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I Trust You and I Believe In You

The Role of Trust in Organizational Leadership By Ted Studdard, Colonel, USMC (Ret) I trust you and I believe in you…” Just minutes before, I thought I would be fired.  My fledging two-month career in the Fleet Marine Force was about to end before it ever really started. I had just violated one of the most critical safety rules that I, as a young artillery officer, was responsible for keeping.  The Story I had recently completed my initial Marine Officer training and joined my first unit. We were preparing for an upcoming deployment and were three weeks into our initial month-long, live-fire training exercise. For this training, we were allocated a special type of ammunition that was extremely lethal and thus had extremely specific safety parameters. The training areas where we could shoot this ammunition and the weather were never aligned, and we were in danger of not having the opportunity to train with this ammunition. A couple of days before the exercise was scheduled to end, the weather broke. We were in one of the few firing positions where we could shoot this ammunition.  Our commanding officer, Captain M. A. Singleton, left our position to go to the battalion headquarters to get our next mission, and I was left in charge of firing. I took the initiative and we fired the ammunition — the Marines executed perfectly. As the last round impacted, I could see Captain Singleton’s vehicle headed back to our firing position. As soon as he arrived, I told him about shooting the ammunition and how well the Marines executed the mission, fully expecting him to be pleased. He was not. In fact, he started asking me questions about how we executed the fire mission, specifically focusing on safety. He was most interested in finding out if I knew where all the other units were in the vast training area. When he asked if I knew where the mortars were, I knew I had failed. I could not account for their location. He told me that they were out of my line of sight but less than a kilometer in front of our gunline (roughly half a mile). This ammunition was so lethal and so sensitive that firing over the heads of friendly forces was strictly prohibited. I was responsible for violating this cardinal rule, and, even more importantly, my actions put lives at risk. Captain Singleton motioned for me to follow. We walked a short distance from the rest of the unit so we could have a bit of privacy.  I fully expected to be on the receiving end of a very unpleasant one-way conversation followed by being relieved of my duties, i.e., fired. For several very long minutes, Captain Singleton quizzed me on safety procedures, finally stopping when he knew that I understood what to do and that I had truly made a mistake in my haste to accomplish the mission. I braced myself for what would come next — relieving me of my duties. To my surprise, Captain Singleton said, “I trust you and I believe in you. Now go train your Marines.” I felt like I could run through a brick wall. I would get a second chance; my commanding officer told me he trusted me, and he showed that he trusted me through his actions. Creating Trust Up and Down the Chain How did this event impact our team? Personally, I knew that Captain Singleton had my back and there was no way that I would ever do anything to let him down. Many leaders think that, by virtue of their position, subordinates automatically trust them. This is not true, in fact, leaders often must give trust to get trust. In his book, The Leader as Coach, Richard C. Huseman, Ph.D. cites a Boston University Survey that found 80% of employees do not trust their leadership. On this day, Captain Singleton gave trust by the truckload. Our entire unit quickly realized what I had done, and all were watching to see how our leader responded. The way he handled this situation let all the Marines know that if we made a mistake that was not illegal, immoral, or unethical that he would support us. On this day, we all witnessed our leader trusting down the chain, which in turn, created trust back up the chain. The impact was far greater than any of us ever imagined.  Within a year we would be in combat together, and the foundation of trust Captain Singleton built that day would provide the footing that enabled our unit to execute at the highest level under extreme circumstances. Trust is the Key to Unlocking Your Team’s Potential After 25 years leading large, dispersed organizations around the world followed by nearly a decade in various leadership roles at the corporate headquarters of a Fortune 20 company, I am more convinced than ever that trust is the key to unlocking the tremendous potential that we all have in our current teams. Why is trust so important? Trust empowers your team. For starters, trust facilitates decisions at the point of action by the person closest to the issue, who, in many cases, has the best situational awareness. Trust also speeds the entire decision cycle by enabling your team to make decisions on the spot. Empowered people feel ownership and the team becomes “our” team rather than the boss’s team. Many people consider trust an intangible quality that cannot be measured, but an empowered team built on trust has lower turnover, lower hiring and onboarding costs, and improved connectivity and continuity both internally and externally. How can we build trust? Let’s focus on two ways any team can build trust: The first way is by developing your team deliberately, so you are comfortable placing your trust in them. The second involves incorporating your team into planning, thus demonstrating the trust and faith you have in their experience and their expertise. Building a team that you are comfortable trusting begins with onboarding.

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Hurricane Season Is Just Around the Corner

Are you Prepared? By Shawn Woedl AccuWeather recently released its 2023 Atlantic hurricane season forecast, and although predictions point towards a less active season, it will still bring certain dangers and the potential for property loss. Tropical weather forecasters at AccuWeather are projecting 11-15 named storms, with four to eight expected to reach hurricane strength. The Atlantic hurricane season begins June 1, so now is the time to prepare your properties and tenants in hurricane-prone areas. Catastrophic Losses Have Affected the Property Market The extreme weather events of 2022, Hurricanes Ian and Nicole especially, caused a significant shift in the insurance market. Many carriers in Florida have suspended writing new business to assess their financial situations and ability to stay afloat. Unfortunately, this also means that substantial rate increases are imminent as carriers attempt to keep pace with costly insurance losses. Although Hurricane Ian missed Louisiana, carriers are still feeling the impact of the 2020 and 2021 hurricanes. Properties in Louisiana have a high chance of incurring costly losses, making it difficult for carriers to maintain a healthy book of business. Many insurers have already canceled existing policies or announced they will not be renewed. Other parts of the country are also seeing changes in property insurance. Rates and losses are being evaluated across the board due to the increased severity of inclement weather. Stricter underwriting guidelines and higher standard deductibles will make it difficult to find coverage in states like Alabama, Florida, Louisiana, Mississippi, and Texas. Hurricane Mitigation Tips Natural disasters don’t wait on humans to be ready to respond. Preparing your properties and tenants well in advance of a hurricane risk can help save thousands of dollars and maybe even a life. Prepare your property »          Trim trees and shrubs well in advance of a storm so they can withstand higher winds. »          Secure loose gutters and clear debris to prevent water damage.  »          Reinforce security of the roof, windows, and doors. Brace garage doors. »          Move exterior furniture, yard ornaments, or play equipment indoors. »          Cover all windows — permanent storm shutters are best, or board windows with 5/8” marine plywood. Tape does not prevent windows from breaking. »          Ensure that the sump pump’s backup battery is working. »          Purchase a portable generator for use during outages. Store it outside, away from windows and doors, and protected from moisture. NEVER try to power the house wiring by plugging a generator into a wall outlet. Prepare your tenants Advise tenants to stay alert for updated emergency information and follow shelter-in-place guidelines: »          Close and lock all windows, doors, and storm shutters. »          If flood waters rise to dangerous levels, go to the highest level of the building, and call 911. Do not climb into a closed attic; individuals may become trapped. »          In case of high winds, go to a small, interior, windowless room on the lowest level. »          Have adequate supplies in an emergency go-bag; several days’ worth of water, non-perishable foods, medication, and pet supplies. »          Follow instructions from local authorities. »          If advised to evacuate, do so immediately. Do not drive around barricades. Do not walk, swim, or drive through flood waters. Stay off bridges over fast-moving water. Do not go back to the affected area until local authorities advise it is safe to return. The Differences Between Wind/Hail, Named Storm, and Flood Coverage Hurricanes and other severe storms may involve many causes of loss simultaneously, which might not all be covered by the same insurance policy. The following coverages, though not exhaustive, may kick in at various points during the hurricane season. Wind/Hail Most standard policies for investment properties include wind/hail coverage. Although, in some states, it may be excluded and needs to be purchased as an endorsement. Wind/hail primarily covers damage caused by heavy winds, tornadoes, and hailstorms. These weather phenomena can be common in coastal locations and Midwest areas and may lead to roof damage, broken windows, or damage to detached structures like garages or sheds. This cause of loss often carries a separate deductible from other perils, such as fire. This is typically a percentage of the insured value, which can differ based on the property’s distance to the coast. So, if your property deductible is $2,500 and you own a single-family insured to $200,000 with a 5% wind deductible, you are responsible for $10,000 before insurance payouts begin. Named Storm As soon as a storm is given a name by the National Weather Service, standard wind/hail coverage no longer applies. For damage caused by a named tropical storm or hurricane to be covered, your property policy must include Named Storm coverage. It is important to understand that damage caused by a rain or storm surge may or may not be covered depending on the situation. If a windstorm or hurricane is determined to have created a “storm-caused opening,” such as lifted roof shingles or a broken window allowing rainwater to enter the home and causing damage within the property, damage may be covered. However, if water enters the home due to a “storm surge” (an abnormal rise of water levels due to the presence of a storm) it would be considered a flood. Flood Flood coverage is almost always excluded from a property policy and must be purchased as a separate policy or endorsement to be covered. A flood occurs when two or more acres of dry land or two or more properties are overrun by water or mudflow. Flood coverage can be purchased through the National Flood Insurance Program (NFIP) offered by FEMA. Private options that typically waive the waiting period associated with NFIP are also available. A Flood policy will also come with its own deductible. Other Coverages to Consider If you own properties in a hurricane-prone area, you must discuss exposure with your agent to ensure you are comfortable with the coverage you have. Below are a few additional coverages you may want to consider. Other Structures Detached structures, such as a shed or garage, need

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From Portfolio Asset to a Rental Home

A New Perspective on SFR Management By Nickalene Badalamenti-Kalas The housing crisis of 2008 sent seismic waves through communities across the country and left a lasting impact on how investors and property management companies handle single-family rental property management. That event will not be the last of its type, and the lessons it imparted to investors, property managers, tenants, and their communities bear continual scrutiny as the housing market is buffeted by economic pressures both natural and manmade. The essential truth that should remain foremost in the minds of thoughtful investors and property managers is that people do not want a house. They want a home: a safe, sound, secure home they can make their own, within an attractive and economically stable community of like homes. Asset management strategies that proceed from this fact — with full transparency and regulatory compliance — will result in consistently satisfied stakeholders. All stakeholders. An Ounce of Prevention This shift in perspective — treating properties as private homes rather than numerical assets — is particularly critical when considering at-risk properties where occupancy is uncertain. Home deterioration is an exponentially accelerating process, and rapidly leads to plummeting home values and community blight. Timely and direct asset stabilization, as well as preventive and ongoing maintenance activities — utilizing experienced tradespeople with specific skillsets — can forestall this trend and stabilize properties and values. Here are important considerations in the process. Monitoring  Proper care and monitoring of at-risk homes are paramount. The recent popularity in single family rentals, pandemic protections, economic instability and severe weather events have created a perfect storm for homes that may be slipping through the cracks. Monitoring delinquency trends, resident and municipal concerns, and being proactive can directly stabilize homes and communities. Having an experienced asset management partner, with nationwide, dedicated, and expert field-service representatives on the ground, can help identify and alleviate these risks. Inspection  Once a home becomes at-risk, a proper and thorough review of assets should be made, within legal limits. Proper training, oversight, and support of the process is extremely important. Inspectors should understand the spirit of this often-delicate task, while still providing accurate and complete documentation of the property’s condition and occupancy. This is another area where expert asset management professionals can deliver a fast, technology-enabled inspection — fully documented with geo-tagged and time-stamped photos — that meets all code compliance regulations. Equally important is the process by which these data are processed. There are numerous indicators for a successful occupancy determination. Correct reporting of utility status, condition of home and grounds, postings on the home, presence of personal property, and in many cases neighbors can be helpful. Inspection reporting should have triggers that notify stakeholders of areas of concern. Negative utility status, signs of theft, vandalism or fire should be immediately reported to the client. Complete and prompt reporting are key to filing claims, chargebacks, and overall asset stabilization. In cases where eviction is unavoidable, the need for experts on the ground to manage protocols such as cash-for-keys — and to coordinate in full compliance with every agency – becomes clear. Be Proactive When legally possible, an investor or property manager should take all necessary steps to preserve and protect the asset. Homes are not designed to be left open to the elements with non-working utilities. Neglect and deferred maintenance come with telltale signs: overgrown lawns, debris and detritus accumulation, and excessive postings are indicators of vacancy, and can lead to further violations, theft, or vandalism. The condition of the home interior is equally important. Homes should be free of infestation and intrusion. Any signs of mold, mildew, or roof leaks should be reported with location, size of area, cause, and remediation plan. All physical hazards — broken steps, handrails, tripping hazards — should be proactively addressed. Exposed utilities including gas, water and electricity should be properly capped off, regardless of present utility status. Plumbing, electrical and HVAC should be in good working order and up to code  Communication Residents and municipalities are at ground zero for “keeping small fires from becoming large fires” and being proactive with residents when asset stabilization concerns arise. Being available, transparent, and providing effective violation resolutions with full code compliance will help prevent potential legal and reputational risks in the future. Right Vendor, Right Time, On Time  Third party partners range from general contractors, trade partners and handymen to licensed field service professionals, locksmiths, debris removal and storage companies. It is essential that the correct vendor partner be engaged for each required task. Again, we see the importance of utilizing an asset management partner who has established relationships with a seasoned service vendor network. They will be experts at their craft, with the experience to know the most efficient solution to any challenge, and the technology tools to accelerate the process. Market- and Tenant-Ready The considerations outlined above reflect a shift in perspective that leads not merely to new tenancy, but enduring tenancy that drives property preservation, increases value, and enhances communities.  But this is not a simple process, nor a responsibility to be lightly assumed. From the legally and emotionally charged eviction process, to the regulatory minefield that is home inspection, stabilization and preservation, moving a property to a market- and tenant-ready state requires expertise, on-the-ground experience, and resolute attention to detail at every stage of the process. An asset management partner that can deliver that level of end-to-end performance is the servicer’s strongest ally.

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Proptech Companies Are Taking a Customer-Centric Approach

Combining Technology with the Human Element By Matt Olsen Henry Ford once said, “Most people spend more time and energy going around problems than in trying to solve them.” This quote perfectly captures how real estate companies should approach technology advancements in today’s digital age. It’s not enough to simply implement a new solution and expect it to resolve every problem; instead, the real estate industry is shifting toward a customer-centric approach. Whether they serve buyers, sellers, agents, or investors, real estate companies are challenged to stand out in a saturated market by providing the right solutions to build strong relationships while solving their customers’ biggest challenges. From reducing costs associated with paperwork and manual labor to giving investors access to automated data exchange from one singular platform, technological developments provide tangible benefits for those seeking to maximize operational efficiencies for scale. Innovations in technology are supporting the needs of investors by offering opportunities to automate manual workflows, standardize processes, and create seamless data exchange via APIs. Putting the Customer First Proptech companies that take a customer-centric approach are able to show they understand their users’ needs and demonstrate their willingness to address them. To put this in practice, Endpoint, a digital title and escrow company, took a deep dive into their customers’ specific challenges and technical requirements and focused on solving them with automation. For example, many real estate investors are looking to scale their businesses and expand into new markets. Traditionally, these investors had to source local title and escrow vendors in every region. However, with advancements in technology, they can now handle their transactions on a national scale with a single point of contact. Having a single platform to house all of their deals with open order automation, instantaneous document exchange, and real-time transaction statuses is a total game changer. By understanding which parts of the process are most cumbersome, proptech companies can focus on improving the features that would make the biggest impact on efficiency and allow customers to get more done in less time. “This is a problem in the sector that technology can solve,” said Shawna Hernandez, chief operating officer for Endpoint. “Automating tasks and amplifying the human aspects are big themes to lean into as the industry builds solutions to solve the frictions of volatility and standardization.” The Human Element While technology can save time and increase operational efficiencies, there are certain scenarios that still require a human touch. With large-scale transactions, a human touch is imperative to create confidence for the user, so they can rest easy knowing that they’re receiving personalized customer service and being supported by a team in addition to technology. The human touch is still needed to monitor the intricate details of the transaction process. “The companies that combine technology with people to deliver a seamless customer experience ultimately win,” said Scott Martino, CEO of Endpoint.  Technology needs to address the specific nuances of each business model. Because real estate is a relationship-driven industry, technology shouldn’t replace every human interaction. Even with technological advancements, proptech companies can still build loyalty and trust among their customers by providing a single point of contact that can address any questions or concerns. A Focus on Standardization In any product development initiative, it’s important to keep the process and user journey in mind. This means having a standard operating procedure (SOP) in place that guides users through the workflow specific to their respective transactions. “Standardization is key,” said Hernandez. According to Hernandez, the team at Endpoint identified standard practices that were ripe for automation, as well as areas where a personal touch was needed. They factored in such nuances to create a system that was effective at empowering employees to step in when a human touch is needed. This process was critical to ensure that all potential scenarios and outcomes had been taken into account — even situations that shouldn’t be automated. Standardization promotes efficiency throughout the entire process and ensures that all parties involved in the transaction are on the same page. Custom Solutions Built for Scale It’s beneficial for tech-forward investors to align with proptech companies that are building with their needs in mind because the solutions will help solve their unique frictions. When selecting proptech companies to work with, it’s important to look at the company’s core values and track record to ensure that the solution is tailored to the investor’s needs and not just a generic one-size-fits-all approach. When implementing new technology, investment companies should utilize the right change management practices to help ensure that employees are set up for success. A customer-centric proptech company will be able to partner with you to guide you through the process, so all team members can follow the standardized process and seamlessly integrate the technology into daily operations. Plays Well with Others Many real estate companies have their own technology and are looking for vendors that can integrate with their current tech stack via API integrations, which can sometimes be faster or easier than implementing an entirely new platform. Emerging proptech solutions, like those offered by InspectHOA, a platform that streamlines the HOA document acquisition process, can automate a seamless data exchange to improve and accelerate transactions. Endpoint has leveraged InspectHOA’s workflows to streamline an integral part of the closing process. By integrating directly via API, the HOA documents and data that InspectHOA collects can automatically be loaded into the transaction without human touch. It’s important to consider the resources it will take to implement an entirely new system and weigh that against the ease of using an existing platform via an API integration. By partnering with an outside vendor, you might be able to solve pain points more quickly, while also creating new relationships in the industry. Keeping the Customer in Mind As more proptech companies apply a customer-centric approach, investors will continue to benefit from customized solutions that will help them scale. Knowing the impact customer-centric solutions have on customer satisfaction means that striving to address each customer

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The Evolution of the Single-Family Rental

Investors Need to Plan for the Economic Shift Everyone is Feeling Right Now By David Hicks Real estate investing can be a great way to curate long-term, and even generational, wealth. The most common type of real estate investment is single-family rental (SFR) – as opposed to multi-family or commercial properties. Reportedly, there are 108.5 million Americans who rent their housing and 35% of those rentals are single-family homes. Sure, those facts and figures are promising, but is this type of investment still a viable option? What does the future of SFR real estate look like? In the wake of COVID-19, the current inflation troubles, and the record high interest rates, landlords and property managers need to plan for the economic shift everyone is feeling right now. There are a few factors to consider if you are contemplating the road to becoming a residential real estate tycoon. What are Single-Family Rentals and Why are They So Popular? By definition, a single-family rental is a home that is leased to a family or an individual. The property could be a standalone home, townhouse, flat, or apartment. Single-family homes are the most popular type of housing in the U.S. In fact, there were 82 million single-family units across the country in 2021. Tenants tend to be attracted to this type of rental because they do not have to worry about caring for a house. Owning a home takes a lot of work and everything rests on the owner. When you rent, there is always someone you can call to fix a towel rack that may have fallen or update an appliance that gave out. SFR real estate allows families to live in quality homes in nice neighborhoods without the hassles of owning the property. Plus, many single-family rentals have the amenities of a luxury apartment building, such as fitness centers or entertainment areas. These perks, coupled with extra outdoor space for families with small children or young couples with pets, make these types of rentals ideal. COVID’s Impact on Single-Family Rentals With the “zoom town” boom during the pandemic, the supply of homes for sale was not able to keep up with the demand – causing cutthroat bidding wars that resulted in houses being sold for much higher than the asking price. This accelerated the growth of SFR real estate. Single-family rentals allow millennials — the smallest group of homeowners in the country — the chance to embrace the suburban lifestyle without having to drop a large down payment or feel the strain of a monthly mortgage. With most of this demographic feeling the weight of resuming student loan payments, homeownership seems to be a far-off goal. Even if the Supreme Court rules in favor of President Biden’s student debt relief plan, many millennials may still have remaining balances to pay off. The interest-free forbearance, which has been extended nine times since March 2020, gave borrowers a chance to build their savings, just not for homes. However, with more companies shifting to work-from-home or hybrid schedules, younger employees can move away from expensive city living to take advantage of more space for fewer dollars. Additionally, if young renters want to move to another part of the country in a few years’ time, they have more freedom to do so without the strings of homeownership. This is especially important to millennials who have different priorities than other generations. According to Business Insider, millennials are willing to spend $5,000 or more on a trip — making them the highest travel spenders. Millennials also travel more than any other generation, taking a whopping 35 days a year to get out of town. Generation X, baby boomers, and Generation Z all take less than a month with 26 days, 27 days, and 29 days devoted to travel, respectively. The Future of Single-Family Rental Real Estate Even before COVID, the single-family rental real estate market was faring well, and predictions show it is only going to grow. From 2019 to 2020, there was a 30% increase in build-to-rent single-family homes. These types of property management owned communities make up about 6% of the homes being constructed in the U.S. — a figure that is expected to double over the next decade. It is also unlikely that renters will move on to buy a home anytime soon. Due to the high inflation rate — peaking at 7.11% last year — everyone is feeling a bit pinched for cash. In an effort to get a handle on the rising rate of inflation, the Federal Reserve has raised the federal funds rate seven times in the last year. Even though the inflation rate has started to come back down, the Fed is not planning to slow down the interest rate hikes. Hence, those invested in the residential real estate market may see an opportunity. With soaring interest rates, potential homebuyers are attempting to save money by renewing their leases instead of purchasing a property. This gives landlords at least another year of steady cash flow before having to worry about finding another tenant. Final Thoughts It is important to note that you do not have to be a major property management company to generate wealth through single-family rental real estate. Anyone could be a real estate investor in the SFR market. The strategy is straightforward: you buy a home when property costs are low, make any updates or renovations to the property, and rent it. Over time, you can take advantage of increased rent costs and appreciation. When you are ready to sell the home, ideally, you will be selling when asking prices are high. At the end of the day, your ability to properly maintain the home will be a big determining factor in its overall value. While there are other components to consider, such as location, type of home, amenities nearby, etc., fresh coats of paint and updated appliances can go a long way when it comes to deciding a rent or asking price. Residential real estate

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An Ounce of Prevention — Best Practices

Preventive Maintenance Plans Can Save You Time, Money and Hassle By Doug Ellis As they build their portfolio of single-family rental (SFR) properties, owners and operators focus on key business strategies—to find quality renters, reduce tenant turn times and maximize their investment. But there is one step a lot of owners and operators often overlook: preventive maintenance. Part of maximizing your SFR investment is ensuring that each of your properties is properly maintained. You do not want to waste your time or money, so be strategic and thoughtful in your approach. This means knowing what you have in each of your homes and investing in a preventive maintenance plan. Here is what you need to know about getting started with SFR preventive maintenance plans. Start with an Asset Database Many SFR investors are lacking a simple tool to help them manage their properties effectively—a database that catalogs the fixed assets within each home they own. For example, how old is your HVAC unit? When was the water heater last serviced? Have there been roof repairs? An asset database is key to staying on top of property maintenance, and that is critical because missing key maintenance checks can lead to expensive capital investment repairs and replacements later. Having a detailed record of your assets, as well as which services have been performed and when, can help you properly maintain the properties. This work ultimately helps prevent unnecessary costs and headaches. Plus, this data can enable predictive analytics so you can perform preventive, versus reactive, maintenance. Build Preventive Maintenance Plans With your asset database in place, you are able to build proactive preventive maintenance plans. Having an established maintenance plan in place can help reduce or prevent potential repairs and extend the lifespan of everything from HVAC units to plumbing fixtures. Plus, you can use the information to make decisions regarding capital investments. So, what items should be included in your plan? To help extend the life of the assets within your SFR properties and capitalize on your investments, MCS’s investment property management experts recommend at least biannual maintenance checks that include: HVAC systems HVAC preventive maintenance helps you protect your SFR investments by avoiding extensive repair costs, early unit replacements and lost revenue from disruptive tenant relocations in the case of an outage. Schedule checks that follow ASHRAE standards for HVAC preventive maintenance with your SFR property services partner twice a year to keep your system in working order. Each year MCS receives a large number of work orders due to backed-up condensate lines, an issue that can result in drywall damage, mold and remediation. With a proper preventive maintenance plan, HVAC condensate lines are “blown out” to help prevent back-up, keep the system operating efficiently and reduce larger repair expenses down the road. Filter Changes Beyond biannual checks for your overall HVAC system, regular filter changes should get their own checkmark on your preventive maintenance checklist. Replacing HVAC air filters is essential to extending the life of your units. But even though your tenants would experience cleaner air and near-term savings—the U.S. Department of Energy notes that replacing a dirty filter can reduce an A/C’s energy usage by 5% to 15% — it is a task you should not hand over to them. Instead, schedule regular filter changes with your SFR property services partner. Roofing Roofs and gutters may be the most frequently neglected maintenance item—until there is a problem. Avoid big repairs or emergencies through regular inspections and cleaning. Ensure your property services providers check for potentially loose or damaged shingles or tiles and clear gutters regularly to avoid standing water and reduce fire hazards.  Water Heaters Extensively used assets like water heaters require checks to keep them working well—and longer. Because sediment can build and pollute the water in your water heaters, scheduling preventive maintenance checks every year to flush them can help keep them running as efficiently as possible. Plumbing Preventive plumbing maintenance can catch small issues before they turn into bigger ones. Have your property services provider regularly check all plumbing fixtures to ensure they are in working order and are sufficiently tightened or fastened. Drain cleans to avoid backups should also be on your checklist. Landscaping Do not neglect your SFR properties’ exteriors. From ongoing yard upkeep and fence repair to the winterization of sprinkler systems, addressing issues before they become problems via preventive maintenance maximizes your investment in multiple ways, including avoiding costly fines for HOA and other municipal violations. Find a Partner to Help Having a property services partner to oversee critical investment property maintenance and management tasks can help you keep your properties in peak condition. A good partner can help you build and maintain your fixed asset database, keep preventive maintenance schedules and serve as a maintenance expert for your entire SFR portfolio. Beyond handling these critical needs, your property services partner also can help you understand and consider the bigger picture of your entire portfolio, so you can confidently decide when and where to make capital investments strategically. We see a lot of owners forgo preventive maintenance, but that choice consistently backfires. You would not expect your car to keep running well—or for long—without regular oil changes and other maintenance. The same is true for your homes.

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