Triple Win Property Management Blog

How Property Managers Can Automate Rent Collection

Automated rent collection is a system that enables property managers to collect rent payments from residents via electronic means such as online portals, direct debit, ACH, direct deposit bank transfers, or debit card/credit card payments. This simplifies the rent collection process, saves time, and minimizes errors associated with manual processes and payment reminders. It also provides residents with a convenient and secure way to make payments, leading to increased satisfaction and retention rates. In this article, we’ll talk about some of the best online rent payment systems, the best strategies to automate rent collection, and how to implement these strategies. We’ve got insights from Wolfgang Croskey, a leader in the industry. Today's Expert: Wolfgang Croskey, Founder & President of How’s My Rental What is automated rent collection? Automated rent collection leverages single-family property management software to streamline the process of receiving rent payments from residents. While traditionally, rent collection might involve paper checks or manual online payments, automated rent collection automates these steps, thus alleviating the issue of late rent payments. Residents can schedule recurring payments or make one-time payments (or partial payments) electronically through the software, allowing the software to automatically debit the designated bank account on the due date, eliminating the need for manual processing and the potential for missed payments or late fees. Best automated rent collection apps for property managers 1. SecondNature At Second Nature, our focus is on improving the lives of both residents and property managers. That's why we've designed digital solutions aimed at adding value and alleviating rent collection challenges for all parties involved. With our Resident Benefits Package, we offer a range of features designed to encourage timely rental payments and assist residents in bolstering their credit, safeguarding their identity, and maintaining financial stability. Learn more now 2. Buildium Buildium is a property management platform that provides a range of features, including online rent payments, payment processing, tenant communication, maintenance tracking, and financial reporting. While Buildium does not publicly disclose specific pricing information, its website indicates pricing is based on the number of units you manage. Learn more about Buildium 3. AppFolio AppFolio is a cloud-based property management software that offers online rent collection, security deposit, tenant screening, property inspections, and accounting/bookkeeping software features. AppFolio’s pricing structure is tiered, with the specific cost depending on the number of units you manage and the features you require. Learn more about AppFolio 4. Avail Avail is a cloud-based rent collection tool that allows PMs to automate rent, send rent reminders, track payments, and manage rental properties. The pricing for Avail depends on the number of units you manage, with increased discounts for larger portfolios. Learn more about Avail 5. Rentec Direct Rentec Direct is a software platform for property managers that offers features such as online rent payments, tenant screening, lease tracking, and maintenance management. Rentex Direct pricing scales with the number of units you manage, with economies of scale for larger portfolios. Learn more about Rentec Direct 6. Latchel Latchel is a cloud-based solution designed specifically for single-family home and small portfolio landlords. It offers functionality that automates and centralizes various aspects of single-family property management, including resident support, maintenance management, online rent collection, video-based troubleshooting, and a resident portal. Specific pricing details are available via a consultative process. Learn more about Latchel 7. DoorLoop DoorLoop is a cloud-based solution designed to cater to a variety of property types, including single-family homes and multi-tenant buildings. It offers tools to streamline property management tasks, including marketing and leasing units, screening and managing tenants, processing rent payments and managing leases, tracking maintenance requests and coordinating repairs, and generating financial reports for property owners. Pricing is tiered based on the features you require. Learn more about DoorLoop 8. YardiBreeze Yardi Breeze is a cloud-based solution offered by Yardi, a venerable company in the real estate and property management industry. The software offers features designed to streamline tasks typically encountered by landlords or property managers, including marketing and leasing vacant properties, screening and managing residents, processing rent payments and rental applications electronically, tracking maintenance requests and repairs, and generating financial reports for owners and real estate investors. For quotes, contact Yardi Breeze directly. Learn more about YardiBreeze 9. RentRedi RentRedi is a mobile-first property management software that allows landlords to collect rent payments online, screen tenants, and manage maintenance requests through a user-friendly app. RentRedi’s pricing structure is subscription-based and ranges from $12/month (paid annually) to 29.95/month (pay-as-you-go). Learn more about RentRedi Benefits of Automated Online Rent Collection Rent collection software offers a variety of benefits that are specific to SFR property management companies. After all, the impact of reducing workload and saving time adds up, especially when you need to devote so much of your energy to operations across a dispersed area. Here's a closer look at the advantages: Reduced workload and time savings Automating rent collection eliminates the need to chase individual payments, freeing up time for tasks that can be time-consuming, such as inspections or maintenance coordination. Fewer late payments With on-time automated payments, rental income (and therefore cash flow) becomes more predictable. This allows for better financial planning and budgeting for property maintenance, repairs, or unexpected expenses. Simplified accounting and record-keeping For property managers, autopay eliminates the need for manual rent collection processes and reduces the risk of late notifications or missed payments. Rent collection features also help streamline accounting processes by providing accurate and up-to-date records of rent payments. And of course, recurring payments can be set up to occur automatically, saving property managers time and reducing the need for follow-up with tenants. No more existential dread around rent time! Reduced risk of errors Manual processing of checks or cash can be error-prone. Automatic rent collection minimizes the risk of human error in recording payments, ensuring accurate financial records and avoiding potential miscommunications or disputes. Improved security Automated rent collection platforms typically use secure payment processing systems to safeguard sensitive financial information. This provides peace of mind for property managers and residents alike, as their payment data is protected from unauthorized access or fraud. Potential for scalability Even for smaller companies managing a few properties, automated rent collection lays a foundation for a more efficient system. As your portfolio grows, the automation remains in place, simplifying rent collection regardless of the number of properties you manage. In fact, Wolfgang Croskey says automation can level the playing field. “Technology is the great equalizer,” he says. “It allows us to compete with these nationwide companies and to provide not only the same level of service but to be able to pivot and adapt much quicker than those larger companies can. So for me, you're a smaller company, AI and Automation Tech is that equalizer that's going to allow you to shine just as well as these larger companies.” Related: 12 Tasks for Property Management Automation Enhanced resident communication and satisfaction For residents, recurring rent payments provide a convenient and hassle-free way to pay rent on time every month. It eliminates the need to remember to make a payment, reducing the risk of late fees and improving their credit score by building a consistent payment history. Property managers who are reporting rent payments to credit bureaus (such as TransUnion) as part of a Resident Benefits Package can use this as a massive incentive for residents to automate payments. Additionally, tenants can set up recurring payment options using their preferred payment method, making it easy and flexible for them to manage their finances. The other component of improving the resident experience is offering mobile app-based automatic payment methods. That’s why allowing residents to pay rent with Apple Pay or Google Pay is gaining popularity across the property management industry. Zelle is another payment service that can help with ACH payments without transaction fees. PayPal and Venmo are other mobile payment platforms. With these mobile payment apps, renters can pay their rent using their mobile devices. It’s a win for residents because they can easily make automatic payments on the go using their smartphones without the need for a physical wallet or a business day visit to a bank or property management office. Additionally, these mobile payment methods are highly secure, as they use biometric authentication to ensure the transaction is authorized by the account owner, minimizing the risk of fraud and identity theft. A note on credit card payments It’s important to note that some property management companies have experienced the rare but profoundly irritating (and costly) phenomenon of chargeback claims in relation to rental payments made by credit card. If you’re in the market for software that supports automated rent payments, this is an important issue that you should raise with the sales representative. Use Second Nature to Automate Rent Collection At Second Nature, we’ve built digital products around creating ease for residents and property managers – adding value and reducing headaches for everyone involved. Our Resident Benefits Package provides services that incentivize on-time rent payments and support residents in building credit, protecting their identity, and remaining financially sound. Rent doesn’t have to be stressful for everyone involved. In fact, using the right tools, rent collection can become as easy as – you guessed it – Second Nature. (We had to.)

May 3, 2023

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How to Structure a Property Management Company

The property management industry is full of entrepreneurs – self-reliant self-starters who got in the game as a side hustle and grew their property management company to be a full-time occupation. But, of course, with growth comes the need to hire a team. And the key to successful team-building? An optimized property management org chart. An organizational chart is a visual representation of a company's structure, showing the roles and relationships between different positions within the organization. Property management companies are no exception, and getting your property management company structure right from the beginning has a massive impact on the quality of experience of your investors, employees, and residents. Example of a property management org chart with 500 rental units In this article, we’re exploring the benefits of having a clear and concise property management company org chart with the help of Kelli Segretto, Founder of K Segretto Consulting. Kelli has helped with the launch of hundreds of property management companies and has tons of insight into how a PMC should be structured for success. Key Learning Objectives: What does an ideal property management organizational chart look like? How should you structure your property management company? What’s the difference between an org chart for a PMC vs. a real estate agency? How can you use your org chart to align employee roles? Who should you hire first? What’s the most important role in a property management company? What are the most common mistakes made in structuring a PMC? Meet the Expert: Kelli Segretto, Founder of K Segretto Consulting Kelli is a sought-after speaker and consultant with over 20 years of experience in the property management industry. Kelli has expertise in single-family, multifamily, and LIHTC property management, having coached across all 50 states and six countries. She has helped launch hundreds of new property management businesses and has developed in-depth knowledge of the types of organizational structures that work best in property management. Example Property Management Org Chart We asked Segretto about the primary areas of responsibility – or key roles – that that are essential to a successful property management business. She outlined six key focus areas regardless of how you end up structuring the company: Operations Management Property Management Leasing Maintenance Bookkeeping Sales According to Segretto: “Different structures will dictate the position titles and responsibilities within these roles, but these are the foundational pillars each property management business needs.” To get started with the cascading structure of the org chart, Segretto explains that in a full property management company structure, you typically see three-deep leadership: owner/broker, manager, and coordinator, each with their own focus area from the list above. “Even if your business is small, it is important to have an organization chart to plan for your future growth,” Segretto says. Here’s how it might break down in your PMC. Tier 1: Owner/Broker The Owner/Broker is the executive leadership or highest role and tier in the org chart. “In most states, you cannot operate a property management company without a licensed broker,” Segretto says. “The requirements to obtain your principal broker license varies by state, but most require a combination of time as a real estate sales agent, experience points, and education.” Of course, the owner of the PMC isn’t always the broker, depending on various circumstances or state laws. “A person with a broker’s license can sign on to be the broker of record or broker in charge for a property management business,” Segretto explains. “We see this when the business owner cannot yet meet the qualifications for their broker license, for example, in franchise property management companies and other organizations that are coming into property management from outside the industry.” Anyone newer to the industry should take note, says Segretto, “This arrangement can be tricky in some states, like New Jersey where you must operate under the same roof as your broker, or Ohio where any brokerages active under a broker must have the same core company name. There are many state and local regulations you have to be aware of when opening a property management company. My recommendation is always to reach out to your local department of real estate for guidance and information or work with a consultant that specializes in property management business startup.” Related: Property Management Startup Checklist Tier 2: Management (Operations, Sales, Finance, Maintenance, and Leasing) Reporting directly to the owner (who is usually also the broker) is a set of management roles. Depending on the size of your company, this may be one or many individuals, depending on the expertise and skills gaps of the owner. Your management level typically includes roles for Operations, Sales, Finance, Maintenance, and/or Leasing. These individuals have a fairly high level of responsibility overseeing their area and any direct reports under them. Related: Best Property Management Maintenance Software Tier 3: Coordinators (Property Management, Maintenance, Leasing, and Bookkeeping) Reporting to the management roles are employees at a coordinator level. You may hire coordinators that focus on property management, maintenance, leasing, and bookkeeping. These roles will fall under the purview of the manager above them. Tier 4: Assistants In large organizations, you may also see assistant roles that support the coordinator or management roles. For each of these tiers of responsibility, Segretto says, “the titles and function will vary depending on the type of structure you are operating under, but the core organizational buckets remain the same. In a small property management business, it isn’t uncommon for the first roles to be 1099. This helps keep costs down for the property management company as long as they are not treating their 1099 partners like employees. For example, scheduling their time, requiring uniforms, etc. As a property management business grows and stabilizes, most of the roles in the business become employees.” (Segretto provides her clients with several org chart templates that walk through the different roles and responsibilities in each configuration.) Types of Property Management Company Structures “Each property management business is unique,” Segretto says. “Some businesses service savvy investor clients, some focus on small multifamily, some are only high-end luxury while others have found their niche in Class C rentals. This means that the best property management business structure can vary for your organization.” Segretto explains that the ideal organizational structure for your business is the one that provides the best user experience for your clients, assigns ownership to the essential tasks, and keeps everyone on the same page. “Too often, I see businesses that have everyone trying to do everything, which ultimately creates chaos and confusion,” Segretto says. “Phone calls don’t get answered, emails get lost, and everyone expects someone else has ‘got it.’” Instead of this chaotic approach, Segretto recommends choosing from three common property management company structures: Portfolio Management, Departmentalized, and Process Driven. “Determining which one is best for your office is dependent on your location, your staffing capabilities, your goals, and your budget,” Segretto says. Here’s how they each work Portfolio Management Structure The portfolio management structure typically involves assigning a dedicated property manager to oversee a set of client accounts. That PM is responsible for all aspects of the portfolio, including property maintenance, resident relations, leasing and marketing, financial management, and other activities related to the management of the real estate assets. The manager is typically supported by a team of administrative and support staff, including accounting and financial specialists, leasing agents, property managers, project management specialists, maintenance technicians, and other professionals who work together to ensure the successful management of the real estate assets. Overall, a portfolio management structure gives clients a premium experience with one point of contact and allows for nimble decision-making. On the downside, portfolio management requires employees to have strong cross-skills, opens the PMC up to risk if that property manager leaves or goes on vacation, and makes it difficult to create operational consistency between portfolios. Related: Best Property Management Podcasts Departmentalized Structure Department-style management organizes the PMC into separate functional categories, grouping employees and teams based on their roles and responsibilities. You might see departments such as accounting and finance, leasing and marketing, property maintenance, resident relations, and other functional areas. Each department is headed by a department manager who would oversee the day-to-day operations and staff within that department. The benefit of a departmental structure is specialization over generalization. Employees are experts in their field and can focus on improving their area’s performance. The downside is that clients and residents may have multiple points of contact, and communication may get repetitive. No single person is keeping an eye on a specific property’s overall performance. Process Driven or “Pod” Structure A pod-style management structure in PMCs is a relatively new management concept that organizes employees into small, cross-functional teams called "pods.” Each pod is responsible for managing a specific portfolio of properties or assets within the company and typically consists of a portfolio manager, a leasing agent, a maintenance technician, and an administrative staff member. The pod-style management structure is designed to bring the benefits of the portfolio and departmentalized structures together – but can also suffer from their weaknesses. Pod-style management encourages collaboration and communication among team members and gives residents and clients an excellent customer experience. The structure also allows for greater flexibility and agility, as the pods can adapt quickly to changing market conditions and resident needs. Pod-style management is ideal for a fast-paced, dynamic environment where rapid response times and a high level of customer service are essential. By working in small, self-managed teams, pod-style management can lead to greater efficiency, productivity, and innovation while also improving employee satisfaction and engagement. The downside is that the pod structure can be expensive until you fully scale up. What is the difference between the structure of a PMC and a real estate agency? We asked Segretto to explain how a PMC org chart differs from that of a real estate agency. Segretto explains: “I had a client that structured their business like a real estate office, and it worked really well for them when they were small. As they started to grow and scale the business, it became limiting. Real estate offices have a very simple structure. Typically you have an owner/broker, and in larger offices, back office services like marketing, bookkeeping, office assistants, and maybe a transaction department. These are support services made available to the sales agents. Sales agents are independent business owners, often with their own LLCs. They are not employees of the company.” She also points out that some companies operate as both a real estate business and a property management company. “In these businesses, you may have a blend of the two org charts. You will still need all the same buckets as a property management business, but often those roles take on double duty to support the sales agents who still remain independent contractors.” FAQ: How to Use Org Chart to Align Employee Roles and Make the Right Hires So, let’s say you have an idea of the property management company structure you want and the types of roles you need. How do you actually get started? How do you make your first hires or align your current employee roles with your planned ideal structure? We asked Segretto some of the most frequently asked questions on this in the property management space. Here’s how she answered. What should I focus on in the hiring process? Segretto: Property management is an industry that can be trained, but human behavior is much harder to adjust. Pick the right personalities and drive for your team rather than the person with the most experience on paper. That doesn’t mean you should pick the person you get along with best or you think you could be friends with. It is important to identify the key personality traits that will be most beneficial in each role. Remember, your employees will be the face of your company. They will be the ones delivering on the promises you make each client. Make sure you have written job descriptions and a deep understanding of the role the person would fill. Setting proper expectations will also aid in finding the right person who will enjoy the work they are hired to do. In the interview process, ask qualifying questions and provide scenarios to see how the individual problem solves. This industry is fast-paced, multifaceted, and complex. It isn’t for everyone. Most of all, be patient. Start hiring before you need to so you don’t feel pressured to pick someone fast rather than ensuring you have the right person in the right seat. Take your time and avoid costly mistakes. Who should I hire first? Segretto: I have had the opportunity to help launch hundreds of brand-new property management businesses in my career, and one of the most common questions is, “Who should I hire first?” Initially, a property management company is typically run by a sole operator. The business owner wears all of the hats. It is beneficial for the owner to go through this phase of start-up as they learn all the ins and outs of the business and discover their strengths and weaknesses. I like to then take my clients through an exercise where we can discover the highest and best use of their skillset and time. From that exercise, you can then determine what role would be your ideal first hire. For many people, this is a business development manager to cover sales or a back office employee, like a bookkeeper. What are the key components of management structure in a PMC? The key components of management structure are customer experience ownership, work specialization, organization, coordination between departments, and continuous training. Property management is a customer service business. The structure you create should focus on the components that will foster internal communication, collaboration, and a culture of learning. What is the most important role in a property management company? Segretto: This is a tricky question! It reminds me of the grade school phrase, “There is no ‘i’ in Team.” Property management is a team sport; there is no one role that is most important or featured in the line-up. Your team will only be as strong as your weakest link, which is why it’s so important to hire talented individuals with the right personality and drive for each role. Once you have your superstar lineup, it’s crucial that you treat them well, trust them, and listen to the valuable feedback and insights they have. It’s more about having the right person in each role than it is about one role being valued higher. What are the most common mistakes you see in a PMC organization structure? Segretto: The two most common issues I see in the property management structure are: Too many points of contact for property owners and residents to keep track of. Keep it simple! Assign a point of contact to every relationship, and if that point of contact needs to shift, arrange a proper handoff. This business is built on trust, and as humans, we inherently don’t trust strangers. Lack of communication between departments. This business is built on a foundation of excellent customer service. It’s critical that you have processes in place that keep everyone in the loop. Most processes require multiple team members' effort, and when communication breaks down, the card house collapses. Final Thoughts Segretto recommends hiring a consultant to help you develop your org chart for both today and your future growth plans. A good org chart should include “job descriptions, KPIs, and personality traits for each role within your chosen structure,” Segretto says. “A consultant can take you through a process to identify your core values, goals, and action plan, which will help set a solid foundation for your business.” Learn more about property management structures, growth, marketing, and more in our Second Nature Community, or get in touch with Segretto via her website.

April 18, 2023

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Property Management Revenue: How Can Managers Increase Ancillary Revenue?

Ancillary revenue is a huge profit driver for property management companies. Today, we're looking at what ancillary revenue is, how it can give you better results, and how to get started building ancillary revenue streams. What is ancillary revenue? Ancillary revenue refers to any additional income not including rent that you derive from the properties you manage. By becoming greater service providers, PMs create opportunities for more revenue streams. There is a lot of money to be made in ancillary income in the property management industry and real estate industry. But many property managers don’t even consider the wealth of opportunities to increase profit, grow your business, and increase the satisfaction of your residents that ancillary income opportunities provide. It may seem counterintuitive to suggest that a practice exists that will simultaneously increase the amount your residents pay and increase their satisfaction with you, but if you provide the right ancillary services, and your residents find value in them, you can build a winning situation for all involved parties. How can property managers generate ancillary revenue? The best way to sustainably drive ancillary income for you and your business is through generating more value that your residents and investors want and charging for what that value is worth. Ancillary charges can apply to your investor clients and your residents. In short, property managers should figure out what’s important to their residents and clients and monetize those things. Ancillary revenue opportunities can come from programs that drive resident satisfaction, such as Resident Benefits Packages, property upgrades, pet insurance, pet rent, etc. You can also drive extra revenue through additional fees such as application fees or pet fees for new residents or for behaviors you want to discourage, such as late payment fees, early termination fees, paper lease fees, vendor screening fees, etc. Ultimately, each of these programs help to achieve what we call a “triple win.” A triple win, as described in this video, is any concept that manages to benefit the renter, you and your team of property managers, and the property owner. ‍ ‍ The importance of the triple win comes from the idea that long-term success that results in long-term profit must correlate with long-term satisfaction. Keeping all involved parties in a transaction satisfied will lead to high rates of re-signing, whereas ancillary income programs that residents don’t find value in can decrease renter satisfaction and hurt your bottom line in the long-term. Ancillary revenue stream examples in property management Let’s look at some of the most common and successful ancillary revenue examples. Ancillary programs work well for both multifamily and single-family rentals. You can break ancillary charges down into two categories: fees vs. special programs. Ancillary Fees First, there’s the ancillary fees approach. Those can include the following. Resident-Focused Security Deposit Processing Fees Leasing or Lease Amendment Fees Paper Lease Setup Fees Lease Renewal Fees Renters Insurance Late Fees Investor-Focused Inspection and Maintenance Monthly Fees Marketing Fees (social media, etc.) Insurance Risk Mitigation Fees Vendor Screening Fees Rent Protection or Eviction Fees Essentially, property managers should be sourcing income on anything they’re spending money on themselves. This ensures that you can continue to grow, add on value, and pay your employees. Ancillary fees also help encourage the kind of behavior you want from your investors and residents. You don’t want residents to pay late? Incentivize on-time payments by adding a fee for late payments. You don’t want investors requiring you to use their vendors instead of yours? Charge a small fee for vendor screening. Then you’re either getting paid for your extra time, or the investor will decide it’s not worth it, and you’re saved the extra burden on your team. Special Programs Of course, property managers can also generate additional revenue by developing programs that boost resident happiness and satisfaction. These programs can also help encourage the behavior you want, but the goal is more driven by a desire to improve the resident experience. The most popular – and effective – form of special program is the Resident Benefits Package. An RBP can include several different benefits for residents, from credit reporting to move-in concierge services to identity protection. And they’re easy to monetize for property managers. Increasing property management revenue The residential real estate market is changing. By finding new ways to generate revenue, property managers can accelerate business growth. Ancillary revenue is one of those ways, and it works by providing real value to the resident. These programs don’t necessarily have to directly create revenue, although many do, but the key is always to create value. Of course, some programs work better than others – and some attempts to drive ancillary income can actually do the opposite: drive investors away, or cause resident complaints. Let’s look at a few examples of what is and isn’t working for property managers. Ancillary revenue streams that are working Here are a few examples of the best drivers of ancillary revenue in property management. Resident Gift Programs One example of a program that creates value for the resident without charging the resident is a Christmas gift program run by the Home River Group based out of Boise, Idaho. Residents at HRG’s properties receive a gift package every holiday season that includes gift cards to local restaurants, movie theaters, bowling alleys, etc. This comes at no charge to the resident, but it does create happy renters, which leads to sustainable revenue in property management. 24/7 Maintenance Another great example is 24/7 maintenance, which is often amenitized. Professional SFR managers have web portals, apps, 24/7 hotlines as part of their operations that enable a more professional and convenient resident experience. And it leads to faster resolution. Including maintenance support in a resident benefits package helps differentiate your service. Adding value through a resident benefits package also adds a new revenue stream for a property management business. Convenience Services Convenience services are great examples of ancillary income programs that do drive immediate profit and achieve a triple win. Residents tend to realize a lot of value from convenience services, and these services have become the expectation for renters. Second Nature’s air filter delivery service, which is widely used by property managers around the country, achieves this by providing the resident with cleaner air to breathe and lower utility bills, providing the owner with the peace of mind of knowing the air filters are being changed on time, and providing you with some added ancillary revenue. A great way to identify opportunities for ancillary revenue services that achieve a triple win is by asking your residents. Just ask them. They’ll tell you what services they’re interested in and willing to pay for. This will not only help you identify key insights for your business, but it has a positive side effect of improving the relationship you have with your residents. What doesn’t work in driving ancillary revenue As you can probably infer, programs that don’t work will be the ones that don’t achieve the aforementioned triple win. Property managers are starting to realize the value of the long-term game. The extra effort required to make sure residents feel respected and not leveraged specifically for profit creates a lot of value for the PM as it keeps renewal rates high. Here’s the type of behavior PMs should avoid when designing an ancillary revenue strategy. Cheap Money Grabs When your residents feel like they're just a warm body that pays monthly rent, that's really going to sour the relationship that you need to be focused on here. Truthfully, ancillary income can be created very easily, but cheap money grabs that make residents feel used are not going to be sustainable, and sustainable is the key word here. Not Understanding What Residents Value If the resident doesn’t see value, your program’s long-term prospects are not going to be good. Understanding where a resident will find value also requires you to understand how a resident perceives value. There is a saying in marketing that perception is reality, and whether or not you realize it, you're perpetually marketing your properties to residents. How they perceive their experience is going to affect how they feel when it's time to renew. Mixed Messaging The best ancillary benefit package in the world is going to be perceived negatively if the messaging around it uses words with negative connotations. Avoiding words like “fees” can help prevent a negative perception of a service you as the property manager are providing. A perceived lack of value for a required program contributes to a resident that feels disrespected, and a perceived lack of value for an optional program results in a program nobody uses. Either way, no benefit to the resident means no benefit to you. ‍ In the end, the best way to drive ancillary income is to find programs and services that add value for your residents and clients, and generate profit for your business.

April 10, 2023

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AI Property Management: Tools, Benefits, and Challenges for the Industry

Artificial intelligence (AI) property management is one of the buzziest terms in the industry right now. Today, with a special guest Wolfgang Croskey, we’ll break down its practical applications, how it can help property managers, and how it could hurt them. Meet the Expert: Wolfgang Croskey, President of The Perfect Tenant Key Learning Objectives: How to use AI in property management Best AI property management software Benefits of using AI in property management What you shouldn’t automate with AI in property management Challenges of AI in property management Future of AI in property management What is AI in Property Management? AI property management is a business strategy for real estate or property management companies to simplify and improve their processes through software-powered property management automation. It streamlines operations by automating tasks like resident screening, maintenance scheduling, and rent collection, enhancing efficiency and decision-making. In its current state, artificial intelligence best serves property managers by supporting and expediting administrative tasks. It’s essentially calendar clearing, in that it gives property managers more time to focus on their business. In fact, Croskey has implemented AI solutions into his business and noted how much extra free time his property managers have to be property managers. Croskey says, “Now, with the time we have, our property managers call an owner every day just saying, ‘Hey, how’s it going?’” Croskey’s team is able to devote more time to elements of a great resident and investor experience. It’s ironic to think that AI is helping you forge stronger relationships with clients, but it’s true. With more time to devote to opening lines of communication and being proactive in doing so, PMs can build that experience that’s the primary differentiator in modern property management. That’s what it means to work on the business. “Can AI replace a property manager? No. Because at the end of the day, what is a property manager hired for? To provide solutions for crazy problems. And that's what we do. But if your whole day is filled with all this admin work, how are you going to have the energy and time to solve crazy problems? Use these tools to unload as much admin stuff as possible, so you can really focus on the property manager’s true value proposition, which is solving crazy problems and helping owners make money.” The bottom line: AI has enormous potential to help save time if used correctly. How to Use AI in Property Management So, how do you actually use these programs to cure your team of their grunt work pains? Let’s look at some of the top business areas and use cases for AI property management. AI for Tenant Screening AI tools can streamline the screening of potential tenants by automating background checks, credit evaluations, and rental history analysis. Tools like TenantCloud analyze applicant data to predict lease default risk, ensuring property managers select reliable tenants more efficiently. AI for Reducing Maintenance Costs AI can predict and prevent maintenance issues by analyzing data from Internet of Things (IoT) devices and past maintenance records. Tools like Building Engines use AI to schedule predictive maintenance, reduce downtime, and lower repair costs by addressing issues before they become costly problems. AI for Generating Listing Descriptions With the rise of natural language processing (NLP) tools like ChatGPT and Jasper, creating unique marketing collateral has never been easier. These tools can generate compelling property descriptions quickly, allowing property managers to focus on other tasks. Copy.ai also assists in crafting listings and marketing content, saving significant time and effort. AI for Automating Lead Generation AI-driven platforms like Manychat and HubSpot can automate lead generation by engaging potential clients through AI-generated text and chatbots. These tools help capture and nurture leads, ensuring that no opportunity is missed. “Maybe once a year, take your templates, throw them into one of these AI tools, and say, ‘Hey, can you rewrite this?’ You’re just kind of freshening up,” Croskey says. “You could ask it to rewrite something with a more friendly tone or add some comedy to it or different things. And so now, each year, the point of the message is the same, but you're kind of making it new and exciting.” AI for Property Analysis and Search AI tools such as Keyway's keypilot and Saleswise AI provide in-depth property analysis by aggregating and analyzing market data, investment potential, and neighborhood insights. These tools help property managers make data-informed decisions on property acquisitions and market trends. AI for Fraud Detection and Compliance Monitoring AI systems like AppFolio can detect fraudulent activities and ensure compliance with regulations by monitoring transactions and resident activities. These tools use machine learning (ML) algorithms to flag unusual patterns and potential compliance issues, safeguarding property managers against legal risks. AI for Leasing AI assistants such as EliseAI automate leasing processes by answering prospective residents’ questions in real-time and scheduling tours. This enhances customer service and increases the likelihood of lease conversions by providing timely and accurate information. AI for Accounting AI-driven accounting tools such as Buildium automate financial tasks like rent collection, invoice processing, and financial reporting. These tools ensure accuracy, reduce manual errors, and provide real-time financial insights, improving overall financial management. AI for Scheduling Maintenance Requests and Showings Tools like Reclaim.ai offer smart scheduling solutions for maintenance requests and property showings. These AI tools prioritize tasks based on urgency and availability, optimizing time management, and ensuring timely responses to resident needs. “The biggest problem with any basic scheduling app is the concept of priority, right?” says Croskey. “Apps without AI integrations simply look at free and busy times. For example: ‘Oh, this person wants 30 minutes. Let me find the next open spot for 30 minutes and plug them in there.’ But let's say you wanted an hour with me. If I didn't manually intervene, you probably wouldn't be able to get the hour for like two weeks because finding an hour-long spot is not going to happen. But I want to give you priority, so I had to override my account and say you know what, let's do 8 a.m..” AI for Marketing AI tools are revolutionizing marketing efforts for property managers. ChatGPT and Jasper can create blog content, social media posts, and email campaigns, while Synthesia helps produce high-quality marketing videos with AI-generated avatars. Evolv AI enhances digital experiences by identifying drop-off points and improving the renter's journey. “If you are still wasting your time writing creative property descriptions, you just need to stop,” says Croskey. “Nobody reads them anyway. I’ll buy you lunch if you actually leased property because someone said, ‘You know what? That marketing description was phenomenal. That’s why I want to lease this house.’ Nobody has ever said that so why would you spend a lot of time on it?” Best AI Property Management Software You Should Try Croskey has used several AI platforms to help with administrative and communications work. Here are some of his recommendations: ChatGPT and Jasper: For content creation and marketing collateral. These tools can generate high-quality written content quickly, enabling property managers to maintain a strong online presence with minimal effort. Grammarly: To maintain consistent and effective communication tones across various platforms. Grammarly ensures all written communication is polished and professional, helping property managers avoid misunderstandings and maintain a positive brand image. Note: There’s a free version, as well as a handy Chrome extension. Reclaim.ai: For smart scheduling based on priorities. Reclaim.ai optimizes your calendar by automatically adjusting meeting times and task schedules to prioritize important activities, ensuring that critical tasks are never missed. Keypilot from Keyway: For property research, investment analysis, and contract drafting. KeyPilot leverages AI to quickly analyze vast amounts of data, providing actionable insights that help property managers make informed investment decisions, and draft precise contracts. EliseAI: To automate resident communications and improve customer service. EliseAI enhances resident interactions by providing instant responses to inquiries and efficiently managing follow-ups, which improves resident satisfaction and operational efficiency. These tools collectively enhance various aspects of property management, from resident interactions and maintenance scheduling to marketing and financial management, making operations less time-consuming and more effective. Benefits of Using AI in Property Management Automating Routine Tasks AI algorithms can automate repetitive and time-consuming tasks such as rent collection, invoice processing, and scheduling, freeing up time for property managers to focus on more strategic activities for their property management company. Enhancing Resident Communication and Satisfaction AI-driven platforms provide real-time responses to resident inquiries, automate follow-up communications, and schedule property tours, significantly improving residents’ experience and satisfaction. Reducing Operational Costs AI helps reduce operational costs by optimizing resource allocation and predicting maintenance needs, performing predictive maintenance to reduce downtime and costly emergency repairs. Generating Accurate Financial Reports AI-powered tools can automate financial reporting, ensuring accuracy and compliance while providing real-time insights into financial performance. Predicting Maintenance Issues AI analyzes data from IoT devices and maintenance records to predict and address potential maintenance issues before they become major problems, saving time and money and reducing stress. Improving Marketing Strategies AI assists in creating engaging marketing content and optimizes digital experiences to enhance lead generation and conversion rates. Screening Residents More Effectively AI-based resident screening automates background checks, credit evaluations, and rental history analysis, helping property managers select reliable residents more efficiently. What You Shouldn’t Automate with AI in Property Management While AI can solve various issues and make work better, there are still functions that are better accomplished by a human being. Indeed, if used incorrectly, AI can do more harm than good. Here are two common pitfalls of over-dependence on AI. Creating Business Policies and Procedures Croskey says, “The reality is that if you don’t have your policies and your procedures, there is no tool on Earth that is going to save your bacon… Look at McDonald’s. At one point, somebody had to roll up their sleeves and make the process of how to build the Big Mac. It probably took quite a while to do that, but now that it’s done, they haven’t changed the Big Mac for at least 40 years." Property management AI can help you repeat your processes, but can’t create them for you, and it can streamline them, but not optimize them for success. Overreliance on technology is kind of an innate vulnerability with tools so robust. Croskey is quick to clarify that such a mistake can lead to notification overload, where you can’t keep up with everything that all these tech tools are delivering to you. You still have to be aware of what’s going on in your business. Training Personnel The veteran PM also notes that, just like with any new tech, proper training for the team is of critical importance. “Really do your team justice by providing them training, providing them opportunities, not just saying, ‘Okay, starting tomorrow, we're using Jasper, have a nice day.’” For training, Croskey recommends the non-AI tech tool, Loom. You can create screen recordings and build a library of training materials for your team. “Loom does provide transcripts of the videos, too,” Croskey says. “You could take those transcripts and say, ‘Hey, ChatGPT, Could you write me a summary of this?’ And it will do it. So now you can put that summary in your email.” Challenges of AI in Property Management Data Privacy Implementing AI in property management requires handling large amounts of highly sensitive resident data, raising concerns about data privacy. Ensuring compliance with data protection regulations and maintaining resident trust are significant challenges. Security AI systems can be vulnerable to cyberattacks, posing a risk to the security of resident information and property management operations. Robust cybersecurity measures and regular updates are necessary to protect against potential threats. Cost The initial investment in AI technology can be high, including costs for software, hardware, and training. Smaller property management companies could find it challenging to justify and afford these expenses. Complexity AI systems can be complex to implement and integrate with existing property management processes. The learning curve for property managers and staff can be steep, requiring significant time and resources for training and adaptation, and checking in to make sure these processes are integrated properly. Lack of Human Touch While AI can automate many tasks, it lacks the personal touch that human interactions provide. Maintaining a balance between automation and personalized service is crucial to ensuring resident satisfaction and effective property management. Future of AI in Property Management As of now, the strategies above outline how Croskey and other PMs are finding value in artificial intelligence. AI will continue to evolve, and the technology is going to build more advancements for PMs in the future, especially with integrations with property management software. “Right now, all the AI is around language because I think it’s probably easier,” Croskey says. “I think the next step is going to be the math and numbers side, being able to look at your numbers, your portfolio, your financials, and start making recommendations from that.” Croskey predicts that AI could aid in ROI analysis and decision-making, essentially doing analytics of data points associated with specific properties and identifying trends and associations within your portfolio that can help you increase the profitability of your doors. The last place you’ll see AI reach, according to Croskey, is the maintenance realm. “There's a reason why nobody has really fully nailed down maintenance,” he says. “There are just so many variables and one-off things that it's hard to get a machine to learn that. For example, work orders come in, and the tenant says, ‘Oh, my toilet is leaking.’ Well, is it leaking from the floor? Is it leaking underneath? Is it just running? So there are three variables right there. Is it a low-flow toilet? Is it not a low-flow toilet? There are variables there. There are just all these things that can be going on that make maintenance hard. So I think that maintenance is going to be later in life.” Final Thoughts AI property management tools are nothing to be afraid of and can be a massive support to streamlining business processes, workflows, and day-to-day operations. Many leaders in property management are already leveraging AI apps and products to make their work better. The true benefit of AI is that it can automate busy work and repetitive tasks – freeing you up to be strategic, focus on relationships, and build better resident experiences. AI tools help PMCs keep up and compete with commoditization, as well. Follow us on LinkedIn, Twitter, or Facebook to stay up to date on these AI conversations. We’ll keep the conversation going and continue to deliver the best insights from experts across the industry. ‍ Hear more from Wolfgang Croskey and other PMs who have used AI on the Triple Win Property Management podcast.

April 10, 2023

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Property Management Referral Program: Create, Promote & Track Success

A study by McKinsey found that the main factor behind up to half of purchasing decisions is word of mouth. A good referral can set up your property management company for the long term. A bad referral can lead to stress, late nights, and overwork. So how do you nail a good referral program? We sat down with an expert to get some answers. Jim Roman is the Director of Results at Business Owners Institute, LLC, and a speaker and coach well-known in the property management industry. Jim helped us talk through the best practices for getting referrals, how to build a (legal) referral program, and how to follow through for success. Key Learning Objectives: What you need for successful property management referrals How to optimize the referral process How to promote referrals How to track your success How to maintain and nurture your referral relationships Meet the Expert: Jim Roman, Director of Results at Business Owners Institute Jim Roman founded Business Owners Institute 18 years ago to help business owners and their teams make more money, have more time, and – most importantly – have a life beyond their business. He coaches leaders from many industries and has a strong client base in property management. From a course called “How to Double Your Income in 90 Days,” his work has grown into a nationwide coaching and consulting business. What’s needed for a successful property management referral program A property management referral program is a marketing strategy that incentivizes your current clients to refer new clients to your PMC and grow your doors. Referral marketing is one of the best ways to grow a quality client list in any business. But in the property management business – where relationships and word of mouth still reign supreme – referral marketing is an essential strategy. A relationship-based approach Roman urges property managers to keep local laws and regulations in mind when discussing a referral “program” rather than casual referral strategies: “A referral program would be that you get compensated for referrals,” Roman says. “You have to be careful in the property management industry when you do this kind of stuff. The laws are different throughout every state. For example, in Virginia, you’re required by law to give two to three people when asked about a realtor or realtor referral program.” Roman urges that a relationship-based, win-win approach – over a referral fee – is far more effective for long-term outcomes. He has coached hundreds of companies on how to build a successful, relationship-based referral strategy. Defined target audience A defined target audience is critical to the success of your relationship-based referral marketing. Roman outlines three key audiences for getting referrals: 1. Current clients According to Roman, the average investor has two to three property management relationships with many rental properties. You may not even know about those other properties if you don’t have a strong relationship with their investor. “One of the things I teach my clients to do is what I call an Owner Outreach Program,” Roman says. “Reach out to the property owner, check in on them and how they're doing. Tell them ‘We're not asking for money and there's nothing wrong with your property. I just wanted to check in and find out where your goals are for this year.’ Next thing you know, they go, ‘Well, it's funny you should call. I have a couple of properties I want to give to you.’” 2. Past clients The next strategy for your target audience is to check in with past clients. “You might check in with them and see how they're doing,” Roman says. “They might say, ‘Oh, it's funny you should call me. I'm not happy with my property manager. I should never have left you.’” He adds that if they are happy with their current arrangement, they likely won’t pick up the phone when you call anyway – “so you have nothing to lose.” 3. Strategic partners Roman says, “Think about people who have databases that you would want where partnering with them could be very profitable.” The number one source of business for property managers is real estate agents. After that, Roman lists CPAs, investment advisors, and estate planning attorneys. "If someone passes away," Roman says, "and someone else inherits some properties, who's going to know that? The CPA, the investment advisor, or the estate planning attorney.” Achievable goals for referrals The next factor is to set achievable goals for your referrals. Roman advises his clients to identify between six to eight referral partners to refer clients. “It only takes three technically, but you don’t know which of the six to eight will be your three,” Roman says. “If one quits, you’re down, losing a third of your referrals.” He advises a strategy to focus on the three target audiences above – current clients, former clients, and strategic partners. “I might have three relationships in each category,” Roman says. “Not all are going to refer you. But the key is that you can answer if someone asks you for a CPA, etc. Then, eventually, those partners will start returning the favor and referring you a lot of business.” A clear referral reward system Roman says that the best rewards systems give people options. He shares an example of a referral program he promoted. “It was a March Madness referral program,” Roman says. “For the month of March, if you refer us any clients, you get a choice of one of three things: $250 credit towards coaching in the future, $100 gift card to your favorite restaurant, or $100 to your favorite retail store.” The power in that is it’s giving you options, which helps ensure you’ve hit on something that each person might want. Note: Again, remember to follow your local laws. A marketing strategy to promote your referral program According to Roman, the key to any marketing strategy is to bring awareness to the fact you are looking for referrals. “This is important,” Roman says. “Some people think you’re doing so well you don’t need it. But who doesn’t want new business?” Romans says that he sends a survey at the 90-day mark of getting a new client and asks, “How are we doing?” Then, they add the question: “What could we do to make it easier for our clients to refer us?” “One woman said, ‘I just need a flier,’” Romans says. “That was so easy!” Optimize the referral process Next, Roman walked us through the steps to optimize the referral process. He advises his clients to use the RISEE process: build Relationships, Identify opportunities, Strategize, Execute, and Evaluate. Step 1: Build Relationships (R) At this point, it should come as no surprise that the “r” is for “relationships” – the most important part of any referral plan. Roman says, “One of the questions I love to ask people is how they got into their industry and what they enjoy most about their business. You're going to find a connection and build that relationship.” He also warns that how you approach is key. “You don’t say, ‘Let’s get together to see how we can help each other out.’ You should be trying to identify what is a good referral for them. So you should say, ‘I would love to learn about how we would be able to refer you and see if it’s something we can partner on.’ It’s about them, not you.” Step 2: Identify opportunities to refer (I) That leads us to the next step: Identify opportunities to refer – both for them and for you. Roman says it’s important to get very specific here. For example, if you’re working with a realtor, don’t just go with “they’ll take anybody looking to buy a house.” For your own referrals, be clear on what property management services you’re offering. Roman says, “That's not specific enough. Is someone upsizing? Downsizing? Is it a half-million-dollar house? A million-dollar house? Another way I go about this is I'll ask them to give an example of some of the types of clients they’re working with now.” “This identifying step takes some time,” Roman adds. “The whole process should not happen in one sitting.” Step 3: Strategize on how to do it (S) Roman says the key here is to identify what has worked before. “So when I ask how I should refer someone, they always give a sales answer. They'll give you the words that they would say if they were in front of the prospect. But you're not a salesperson for them, so you can't do it that way.” Instead, says Roman, “I might say, ‘What are different ways people have referred you in the past?’ Rarely does anybody ever ask that question, but it makes the strategy part so much easier.” Step 4: Execute that action (E) This is all about holding up your side of the bargain. Once you’ve identified opportunities and built a strategy for both of you to refer to each other, you need to actually execute. “Tell them, ‘I want to commit to giving you at least one referral by this month,’” Roman says. “And that's important because usually if I really want a referral relationship, I have to give first. A lot of times, people say, ‘Okay, this was great. I'll figure out how I can help you.’ Yeah. You're not gonna help me, you're gonna forget about me.” Instead, commit yourself to a goal and timeline so your partner knows you’re serious. Roman suggests a script like: “Okay, I’m looking to refer you in the month of April, and I'm going to work on getting you one referral. Is that okay with you?’” They’re going to say yes. Step 5: Evaluate how it went (E) “A lot of times there is no evaluation,” Roman says. “But the second E is the power in this whole process – debriefing, training me to know what worked. I need to learn.” “Ask ‘What would be better,’ rather than just asking, ‘Is this going okay?’” Roman recommends. Without following up, you can easily lose that referral to another relationship. Roman says he’s seen it happen time and again. Follow-up and evaluation are critical to generating more referrals. We’ll share more on evaluating your program below. How to promote a property management referral program Remember that when it comes to referrals, your state’s laws may have strict requirements on what is allowed. Keep those legal restrictions in mind. However, in terms of building referral partnerships and strategies, you can follow several paths to promoting your plan. Create a dedicated referral program landing page Again, people don’t know you need referrals unless you tell them. Create a landing page for your website that’s simple, clear, and lets people know exactly how to refer you. Use social media Reviews, likes, comments, and more on social media are one of the best ways to get word of mouth out there. (You can join Second Nature’s Facebook group of active, supportive property managers.) Send email marketing campaigns Once you’ve identified your target audience of current clients, former clients, and strategic partners, you can build email campaigns targeted specifically to each. Sign strategic partners for cross-promotion Strategic partners are any businesses that have a database that could add value to your company. As Roman outlined above, the best partners for property managers are real estate agents, CPAs, investment advisors, and estate planning attorneys. Remember: To get referrals, let people know you want referrals! Use hyperlocal advertising campaigns This is so simple but so effective. Roman says, “I always recommend going out to real estate offices on a frequent basis. Bring donuts or bagels or offer to do a real estate sales meeting and buy breakfast. Make it frequent, not just one and done.” It’s about relationships and being the first PMC that comes to mind the next time they’re asked for a property manager referral. How to track the success of a referral program This brings us back to the second “E” in RISEE – evaluation. According to Roman, this is the most overlooked but important part of the process. Here are his tips to track and build upon your referral success. Track best-converting referral sources The key here is talking to your referral partners about your definition of a good referral, a better referral, and the best referral. “In referral relationships, we don’t always talk about that,” Roman says. “What’s a good referral? What’s a bad referral?” In property management, he says, a bad referral would be someone who is not flexible with their property management team and management agreement, won’t let you make any changes, etc. By contrast, Roman says, “A great referral will be an investor who says, I don't care, just get it done. I trust you. You're the expert.’ A middling referral might be the landlord who has a personal attachment to the investment property and wants to know what's going on on a regular basis. It's profitable, but it's not like the investor is ready to say, ‘I trust you, you're the expert.’” So the key here is to track which types of referrals you get that most quickly convert into profitable clients. Then let your referral partners know exactly what that client looks like. Optimize the referral program based on your partnerships Set your success metrics for your referral program and optimize your program based on reasonable goals. “First is setting your referral goals,” Roman says. “How many referrals are you hoping to get on a monthly basis?” Decide how many referrals per month you want from each of your strategic partners. “An average door, let’s say, could be worth $2,000 of revenue a year for a property manager,” Roman says. “So if I get three realtors giving me all three referrals, that's $6,000 of revenue to the company. Plus the first month's rent if you charge something like that. So I would wanna have a referral goal and then monitor how many I'm getting from all my partners.” The goal, too, is to be sure you’re getting as many referrals as you’re getting. How to maintain and nurture referral relationships All of this is pointless, Roman says, if you aren’t nurturing those relationships. “It's important that you stay in touch with the person you’re referring and the person you’re referring to,” Roman says. “This is a team effort, not an individual effort.” Similarly, when you receive a referral, let the referring partner know how it’s going. Let them know if it was successful and how you’re nurturing that referral. They’re more likely to continue referring people to you if they know you’ll really follow through and take care of that person. Tiered reward system for best performers If you’ve built a reward system (within legal boundaries), consider creating tiers for the highest-converting referrals. Companies do this all the time with employee referrals. Set up rewards that correspond with the stages of growth or future sales with that referral. Do they convert into clients? Do they last over six months or a year or multiple years? Thank your referral partners by gifting them rewards for these milestones. This practice also helps to highlight for them what a good vs. better vs. best referral looks like for you. Understand what’s working by talking to your top-performing referral program partners Roman shares an example of how to really invest in those referral relationships. “I was working with a staffing firm where the boss was one of my top three referral partners. She told me, ‘If you can help Tracy, you'd be helping me.’ I said, ‘Consider it done.’ So I would get together with Tracy at least once a month for a cup of coffee to give her resumes. And she’d go, ‘Oh, thanks, Jim.’ And that was it. Six months into it, something told me to ask her, ‘Are these good referrals?’ She says yes, yet again. So instead, I asked, ‘Tracy, what would be a better referral for you?’ She had an answer: ‘Oh, a better referral would be orders. Resumes are great, but when companies give me an order, and they want me to place the person, that’s the best thing you could do for me.’ Within weeks, I came across a company that was looking to fill an order. I hooked them up with Tracy and followed up afterward. She told me it was the biggest deal of her career.” Roman says it’s critical to ask not just “Is this going okay?” but “How could it be better?” Again, that helps you nurture and understand their needs, and it’s likely they’ll return the favor. Property management referral program best practices Okay, let’s review all we’ve learned from Jim Roman and make one last list of best practices. Here are some best practices for property management referral programs: Offer a valuable incentive: A strong incentive can motivate your existing clients to refer new business. Roman says, “A strong incentive from my experience is doing a great job for the referrals received. If you are going to give them monetary incentive, give them options.”‍ Keep it simple: Make it easy for clients to refer others by providing them with a simple and streamlined process. This could include a referral form or a unique referral link that they can share with others. Ask for this from your partners, as well.‍ Communicate regularly: Keep your clients informed about your referral program by communicating regularly via email or newsletters. This will keep your program top of mind and increase the likelihood that clients will refer others.‍ Leverage social media: Use social media to promote your referral program and encourage clients to share it with their followers. This can help you reach a wider audience and generate more referrals.‍ Follow up quickly: When a new referral comes in, follow up with them quickly to show that you appreciate the referral and are excited to work with them. Follow up with both sides.‍ Track results: Keep track of the referrals you receive and the incentives you offer. This will help you assess the success of your program and make adjustments as needed. In the end, it’s all about building meaningful, effective partnerships that benefit everyone in the long run. Get more property management tips, insights, and expert advice in our Second Nature Community.

April 10, 2023

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Top 20 Property Management KPIs to Track

Property management KPIs (key performance indicators) are critical, quantifiable metrics that measure your PMC’s performance over time and help you evaluate the success of your objectives, projects, or team members. PM KPIs can be divided into three broad categories: Financial performance KPIs: These measure the financial performance the the property management company Operational performance KPIs: These measure the effectiveness of the property management company’s operations Property performance KPIs: These measure the performance of the rental property that is being managed A narrow focus on KPIs isn’t a magic pill for company growth or stability. By nature, KPIs are very transactional. They tend to focus on short-term goals like maximizing rent/fees/etc. at a specific point in time. While those point-in-time metrics are critical to success, they need to be contextualized with the view of maximizing customer lifetime value. Build your KPIs with two overarching questions: “How do we create experiences so good residents never want to leave?” “How do we create investor experiences that are so good that they generate organic referrals?” These questions helps you to keep a “Triple Win” mindset – that we can grow the pie for ourselves, for our residents, and for our investors. Meet the Experts: Matthew Tringali, CEO of BetterWho, and Daniel Craig, CEO of ProfitCoach Matthew and Daniel are both experts in their respective fields, helping PMCs drive greater productivity and profits. We asked Matthew and Daniel to share insights and help us review the most important things to know about property management KPIs. 1. Net Income/Profitability Net income and profitability (which is net income expressed as a percent of total income) is what you’re making after you subtract your operating expenses from your earnings. PMs also track “profit per unit,” so they can break down exactly how much each unit is making – or costing – them. Related: Property Management Profitability: Tips to Maximize Revenue PMC valuations are typically done as a multiple of revenue or a multiple of EBITDA, so tracking your revenue and net income can help you keep an eye on the value of your business as a sellable asset too. When it comes to net income, one of the leading strategies to “grow the pie” is to build opportunities for ancillary income. Ancillary income is anything outside of the core service of rent collection. Enterprising PMs have found ways to generate more value for their investors and residents by offering supportive services like a Resident Benefits Package. With that extra value comes the opportunity to charge what it’s worth and create more net income. Adding value to the resident experience eliminates preventable vacancy costs for investors, keeping them – and your business – happy. KPI Formula: Net Income(Profitability) = Earnings - Operating Expenses 2. Labor Efficiency Ratio Labor Efficiency Ratio (LER) tracks how effectively you are deploying labor in your company. It certainly plays into improving company financial performance, but it’s also about helping your team members hit their individual goals and perform better – so they and you end up more satisfied. According to Daniel Craig: “LER is the most important driver of profitability. There are only two ways to increase profitability in any business: charge more for what you do, or spend less to get the job done. LER takes both aspects into consideration. There are three key levers to improving LER – we call them the three P's of LER: Pricing (how effective you are with client pricing as defined by your Revenue Per Unit), Pay (how effective you are in compensating your team), and Productivity (how effective you are in enabling a high-performing team).” Improving LER starts with making sure you have the right people in place. Find people who embrace your core values, who believe in the triple win, and in the importance of the resident experience. Look for people with initiative who understand that proactively seeking success for others is the way to achieve success for themselves. Matthew Tringali’s secret sauce for a better LER? Global remote team members. Tringali says: “I used to tell people that utilizing global Remote Team Members (RTMs) can be your unfair advantage against your competition. Now I tell people that if you aren't properly leveraging global RTM's, then you are going to get left behind. Top property management companies have 65% of their direct labor comprised of global RTMs. Companies who have six or more global RTMs on their team have a 7% higher profit margin, on average, compared to companies not yet using RTMs. LER is a master KPI that captures right people, right seats, revenue, efficiency and payroll. These type of A-players add value, nail performance metrics, and keep residents and real estate investors around. KPI Formula: LER = Gross Profit / Direct Labor Cost Related: 10 Property Management Goals to Set for the Year (with examples) 3. Resident Acquisition Costs Some may track this as “tenant acquisition costs" or customer acquisition costs. But, again, our focus should be on the resident experience to generate value for a triple win. That’s why we call this KPI “resident acquisition costs.” Language matters! You can calculate resident acquisition costs by totaling your annual sales and marketing budget and dividing it by the total new units you acquired in the same date range. As you track this benchmark year over year, you will see how effective your Biz Dev strategies are. The objective of both the PM and investor is to lower acquisition costs while not sacrificing the quality of the resident match. One of the best ways to reduce the cost of resident acquisition is to focus on building an attractive experience – particularly one that attracts the best residents in the applicant pool. A resident benefits package or another value-add can draw in residents without much effort on your part. KPI Formula: Customer Acquisition Cost (CAC) = Total Costs of Acquiring Customers / Total Number of New Customers Acquired 4. Average Maintenance Costs Tracking average maintenance costs is tricky as an SFR property manager. The properties you manage can be far apart and vary greatly in their needs and resident requirements. Plus, repair and maintenance costs are a huge chunk of expenses for PMs and investors. One great way to build value for yourself and your investor is to take a proactive approach to maintenance. Offer services like an HVAC filter delivery subscription, comprehensive renter’s insurance, and other features of a resident benefits package. With Second Nature’s filter delivery service, property managers saw a 38% reduction in HVAC-related ticket requests. This saves hundreds of dollars in maintenance costs a year. For more advice on using your KPIs and data to drive value, check out this video from BetterWho featuring Ray Hespen of Property Meld. KPI Formula: Average Maintenance Costs = Total Maintenance Costs / Total Number of Units 5. Average Arrears Every property manager’s approach to arrears is some form of: “MINIMIZE!” Arrears – otherwise known as the unpaid debt owed by residents – can have a massive effect on your company’s cash flow. Tracking average arrears helps you see who is paying rent on time vs. who isn’t. These metrics can also include delinquency rates (paying late and how late) and eviction rates (never pays and must be removed). Here are a few examples: Offering credit building as part of an RBP – reporting on-time payments to credit bureaus can have a huge impact on residents’ credit scores. Offering rental rewards programs through an RBP – turning rent day into rewards day. Identity protection – this guards the resident’s financial security and ability to pay rent. The triple-win approach here is working to prevent delinquency and eviction before they happen. The best way to do that is to incentivize on-time payments and continue to add value to the resident. KPI Formula: Average Arrears = Total Amount of Overdue Payments / Total Number of Tenants 6. Occupancy and Vacancy Rates We all know vacant properties come at a high cost. They require upkeep and payments, but they aren’t generating any revenue. That’s why occupancy rates are one of the most important metrics that a property manager can track. Your turnover rate or average days vacant can tell you a lot about your company. A higher occupancy rate than the market average can be a huge selling point for your property management company, signaling to potential investors that you provide a better experience for residents and, therefore, have better retention. (Or it could signal you aren’t charging enough!) One of the best ways to drive that coveted retention is to offer experiences that residents will pay for and stay for. That means identifying services that offer long-term value, not just a fancy one-time “shiny toy.” An example of this in the multi-family housing space is the apartment complex that invests in a $15k pool table. Sure, it’s great for tours. But 99% of the time, it isn’t used, and a pool table is never the reason someone chooses to stay in their home. Professional PMs know better and take time to think about what’s attractive in the sales process vs. what’s going to make people stay. For example, a better benefit than the pool table might be co-working phone booths so people can more easily work from home and save money. Finding ways to add value like that in the SFR space will go a long way to boosting this metric. KPI Formula: Occupancy Rate (%) = (Number of Occupied Units / Total Number of Units) x 100 KPI Formula: Vacancy Rate (%) = (Number of Vacant Units / Total Number of Units) x 100 7. Maintenance Request Response Time It’s important for PMs to know how long it takes for maintenance requests to be solved. When we’re talking about resident expectations, a reasonable response time for maintenance is one of the most basic things residents need and want. When requests take too long, residents can quickly become unhappy with their experience and decide to leave. Tracking this metric helps you understand how well your team is doing and if you need more resources to ensure timely responses. An online maintenance request portal can help streamline this process, and an RBP with services like air filter delivery can help reduce maintenance problems in the first place. KPI Formula: Maintenance Request Response Time = Total Time Taken to Response of Requests / Total Number of Requests (this gives you an average overall) 8. Property Inventory Property inventory is the metric tracking the number of properties you’ve acquired successfully and the number of properties lost. It’s also important to consider whether you’re acquiring properties that really support your business. Is your team burning out? Do your investors fit with your property management niche? One of the best ways to get more doors and keep them is to build resident experiences that are the best on the market. By offering more value than your competitors, you can attract more of the kind of business you want. KPI Formula: Track the total # of properties at the start and end of a period. Subtract Properties Lost from Properties Acquired. 9. Average Time to Lease Tracking the average amount of time to lease helps show the cost to your investor when a property hits the market. Property managers and investors both want to reduce the average time to lease. The best way to do that? Build experiences that stand out. When someone sees your listing – beyond the property and rent price, do they see a different experience and set of benefits by renting from you as a professional PM? Are you offering benefits that residents will pay for and stay for? Other things that help with this metric: Measure traffic and conversion from listings to showings Provide attractive photos, 3D or virtual images, and clear pricing, etc. Provide and track the availability of showing times, self vs. guided showing experience, etc. Track incomplete applications, qualified %, time to approve/reply, etc. All of these impact two critical business metrics: "days on market" and "days vacant,” which are key to this KPI. KPI Formula: Average Time to Lease = Total Days on Market for All Properties / Total Number of Leased Properties (during the same period) 10. Revenue Per Unit Tracking your profit goes beyond simply adding up revenue and expense. Not all revenue is created equal. Tracking revenue per unit is a key KPI to increase profitability. Revenue per unit does just measure whether you have enough doors. It also assesses whether those doors are worth your time. What if the doors are unprofitable? According to the 2022 NARPM Financial Performance Guide, “it’s worth noting that a 10% increase in RPU can easily lead to a 100% increase in profitability.” We’ve said this before, and we’re saying it again – the most innovative way that professional property managers are generating greater revenue for themselves is through building better experiences. According to Eric Wetherington at PURE Property Management, “Revenue is all about providing a service.” You can increase your RPU by adding more value that investors and residents are willing to pay for. With the right tools, you can add that value without increasing your cost too significantly. That’s where services like an RBP and other value adds translate directly into revenue growth. KPI Formula: Revenue Per Unit = Total Revenue / Total Number of Units 11. Unit Churn Churn is one of the leading KPIs for any business. After all, what’s the point of all your sales effort if you’re losing as much (or more) business each month as you gain? According to NARPM’s Financial Performance Guide, “Cutting your churn rate in half will double your average lifetime revenue per unit.” Some churn is out of your control and subject to market changes. But for the most part, churn is a direct result of customer satisfaction. PMs should find out why customers are leaving, where they would like to see improvement, etc. And, of course, that’s where resident and investor experience comes into play. Figuring out how to make the experience so good that your best clients never feel the need to look for another manager. KPI Formula: Unit Churn Rate = (Number of Units Vacated / Total Number of Units) x 100 12. Ratio of Customer Acquisition Cost (CAC) to Lifetime Value (LTV) of a Client The Ratio of Customer Acquisition Cost (CAC) to Lifetime Value (LTV) of a Client is a crucial metric in property management and business, as it evaluates the cost-effectiveness of acquiring new clients relative to the value they bring over time. Nothing feels better than letting a bad client go. This metric can help you put numbers behind that decision and helps property management companies understand the long-term financial impact of their marketing and sales strategies. Customer Acquisition Cost (CAC) is a key metric for any business dealing with clients and customers. This is the total cost of acquiring a new client, including marketing and sales expenses. It’s calculated over a specific period, and you can use the following formula: CAC = Total Cost of Sales and Marketing / Number of New Clients Acquired. Customer Lifetime Value is another common metric in business, and it’s calculated by adding up the total revenue you expect to earn from a client throughout their relationship with your business. You can calculate it as LTV = Average Revenue Per Client x Average Client Lifespan. A lower ratio between these two indicates a more cost-effective client acquisition strategy relative to the value the clients bring. Typically, a healthy CAC to LTV ratio would be below 1, indicating that the lifetime value of the client is higher than the cost to acquire them. KPI Formula: CAC to LTV Ratio = Customer Acquisition Cost / Lifetime Value of a Client 13. Executed Renewals This is a measure of how many lease renewals have been successfully completed within a specific time frame. This will help you understand your tenant retention rates and the stability of your income. A high number of renewals is the goal since reducing turnover can help cut costs and improve income and revenue. A low number of renewals could be a signal that resident satisfaction is on the decline or issues with property conditions, market competitiveness, etc. KPI Formula: Executed Renewals = Total Number of Renewed Leases within a Given Period 14. First Call Resolution & Number of Unanswered Calls The "First Call Resolution" KPI is essential in property management as it measures the efficiency and effectiveness of your customer service team in resolving tenants' or clients' issues during the first interaction. This metric indicates the quality of service and the ability to address concerns promptly. Essentially, you’re tracking how effective your team is at resolving an issue right away – or escalating it to the right person or process. You can also track the number of unanswered calls that come to your team to know if too many are getting missed. If you track days and times of unanswered calls, you can better understand where your team may have gaps or how to communicate to residents and clients the best way to contact your team. KPI Formula: First Call Resolution Rate = (Number of Issues Resolved on First Call / Total Number of Calls) x 100 15. Average Hold Time Average Hold time is a common KPI in any customer service or customer management role – but is just as important in property management. The metric helps assess the efficiency of your team’s call handling and refers to the average length of time callers are put on hold before speaking to someone. Longer hold times, as we all have experienced ourselves, generally lead to frustration and dissatisfaction, while shorter hold times can indicate your team is more efficient with service and your residents are happier. Reducing AHT is key to boosting resident experience and operational efficiency. KPI Formula: Average Hold Time (AHT) = Total Time Callers are on Hold / Total Number of Calls 16. Number of Overdue Tasks This KPI is critical for tracking the effectiveness and productivity of your team members. It tracks how any scheduled tasks or maintenance jobs are past their due date. Prioritizing this metric helps ensure that your team is tracking tasks in a way that drives efficiency and resident satisfaction. Obviously, a high number of overdue tasks can indicate workflow bottlenecks, staffing issues, or inefficiencies in task management. If this number is increasing, it’s a red flag (or maybe a beige flag?) that you should open up the hood and evaluate your operational effectiveness. KPI Formula: Total Tasks Scheduled - Total Tasks Complete on Time (it’s key to track deadlines for tasks) 17. Average # of Units Per Client While most SFR property managers work with clients who have one or two properties at most, you may want to consider this if you have any multifamily units or clients with a uniquely high number of units. The average # of units per client can help guide your business strategies and service offerings. It can also help you identify if your business is niche-ing down in the right direction. What kind of client do you want to work with? KPI Formula: Average Numbers of Units per Client = Total Number of Units Managed / Total Number of Clients 18. Average Google Review Rating While residents in single-family homes aren’t a great referral source, their reviews of your company can go a long way toward building your reputation and bringing you to the attention of new clients. Google reviews are a great way to track how your reputation is faring in your area. It may feel like moving this average up is out of your control, but you can influence it if you don’t like the direction it’s going. First of all, the baseline is to provide excellent service and resident benefits to boost your resident satisfaction. But beyond that, you can also give perks for filling out a review, simply ask good residents if they’re willing to give you a rating, etc. KPI Formula: Total Sum of Review Ratings / Total Number of Reviews 19. Number of Tenant Delinquencies This metric tracks how many of your residents are behind on their payments. It’s crucial for assessing the financial health of your rental portfolio and the effectiveness of your rent collection processes. If the number is higher than you’d like, you should look for a few culprits. Maybe you have several residents who aren’t able to make the payments, and you need to consider being more clear in your rental requirements at the application stage or your tenant screening process. Or, maybe it’s difficult for residents to figure out how to pay, and your payment system needs an update. KPI Formula: Ensure your property management system tracks the total number of tenants with overdue rent payments 20. Client Net Promoter Score (NPS) In SFR property management, residents don’t tend to make referrals, but you know who does? Clients. Your clients can be your best promoters if you’re looking to grow. And you can track how well you’re doing in that area by keeping track of your Net Promoter Score (NPS). NPS is a widely used metric to gauge customer loyalty and satisfaction. To get it, you need to conduct a survey. Ask your clients how likely they are to recommend your property management services to others on a scale of 0-10. Categorize responses like this: Promoters (score 9-10): These are your most satisfied and loyal clients, who are likely to recommend your services. Passives (score 7-8): Satisfied but not enthusiastic clients who are unlikely to actively promote your business. Detractors (score 0-6): Unhappy clients who might not only refrain from recommending you but could potentially damage your reputation through negative word-of-mouth. Next, calculate the percentages of respondents who are promoters and detractors. Subtract the percentage of detractors from promoters: the result is your NPS. KPI Formula: NPS = (% of Promoters) - (% of Detractors) How 1,000s of Property Managers are Creating Triple Wins with Savvy KPIs Property management KPIs are critical to success in the property management industry. Tracking metrics like these eleven KPIs also set professional property managers apart from hobbyists or amateur landlords. The key to all of it is building metrics around the idea of incredible resident experiences – all aligned in such a way that we’re creating new value. When we’re focused on driving success in that arena, the resident does better, the investor does better, and our team and talent do better. Creating triple-win experiences for everyone involved allows a more rewarding relationship focused on lifetime value. Through value drivers like a Resident Benefits Package, property managers are building those wins across the industry.

April 10, 2023

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How To Ensure A Smooth Resident Benefits Package Rollout

Rollout is a high stress time for any new program, but it doesn't have to be. One of the leading concerns for property managers any time they seek to roll out a new program is resident pushback. In the property manager/resident relationship, there’s a narrative that’s persisted for too long that the two parties are at odds with each other and playing some sort of zero sum game. Oftentimes, this is internalized by residents who have been exposed to said narrative or have had a bad experience themselves, and the natural inclination is to push back on any advances from their management team. Related: State of Resident Experience Study Having to battle this is one of the main concerns property managers have when it comes to introducing a resident benefits package. This includes Kyle Hendricks, Vice President of Hendricks Property Management in San Antonio, Texas. “It was ours. For a couple years, we were like ‘I don’t know if that's going to work, you know?’ But it’s the same with a lot of programs that we’ve rolled out. Our fears are never really founded. The pushback is usually pretty minimal if at all, and it was the same here.” ‍Read more about why pushback on RBP is minimal ‍So how did Hendricks Property Management deliver such a seamless rollout? Well, it’s pretty simple actually. It’s all in the communication. Hendricks was quick to note that open communication and transparency are big keys to minimizing pushback and easing the path to successful rollout. The actual logistical rollout of an RBP is handled by Second Nature, so there’s very little for the property management company to actually physically do, making acceptance and adoption by residents and investors their primary concern. Hendricks Property Management nailed this part with clear and concise communication. Second Nature's resident facing flyer “The flier that Second Nature provided was a pretty clear point of communication. It says on there that you’re being enrolled in this program and the charge is this much. It’s just simple like ‘welcome to Hendricks Property Management, we give you a resident benefits package, here are the things you get with the resident benefits package.’ Because of course the question is ‘what am I paying for? You’re saying this is a benefit package, what are the benefits?’ So that just clearly outlined what they were, and did everyone love it? Not necessarily, but the amount of pushback was definitely minimal." Beyond the reality that most residents simply don’t object to a resident benefits package, clear and open communication is part of a great resident experience anyway and will certainly ease any fears you have about rollout, as well as any fears residents or investors might have. It's another part of delivering a triple win. “Be ultra transparent and get it done in the beginning, just saying, we're not hiding anything. This is what you're being enrolled in. This is what it is. I think that helped the adoption rate a little bit. And if people did call in with questions, we were happy to answer them and talk to them about it. So ultimately, it was fine. But I don't think we did anything special. I think just making sure we had that transparency up front was crucial.” ‍A resident benefits package creates a triple win. Everyone benefits. The purpose of clear and open communication is to establish those benefits within the perception held by the resident and owner parties. They may not know much about this, they may have never heard of a resident benefits package, so you have the opportunity and responsibility to show them the value it creates for them and how you are committed to ensuring it remains a mutually beneficial undertaking. Hendricks touched on how team buy-in has affected Hendricks Property Management’s ability to do this. “For me and anything that we adopt, we believe that if it's not something I can stand behind and competently tell a tenant or owner ‘this is good,’ then I'm probably not going to do it. I was easily able to do that with this program. So get your team on board. If they can't confidently tell a tenant or an owner, this is what it is, this is why, and this is how it benefits you and your tenant, then you're going to run into trouble because they can tell if it's kind of lackadaisical, if it's just this thing that the owner of the company wants to do. We try not to go ‘well it is what it is, so just deal with it.’ We try to explain in a positive way what the benefits are. So kind of getting that script together, you don't have to be like a robot or anything like that, but just have the main talking points available to your staff about what the benefits are.” At the end of the day, ensuring a great rollout of your RBP with minimal friction isn't too hard. It's just about positioning the services as the mutually beneficial programs they are and always being up front and willing to communicate. From there, the sky is the limit with resident experience.

March 21, 2023

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Why You Should Focus On Resident Experience

What's the best way to stand out from other Property Management Companies? How can you stay relevant and keep residents and owners happy? Andrew Smallwood from Second Nature explains why focusing on the resident experience can make all the difference. Related: State of Resident Experience Study For more on the topic of wow-ing your residents and building resident retention, check out some of our other articles and podcasts: Top Resident Retention Ideas from Real Property Managers How to Screen Tenants: Tips for Property Managers Types of Resident Problems and How to Handle Them How to Streamline Property Maintenance for a Business Win How to Ensure a Smooth Rollout of Your Resident Benefits Package Here's more from Andrew on how to approach resident experience, and the best perspectives he gather along the way. ‍ TRANSCRIPT Andrew Smallwood: Hey everybody, Andrew Smallwood back again with Stevie Wonder for a quick video. And in today's video we're going to talk a little bit about how property managers have been resonating with this concept of focusing on experience. And I want to share with you a concept that I need to credit to Joe Pine. And you know what Joe Pine says: Hey, if you go back hundreds of years, materials were valuable. People were trading wood for metal, for gold, etc. And what happened is those materials became commoditized. And so in order to create value, those materials got turned into products. The metal turned into nails, right? The wood turned into a wall, etc., or a skateboard or what have you. And so materials turned into products and suddenly the dollar amount here that was very low and commoditized went here and the dollar amount became more. But at a certain point, products even have become more competitive and commoditized. And what you've seen more recently, the last few decades, is a move to services, the services that are built around those products. So it's not just, here's a nail, but here's also a person to help you hang everything in your home and have it designed the way that you want. Instead of just here's a skateboard, here's also a teacher to help teach you how to use it. And even now, we've seen commoditization of service industries, entire industries, being commoditized. And a lot of people are noticing and saying that's what's been happening in property management. And so where does that lead us next? It's really, here's where we are now: experiences. The customization of materials leads to products, the customization of products leads to services, the customization of services leads to experiences. Whereas commoditization moves things down this way, and the value goes down here -- the value goes up as you move up this way. And so experience is really the name of the game today, and that's why we have RBP is because we believe the experience, the number one resident experience is where property managers are going to win. The people who create the best experiences for owners, the best experiences for residents, the best experiences for their team, create what we call a triple win. And an RBP is just a great example of a triple win. It's why we've had the podcast, it's why we've had so much of this content. This is just part of the mental framework of what we believe is important and part of the way that we see the world. Would love your commentary if you've read The Experience Economy by Joseph Pine. Would love to hear your thoughts. If you haven't, would love to hear your thoughts. And we hope this helps you in some small way or some big way. With that, take care.

March 21, 2023

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Four Keys to Successfully Scaling A Property Management Company

Today we're looking at the best ways to successfully scale a property management company. And we're going to an industry expert with our questions: Patrick Freeze. Patrick Freeze was once a professional poker player. Now he is the CEO of Bay Property Management, a Baltimore-based firm that has scaled to nearly 6,000 doors and is one of the largest PMCs on the east coast. While his personal origin story is one of the most interesting in the PM industry, his company’s growth story and the tactics used to go from nothing to a heavily-scaled PMC are equally interesting. Through a marketing-focused approach that was complimented by intentional and detailed process optimization, Freeze achieved an impressive amount of growth at Bay, and he joined us to explain exactly how he got there. Four Keys to Successfully Scale Your PMC Here are Freeze's top strategies. Optimize Your Marketing for Efficient Growth From day one, Bay Property Management has invested in its organic marketing efforts to help attract new business. Freeze himself became an expert in SEO early on and it’s the primary focus of his robust marketing team today. “I started reading everything I could on online marketing, so SEO, pay per click, etc. Over that coming year, I became really skilled at doing all the marketing on my own,” says Freeze. “So if you were to type in property management companies, Baltimore property management companies, or any variation of those keywords, we could come up number one. And then we started getting phone calls 24/7.” Bay grew rapidly as a result of its ability to generate web traffic and organic leads through SEO, and Freeze doubled the size of the business on a yearly basis for several years after the initial launch, eventually expanding into four different markets. Freeze credits his and his team’s investment in low-funnel digital marketing tactics as the catalyst for his rapid business growth. The CEO estimates he gets between 120 and 140 new single-family leads a week, with almost all of them coming from online sources. “We have 10 people in our marketing department that solely focus on that. Google is actually going through a big algorithm update right now, and you have to be on that. If you’re not on top of that, you’re not going to rank well in search. We spend a lot of time on that. Someone could probably argue the other side and say you should be more diversified, but at least that’s worked for us.” Process Improvement Never Takes A Back Seat One of the biggest pitfalls as a business grows is its process development and refinement. Scale requires processes, and enacting and optimizing these can often be a much bigger challenge than actually growing the client list. A rapidly growing PMC has already optimized its process for finding new business. Defining the systems your company will depend on to be efficient is a new undertaking, something Freeze learned quickly as Bay grew to nearly 200 employees. “When you’re managing 500 units, you know everyone at the company very well, and you can get away with not having systems, policies, procedures. When you have 190 people, you really have to have your systems down,” says the CEO. Freeze notes that the challenges that come with a large company are not universal, and what you have to be prepared for at 50 employees is different from 150. It pays to have continuous improvement and always be optimizing. Process management is never something that’s done. “So I think probably scaling from let's call it, you know, five employees to 15 to 50 To 100. You have to keep iterating. You have to continuously make improvements on what you're doing. So what worked for, let's call it 200 doors is not going to work for 1,000. So a good example, I guess when we started out. We had one person handling maintenance, we had one person handling accounting, we had one person as the property manager, right? And I would go out and get new business. Well, as the company continued to grow then we had two people on maintenance. And then we had two property managers. And as we were growing, we realize, wait a second, when a work order comes in, whose work order is that?” Early on in the company’s growth, Freeze sought to define the exact responsibilities of all positions within the company in order to minimize overlap. Overlap in roles leads to inefficiencies that can be avoided with clear guidelines as to exactly what role is responsible for what upcoming tasks. “We have a handbook for our property managers that’s probably 80 pages. We have a procedural guide for every single position,” says Freeze. “I don’t think anyone whom I’ve talked to that has scale has not had very, very defined policies, procedures, handbooks, because if you don’t, it’s going to be a total mess.” Structure has helped create more traceable outcomes, which results in processes that are “more easily optimized and improved as the company continues to grow. “We made a change when we had about 1000 or 1200 units from having maintenance coordinators and property managers to just having the property managers handle everything. It was a big switch for the company, but I think it was for the better because we know exactly when there’s a mistake that’s made. We can trace that and see exactly who was responsible for the problem instead of having four hands in the pie.” Quality Employees Are The Backbone of Growth “I don’t think there is anything more important than having good quality employees,” says Freeze. “You can get all the new business you want but if you don’t have good employees managing the new property, you’re going to lose it as quickly as you gained it.” Bay did not grow to almost 200 employees without a developed process for finding good quality workers. While the hiring process has become much more role-specific now, Freeze credits a unique interview design that’s much more action-focused than response-focused as what has helped him pick the most suited people for property management. “I had a list of 30 to 40 questions that had nothing to do with property management. I would ask questions like ‘who is the vice president?’ ‘What is 46 times 24?’ I used to have this brick wall in my office and I would ask how many bricks are on the wall. I would ask them to name something that’s complicated but you know really, really well, and take five minutes and explain it to me. And I would just keep going on and on for probably 30 minutes with these questions.” Freeze never particularly cared if the candidates got the answers correct. He was much more interested in their process for getting to the answers and how they handled the abnormal interview. “In property management, you’re constantly dealing with problems. You’re basically problem-solving when you’re a property manager, and if you can’t deal with complicated questions, you’re probably not going to be able to deal with complicated situations. So I would just start blasting off for 30 minutes all these random questions, and some people did great with it and we would hire them. We probably had 25% of all people who wouldn’t even finish the interview.” Resiliency is a key trait for a property manager, and Bay’s interview process succeeded in testing for one of the harder traits to ID in an interview setting. Freeze’s process also includes a timed writing test designed to see if candidates can write clearly and quickly when applying for a company that’s very email heavy. The process is designed to test ability more so than experience, and it’s helped get the right people in place from the beginning, allowing Bay to offer a better property management service that is more marketable. Compliance Is Key Compliance is hard enough in the heavily regulated world of property management, but one of the biggest challenges as you expand into other markets is managing the different laws and ordinances in each individual market. Freeze believes that compliance is “far and away” the biggest challenge of scale. “All of our leasing agents have to know different things in different jurisdictions that we’re in, because the requirements are different,” says Freeze. “We have attorneys review our stuff every single year, all of our lease documents, addendums, etc. Even with all that said, there is so much legislation that is passed every quarter that it can be tough to stay up on it.” Managers at Bay’s regional offices are required to be diligent in remaining current with the nuances in local leasing laws and ordinances, which can change monthly. “They really are changing that much, as crazy as that sounds. And then when COVID happened, it was a complete and utter nightmare. They were changing weekly, and the odds of getting hit with a big class-action lawsuit go up, and you can be sued for something that you don’t even know you’re doing wrong. So always make sure you are totally buttoned up and spending extra money on compliance. I can’t say that enough. You can’t spend too much on that.” Advantages of Scaling a Property Management Business With these tools for scaling a PMC, you can increase the size and scope of your business in order to achieve higher levels of efficiency, profitability, and growth. Let’s look at what benefits you stand to gain from scaling your business. Business growth Scaling a business can help to grow your business by expanding the customer base, increasing sales volume, and improving operational efficiency. Improved profitability As a business grows, it can benefit from economies of scale, which can help to reduce costs and improve profitability. Competitive advantage Scaling a business can help to create a competitive advantage by allowing it to offer a wider range of products or services, enter new markets, and achieve greater brand recognition. Improved access to capital A larger and more successful business is often able to attract more investment and secure better financing terms, which can help to fuel further growth. In the case of property management, it can also drawn clients. Attracting and retaining top talent Scaling a business can help to create new opportunities for employees, increase job security, and improve overall job satisfaction, which can help to attract and retain top talent. Increased innovation As a business grows, it can invest more resources into research and development, which can help to drive innovation and create new products or services. Tools You Need to Scale Your Property Management Business The property management industry is an enormously tech-savvy group of people. In our network of property management companies, we’ve seen quick adoption of new tools and tech like AI, cloud-based systems, etc. Of course, the property management tools you choose will depend on the specific needs and goals of your PMC. Second Nature’s RBP aims to provide tools that are customizable across multiple property management levels, needs, and niches. With fully managed and integrated services that add value for residents and investors you can much more easily see the benefits of scale. Here are some other tools and property management software we’ve seen most highly rated in our industry. Slack: A cloud-based platform that makes communicating with your team easy. You can get immediate responses from team members, and even vendors or clients you add to your channels. LeadSimple: Sales CRM and process automation RentCheck: Automating property inspections Process Street: No-code, simple process and workflow management Airtable: a low-code platform to build collaborative apps to visualize data, processes, etc. Zapier: A tool that allow syou to integrate all your applications and set up automated workflows between them. These are just a few of the many property management tools available. It's important to evaluate the specific needs and goals of your business, and choose a tool that best fits those requirements. How Second Nature Helps With Scaling Second Nature was built on the idea that we could help make property management easier for everyone involved – residents, investors, and especially property managers. To that end, we’ve built fully managed services that generate greater value for your PMC by delivering better resident experiences. Our team takes care of the details for you so that your team can focus on growth, reputation, and quality. Learn more about Second Nature’s industry-leading resident benefits package and how it can help you scale with greater ease.

March 21, 2023

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The Pod System Defined by Phil Vera

The Pod System helps Auben Realty provide an excellent resident experience at scale. ‍ Auben Realty CEO Phil Vera joined us on The Triple Win Podcast to discuss a number of topics in the property management industry, including the innovative Pod System. The Pod System is a management technique Auben instituted in recent years that’s helped them to focus on long-term benefits of a great resident experience while building meaningful relationships with investors to create a triple win where all parties benefit. This triple win is also the concept behind Second Nature's Resident Benefits Package. Related: State of Resident Experience Study What is the Pod System? As Vera explains, most property management companies employ traditional property managers who serve as a jack of all trades for the properties they are tasked with managing. This is portfolio-based management. They handle everything from leasing, to maintenance requests, to communication with the investor and the resident for their portfolio of properties. The end of the spectrum opposite a portfolio-based company structure is a departmental structure, where employees handle a specific piece of the management channel for many different properties. Neither is necessarily a wrong way to do things, and both work well for certain companies, but Auben was convinced there had to be a better way. Enter the Pod System. The Pod System is innovative because it has hybridized portfolio with departmental, creating teams of people to manage a portfolio of properties, with each person serving in a specific role. This structure allows Auben to provide excellent and reliable communication as part of its resident and investor experience while not sacrificing the advantages of an effectively scaled property management company. How does it create a Triple Win? Within each team, Auben employs an Investor Account Manager. These roles are designed to foster a great working relationship with investors and create open and accessible communication channels. “They are the investor’s main point of contact,” said Vera. “They build a relationship with the investor, provide updates, communication flow, all those things. If an investor has a question, they pick up the phone and they call their investor account manager and they have a direct line.” This is a differentiating experience for Auben, as most PM companies don’t offer a direct line of contact for investors. Auben employs a resident experience manager as well, which Vera touches on, noting the value it’s created for Auben. “We kind of went outside of the norm and we created the resident experience manager. So traditional property management, we’re focused on the investor. That’s our client. The resident pays rent. If you don’t pay rent, we’ll find someone else who can. We wanted to kind of think outside the box there and say ‘okay, the resident is important in investing because if we can decrease vacancy and reduce turnover and keep the residents happy, they’ll stay in our properties for long periods of time and ultimately increase the investor’s return as well.’” The innovative company structure used by Auben is a perfect example of creating a Triple Win. Auben has built itself around the importance of the resident and investor experience, and the satisfaction those parties receive as a result directly benefit Auben in the long-term. Experience is the key term there, as that's what property management companies need to start delivering to stay ahead of the curve in an evolving industry. Being part of the first wave of companies to transition their offerings from service to experience creates an opportunity to grow and thrive that isn't otherwise available in the SFR space, and that's the reasoning behind Auben's innovative pod system. Have you thought about implementing a Pod System in your PMC? Do you think it could work for you, too?

March 21, 2023

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What is The Triple Win?

In this video, Andrew Smallwood walks you through the process of the triple win. Property management strategies have historically been focused on a zero sum game: getting the most out of your clients for the least amount of work. But in the end, that strategy doesn't generate more value for anyone. The Triple Win is about a completely different business mindset. It's all about finding a way to elevate the SFR rental experience for everyone - Residents, Owners, and Property Managers. We aim to help build property management products and services that add value for all three. In this video, Andrew talks about how to build programs that deliver wins. That's why we call our podcast the Triple Win Podcast. In it, we talk with property management and real estate experts around the country and outline the best innovations in the SFR property management space. Programs like an filter delivery service, move-in concierge, credit reporting, and more. All of these can be wrapped into a Resident Benefits Package (RBP). These programs help solve for what residents want, and what they'll pay for and stay for. It also helps build the kind of behavior the property managers and investors need. Andrew introduces these concepts in the video below. To learn more, get in touch with our Triple Win Leadership Council, or join the Triple Win Leadership Exchange. ‍ ‍ TRANSCRIPT: Andrew Smallwood: Hey everybody, Andrew Smallwood coming back again. Listen, I wanted to record one more short video because the last one got such great feedback, and I had an idea that I've been talking about to a number of folks and they say has really been resonating with them. Again, I'm just going to move over here for a little visual help. People have been talking about, "Hey, this triple win concept in your podcast and everything like that, what's really going on here?" There's three parties that professional property managers are thinking about anytime they're making a decision or structuring their business. And that's residents, owners, and then you and your team. Here is often what property managers feel stuck with: They make a decision that benefits their owners, maybe in a meaningful way, right? But there's a little bit of a trade-off as far as how it impacts a resident, and then here's their team cut in the middle between these two expectations, right? It feels like everything's kind of going every direction. What we want with a triple win is something more like this, right? You've got your residents, owner, you and your team, and everybody benefits. So you've got this powerful, aligned transformative effect in the business. Everybody going the same direction, everybody impacted in a positive way. When you think about this, it's like, "Hey, when you structure a new fee or a new program or what have you, it's really keeping in mind, 'How do we do this in such a way that it elevates the experience for everyone, and that that story is all lined up, the incentives are all lined up.'" Listen, I'm not telling you this is the only way to do things. Some of you may be saying like, "Of course, it's obvious this would be the way you would do things." But for some property managers, it isn't. For some property managers, there are questions like, "Well, hey, I make so much on maintenance. Do I really want to prevent maintenance?" That's really just a question of how do you want to align your value. Meaning if, yes, you make money from reactive maintenance, maybe there's a benefit here that you can say, "Hey, I'm monetizing all that reactive maintenance." But for property owners, we know that's no good and for residents, that's no good as well. So while it may be a win here, it's a single win and it's a double L, right? Preventive maintenance means a win for the resident, it means a win for the owner, and it means prevented work for your team and you can monetize your preventive maintenance. So it's still a win for your bottom line as well. That's really the takeaway: This lens that we're talking about seeing the world through. Once you put this lens on, it's like you can never see anything the same way again. Just like glasses change your view of the world, or a microscope or a telescope give you a different view of something that you're looking at, so does the triple win lens. Hope this video is helpful. Would love your feedback. Shoot me a comment, email, wherever you're seeing this. Would love to hear your stories of triple wins or how you structured things or what you implemented in order to create a triple win and transform your property management business. With that, until next time, keep rocking. See you.

February 16, 2023

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Property Management FAQs About Resident Retention

Resident retention is one of the best ways for property management companies to drive greater success for their business and their clients. Residents who stay longer ensure consistent revenue, often take better care of the property, and help make planning more predictable. But resident retention can be a moving target. In a recent Buildium survey, 36% of single-family rental residents said they were on the fence about renewing their lease in the coming year. We’ve talked a lot here about resident retention and ideas for building long-term success with residents. Today, we want to do something a little different. We decided to ask a property management expert about her experiences with building resident retention, and we’re sharing our Q&A with her here. ‍ Key Learning Objectives: Recent trends and data on resident retention How retention strategies can save money Best ideas for setting up a resident retention program: What works and doesn’t work How to calculate resident retention rates ‍ Meet the Expert: Melissa Gillispie, Director of Leasing & Property Management at JWB Real Estate Capital Melissa started her career with JWB in 2013 and is currently the Director of Property Management. She is the licensed real estate broker for JWB and plays an integral role that has led JWB to manage over 4,900 single-family homes in Jacksonville FL, being the largest local rental management company in Northeast FL. Under her purview, JWB has delivered over 26 million dollars in cash flow to its current clients through exceptional management services. Melissa also sits on the Board for NARPM Northeast FL as the Membership Co-Chair. She won the 2022 NARPM Rocky Maxwell award for dedicated service and contribution to NARPM. She is married to her husband of 14 years and has three sons aged 11, 9, and 6. When she is not working, she can be found at the football and soccer fields cheering her sons on! Why should property managers pay attention to resident retention rates? Can you share some recent data or trends about resident retention? Melissa: Resident retention is a direct reflection of your customer experience. If people enjoy working with you, they'll stay. If they don't, they won't. We use resident retention as a key benchmark for measuring our customer service. In our market, we renew 72% of our leases annually. A standard PM benchmark historically is that about a 70% renewal rate for residents is a huge success. Some factors currently impacting retention include the housing market, higher interest rates, and tax/insurance cost increases. These factors make buying harder, which drives more rental retention. On the flip side, due to rising costs for investor clients, rent rates are climbing to keep up with those costs – which can be a big objection to overcome with residents. Swallowing the pill of a $150-$200 increase in rent can be tough for a resident on a fixed income. That makes their experience with us even more important. If they don't enjoy the experience, they most certainly won't agree to that level of rent increase. Related: How to write a rent increase letter. How can resident retention strategies save property managers money? Melissa: Residents who stay longer-term tend to make on-time payments more often, take better care of the home, and reduce vacancy costs/leasing burdens. These benefits lead to better rent collection and increased management fee collection, happier clients with lower turn costs, and a lower market-to-move-in or days-on-market metric for leasing because their inventory continues to be reasonable and controlled. What are some of the best ideas to set up a resident retention program? Melissa: Reach out early and often! We start reaching out to residents six months before their lease expires. Make the reason for that initial touch point just to "check in" – because it’s about relationships! People like to feel valued. Get creative with incentives for long-term leases! We offer all kinds of crazy resident incentives. We even bought a resident their very own bounce house when the client's homeowners insurance made the resident remove their large trampoline. Identify the real roadblock or concern, and do everything in your power to listen and solve it. Listen to any real complaints. If there are maintenance issues, solve them. If there are communication concerns, address them. Residents want to know that when they voice a real concern, you hear them and work hard to partner with them to fix it! What are some ideas for PMs who are struggling with resident retention? What have you seen work well? What doesn’t work? Melissa: The best advice I can give is this: Communication and expectations are KEY. Start to work for the renewal on Day 1 of the original lease term, and consider how you can increase your communications. Be transparent. Be open to feedback. See retention as a bottom-line revenue driver. See retention as a benchmark for how residents are experiencing your company. Set a budget for creative incentives, and then encourage your team to USE THAT MONEY UP! The more "dopamine hits" you can give for those feel-good connection moments, the better! I think creativity is understated in property management. We focus so much on difficult interactions. How can we increase the positive ones? Who doesn't love to feel celebrated, seen, valued, appreciated, and considered? Do you recommend using property management software or tools to help improve resident retention? What are some of the best options? Melissa: Automation is key as you scale your business. We manage around 5,000 doors, and without the ability to send email and text blasts, etc., we'd struggle to achieve the high touchpoint mentality we have. I think the larger your business, the more important these tools become. You can only grow at the pace at which your business can efficiently scale without having to continually add more staff. Text Magic is a low-cost solution for texting, call fire is a great option for mass-dialing and automated phone messaging. Any PM software has great reporting capability to build out mail merge lists. It doesn't have to be expensive to make it happen! How do you calculate resident retention rates? What’s a good average retention rate, and what factors impact retention? We look at leases ending as an opportunity, and our resident retention is how many of those leases ending in a calendar year we convert to extend their lease term. Executed / Opportunities = Renewal Rate. A good average retention rate is anything 70% or better. That number has been our benchmark for success for 17 years of business. Factors that impact retention include how much owners are involved in setting rent rates, the housing market, the rental market, demand, experience, etc. We haven’t seen retention rates vary significantly by location, such as states vs. cities vs. rural areas. Improve Resident Retention Rate with Second Nature RBP Time and again, we’ve heard that one of the most important factors to resident retention is resident experience. It’s such a natural connection it almost goes without saying. As Melissa said, “If people enjoy working with you, they'll stay. If they don't, they won't.” In recent years, one of the more effective innovations in resident experience is the Resident Benefits Package (RBP). Second Nature’s RBP was designed to create an easy win for SFR property managers. We developed each feature as a direct response to a pain point in resident experience and property management – but that often fell out of the scope of property management companies’ bandwidth or expertise. To learn more about driving resident retention with a custom RBP, get in touch with us!

February 16, 2023

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How to Get Rid of Indoor Odors & Bad Smells

Got a foul odor in your home? You've come to the right place. Do you ever walk into your home and get hit by an extremely unpleasant scent? If you do, and you don't have a pet skunk, you can look to indoor odors as the source. We promise you there are SAFE ways to reduce or eliminate odors in your home. It's essential to attack the odors head on, rather than mask them with candles or spray. If you need a quick fix to make your home smell fresher, here are some tips: Change your air filter(s) on a regular schedule. The air in your home cycles through your air filter(s) multiple times per day. If your filter is not clogged or saturated, it will do a great job of capturing contaminants and pollutants that can make your home stink. Simmer a bowl of vinegar on the stove. This neutralizes odors rather than masking them, like burning vanilla or cinnamon do. Steam clean soft surfaces like drapes, curtains, and sofas. These items often get neglected in the cleaning process. Steam cleaning them is effective at eliminating dirt, dust, and, most importantly, odors. Deodorize your stinkiest rooms by placing a mixture of 3-parts water, 10 drops of citrus oil, and 1-part vodka in a decorative bowl. This is especially effective in rooms with strong foot or body odors like mudrooms and laundry rooms. If you, anyone that lives in your home, or any of your guests/visitors smoke, do so outdoors. We cannot stress this enough. Do. Not. Smoke. In. Your. Home. Cigarette smoke clings to all porous surfaces, including walls. Pets can add all sorts of smells to a home. Keeping up with their hygiene will go a long way in keeping your house smelling fresh. If you have a garbage disposal, avoid discarding carrot, onion, or potato peelings down it. Not only can they block up your disposal, but they cause a horrible stink when they begin to decay. Often times, your garbage can will begin to stink. A simple fix for this is washing it out with white vinegar and water to eliminate any leftover odors. If your laundry basket is filled with stinky clothes, consider sprinkling some washing soda onto the pile until you get around to doing the laundry, as this will neutralize the smells. Those are some of the basic things you can do to freshen up the scent in your home. Now, if you feel like you may need even more information on how to eliminate home odors, we’ve got you covered. Here’s a complete guide to all things indoor odors and how to deodorize your home: What is an indoor odor? Dangerous odors Why does my room smell? How to get rid of home odors Clean your cleaning supplies Using an odor eliminator Maintain your pet’s hygiene Wash laundry Ventilate Keep flooring and surfaces clean Clean your kitchen Keep your bathroom clean Change your air filter ‍ What is an indoor odor? An odor that's inside, duh. Ok, this is a true statement, but there's actually more to it because science, ya know. Some odors are caused by low levels of volatile organic compounds (VOCs) in the air that humans can detect. A VOC is a chemical that can turn into vapor in room temperature conditions, and can potentially be harmful at certain levels. ‍ Dangerous odors First things first, if you notice any of these smells, it may be a sign of something more serious: ‍ Fishy smell or burning rubber smell This could be a sign of an electrical wiring malfunction somewhere in your home. The first place to look would either be appliances, a wall switch, or an outlet. If you do find that the smell is coming from your home's electrical wiring, it would be best to call an electrician. If the burning smell is strong and you can't find the source, we would recommend leaving the house and calling 911 in case there is an electrical fire in your home. ‍ Sulfur or rotten egg smell Typically, if you're smelling either of these odors, it's a sign of a gas leak in your home. The best thing to do in this situation is to leave your home, call 911, and then call your gas provider so that they can send someone over to fix the leak ASAP. ‍ Musty smell Mold is usually the culprit behind musty smells in your home. Most of the time, you should be able to handle mold on your own, but if it does turn out to be more of a problem, professional help may be necessary. How do you get rid of the musty smell in the house? Tackle the mold, of course. If you're looking for ideas on how to remove mold from carpet, look no further than this link right here. ‍ Why does my room smell? There are a lot of different reasons to ask "why does my room smell?" Here are a few different sources or indoor odors that you should investigate first: Pets Mold Dirty clothes Carpets Kitchen Bathroom ‍ How to get rid of home odors How are we going to get rid of these odors? Well, the answer isn't buying several different air fresheners and setting out a huge bowl of potpourri, although a little potpourri never hurts. Instead of deodorizing a room using air fresheners that release chemicals into the air and only mask odors, we want to remove odors at the source. You might ask, how do we do that? Look no further, we've got nine tips coming right at you to help remove indoor odors in your home. ‍ Clean your cleaning supplies Before you tackle those odors, make sure the supplies you use are free from odors themselves. ‍ If the same sponge you used in February is still sitting beside your sink, it's probably a good idea to find a replacement. Depending on usage, sponges should be replaced at a minimum of once a month to ensure that you're not cleaning your dishes with unwanted bacteria. To make sponges last longer, run them through the sanitize cycle in your dishwasher to temporary stop bacterial growth. ‍ Biodegradable sponges are also a more environmentally-friendly option! ‍ Towels can also smell pretty bad if they're left damp for too long. Make sure towels are laid out to dry after use, so mildew doesn't have a chance to grow. If your towels do smell like mildew, throw them in the washing machine with either one cup of white vinegar or one cup of baking soda, no detergent necessary. We recommend washing towels once a week to make sure they always smell fresh and never need to go through the vinegar or baking soda treatment. ‍ Lastly, keep regularly replacing the bag or emptying out the canister in your vacuum cleaner to keep it on the nice smell list. Rinsing it out with soap and water should also help remove some of the dirt that it has been collecting over time. Blockages from hair or fur should also be cleared out. If your vacuum has an air filter, make sure to follow the manufacturer's cleaning guidelines! ‍ Use an odor eliminator There are plenty of things you probably already have in your home that can naturally clear odors from the air. Some of the best odor eliminators are coffee grounds, tea, vinegar, oats, and baking soda. Leaving a bowl of any of these odor absorbers out in a room that's due for a little freshening up will help clear out the less-than-pleasant smells from the air. ‍ Baking soda is probably one of the most useful tools in eliminating odors from your home. Instead of masking odors like air fresheners and candles, baking soda absorbs and neutralizes them. It has a reputation for being one of the best carpet deodorizers. Sprinkling it across any carpeted areas and allowing it to sit there for a few hours will have your carpet smelling fresher in no time. ‍ Another place you should put baking soda? On your mattress! Your mattress is a trap for sweat, dirt, and dead skin. Definitely not the ideal things to sniff while trying to fall asleep. Just let it sit for several hours, then vacuum it up, and voila, you have many future better smelling nights of sleep ahead of you. Mattress covers are also great at keeping your mattress from collecting all of that nasty stuff. Especially if you have allergies, mattress covers can be a savior. ‍ Pet accidents? Baking soda's got your back there too. Here's how to eliminate urine odor from your carpet: First, place a layer of paper towels down on top of the wet spot. Then add a layer of newspaper to absorb as much of the urine as possible. Next, sprinkle about ¼ cup of baking soda evenly over the affected area, and let it sit out for awhile. Overnight or around 8 hours would work, but the longer it's left out, the more effective it will be. After the baking soda has had time to neutralize the odor, vacuum it all up. ‍ Baking soda and vacuuming is also effective in neutralizing odors from your pet’s bed. ‍ An alternative to this method would be to mix together one cup of vinegar, one cup of water, and two tablespoons of baking soda. If you have a spray bottle, use that to spritz the urine stain with this mixture. Bam! Odor removed. ‍ Maintain your pet’s hygiene We know you love your fur babies, but their odors? Not so much. It's important to maintain your pet's hygiene to keep them and your home smelling fresh. Bathing your pets once a month should be the minimum, but a more ideal timeline would involve scheduling a bath for every one or two weeks. Yes, if they cooperate, cats too (*shudder*). If you need help with this, consult our blog about reducing cat dander for some kitty bathing tips. Other grooming techniques include regular brushing and nail clipping. Especially if your pet spends time outdoors, their fur and nails can harbor dirt and other unpleasant things from the outside world that can contribute to home odors. ‍ Your cat's litter box can also be the source of a less than pleasant stench. Make sure that you're scooping it out at least once a day. About once a month, you should more thoroughly clean the litter box. Soap and water should do the trick as the scent of harsher chemicals can cause your kitty to avoid using the litter box altogether. Since litter boxes are often scratched, creating an ideal home for bacterial colonies, aim to replace them annually. ‍ Keep your cat’s litter box in a place in your home that is well-ventilated so that odors don’t intensify and can naturally dissipate. ‍ Last but not least, don't forget about your small animals! Your guinea pigs, hamsters, and gerbils need their cage cleaned out at least once a week to keep their living environment clean and odor-free. ‍ Wash laundry Do you have a hamper overflowing with sweaty clothes somewhere in your home? If you do, it's probably time to get a load of laundry going. That hamper is a breeding ground for bacteria and all the unpleasant smells that come along with it. ‍ Since there is a lot of moisture concentrated in laundry rooms, it is very easy for odors to become trapped in the room. To keep your washing machine smelling fresh and free from mildew and mold, keep the door open between uses. This is especially true for front-loading washing machines. When the door is closed, the humid and airtight environment is the ideal environment for mold growth. So, to clean out your washing machine, pour either one cup of white vinegar or one cup of bleach into it, and then run it for one full cycle. ‍ A lot of newer washing machines will do the work for you with a self-cleaning function, but the vinegar or bleach still help. Be sure to pick one or the other and never mix vinegar and bleach, this creates a toxic chlorine gas. Never mix vinegar with any chlorine product to avoid creating this toxic gas, or actually just never mix chlorine with anything. That's probably your best bet. ‍ We're also just going to go ahead and mention those shoes. You know the ones we're talking about, the shoes that you've worn every single day for the last 6 years and are practically glued to your feet at this point. We've all got 'em, and odors? They've all got 'em. ‍ Even though shoes bring in dirt, allergens, and yes, even C. Diff and E. Coli, only half of Americans will take their shoes off inside their homes, and less than 25% will ask their guests to take them off. Leaving your shoes at the door will for sure help leave odors at the door as well. ‍ A trip through the washing machine should be enough to have your shoes smelling fresh again, but first, a little baking soda might come in handy. Three tablespoons of baking soda in each shoe overnight should help to neutralize odors before washing them the next day. If your shoes are made from materials like leather or suede, or have embellishments, machine-washing them most likely isn't the best idea. We'd recommend spot cleaning these shoes with a damp cloth instead. Always use your best judgment, but we'd say most sneakers are typically safe to be thrown into the wash! ‍ Wash shoes inside of a pillowcase so that laces don't get tangled, and throw in a load of towels as well to muffle any loud noises. Only air-dry sneakers, however, as the heat from a dryer could cause damage. ‍ Try to limit wearing your shoes to every other day, and stuff newspaper inside to absorb any lingering moisture or odors. ‍ Ventilate Ventilate, ventilate, ventilate. Proper ventilation is vital in ensuring that odors don't intensify. Make sure that you're opening windows and using fans generously so that any odors don't remain stagnant in one place and can naturally dissipate. If it's pollen season or if you live in an area that has a lot of smog, windows should remain closed. Other than that, outdoor air quality is typically better than indoor air quality. That's why letting in outdoor air will improve both the air in your home and circulation. Special attention should be paid to the ventilation of the kitchen and the bathroom where odors have a tendency to accumulate. ‍ Keep flooring and surfaces clean Start off by dusting the surfaces in your home from the top down. For harder surfaces like shelves and cabinets, a damp cloth or duster works better to actually remove the dust instead of just moving it around to a different place. For walls and painted surfaces, a dry sponge will be more effective. ‍ Next, make sure that you vacuum your home thoroughly. Vacuum it again. And again and again. Keep vacuuming. Vacuum until you can vacuum no more. How do you deodorize carpet? You vacuum. This is because carpets are a magnet for pet hair, dander, mold, dirt, and dust, none of which smell particularly rosy. ‍ For hardwood floors, regular sweeping and mopping should be enough to keep them odor-free. If you do notice any particularly strong odors, mopping with one part vinegar and one part water should do the job. ‍ Clean your kitchen Kitchens are a major source of all the smells. Smells like bacon, freshly-baked cookies, oooh and homemade pizza...sorry got a little carried away there. Unfortunately, your kitchen doesn't always smell this good. Cooking smoke, spoiled food, an iffy-smelling dishwasher, and the garbage disposal could all be contributing to kitchen odors. So, how do you keep kitchen odors at bay? ‍ The first place you'll want to keep an eye on is the fridge. Often times, food can spoil without you even knowing it! Make sure that you're keeping tabs on expiration dates and throwing out food accordingly to avoid discovering last Thanksgiving's mashed potatoes in January. Your nose will thank you. If your fridge smells, but there's no rotten food in sight, keeping an open container of baking soda in your fridge will do wonders to absorb the odor. ‍ Leaving the exhaust fan on while cooking is a good way to keep the space well-ventilated and as odor-free as possible. Grease from cooking will typically spread to the stovetop, counters, floors, cupboards, lights, and other surfaces nearby. A good wipe-down with a natural cleaning solution should be enough to reduce grease buildup and resulting odors. Vinegar, like baking soda, is one of those products that just about cleans anything. ‍ If you notice a funky scent coming from your dishwasher, the culprit is probably the food that can get trapped in your dishwasher's filter, causing odors to occur over time. Cleaning out the filter regularly with hot water and soap is one way to prevent this from happening. Now for the odor? Place one cup of white vinegar on the top shelf of the dishwasher and run it once on the hottest setting. Then leave the dishwasher open to air dry and minimize the scent of vinegar afterward. Adding a drop of your favorite essential oil into the vinegar before sending it through the dishwasher can also keep your dishwasher smelling fresher. ‍ Now, on to the garbage disposal. Garbage disposal odors can be the result of food scraps that didn't grind properly and are starting to rot or even a buildup of bacteria. Don't worry, this is typical and pretty simple to get rid of. Just cut up a few lemon or orange slices and put them through the disposal. This also works with a cup full of baking soda and a cup full of vinegar as well. ‍ If you find that your trash can also doesn’t emit the most pleasant odor out there, baking soda will be your savior once again. Among other things, baking soda holds the title for best trash can deodorizer. Just sprinkle some in either the can itself, or the liner, and a fragrance improvement will be well on its way. Washing your trash can with water and vinegar is also an alternative method. ‍ Keep your bathroom clean Some hot spots to hit here are toilets, sinks, and showers. Where there's water residue, there's always a chance of mold. Keep your toilet clean by cleaning it at least once a week with toilet bowl cleaner. Pouring half a cup of bleach or vinegar into the toilet, then letting it sit for around 30 minutes before flushing is another way to keep your toilet odor-free. You can clean sinks and showers with bleach, or to keep things more natural, you can use a paste made from baking soda, lemon juice, and vinegar. ‍ Around once a month, pour a mixture of half a cup of vinegar and half a cup of baking soda down all drains. This will help to both neutralize odors and reduce clogging. ‍ So how do you keep your home odor-free? Basically clean. Shouldn't be too hard. That's what kids are for, right? ‍ Oh, wait. One more thing. ‍ Change your air filter Have you ever smelled an air filter before? AMAZING, better than lavender. Just kidding, we've actually never smelled an air filter before. Hold on one second. ‍ ok, after further research, air filters smell like... air? Do with that tidbit what you will. ‍ Anywho, regular air filter replacements are a necessity in keeping your home smelling nice and pretty. Your air filter traps all kinds of particles like dust, mold spores, and dander that would otherwise contribute to an unpleasant odor in your home. To keep your filter working as efficiently as possible, you should replace it at least every three months. If you think it's time for a replacement, we happen to deliver some super cool filters straight to your door. Well, there you have it, our guide to indoor odor busting. Now go grab that baking soda and a bottle of vinegar, no odor will stand a chance against you. Oh, and don't forget to sign up and get your first shipment free!

February 6, 2023

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How Will Dirty Air Filters Impact My HVAC System?

These are things every homeowner should know. Dirty and clogged air filters reign havoc on your HVAC system. They will not only waste money on energy costs, but they will cause damage (sometimes irreparable damage!) to your HVAC system. Here are some ways a dirty or clogged air filter impacts your heating and cooling system: ‍ A dirty air filter is one of the most common reasons for HVAC system failure. A dirty filter restricts the air flow into your HVAC systems air handler. This restricted air flow places additional strain on the air handler fan motor and could, over time, burn out the motor and cause your system to overheat and ultimately fail. Filter replacement is a small price to pay to extend to life of one of the biggest financial investments in your home. A dirty air filter makes your fan motor work harder and consume more energy. One of the easiest and quickest ways to reduce your energy bill is to replace your air filter. A dirty air filter makes your heating and air-conditioning systems and your ducts get dirty faster. This can lead to costly HVAC cleaning expenses or a need to replace your HVAC unit or HVAC components sooner than you expected. If the heating and cooling coils are caked with dirt and particles that would normally be trapped by the air filter, the system will work harder and be more prone to freezing over or burning out. ‍ Your air filters are a vital part of your heating and cooling system. An HVAC repair STARTS at around $600 and an exhaustive repair (short of a replacement) can easily reach $7,000. A new system, if the damage is irreparable, starts at around $10,000. Air filters are a nominal cost when compared to the cost of repairing or replacing your home's heating and cooling system.

February 6, 2023

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How Do I Know What Air Filter To Buy?

Pleated filter? Fiberglass filter? Electrostatic filter? Which one is for me? Pop quiz. What is the best way to rid your indoor air of pollutants like mold, pollen, and bacteria? Napalm your entire home Walk around the house waving a disinfecting wipe through the air Vacuum the air with a shop vac Purchase the right air filter ‍ If you chose D, you are correct. If you chose any other option, then we need to have a separate conversation. ‍ An air filter plays a critical role in keeping the air in your home clean. In fact, it’s the most important item to your home’s air that you can purchase, and since your indoor air can be up to five times more polluted than the air outside (and no one likes breathing pollutants), you need a high-quality air filter. ‍ There are a lot of different varieties of air filters that you can purchase. Given that the average person ranks air filters right around different types of cement and how cardboard is made on the list of things that interest them, it’s not surprising that many don’t know what makes a quality air filter “quality.” ‍ Luckily, all you have to do is read this one article, and you’ll have the answer to that question. Then all you have to do is sign up for Second Nature once, and you’ll never have to think about some air filters ever again. ‍ What type of air filter should I get? Filters can only be made so many ways. For home filters, you have three options. You can buy a pleated filter, you can buy a fiberglass filter, or you can buy a washable reusable filter. Each type has its disadvantages, and two of them have their advantages, so let’s take a closer look at what those are. ‍ Pleated Pleated filters get their name from their filter media, which is the material inside the frame that is responsible for the actual filtering. A pleated filter’s media is folded like an accordion to maximize surface area. Previously made of cotton, the pleated filters of today are built with synthetic polymers that allow for effective filtering while minimizing the impact on airflow. ‍ The advantages of pleated filters include their high filtering efficiency. High MERV filters are almost always of the pleated variety. The pleated filters work to capture an extremely high percentage of large particles and a much higher number of small particles than competing filter types. ‍ Pleated filters are low effort and high functionality. The only thing you ever have to do is remember to change them out, and they’ll keep pulling gunk out of your air. ‍ Fiberglass Fiberglass air filters are the cheapest on the market, sometimes costing less than a single dollar. There is a reason they are so cheap, and it is because they are garbage. Yes, fiberglass filters are garbage. Fiberglass filters are the weakest option and are recommended by the National Air Filtration Association only as “prefiltering” devices because of how ineffective they are. Simply put, they are bad at their job. ‍ There’s a myth that fiberglass filters are better for your HVAC system because they allow for more airflow. While they do allow for that, advancements in HVAC and filter technology have made the difference immaterial. The extensive amount of pollutants they allow to flow through can actually make them more dangerous to your system than the pleated variety. ‍ The reason why fiberglass is often recommended is that people don’t remember to change their filter. As a pleated filter loads with pollutants, it can eventually decrease airflow to a critically low amount. Fiberglass doesn’t do this because of how woefully ineffective it is at actually catching particles. So as long as you’re regularly changing your filters, there is not a single advantage to the fiberglass option. ‍ Washable Electrostatic Washable electrostatic filters are metal-frame filters that are designed to be washed and reused instead of replaced. The price range for these is wide, with the most expensive ones entering the $90 range. ‍ The advantage with these filters is their longevity. While they do eventually wear out, they can be reused for multiple years before that happens. The disadvantage is that you do need to wash them routinely and let them dry completely before reinserting. This can eat into your busy schedule as they don’t dry instantly, and if your washable filter doesn’t fully dry, mold growth can be a real issue. ‍ Washable filters also do a poor job collecting large particles. Because static electricity is really the only filtering mechanism they use, they struggle to attract the larger particles that are more difficult to pull with a charge. Thus, washable filters tend to work in reverse of fiberglass as they let larger particles through and filter out smaller ones. ‍ What quality of filter should I get? After you know what type of filter is right for you, you need to know what rating is right for you. Filters can be rated on three separate scales. The scale used by us at Second Nature and the official folks at the National Air Filtration Association is the MERV scale, which stands for minimum efficiency reporting value. ‍ The MERV scale runs from 1-16. Second Nature offers filters rated at MERV 8, MERV 11, and MERV 13, which are our Essential, Essential+, and Health Shield, respectively. Anything below an 8 is something that probably shouldn’t be in your home. Anything above a 13 is not necessary except for maybe in an extreme case, which is why we offer the range we do. ‍ Other filter scales include FPR and MPR, which stand for Filter Performance Rating and Microparticle Performance Rating. FPR was a scale developed by The Home Depot for the brands that it sells. The scale ranges from 4-10 and includes a color code for each range. MPR was developed by 3M and, it ranges from 300 to 2800. The scale is based on the filter’s ability to capture particles under 1 micron in diameter and is only found on 3M Filtrete filters. Here we have provided a conversion chart with MERV vs. FPR vs. MPR so you can understand what you’re getting if you decide to purchase from somewhere that rates their filters with one of those less popular scales. Deciding on what MERV rating is right for your home is a decision that must be made based on a handful of personal factors. ‍ Are you an allergy sufferer? More than 50 million Americans have some type of allergy. Allergies are everywhere, and if you’re among the millions of Americans who suffer from them, your filter can help you keep those nasty allergens out of your home. ‍ The severity of your allergies will help determine just how critical filtration is for your home. If you have a significant allergy to something that is prominent in your area, you’re going to want to increase your indoor air quality with a Second Nature Health Shield filter (MERV 13) or equivalent level. More minor allergies or allergies to something that doesn’t exist in massive quantities around your home may allow for a drop down to a Essential+ filter (MERV 11). ‍ Do you own pets? Owning a dog or a cat introduces a whole new threat to your indoor air quality: dander. Dander is small flakes or bits of skin that fall off your furry friend when they shed, and some people are violently allergic to it. ‍ If you are among that group, a Health Shield air filter is a must. Pet dander is small, and a MERV 8 filter is likely not sufficient for you allergy sufferers out there, and that fiberglass nonsense certainly is not. Essential+ and Health Shield will both be effective versus pet dander. If you’re allergic, get the MERV 13 Health Shield. If you’re not allergic, but you own pets, the Essential+ will work well for you. ‍ Do you live in a polluted area? Air outside your home will become air inside your home. It is inevitable. No matter how much weatherstripping you install or how well-sealed your home is, there will be particles floating around outside that will get inside. This is particularly important to remember if you live in areas that see a lot of air pollution from things like smog. Those of you in California, as you certainly know already, can get hit pretty heavily with photochemical smog in the summer. The state is often also hit with smoke pollution during wildfire season, which also runs through the summer and fall. ‍ The particles that make up smoke are itty-bitty, smaller than a tenth of a micron. For perspective, you would need at least 3,000,000 of those particles lined end to end to equal one foot. If you frequently encounter smoke or smog around your home, a Health Shield (MERV 13) is recommended. ‍ Still not sure what filter to get? Take our short quiz! Do you have allergies to pollen, dust, mold, or dust mites? A. Yes, severe allergies (add 2) Yes, mild allergies (add 1) No (add 0) Do you own a dog or cat? Yes (add 1) No (add 0) Are you allergic to pet dander? Yes (add 1 if answer to #2 is A, 0 if B) No (Add 0) Do you live in a polluted area? Yes, very polluted (Add 2) Yes, slightly polluted and no smoke or smog pollution (Add 1) No (Add 0) Answers 0 = Essential pleated air filter (MERV 8) 1 = Essential+ pleated air filter (MERV 11) More than 1 = Health Shield pleated air filter (MERV 13) ‍ What size air filter should I get? As the saying goes, there are three things you can’t pick: your parents, your name, and your filter size. That’s a real saying that we did not just make up eight seconds ago. ‍ Simply, you need the filter size that fits in your air return. You can typically find that size on the side of the air filter that you already have in use. This size will be the nominal size, which means it is rounded from its actual size. This is the size you click on at secondnature.com. ‍ If you don’t have a reference point from an old filter, you’ll need to use a tape measure and measure your vent. These measurements will be the exact size, and you’ll need to add ¼” to both length and width to get the nominal size. ‍ If you have a filter that is four inches thick or thicker, you have a whole house filter. There is no rhyme or reason to how these filter sizes are rounded. Luckily, all you’ll need at secondnature.com is the actual size of the filter. ‍ Buying an air filter isn’t always easy, and knowing what air filter to buy is the hardest part. However, if you have read this far, you’re good. So congratulations! Here’s an air filter gold star. You can print it out and tape it to your shirt if you want. You’ll probably get a lot of strange looks, but that’s not your problem.

February 6, 2023

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The Best Pets for Allergy Sufferers

These cats and dogs can sometimes help allergy sufferers. There’s nothing better than cuddling up to your furry friend after a long day. Unfortunately, for some, those cuddles could lead to hours of unbearable sniffles. There is good news, though! Just because you suffer from allergies, it doesn’t mean you have to avoid owning a pet all together. You have many “hypoallergenic” options! Firstly, what causes my allergic reactions? A protein found abundantly in the animal's skin and saliva trigger a person's allergies. When this protein flakes off with skin cells and sticks to the animal’s hair, it's called dander. When a dog shakes, or when you pet them, the dander flies into the air; this is the case with most animals. Shedding of the hair, along with the loose skin cells is what triggers the itchy watery eyes, sneezing, and the all around misery that accompanies an allergic reaction. What are hypoallergenic animals? People often assume hypoallergenic pets never cause allergic reactions, but research has shown that there is no such thing as a truly hypoallergenic pet. All pets will produce and shed dander, but some of them produce less than others. Breeds called hypoallergenic often shed far less than other breeds making them excellent choices for allergy sufferers. The list is lengthy, but here are some examples of hypoallergenic breeds. Cats: Siberian Balinese Balinese Bengal Burmese Colorpoint Shorthair Siamese Russian Blue Dogs: Poodles Schnauzers Portuguese Water Dogs Afghan Hounds Kerry Blue Bedlington Terrier A dog that is a mixture of one or more of these breeds also can be an excellent choice for reducing allergic reactions. Hairless Pets? Just as reduced shedding aids in keeping pet allergies away, so does no hair. Hairless animals indeed do not shed hair, and they are virtually dander free. While some skin cells still flake off and it isn't 100% guaranteed that you won't be allergic to them, they are the best bet. Dog breeds like the American Hairless Terrier, Xoloitzcuintli, and the Chinese Crested are affectionate, intelligent, and very naked. Even cat lovers will find the Sphynx or the Peterbald cuddle-friendly. It's an easy way to spot a hypoallergenic pet at the pound, the one with no hair! Recognizing Non-Allergenic Breeds Adopting from a shelter is always the best way to find a pet. These animals need homes, but how can you tell if they are going to trigger your allergies? The first thing you can do is familiarize yourself with hypoallergenic breeds. This way when you're walking through a shelter, you'll be able to pinpoint which animals look more like non-allergenic breeds. If your allergies aren't life-threatening, you can test the waters with a couple snuggles to see if you get a reaction. Sometimes it's going to take a few days, so don't rest your case upon your first encounter. There's even a hypoallergenic horse called the American Curly Horse, so horse lovers can saddle up and ride into the sunset without sneezing the entire way there. Animal companionship is one of the joys of life, and with these breeds, allergy sufferers can enjoy it the same as anyone else.

February 6, 2023

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The Indoor Air Quality Benefits of Plants

Did you know that certain plants actually help filter out toxins from your home? Your next breath of fresh air is no farther than your nearest house plant—depending on the kind of plant and how many you have. The science behind it is solid: we know plants clean the air. We also know Americans spend about 90 percent of their time indoors. According to the U.S. Environmental Protection Agency, the air inside is often worse than the air outdoors. One reason? Modern, airtight construction that saves energy also allows indoor air pollution to build up. That means Americans spend a lot of time breathing potentially unhealthy air, even though there are ways to filter it. House plants are an underutilized way to make your indoor air healthy again. Here are some of the indoor air quality benefits of plants and how it works. Photosynthesis Let's go back to fourth-grade science class for a refresher on photosynthesis. It's the process by which plants take in carbon dioxide and release oxygen. Using sunshine, water, and the green pigment chlorophyll, the plants strip the carbon from the air to produce glucose, leaving oxygen as a waste product expelled back into the air. What plants consider waste is vital to us. Our atmosphere is about 21 percent oxygen. If it drops below 19.5 percent oxygen, we can't breathe. This is why America’s obsession with green lawns is actually environmentally friendly! Think of it as suburbia's version of the Amazon rainforest. We need plants all over the world to continually release oxygen for us to live. But oxygen production is not the only way plants clean up the air we breathe. They also remove poisons from the air, and scientists have spent decades studying this process. The Landmark Study When you think about scientific breakthroughs, you might think about the discovery of penicillin or the polio vaccine. Thirty years ago, scientists at NASA made another discovery. They found common plants cleaned up poisons such as benzene, formaldehyde, and trichloroethylene. These volatile organic compounds, or VOCs, are common to indoor spaces and can cause anything from skin irritation to cancer. Common daily items that contain formaldehyde include: Insulation Particle board Paper bags Carpet backing Natural gas Benzene is found in: Gasoline Ink Paint Plastic Rubber You’ll find trichloroethylene in: Dry cleaning chemicals Printing ink Varnishes Lacquers Adhesives So basically, one or more of these chemicals are present in just about every indoor environment you encounter. That's a lot of VOCs that you're breathing in, unaware of dangers they may pose. At the time of the 1989 study, NASA was trying to mitigate these chemicals so they could one day seal astronauts in a space station without killing them. The study called plants a "promising, economical solution to indoor air pollution." (And for the record, there have been no deaths onboard the International Space Station, so they clearly figured it out.) ‍ Getting Into The Weeds The gerbera daisy is the pleated air filter of the plant world when it comes to cleaning trichloroethylene and benzene from the air. The plant removed most of both chemicals out of all the plant species tested in the original study. The NASA study lists how each of the plant species performed during research. The pot mum and peace lily ranked second and third on the list of plants that remove the most benzene. Marginata (aka dragon tree) and peace lily ranked similarly on the list of plants that best remove trichloroethylene. The top three formaldehyde removers, in order of how many micrograms each plant removed from the air, are: Bamboo palm, which cleaned about 76,700 mg of the chemical per plant Janet Craig Mother-in-law’s tongue, also known as the snake plant Newer Studies Twenty years after the first indoor plant study, the American Society For Horticultural Science (ASHA) published a follow-up study. Researchers tested 28 plant species for their ability to cleanse the air of dangerous chemicals such as benzene, toluene, octane, trichloroethylene, and terpene. The CDC says toluene, an ingredient in paints, nail polish, and gasoline, has adverse impacts on the brain and nervous system. Octane is an eye and respiratory irritant. This newer study also found that indoor ornamental plants remove these harmful chemicals. But there are a lot of variables. For example, are the plant and chemical in a sealed container or in an open room? Researchers behind the ASHS study concluded: "Plants also have the potential to significantly improve the quality of indoor air." ‍ Here are the top five chemical removing house plants, according to the ASHS study: Waffle plant English, or common, ivy Purple heart Asparagus, or foxtail, fern Wax plant More studies need to be done to figure out what combination and how many house plants you need to remove any given amount of indoor pollutants. If the past studies hold true, plants, in general, are an excellent idea. The year after the ASHS study was published, scientists at the National Center for Atmospheric Research (NACR), found plants and trees absorb more air pollution than initially thought. About one third more, in fact. NCAR's outdoor study found that the denser the vegetation, the more volatile organic compounds are absorbed. There is some controversy around applying this study to the indoors. Still, it at least emphasizes the point that plants do indeed clean the air. The more plants there are to absorb the poisons, the more significant the effect. A Breath of Fresh Air The consensus right now is that you'll need a LOT of indoor plants to make a big difference in the quality of the indoor air you breathe. You could live or work in a greenhouse, and the plants still wouldn't replace modern ventilation or HVAC systems. But if you use indoor plants in conjunction with air cleaning technology, you'll get the most out of nature and innovation. A review published in Trends In Plant Science suggests house plants, combined with air filters and smart technology, clean the air. Consider creative ways to incorporate plants into your indoor space—such as a boxwood hedge wall, or a container garden of gerbera daisies. If you have the room, think about bringing in a banana plant to frame the room with its graceful, chemical-eating leaves. Or consider a vertical garden, where you can arrange English ivy and purple heart along with gerbera daisies from top to bottom. How Clean Is Your Air? There are still questions about how much indoor ornamental plants clean up the air. Some of the variables include the dimensions of your environment and how many chemicals are in the air. That can fluctuate, depending on how the space is used. You also need to take into account how close it is to industrial sites or heavy traffic, or even how many people in the room are wearing dry cleaned clothes. These are all things to consider if you're using plants to purify the air in your office or your home. Modern technology leads to more air pollution and less time to spend outdoors. With the right plants and the right air filters, you can take control over what you breathe. Think of it as breathing right. Most people try to eat right, minimizing the bad stuff and trying to eat more natural foods. So why wouldn't you watch what you breathe too? Those house plants in your window or your office space remove harmful toxins from the air. If you increase the number of plants you have, add plants that remove bad chemicals, and change your air filters regularly, then you and your family will breathe easier.

February 6, 2023

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What Type Of Air Filter Should I Order?

There's a lot of options out there, not all of them good. There's a bewildering range of different air filter types out there and it's easy to get confused. We have done the homework for you and simplified the process so you can make the right choice. ‍ First things first: Economy fiberglass filters compared to pleated filters. ‍ There really is no comparison to be made. Cheap fiberglass filters are usually sold in multi-packs for a few bucks and, in this case you definitely get what you pay for... very little quality. They are not efficient for two reasons. ‍ The relatively open weave of the fiberglass mesh does not filter out much dirt at all and the micro-particles and contaminates present in your home just get sucked through the filter and into your HVAC system. Over time, the inside components of your HVAC equipment and the air ducts get coated with crud and your system can't work at peak efficiency. This means higher energy bills and expensive sanitizing and repair bills. ‍ In short, this cheap type of filter doesn't filter very well at all and you won't find them here at Second Nature. If you are in the habit of buying them it's a habit you should break! ‍ Pleated filters are the only way to go. We only offer reliable, good quality pleated filters, which are made right here in the USA. They are up to 60% more efficient than fiberglass and have a denser, larger surface area (imagine the pleats ironed out flat) that ensures better filtration. But remember, these higher grade filters are more efficient at capturing the bad stuff and by doing a better job they get dirty quicker. That's good news … not bad news. They are both more efficient and faster at doing what they are supposed to do. ‍ Picking the grade of filter. Much of the information in the 'How often should I change my filter?' section also applies to the grade of filter you should choose. The number of people, pets, and any allergies will need to be considered. Also, the possible presence of smoke, smog, and microscopic contaminants that may carry odor usually call for a higher grade of filter to trap the smaller stuff. ‍ We have simplified your filter choice. Good, Better. Best. Our three grades of filter, Essential, Essential+ and Health Shield are simply categorized as 'Good', 'Better' and 'Best'. They each do a great job in different home environments. One of them is just right for you. ‍ Essential. Good. This filter easily takes care of the basics such as dust, pollen, pet dander and virus carriers whilst allowing a good airflow through the HVAC system. ‍ Essential+. Better. Our most popular filter also offers good airflow but better filtration than the Essential. In addition to the basics, it captures smaller particles, smoke and smog. If anyone smokes tobacco in the home or the kitchen is a busy cooking area (are your smoke detectors always sounding off?), Essential+ is the right filter for you. ‍ Health Shield. Best. This is the most powerful and efficient filter in our line-up. The Health Shield traps all the contaminates the other two filters do, but also snags lead dust, oil smoke, and most importantly, microscopic allergens … some of which are 20 times smaller than a grain of salt! If anyone in the home suffers from allergies or serious respiratory problems such as asthma, this filter is a 'must.' ‍ The denser filter media and more efficient filtration mean slightly less airflow than the other two grades and it will need to be changed more frequently. In return, you will be rewarded with the reassurance of sustained, super-fresh indoor air quality similar to hospital standards. If you want the best, definitely go Health Shield.

February 6, 2023

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How To Recognize Indoor Air Pollutants

Indoor air pollution can actually be much worse than outdoor air pollution. While the majority of Americans recognize the dangers of outdoor pollution sources such as vehicle emissions, most people are unaware of the risks posed by indoor pollution. According to the American Lung Association, half of Americans live in counties with unhealthy levels of ozone or particle pollution... because Americans spend 90% of their time indoors --and up to 65% of that time at home-- it’s important to safeguard indoor air. ‍ The Environmental Protection Agency stated, “Indoor air pollutants have been ranked among the top five environmental risks to public health. The problems they cause can be subtle and do not always produce easily recognized or immediate impacts on health.” Poor indoor air quality can cause both short-term and long-term health problems. Short-term problems include headaches, tiredness, dizziness, and irritation of the eyes, nose, and throat. These symptoms can usually be treated when the source of the pollution is removed from the home. Long-term symptoms are more severe and can include respiratory diseases, heart problems, and even cancer. ‍ Indoor air quality problems stem from three main categories: ‍ Sources of Pollution The most common pollution sources are particles or gases that are released into the air. Other pollution sources include dust particles from old furniture, mold, and toxic products used for household cleaning. Because most of these particles and gases are invisible, homeowners are usually unaware of an indoor air quality problem within their home. Individuals can hire professionals or buy a home air quality test kit in order to find out if they have any problems with their indoor air quality. Homeowners should also have a professional test their home for radon gas, since the colorless, odorless gas is the #2 cause of lung cancer in the United States. If there is an indoor air quality problem, remove the pollution sources. The Environmental Protection Agency states, “The most effective way to improve indoor air is to eliminate individual sources or reduce their emissions.” Removing pollution sources may range from banning indoor smoking to cleaning up mold to getting rid of toxic cleaning products. ‍ Inadequate Ventilation According to the U.S. National Institute of Occupational Safety and Health, improper ventilation is another leading cause of indoor air quality problems. If outdoor air is not coming in to freshen old air and lower indoor pollutant levels, indoor air will quickly become filled with unhealthy pollutants. The American Lung Association suggests, “Make sure the ventilation system is working correctly and that air flow is not blocked.” The EPA adds the following steps: “When weather permits, open windows and doors, or run an air conditioner with the vent control open. Bathroom and kitchen fans that exhaust to the outdoors also increase ventilation and help remove pollutants.” They also recommend changing air filters regularly to remove dust and other pollutants from the air. ‍ High Humidity Levels High humidity is also a common cause of indoor air quality problems. High humidity makes the air moist, which increases the risk of mold. As a result, indoor humidity should be kept between 30-50%. Use a humidity gauge to make sure indoor air is at a healthy level. Decrease humidity by opening windows or turning on the air conditioner. ‍ The United States Consumer Product Safety Commission wrote, “Indoor air pollution is one risk you can do something about.” Take proactive steps to remove pollution sources and maintain ventilation and humidity levels in order to protect the quality of indoor air.

February 6, 2023

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What Type Of Air Filter Should I Order?

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