Why Landlords Should "Go Digital"
If you are reading this post, you are well on the way to becoming a landlord who understands and appreciates digital property management. You have already built a good foundation for doing business on the internet. You’ve searched for locations of restaurants or shops that interest you. You have undoubtedly ordered at least one gift online. You’ve probably made some hotel reservations or purchased some airline tickets through a travel website. So, consider yourself ready to take the next step. Read on to learn a few tips about property management online.
Who wants to go digital with managing their rental properties?
Maybe that would be you. Are you someone who needs accurate records of all your communication and business transactions? Do you want to protect your investment from careless errors? Would you like to justify a higher rental fee by providing an extra layer of security for your tenants? Did you know that online promotion of rental properties works more effectively than “For Rent” signs and newspaper ads?
Perhaps you are indeed a landlord who could appreciate the benefits of digital property management. Please continue reading to uncover ways to take advantage of these and other property management tips.
Can software make quick work of communication and record-keeping?
The short answer is, “Yes.” You will be able to streamline the process of reaching potential renters, screening them, completing documents, and collecting rent. Whether you choose a suite of software applications or select a property management service, you can simplify your work using technology. You will create a set of document templates that make communication with prospective tenants almost effortless. Each letter and document can be personalized according to the facts about the property and needs of the tenant. Applications, leases, reminders of rent due dates, even requests from tenants for repairs can all fit into the online scenario.
Some documents will require official signatures, but there’s an app for that, too. DocuSign and Adobe are two popular e-sign applications that produce legally binding signatures.
You will also find a variety of software products that collect all the income and expense data you will need. Online rent payments and payments to vendors generate entries in the accounting software, and those entries feed into end-of-year reports. Or, you can also develop month-to-month status reports.
Do smartphones and smart technology give landlords a competitive edge?
The combination deals a winning hand to the landlord with a digital property management plan. Security cameras, electronic locks, smart lights, digital thermostats, smart smoke detectors, and smart burglar alarms give tenants a sense of security. These devices can help your tenant save on utility costs while giving them that added safe and secure feeling. Parents of college students appreciate the extra layer of security. They rest more comfortably knowing that their offspring has a fallback plan for forgetting their keys and protecting against intruders.
From the landlord’s point of view, these features provide more than smart technology with benefits for the tenant. They give you the comfort of knowing that if something goes terribly wrong, the system will alert someone to respond quickly. Best of all, they add a dollar value to your rental rate.
Is hi-tech the only game in town?
Not exactly. Well, not yet anyway. Still, you should consider the lifestyle of your potential tenants. If you are targeting a senior citizen market, you will likely find that they are not only content with mailing a rent check and calling on the phone to request service, they actually look forward to doing those things. They have checkbooks, envelopes, stamps, and a leisurely routine.
On the other hand, if you want to attract younger adults, expect them to be very tech-savvy. They will surely hope for a landlord who takes a digital approach to the whole rental relationship. They will undoubtedly hope to do business the simplest way possible; and for them, that’s online. They will probably take a dim view of mailing checks, faxing documents, or having phone conversations.
The trend, even among the seasoned citizens, definitely points to more technology-driven transactions. Since products and services improve continually to meet rising demand, you will find that property management products and services are also improving. You may even find that going digital is a strategy that saves time and even reduces stress.
Is your schedule packed to the hilt already?
Does being a landlord in this digital age crowd your planner leaving precious little time for family, community projects, and recreation? Perhaps you could benefit from having a conversation with one of the members of our property management service team. If so, we would enjoy visiting with you about the various services we offer landlords like yourself. We hope you will take a minute to look through the many helpful ideas that our website offers for landlords and potential renters. Here’s a link to one of our blog posts that might interest you.
How Landlords Can Save on Utility Costs
Go Through your Rental Property and Change the Lightbulbs
One of the quickest and easiest ways to lower your operating costs is going through the entire rental property and replacing all of the current light bulbs with new, energy-efficient bulbs.
Instead of the traditional 40 or 60 watt lightbulb, one of the property management tips you should stick to is stocking your rental property with light-emitting diodes (LEDs) lightbulbs or compact fluorescent lamps (CFLs) lightbulbs. Yes, the lightbulbs cost a little more when you purchase them, but since you can expect to save about $37 each year per lightbulb, you’ll enjoy a quick return on your investment. There’s nothing like a little instant gratification to get you excited about embarking on even more money-saving projects.
Don’t stop once you’ve replaced the lightbulbs in the rental property. Once the interior lightbulbs are changed, it’s time to go to work changing the exterior lightbulbs.
Invest in a Programmable Thermostat for your Rental Property
Now that you’ve updated all of the lightbulbs in the property you manage, it’s time to make another trip to your favorite DIY store and pick up a programmable thermostat. The great thing about a programmable thermostat is that not only does it keep your tenants happy and comfortable, but it also reduces your monthly heating and cooling bills.
Once you’ve installed the programmable thermostat, you want to feed it the information needed so that it keeps the rental property comfortable while people are home, and reduces the amount of energy used to heat/cool the space when no one is there. The times will be different for each property, so plan on spending a little time talking to each tenant so you know their schedule well enough to properly program the thermostat.
Making the change to a programmable thermostat can help you reduce your annual heating/cooling costs by as much as 10% per rental unit.
Replace Old Water Heaters and Appliances
The next step you need to take as a property manager who wants to reduce utility bills is replacing older water heaters and appliances. While replacing water heaters and appliances does lower the amount of money it takes to keep your rental properties comfortable, you don’t want to run out and purchase brand new units right away.
When it comes to water heaters, most energy experts recommend holding off on purchasing a new one until the current water heater is between 10 and 13 years old. At this point, there will likely be a considerably more energy-efficient model on the market that can reduce your yearly utility bill by as much as 10%, but you’ll also save yourself additional money that you would have spent trying to keep the old water heater operational.
A desire to lower your utility bills isn’t enough to prompt you to rush out and purchase new appliances. Like your water heater, the age and condition of the appliance dictates whether you need to replace each appliance.
The best time to replace the different appliances varies from one type of appliance to the next.
- Refrigerators should be replaced every 13 years
- Washing machines should be replaced every 10 years
- Dryers should be replaced every 13 years
- Air conditioners should be replaced every 15 years
- Furnaces should be replaced every 15 years
- Dish washers should be replaced every 9 years
The amount your utility bill decreases after you replace the appliances depends on how much power the old appliances use and the type of appliance you replace it with. Make sure you choose the most energy efficient appliances you can find.
Why Landlords Reduce Costs and Work Hard to Keep Monthly Utilities Low
If you're the property manager of rental properties who is responsible for paying the monthly utility bills, the reason for being proactive about saving as much money on utilities is obvious. However, even if the tenants are responsible for the cost of utilities it's still in your best interest to do all you can to save on utility costs.
The average renter is hyper-aware of the cost of living and will usually request information about the average cost of the various utilities for the rental unit they are considering. Showing them a reasonable monthly bill and also explaining what you do to keep the costs low is often the difference between them signing a contract with you instead of looking for additional landlords who reduce costs by striving to lower utility bills.
The sooner you take the steps need to lower your rental property's utility bills, the sooner you can use these changes to attract your ideal tenant.