Wear and tear is a phrase used often in the property management industry. Used to describe the normal deterioration of a property over time, it's often pointed to by tenants moving out and eager to get their security deposit back in spite of damages. Just what is "normal" wear and tear, though? Scott Safadi of Cal Bay Property Management urges all property managers to understand the difference between wear and tear and actual damage.
Everyday use of any item can result in a slow deterioration of its value. Even when treated with care, an apartment can show signs of aging and use after even a few months. Normal signs of wear and tear include small stains on the carpet, dirty grout, sun-lightened carpet near windows, loose door handles, dings to the hardwood floor and silver finishes slowly beginning to wear away on fixtures. Damage, on the other hand, is a lot more obvious. They're the things that jump out at you, like broken window panes, holes in the walls, a smashed mirror or a carpet that stinks of pet urine. These kinds of damages aren't considered normal because frankly, they're easily avoidable. Tenants with these kinds of damages can and should be held financially responsible for the impact they've had on the apartment. Of course, differentiating between normal wear and tear and actual damage isn't easy. For every obvious form of damage like a smashed mirror, you have things like holes in the wall from mounting a TV to chipped paint from hanging photos. Like most tough decisions you'll make as a property manager, determining what qualifies as wear and tear versus damage may simply come down to your discretion. Why bother understanding the distinction? It'll come in handy when your tenants decide to move out. Their security deposit depends on the condition in which they leave their unit. By having a thorough understanding between what constitutes damage versus what's just normal wear and tear, you can make just decisions about your tenant's security deposit. Fail to do so and you could find yourself fighting an uphill battle against a tenant scored. - Scott Safadi, Cal Bay Property Management
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Real estate trends come and go, but as home automation evolves and becomes more mainstream, it's worth paying attention to the innovations that can withstand the test of time. One such trend is that of video door bells. They've been on the market for several years and show no sign of losing popularity. In fact, video door bells are only becoming more advanced and ubiquitous. Scott Safadi of Cal Bay Property Management recommends them to property managers concerned with security and eager to dip their toe into the home automation realm.
Why start with video door bells? For one, they're fairly easy to learn to use. Unlike other more complicated home automation tools, video door bells use technology most of us are already comfortable using. A smartphone app and a video camera are tools most people use on a daily basis anyway. Tenants will see a video door bell as an asset, not something they need to learn to master over time. They're also affordable. Whether you're setting up one for a single rental unit or installing them across a multi-family property, video door bells are an easy investment. They're of even greater value when you factor in the increased security you'll be able to offer your tenants. Consider how many packages have been stolen off of doorsteps over the years and then consider how grateful your tenants would be if you had footage of the misdeed! This increased peace of mind is priceless. As we consider the future of property management, the need to protect both human lives and our investment is critical. Though a video door bell may not seem like a necessary investment, it's the kind of technology that tenants are going to be seeking out more and more. As an early adapter, you'll be able to appeal to all kinds of demographics who are eager to live on the cutting edge. Anyone hoping to set their property apart from competitors should seriously consider investing in this kind of technology. - Scott Safadi, Cal Bay Property Management Real estate trends come and go, but as home automation evolves and becomes more mainstream, it's worth paying attention to the innovations that can withstand the test of time. One such trend is that of video door bells. They've been on the market for several years and show no sign of losing popularity. In fact, video door bells are only becoming more advanced and ubiquitous. Scott Safadi of Cal Bay Property Management recommends them to property managers concerned with security and eager to dip their toe into the home automation realm. Why start with video door bells? For one, they're fairly easy to learn to use. Unlike other more complicated home automation tools, video door bells use technology most of us are already comfortable using. A smartphone app and a video camera are tools most people use on a daily basis anyway. Tenants will see a video door bell as an asset, not something they need to learn to master over time. They're also affordable. Whether you're setting up one for a single rental unit or installing them across a multi-family property, video door bells are an easy investment. They're of even greater value when you factor in the increased security you'll be able to offer your tenants. Consider how many packages have been stolen off of doorsteps over the years and then consider how grateful your tenants would be if you had footage of the misdeed! This increased peace of mind is priceless. As we consider the future of property management, the need to protect both human lives and our investment is critical. Though a video door bell may not seem like a necessary investment, it's the kind of technology that tenants are going to be seeking out more and more. As an early adapter, you'll be able to appeal to all kinds of demographics who are eager to live on the cutting edge. Anyone hoping to set their property apart from competitors should seriously consider investing in this kind of technology. - Scott Safadi, Cal Bay Property Management Most people spend their formative years in the classroom, studying, taking tests and working to prove themselves. Making good grades is important, as these achievements allow you to reach your goals and go after the career of your dreams. After you get that dream job, though, it can be tough to push yourself to learn new things. Without the structure of a classroom and a degree to chase, it's difficult to convince yourself that professional development is necessary. The reality, though, is that nobody knows it all, and as the property management world evolves, you'll need to keep abreast of changing trends. Scott Safadi of Cal Bay Property Management recommends joining the following professional organizations to keep up with the times:
The National Association of Residential Property Managers If you operate a single family or small residential property, this is the group for you. With globally recognized certifications, NARPM publishes an annual State of the Property Management Industry report at their conference. Full of helpful statistics and insight, this report can help you better understand your role in greater context. No matter how big or small your property, NARPM can help you better serve your tenants. The Institute of Real Estate Management This international organization boasts more than 20,000 members and features amazing networking opportunities for property managers. There are professional development workshops, certifications and training opportunities. These workshops are frequently offered online, making it easier than ever to stay on top of your game. The National Apartment Association Featuring support, education and training for their 75,000 members, the NAA places an emphasis on philanthropy. They routinely take the temperature of the industry, giving members valuable insight into what might lie ahead in the next quarter or two. Their website features unique, helpful tools, including one designed for surveys and one for budgeting. Building Owners & Management Association Created with commercial property owners and managers in mind, BOMA features monthly regional luncheons, a job board, publications and custom training programs. BOMA's magazine offers a wealth of useful information, keeping you informed about incoming and outgoing trends in the industry. Whether you decide to join one or all of the above professional organizations, your commitment to learning will make you stand head and shoulders above your peers. Even better, the opportunity to network in these communities will provide you with the relationships necessary to continue growing your skills. Membership into any of these groups is a fantastic resume builder, too! - Scott Safadi, Cal Bay Property Management As property managers, we must constantly reflect upon our actions to ensure we are not violating the law or general rules of etiquette. It's not only what makes a person a good landlord, it's what constitutes being a decent person. As Scott Safadi of Cal Bay Property Management can attest, understanding your rights as a landlord can ensure you keep your tenants and your staff happy. One issue that comes up frequently is the policy of entering a unit without warning. Doing so risks your good relationship with your tenant. On the other hand, ignoring a potential maintenance problem until you can warn the tenant can also lead to serious damage. So what's a landlord to do?
For starters, look up the local laws in your area surrounding this issue. In most states, landlords are required to give tenants a warning within a reasonable amount of time of entering their property. Defining reasonable, however, isn't always straightforward. In Louisiana, for example, landlords need only provide advance notice in the form of a knock on the door. If no one answers, they may use their key to enter. How's that for reasonable notice? It's also important to consider why you plan to enter a tenant's unit. If there's a maintenance need and your team needs to get in to solve a problem, a tenant would be hard pressed to find a reason not to let you in. On the other hand, if you're searching for a reason to throw out a problem tenant, your presence in their apartment could be seriously problematic. By having respect for the law and your tenant, you ensure you're on the up and up. If your tenant has taken issue with you entering their property without warning, consider having an honest conversation with them about why you need to do so. Come up with a reasonable solution that can make both parties comfortable. If you need to access someone's property, keep the golden rule in mind. Treat your tenants the way you would like to be treated, and you'll be surprised at the respect you get in return. Scott Safadi, Cal Bay Property Management Human communication is ever-evolving. From the telegrams and morse code of yesteryear to the Snapchats and Facebook messages of today, the way we communicate with one another can say a lot about the things we value. Of course, as the way we chat with friends and family off the clock changes, so do the ways we communicate at work. While your staff may be on a text basis with one another, texting your tenants is a different story. Cal Bay Property Management's Scott Safadi recommends practicing caution when determining whether or not to text your tenants. Why? Because texting can be a bit like opening Pandora's Box. Text a tenant to let them know they have a package to pick up in the office and you may soon receive replies not about their delivery, but about their air conditioning unit going out or their neighbor throwing a party. Texting is a two way street - at least until it isn't. There are services that can act as a go-between you and your tenants and still offer many of the same conveniences as a text. Rather than associate your personal or even business phone number with a text, send reminders to tenants to pick up packages or to pay their rent from a third-party app. Should tenants try to text back, they'll be reminded that no human is actually monitoring replies and that any questions should be directed to your office. Of course, these kinds of alerts work great for certain kinds of messages, but not all. If you have a sensitive topic to discuss, like a late rent payment, getting a text about it can feel impersonal, especially if it's run through a third-party app. Rely on such a service and you risk alienating a tenant over something that might normally have been a run-of-the-mill conversation. So should you text your tenants? Ultimately, the call is yours. As we rely more and more upon digital forms of communication to chat with friends, family and colleagues, it makes sense that our discussions with our tenants go that way too. Because property management professionals are used to exercising caution when it comes to tenant communications, we tend to be overly careful about adopting new technology in that space. As long as you trust your instincts and leave the sensitive discussions for phone calls or in person chats, texting is a fine opportunity to keep your tenants in the loop. - Scott Safadi, Cal Bay Property Management |
AuthorScott Safadi leverages extensive experience in the real estate industry to serve as the CEO of Cal Bay Property Management (CBPM), which he founded in Palo Alto, California. Archives
January 2020
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