In truth, your core values should always be a reflection of who you are and how you run your business. Don’t pretend to be someone you’re not. Be who you are right now, not what you think your audience wants to see. Your value stems from who you are, and you should lead with that authenticity. Here are some ideas that might help inspire values that align with your business: Focus on how you create value: If your company is truly focused on resident experience, for instance, that's something you want to be represented in your values. Reflect transparency: Does your company put a heavy emphasis on being totally open with what happens when things go wrong? If so, consider having something about proactive and vulnerable communication. Display competence: Are you engaged in the right routines to stay on top of the industry trends and acquire the best tools to serve your clients? This could inspire some of your values. Encourage diversity of perspectives not diversity of values: Be inclusive of different perspectives in most areas of your business, but when it comes to values, don't budge. Get them right and hold the line on who you are. Property management company core values examples In some ways, I hesitate to share my company’s core values directly. That’s not because they’re particularly private—in fact, we publish them directly on our website (as should you). What gives me pause is that I don’t want you to be influenced by my core values at the expense of being genuine with your own. That said, if you’re looking for an example of property management core values, here they are: Speed of trust: We believe trust is built through transparency and reliability, ensuring swift and honest communication Integrity: Honesty and ethical practices form the foundation of our business relationships Reliable: You can depend on us to manage your property with care and precision Humility: We approach our work with humility, wanting to learn and grow, open to new ideas and uncovering blind spots Partnership: We foster long-term relationships based on mutual respect and shared success, working closely with our clients, tenants, and community. I developed these as a second round revision of our core values, about seven years after writing our first set. With a new fractional CMO and a company that had evolved significantly, it felt like the right time. Reviewing and refining your core values I think it’s healthy and important to revisit your core values from time to time. We often see core values as being written in stone. In reality, changing them over time doesn’t mean that you’ve somehow lost your way, it just means you’re keeping a pulse on your identity. In fact, you should always be evaluating whether your values are still true to who you are. It’s always beneficial to the business to have a mindset of questioning things and looking at them from new angles. If that leads you to revise your core values, then all the better. But to me, the process is as important or more important than actually updating things. The discussion and engagement are key. This is another good opportunity to involve staff in the review process, because you can get a better sense of how much they understand and embody those values. Living your values Your core values should inform everything you do. You need to instill a culture where everyone at the company is true to the values, no matter what. You’re not going to convert someone to your core values after you hire them. Hire for core values and go from there. Similarly, if someone on your team doesn’t align with the company’s values, it may be time to reevaluate whether it’s a good fit. Whenever you have feedback sessions and performance reviews, you should be considering your values. You need to constantly review whether your behavior—both as individuals and as a business—manifests your values, or doesn’t. If not, it’s time to make some changes. We’ve recently been revising our policy manual. As we’ve done that, we’ve had our core values up on the screen so that we can look at every single policy we have and say, “does this truly align with our values?” If not, then why is it a policy? How can we rewrite it to make it more in line with who we want to be? If a core value or brand principle conflicts with a policy in any given situation, the winner is the brand principle or the core value. I was recently visiting the offices of a company I work with and I saw on the wall a laminated piece of paper. It looked something like this: It was a table, and down the left side it listed the company’s core values. Across the top was a ranking system from “Doesn’t display values at all” to “very much displays values”. And in each box on the grid, they had written specific examples of what kinds of interactions you would have that represented each value well or poorly. It was extremely clear and extremely powerful, because it showed exactly what the behaviors look like. It was a perfect illustration of how your core values take shape in each and every little interaction that you have. Who is this really for? A lot of property managers are struggling just to tread water. Especially for smaller or newer companies, that just comes with the territory. So you might be asking, “Hey, I barely have time to make coffee in the morning, never mind enough time to write core values. Does this whole thing even apply to me?” The answer, to me, is that it depends on where you want to go. In my opinion, any company who wants to continue to grow and hire new team members needs to prioritize core values. If you’re a sole proprietor with a couple of assistants, 100 to 150 doors, and no plans to expand, maybe you don’t need to go through this exercise. In a lot of ways, when you’re a team of one, your core values live within you. You may not need to write them up. The benefit of clarity isn’t as high when you don’t have staff. On the other hand, if you want to grow to 400, 500, or 1,000 units under management, it becomes increasingly important to clarify and clearly articulate what your core values are. Part of the recipe for having a very successful property management company is having clarity on core values and brand principles. The larger the organization is, the more intentional you have to be on how they’re articulated. Make your company core values Second Nature Remember, the key point here is the craft values that resonate with your staff and your residents, and that will help to strengthen your brand. It’s about being genuine and sincere, not being someone you’re not. If being resident-centric is one of your core values, consider how Second Nature’s Resident Benefits Package can help demonstrate your commitment to a positive resident experience.

February 18, 2025

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6 Property Management Skills for Success

In the high-stakes world of property management, professionals are constantly juggling a multitude of responsibilities. Developing your property management skills, from resident relations to financial acumen, can help you excel. The pressure is immense, and it's no wonder that over 25% of real estate property managers (PMs) are expected to abandon the industry within the next five years. The burnout is real, and the struggle to find enough time is a common theme among PMs. The right property management skills, paired with careful professional development, can significantly alleviate these pressures and transform careers. These top skills include communication, organizational prowess, financial acumen, relationship building, adaptability, and marketing savvy. In today’s post, we’ll examine these "big six" skill sets that truly elevate good property managers to great. Note that even though we here at Second Nature prefer the term "resident" over "tenant" in order to foster the human element, the word "tenant" may still be used occasionally due to its long-standing legal and real estate context. Top 6 skills for property managers Trying to pinpoint the most important skills for property managers is tough. The job encompasses so many things, but here are the top six that we find most important. 1. Communication Strong communication skills are the cornerstone of successful property management. Clear and concise communication ensures that all parties involved are on the same page, reducing misunderstandings, boosting negotiation skills, and fostering a collaborative environment. Clear and concise communication Effective communication is not just about speaking or writing well; it's about conveying a message in a way that is easily understood by everyone involved. This means avoiding jargon, being direct, and tailoring communication styles to different audiences. How you’d communicate with a potential tenant about maintenance issues might differ from how you’d interact with a contractor or a rental property owner. Make sure that you're conveying the right message to the right person. Active listening Active listening is equally crucial, particularly when it comes to resident relations. Active listening consists of four key steps: Fully concentrating on the other speaker Understanding their key message Responding honestly to show you're engaged Remembering what is being said so you can put it into action later This skill helps constructively address the concerns of residents, and over time will build trust and decrease tenant turnover. Multilingual capabilities In today's multicultural society, having speaking a second language can be a significant asset. While not a requirement in most parts of the country, being able to speak the language of your residents improves communications, making you a more effective property manager. 2. Organizational prowess A top-notch property manager excels in organization. With so many moving parts, you need to have a systematic approach to managing the details and keep everything running smoothly. Organization is a fundamental property management skill. Time management Successful property managers prioritize tasks and address important issues promptly. Property managers have a lot going on, so utilizing calendars, to-do lists, and project management software can help them stay on top of their work. Attention to detail Paying close attention to details ensures that nothing falls through the cracks. This could mean ensuring that maintenance requests are logged correctly or reviewing financial statements for discrepancies. Keeping detailed records is also key to property management success, so make sure your documentation is clean and timely. 3. Financial acumen Strong financial management skills are about understanding and executing the monetary aspects of property management to ensure profitability and sustainability. Financial management Creating and adhering to a budget is crucial. This involves forecasting future expenses and revenues to ensure that the property remains profitable. Plan for unexpected costs and allocate funds where they are needed most through effective budgeting. If you're looking to develop as a property manager, taking financial management courses may be in your best interest. Rent payments Efficient rent collection processes are essential to maintaining cash flow and ensuring timely payments. This includes implementing automated systems for rent collection and tracking payments to minimize late or missed payments across all rental properties in your portfolio. Financial reporting Generating accurate financial reports is critical for monitoring financial performance, identifying areas for improvement, and making informed decisions. These reports provide insights into rental income, expenses, and profitability, helping property managers to stay on top of their financial health. Understanding rental markets Staying informed about property values and rental market trends helps your property management business set competitive rental rates, ensuring maximum occupancy and profitability. You can track local market conditions and pricing, vacancy rates, economic factors, and demographic trends through industry reports, often available from property management software providers and real estate research firms. Spend some time finding sources you trust, and then subscribe to their newsletters so you can stay informed and up to date. 4. Relationship-building Building strong relationships is at the heart of property management. You need to foster trust and ensure that all stakeholders are satisfied. Excellent interpersonal skills Interpersonal skills are central to managing relationships with residents, contractors, and property owners. Focus on being approachable, empathetic, and professional, which will build a positive rapport with all parties involved. Negotiating skills are also vital. Whether you're negotiating a lease agreement, a new management agreement, or a maintenance contract, you need to know how to get the result that's best for the business. Conflict resolution Conflicts are inevitable in property management. Whether it's a dispute between residents or an issue with a contractor, having effective conflict resolution skills is key to maintaining harmony and ensuring that problems are resolved swiftly and fairly. Responsiveness and follow-through Being responsive to queries and requests shows that you value and respect others' time and concerns. Following through on commitments builds trust and reliability, which are essential in maintaining strong relationships. Customer service In the context of day-to-day operations, excellent customer service skills are about much more than resolving issues. They’re about creating a positive experience for residents, which can lead to higher retention rates and positive word-of-mouth referrals. 5. Adaptability The property management industry is dynamic and ever-changing. Top performers thrive in this environment by being adaptable and open to change. Problem-solving You need to be able to identify issues, evaluate options, and implement solutions quickly and efficiently. Strategic thinking skills help you make judgement calls on the fly and solve issues before they escalate. Staying current with regulations As industry development continues, regulations and laws related to property management are constantly evolving. Staying current with security deposit restrictions, relevant landlord tenant law, and other regulations is essential to ensure compliance. Regular research and training on local, state, and federal laws will protect you and your business. Embracing technology Technology is transforming property management. Embracing new technologies like property management software, smart home devices like smart locks and security systems, and digital marketing tools can streamline operations and improve efficiency. 6. Marketing savvy In addition to operational tasks, being marketing-savvy is a vital organizational skill. You should know how to market properties effectively to attract and retain residents, using traditional methods as well as social media and other digital platforms. Optimizing rental listings Rental listings are one of the most important pieces of the property management lifecycle. Property marketing requires an array of skills including search engine optimization, photography, and audience knowledge. You need to be able to speak specifically to the potential residents for each of your rental properties in order to attract the best applications. Building social proof You also need to be able to leverage social media to share personal stories. Sharing reviews, customer testimonials, and real stories from residents can help attract not only renters, but also investors. Differentiating your brand The property management industry is crowded. That's why you need to be able to differentiate yourself. Decide who you are as a property manager and as a company, and get very specific about who you want to target In a commoditized world, you need to be able to build a strong brand with a clear message that gives clients something to measure you on other than price. Property management certifications If you want to show expertise, commitment, and professional development, consider obtaining relevant real estate industry certifications. Certifications such as the Certified Property Manager (CPM), Residential Management Professional (RMP), or the Certified Apartment Leasing Professional (NALP) provide recognition of specialized knowledge and skills, enhancing credibility and career advancement opportunities. They show a dedication to the industry, to growth, and to providing the best possible service in your role. Final Thoughts There are certain skills that highly successful property managers have: communication, organizational prowess, financial acumen, relationship-building, adaptability, and marketing savvy. These skills not only help in managing day-to-day challenges, but also pave the way for long-term success and job satisfaction. And while developing those skills is important, so is leaning on processes and tools to help you along the way. Second Nature's Resident Benefits Package (RBP) provides fully-managed benefits that reduce maintenance requests, protect you and your residents, and give you back more time to develop your skills. Learn more about property management company best practices, marketing, and more in our Second Nature Community.

February 11, 2025

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Differentiating your Brand by Getting Hyper-Focused on your Target Client

Tony Cline has over 20 years of experience in property management. After purchasing a real estate and property management brokerage in Denver, Colorado, he spent more than two decades as managing broker. Today he's focused full time on his work as a Property Management Success Coach. Tony is a Second Nature Triple Win Mentor. At its most basic, your mission is who you serve and how. To put it another way, it’s your ideal client profile, the specific work you do, and the work you don’t do. There is no single thing that is more important in building your brand, because your mission informs everything about how you present yourself to the market and to your potential clients. When you clearly identify your mission and who you want to serve, you can better connect with them and build a unique brand around that target audience, and filter out those that aren’t going to be a good fit . Here are some of my best tips for building a brand from your mission statement, based on my decades of experience as a property manager, business owner, and advisor. Narrowing your mission When I first purchased a small property management company, we aimed to be “the downtown Denver loft and condo sales, leasing, and property management specialists.” We actually took a map of downtown Denver and picked specific cross streets to define our boundaries. Looking back, that was a great decision because it helped me: Target a very specific group of clients Speak their language Deliver the best possible service to them It set us off on the right foot by imposing limits on the properties we would manage, rather than letting us bite off more than we could chew. Building with intention I see a lot of property managers start building a company without direction. It's like reaching your hand into a bag and pulling out a block and saying, “Okay, well, this is what I’m going to build with next!” And they put it on the pile. And when you keep doing that, you don't intentionally build anything. You build a Jenga tower, where if you put one more piece on the top, it's going to collapse. Instead, what property management companies need to do is take a step back to evaluate things. Decide what you’re trying to build, make that your mission, and develop a business and brand that supports that. Why identifying your client base is key Your mission statement should very clearly outline who your target client profile is. That target client profile is going to directly impact how you present your company and the kind of content you’re putting out. One of the biggest challenges in property management is differentiating your business. The problem is, a huge portion of people think we're all the same. We're property managers. Without anything to separate us from our competition, the only thing they know to judge us on is price. But with a clear mission and target audience, you identify specific pain points and speak directly to the people you want to do business with. That way you cut through the noise, rather than using general language that doesn’t stand out. Home cook, or professional chef? In my experience, a lot of property management business owners act like home cooks. They pick their ingredients based on what’s in stock, what’s on sale, and what looks good in the moment. They’re managing whatever properties they can bring in and whatever owners they can sign a deal with. They start building this pantry of ingredients, and then they realize, if the ingredients are always changing, they need to keep cooking something different day after day. Constantly adjusting your menu makes it incredibly hard to really learn what you’re good at cooking and what your craft is. Instead, you want to become a professional chef. They're intentional about what goes in each dish, and one wrong ingredient can spoil the whole dish. They master a dish through repetition and care until it’s the best it can possibly be. Having the courage to say no If you want to master your craft, you have to make tough decisions and start saying no. Taking on new clients who don’t fit your mission will ultimately hurt your business more than help it. It’s tempting to take on anyone and everyone, especially if you’re less experienced or just launching your own business. Saying no to them takes courage. One of the most important steps is realizing that it’s okay to not be able to help everyone. So many business owners feel a sense of obligation to be able to help everyone who walks through the door, but that just isn’t realistic. An antique store isn’t going to be able to help you if you want a new 4k television, but that doesn’t make them a bad business. You just have different needs than they can serve. It’s not easy to tell a potential client, “hey, I don’t think this is a great fit, but I appreciate you reaching out.” But that’s an absolutely vital step to take if you want to grow your business sustainably. Example: two different kinds of clients Let’s take a look at two different audiences in the property management space: investors who see their properties as financial assets, and “accidental landlords,” who might have inherited a home and want to rent it out. These are two very different groups with different knowledge, different expectations, and different emotions, so you can’t treat them the same. Investors are concerned with the financials and how you’re protecting their investment, so your messaging should focus on things like: Proactive repairs and maintenance Return on their investment Total days it takes to turn over the property Average maintenance spend per property across your portfolio These are the kinds of topics that are going to break through the noise for that person, because those are the things they care most about. You have to extend that messaging through all your channels, including your website, your sales pitch, or your social media channels. Accidental landlords, who might just be starting to learn about real estate investing, often have deeper emotional ties to it. They raised little Sally in one of the bedrooms and they want to keep the pink walls they painted. For them, the messaging you have to put out is about turning their home into their product, and how to make this people's number one choice if they have ten options to choose from. Because they have different concerns, so your messaging—and therefore your brand—has to be carefully tailored. You can’t use the same messaging to appeal to both of them, or it will come across as generic and bland. You can’t build a strong brand without a strong mission. Sharing your mission vs living your mission Your mission and brand aren’t just about messaging; they’re things you have to live. You can’t just put your mission on a shelf somewhere and forget about it, and you can’t minimize your brand to just a logo and a slogan. Delivering the experience that sales promises One of the biggest areas where a lot of companies miss the mark is allowing a disconnect between sales and customer service. Business development will make a pitch that clearly aligns to the company’s mission, but the rest of the team doesn't then continue that forward through their operations. That's why a lot of companies will churn out doors in the first year. New clients hear big promises from sales, but they don't receive a service that meets the expectations that were set. Your whole team has to be aligned on the same mission and brand so that you’re speaking the same language and delivering the same message. Every time you develop a new policy, it needs to be built on your mission and aligned with your brand. Quite simply, if they don’t fit your mission, then they shouldn't be policies in the first place. You've already committed to a mission, so anything in the company that's not in alignment with that has to be modified in order for you to really have clarity. Only once your team is fully aligned can you start talking about your mission externally. How your brand filters in the right owners One of the most valuable things your brand can do for your business is to help the right clients self-select. If you develop a clear enough mission, and shape your brand around it, you’ll get to a point where your brand is so strong, you never have to say no to anyone. They just won’t reach out in the first place. When a property owner who doesn’t match your target client profile looks at your website, or your social media, or your email newsletter, they’ll realize that they’re not a good fit for your business, and they’ll move on. The flip side is that the right people will be reaching out in droves, because they connect with your company and see the value you provide that’s specific to their problems. That’s the power of a mission-driven brand. Practice makes perfect Building a mission-driven brand can feel overwhelming. The good news is, it will eventually start to come naturally to you. The more reps you do, the better you get, the more narrowly you're able to define what you're doing, the more time you can spend getting intentionally better at that one thing. You also have to get those reps in with your team. When you think you’ve over-communicated your mission and vision—when you think if you say it one more time, if you incorporate it into one more meeting, if you ask one more question about it, that your team's going to revolt because they're sick of hearing it—you’re probably about thirty percent of the way there. Ready to start building your brand with intention? Start with our webinar on writing your brand positioning statement.

February 11, 2025

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Property Management Agreement Guide + Free Template

As real estate investing becomes more popular, so does property management. Busy professionals and out-of-town real estate investors increasingly rely on property managers to handle the day-to-day operations of their rental properties. If you want to stand out to new investors, you need a clear and comprehensive property management agreement. In today’s guide we’ll cover the essentials of a property management agreement that drives transparency and peace of mind for investors relying on you to manage their assets. What is a property management agreement? A property management agreement is a legally binding contract between a property owner and a property management company or individual. This document outlines the specific responsibilities and duties of the property manager, the expectations of the property owner, the terms of service, and the compensation structure. The agreement serves as a guideline for both parties to understand their roles, rights, and obligations in managing the rental property, ensuring a clear and professional relationship. Why do you need a property management agreement? A property management agreement is essential for multiple reasons: Clarity and expectation management: It improves the property management relationship by clearly defining the roles and responsibilities of both the property owner and property manager. Legal protection: The agreement provides legal protection for both parties, specifying the terms of the services provided and the consequences of breach of contract. Financial management: It outlines the financial aspects of the relationship, including management fees, rent collection, and maintenance costs, ensuring transparency in financial transactions. Maintenance and repairs: The agreement specifies the procedures for handling maintenance and repairs, ensuring the property is well-maintained and any issues are promptly addressed. Dispute resolution: The agreement includes provisions for resolving disputes, which can help prevent conflicts from escalating and provide a clear path for resolution. What should a property management agreement include? Crafting a solid property management agreement doesn't have to be daunting. Here's a breakdown of the key components: Parties involved Clearly identify the legal name and contact information of the property owner or owners. Do the same for the property management company or individual. Property description Include the full address of the property being managed. For added clarity, consider including the legal description, particularly for complex property ownership structures. Specify whether the property is a single-family home, multi-unit building, or commercial property. Mention any unique features (e.g., pool, historic designation) or limitations (e.g., zoning restrictions, HOA rules). Term and termination details Define the start date of the agreement. Outline termination provisions and reasons for termination by either party (e.g., breach of contract, property sale). Specify the required notice period for each party if they wish to terminate the agreement (e.g., 30 days, 60 days). Explain how the date of termination should be communicated (written notice, specific format [e.g., certified mail]), the process for early termination, and any applicable indemnification measures. Manager responsibilities Detail the process for tenant screening, including applications, background checks, and credit checks. Outline procedures for the collection of security deposits, rent payments, and late fees, and document the eviction processes. Specify the property manager's duties and roles in overseeing maintenance requests, repairs, and independent contractor/vendor selection (approval thresholds, cost limitations). Define the frequency and format of financial reports provided by the property manager (monthly statements, annual reports). Establish communication protocols regarding tenant relations, maintenance emergencies, and routine updates. Consider outlining the property manager's availability for emergencies (24/7 hotline, designated contact person). Owner responsibilities Specify the owner's responsibility for major repairs beyond normal wear and tear. Outline the owner's role in providing access to the property for maintenance or showings when residents are not present. Define how major decisions regarding the property (e.g., renovations, capital improvements) will be made (joint agreement, owner approval). Address expectations regarding the frequency and purpose of property inspections conducted by the owner. Clarify the owner's responsibility to maintain appropriate insurance coverage for the property. Fees and compensation Detail the structure of the property management fee (percentage of rent collected, flat fee). Address any additional disbursements for specific services, such as resident placement or lease renewals. Dispute resolution Explain the process for resolving disagreements between the owner and the property manager (mediation, arbitration, legal action) and responsibility for legal fees. Specify the governing laws that apply to the agreement in case of disputes. Free property management agreement template (basic) This contract template is for informational purposes only and should not be considered a substitute for legal advice. Please consult with an attorney to tailor the agreement to your specific needs and to ensure that the provisions of this agreement comply with local and state laws. Property Management Agreement This Property Management Agreement ("Agreement") is made and entered into as of [DATE] by and between: [Property Owner Name] residing at [Property Owner Address] ("Owner"), and [Property Management Company Name] located at [Property Management Company Address] ("Manager"). WITNESSETH WHEREAS, Owner is the legal owner of the property located at [Property Address] (the "Property"); and WHEREAS, Manager desires to provide property management services for the Property; and WHEREAS, Owner desires to engage Manager to provide such services for the Property NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, the parties agree as follows: 1. Services Manager agrees to perform the following services for the Property (Services may be added or removed based on specific needs. Consult with a lawyer.): Resident screening and resident selection (application processing, background checks) Collection of rent and late fee enforcement Maintenance oversight and coordination (up to $[AMOUNT] per repair) Move-in/move-out inspections Monthly financial reporting related to management of the property 2. Term and Termination This Agreement shall commence on [DATE] (the "Effective Date") and shall continue for a period of [NUMBER] year(s), unless earlier terminated as provided herein. This termination of this Agreement may be effected by either party upon [NUMBER] days' written notice to the other party. 3. Management Fee Owner shall pay Manager a monthly management fee equal to [PERCENTAGE]% of the gross monthly rent collected. 4. Legal Proceedings In the event of a legal proceeding arising out of this Agreement or the management of the Property, the following provisions shall apply: Authority: The Property Manager is hereby authorized to initiate and prosecute any legal action deemed necessary to collect rent, enforce the terms of tenant leases, or protect the Owner's property interests. Owner Approval: Prior written approval from the Owner shall be required for any legal action exceeding $[Dollar Amount] or involving potential litigation. Costs and Reimbursement: The Property Manager shall keep detailed records of all legal expenses and attorney’s fees incurred. The Owner shall reimburse the Property Manager for all reasonable and documented legal expenditures associated with authorized proceedings. Representation: The Owner shall have the right to be represented by their own counsel in any legal proceeding. However, the Property Manager shall have the right to participate in the proceedings and may retain separate counsel at the Owner's expense if a conflict of interest arises. Communication: The parties agree to cooperate fully and share all relevant information in a timely manner throughout any legal proceedings. 5. Dispute Resolution (Optional - Replace with preferred method if applicable) Any dispute arising out of or relating to this Agreement shall be settled by [METHOD OF DISPUTE RESOLUTION, e.g., mediation] in accordance with the rules of [NAME OF MEDIATION PROVIDER] (the "Rules"). The decision of the mediator shall be final and binding on the parties. 6. Waivers The Owner acknowledges and waives any and all claims, demands, or causes of action against the Property Manager arising from the following, unless such claims arise from the Property Manager's gross negligence or intentional misconduct: Acts or omissions of any resident of the Property. Loss or Property damage caused by reasons outside the Property Manager's reasonable control, including natural disasters, acts of war, or civil unrest. Unexpected repairs or maintenance issues beyond the scope of normal wear and tear. The Owner further agrees to indemnify and hold harmless the Property Manager from any and all claims, liabilities, damages, losses, or expenses (including attorney's fees) arising from the Owner's violation of this Agreement or any applicable laws or regulations. 7. Entire Agreement and Governing Law This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written. The terms of this Agreement shall be governed by and construed in accordance with the laws of the State of [STATE]. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. [Property Owner Signature] [Property Owner Name (Printed)] [Property Management Company Signature] [Property Management Company Name (Printed)] Optional addenda For specific situations, consider adding supplementary documents like: Bed bug addendum Pool addendum Pet lease addendum These addenda can address unique requirements and regulations related to these aspects of the property. Ready to get started? Download our free template. Related: How to Write a Letter Notifying Your Tenant of the Sale of Property Best practices when using property management agreement templates Using property management agreement templates can streamline the creation of your contracts, but it’s important to adapt them carefully to meet your specific needs and legal requirements. Here are some best practices to ensure your agreement is both comprehensive and effective. Personalize the agreement Every property is unique, and so are the needs of the property owners and managers. Personalize your agreement by: Including unique features or limitations of the property, such as historical designations, HOA rules, or special amenities.. Adjusting the fee structure and additional details to match your specific financial arrangements. Regularly update and review Regularly review and update property management agreements to reflect changes in: Local, state, and federal laws that might affect your agreement's legal compliance. Current market conditions, such as changes in rental rates or maintenance costs. Establish effective communication channels Establishing effective communication channels within the agreement ensures smooth operations and quick resolution of issues. Include: Primary contacts for both parties and their preferred methods of communication. Clear guidelines for reporting maintenance issues, handling resident inquiries, and providing updates. Plan for contingencies Anticipate potential issues and include contingency plans in your agreement by: Outlining steps for handling emergencies, including contact information for emergency services and protocols for urgent repairs. Providing a clear process for resolving disputes, including mediation or arbitration clauses to avoid costly legal battles. Cover legal considerations Consulting with a lawyer is crucial to ensure your property management agreement is legally sound and reflects your specific circumstances. An attorney can help you with: Clearly defining which maintenance issues are the responsibility of the property manager and which fall to the owner. Outlining a comprehensive pet policy including pet restrictions, fees, and deposit requirements. Ensuring your agreement adheres to all relevant laws and regulations in your area, such as resident rights and fair housing regulations. Selecting the appropriate liability insurance for your properties to prevent lack of coverage down the road. FAQ Q: Is a property management agreement legally required? A: While not always mandatory, a property management agreement is highly advisable. It protects both the owner and the manager by outlining expectations and responsibilities of managing properties. Q: Do I need a lawyer to draft the agreement? A: While not mandatory, legal guidance is highly recommended. An attorney can ensure the agreement is legally sound, protects your interests, and complies with local laws. Q: Can I use this template for agreements outside of property management, e.g., for lease agreements or rental agreements? A: No, this template is specific to property management agreements. For other types of agreements, consult with a lawyer or use appropriate templates designed for those purposes. Q: What should I do after finalizing the agreement? A: Once both parties have signed the agreement, keep a copy for your records and provide one to the property manager. Familiarize yourself with the terms and communicate openly to ensure a smooth and successful working relationship. Build a foundation for success A well-drafted property management agreement is the cornerstone of a successful relationship between owner and property manager. By using the provided template as a foundation and consulting with a lawyer for customization, you can establish a clear and comprehensive agreement that provides full transparency and fosters a smooth rental property experience. On top of your agreement, consider rolling out a resident benefits package (RBP). It’s a powerful way for property managers to create a Triple Win—for residents, investors, and themselves. An RBP like Second Nature’s is designed to be simple to use and easy to implement. All the services included within it are managed externally by Second Nature, meaning there is no day-to-day upkeep required from the manager. You plug it in and Second Nature keeps it running. The value creation an RBP generates—with such little work required from the PM—is an incredibly easy way to grow your business and create great experiences that residents will pay and stay for. Don't get left behind in the evolving world of resident experience. Learn more about our fully-managed Resident Benefits Package and how we can build ease for you, your investors, and your residents.

February 7, 2025

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Your Guide to Security Deposit Laws in Florida

This post was last updated on 1/13/2025. Security deposits are an essential aspect of the property manager-resident relationship in Florida. They serve as financial protection for property managers while ensuring residents uphold their rental agreements. However, understanding the laws governing these deposits is crucial for avoiding disputes and ensuring compliance. In this blog, we’ll cover: An overview of security deposit laws in Florida Commonly asked questions about security deposits A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” in order to emphasize the relationship building element of property management work. However, there may be instances where terms such as "tenant" are used for legal purposes within documents or communications related to security deposit laws. Disclaimer: This is not legal advice. Any information contained in this blog is provided for informational purposes only and should not be construed as legal advice on any matter. This is especially true given that laws change on a regular basis. You should review specific security deposit laws for your state in detail to make sure you have the most up-to-date information available, and consult with your local counsel for applicability to your property. Why are security deposits in Florida important? Security deposits are like life jackets. You hope you’ll never have to use it, but when you do, you’ll be glad it’s there. Unfortunately, no matter how thorough your screening process is, you may end up with a resident who makes questionable choices. And when those choices cause damage to your property you’ll be thankful for your security deposit. Imagine Brad and Tyler, two roommates who moved from Miami to Gainesville. Missing the ocean but not wanting to drive all the way to the beach, they decide to recreate the summer vibes in their rental home. They break out the beach chairs, ask Alexa to play some Beach Boys, and fill up a kiddie pool in the living room to dip their toes into. But when it springs a leak, the carpet gets soaked through and the subfloor is damaged. Now you have to do some serious renovations, and it’s going to cost you. But since there is a security deposit, that expense may come out of their security deposit. Overview of security deposit laws in Florida Florida’s security deposit laws, primarily found under Florida Statutes Section 83.49, in addition to other statutes under landlord and tenant law, outline the rights and obligations of property managers and residents concerning the handling, refund, and permissible deductions of security deposits. Below is a breakdown of the key areas covered under these regulations. Deposit laws Florida’s deposit laws prioritize clarity and fairness in property manager-resident agreements. Key requirements include: Providing written notice of where the deposit is stored within 30 days of receipt. Following legal timelines for returns and notices of deductions. Keeping deposits separate from personal or business accounts for the benefit of the tenants to ensure accessibility. These laws protect residents from unfair practices and help property managers adhere to their professional obligations. Security deposit limit Unlike some states, Florida does not impose a statutory cap on the amount property managers can charge as a security deposit. Property managers are free to determine a reasonable amount (although public listings show that they typically charge one to two months’ rent). Prospective residents should be informed of the deposit amount before signing a lease in order to align expectations. Property managers may offer a “fee” in lieu of security deposit, an alternative option for security deposits that has become more common with other states. Under Florida law (Fla. Stat. Sec. 83.491), property managers may offer this option through written notice to the tenant, providing the tenant the right to pay a security deposit instead. Storing a tenant’s security deposit Florida law (Fla. Stat. Sec. 83.49(1)) requires that security deposits be kept in a separate account to ensure they are not commingled with the property manager’s personal or business funds. Walk-through inspection of rental property While Florida does not explicitly mandate a walk-through inspection before or after a resident’s occupancy, the duty to inspect and ensure the premises are safe is implied through the property manager's obligations under Florida law. Property managers who perform these inspections benefit from clearer documentation of property conditions. A move-in inspection with a signed checklist can establish a baseline, while a move-out inspection can help identify damages beyond normal wear and tear. Photos or videos taken during these inspections are useful for resolving disputes. Inspections can foster transparency and provide evidence to justify any deductions from the security deposit. Notice of deductions When deductions are taken from a security deposit, property managers are required to provide written notice to the resident (Fla. Stat. Sec. 83.49(3)(a)). This notice must include the exact amount deducted and the specific reasons for the deductions. For example, deductions might include unpaid rent or costs for repairing damage beyond normal wear and tear. Property managers must deliver this notice to the resident within 30 days via certified mail to comply with Florida law. If the property manager does not intend to impose a claim of deductions from the security deposit, the property manager must return the security deposit, with interest if applicable, to the resident within 15 days of the resident’s surrender of the premises for termination of the lease. Learn more: How to Write a Security Deposit Return Letter + Free Template Deductions allowed When deductions are taken from a security deposit, property managers must specify the reasons (Fla. Stat. Sec. 83.49(3)(a)), such as failure to pay rent or damages beyond normal wear and tear. Other deductions that may be allowed include: Cleaning fees: Only if specified in the lease agreement. General cleaning due to normal use cannot be deducted. Unpaid utilities or other charges: Any unpaid utility bills or other charges specified in the lease agreement can be deducted from the security deposit. Property managers cannot deduct for routine wear and tear (for example, minor scuffs on walls, faded paint, or wear on carpets from ordinary use). Written notice of security deposit receipt Property managers must inform residents in writing within 30 days of receiving their security deposit (Fla. Stat. Sec. 83.49(2)). This notification must detail where the deposit is being held (such as in a non-interest-bearing account, an interest-bearing account, or a bond posted with the clerk of the circuit court). Deposit holdings Property managers may choose from the following deposit holding options (Fla. Stat. Sec. 83.49(1)): A non-interest-bearing account An interest-bearing account (with earned interest credited to the tenant – at least 75% of the average annual interest rate or 5% per year simple interest, whichever the property manager elects) Posting a surety bond instead of holding the deposit in an account. If this method is used, the property manager must pay the resident 5% per year simple interest. Security deposit deadline Under Florida law, property managers must follow strict timeframes regarding security deposits (Fla. Stat. Sec. 83.49(3)(a)). If no deductions are made, the full deposit must be returned to the resident within 15 days of the lease’s termination. If deductions are necessary, the property manager must notify the resident in writing within 30 days, specifying the amount and reasons for withholding. The resident then has 15 days to contest the claim, in writing and sent to the property manager. Other requirements apply if a fee was collected by the property manager in lieu of a security deposit (Fla. Stat. Sec. 83.491). Failing to adhere to these deadlines may jeopardize the property manager's right to make claims against the deposit. Returning a security deposit to the tenant Florida law does not mandate a specific form for the return of a tenant's security deposit. However, best practices include: Certified check or bank draft: A certified check or bank draft is often used because it provides proof of payment and ensures that the funds are guaranteed. This is a reliable method for both parties. Electronic transfer: If both the landlord and tenant agree, the security deposit may also be returned through an electronic payment method (e.g., direct deposit or payment apps). Ensure this agreement is documented and keep a record of the electronic transfer. Personal check: This can also be used but is less secure than a certified check. Whether the lease ended amicably or through an eviction, Florida landlords and property managers should maintain a record of the security deposit return, regardless of the method, including a receipt or confirmation of payment. This documentation protects both parties in case of disputes. Selling the property or change in ownership When a rental unit changes ownership, Florida law (Fla. Stat. Sec. 83.49(7)) requires the outgoing property manager to either: Transfer the resident’s security deposit (minus any lawful deductions) to the new owner, or Refund the deposit directly to the resident. Written notification of the transfer, including the new property manager’s contact information, must be sent to the resident. The new owner assumes all responsibilities for the security deposit once the transfer is complete. Failure to comply with Florida’s security deposit laws Non-compliance with Florida’s security deposit regulations can result in severe consequences for property managers (Fla. Stat. Sec. 83.49(3)), including: Forfeiture of claims: If a property manager or landlord fails to provide timely notice of deductions, they may forfeit their right to withhold any part of the deposit. Resident legal action: Residents may be able to sue for the full return of the deposit, along with potential damages and attorney fees. Fines and penalties: Breaches of trust related to deposit handling may lead to financial penalties or additional legal actions. To avoid these risks, property managers should familiarize themselves with the law, document all actions, and maintain open communication with renters. Property managers should also consult with their local counsel for applicability of these laws to their property. Additional FAQs about Florida security deposit laws What is the new security deposit law in Florida? In April 2023, Florida HB 133 was passed into law, leading to the addition of Fla. Stat. Sec. 83.491, giving property managers the option to charge a monthly non-refundable fee instead of a security deposit. Such security deposit alternatives help reduce upfront costs for potential residents. Property managers looking to charge this type of monthly non-refundable fee should refer to the specific requirements under Fla. Stat. sec. 83.491 to ensure compliance. Learn more: What is Security Deposit Insurance? Pros and Cons [+Best Providers] Does a landlord have to provide receipts for security deposit deductions in Florida? While not explicitly required under Florida law, providing receipts for deducted expenses can prevent disputes and demonstrate good faith. Florida law does require property managers to provide an itemized list of deductions in the written notice to residents required when imposing a claim for damages upon the security deposit. Can a tenant use the security deposit as the last month’s rent? Residents are not automatically entitled to apply their security deposit toward their final rent payment. Unless the lease explicitly allows this, doing so may result in legal action. Learn more about security deposit best practices: What to Include in a Security Deposit Letter How to Write a Security Deposit Letter - Templates for Full Refund, Partial Refund, No Refund, and Request for Payment How to Send a Security Deposit Letter Mistakes to Avoid When Writing a Security Deposit Return Letter Final thoughts Florida’s security deposit regulations aim to balance the rights and responsibilities of property managers and residents. By staying informed and following the appropriate procedures, both parties can navigate this aspect of the rental process with confidence. At Second Nature, we aim to help you stay compliant, recognizing that compliance with property management laws safeguards your business and strengthens relationships with your residents. Our approach centers on transforming the resident experience, a concept that has shaped every aspect of our company. The resident benefits package is a comprehensive solution designed for property management companies, offering cost savings for both you and your residents while prioritizing convenience and an exceptional resident experience. Learn more about Second Nature’s Resident Benefits Package. Legal Disclaimer: The information contained in this blog is provided for informational purposes only and shall not be construed as legal advice. The laws referenced in this blog are subject to change. Please consult with your local counsel for applicability to your property.

February 6, 2025

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How to Handle Bad Reviews: Tips for Property Managers

Mark Brower is the owner and designated broker of Mark Brower Properties. He has over 20 years of experience in property management and investing, and lives in Mesa, Arizona. Mark is a Second Nature Triple Win Mentor. You’re going to get bad reviews. That’s just a fact of running a business. It’s impossible to please 100% of people 100% of the time, and inevitably someone is going to turn to Google Reviews or social media to air their grievances. But if you know how to handle bad reviews, you can actually turn them into an opportunity. In fact, even the worst reviews from current or former residents can be chances for your business because they can help you grow, improve your level of service, and delight those unhappy residents. With more and more potential residents turning to online reviews for information, it’s business critical to manage them well and see negative reviews as an opportunity for growth. So let’s dive into how I handle negative reviews at my property management company, and how you can do the same. How do negative reviews impact a business? We all know that social proof has an enormous impact on businesses. Prospective customers are looking for evidence about your trustworthiness, reputation, and level of service. Over the last twenty years, people have continuously moved more towards doing their own due diligence before they decide to get on a call with a salesperson, and online reviews have been the key piece of that. People have more information than ever before, and they feel like they can trust it. What makes property management unique is that choosing a place to live is such a huge commitment. It’s one thing to weigh what kind of mattress or computer you’re going to buy. It’s another to decide what home you’re going to live in. And that means that the stakes for property managers are even higher. One of the biggest pieces in building trust is openness and honesty, and that means showing your prospective residents the truth—the good and the bad. In a recent survey of nearly 30,000 apartment renters, nearly 70% said that they look at online reviews to help make their renting decision. Crucially, 86.2% said they were more likely to consider a management company that had mostly positive reviews with a few negative reviews mixed in, rather than all positive reviews. Part of being a strong business leader is being upfront and honest, and that means taking the good with the bad, and taking responsibility for both. A negative review isn’t going to ruin your business, but how you respond to it could. What to do when you get a bad review Bad reviews can be scary. They’re never fun to see, and they can send property managers into a spiral if they’re not careful. Keep your cool One of the most important things to do in response to a negative review is to control your emotions. That doesn’t mean you shouldn’t have emotions. In fact, you should get emotional! But you need to channel that emotion into vulnerability, and take a critical look at your company to see what went wrong. Personally, my initial reaction to a one-star review is pain. I feel anxiety and pain in my gut as soon as I see it. And that’s because I have a very low tolerance for negative interactions with my company. I want everyone to be as happy as possible with us. So when that doesn’t happen, it hurts. Some people have told me that I should turn off notifications and have someone else on my team deal with reviews. I couldn’t disagree more. As the owner of the company, I need to lead by owning the outcome myself. But when I feel that pain, I always try to channel it inward, rather than outward. It’s not productive to get defensive or argumentative, especially when your response is public. Instead, I let that pain drive me to improve my business processes and look for where we went wrong. Always respond That said, it is important to respond to reviews. Personally, I don’t post a public response immediately. Instead, I call them directly to take ownership of the issue and let them know I want to fix things. Then, while I wait for a response, I look to learn as much as I possibly can about that person and our interactions with them. I’ll spend an hour or more looking through our email correspondences, phone logs, and past maintenance issues. My goal is to truly understand their point of view, see things from their perspective, and make sure I fully understand the situation before I reach out to them. Private vs. public responses I do respond publicly, because people want to see that you’re addressing concerns and taking action in response to complaints. When I call them. I want to see how I can resolve their problem directly. Most times they don't take my call, and then I text them. If I need to, I’ll call and text the next day, too, because I’m not giving up. If I still don’t get a response, that’s when I’ll leave a public comment, because you can't go too long without giving some kind of public reply. Here’s how I reply if I haven’t had the chance to talk directly with the resident first: Apologize: I’m so sorry to hear that this is going on. I never want someone to have a bad experience with my company. Make it clear who’s responding: This is Mark Brower. I wanted to make sure you heard from me directly. Thank them: Thank you so much for bringing this to my attention. Ask for more information: I'm going to try to reach out to you because it's important to me that I understand your experience. Here's my cell number, and here's my email address directly. And please watch for my call. I want to learn more about this. The reason that I like to reach out privately first is that not all reviewers are comfortable sharing details publicly. It helps me get more information on what’s going on and learn how things have gone so off-course. But responding publicly helps build that trust that you’re committed to solving problems. It shows that you take ownership and lead by leaning in. Thank the reviewer and take responsibility One of the most important steps I mentioned is thanking the reviewer. People want to feel heard, especially when they’re facing a challenge. When you thank them, rather than getting defensive, you’re showing them how much you appreciate their honesty, and building that sense of understanding and trust. And you should mean it when they thank you, because they’re doing you a favor. They’re bringing a serious problem to your attention so you can fix it. My biggest piece of advice is that you have to start with a premise that people that have a bad experience are reasonable and rational. There is always a reason that they’re unhappy, and treating them as if they’re being unreasonable won’t help anyone. Instead, take responsibility for the problem and assure them that you’re working to make it right. And never throw your team under the bus. Even if there was an error made by one of your employees, you should recognize that, ultimately, it rolls up to you. Blaming someone on your team only creates tension and resentment internally, and gives an unhappy resident a reason to lash out at that person. How to resolve resident complaints It’s one thing to connect with a resident to apologize, and to reply on Google Reviews. The hard part is actually figuring out how to resolve the underlying issue. Make things right Hearing people out and making a direct commitment to address the issue goes a long way. But fixing the problem is really what they’re after. That means taking a hard look in the mirror to find out what went wrong. Maybe the issue stems from a vendor you hired who didn’t reach an appropriate level of service. Time to reevaluate how you’re vetting vendors. Maybe you didn’t clearly communicate expectations or requirements. Time to take a look at how you can be clearer. Maybe your resident didn’t understand how your processes work, and that put them in a frustrating position. Take a look at your onboarding process to see where it can be improved to set them up for success. The key is to take ownership, recognize that it’s your problem to solve, and go solve it. Finally, there’s sometimes controversy around financial compensation. I will say clearly that I do sometimes reward unhappy residents financially, if it’s appropriate. In my view, if my team's behavior caused harm in your life, I'm going to make that right. What I never do is tell a resident, “Hey, I’ll give you $200 if you take down your review.” In my view, that’s inappropriate and unethical. It’s the polar opposite of taking responsibility, and it’s not the right way to do business. Communicate Communication is absolutely essential. Once someone has voiced that they have a problem, you want to over-communicate with them about every step you take. Even if you aren’t getting a response, keep providing them updates so that they know they’re being listened to and that a resolution is in progress. You should be clearly communicating when: You’ve seen the review You’ve uncovered the source of the issue A team member of vendor has been assigned to it Someone has been dispatched to the property, if necessary The issue has been handled Every time there’s a development, keep your resident informed. It helps prevent any further negative reviews, and shows them that you’re taking things seriously. Follow up After the issue has been resolved, make sure that you don’t leave it at that. Check up on them periodically about the problem and make sure that it hasn’t resurfaced. Ask them if there are other problems that you can help solve. Give them special treatment and smother them with customer love. This is where my competitive nature comes out. I make it a contest with myself to fix the relationship with the resident until they decide they want to update their review. I will never ask a resident to change what they posted. What I will do is make them feel so special and so appreciated that they’re driven to change it on their own. There’s no better feeling than someone who left you a bad review coming back and updating it to say, “Hey, I connected with Mark about this. He solved my problem and he’s been really fantastic about it. I really appreciate how responsive his team was.” That is one of the most satisfying things I’ve experienced as a business owner. Should you delete negative reviews? My general advice is not to delete negative reviews. Like I outlined earlier, prospective residents appreciate seeing both the good and the bad. They want honesty and integrity, and deleting reviews is counter to that. The only real way to have reviews deleted is by paying some company hundreds of dollars to do it on your behalf. I never engage with those kinds of companies, and I don’t think you should either. If you’re getting spammed with bad review after bad review, all from the same angry resident, that’s one thing. If they’re just repeating the same complaint, there is a process through Google Business to have duplicates removed. There is an avenue if you want to pursue that. But I think it’s unethical to remove reviews that are accurate and factual. Plus, it hurts your business anyway, so just don’t do it. I have seen business owners—not necessarily property managers—actually threaten people who leave bad reviews. They claim it’s defamatory and threaten legal action if reviews aren’t removed. I think that is a terrible practice, and using legal threats to preserve appearances is the absolute wrong thing to do. Instead, take my approach of trying to delight someone so much that they feel a sense of responsibility to delete their review on their own. Make them so happy that they realize, “hey, this isn’t a fair portrayal of my experience,” and they remove it or update it. But leave that choice to them, don’t make it for them. How to prevent bad reviews You can never fully prevent bad reviews, but there are steps you can take to make them less likely. As a business leader, if you claim to own your outcomes, you should be setting up your business to eliminate 99% of pain points. And in property management, that’s not easy, but it is possible. Understand the most common reasons for complaints Start by understanding where your complaints are coming from. Negative feedback doesn’t just happen out of nowhere. I see the one one-star review as a really powerful signal that something is not only a little bit wrong, but several degrees wrong. If someone writing a one-star review online about us is the escalation path in our business, we've got a big problem. One of the most important steps is to see where your residents are having problems further up the funnel, before they become public complaints. Take a look at your maintenance request history and see if there are common items that need to be addressed more regularly. For example, if a water heater is more than ten years old, you should be taking measures to prevent it from flooding the property. When you turn a property, you should be doing a one-time pest treatment to make sure there won’t be future issues. Get ahead of common complaints before they become bigger issues. Ultimately, your company should have a system in place to prioritize and identify what the biggest issues are that you’re facing, and to address them before they reach that breaking point. Create a great first impression It’s absolutely vital to create a good first impression with your residents. That’s why you need a rock-solid onboarding process. You should include things like a utilities concierge to make move-in smoother and set people off on the right foot. But you should also make sure your overall process is setting up clear expectations for both you and the resident, that you’re giving them the tools they need to have a successful time in the home, and communicating clearly. Think about what your residents and owners need A huge part of being a successful property manager comes down to empathy. You need to be able to put yourself in the shoes of your residents and owners and anticipate their needs. Keep in mind that their needs are going to change based on the specifics of the property, their age and ability, and more. Make sure you’re meeting them where they are so that you can keep them happy and give them a good experience. Regularly gather feedback Your company should have multiple layers of feedback and response for your tenants. You should have an escalation path built into your processes. If a tenant has to write a one-star review in order to get their issue escalated, that’s a business process failure. Your feedback process should be clear and intentional. Resident surveys and digital comment boxes can give you insight into where you’re doing well and where you’re not. And then you need to use that information to take action. You need to have the discipline and willingness to chase down those threads and really get to the core of the issues in your business. That not only unlocks really powerful learning, but also validates residents' experiences. Learn and grow Michael Podolsky wrote in Forbes recently, “Any business with a continuous growth mindset should welcome negative feedback.” Use that feedback to make change and take action. That’s what a true growth mindset and extreme ownership approach are about. Want to learn more about managing your business’s reputation? Join our upcoming webinar.

February 4, 2025

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How to Create Property Management Business Plan [Free Template]

There are as many different perspectives on property management business plans as there are different PM businesses. But one thing holds true – in the classic adage usually attributed to Dwight D. Eisenhower – it’s not the plan that matters so much as the planning. Outlining a detailed business plan is key to defining and communicating your goals to potential clients and investors. It also requires deep insight into what residents want to experience. You may be new to the property management industry, have been managing properties for years and are ready to start your own business, or own a property management company but are looking for greater investment. Whatever the case, we’ll cover important topics to address business plan creation. We’ll explain why business planning can be so important, as well as who to target with your plan. We’ll also share a free template to get you started. Key Learning Objectives: How to identify and find your ideal clients How to articulate your value proposition What to include in your business plan How to outline your business plan A free property management business plan template What is a property management business plan? A property management business plan is an overview of your company's services, go-to-market strategy, financial plan, and leadership. It provides details on your property management company and how you intend to operate it. Your business plan should be thorough enough that readers can clearly see how you'll run a successful property management business. It should illustrate that you have a comprehensive understanding of the industry and your position in it, as well as your future growth goals. Why do you need a property management business plan? A property management business plan provides a clear view of what you need to do to make your business successful. The process of creating a business plan forces you to truly evaluate your standing as a company, including factors like cash flow, staffing, and sales strategy. Your business plan also provides a roadmap for success. It outlines what steps you need to take to be successful. Whether you're considering large financial projects or incremental business improvements, your business plan helps you better understand how to execute. It also helps you position your company within the property management industry. It can guide your ability to stand out compared to other property management companies and acquire new investors to manage. What to know before creating a property management business plan For entrepreneurs, planning is the key to success. Here’s what you need to get clear at the outset. State laws governing property management business Each property management company’s approach is very dependent on regional or state regulations. Before taking any steps to either start or change your business, you need to have a clear understanding of the local laws governing your business venture. We highly recommend hiring an attorney who can help you navigate those laws and regulations. How to create a successful property management business plan Peter Lohmann, CEO of RL Property Management, lays out three critical steps for residential property managers looking to crystalize a successful business plan: Identify your ideal clients. Articulate your unique value proposition for those clients. Go out and find leads. Who are your ideal clients? “Get really clear on who your ideal customer is,” Lohmann says. “Are you managing associations, office buildings, big apartments, single-family rentals, etc.? The narrower and more specific you can be, the better your life is going to be and the more money you’re going to make.” In other words, anything outside of this target market is going to be a waste of your time. That’s why this is the first step. “The more narrow and specific you can be here, the more directly you can speak to your prospects in a way that’s compelling,” Lohmann says. “Everything becomes easier – content strategy, sales conversations, even operations become easier – if you know who you want to manage for and what types of properties you want to manage.” Articulate your unique value to those clients The next step is to identify your unique value proposition. There are tons of other property management companies out there. Why should your ideal client choose you? In Lohmann’s words: “Your second step is to ask, ‘Why should anyone care?’ Property management isn’t a new concept; there are tons of property managers. So, identify what your unique value proposition is.” This is key to figuring out not just who to pitch to but how to pitch to them. “What are you going to talk about?” Lohmann says. “You can’t just say, ‘Oh, hire us, we’re the best!’ You need clear examples that say, ‘Our company does something a little different.’” For RL Property Management, that started as a promise that they would never charge a leasing fee. “Sure, it’s kind of crazy, and I don’t know anyone else who doesn’t charge that, but it worked,” Lohmann says. “We were trying to figure out why everyone hated their property manager. And we decided that it might be an incentive problem where the property manager’s incentive is to fill the unit as quickly as possible so they can get that big leasing fee, and that was creating bad outcomes for property owners. So we decided that we weren't going to charge a leasing fee, and we've stuck with it ever since.” How to find your ideal clients The third and final step of preparation is to identify where you need to go out and find leads and engage property management marketing. “Given what you know about how you defined your ideal prospect and your company and what they offer, the next question is where you go and get these leads,” Lohmann says. “A lot of property managers start with this third step. They just say, ‘How can I get more leads?’ But that’s the wrong question. Why do you deserve those leads? Answer that first. Downstream of that is ‘Where are those people hanging out, and how can I get this to them?’” Getting this step right involves researching property management and real estate property in your area and getting familiar with industry news, conferences, and listings. Define your business model Your business model, which is a core piece of a business plan, outlines your cost structure and revenue streams. Put simple, it's how you plan to generate profits. Many property management companies select from a few different business models and fee structures. For example, full-service, fee-based, and hybrid models are all popular. This is where you should decide whether you want to charge a flat fee, charge a portion of rent, or some combination. Consider how you want to charge for listing and leasing services, big-ticket maintenance items, and more. What should a property management business plan include? If you’re starting a new business and aiming to present a business plan to investors, or even business partners, you should outline each section below as a presentation deck. The information presented in this section needs to read like it is designed for investors and should highlight key terms and concepts they care about. Here’s a sample property management business plan outline, followed by a detailed explanation: Executive Summary Company Overview Market Analysis (Industry, Customer, and Competitive Analysis) Services Marketing Plan & Sales Strategy Operations Management Management Team Financial Plan Growth Opportunities Executive summary This is a high-level overview of your entire presentation, and should be the last section that you write. You want to be concise but interesting and hook the reader quickly. Outline the following in broad strokes: The type of property management company you are operating Your target market Your objectives Your plan for meeting these objectives Company overview The company overview will dive deeper into your property management niche and business model. Explain what types of properties you manage and how you operate. Options include single-family residential property management (SFR), multi-family property management (MFR) or residential apartments, HOA management, and commercial property management. Give a brief history of your company and your legal business structure. Other important information might include: Your key competitive differentiators and core competencies Your metrics for success Your management team Financial details Mission and vision statements Market analysis (industry, customer, and competitive analysis) The market analysis benefits you almost as much as it does your audience. Researching for this section will help you more deeply understand the industry, customers, and competition. Industry analysis should include details on the trajectory of the market, its size, and key trends, along with challenges and opportunities. Customer analysis should include details about your target customers, their wants and needs, etc. Competitive analysis should outline direct competitors (PMCs in your area) and indirect competitors like in-house managers, automated tools, etc. Explain why your value proposition is unique. Ideally, present a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis. Services This section should describe the property management services the company plans to offer, such as leasing, maintenance, and rent collection. Depending on the jurisdiction, legal compliance and documentation services may be relevant to property management associations as well. This section should also discuss the pricing strategy for these services. Marketing plan and sales strategy Your go-to-market section should describe the company's marketing and sales strategy, including how it plans to attract and retain clients. It should also discuss any advertising or promotional campaigns the company plans to undertake. Promotions could include paid advertising in print and on websites, social media marketing, radio advertising, SEO marketing, and more. Here, it’s important to document your marketing channels (organic online, targeted online, print advertising, professional networking) as well as ongoing sales and marketing programs. Related: 10 Property Management Goals to Set for the Year (with examples) Operations management Outline your short-term processes and long-term business goals, as well as estimate day-to-day operations. What property management software are you using in the business? What bottlenecks slow down work that’s moving through the organization? How will you structure your company and your teams? You should also include details on critical process workflows, risk mitigation strategies, and technology integrations and updates. Management team Outline your management structure and the skills and experience of your management team. Highlight property management and other real estate experience. Consider who you have in the company, who is a right fit, and who needs to be looked at as not a great fit. Financial plan Outline your major cost centers and revenue drivers. What management fees are you going to charge? You should include a profit and loss statement, balance sheets, and a cash flow statement. Growth opportunities Identify and outline the most targeted growth opportunities for your business right now and over the next five and ten years. Knowing your long-term goals requires you to gain a deep understanding of the real estate and property management market in your area and to understand clearly where you fit in and how you can generate growth and value for years to come. Typically, this section includes: Expansion plans Strategic alliances Technology upgrades Emerging market trends Property management business plan free template Follow this checklist or else download our free PMC business plan template to customize to your business. Executive Summary The type of property management company you are operating Your target market Your objectives Your plan for meeting these objectives Company Overview Mission and vision statements Your property management niche and business model How you operate Company history Your legal business structure Your key competitive differentiators and core competencies Your metrics for success Your management team Financial overview Market Analysis Industry assessment Customer analysis Competitive analysis Services Marketing Plan & Sales Strategy Outline of sales and marketing plans Marketing channels Ongoing sales and marketing programs Operations Management Long-term business goals Current processes Critical process workflows Risk mitigation strategies Technology integrations and updates Management Team Management structure Skills and experience Financial Plan Financial projections Cost centers and revenue drivers P&L statement Balance sheet Cash flow statement Growth Opportunities Targeted growth opportunities Expansion plans Strategic alliances Technology upgrades Emerging market trends ‍ Get your free PMC business plan template here. Beyond the business plan: Increase retention with an RBP At Second Nature, we work with property managers around the country to develop better resident experiences that generate more value for their clients and their companies. A Resident Benefits Package, or RBP, helps property managers at every stage of their company’s growth. Each product in this package delivers a service that residents want and sets your PMC apart. Our goal is to help make running a successful property management business as easy as second nature. Related: Property Management Startup Checklist

January 29, 2025

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Your Guide to Security Deposit Laws in Colorado

This post was last updated on 1/10/2025. Navigating security deposit laws can be challenging for property managers and residents alike. That’s why we’ve assembled this guide to the key rules and regulations governing security deposits in Colorado. In this blog, we’ll cover: The basics of security deposit laws in Colorado, including what they’re used for and how they’re handled. Common questions about security deposits, such as what constitutes normal wear and tear and how long before deposits must be returned. Best practices for creating clear communication around security deposits, including how to write refund letters. A note on language: Here at Second Nature, we prefer to use the terms "resident" and “residency” rather than “tenant” and “tenancy,” in order to emphasize the relationship element of property management work. However, there may be instances where terms such as "tenant" are used for legal purposes within documents or communications related to security deposit laws. In these cases, please understand that our intent remains the same—to provide clear, accurate, and meaningful information to all people involved in the business relationship. Disclaimer: This is not legal advice. Any information contained in this blog is provided for informational purposes only and should not be construed as legal advice on any matter. This is especially true given that laws change on a regular basis. You should review specific security deposit laws for your state in detail to make sure you have the most up-to-date information available, and consult with your local counsel for applicability to your property. Why are security deposit laws in Colorado important? If you’re fortunate, you’ll never actually need to touch your security deposits beyond some minor damage here and there. But much like car insurance or a fire extinguisher, you’ll be really glad you have it when you need it. Horror stories of resident damage are just a quick Google search away, and you don’t want to become one of them. Imagine you have a house that you rent to Kennedy and Heidi, two best friends who are fresh out of college. Not content with neutral wall colors, and feeling inspired by some DIY TikToks, they decide to repaint their living room. Three gallons of paint and six months later, their lease is up and you enter the property to do routine turnover maintenance. Now you have to bring in a painter to paint over their trendy artwork. Luckily, that expense may come out of their security deposit, so you aren’t on the hook for the expenses. Overview of security deposit laws in Colorado Security deposit regulations in Colorado are designed to clarify the rights and responsibilities of property managers and residents. Below, we break down the key aspects of these regulations and statutes: Purpose of security deposit The purpose of a security deposit is to provide landlords/property managers with financial protection in scenarios such as unpaid rent, damage beyond normal wear and tear, or costs incurred due to eviction. It also encourages residents to maintain the property and adhere to the lease terms. At the end of a lease, residents who meet their obligations typically receive their deposit back, minus any legally allowable deductions. Security deposit limit In Colorado, the current statute governing security deposit limits is CO Revised Statutes § 38-12-102.5. Effective August 7, 2023, this law stipulates that property managers cannot require a security deposit exceeding the equivalent of two months' rent. Please be aware that laws are always subject to change. Storing a tenant’s security deposit Colorado law does not specify requirements regarding the storage of resident security deposits. Specifically, there is no state statute mandating that security deposits be held in a particular type of account or location. Inspection of rental property A final walkthrough upon moveout allows property managers to assess property conditions and identify issues such as damages beyond normal wear and tear. The repair costs for these types of damages may be deducted from the security deposit. Note that property managers are obligated to maintain rental units in a habitable condition, ensuring they are safe and livable for residents. This obligation is outlined in the CO Revised Statutes § 38-12-503, known as "Warranty of Habitability". Written notice of security deposit Colorado landlords and property managers are required to provide residents with a written statement detailing any deductions from the security deposit, within 30 days unless the lease allows for additional time, up to a maximum of 60 days. This requirement as specified in CO Revised Statutes § 38-12-103(1), mandates that property managers must furnish a written statement listing the exact reasons for the retention of the security deposit. This statement must accompany the payment of any remaining deposit amount and be sent to the renter’s last known address. Deductions CO Revised Statutes § 38-12-103 permits property managers to retain portions of a security deposit for specific reasons, including: Unpaid rent Abandonment of the premises Nonpayment of utility bills/charges Repair work Cleaning contracted for by the resident It's important to note that property managers cannot retain any part of the security deposit to cover normal wear and tear. Wear and tear is generally considered to be signs of use, like small scuffs on flooring, carpet wear, and minor scrapes to walls or baseboards. It does not typically include more significant damage like broken windows or fixtures, holes in walls, or stains on carpet or countertops. Nonrefundable deposits Nonrefundable deposits are prohibited in Colorado and cannot legally be retained if the resident has fulfilled all financial obligations and left the property in good condition. Returning a security deposit to the tenant Property managers are obligated to return the security deposit within the timeframe stipulated by law, which by default is one month after the lease's termination or the resident’s surrender of the premises, unless the lease agreement specifies a longer period, not exceeding 60 days. Selling the property In Colorado, when a rental property changes ownership, the handling of security deposits is governed by CO Revised Statutes § 38-12-103(4). This statute outlines the responsibilities of the person holding the security deposit upon cessation of their interest in the property, whether by sale, assignment, death, appointment of a receiver, or otherwise. The individual in possession of the security deposit must, within a reasonable time: Transfer the deposit: Transfer the security deposit, or any remainder after lawful deductions, to the property manager's successor in interest and notify the resident by mail of such transfer and the transferee's name and address; or Return the deposit: Return the security deposit, or any remainder after lawful deductions, directly to the resident. Upon compliance with these requirements, the original holder of the security deposit is relieved of further liability regarding the deposit. The new owner or successor in interest then assumes all rights and obligations concerning the security deposit. Failure to comply with Colorado’s security deposit laws In Colorado, CO Revised Statutes § 38-12-103(3)(a) addresses the consequences for property managers who fail to comply with security deposit regulations. If a property manager willfully retains a resident's security deposit in violation of the statute, they may be liable for treble (three times) the amount wrongfully withheld, in addition to reasonable attorney fees and court costs. However, before initiating legal proceedings, the resident must provide the property manager with notice of their intention to file a lawsuit at least seven days before filing the action. Learn more: Security Deposit Alternatives for Property Managers and Residents What is Security Deposit Insurance? Pros and Cons Additional FAQs about Colorado security deposit laws Are deposits refundable in Colorado? Yes. Deposits must be fully refunded minus any valid deductions. What is considered normal wear and tear? Wear and tear includes minor scuff marks on flooring, worn carpet, general wear on appliance handles, and the like. Damage, like large stains/holes or broken fixtures, may not be included. Do property managers need to provide receipts for deductions? Yes. Landlords must furnish a written statement itemizing deductions, accompanied by receipts, if applicable. How long does a property manager have to return the deposit? Under Colorado law, landlords must return the security deposit to the resident within one month after the termination of the lease or the resident’s surrender of the premises, however, this timeframe can be extended to 60 days after the termination or the lease or resident’s surrender of the premises if specified as such in the executed lease. What happens if the deposit is not returned within 30 days? Property managers failing to return the deposit or an itemized list of deductions within the required period can face legal consequences and additional costs, such as triple the amount of the security deposit wrongfully withheld, attorney fees, and court costs. Best practices for property managers: What to Include in a Security Deposit Letter How to Write a Security Deposit Letter - Templates for Full Refund, Partial Refund, No Refund, and Request for Payment How to Send a Security Deposit Letter Mistakes to Avoid When Writing a Security Deposit Return Letter Final thoughts Navigating Colorado's security deposit laws requires careful attention to detail. At Second Nature, we’re here to support you in security deposit law compliance, with the philosophy that ensuring compliance not only protects your business but also fosters better resident relationships. The fact is, we’ve built our entire company on the idea that resident experience can change the game in property management. Our Resident Benefits Package is an all-in-one resource for property management companies that saves money for you and your residents and delivers the best in convenience and resident experience. Learn more about the Resident Benefits Package. Legal Disclaimer: The information contained in this blog is provided for informational purposes only and shall not be construed as legal advice. The laws referenced in this blog are subject to change. Please consult with your local counsel for applicability to your property.

January 23, 2025

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Make Your Personal Story Part of Your Property Management Brand Identity

Property management is an inherently personal industry. You’re literally taking care of someone’s home, and it doesn’t get much more personal than that. So why do so many property managers shy away from sharing their personal stories? By embracing your personal story of how you go into property management, what you love about it, and why, you can develop a stronger brand identity. That means a stronger connection with your investors and residents, and a unique way to separate yourself from the competition. What’s your (brand) story? One of the unique things about property management is that everyone has such varied backgrounds. Almost no one goes to school to become a property manager, or grows up thinking that’s what they’ll do. And that means that everyone has their own story to tell about how they ended up where they are. Maybe you were an accidental landlord who inherited a property and had to learn to manage on the fly. You can lean into the hard work it took to learn the business, and how you empathize with property owners in a similar predicament. Or maybe you were a forward-thinking investor who managed your own properties, but then you discovered you had a knack for it and decided to expand your management business. Your story might be one of business acumen and knowing the importance of protecting an investment. Plenty of property management companies are family businesses, passed down through generations, so maybe that’s how you came into it. In that case you have lifelong experience and a deep knowledge of your neighborhoods and communities. Or maybe you had a real estate background and decided to transition from sales to management. Your area of expertise might be the legal and logistical aspects of the business. Whatever your story, you can make it a part of your brand and emphasize why it sets you apart from other property managers. Don’t be afraid to be personal and vulnerable; let your investors and residents know why you do what you do and why you love it. Why you should get personal When you embrace and share your personal story, you form better connections with others. It builds a sense of trust and camaraderie that makes people want to work with you, and to give you the benefit of the doubt. Beyond that, you become more memorable, and your story can lend credibility to your professional chops. Plus, when you lead with your story, you develop both a property management brand identity and a personal brand, which can open up more opportunities. Embracing your humanity to build trust and relatability According to an Inc. article written by Harvard instructor Carmine Gallo, storytelling is the secret to building business relationships. Gallo says that storytellers, “deliberately choose personal experiences that instill trust, build rapport, and motivate others.” Andrew Dunbar of Forbes agrees: Brands seeking to build loyalty and trust with their target audiences need to bake consistent storytelling into all aspects of their digital experiences. That means that investors who hear your story and recognize your vulnerability are more likely to want to work with you. When your story is consistent and they feel like they’re truly getting to know you, they feel compelled to continue building that relationship. It’s also important for your residents, who may only reach out to you in times of high stress, like when they have an urgent maintenance issue. In fact, research has shown that people with a high level of empathy are less reactive to stressful situations than those with a low level of empathy. In other words, a resident who empathizes with your personal story and feels a connection to you is less likely to send an angry email or yell at you on the phone. Instead, they’ll take a calmer demeanor, even when the situation is difficult. Differentiation Your story probably includes just how long you’ve been at it in the property management world. In fact, if you were asked to write a professional bio, it might be the first thing you include. Details like how long you’ve been licensed, how many doors you manage, and how long you’ve managed in your particular geographic area can all lend extra credibility to your business. Investors want to know that you have a proven track record before they start working with you, and residents want to know that you know what you're doing and won’t drop the ball if an issue arises. A personal story can also make you more memorable to your audience. In fact, cognitive psychologist Jerome Bruner found that facts wrapped in a story are 22 times more memorable than facts alone. So if you want potential investors to remember you, tell them your story. Finally, your story can help you stand out from the crowd. In a service-based industry like property management where many competitors can be seen as equals, that’s more important than ever. You don’t want to be competing on services that are seen as commoditized, or just trying to offer the lowest price. Instead, you need to find new ways to differentiate. You can often find those differences in your experiences, areas of expertise, and your personal commitment to property management. Stand out because of who you are and where you’ve been. Personal branding According to Forbes, personal branding is more important than ever. By celebrating your personal story, you’re developing a personal brand that your audience can connect with and remember. It also makes you a better candidate for opportunities like podcast appearances, conference speaking engagements, and panel discussions. Those are basically free marketing opportunities, which give you exposure to hundreds or thousands of potential new clients. While it can initially feel uncomfortable to make yourself vulnerable, it can have tremendous benefits for your business and career. How to ingrain your story in your brand Your brand is in everything you do. That doesn’t mean you need to tell your whole life story every time you receive a call from a resident or prospective investor. There is such a thing as oversharing. But there if you look for opportunities, you’ll find that there are good times to tell your story and allow it to support your value proposition and the work that you do. Your website Your website is one of the most powerful tools that you have. Your company has full control over how it presents itself, what users see, and you tell them your story. Most property managers are tempted to keep themselves and their background to the About Us page, or maybe the Our Team page. While that can seem like it makes sense, you should expand beyond that. Your home page is a perfect place to introduce yourself and what your company believes in. It’s where you make a first impression, and your personal background should be a part of that. Share what you believe and why. You can also integrate your story into your Services page, emphasizing why each service that you offer is important or personal to you. And if you don’t have a Team or About Us page, you absolutely should, and you should use it as an opportunity to put your story out into the world. Chambers Theory, led by Tommy Chambers, is particularly good at highlighting their deep experience across their site. On the About Us page, the team breaks down their history, their mission, and their approach, including a note that Tommy is a third generation real estate professional with over 20 years of property management experience. The company also clearly lays out its core values, helping readers connect with them and setting them apart from the crowd. On the Team page, Tommy’s bio also lays out his upbringing as the child of U.S. Intelligence and State Department veterans, which connects to his company’s dedication to providing services to those serving their country. All of this connects back to the company’s work in the Washington, DC metro area. Social media Social media is another powerful arrow in your quiver, because it’s also an “owned” channel. You have full control over what you post and how you frame it. We’ve already seen the rise of the “LinkedInfluencer,” professionals who use LinkedIn as a platform to build their personal brand. Social media platforms can be great places to connect with your peers, customers, and potential customers. One of the best ways to do this is by sharing your story. On social, that usually means short anecdotes, telling your story in bits and pieces. That can include tales from your past, or examples of how you do business today. Mark Brower of Mark Brower Properties does a superb job of this on LinkedIn. He frequently posts on his personal page about relationships—with tenants, employees, and even his father—and how they connect to his business. He tells stories about everything from staff meetings to one-star reviews and the mindset that he brings to his work every day. Business cards, speaking opportunities, and more You might think that most places where you display your company, like signage and business cards, might be too small to represent your story. But when you think outside the box, you can find opportunity anywhere. Consider a one-line slogan that gives a sense of your background, experience, or values that you can include on business cards, in your email signature, and on ads, flyers, or stationery. This can help build a familiarity with you as an individual and add to the trust factor. Speaking engagements are also a fantastic way to help people connect with your story. Industry shows and smaller local property management networking events are great opportunities to join a panel discussion or give a breakout session presentation. Podcasts and webinars can give similar benefits without the hassle of travel or scheduling. Basically, anywhere that you’re using your logo, see if there’s a way to weave in your experience and your story. Obviously it won’t be a perfect fit everywhere, but you should at least ask the question. Building your property management brand If you’re interested in learning more about how your brand can truly set you apart, join our upcoming RBP workshop!

January 21, 2025

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What to Include in Your Rental Listing Description: Examples & Template

Effective rental listings attract quality applicants, minimize vacancy time, and set the tone for your residents’ experience. That’s why it’s worth taking the time to craft a compelling rental listing with attention to detail, engaging descriptions, and clear information. In today’s blog, we’ll focus on helping property managers create winning listings. Specifically, we’ll discuss: What you need before you get started What rental listings should include How to write rental listing titles, descriptions, and FAQs What to do before posting your rental listing Rental listing overview A rental listing is the first interaction many residents have with their potential new home, so it needs to entice people and welcome them in. These listings typically appear on renting platforms like Apartments.com, Zillow, and Realtor.com, showcasing essential details, images, and descriptions that help potential residents quickly identify whether a property suits their needs. A top-notch listing typically includes: A compelling headline: Highlight a unique feature like "private balcony" or "near downtown" to get the prospective resident interested. High-quality photos: Clean, well-lit pictures of both interior and exterior spaces that showcase the entire rental property. Essential details: Number of bedrooms and bathrooms, square footage, total monthly rent (including base rent and any recurring mandatory charges), pet policies, and amenities. For example, compare these headlines: "2BR Apartment in Midtown" "$1,800 per month– 2 Bed/1 Bath Apartment in Midtown with In-Unit Laundry" The second headline not only gives more details but also draws attention to a key feature. Well-written listings also set expectations by including restrictions (e.g., "no smoking" or "no pets") and highlighting proximity to schools, parks, or public transit. This saves time by weeding out residents who wouldn’t be interested and minimizes the number of questions you have to answer later. What the rental listing should include A strong rental listing provides all the information a prospective resident needs to make an informed decision. Here’s what to include: Interior details: Number of bedrooms and bathrooms, square footage, and specific features like hardwood floors or vaulted ceilings. Common spaces: Shared amenities such as a fitness center, pool, or laundry facilities. Exterior spaces: Whether the property has a yard, patio, or balcony. Restrictions, such as pets, smoking, occupancy limits, and specific leasing conditions. Neighborhood highlights: Nearby transit options, grocery stores, restaurants, schools, and anything else relevant for residents. Application process: Requirements for background and credit checks, income restrictions, and how to apply. Costs: Monthly base rent, security deposit, application fee, Resident Benefits Package fee, and other mandatory charges (e.g., pet fees or parking fees). A listing that answers common questions upfront not only attracts serious inquiries but also positions the property as professionally managed, giving prospective residents more confidence in applying. Before you write your rental listing Before you start, you’ll want to gather all the information you need to create that captivating rental listing description. (Don’t worry–you can use our checklist below to get started!) 1. Property details: Include dimensions, features, and any recent updates or renovations. 2. Photos: Take high-quality images. Ensure the space is clean and well-lit, and avoid common mistakes like leaving toilet seats up or capturing clutter. Highlight the space’s uniqueness and look to other professional listings for inspiration. James Barrett, Co-Founder of Tenant Turner, and a property management expert, said, “You don’t need to have the most expensive digital camera and the greatest lenses. With modern phones, you can get the right quality. And if you're in a market where you're getting a lot of people from out of town, virtual tours [recorded with your smartphone] can be effective." 3. Optional extras: Consider including a virtual tour or 3D models, especially for residents relocating from another city. Virtual tours can help prospective residents imagine themselves in the space and better understand how a home flows from one room to the next. If you’re interested in these elevated listing experiences, we recommend checking out Plan-O-Matic. Rental listing information checklist The checklist below will ensure that your rental property description a) is comprehensive and b) appeals to potential tenants by addressing all key aspects of the property. Address and Property Type Property address (including city and zip code) Rental type: single-family home, apartment, condo, townhome, or other Rental Property Details Number of bedrooms Number of bathrooms Total square footage (including both interior and exterior, if applicable) Appliances provided (e.g., refrigerator, stove, microwave, washer/dryer) Special features (e.g., hardwood floors, vaulted ceilings, natural light, walk-in closets, fireplaces, etc) Lease term: specify duration (e.g., month-to-month, 6 months, 1 year) Parking details (on-street, driveway, garage) Application Process Background check required? (Yes/No) Credit check required? (Yes/No) Income requirements (e.g., minimum 3x rent) Documentation required (e.g., proof of income, references, identification). Consent required for checks (include state-specific legal requirements, if applicable) Costs Total monthly rent amount (defined as base rent plus any recurring mandatory charges). Security deposit amount (include explanation if it’s first and last month’s rent, etc.) Application fee (if applicable) Additional costs (Note: Any recurring mandatory charges should be separately itemized with descriptive language explaining the purpose of each mandatory fee): Resident benefits package Parking fee Pet fee or deposit (including whether the deposit is refundable or not) Utilities: Included utilities (e.g., water, sewer, trash collection, electricity, heating, cooling) Resident’s responsibility (list any excluded utilities). Pet Policy Pets allowed? (Yes/No) Limitations (e.g., specific breeds, size/weight restrictions, number of pets) Specifics (e.g., cats only, dogs only, exotic pets excluded) Amenities Shared amenities (e.g., fitness center, pool, clubhouse, laundry room) Property-specific amenities (e.g., private patio, fenced yard, garage) Community outdoor spaces (e.g., park, basketball court, garden) On-site services (e.g., 24-hour maintenance, package lockers, online payment portal) Location Highlights Nearby public transportation options (list closest stops/stations) Proximity to key commuter roads and highways Proximity to key locations: Shopping centers Grocery stores Dining and entertainment venues Pharmacies Nearby schools (mention top-rated ones, if applicable) Parks or recreational areas in the vicinity Some property listing platforms might require an FAQ section at the bottom of the rental listing with additional information that the prospective resident can review quickly to get an overview of the rental property. Many of the details listed in this checklist will also be included in the FAQ section, so be sure to have this information on hand. FAQs reduce back-and-forth communication, streamlining the process. Writing the title for the rental listing Your headline is your hook. Make it descriptive, concise, and attention-grabbing. Use this template for inspiration: [Rent Price] – [# Beds / # Baths] [Property Type] in [Neighborhood] with [Feature]. Examples: $1,750 per month– 1 Bed/1 Bath Apartment in Uptown with Floor-to-Ceiling Windows and Stunning Views $2,200 per month– 3 Bed/2 Bath Home in Old Town with Private Garden The combination of price, features, and location provides a degree of assurance that the right audience will click through and respond to the call to action. Writing the description for the rental listing Keep your rental description short but impactful, and use vivid language to highlight the property’s best features and selling points. Avoid generic phrases. Instead, provide specifics that create a mental image of living there. Also, keep the description to about four to six sentences (maximum eight sentences). Use this formula: "Looking for [adjective, adjective] living? Discover this [# of beds]-bedroom, [# of baths]-bathroom [type of house] in [neighborhood/city], ready for move-in on [date available]. Featuring [unique feature, such as 'an open-concept kitchen,' 'a spacious backyard,' or 'stunning city views'] and [additional amenities, such as 'on-site parking' or 'in-unit laundry']. Conveniently located near [landmark, public transportation, shops, or schools]. [Accepts/Does not accept] pets. Total Rent: [rent-amount]/month (which includes base rent plus [description of recurring mandatory fees]). Security deposit: [number of months deposit] months. Utilities: [list of utilities included or specify resident responsibility]. Apply now: [application process details, such as an online link or email address], or contact [your name] at [your phone number] to schedule a viewing." Example: Bright and spacious 2-bedroom apartment in the heart of Downtown. Enjoy modern stainless-steel appliances, in-unit laundry, and stunning city views from your living room. Just steps away from cafes, public transit, and parks. Pet-friendly. Total rent is $2,000/month (which includes base rent plus [utilities, RBP, etc.]) with a $1,000 security deposit. When mentioning restrictions or requirements, be upfront. This prevents mismatched expectations, saving time for everyone involved. Pro-tip: Something worth noting is that prospective residents may be put off by properties that have been on the market for a while. It may raise questions about why it hasn’t been leased yet. For that reason, we recommend updating your listing description to simply say, “ready for move-in today” once the property is available, rather than keeping a specific listing date from the past. Including Resident Benefits Package language in the description When listing a rental property that includes a Resident Benefits Package, it’s important to be transparent about both the price of the package and what benefits are included. This can help set clear expectations upfront, and help attract potential residents who are interested in the benefits you’re offering. Here’s an example of how you can present your Resident Benefits Package in a listing: At [Company Name], we strive to provide an experience that is cost-effective and convenient. That’s why we provide a Resident Benefits Package (RBP) to address common headaches for our renters. The total monthly rent price of $[total rent price]* includes base rent plus our RBP which includes our renter’s insurance program, on-demand pest control services, air filter delivery, utility concierge, rent reporting services for credit building and more, automatically added to every property as a required program. More details upon application. *If you provide your own insurance policy, the resident benefits package cost will be reduced by the amount of the insurance premium billed by Second Nature Insurance Services (NPN No. 20224621). Before you post your rental listing It’s a best practice to conduct a final check before posting your listing: Proofread: Typos and unclear details can affect credibility, so you’ll want to make sure you review the copy and run a spelling and grammar check. Comply with Fair Housing laws: Avoid discriminatory language. Review photos: Make sure your listing photos are uploaded correctly. Review the photos to make sure there are no duplicates, the photos aren’t blurry or rotated, and that all the photos accurately represent the space. Review costs: Make sure you’ve mentioned screening costs, such as the credit and background check, as well as any other associated costs. Verify platform rules: Ensure your listing adheres to site guidelines. Once the listing is posted, track how residents find your property—whether through a listing site, social media, or referrals. This insight will help refine your strategy for future listings. Learn more: How to Screen Potential Tenants: Tips for Property Managers What is Security Deposit Insurance? Pros and Cons Pet Policy for Renters: Best Practices for Property Managers Great example of a rental listing Let’s take a look at an example of a great rental listing and what makes it stand out. Why it’s a great listing: Simple, high-quality photography showing the exterior of the unit Clear details of beds, baths, square footage, move-in date, and full address Transparent pricing including both base rent and total monthly cost Why it’s a great listing: Highly transparent, itemized cost breakdown Clear terms and conditions regarding utilities, pet fees, and insurance Highlights key features like fireplace, fenced yard, and pet friendliness Why it’s a great listing: Once again, it highlights key features, going into more detail about them Emphasizes flexibility in lease terms Summarizes the Resident Benefits Package, such as what’s included and that it’s a required program Final thoughts Creating a rental listing that stands out requires attention to detail and a focus on providing clear, engaging, and accurate information. A well-crafted listing not only attracts the right residents but also sets the tone for a positive renting experience. One often overlooked tip is to ask prospective residents how they discovered your listing. This can help you understand which platforms yield the best results, allowing you to refine your approach over time. For additional guidance and resources, check out these helpful tools: 9 Ways to Improve Your Resident Experience Property Management Rental Inspection Checklist [Free Template] To gain deeper insights into crafting rental listings that convert, watch the on-demand webinar Listing to Leased. This session explores expert tips for creating professional, appealing listings. Finally, learn how you can elevate the living experience for your residents with Second Nature’s Resident Benefits Package. It's a simple way to enhance resident satisfaction and streamline property management.

January 16, 2025

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A Step-by-Step Brand Positioning Framework for Property Managers

Whether your property management company is brand new or well established, it’s helpful to go back to basics and reconnect with who you are as a company. Your brand is more than just your name, website colors, and logo—it’s how your residents and property owners perceive and interact with you, and it’s how you position yourself in the market. If you haven’t revisited your brand in a while then a brand positioning framework could be helpful. What is brand positioning? Your brand positioning is the way that you present your company in the market, how your customers connect with and identify you, and what makes you different from your competitors. Brand positioning should typically include a few things: The value that you bring to your customers How you stand out from the competition Who your ideal customer is What you stand for, or your company’s values For property managers, this can seem like a difficult task. In a service-based industry, it can be challenging to find ways to differentiate yourself. By focusing on your mission, vision, and values, you can create brand positioning that focuses on the experiences you bring to residents and investors, and what kinds of properties you want to manage. Why does brand positioning matter? Why is brand positioning so important in the first place? To start, it makes it easier to connect with the right customers. When you know what kind of investors you want to work with, and you present that stance clearly in the market, you’ll find better matches more quickly. It can also increase customer loyalty. When you’re deliberate about who you are as a company and how you’re perceived, you can deliver better services and experiences that make residents want to renew their leases and investors want to keep working with you. It also makes it easier to focus your marketing and customer service strategies. When you know what values you want to embody, you can be hyperfocused on delivering on that promise. Ultimately, proper brand positioning creates a triple win for you, your residents, and your investors by letting you home in on what’s important to you, and deliver a top-tier experience to everyone involved. Your brand positioning defines how you approach every interaction with customers and potential customers, and how you present your company to the world. What is a brand positioning framework? Now that we’ve established what brand positioning is, it’s time to figure out how to actually develop it. That’s where a brand positioning framework comes in. A brand positioning framework is a process or method of deciding what’s important to your brand, and then building that into a clear positioning statement. A positioning framework provides the structure and tools needed to flesh out your positioning. Our step-by-step positioning framework Okay, it’s time to dive in. Here are our favorite steps to building a property management brand statement. 1. Determine what kind of positioning you want to lead with It’s important to start by looking at what your focus is as a company. While not all of these might end up in your final positioning statement, they’ll help you decide what’s most important and provide an opportunity for self reflection. Competitive differentiation: What makes you different (read: better) than your competitors? Do you take a more comprehensive, white-glove approach? Do you have expertise in a particular segment, like low-income, student, or single family housing? Maybe you have in-house maintenance or a law degree that means you don’t have to lean on as many vendors. Find what makes you stand out. Quality: What quality of service do you deliver, and how? Are you focused on being the absolute best, no matter the cost? Do you have a commitment to maintenance resolution times and on-call staff 24/7? Experience: This is similar to quality, but it goes a bit deeper. How do you find opportunities to delight your investors and residents? Where do you go above and beyond? How do you make life easier overall for everyone you interact with? Price: Are you a company that competes to be the most affordable option, offering discounts and rewards for investors to work with you? Or do you charge a premium for your top-notch service? Simply saying, “we’re the best at everything and we’re the most affordable!” is not generally helpful in developing a brand position. We’re all familiar with the old adage that something can be good, fast, or cheap. Pick two, but you can’t have all three! The same applies to property management. There are always tradeoffs, and part of developing your brand is deciding where you put your focus. We recommend this diagram to evaluate where you fall: In this example, the property management company in question has a strong focus on quality and experience, and that comes at the expense of being able to offer cheap pricing. They should lean into that as part of their brand positioning statement, marketing themselves as more of a white-glove, luxury brand. 2. Create a perceptual map Another great tool that we highly recommend is called the perceptual map. A perceptual map is a chart used to visually illustrate where a brand is positioned compared to its competitors. To start, select two metrics that are important to your industry. Set one as the x-axis and the other as the y-axis, and then map yourself and your competitors based on how you’re perceived. As an example, let’s look at a consumer product we’re all familiar with: cell phones. It’s pretty easy to map some of the biggest brands based on how affordable and how user-friendly they are. For property management companies, you may use something like price and extent of services. A key to the perceptual map is that it can help you identify areas of opportunity, or gaps in the market. If there’s an empty quadrant, that might be a good place to establish your brand to capture underserved customers. In this case, it’s a perfect fit for our sample property management company who’s focused on delivering the best possible experience at a slightly higher cost. 3. Create a brand wheel Another great tool is the brand wheel. A brand wheel is a diagram that helps develop your brand positioning by starting at the core—brand essence—and moving outward to brand benefits, propositions, and values. First, start with your brand value. This is typically a single feeling or emotion that you want your brand to embody. For our example company, which we’ll call Gold Key Management, this might be something like “relaxation” or “peace of mind”. This goes at the very center of your brand wheel, because it’s core to everything you do. Next, outline your brand’s benefits, your differentiation statement, and the facts that back up that claim. For our company, the benefits might be worry-free management, investment protection, and consistent return on investment. The differentiation statement may be that investors get complete asset management with low vacancy rates and competitive rents. To substantiate that claim, we can cite low turn times, high lease renewal rates, and high resident satisfaction. Finally, it’s time to look at what values and perceptions you want your brand to have. For our high-end management company, values might include clear, proactive communication, transparent reporting, and regular preventative maintenance. Perceptions might include exclusivity, professionalism, and trustworthiness. By starting from your central brand essence, you can quickly gain clarity on how you want your company to be perceived. 4. Ask the audience Okay, enough with the fancy charts and graphs. This tip is simple, and it may be the most important. If you want to know how your brand is being perceived, just ask! To get the most complete picture, you’ll want to get input from your residents, your investors, and your employees. Asking your team how they see your brand can be hugely insightful. It not only shows what kinds of values they’re bringing into their interactions with customers, but it also reveals potential gaps in training and internal messaging. Investors can also be valuable in understanding your brand, because at the end of the day, they’re the ones paying you. While it can seem daunting, sending a periodic survey to your investors to understand their satisfaction level and what they want to see from you can go a long way. You can also integrate a short survey into your onboarding process for new investors. Even asking something as simple as “why did you choose us to manage your property?” can surface great insights. Finally, talk to your residents. Schedule automated feedback surveys after lease signings, renewals, and maintenance tickets. Consider an annual pulse check survey to gauge their satisfaction. While most residents probably won’t want to volunteer their time to help you with your marketing strategy, they’ll often have strong opinions that can show you whether you’re actually living out your intended brand values. Draft your positioning statement Now that you’ve gathered all of your information, organized it effectively, and put it on paper, it’s time to sit down and write your brand positioning statement. This is where you pull it all together. Keep in mind that you may go through a few revisions, and that your first draft doesn’t have to be perfect. You can think of your positioning statement like an elevator pitch—it should only be a couple of sentences, short enough that you can say it out loud without having to stop to take a breath. Consider some of these questions to get you started: IS: What do we do? What are we offering to our customers? How would you describe your services? FOR: Who do we serve? Who is our target customer? Who are your services for, and how specific are you when selecting customers? WHO: What challenges or opportunities are they facing? What are your customers trying to achieve? What can you help them with? FOCUS: How are our offerings unique? How does our service help our customers? What benefit or value do your customers receive from you? For Gold Key Management, the positioning statement might look something like this: Gold Key Management is a full service property management company for single-family home owners in the Omaha area who want to protect their investments. We focus on proactive management while providing grade-A service and experiences to our residents. Here are a few things that make this a strong positioning statement: It clearly defines the market. Single-family homes in Omaha are the specialty, so potential customers know right away whether they’re a good fit. Language around investment protection shows that a top priority is the financial management of a property, which differentiates from management companies who are reactive. Terms like “full-service” and “grade-A” emphasize a focus on high-quality work. Revisit regularly Finally, once you’ve established your brand positioning statement, make sure that you treat it as a living, breathing document. Don’t just put it on a shelf and forget about it. Not only do you need to make sure you’re instilling these values in your team and living them out with every customer interaction, but you also need to revisit them to make sure they’re still reflective of your market. Markets change, new competitors enter the space, and brands evolve. Make sure that you’re checking in periodically, typically every six to twelve months, to make sure that it still helps set you apart from the competition. Make sure it’s still resonating with staff, investors, and residents, and make updates as needed to keep yourself ahead of the pack. Looking to differentiate yourself? A Resident Benefits Package is a great way to set yourself apart from the competition while also generating revenue. By providing unique benefits to residents, you can make your investors’ lives easier while creating a new income stream for your company. Curious about RBPs? Join our upcoming RBP workshop!

January 14, 2025

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Brand vs. Branding: Focus on the Experience You Deliver, Not Just Your Logo

Having a strong, well-defined brand is important for any business. But in property management, where business owners are constantly busy putting out fires (sometimes literally), it can be difficult to prioritize building a brand. Most property managers just don’t put enough time into it. Most property management companies commission a logo from a designer, build a website, and call it a brand. In reality, though, a brand goes a lot farther. Focusing on your brand beyond just branding can have an outsized impact on your business, and lead to happier residents and investors. What is branding? A lot of people confuse having “branding” for their company with having “a brand.” To simplify things and make sure we’re all using the same language, your branding is the visual and stylistic representation of your brand. It includes elements like: Logo, colors, and font Slogan Website Imagery, photography, and icons Branding is when you make sure the color of the ink on your business card matches the colors on your website, or when you put your logo on the side of a maintenance truck. It’s making sure your lease template uses the latest logo and colors, and that your welcome guide uses the same iconography as your resident portal. But your visual branding is only a subset of your overall brand. It doesn’t get at the heart of what makes your company unique, and it doesn’t account for how your audience sees you. That’s what a true brand is. What is a brand? Your brand is how your employees, customers, and potential customers see you. It’s how your company makes them feel, the reputation you carry, and the experience you bring to the market. Let’s look at a few different elements that make up your brand, and how they come to life for a property management company. Memorable experiences Every time you interact with someone, whether it’s on your website, via a phone call, or by fixing a maintenance issue, you’re building experiences they’re going to remember. Part of building a strong brand is giving consistent, positive experiences at every opportunity. It’s the steps you take, the words you use, and how you respond to issues. For example, Dollar Shave Club has created memorable experiences through their creative advertising and viral marketing. They back it up with a simple, quality product. Emotional connection A brand is about fostering an emotional connection with your audience. Maybe your brand is about making your audience feel heard and supported, or about making them feel like they can trust you. Maybe it’s making them feel like you’re a friend, or a professional, or an expert. It’s your job to decide what emotions you want people to associate with your company, and then to live that out every day. One company that absolutely nails emotional connection is Starbucks. By writing your name on your cup, presenting their shops as places of communal gathering, and leaning into special occasions with their holiday cups, they make a simple transaction feel deeply personal. Reputation Your brand is how people see you. It’s whether they like you, have positive experiences, and appreciate you. It’s what they say in Google reviews. And that goes for both your residents and your investors. Rolex is basically synonymous with high quality watches. They’ve built a brand almost entirely on a reputation for quality (and the price tag that comes with it). Your story Your brand is who you are, how you got here, why you care about the work you do, and your vision of where you go from here. Maybe you have an extensive background in real estate, or maybe you became an accidental landlord. Maybe you get satisfaction from helping residents keep a comfortable home, and maybe you love helping investors maximize returns. That all relates to your story and your values. Nike does a great job of embracing their history. They hold strong ties to Oregon—their home state—and advertise as an American company. Their history is so meaningful that one of their shoes has its own movie. Differentiation Your brand tells people how you’re different from every other property management company on the block. All of the elements we’ve already outlined add up to create a unique brand. That’s how residents and owners will see you, and how you’ll stand out from the competition. If you want a great example of differentiation, look to Whole Foods. They captured the mainstream market for high quality, natural and organic food nationwide. While natural and organic stores existed before, they weren’t seen as mainstream grocery stores. Whole Foods created a brand based on their differentiation from traditional stores and challenged the big players. Values and workplace culture The principles you hold, even when no one else is watching, are key to who you are as a company. They should help shape your brand and your culture. That brand is reflected in the team that works with you, and the environment they work in. Apple is a great example of a company that builds a great culture to uphold their values. For example, they were among the first companies in the United States to offer in vitro fertilization benefits for employees. Their mission is to use innovative technology to empower people and enhance their lives. What better example is there than IVF? This list isn’t exhaustive. There are plenty of other elements that contribute to your brand, like your mission, your communication cadence, when and how you ask for feedback,and your written style guide. All of those things are equally important. The important thing to remember is that your brand is all of these things put together, which creates an overall perception in the market. Brand vs. branding: why does it matter? As we outlined, your branding is just one piece of your brand. But why is a brand so important, anyway? First of all, a strong brand is a business advantage. Quite simply, it helps you stand out in the market and win more business. When you’re memorable and give potential customers a positive experience, it makes them want to work with you. Second, it helps build a connection and sense of trust. Residents and investors alike want to work with a property manager that they feel has their best interests at heart, and who they can truly trust to do the right thing. When that’s part of your brand and lived out in each daily interaction, it encourages a genuine connection. Finally, a strong brand gives your team members the principles and values that they need to represent you well. When your brand principles are instilled in your employees, they’re more likely to carry it out in their day-to-day work. They’re also more likely to feel connected to your company, do better work, and stay with the team longer. Brand expert Drea Buer, owner and founder of Respect The Brand, agrees that a brand is essential for any company owner. “A personal brand isn’t just a buzzword. It is the face and reputation that you put out into the world,” she says. “It’s how people connect with you.” As far as the benefits, Buer says, “When people trust you, they’re more likely to buy from you, refer others to you, and advocate for your business.” In her full video, Drea dives into why a personal brand can have an even larger impact than just a company brand. Building a Triple Win experience Ultimately, your brand should create benefits for you, your residents, and your investors. When you create a Triple Win, you bring a new level of success to property management. Remember, your brand isn’t just how you intend to present your business to the world. It’s also how your business is received. You need residents, investors, and team members to receive your brand positively if you want to be truly successful. If you’re looking to learn more about how you can create Triple Wins with your business, register for our upcoming RBP Workshop, where you’ll learn how a Resident Benefit Package can elevate your brand.

January 8, 2025

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Why Rent Reporting Services Are a Triple Win for Investors, Residents, & Property Managers

All kinds of big consumer purchases are reported to credit bureaus—car loans, credit cards, even furniture financing—but for many people, their largest and most consistent monthly expense simply doesn’t make the cut: rent. Rent reporting services are transforming the property management landscape, creating a Triple Win of benefits for residents, property managers, and investors alike. These programs bridge a critical gap in the financial system by turning rent payments into a tool for building credit. “It’s kind of crazy that someone’s largest monthly expense—their housing payment—is one of the only payments that isn’t on their credit report,” our Chief Customer Officer Andrew Smallwood said in a recent interview. “It’s a really significant payment on a monthly basis.” Below, we’ll take a closer look at the concept of rent reporting and its benefits: For residents: Empowering financial growth through improved credit scores. For property managers: Enhancing tenant satisfaction while reducing administrative hassle for providers. For investors and owners: Increasing tenant stability and ensuring consistent cash flow. Note: At Second Nature, we prefer the term “residents” over “tenants” to emphasize the relationship aspect of property management. However, legal contexts may still require “tenant” for clarity. What exactly is rent reporting? Rent reporting is the process of submitting rental payment data to credit bureaus (TransUnion, Equifax, and Experian) so that rent payment history becomes part of a resident’s credit history. This creates a built-in reward system providing additional incentives to pay rent on time, helping residents build credit and, in turn, access better financial opportunities. For property managers, offering this service can streamline operations and enhance resident satisfaction by aligning their financial goals with reliable rent payments. There are two primary ways rent reporting works: Property manager-led reporting: Property managers can use a rent reporting service to submit rental payments on behalf of their residents, ensuring accuracy and consistency. Resident-led reporting: Residents can sign up for a rent reporting service themselves, which tracks their payments and reports them directly to the credit bureaus. Once payments are reported, they’re factored into the resident’s credit score. On-time payments reflect positively, potentially boosting their score. If missed or incomplete payments are reported, they may have a negative impact. Typically, a new tradeline appears on a resident’s credit report within 90 days of starting the service. Rent reporting services: A Triple Win Residents Smallwood reflected that a member of the Second Nature team rents a home and gets credit building services through their Resident Benefits Package. This individual tracked the first 16 months of renting the property. “What he saw was his score increased by 72 points over that time period, which, to put that in perspective, getting an increase of 20 to 40 points is likely going to move somebody up one to two tiers. A 70-point score is likely to boost somebody up probably two tiers, maybe even three, but what’s the impact of that? It makes life outside of rent much more affordable.” Rent reporting services give residents a significant advantage by transforming what was once an unrecognized expense into a credit-building opportunity. In turn, an improved credit history can open doors to new financial opportunities, such as better loan and credit card eligibility, improved interest rates, and even greater accessibility to future housing. For example, residents who report rent payments see an average 29% increase in their credit scores, which could mean the difference between qualifying for a mortgage, or securing lower interest rates from lenders on a car loan or credit card. This kind of improvement can also lead to significant annual savings on car payments, credit card interest, and future mortgage payments. When it comes to cost, residents who self-report typically pay a small monthly fee for these services, while property managers offering the service as part of a benefits package often include it in their rent agreement. In either case, the investment is minimal compared to the financial benefits of improved credit. Of course, it’s important to note that credit scores are influenced by multiple factors, and while rent reporting can be a powerful tool, it’s not a guaranteed fix-all—residents must also maintain good financial habits across all areas of their credit history to see meaningful, long-term improvements. Smallwood reflected on the impact of rent reporting services, saying, “When you think about the median home price of $400,000 or more and the mortgage somebody would be taking on that to be qualifying at one to two tiers… [they benefit from a] lower interest rate because of [their] credit score. The impact of that is going to be tens of thousands, maybe even a hundred thousand dollars or more over the lifetime of somebody’s mortgage product. “That’s a huge life-changing type of financial impact. It also means on their auto financing, that they’re going to be getting that at a lower rate. It also means their credit card, if there’s a balance, they're going to be paying a lower point of interest right on that credit card. It may mean the difference between even qualifying for a mortgage in the first place or qualifying for that auto loan that they need to get to work in the first place. And so, somebody’s credit score can really have a huge impact on their financial life, and experience as a resident getting the benefit of their largest monthly contribution towards building their score can make a huge difference.” Property managers Rent reporting services offer property managers a cost-effective solution to streamline operations, enhance tenant relationships, and reduce financial risk. In fact, a 2021 study from TransUnion found that 73% of renters would be more likely to make on-time payments if they knew their payment history was being reported to the bureaus. Positive reporting: On-time payments reported to credit bureaus can have a significant impact on residents building credit, incentivizing timely payments, and reducing the likelihood of delinquencies. Tenant screening: Rent reporting creates a transparent rental history and credit profile that future landlords can access, offering insights into a tenant’s payment behavior—both positive and negative. Marketability: Properties offering rent reporting attract tenants with financial goals aligned toward building good credit. These financially responsible tenants are also more likely to pay on time, reducing overall risk. Additional amenity: Including rent reporting as part of a benefits package positions property managers as forward-thinking and resident-focused, helping to retain existing tenants while drawing in new ones. Rent reporting services can even create opportunities for ancillary revenue streams—depending on the program structure. Investors and owners For investors and property owners, rent reporting services provide an invaluable level of financial stability and predictability. By incentivizing on-time rent payments, these services reduce the likelihood of delinquency, ensuring a steady stream of income. Owners can rest easier knowing their tenants are more likely to stay in their homes longer, minimizing costly turnovers and vacancies. Additionally, rent reporting aligns tenant interests with responsible financial behavior, which translates to fewer risks for property owners. Stable, long-term tenants not only protect the value of the investment property but also contribute to overall financial peace of mind. Final thoughts Rent reporting services can represent a transformative opportunity for residents, property managers, and investors. By integrating rent payments into credit reporting, these services empower residents to build better credit, provide property managers with streamlined tools to enhance tenant satisfaction and offer investors the stability of longer-term, financially responsible tenants. Interested in exploring what these services can do for your residents? Second Nature’s Resident Benefits Package makes implementing rent reporting effortless. With features like credit reporting to all three major credit bureaus, 24 months of back-reporting on past payments, and an automated, fully managed process, Second Nature ensures you can maximize the value of your property management strategy while creating meaningful benefits for residents. To learn more about how rent reporting and the entire RBP can create a Triple Win for your company, join our upcoming RBP Workshop.

January 2, 2025

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Tenant Gift Ideas for All Occasions

As Second Nature, we recognize that many in the industry use terms like "tenant gifts." However, you'll see us use the term "resident" in place of "tenant" as a way to emphasize the human element of property management. There may be instances where "tenant" and "tenancy" are used for legal purposes, or in quotes from property managers or other sources, but we prefer "resident" because it better reflects who they are as people, and sets property managers up to forge stronger relationships with them. Building strong relationships with your residents is essential to running a successful rental property (or properties). That’s why thoughtful, well-timed gifts can be a great way to not only create a sense of community, foster goodwill, and boost retention, but ensure the long-term success of your property management business. In this blog, we’ll explore: What resident gifts are, as well as practical and personalized gift ideas for all budgets and occasions The benefits gifts provide to both property managers and residents When to give resident gifts, such as key events like milestones or holidays Benefits of resident appreciation gifts Who doesn’t like feeling appreciated? Showing your residents what they mean to you can offer numerous advantages, helping to foster a positive and lasting relationship. Increases resident retention: A thoughtful gift demonstrates that you value your residents, making them feel appreciated and more likely to renew their leases. Encourages positive reviews: Happy residents are more likely to leave glowing reviews, boosting your reputation as a property manager. Sets you apart: Small gestures of goodwill can distinguish you from other property managers, making your properties more desirable. Builds trust and respect: Resident appreciation strengthens the manager-resident relationship by fostering mutual trust and respect. Maintains the relationship: If there has been a misunderstanding or miscommunication between the property manager and resident, a thoughtful gift from the property manager could help smooth things over. Investing in resident appreciation initiatives is a simple but effective way to enhance resident satisfaction and create a more harmonious living environment. Related: 9 Ways to Improve Your Resident Experience Why is Resident Experience Important? The State of Resident Experience Report (whitepaper) Overview of gift types There are all kinds of thoughtful gift options that property managers can offer to residents, creating opportunities to extend a sense of community and appreciation. Welcome packages: Everyday essentials like disinfecting wipes, filters, and toilet paper with a personalized welcome message are often well-received by new residents who are just moving in. Discounts or special offers: Reduced rent or exclusive deals, especially during the holidays, can go a long way in showing appreciation. (Learn more about different resident rewards you can offer through Second Nature’s Resident Benefits Package.) Gift cards: Options like coffee gift cards, grocery store vouchers, or spa services provide flexible and practical benefits. Other ideas include gas cards or gift cards from large retailers (such as Walmart or Amazon). (Gift cards are a type of resident rewards you can customize in your Resident Benefits Package.) Community-building contests: Organizing monthly or seasonal contests or giveaways for residents can foster engagement and create a stronger sense of community. Seasonal treats: Consumables like holiday-themed candy, desserts, or other festive goodies. Pet-friendly gifts: If your company allows residents to have pets, toys or treats for furry friends can be a thoughtful touch. Each of these gift ideas is a simple yet effective way to show residents that their satisfaction and happiness matter. Creative resident appreciation gifts by occasion Property managers can customize a resident rewards program, as part of Second Nature’s Resident Benefits Package, as a way to reward positive resident behaviors. Related: What Is a Rent Rewards Program? Although certain occasions or incentives can make gifting especially meaningful, you don’t always need a specific reason to show appreciation to your best residents. Here are some of the best times to consider. Welcome and move-in gift baskets for new residents First impressions matter, and a thoughtful welcome gift can set the tone for a positive relationship with new residents. Move-in gift baskets are a simple yet impactful way to show your appreciation and help tenants settle into their new home. A few approaches include: Practical essentials: Cleaning supplies like paper towels, laundry detergent samples, bathroom essentials like toothpaste, or kitchen basics like dish soap and sponges can be a lifesaver on moving day. Comfort items: Small snacks, a bottle of wine*, or a cozy throw blanket will make the space feel more inviting. (*Wine for adults over 21 only.) Local touches: Gift cards to nearby cafes, maps of the neighborhood, or coupons for local services help residents feel connected to their community. Sustainability-focused gifts: Reusable water bottles, energy-efficient lightbulbs, or biodegradable products align with eco-friendly values. First night’s dinner: Consider a gift card to a local take-out spot so that your residents don’t have to worry about cooking dinner on their first night when all their cookware is still packed away. These gift baskets not only make moving day easier but also show that you genuinely care about your residents’ comfort and experience from the start. A truly welcoming move-in gift for residents In this social post, Ian Joseph, the Owner and Founder of The Joseph Group, showcases a carefully curated move-in gift package designed to make a positive first impression on new residents. The package includes: A custom “welcome home” candle with a unique scent A freshly picked dahlia from a local farm A handwritten note from the property manager with a "dinner on us tonight” offer A folder containing resident benefits and orientation materials to help new residents settle in smoothly An orientation service offering on-site assistance from the moving concierge team This thoughtful combination of practical items, personal touches, and supportive services helps create a warm, welcoming, and stress-free experience for new residents. Resident appreciation gifts Thoughtful, personalized gifts can make residents feel valued and foster stronger relationships year-round. Whether you’re celebrating a major milestone or simply recognizing their presence in your community, these gestures can go a long way in creating memorable moments. Key milestones to celebrate Life events: Big moments like weddings, new babies, or graduations are perfect opportunities to send a personalized gift. A baby care package or a keepsake for newlyweds can make these moments even more special. Resident rewards program: Incorporate appreciation into structured initiatives like rent rewards programs, as part of your Resident Benefits Package, by offering perks such as event tickets, local discounts, or special experiences tailored to your residents’ preferences. Surprise gestures: Even small, unexpected acts—like a note of appreciation with a coffee shop voucher—can leave a lasting positive impression. Customization makes a difference Personalized gifts stand out because they show thoughtfulness. For example, a hand-written birthday card paired with a small, customized gift adds a personal touch that goes beyond standard gestures. When planning resident gifts, draw inspiration from real-life examples, ensuring they’re meaningful and relevant to the occasion. Thoughtful customization doesn’t have to be complicated, but it does make a lasting impact. Lease renewal gifts Thank long-term residents for renewing their lease—consider a gas or grocery card to show your gratitude for having such a loyal resident. You can also gift an affordable experience, like a movie popcorn basket for your residents to enjoy a nice night in, or an inexpensive goodie bag that you hang on their door. You can also offer small improvements to spruce up the unit now that it’s been lived in for a while. We’ve seen property managers offer carpet cleaning or updates to light fixtures, which would normally happen during turnover, but instead your current residents get to enjoy them! Plus, it keeps the property in good condition, which keeps your investors happy, too. Christmas and holiday gifts for residents The holiday season is an excellent opportunity for property managers to show appreciation to their residents. Thoughtful gifts not only create goodwill but also help strengthen the relationship between property managers and residents. Here are some real-life examples of successful holiday gift ideas: Delightful pies for Thanksgiving Tiffany Izenour, Principal Broker & Owner of Freedom Property Management, shared the tasty treat she gifts residents every year. In the Facebook Group, #PMHealth Group, she wrote, "Got my steps and lifting in today during our annual pie event. 🥧75 enormous pies gifted to clients, tenants, and community partners today. Managed to avoid the temptation of digging into a pie thanks to chatty clients 😁." What a great example of spreading holiday cheer with seasonal pies that residents can enjoy with loved ones during Thanksgiving. (Plus, it’s one less pie for residents to prepare on one of the biggest cooking holidays of the year.) Grocery gift card giveaway Dan McKee, President of Keyrenter Knoxville Property Management, understands the financial stressors residents experience around major holidays like Thanksgiving and Christmas. That’s why for Thanksgiving, residents were able to enter a giveaway for a $100 grocery gift card, just by liking the company’s Facebook page. For Christmas, property owners can opt-in to have Keyrenter Knoxville Property Management send residents $50 gift cards to local restaurants in a holiday greeting card - another win-win for residents. The 12 days of giving Brad Randall, Owner and Operator of Welch Randall Real Estate and Property Management, noticed that he had the highest delinquency rate for rent in the month of December. He decided to incentivize residents by implementing a “12 days of Welch Randall giving” initiative. Residents who paid rent on time during the month of December were entered into daily drawings for gifts such as cash, grills, and event tickets, some sponsored by vendors. Residents could also earn additional entries by leaving a Google review. Not only did this support residents and offer them incentives for paying rent on time, but it also fostered a stronger relationship between residents and property managers. When things go wrong Whether it’s a miscommunication with their management company, an unpreventable maintenance issue, or just bad luck, every resident will run into a tough situation eventually. Being there to support your resident in times of need can solidify trust and help improve your relationship. Consider using tough times as opportunities to really make your residents’ days in unexpected ways. Whether you’re making up for your own mistake, or just trying to cheer them up and help them over a hurdle, small gestures can go a long way. Bouncing back Melissa Gillispie of JWB Real Estate Capital prides herself on going above and beyond. Her secret is simple: listen. “Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Reach out early and often,” she said. “Identify the real roadblock or concern, and do everything in your power to listen and solve it.” In one instance, she had a resident who had a large trampoline in their backyard, but the property owner’s homeowners insurance demanded that it be removed. In response, Melissa and her team got creative. “We bought the resident their very own bounce house!” Budget for resident gifts When planning gifts for your residents, it’s important to balance thoughtfulness with budget considerations. Ultimately, your individual gift budget will also depend on your company’s finances. Make sure you’re maximizing margins so that you can reward the residents who help drive your business forward. Operating on a tight budget may seem intimidating, it’s often enough to cover small but meaningful gestures, such as personalized notes, small gift cards, or eco-friendly items. We also suggest that you speak with your tax advisor or local tax attorney to review any applicable benefits or limitations for gifts with monetary value. Final thoughts Showing appreciation through thoughtful gifts can make a significant impact on resident satisfaction and retention. By adopting a Resident Benefits Package, property managers can build stronger relationships and stand out as a property management company that truly values their residents. To take your resident experience to the next level, explore Second Nature’s comprehensive resident rewards program. Resident Benefits Packages help you create a seamless, rewarding experience for your residents while supporting your property management business.

December 16, 2024

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