e m i T rs e t t a M VOL. 5, No. 2 JULY 2003 P.O. Box 406 • Fredericksburg, PA 17026 • Ph. 717-865-6800 • Fax 717-865-7711 Featuring Information on our Services, News,Views & Tidbits that help keep you… On Top of Your Investment! What is “Fair Housing?” By Robert L. Cain, Copyright 1999 Cain Publications, Inc., used by permission Fair Housing means that rental history, character and ability to pay are important when you rent your property. Race, color, national origin, religion, sex, familial status, handicap are of no consequence whatsoever. The reason the “Fair Housing Act” was made into law was that too many landlords gave the impression, and sometimes actually believed, that the color of an applicant’s skin, his religion or national origin was more important than if he would be a good tenant or not–whether he would pay the rent, take care of the property and be a good neighbor. One sure-fire way to avoid even the appearance of impropriety and illegal discrimination is to treat every person who shows an interest in your rental property, and who rents from you, the way he or she would like to be treated. An important distinction falls between treating people the way they would like to be treated and treating them the way you would like to be treated. Slight cultural differences result in feelings of distrust and/or skepticism when you say or do something in a way that causes offense in your applicant’s or tenant’s culture. For example, using a nickname rather than the name they want to be called by may be considered bad form. So, if a prospective tenant says his name is “Jonathan,” call him Jonathan, not “Jon.” It is a major cultural faux pas in the African-American community (and is rude no matter what the culture) to decide someone has a nickname that he or she doesn’t use and doesn’t want to be called. Rudeness and tactlessness may be interpreted as your having a bias against a particular race or culture. If you aren’t sure or simply don’t know how an applicant would like to be treated, then your best bet is to treat him or her the way you would like to be treated. If you can’t do either of those, at least treat everyone the same way. No matter how you treat your prospective and current tenants, though, always rental policies and standards and house rules for your rental properties that have nothing whatsoever to do with race or color, national origin, religion, sex, familial status, or handicap. These are standards which are objective and relate to how well an individual will do as a tenant and how they are supposed to act to be good tenants and neighbors. Then apply them equally to everyone. Another method of avoiding even the hint of illegal discrimination is to think of every potential tenant as a potential customer and every tenant as a customer. Your current tenants are paying you thousands of dollars a year, paying your mortgage, property taxes and insurance. And potential tenants are eager to do the same thing. Thinking of it that way could well give an entirely different slant on your relationship with your tenant and potential tenants. Fair housing is the right thing to do. It doesn’t require treating any one class “specially,” except in a few isolated situations, just that you treat everyone equally and judge each person on the basis of his or her character. “Robert Cain is a nationally-recognized speaker and writer on property management and real estate issues. For a free sample copy of the Rental Proprty Reporter call 800-654-5456 or visit their web site at www.rentalprop.com” Copyright © 2003. All rights reserved, including the right to reproduce this newsletter or portions thereof in any form by any means, electronic or mechanical, including photocopying, recording, or by an information storage or retrieval system without written permission from A. Hunter Property Management, Inc. PA Legislative Offices and Associations Pennsylvania Attorney General 717-787-3391 Pennsylvania Department of Transportation In PA - 800-932-4600 Outside of PA - 717-391-6190 Harrisburg Area - 717-787-3130 Pennsylvania Department of Banking 717-787-3717 • FAX: 717-787-8773 Pennsylvania Department of Labor and Industry Information Number - 717-783-5003 File Research - 717-787-4382 Pennsylvania Department of Revenue 717-783-5478 • FAX: 717-772-5046 Pennsylvania Department of Vehicle Licensing 717-787-2304 Oversize Loads and Special Permits Dan Smyser - 717-787-7445 Walter Knerr - 717-736-6727 PennDot Webpage: www.dot.state.pa.us PA Turnpike Commission Webpage: www.paturnpike.com Public Utility Commission Motor Carrier Enforcement 717-787-7598 CALENDAR PMHA Board of Directors Meeting – 2003 Mon., Oct. 13 or Tues., Oct. 14 – Cooperstown, NY Advertise If you’d like to advertise in this quarterly newsletter, which is sent to over 1000 people in the manufactured housing industry, please submit your copy to A. Hunter Property Management, Inc., PO Box 406, Fredericksburg, PA 17026. Ad size not to exceed business card size or 3 1⁄2 inches wide by 2 1⁄4 inches deep. Cost is $20.00 per publication. Please specify how long you would like the ad to run. Chrissy Responds Answers to commonly asked questions about community management. by Chrissy Jackson, ACM, PHC Neighbors who don’t get along are nothing new to the multi-family housing market, but they are always a challenge when they are in your community. What to do? Typically, there is one resident, let’s call them the Hatfields, who is constantly calling your office to complain about their neighbor, the McCoys. Now, the McCoys never have any problems with any other neighbors, but no matter what they do, the Hatfields are upset. And it works both ways! Each time the McCoys pay rent, they are complaining about the Hatfields. When you took over the community, one of the things you did was begin to enforce the Guidelines. That means you are now asking them (as well as all the other residents) to put their complaints in writing. Suddenly, you are receiving epic novels from each of these families. The details are amazing. The story is never-ending. Each day there is some new development, and at times one or the other of them even feel compelled to come to your home with their “tidings of joy.” What to do? You simply cannot live the rest of your life acting as referee for the Hatfields and the McCoys! Life must go on! Now, there is a solution. Review your Guidelines. Make sure that document gives you the right to require all complaints in writing. Then, use a specific form for the purpose. The form will require the resident who is complaining to do three specific things. First, they must outline the details of the complaint. Secondly, they must identify the Guideline that is being violated. And thirdly, they must propose a solution. Do not accept an incomplete complaint. All three items must be completed in order for you to have a legitimate complaint. Do not accept a verbal complaint. All complaints must be in writing. Stand firm and insist that all residents follow the Guideline. No exceptions. That does not mean that you would ignore a complaint if it is truly an emergency. Nor does it mean you won’t investigate the situation if you only have a verbal report. It does, however, mean that you are going to tell each resident that they must put their complaint in writing, in accordance with the terms of the Guidelines. It also means that you will have both forms and extra copies of the Guidelines readily available for whomever visits the office. And, you must smile. You are helping them. By requiring a written complaint, you will have the correct information. The dates will not be confused or forgotten. The names of the people involved, and the details of the situation will be crystal clear, and not in any way befuddled. Does it work? You bet! This tried and true method has done wonders in the all age community where it was first used! The key is persistence in your attitude. You are not unreasonable, nor are you being overbearing, you are simply trying to do your job. And you need the facts. “Feeling Swamped?” We can take care of all your hassles involved in owning and operating rental and income properties! 24 / 7 WE’LL HANDLE YOUR… tenant communications • maintenance • rent collection • payment of property bills • snow removal lawn care • ensuring tenant compliance with rules & regulations • tenant and property emergencies Specializing in Manufactured Home Communities Full Service Professional Property Management which we can tailor to suit your needs. Over 12 Years Experience Member PMHA, Institute of Property Management, SOHO, Lebanon Valley Chamber of Commerce, Manufactured Housing Institute, Small Business Association P.O. Box 406 Fredericksburg, PA 17026 (717) 865-6800 Property Management from A to Z By Chrissy Jackson, ACM, PHC When someone asks about what it takes to be a “good” property manager, our minds often envision a person with skin as tough as alligator hide; someone as fair and impattial as a judge; one whose patience is unlimited; and whose wisdom knows no bounds. Those, however, are personal attributes. And, although they are certainly noteworthy, and they surely contribute to the overall successful picture of a “good” property manager, they don’t cut to the heart of the question. A “good” property manager must possess a large number of skills and talents, as well as being created from the fiber described above. This article looks at 26 different skills and talents – everything from A to Z – that should be possessed by a “good” property manager Using these skills regularly and developing these talents to the best of your ability is what makes the difference between a property manager and a “good” property manager. Having these skills and talents, and not using them, or using them only once in a while does not make you a “good” anything. Customer service is often touted as the position that will be most in demand as we continue into the twentieth century. A “good” property manager is customer service personified. Each person who lives in your community, looks at living in your community, or works in your community is your customer. If you, as property manager, develop these talents and use these skills as outlined below, customer service will be second nature to you and you will indeed have become a “good” property manager. This list, however, is not all-inclusive. There is already a second list of A to Z almost ready to print. How many others can you think of that should be included? Send your comments by email to chrissy@gte.net for inclusion in the next list. Activities – Even without a clubhouse, you can arrange activities for your residents. Coordinate volunteers to help organize events and publicize them. Be creative; encourage new ideas from residents. Check your library for books detailing unusual ideas for get-togethers. Encourage the formation of a resident social organization to keep the residents of your community active and create that “neighborhood” feeling. Balance – It is up to you to balance your day. Allow time for resident interaction in activities and discussion. Keep an eye on expenses and remember the importance of balancing the budget. Balance the needs of your employees and residents with the needs of your employer. Curb Appeal – “If you don’t have curb appeal, you aren’t open for business,” as the saying goes. Make sure your community is clean, curbing and sidewalks are swept, flower beds weeded, and the entrance attractive. Dress – Dress appropriately. If you work in the office, dress professionally in good looking clothing. If you work outside in the community, wear uniforms for easy identification by the residents when they see you. Employees – A company’s biggest asset is its employees. How you treat your employees is how they will treat your customer (your resident). Show your residents the trickledown effect of a positive attitude. Stress taking care of your employees so they will take care of your customer. Praise liberally, often, and sincerely. Discipline when necessary in private and follow up in writing. Follow Through – In each and every thing you and your staff do, emphasize the importance of follow-through. Whether you are notifying a resident of a covenant violation or a delinquent rent situation, follow through on the appointed date. All court judgments and monetary awards require follow through for collection. Another big area that needs constant follow through is the maintenance requests you receive from your residents. And don’t forget to always follow through on preventive maintenance on your vehicles, equipment, and rental homes. Green – Green is usually synonymous with money, and so it is here. Keep the green in your community! Improve your cash flow; reduce the delinquencies; and increase the amount of green on the bottom line. A-Z Honesty – A personality characteristic that every company values and no manager should be without – in themselves as well as in their employees. Even in the worst situation, honesty is better than the next best alternative. Initiative – Be at the forefront of those who get things done; not those who wonder how it happened; or even worse, those who don’t even realize that something happened! Develop self-confidence in your employees, and encourage them to take responsibility for work assigned to them, and initiative to realize what else needs their attention. Judgment – Exercise good judgment in all things; be fair and consistent in relationships with employees and residents. Look at all sides of a situation before making a decision. Listen to input from everyone who will be affected by your ruling. Make prudent decisions for the good of the company in a reasonable amount of time. Knowledge – Know the industry; your job functions and requirements; where to go to get help; and who to call in case of emergency. Know the economic indicators, market conditions, and demographics of your area. Know the property managers in your surrounding area as well as the retailers. Know the laws of your state and county which regulate landlord/tenant situations. Listen – Listening is the most important part of communication and the one least often used. Wise men have said you can learn much more by listening than by talking. Residents need to know you have time to listen to their concerns. Employees need to know they can talk to you when they have information to share, or a question they feel is important. Marketing – Marketing starts when you walk out of your home in the morn- (continued on page 7) PROFESSIONAL PROPERTY MANAGEMENT Over 13 Years Experience in the Industry WE SPECIALIZE IN MANUFACTURED HOME COMMUNITIES A. Hunter Property Management provides the highest standard of professional management services thoroughly and efficiently through the competence and technical knowledge of their staff. Their primary objective is to maximize return on your investment using years of experience and expertise, and a sophisticated approach to property management. Objectives Services • Provide a service to owners which will free them of the work load involved with running an investment property • Maintain a clean, smooth operating, profitable property • Ensure a pleasant community residents will appreciate • Coordinate Property Maintenance Including: utilities, lawn care, snow removal, etc. • Improvement Projects • Rent collection, payment of property bills • Monthly Income and Expense Reports • Owner/Resident Communications • Routine “On-Site” Inspections • Rule Violation/Enforcement • Represent Owners at Related Hearings • Emergency Service Hotline 24 hrs/day, 7 days/wk • Maintain Occupancy • Keep Owners Informed of Changing Legislation with Proactive Involvement Advantages for the Owner • Experienced and Dependable Service • Well Maintained Property • Satisfied Residents • Informed Owners • Freedom of Owning • Employees have PHC Designation For More Information Contact… A. Hunter Property Management P.O. Box 406, Fredericksburg, PA 17026 • (717) 865-6800 eMail: info@ahunter.com • Website: www.ahunter.com Member PMHA, Institute of Property Management, SOHO, Lebanon Valley Chamber of Commerce, Manufactured Housing Institute, Small Business Association Rental Policies and Standards t’s amazing. Too often landlords have no concrete idea of whom they will accept as a tenant. The result is that they accept just anybody, or they rent on “gut instinct.” Both methods are fraught with danger. A third method is taking your property off the rental market for a month or two, because you didn’t get any decent applicants and are afraid to either rent to any of them or turn someone down for fear of a Fair Housing complaint. Then you lose one or two months’ rent, and needlessly. We know what happens when you rent to the first person who shows up with cash. That’s the last cash you’ll see from him. And, you can end up spending a lot of your own cash to fix the damage that he or she did, plus paying the mortgage out of your own pocket because of the rent you never received. The gut-instinct method has worked for some landlords for many years, without them getting burned. They have been lucky. It is perilous two ways. The first is related to the “rent-to-just-anybody system” of landlording: you pay because they don’t. The second is that you reject a perfectly acceptable, possibly even sterling, applicant because he or you had a bad day or didn’t quite hit it off. A corollary result is the Fair Housing complaint because you rejected a member of a protected class because you had a “bad feeling” about him or her, but accepted another applicant I who was not a member of a protected class. Rental standards avoid all three of the problems I’ve just described. In fact, having printed out rental standards does three things for you: One, it self-screens applicants. Properly done, you will eliminate a large percentage of the unqualified applicants from even asking to rent from you. When they ask for a rental application, you give them one and with it a copy of the rental standards. Many times when they read them, you never hear from that applicant again. Two, it gives you an idea of the minimum standards you will accept for a tenant. No more guessing and using how you feel to decide. Three, properly drawn and managed, rental standards protect you against Fair Housing complaints far more than if you do not have standards. 1) A satisfactory current landlord reference of at least three months in duration. 2) A satisfactory past landlord reference of at least six months’ duration in the past two years. 3) A referral from a social service agency which has a partnership agreement with the property manager. 4) If no or insufficient landlord references, then satisfactory personal references (such as teachers, coaches or ministers), and/or participation in a housing readiness program may be acceptable. from the tape series, “Avoiding the Tenant from Hell,” available from Cain Publications. Are You Liable? Reasonableness Standards are kind of like Goldilocks when she tasted the porridge, they can be too strict, too easy or just right. Too strict standards can mean you end up making yourself a lot of extra work and losing a good tenant because your standards didn’t fit the property. Not every rental property is going to attract applicants who have ten years of increasing responsibility at one company and a previous tenancy lasting seven years. What kind of rental standards are reasonable? You have to choose. But standards you include are things that show that the applicant will be a good tenant, not just that they meet some standard. If you have some properties that attract low-income people or first-time renters, probably the kind of housing that has the greatest number of bad tenants, one way to accomplish that is by using standards that leave options for qualifying. For example, you might use the following reference criteria: At least one of the following types of references is required of applicants: You own a manufactured housing community. In fact you own several communities. At one community a family is denied residency by the community manager for questionable reasons. The family sues declaring Fair Housing discrimination. How far can the liability be extended? To the community manager? Definitely. To the corporation? Unquestionably. To you as the owner? Not personally. The United States Supreme Court has recently ruled that although an owner does have the right to control corporate employees the owner or the officers of the corporation can not be held liable for their actions. Property Management from A to Z (continued from page 4) ing, and ends when you go to bed at night. It is a never-ending, constant situation which needs your attention. Even when a community is full, you must continue to market your community reputation as a desirable neighborhood. Newsletters – Newsletters are one of the best and easiest ways to communicate with your residents. Make them upbeat, positive, and full of good ideas. Use your residents as sources of information for columns; recognize new residents, birthdays, anniversaries, achievements, and awards. Incorporate graphics and clip art to get attention; use colored paper. Introduce contests and announce community activities. Most importantly, be regular. If done properly, residents will look forward to contributing articles and receiving their newsletters! Occupancy – Filling the community and keeping it full gives you the budget you need for improvements. Occupancy increases not only by bringing in new residents, but by keeping the ones you already have. Be creative in advertising, marketing, and filling your community with more homes to eliminate vacant sites. Be just as creative in covenant enforcement and developing a “neighborhood” feeling to reduce the number of residents who leave. Professional – Become an active proponent of the Decade of Manufactured Housing by increasing the level of professionalism within your office and your community through training, proper terminology use, and performance. Each piece of paper that leaves your office should have the professional, clean look which represents your community. In dealings with residents maintain your professional decorum no matter what the situation. Insist that your employees are professional in their performance and provide training when needed. Reward and acknowledge increases in the level of professionalism within your staff. Quality – Ouality goes hand in hand with professionalism. Impress your staff and your customers with the quality of your work on a regular basis – then insist on the same from your employees. Provide a quality community for your residents. Screen prospective residents to maintain the quality standards you set for your community. Every request from a resident requires a quality response – whether it is maintenance or other communication. Realistic – Encourage realistic attitudes toward residents who have shortterm requests or problems. Be flexible whenever possible within the corporate guidelines to help resolve a problem, not create a bigger one. When issuing covenant violation notices, be realistic in the time frames you give for corrections and/or repairs. Delinquencies are a problem, but not an impossible one, if you are realistic about payment plans. Being realistic means to honestly look at a situation, see if there is a workable solution, then work toward it. Being firm in following up on broken promises does not mean you are being unrealistic. Sales – Sales is not only selling homes. Sales includes selling yourself and your community everyday to everyone you meet. That includes not only employees and residents, but also vendors and prospective residents. Sell yourself; your commitment to the betterment of the community and your belief in the value of the residents. Sell your community; the location, amenities, and the sincere dedication of your staff. Think – Don’t allow yourself to get into the habit of just coasting by doing the minimum to survive. Constantly be thinking of ways to improve your community, the communication with the residents, and your activities. Think about the appearance of your community and what could be done to improve it. Think about programs and training that would benefit you and your staff. Think about the impression you make and how that reflects on your community. Upgrades – Constantly upgrading and improving your community should be one of your priorities. Even in newly built communities, it is possible to upgrade in appearance – just by filling vacant homesites. Older communities may be a challenge, but you can do it. Get creative, enforce covenants, show your residents that “upgrade” means “increased value” for them and their home. Bring the value of your community up by upgrading the assets within. Verify – Each time you are told of an incident, and asked to take some sort of action, verify your information. Whether it comes from a resident or an employee, verify before you accuse. Purchasing also requires you to verify costs against allocated budget amounts, verify invoices against purchase orders, and verify payment to vendors. When planning the budget for the next year, verify projected costs for fixed expenses and capital improvements. Win-Win – Create a win-win situation every time for both residents and employees. Whenever there is a controversy or difference of opinion look for a positive solution that pleases everyone. Winning alone creates resentment and hard feelings. Winning together creates a team. When you and your residents win together, you have created community spirit. Xerography – Use your photocopier as an example of one of the lowcost services you can provide to your residents. There are several others: use of the fax, use of a conference room, free lawn care when your residents are on vacation, daily phone calls to check on the elderly, rent check pick-up for the disabled or homebound, etc. Yes – Learn to answer every question with a “yes” rather than a “no” and to form the answers positively. Even if the bottom line must be a negative, start your answer by saying, “Yes, I can see where that would be important to you...” Using a negative right away causes you to lose the resident who is trying to communicate a need to you. Using a positive word or phrase shows that you have heard, you have understood their need, and that you are trying to work out a solution. Zest – Approach each day, each situation, each person with an attitude full of joy and zest. Be positive and cheerful. Look for reasons to enjoy your community, your residents, and your staff. Fill each person you meet with the zest of living. Contact the Author: E-Mail chrissy@gte.net Visit the Authors Web Site: http://chrissy-jackson.com Chrissy Jackson is a Tampa Regional Manager and Dean of Hometown University for Hometown America. As Dean of Hometown University, Jackson will organize educational curricula for Hometown America employees. She may be reached at 813/982-9617 or chrissy@gte.net PRSRT STD U.S. POSTAGE PAID PERMIT NO. 51 Jonestown, PA 17038 P.O. Box 406 Fredericksburg, PA 17026 RETURN SERVICE REQUESTED me o H ed r u t fac wners u n a kO M r fo Par Check out our web site… to learn how A. Hunter can make your rental property a no-hassle investment. There are also links to other manufactured housing industry related sites which will provide you with a wealth of information. www.ahunter.com Get Away! No worries when A.Hunter Property Management is taking care of your business! While a great deal of care has been taken to provide accurate and current information, the ideas, suggestions, general principals and conclusions presented in this letter are subject to local, state and federal laws and regulations, court cases and any revisions of same. The reader is thus urged to consult legal counsel regarding any points of law – this publication should not be used as a substitute for competent legal advice. Member PMHA, Institute of Property Management, SOHO, Lebanon Valley Chamber of Commerce, Manufactured Housing Institute, Small Business Association
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