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Property Management

Ease SFR Property Management

How to Utilize Smart Home Automation By Jason Myers A comprehensive smart home technology package elevates the value of a single-family rental (SFR) property for both the operator and renter. Smart tech can also ease the daily burdens of managing hundreds, if not thousands, of SFR properties in a portfolio. These smart home devices and systems (like lighting, security, HVAC and irrigation) are remotely controlled with ease via a smartphone app or via your computer. Property managers can also tout the benefits of smart home technology when renting an SFR property, differentiating it from other options and potentially driving increased rents for added functionality. Here are a few of the most important items to consider including in a rental property’s smart home automation package to help you enhance the property management experience while maximizing your SFR investments. Smart thermostat According to a 2022 survey from rent.com, smart thermostats that can be controlled remotely are the most sought-after smart device among renters. And with the convenience and comfort they can provide, it is easy to see why. Most models enable users to adjust heating and cooling temperatures based on the hours residents are home to help maximize comfort and lower energy bills. Some can even use geofencing capabilities that allow them to detect whether a resident’s mobile device is present to know when to turn the A/C or heat up or down. Furthermore, when a property is vacant, the property manager can control the asset from a centralized location, making it easier to efficiently manage the home and reducing unnecessary energy consumption and related expenses. Smart security system Smart home security and remote monitoring is becoming more common, so there are plenty of systems to choose from. Options today allow your renter to decide if they want to do the monitoring themselves or via a surveillance subscription. Either way, they can receive alerts anywhere about potential security threats, such as a garage door left open, and they can even arm and disarm the system remotely. In between renters, property managers can keep an eye on vacant properties to help reduce the chances of squatters or other unwanted parties entering a property. Smart locks Smart locks were the second-most-requested smart item by renters in rent.com’s survey. There are multiple types of smart locks that allow residents to remotely lock, unlock and monitor doors via a phone app, maximizing both property security and convenience. Some options do not actually replace the lock mechanism, so a physical key can still be used as a backup. Plus, most smart locks allow users to confirm they have locked a door after leaving home for added peace of mind. Smart smoke and carbon monoxide detectors Smart smoke and carbon monoxide detectors (often combined into one device) can provide an extra layer of safety to your technology package. If there is an emergency, the devices can send alerts to the resident’s smartphone (and even property management with renter approval). They can also let users know about low batteries without the typical loud chirping of conventional models. Some models can even connect to other smart home technologies like lighting, allowing residents to be alerted by a flash or color change in every room so everyone is aware of an emergency. Smart outlets Smart electrical outlets enable greater convenience and safety by letting users control the power to any device plugged into it remotely via a smartphone or voice assistant. Residents can turn off a lamp or iron that they forgot to shut off before leaving home (or using voice commands when at home). Users can also track their energy use with some models and design schedules to automate their use. Smart doorbell Your tenants can know who is at the front door without leaving the couch (or from anywhere in the world) with a smart doorbell. These smart devices show who is on the porch via a smartphone app and allow users to talk to the person remotely as well. Some can also detect deliveries, helping residents to secure packages and prevent theft. When a home is vacant, property managers can leverage this tool for another layer of securing a property from unwanted visitors. Smart lighting Forgot to turn off the lights before leaving home? Or want to be able to turn specific ones on and off while away on vacation? Smart lighting technology can deliver. Not only can they be controlled remotely, many use location-based controls to detect the user’s smartphone location and turn lights on or off automatically. Smart garage door Smart garage doors can help make your SFR home safer and add convenience for your renters. Whether you add smart accessories to an existing garage door opener or opt for a new smart garage door system, renters will be able to remotely monitor and confirm whether the garage door is open or closed and open or close it as needed from any location. Be Smart About Your Smart Home Package When you are ready to add a smart home technology package to your SFR, there are several key considerations: Budget // What part of a property’s budget can be allocated to smart home technology? How much additional revenue can be generated by offering these enhanced features? Consistent Equipment // If you are considering upgrading your homes with smart home automation, installing consistent equipment across all of your properties is integral. This creates multiple benefits including being able to purchase equipment in bulk, which can reduce cost; quicker installation because of system familiarity; consistent education/troubleshooting for both tenants and property managers; and better centralized monitoring. Installation Partner // Finding a centralized partner who can install and get the equipment operating quickly reduces down time if a property is empty and interruptions to the tenant if the home is occupied. A strong partner may also be able to inventory and warehouse your equipment and deliver as needed for installation and repairs. As smart home automation becomes more of the norm, now is the time to consider your

Asset Management

The Business Case for Centralized Services

Reduce the Complexity of Managing Multiple Services By Jason Myers Single-family rental (SFR) property owners and operators of all sizes face a similar challenge when it comes to working with multiple vendors for different required services, and that is hoping that those providers can get the job done efficiently and on time. Regardless of portfolio size, SFR investors, institutional owners and property managers commonly rely on their local or regional employees to farm out the services, often with many different providers. Navigating this maze of vendors, service providers, contacts, services, and schedules frequently becomes more complicated—and more costly—than it needs to be. Additionally, many smaller providers often lack the technology, processes and redundancy that larger, more established players can offer. How are we defining centralized property services? When you contract and manage a reduced number of services partners, you’re centralizing (or consolidating) services. That can mean working with a single partner nationwide or a select few providers in each region or market. Many of our SFR clients are making a strategic shift to adopt a centralized approach. Centralizing property services such as inspections, lawn care and preventative maintenance can help eliminate hassles and even yield cost savings. So, why are SFR companies making this shift, and why does it make so much sense? Saving time and hassle // Centralizing core property services can offer a one-stop solution, allowing the provider to handle the service, back-office support and logistics, while enabling you to maximize efficiencies and shift talented staff to revenue-generating roles. And if the same partner is already handling other tasks at your properties, you can reduce the number of touches required to complete projects within a single group and minimize the staff required for oversight. Redundancy // Working with individual service providers not only creates more complexity, but it also leaves you more vulnerable if something goes wrong. For example, if a truck breaks down, equipment isn’t working or a contractor doesn’t show, there’s no redundancy in your system to deliver a backup plan. The key is choosing a single source with access to multiple service providers, whether they are self-performing or outsourced, so you know you’re always covered. Consistency // Working with a larger, established provider yields both efficiencies and consistency in the work they deliver. You know you can count on them to be there when scheduled, as well as the next time you need services performed. And one key benefit is their services will be performed in the same manner—and to the same standards—across all of your properties. Protection // Managing multiple services vendors also can lead to other headaches—for example, increased exposure to risks, such as uninsured or underinsured contractors. Working with a single company with a large footprint ensures you’re covered, from background checks and licensing to insurance, safety training and more. Technology // The technology capabilities that a larger company can deliver offer a better line of sight and peace of mind. When their portal connects to your platform, you can add, track, and confirm jobs (with before-and-after and check-in/out photos) without leaving your desk. This furthers the time savings for your team, allowing a smaller group in your vendor management department to be more effective. Financial savings // Working with a larger company may even yield financial savings due to their buying power, but it requires looking at the complete picture. For example, you might be paying $5 more per service, but if you’re able to reduce headcount (or shift it back where it needs to be), you can still end up with overall savings and improved efficiencies. MCS has seen centralized programs priced competitively with local crews based on the total number of assets being serviced in a market. How Do You Get Started? Moving to a centralized service model requires careful planning and leadership on the front end as well as time to evaluate and recalibrate as the program gets up and running. Here are a few key things to keep in mind to help ensure the success of a centralized model. A thorough and realistic definition of the scope of work Work with your service partner to define the scope of work so it’s mutually understood and agreed on. Clarity is key: A detailed scope should list and describe the services you expect a potential partner to complete and when and how you expect them to be completed, so there are no surprises in the ultimate results or costs. Communication from the executive level to local managers Just as frequent and clear communication between you and your provider is essential, how you communicate this substantial business shift within your organization will be critical to its success. How will you roll out this new model (and new partner relationship) to your local leaders? Many may have long-term relationships with current providers, so your messaging will need to address an understanding of their situation and also provide the reasoning behind the decision and facts to support the shift. Easing into the relationship with your provider Going from numerous services providers to a single source may be a bigger shift than you’re ready to make. The good news is you won’t have to start with an exclusive partnership to see success. A centralized program can be phased in over time to help foster a smooth transition. You may also consider starting out with two or three providers so quality work can be rewarded with increases in property share, and it provides redundancies as the program starts. Technology integration to easily turn on and off You need to be able to shift services as properties enter or exit your management portfolio, and relying on regional managers to communicate this for each property can lead to missed or duplicated services. A robust technology platform can help track this information and prevent missed services and duplication of work. Consolidating your service partner list can reduce the headaches and complexity of managing multiple services for your SFRs. When you select an experienced company with a

Single-Family

Energy Savings for Your Single-Family Rentals

Achieve Savings Through Regular Inspections & Proactive Maintenance By Jason Myers Conserving energy is not just good for the environment anymore. It is also good for your bottom line. Being smarter about energy use yields home energy savings and enhances the value of your rental properties. It is one of the easiest win-win scenarios possible today. Most investors like the idea of saving energy, but they assume the process will be too time-consuming or expensive to set up. Fortunately, there are numerous simple things you can do to cut energy costs that will not break the bank up front. Here are nine ideas to help you cut energy costs on your single-family rental (SFR) properties: 1. Do a Home Energy Audit The best way to cut energy costs is to first determine your baseline. An energy audit can provide this information. You can work with a certified auditor to evaluate your properties and identify and prioritize potential improvements or you can opt for a DIY energy assessment. Typical recommendations after an energy audit include adding insulation in your roof or walls; improved heating, cooling and hot water equipment; and installing new ventilation, LEDs and smart thermostats. 2. Install LED Lighting If you have not already made the switch to LED lighting, it is an easy way to enhance your energy savings. A single ENERGY STAR-certified LED light bulb requires approximately 90% less energy than traditional incandescent bulbs, which can save you around $55 over the life of the bulb. Even better, LED bulb life is about 15 to 25 times longer than an incandescent so you will be buying fewer bulbs overall. 3. Save with Air Sealing One of the most efficient (and often simple) ways to lower your heating and cooling costs is by sealing air leaks using weatherstripping and caulk. First have an energy assessor test your home for air tightness to determine if and where leaks are occurring. They will likely conduct a blower door test, which can identify leak locations and help determine if any areas of your property need additional insulation. 4. Energy-Efficient Appliances Your best bet for achieving home energy savings via appliances is to upgrade the current appliances to products with an ENERGY STAR label when they break down or age out. This goes for everything from microwaves and dishwashers to hot water heaters, stoves, washers, dryers and refrigerators. In fact, the U.S. Department of Energy estimates that you could save hundreds of dollars annually by replacing a 10-year-old refrigerator with a new ENERGY STAR model, and an ENERGY STAR hot water heater could save you up to $3,500 in energy costs over its lifetime. Have your property services partner inspect and audit the current appliances across your portfolio to create a database of information including the current ENERGY STAR rating, make/model and serial number, a life-of-product estimate, and recommendations for newer energy-efficient options when the time comes. 5. HVAC Preventive Maintenance Heating and air conditioning account for nearly half of residential electricity consumption, so keeping your HVAC system in top condition is smart for both conserving energy and prolonging its life. Preventive maintenance checks can help with both. During a typical check, HVAC air filters are replaced, and condensate lines are “blown out” to help prevent back-up, keep the system operating efficiently and reduce larger repair expenses down the road. Schedule regular checkups like these for preventive maintenance at least twice a year with your property services partner, and put them in charge of filter changes as well. This proactive combo can help prevent damage to your system and avoid costly emergency repairs as well as deliver home energy savings. 6. Smart Meters The ability to monitor energy usage in nearly real time is not a futuristic notion; it is already here, thanks to smart meters. Installing these gauges can allow your properties to communicate with their respective utility providers, improving reliability through faster responses to outages. You can also enhance efficiency in your systems by getting a better handle on residential usage and how to make changes to lower costs. 7. Window Upgrades Windows can be responsible for as much as 30% of a home’s energy use, so upgrading them can be a priority that pays off in the long run. If it is time for your windows to be replaced, this is a perfect opportunity to move to more energy-efficient models. If your windows are still in good condition, you can make strides in energy efficiency through smaller upgrades like eliminating air leaks, caulking and weatherstripping, applying solar window films and replacing window coverings with more energy-efficient options. 8. Insulation Improvements Are your SFR properties well insulated? This one measure can help reduce energy use, make the interior of your homes more comfortable for tenants (and thus reduce temperature complaints) and deliver home energy savings of up to 10%. Before making improvements, have a professional check for air leaks as well as assess the insulation levels in your walls, attic, basement and crawlspace to help determine a property’s needs and priorities. No matter how your rental agreements are structured, making improvements with the goal of home energy savings in mind can have long-term benefits for both you and your tenants. Energy costs go down (a draw for many renters), and you can lengthen the life of your HVAC system. A few simple changes really can add up to savings over time. 9. Find the Right Partner A good property services partner can help you determine the most strategic green upgrades for your properties as well as execute many of them while also performing preventive maintenance that ensures you get the most out of your SFR investments. Learn more at mcs360.com

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