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Marketing and Property Management

BY Dick Jonilonis 

            Much progress has been made in the last five year in regards to Property Management software and the very important function of marketing. As property managers (Fee Based), we usually consider marketing directed at two separate entities/

We market our services to the owners of investment properties based on the management functions and associated cost we can provide for the property and it’s owner.  Those functions include the accounting/ bookkeeping, the tenant management, maintenance management, and the marketing management.   When to the owner,  all of the above functions should be represented in the marketing / promotion package.   Sample reports , including basic and optional financial reports, tenant /unit based reports,  i.e. a rent roll,  unit maintenance /  work orders, 

This marketing tends to be quite customized. It is based on the type of properties, and in some cases the owners. There are ample opportunities for niche marketing based on owner type of properties i.e. SFR, Condos, apartments commercial, rental office, HOA, mini storage, marina, mobile home parks, industrial etc. It is readily apparent however, that many of these potential markets, need customized options re the type of management that must be available in the software. It is also apparent that management experience is necessary to successful management. It helps to be associated with associations that cater to the residential on commercial property owners.

            It is appropriate to utilize marketing materials that showcase the management policies, standards, terminology, and reporting common to the property type. It is also appropriate to be wary of some marketing policies which when adopted may generate risks and conditions not in accordance with DRE regulation. i.e., inappropriate policies, which allow balances to go negative when a tenant bounces a rent check. This situation deteriates further when the property manager prepares an owner draw check before the rent check clears the bank, thus creating another bounced check on the owner draw.

            It is also appropriate to provide optional reports which may be of special interest to some owners, many of the property management systems today allow property managers to create unique report grouping, which can be provided at any time. Traditionally optional reports i.e. added reports on different regular schedule, quartile, semi-quarterly etc. Were a problem because of the extra preparations and procedures. Today some software has resolved the problem with macro and speed limits.

It is not uncommon to hear about some special reports that the owner wants because he has always had one. It seems not to matter that the report may be useless, inaccurate, and on available in different report format. It is possible that rational thinking, logic, and strong recommendation from an important source accounting wife may allow that report to be done away with, but it is more likely the owner will demand that the report the report will continue to be prepared.

            When marketing it is an excellent idea to have the CPA/ accountant of the owner preview the reports and approve them, keep track of the owners who can be provided enthusiastic referrals re: your property management services, and establish high quality referral lists is the easiest materiel of acquiring new contracts.

            Pictures of properties and units can be used to show owners what your property looks like, how well they are maintained and how they are marketed to tenant prospects. It can also be shown about properties that are marketed, this way will often provide more income since marketing can start immediately and not be deferred until the unit is rent ready.

            Other important marketing tools in property management systems involve the creation and use of applicant records. Some systems provide additional information, which identifies the effectiveness of various marketing media. In a low vacancy market it is likely that low/no cost mediums, i.e. signs, Internet, tenant referrals, may provide enough quartile tenant prospects that high cost mediums, newspaper ads are no longer required. Some mediums will also provide prospects that have higher education and finical recourses.

            Property management software that provides maintenance management retinues that can be identified on another marketing management tool reports. Lower costs for on going ops and unit history reports that we of value to the owner in marketing and closing of escrow i.e. buyers appraisal ledger.

            Maintenance operations and reporting are also creating unit / property maintenance history records. The availability of these records in the future will provide impressive detailed documentation as to the actual condition of the units/property/including unit assets, refrigerators, stoves, water heater, air conditioners etc., to the prospective buyer, appraiser, and lender. It also provides an excellent set of start up balances for the buyer’s accountant.

            The other main focus on marketing is directed at prospective tenants. Property management software can also be used in a number of ways to enhance traditional marketing of properties to prospective tenants but also provides new technologies in which in some cases is expected among some tenants prospects. Property management software that provides the ability store pictures/ floodplains of properties and units provide distinctive advantages to prospects, staff and owners. The picture can be placed on Webster and or presented in an office in le of traditional meet and meander walkthroughs, which involve meeting the prospect at the office and then going to the unit or meeting at the property/unit directly. The latter method is ineffective time wise and can be personally dangerous for the staff. The use of the Internet and picture walk through has reduced the use of traditional newspaper advertisements and the associated advertising costs. It also tends to draw higher educated and more affluent tenant prospects. The use of digital pictures, scanned or GIF/JPEG image compression, also provides the brochures quickly and inexpensively and to rent faster as a result of not having to wait on rent ready units. This is of course result in higher occupancy rates and more income for you and the owner. Pictures taken after a move out can also secure a higher likelihood of a successful legal action in small claims court for the property manager and / or owner.  

Send mail to robertc@pmsoftwaresolutions.com with questions or comments about this web site.
Last modified: 03/26/08