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Single-Family

Single Family Rental Turns

Maximizing Tenant Satisfaction By Nickalene Badalamenti-Kalas It is an established dynamic in the single-family rental (SFR) space that a satisfied tenant tends to be a long-term tenant. Conscientious investors and property managers recognize the importance of fostering tenant satisfaction and understand the essential difference between a house and a true home. The former necessitates administrative efforts, whereas the latter yields substantial and perpetuated financial returns. There are a number of key criteria that support tenant satisfaction and long-term tenancy, and the critical juncture to addressing those criteria lies in the transition between occupants, a period averaging between three and five days. This brief interval involves many moving parts, making the tenant-turn process a multifaceted challenge. Achieving success during a tenant turn is predicated on all stakeholders —investors, property managers, inspectors, field service professionals — understanding and conducting their interdependent roles quickly and effectively. An empty house will detract from a neighborhood, it’s a waste of resources, and an inadequately prepared home is a wasted opportunity. A field services partner with the necessary scope, resources, and expertise to execute quick, high-quality turns on time, on budget, and within rental requirement guidelines are essential. Here are factors that make a difference in transforming a house into a true home, and that will help ensure your tenants’ satisfaction. Inspection/Scope The first step toward a swift and comprehensive tenant turn is a thorough inspection/scope. Proper execution within rental requirement guidelines demands training, oversight, and thorough, accurate documentation of the property’s condition. Experienced field service professionals can deliver a fast, technology-enabled inspection/scope — fully documented with geo-tagged and time-stamped photos — that meets rental compliance certification requirements These detailed reports are essential to processing claims and initiating necessary cleaning, repairs, grounds keeping, and other necessary work. The Satisfied Tenant Tenant satisfaction hinges on maintenance, repair, and cosmetic considerations. Long-lasting tenants want a house they can move into easily and seamlessly and that they can turn into a home without encountering livability issues. Factors influencing tenant satisfaction include the condition of interior walls, floors and working surfaces, exterior walls and roofs, windows, appliances, utilities, locks, alarms and other safety features, and the overall appearance and neatness of grounds, sidewalks and driveways. Doors, windows and attic insulation may require attention to maximize heat retention during winter months, and lower utility bills. Equally important to the tenant’s satisfaction is their relationship with property management and the prompt, professional resolution of maintenance and repair concerns. When a tenant feels supported in their home, they will be much more likely to take a personal stake in the care and upkeep of the property. The Quality Turn for the Happy Tenant To ensure a SFR property is turned over to a new tenant in the best possible condition, the following key components must be addressed during the turnover process: Appliance Audit Your field service providers should conduct a thorough assessment of major appliances and functional “systems, including HVAC, furnace and water heater, oven, dishwasher, microwave and laundry appliances. Regular maintenance checks on HVAC and climate control systems are essential in extending system life and preventing costly repairs. Plumbing Another area where an ounce of prevention is worth a pound of cure is the plumbing system. Field service providers will examine the general health of the plumbing network, checking for existing and potential leaks, backflow hazards, and water heater efficiency. This is also the perfect opportunity to address overall system efficiency, with consideration for improvements such as low-flow toilets, high-efficiency faucets, or tankless water heaters. Interior Cleaning A thorough deep clean of the home is essential to attracting the committed, long-term tenant. When they assess their future home, it should be in as-new-as-possible condition. The process should include steam-cleaning of carpets and floors, replacing as needed, cleaning and/or painting of walls and ceilings, cleaning interior and exterior window surfaces, and clearing out HVAC and heater vents. Window treatments including blinds and curtains should be addressed, and woodwork including baseboards, wainscotting and stair rails should be cleaned. This is also a good time to address air quality, with purifiers and ozone treatments, as necessary, to ensure an impression of overall quality and cleanliness upon entering the home. Exterior Cleanup When approaching the property, if the grass is tall or the entryway is dirty, a prospective tenant will be put on guard and begin looking for more things that are wrong. Your field service provider should enhance the curb appeal by attending to weeds, landscaping and trees, lawn maintenance, gutter cleaning, driveway and walkway appearance, and exterior walls and windows. In the latter cases, a power washing can do wonders for revealing the home’s native charm and curb appeal. Property Improvements The turn interval between tenants is also the ideal opportunity to make improvements and complete necessary rehabilitations where appropriate. Our field rehabilitation services are designed to improve efficiency and enhance visual appeal, such as kitchen and bath remodeling, landscaping, and irrigation system installations. Regarding efficiency, there are a range of upgrades available to lower tenant costs, including energy-efficient appliances, smart thermostats and locks. Consider upgrading to more efficient windows, door sealing and other insulation measures. Upgrades such as home alarms, smoke alarms, radon and CO2 detectors, and security cameras can go a long way to giving tenants the impression of a safe and secure home. A Lasting Investment The goal of any SFR property is to attract and retain high-quality tenancy. These are the tenants who want to create and protect their home for the long term, and who will complement your investment in the home with their own. They are more likely to take responsibility for its care and maintenance, lowering overall costs and increasing returns. Because the tenant-turn interval is brief and can include a wide range of activities, expert supervision and oversight are essential to executing a quick, quality turn. Your field services partner should be selected on their ability to manage the project within timelines, budgets, and rental requirement guidelines while ensuring a delighted tenant experience. This approach

Risk Management

Getting Ahead of the Storm

Property Management Pre- and Post-Disaster By Nickalene Badalamenti-Kalas Weather extremes and severe storm events are occurring more frequently across the United States and around the world. These events have not only caused significant damage to properties but also impacted new regions that are not fully prepared to confront them. The increasing occurrence and intensity of natural disasters calls for proactive measures to mitigate potential property damage and expedite recovery efforts. The Need for Predictive Disaster Management The growing frequency and severity of weather-related disasters such as hurricanes, floods, tornadoes, and wildfires have wreaked havoc on communities and caused substantial financial losses. According to the NOAA Climate Disaster Report, the total cost of damages due to weather effects in 2022 exceeded $165 billion in the United States alone. There is little or nothing we can do to control these events, but predicting their occurrences and proactively mapping their potential paths are essential steps toward minimizing their impact on real estate assets and the people who occupy them. The CLADE™ Disaster Alert System Five Brothers, a leading field services company and provider of best-in-class asset management solutions, has developed a revolutionary technology called the CLADE Disaster Alert System. By leveraging advanced technology, CLADE enables servicers, investors, and property managers to take proactive measures to protect at-risk properties before a disaster strikes, and streamline the inspection, debris removal, and claims processes post-disaster. It presents a real-time visual presentation of affected areas, enabling a strategic approach to risk management. CLADE Key Features  >         Advanced Geo-Tagged Asset Locations: CLADE employs advanced geospatial technology to accurately pinpoint the location of assets, providing a comprehensive view of the properties within proximity to potential disaster zones.  >         Real-time Disaster Occurrence Notification: CLADE provides real-time alerts to clients whenever a potential disaster event occurs near their assets.  >         Layered Mapping for Disaster Zone Identification: The system utilizes layered mapping to quickly identify disaster zones, providing visual representations of the areas likely to be affected by various natural disasters.  >         Exportable Property Lists for Asset-Specific Analysis: CLADE generates exportable property lists that include an asset-specific analysis, enabling clients to prioritize their response and recovery efforts.  >         Storm Surge Mapping Layer: Recognizing the significance of storm water inundation and flooding accompanying hurricanes to coastal and inland regions, CLADE assists in identifying areas and assets most susceptible to flooding.  >         One-Click Access to Field Service Orders: CLADE offers a one-click access feature, allowing users to promptly place pre- and post-disaster field service orders for necessary property protection and stabilization measures. Implementation and Scalability CLADE is available both as a value-added component of the Five Brothers asset management technology suite, FiveOnline, and as a standalone application. Users can easily upload their portfolios using the intuitive CLADE interface. CLADE is scalable to accommodate portfolios of any size for default, REO, REI vacant and/or occupied properties. Pre- and Post-Disaster Field Services When at-risk properties have been identified, stakeholders can quickly engage Five Brothers’ nationwide network of field service professionals to prepare properties for the coming weather event. When the storm has passed, field service personnel are dispatched to conduct exterior and/or interior inspections with geo-tagged photos and complete documentation. Based on the report findings, bids are submitted for board removal, utility reconnection, debris removal and relocation, and tarp-over services to prevent further damage. The clear benefit CLADE brings to these services is reaction time. It provides a critical interval in which to prepare assets to minimize damage pre-disaster, and to order boots on the ground to quickly assess property conditions and accelerate the claims and remediation processes post-disaster. It represents a transformative asset management solution to the growing challenges posed by weather extremes and severe storm events. See the CLADE technology introductory video and explore Five Brothers asset management solutions at fivebrms.com.

Property Management

Buy and Hold Property Management

Accelerating Occupancy Through Timely Field Services By Nickalene Badalamenti-Kalas Increasingly, buy and hold property managers and investors are looking to move at-risk or delinquent assets to long-term, income-generating homes. In these scenarios, time literally is money. As a property remains unoccupied, it is not only failing to generate income, but it is also generating losses as maintenance costs continue to accrue to keep buy-and-hold properties in tenant-ready condition. Moving properties quickly into tenant-ready condition also works to eliminate community blight.  Speed and efficiency are of the essence as are code compliance, accuracy of inspections, the quality of field work provided, and completeness of documentation. A difficult order to fill without help. Engaging an Experienced Partner Savvy property managers and investors tackle this challenge head-on by engaging an asset management team who can deliver:  »         A full complement of turn- and make-ready services to stabilize properties and values  »         A nationwide network of field service professionals who can respond quickly to any eviction, rehab, repair, maintenance, or asset management requirements  »         A mastery of code and regulatory compliance and documentation, to forestall preventable violations, added fees and costs  »         Property registration services  »         Disaster alert technology to forewarn managers and investors of potential storm damage to their assets, as well as an experienced field service team to perform asset stabilization services Here are the essential elements in a market- and tenant-ready property strategy. The Ideal Tenant It is an axiom in the buy-and-hold universe that the quality of a home — and by extension, the quality of a community — determines the quality of the tenant. Good tenants are conscientious custodians of a property. They don’t want a “rental.” They want a home of which they can be proud and make their own, and care for as long as they live there. For many investors and property management companies, this presents a shift in perspective, from numbers on a spreadsheet to individual investments that generate maximum value to owner and tenant alike. The long-term, successful buy-and-hold strategy begins with the understanding that a well-manicured, properly maintained, code-compliant property attracts tenants who want to stay and compound the asset’s value. Vigilance is Key Proper care and monitoring of at-risk homes is essential. Monitoring and responding to delinquency trends, resident and municipal concerns, and proactively stabilizing each asset will begin to enhance property values. Inspection and Scope Services In the buy-and-hold market, inspections are critical, whether prior to or after acquisition, to determine occupancy, document property condition, and establish the scope of turn- and make-ready services required for bringing the property to tenant-ready status. All inspections should incorporate a full set of geo-tagged and time-stamped photos in the inspection report, to determine scope of work needed and begin the bid submission process for completing all field services needed to quickly stabilize the property for the next occupancy. Field Services There is a host of field services that investors and property management companies should consider when preparing their assets to attract quality tenants. These encompass debris removal, lock replacement, general rehabilitations, HVAC, plumbing and electrical work, preventive and seasonal maintenance, landscaping, snow and ice removal, and various other occupied and vacant maintenance needs including roofs, flooring, pools, fences, and painting. Enhancing both the visual and functional appeal of assets should include increasingly-expected smart home installations for locks, thermostats, automated irrigation systems, security and camera systems. Up-grades to kitchens, bathrooms, and landscapes have an immediate appeal for prospective occupants, and communicate the owner’s commitment to tenant satisfaction. Registration Services Asset registration is a highly specialized service that is increasingly required by municipalities, to ensure full compliance with varying regulations across different jurisdictions. These services include verifying jurisdiction through portfolio scrubbing, monitoring evolving local, county, and state ordinances, registering, re-registering, and de-registering assets, processing required fees and tracking refunds, and assigning local contractors for emergency services. Compliance: Peace of Mind Throughout the process of transitioning a property to tenant-ready status, there exists a minefield of compliance and regulatory mandates that must be navigated. A field service partner will assist clients in proactively handling code compliance to prevent costly and time-consuming violation remediation. Should a violation be issued, they should very quickly acquire the relevant specifics, reports and documentation, and deploy expert field services professionals to remedy the situation. Pre- and Post-Disaster Asset Stabilization An increasingly critical asset stabilization service is pre- and post-disaster property oversight. Developed by Five Brothers, CLADE™ Disaster Alert System is an advanced tracking and mapping technology to help managers and investors monitor property status in the advent of natural disasters or severe weather events. It leverages geospatial technology to help determine the likelihood of damage to properties potentially in a storm path, to allow proactive measures to reduce or prevent damage, and allows easy ordering of pre-disaster services that include board ups and electrical disconnects. If damage is inevitable, CLADE technology identifies which properties have likely been impacted, and generates a report sent directly to the manager and/or investor. Once the area is deemed safe to enter, post-disaster field service orders include on-site damage inspections, board removal, debris cleanup, tarping, remediation and restoration work. Electrical reconnects are promptly addressed as well. The Tenant-Ready Portfolio: Sustaining Community Value The considerations outlined lead not merely to new occupancy, but enduring occupancy that drives asset stabilization, increases value, and enhances communities. The need for urgency cannot be overstated. With a strong field services partner, at-risk properties are transformed into appealing, desirable homes that attract coveted tenants, and fuel continuous and long-term value — this is the ideal outcome.

Single-Family

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.

Single-Family

Eviction Management

Transitioning From a Default Property to a Paying Asset By Nickalene Badalamenti-Kalas The government-mandated forbearance period on default properties expires this coming June. These properties will increasingly require eviction and asset stabilization services to ready them for new tenants. What many may not be aware of is the delicacy — and absolute compliance — with which these services must be administered. A single misstep anywhere in the process, and the process will begin all over again. The current tenants remain in occupancy, incremental costs are incurred from legal and court fees, and the property continues to generate zero income. To facilitate the transition from default property to paying asset, small and mid-size investors and trusts — and their attorneys — are turning to asset management companies with the regulatory expertise, eviction and nationwide in-the-field infrastructures, to manage this process and migrate these properties to tenant-ready, income-generating assets as quickly and comprehensively as possible. THE RENTAL MARKET As more and more properties emerge from forbearance, many investors are collecting portfolios and preparing them as rental properties, either as single-family rentals, high-quality vacation homes, or for short-term rentals such as Airbnb.  Whether they decide to “fix and flip” or “buy and hold,” whoever has their new acquisition tenant-ready the soonest will see the fastest returns. EVICTION/LOCK OUT FACTORS In simplest terms, the eviction/lockout process consists of servicers like Five Brothers coordinating all activities with all stakeholders, including the investor, the attorney, the field service professionals, and local law enforcement. Amidst the eviction process, there are very specific compliance requirements mandated by the court, as well as local, county and state ordinances, and they must be followed to the letter. These regulations vary significantly from market to market, and asset management field service companies must be conversant with ordinances in each. For example, New Jersey and New York have strict mandate requirements regarding the number of field service professionals needed on site during an eviction, unless it is specifically overwritten by the sheriff. In certain markets field service professionals may be required to be licensed, such as movers or storage facilities in order to have the capability to remove debris, personal effects, furniture, and even vehicles from the property, and relocating it to storage facilities or dumps. Consistent with the specified lockout date and time, the need for an experienced eviction team to coordinate and complete lockout procedures is paramount. Another example of the need for accuracy: if the field team is even 5 minutes late, the sheriff can call off the lockout process, the property remains occupied, continues to generate no income, and the eviction process may be required to start from scratch. The need to understand and fully observe all local statutes and maintain the highest professional standards cannot be overstated. The original eviction request may be a simple lock change, but once the interior of the property is accessible by the sheriff, he or she could immediately order a complete trash-out of the property, potentially involving hundreds of cubic yards of debris. If the sheriff requests a complete trash-out and/or seasonal maintenance to mitigate blight or violations in the property’s disposition, the field team must be capable of completing that task while on site. The field team is also responsible for providing the client with progress updates throughout the eviction process. CASH FOR KEYS A pre-eviction strategy called “cash for keys” offers a cash sum for the return of the property’s keys. Utilizing this tactic can save an investor money and help avert damage to the property inflicted by the current tenants out of spite or rancor towards the investor. In certain cases, this may take the form of forgoing the security deposit if the property remains undamaged and in broom-swept condition. INSPECTIONS Once the property is unoccupied, investors have the authority to begin rehabilitation to get these assets into tenant-ready condition. This begins with an inspection that thoroughly documents — with geo- and time-stamped photographs — the condition of the home and all work needed to prepare the property for the next tenant. These photos also help validate that the products and services ordered by the investor are those being utilized in the rehab. Geo- and time-stamping are becoming industry norms, and many funding partners are beginning to require them for fund disbursements. ASSET STABILIZATION For portfolio properties that are unoccupied, engaging in-the-field asset stabilization activities to ensure the property is in immediately-rentable condition is important. These activities may include minor rehabilitation work, yard cleanup, pool openings and closings, gutter clearing and lawn care. In colder climates, winterization may be necessary, ranging from heating and plumbing fixture maintenance to insulation work. BEST-IN-CLASS DISASTER TECHNOLOGY Five Brothers utilizes proprietary asset stabilization disaster technology called CLADE, an advanced mapping system designed to help investors monitor property status in the advent of natural disasters or severe weather events. CLADE leverages geospatial technology to help determine the likelihood of damage to properties potentially in a storm path, and to allow proactive measures to reduce or prevent damage. If damage is inevitable, CLADE technology helps investors determine which properties in their portfolio have likely been impacted, and generates a report sent directly to the investor. They can then order FEMA inspections, hazard claims repair bids, as well as remediation and restoration work. SERVICE FLEXIBILITY The need for fluency in the eviction, inspection and asset stabilization process is essential. For investors without a dedicated asset stabilization team, Five Brothers can seamlessly function as the in-house field service company, providing all the elements required to remain in-the-know with compliance changes as they occur, and ensuring that property requirements are met quickly, completely, and compliantly and returning the property to tenant-ready status.

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