Owner/Client Relations - Essentials

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Owner/Client Relations -

Essentials

Student Materials

Phone: 800-782-3452 Fax: 866-466-2776 E-Mail: [email protected] www.narpm.org

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Disclaimer

Our discussion regarding residential property management includes personal views and opinions of the authors and instructors based on experience, research, and conversations with other property managers.

We cannot represent the law or specific situations where you live or work, nor make assurances or warrant that what we say will apply to your situation or area.

As you know, when we talk about prices, fees, or commissions, we can be accused of price-fixing. We want to make it clear that we are not suggesting fees or commissions to be set or agreed upon. Any mention of fees or commissions is only to clarify our discussion by giving examples. Fees are determined by competition and the marketplace. Each market is different and,

therefore, fees differ from company to company.

Information used in the case of studies of problems and solutions is fictional. Any similarity to actual events or people is coincidental.

This course does not purport to provide an exhaustive discussion of any area of the law and should not be used as a substitute for legal counsel. Legal issues discussed are solely for illustrative purposes and neither NARPM® nor the author is responsible for the legal content. Forms, contracts and agreements, as well as all other printed materials are provided as examples for guidance only and are not to be used without specific approval by your own legal counsel. Since laws change periodically and vary from state to state, neither NARPM® nor the author assumes any responsibility for content of any printed material herein. CONSULT YOUR LEGAL ADVISOR BEFORE IMPLEMENTING ANY POLICIES OR PROCEDURES OR USING ANY PRINTED MATERIALS.

It is the policy of the NARPM® to comply fully with all antitrust laws. The antitrust laws prohibit, among other things, any joint conduct among competitors that could lessen competition in the marketplace. NARPM®’s membership is composed of competitors; they must refrain from

discussing competitively sensitive topics, including those related to pricing (such as rates, fees, or costs), individual competitors or specific business transactions, or controlling or allocating

markets. Further, NARPM® shall not restrict members’ ability to solicit competitors’ clients or to advertise for business in any way that is not false, deceptive or otherwise illegal.

All cell phones, tablets, and laptops should be turned to silent.

Recording of this class is strictly prohibited.

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All students must achieve a minimum of 70% on the NARPM Exams. In order to receive a certificate of completion, students must complete the online survey that will be sent via email after this course is complete.

NARPM® Courses

1. Basic Courses

a. NARPM® 101: Basics of Property Management b. Marketing

c. Tenancy 2. Broker/Owner

a. HR: Start to Finish

b. Personnel Procedures Advanced c. Office Operations

d. Risk Management Advanced e. Owner/Client Relations Advanced 3. Maintenance

a. Habitability Standards & Maintenance b. Maintenance: Basics and Beyond

c. Operating an In-House Maintenance Company 4. Property Managers

a. Owner/Client Relations Essentials b. Personnel Procedures Essentials c. Risk Management Essentials

Several NARPM®_{classes are now available online. Continue to watch www.narpm.org as courses}

are added and new ones are developed.

2-HOUR COURSES

Paperless Office – online only Lead-based Paint Law – online only

3-HOUR COURSES

Fair Housing – online only

SOCIAL MEDIA WEBINARS – 1-HOUR COURSES

Online Marketing Facebook Marketing Online Promotion Web Sites and Blogging The Paperless Transaction Objective

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The objective of this course is to cover the four stages of every owner relationship – the owner as a prospective client, securing the client and the property, servicing the client, and closing out the client relationship.

The class will also provide you with the necessary information to develop policies that will help create a positive experience for each of your clients and protect their investment.

The Owner Cycle

1. ____________________________ Contact 2. New Client

3. ________________________ Client 4. Closing

Initial Contact

_________________________________, materials and telephone. It is critical for a good ___________ ___________________.

Initial Contact Checklist

1. Name/telephone/ _____________________________ address 2. ______________________________ address and details 3. How did they hear about you?

4. _____________________ are they looking? 5. What type of management do they need?

6. Take notes about ___________________________ information. 7. Ask _______________________ questions about their motives.

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Initial Contact: Qualifying Owner must fit your model

_______________________ must fit your model

Initial Contact: Services Offered

1. ________________________ and renovations 2. Home ____________________________ 3. Virtual tours

4. _______________________________ services 5. Small loan company

6. ____________________________ protection 7. Eviction protection

Initial Contact: Presentation

Create an ________________________ that includes: 1. ________________________ placement 2. Marketing program

3. _________________________ process 4. Move-in procedures

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1. Manage the money

2. Manage the ______________________

3. Manage the property

4. Manage the ______________________

Initial Contact: Fees and Follow-up

________________________ value by describing services. Establish the worth of your fees.

1. Infrastructure 2. Certifications

3. Available _________________ 4. _________________________

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1. ____________________________ when they ask. 2. Answer later.

3. ________________________ you don’t know. 4. Defer

5. Ignore

6. Answer __________________ they ask.

Initial Contact: Fees and Follow-up 1. _________________ in touch 2. Offer additional services

3. Ask them why they chose another property manager.

The Management Package

The management agreement lays out in legal terms how your relationship is supposed to play out.

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_____________________________ out in legal terms management’s responsibilities.

New Clients

The Management Package

The Question is “who really owns the property you’re renting.” _____________________ title-holder.

Get _______________________________ signatures

Owner Documentation

1. Home Owners’ __________________________________

2. Home warranty policy

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5. Insurance declaration page

6. _______________________ disclosure 7. Flood disclosure 8. Personal ________________________________ disclosure Property Documentation 1. _______________________ manual 2. _______________________________/date page 3. Available ___________________________ 4. Access through key and codes

5. ___________________________ Company Contact Information 6. Photos, virtual tours and flyers

7. Plot map/_______________________________ 8. Legal descriptions

9. Old _________________________________

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1. Habitability 2. Utilities On 3. Hazards 4. Cleanliness 5. Re-keying 6. Updating 7. Curb appeal

Advertising the Property 1. When do you start?

2. Occupied or __________________?

3. Who pays for what?

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Copyright ©2014 NARPM®(rev. 10/14) 11 5. Co-ops/________________________ fees Tenant Selection 1. ___________________________ procedures 2. Holding deposits 3. Tenant selection 4. _______________________________ guidelines 5. First applicant vs. Best qualified

6. Choosing the ________________________ 7. When/how the owner is notified

Bill-Paying Policy

1. Mortgage and Insurance

2. _________________________ charge

3. Maintenance notification and disbursement.

4. ______________________ management

Owners Statement

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3. ___________________________ amount 4. _____________________________ deposits 5. Negative account balances

Communication Frequency 1. While on the _________________________________ 2. Financials 3. Newsletters 4. Emergencies 5. ________________________ Rent/NSF/Eviction 6. Maintenance 7. _______________________________ notices Communication Method

Depends on the Urgency

_________________________________… very urgent _________________________________… not so urgent

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_________________________________ … when they have one

Your method of communication depends on your need to ________________________ the communication. Recordkeeping 1. Software 2. Online ________________________ 3. Statement cycle 4. ___________________________ history 5. Insurance 6. Letters/__________________________ 7. ________________________ documents

8. Agreements - a verbal okay is NOT good enough.

9. Reviews

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Copyright ©2014 NARPM®(rev. 10/14) 14 Use of Documentation 1. Disputes 2. Legal 3. Insurance 4. ______________________ of property 5. ___________________________ problems 6. Identify _________________________ Year-End Reporting

1. Profit and ___________________________ statement 2. ____________________________ rate 3. Rent increase/decrease 4. Major Events a. Insurance claims b. ____________________ overs 5. Outstanding/deferred maintenance

Servicing your clients Maintenance

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b. Vendor call back

c. ________________________/owner 2. Capital improvements

a. Life ______________________ 3. Wear and tear vs. damage

Identifying Maintenance Problems 1. Cause

2. Trouble -______________________________

3. Details

Contact the Owner

1. Provide Alternatives

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Client’s needs and wants change

1. Economy and ___________________________ 2. Life events

3. Change in ______________________

Building Business Relationships 1. Life __________________ 2. Annual thank you notes

3. __________________________ visits 4. Market updates

5. Referrals

Conflict Resolutions – Active Listing

1. __________________________ notes 2. Don’t interrupt

3. __________________________ calm 4. ____________________ your voice

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Simple - __________________ a letter Complex

1. _______________ task 2. Assign responsible person

3. Create a ________________________ line

Follow-up to ensure resolution

Determining the Desired Results

1. ______________________ understanding 2. ___________________________ request 3. Change of policy or procedure

4. Replacement

If it is a complex conflict issue, set a follow-up meeting.

Determining Alternatives 1. Brainstorm

2. _________________________ past experiences 3. Contact NARPM® members

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5. Use the ___________________________ diagram

Firing the Owner

_______________________________ by broker and adressed by procedures.

Transfer to another property manager

_______________________________ deposit notice to tenants and __________________________ to new property manager.

Owner taking back management

Notice to tenants and transfer responsibility to owner.

Owner moving back

1. ________________________ walk out first

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Owner Sells Property

Follow the proper procedures based on the situation

Foreclosure

Management Agreement ________________________ with the owner because there is ______________________ longer the owner.

Closing/Transfer Package Transfer package

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3. Tenant information (it is best not to transfer anything with the tenant’s Social Security Number visible)

4. Tenant accounting ledger 5. Security deposit

6. Keys

7. Owner funds held if turning the property back to the owner

Ask for a ______________________________ Leave the ___________________________ open

Ending well

1. Provide final profit and loss.

2. Provide ________________________ at year-end

3. Property documentation returned

4. A thank you note for years of being a client

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• IREM®

• Insurance companies

• State/local trade associaitons • Attorney