Key performance indicators (KPI) are the crucial characteristics of success in any business, including property management. There are several of them, and they all provide successful performance for any company. Though there exist several classifications of KPIs, the most common ones include the following nine indicators. They are tenant satisfactory rating, tenant retention, certificate of insurance compliance, efficiency, revenue, expense management, work order completion rate, incidents resulting in a financial loss, and inspection completion rate (Building Engines, 2020). All these KPIs are achieved by precise and well-coordinated teamwork, on which depends the success or failure of the company. To ensure successful KPI performance, the team members should put the clients and their safety as a primary concern as well as be aware of current property market trends and innovations.
The Importance of Rules in Property Management
“If employees are not up to date on all of the issues, the owners and/or managers can find themselves at considerable risk and are subjecting themselves to both legal proceedings and financial penalties.” The quote stresses the importance of employees’ awareness of current rules and legislation on property management. If they do not pay attention to the issue, the owners risk losing their money and property, and property managers or the business, in general, may face legal prosecution. Hence, it is necessary to constantly ensure the employees’ knowledge of the property management rules and conduct different trainings to improve their skills and test new hires on the subject as well. To do that, the leader may either enroll his employees in courses on property management that are conducted by high-scale companies and specialists with impeccable knowledge and reputation in the sphere. In addition, he may ask his employees to share their knowledge and experience with new hires by making some of the mentors that control new employees’ performance and help them understand the specification of the industry.
Top Tenant-Landlord Laws Property Managers Should Know
The most significant laws every property manager should be familiar with are Fair Housing Act and Landlord-Tenant Law. The first one was adopted in 1968, and it prevents the landlord from discriminating against his further tenants on race, sex, age, or other characteristics (Renal Law, n.d.). It ensures that potential tenants will not face any discrimination from the landlord or property manager they work with. Landlord-Tenant Law claims the mutual responsibilities of both parties. Both laws are needed to avoid possible misunderstandings and resolve disputes between the landlords and their tenants. It is the property managers’ responsibility to introduce the legal part and implications of the deal as well as to explain them to both sides.
Prime Locations for Real Estate
There exist several factors that make a particular location prime real estate, and many wealthy people are ready to invest money in commercial real estate. In that case, they get the net rental income as a return on their investment. Hence, they pay special attention to the tenant’s solvency. However, the investors should carefully regard the factors that make the property Prime real estate in order to make revenue. There exist several factors they should take into account. The most important one is the location, as the place should be in the central area of the city so the tenants will have access to all the services they need. In addition, there are the facilities, the materials used during the construction, and the construction company’s history. If the investor ignores these factors, his investments may not recoup.
Roadblocks to Real Estate Valuation
There are several factors that may prevent investors from a successful investment deal when it comes to property management. One of the most important of them is not paying attention to major positive and negative changes in the real estate market. Thus, both the real estate boom and credit crisis may prevent the investors from conducting a successful investment deal. This roadblock may be overcome through careful analysis and constant monitoring of the real estate market situation. The investor should not conduct a deal if he does not have explicit information either about the object or about the situation at the market. He should also walk away from the deal if he doubts the reliability of the company he was going to collaborate with.
Technology and Property Management
Technology has significantly facilitated the process of property-related business. There exist a lot of tools that may be useful for the tenants, landlords, or property managers. For instance, Buildium is a software that was established in 2002 to help property managers control every aspect of their business and manage it (Retrieved December 13, 2021, from https://www.buildium.com/about-us/ ). In addition, the service helps the tenants find accommodation according to their needs and provides them with the support of its managers. The tool is useful for the property business as it suggests software solutions that may be useful for property managers. Its usage facilitates their work and increases their companies’ revenues and efficiency at the same time.
Real Estate Investing Clubs
Real estate clubs are formed by those and for those who want to invest in real estate. There exist many of them, and every investor may choose which one’s policy he likes the most. For instance, New Wealth Advisors Club (NWAC) suggests not only investing in real estate but the education on the point as well (Retrieved December 13, 2021, from https://www.newwealthadvisorsclub.com/?gclid=CjwKCAiA-9uNBhBTEiwAN3IlNGS4_-gXz5YHhwrumg9ZuJQmeFMecmu5XGHZrQA-iyrp2D9Adq4RshoCqRIQAvD_BwE ). The club members conduct successful investment deals and teach other people real estate investing. Another club, Atlanta REIA, helps the investors understand the legal implications of real estate investments and, thus, avoid any possible risks when investing their money in expensive housing (Retrieved December 13, 2021, from https://atlantareia.com/ ). Hence, joining real estate investing clubs helps investors conduct their deals safely and without the laws’ violation.
References
Atlanta REIA. (2021). What’s happening at Atlanta REIA.
Buildium. (n.d.). About us.
Building Engines (2020). 9 KPIs that matter for property managers. Busines Engines.
NWAC. (n.d.). New wealth advisors club.
Rental law. (n.d.).