The six fundamentals to PM excellence

Yesterday we looked at the six fundamentals you need to address to build property management excellence, and they are:

1 Showing prospective tenants properties
2 Processing tenancy applications
3 Signing leases
4 Inspections during the tenancy
5 Rent reviews
6 Lease expiry/renewal

So let’s look at fundamentals 1 – 3, which are the lead up to the start of a tenancy. Really when we look at the dramas and stress that property managers experience everyday this is the place where all the problems start.

If you get it right at the start you are going to attract better tenants, have a lower vacancy rate and a guaranteed better work environment – simply by removing the dramas from your working day.

Let’s look at each fundamental and update your procedure and create a script for each. To help you I have created a checklist for each to help you deliver Property Management Excellence

1 Showing prospective tenants properties
-    How do you meet and greet over the phone, in the office, at the property, by email?
-    How do you conduct the inspection?
-    How do you confirm inspections?
-    What information is given to prospective tenants?
-    What controls do you have in place to minimise misunderstandings?
-    How do you make sure that you have the right keys and all the information about the property?
HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Let’s break your present inherited or self imposed rules!

2 PROCESSING TENANCY APPLICATIONS
-    What do you tell prospective tenants?
-    What are your application requirements?
-    Do you have a minimum application turn around time?
-    Who processes the applications?
-    Who approves or declines applications?
-    What is said to declined applicants?
-    What standard forms do you use?
-    Where is all the application paperwork kept in your office?
-    How do staff know that an application has been received, reservation fee taken and lease signed?
-    How do you tell the owner about accepting/declining an application
HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Let’s break your present inherited or self imposed rules!

3 SIGNING TENANCY AGREEMENTS
-Do you make an appointment time for the agreement to be signed, if so, how? If not, why?
-Where in the office is it done?
-Does the tenant know what monies to bring?
-How long does the sign up take?
-What points do you cover and what do you inform the tenant?
-What information does the tenant leave the office with?
-How do you ensure that all documentation is ready?
HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Lets break your present inherited or self imposed rules!

If you can’t get the basics right before the agreement is signed, what message do you think you are sending to your intending tenants? And remember that these days increasing numbers of tenants are also property investors, so you are being judged on two fronts and don’t even know it. Get the basics right before the tenancy starts and you have begun to create and deliver Property Management Excellence.

Let’s look at during the tenancy – steps 4-6.

If you get your “in tenancy” basics right, your landlords will see you as a true Property Management professional and not doubt your capabilities and will recommend you to other investors.

In the eyes of your tenants are you the consumate Property Management professional, or are you viewed otherwise?

Your in tenancy fundamentals to revise are:
4 INSPECTIONS DURING THE TENANCY
-How often do you conduct them and why do you conduct them so frequently/infrequently?
-What time of the day/day of the week do you conduct them?
-How do you use your software to streamline the process?
-What type of letter do you send to the tenant and is it mail merged?
-How do you arrange the inspection?
-How long does each inspection take?
-What do you do if the tenant wants to vary the time?
-How do you report to the owner?
-What happens or is said if the tenant needs to rectify something?
 HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Let’s break your present inherited or self imposed rules!

5 RENT REVIEWS
-How often do you do them?
-What systems do you have in place & do you use your trust software to the best advantage?
-How do you determine if the rent increases or stays the same?
-How do you inform the landlord?
-What letters do you send to the owner and the tenant?
-How do you ensure that future reviews are undertaken?
-How do you know that all rents in your department are being reviewed in the same manner?
HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Let’s break your present inherited or self imposed rules!

6 AGREEMENT EXPIRY/RENEWAL
-How often do you follow up pending expiries?
-What systems so you have in place. Do you use your trust software to the best advantage?
-How do you determine what agreements should be renewed?
-What do you say/recommend to the landlord?
-What do you say to the tenant?
-What about costs? Who pays & when?
-How and when is the landlord informed when the agreement is signed?
-How and when is the landlord informed if the tenant doesn’t sign despite saying they will?
-What steps do you have in place for future renewals?
HINT: what are you presently doing that can be changed to save you time, streamline your procedures, get results and deliver excellence? Lets break your present inherited or self imposed rules!

As I said before, the above may sound basic or trivial, but if we are honest with ourselves the above are the areas that cause Property Managers the bulk of our daily dramas, hassles and stress – and they all are easily fixed –all you need to do is revise revise & get Property Management Wise.

By completing the pre-tenancy and in tenancy fundamentals checklists above, you will be streamline your department and will be on the way to delivering Property Management Excellence.

By revising your procedures and documenting what everyone in your department is doing and saying you are getting a consistent message across to your public – that you are a Property Management professional and that you are delivering Property Management Excellence.

About Colin Rodgers
Colin Rodgers is the general manager of property management of McGrath Property Management Cronulla and is a property management trainer. Colin can be contacted on 02 8536 3470 or This email address is being protected from spambots. You need JavaScript enabled to view it.