Follow Eddie and Pristine Property Management in Fort Lauderdale, Florida through the renovation journey of this building. Watch as Pristine Property Management transforms this property into a new, profitable investment for its owners.
Property Renovation & Repairs
To date, we have repainted, upgraded the roof, resurfaced the pool, laid new pavers, and re-tiled all of the common areas; three units have been renovated as well.
Stay tuned for an update on this Fort Lauderdale’s Property Management renovation journey.
If you have any questions about property management in Fort Lauderdale, FL, contact us here at Pristine Property Management.
Today we are talking to you from Atlanta, where we are attending the National Association of Residential Property Managers (NARPM) national conference. Brian Birdy has joined us, who is one of the board members of NARPM and an amazing guy and a great educator. Brian is sharing with our property owners why it’s beneficial for investor clients to select a NARPM member as their property manager.
Individuals who join NARPM have made it clear that they will be a specialist in management and an expert in the field of property management. There are lots of individuals and real estate agents who do property management, but it changes when you actually join NARPM and commit to being educated, ethical and sharing with other professionals.
Property managers who do not belong to NARPM have not figured out the potential of that experience and this association yet. We learn from each other about how to better serve our clients, including investors or reluctant landlords or whoever the property owners might be. Property managers get trained in how to better run their businesses. That means we are more successful while helping our owners and investors to be more successful.
At NARPM events such as this, we learn about the laws, how to best protect properties and keep owners properly insured. All of the education we receive helps us run our businesses well and give the best service possible to our clients. We learn these things not only by being a NARPM member but also by attending events like this one. The fact that all the property managers here took the time and the energy to come to the annual conference shows that they are interested in getting better educated.
Since we have become NARPM members, our business at Pristine Property Management has really been revolutionized. Our methodology has changed and we’re really using everything we learn to provide better business and high quality service to our clients.
When you’re interviewing a property manager to take care of your rental home or investment property, make sure you ask if they are a member of NARPM. If they say yes, you’ll know you’re getting better quality, better service and a higher level of integrity.
A property manager and the management company must be licensed and registered with the city and the state. In addition, inquire about other professional property management affiliations that the company has as well as any trainings they attend.
12. What happens if a tenant doesn’t pay rent?
The delinquency and eviction process should be explained to you. The company must have a clear and aggressive collection process for tenants who are not paying on time. Progressive companies will track their internal tenant delinquency rate monthly, and should be able to show that to you. Inquire about the eviction process and costs. A strong screening process can assist in preventing the need for eviction.
13. What insurance do you carry and what insurance should I carry as an owner?
Inadequate insurance can leave an owner high and dry if a catastrophe happens. Most management companies are required to carry errors & omissions insurance, workers compensation as well as general liability. Owners need a minimum of one million dollars in coverage per hazard, as well as liability insurance and flood insurance if necessary.
14. How often will you inspect my property?
Some type of walk through or inspection should be performed annually. Ideally, there is a move in inspection, a six month inspection and then an inspection at 11 months, prior to the tenant move out or renewal. If your tenant is moving out, an additional inspection should be conducted after the tenant leaves and before the security deposit is returned.
15. How often does the company send out financial statements and reports?
This is a critical factor in your relationship with a property management company. It’s important to receive and review monthly financial statements and maintenance repair updates.
This is the second in a three part series covering the 15 most important questions to ask when you’re hiring a property manager. In the first part of this series, we gave you five initial questions to ask. These are the next topics you should discuss.
6. Where is your office located, and what geographic areas do you operate in?
Office location is important considering how often your property manager should be showing your property. It will also make a difference if there are travel charges for maintenance calls.
7. How will you market my property?
A full service marketing program will use professional signage, online advertising, MLS and other resources. Ask how many websites they utilize; the more the better.
8. What is your tenant screening process?
This is a critical question to ask. The process should be comprehensive. Ask about the application process as well. All tenants over 18 years of age should be screened for verification of income, employment, credit, criminal history, eviction, terrorism list and non-sex offender list. References should always be called.
9. Can I review your lease agreement and rules and regulations? Have these documents been reviewed by an attorney?
A bulletproof lease is your best defense against a tenant who is trying to take advantage of a situation, and not all leases are created equal.
10. How do you handle maintenance requests?
Someone should be available to handle maintenance emergencies 24 hours a day and seven days a week. After an issue has been reported, a qualified technician should be dispatched to determine whether the issue is a matter of wear and tear or tenant neglect. If the problem is due to neglect, the tenant should be responsible for paying after the work is complete. If the problem is due to something that’s not the fault of the tenant, the owner is responsible.
Watch for the final blog in this series, as we share five more critical questions to ask when you’re hiring a property manager. If you have any questions about this blog, please contact us at Pristine Property Management.
In this three part blog series, we’ll cover the 15 critical questions to ask when choosing a property management company. The core business of a property manager is managing properties. This sounds logical, but it’s easily overlooked. By selecting an effective, efficient and reputable management company, you’ll remove your stress and increase your profits. Today, we are starting with the first five questions that you want to ask during the interview.
1. How long have you been managing properties?
2. How many properties do you manage?
Some companies have on-site managers who manage lots of doors, but few properties. These companies don’t typically have the experience to make the decisions that positively impact your property. You want a firm that manages enough properties to know what they’re doing but not so many that you become just a number.
3. Do you have a company website and can I see it?
A management company should utilize technology well, and a website is the minimum requirement. When you look at the site, it should be informative, professional and showcase the properties.
4. How many people are on your team?
You don’t want to work with a one person shop. That can require a trade-off between accounting functions and showing functions. In addition, small offices can sometimes lack the resources that are needed to immediately address a problem, and as a result the small problem can become a big one.
5. Can I get three references from owners you work with?
Any reputable company should have success stories, and a good property management company will be willing to share them.
Today we’re talking to Peter Zalewski from CraneSpotters.com about the rental market. Many investors want to know what we see for the future and how that affects the Miami and Fort Lauderdale markets.
CraneSpotters.com focuses on properties east of I-95 only. West of I-95 is mostly families and people more affected by schools and other things when they’re shopping for rental property. East of I-95, we have a more urban environment. We find younger renters who don’t have kids.
Overall, this rental market is good. Since 2009, we have seen an increase in 60 to 70 percent for rental price per square foot, monthly. This price increase has lit a fire under the developers who have land where they were planning to build condos. Those condos might not have been successful when it came to presales, so they are now turning towards creating rentals. This is driven by the rising rents and the tenant pool, which has increased due to people who perhaps cannot qualify for financing. Rents are still going through the roof, and they have been climbing since 2009. This has led to an increase in rental product. Banks are happy to finance rentals, but they don’t like condos. The market, therefore, is turning to rentals.
When these rental towers come online, we expect rents to either hold or begin to retreat and fall down, which would give today’s landlord advantage to the tenant. Remember that it’s difficult to get data on rentals. Sales are recorded and become public records. Rentals are not required to be reported, so we use the MLS to complete our analysis. You can maybe use Craigslist or Hotpads.com, but there is a lot of bad information out there. Using the MLS, what you will find is that there is a less than six month inventory in every market. Six months of available inventory is the balance. Most markets right now have two to three months of inventory available, so the market isn’t currently balanced. With inventory this low, the landlord or the seller has the advantage. But when the inventory climbs to six months or higher, the buyer or the tenant is able to enjoy the market advantage. Right now the market favors landlords, and the expectation is that within 18 to 24 month, landlords could actually find themselves at a disadvantage. That’s the cycle of real estate.
This past weekend we attended, exhibited and participated in the 2nd annual Miami New Construction Show. The 4 day expo featured over 100 new development projects from some of South Florida's biggest names including Brickell City Centre, Paramount Miami WorldCenter, Porsche Design Tower, Prive Island, Marina Palms, and many many others. In addition to developers, there was a plethora of other exhibitors such as construction companies, brokers, attorneys, tax advisers, lenders, media outlets, title companies and other associated professions. Even the Miami Marlins had a booth!
Pristine Property Management was one of the event's presenting sponsors and our sister agency, Miami Property Brokers, also had a booth at the event.
In addition to the exhibits, there were several educational panels for buyers, investors and agents covering a broad array of topics related to South Florida real estate. Mayor Tomas Regalado spoke about Miami's ascent after the downturn and how the local government is cooperating with developers in pushing forward projects that will transform the city. Developers such as Dan Kodsi of Paramount Miami WorldCenter, Gil Dezer of the Porsche Design Tower, Edgardo Defortuna of Jade Signature, David Martin of Grove at Grand Bay, and several others discussed their projects and their vision for Miami and South Florida.
One of the panels featured local prominent brokers discussing the market and where it's heading. The general consensus was that this go-around isn't expected to bust like the last condo boom did. Developers are taking a much more conservative approach this time, demanding much larger deposits upfront and only moving forward with projects once a good portion of sales have been realized. Developers also weighed in on the topic, Dan Kodsi of Royal Palm Companies called it a "much more sober market" and David Martin of Terra Group stated that the fact that some projects have recently been canceled shows that ill advised developments will not move forward, which is a positive thing for the market in the end.
Our own Eddie Miller participated in one of the panels, titled "How to Buy a Pre-Construction Condo Unit in South Florida" aimed at educating buyers looking to purchase pre-construction condos as investment properties or second homes. Alekxey Sabido and Ivan D. Ramirez from Miami Property Brokers also conducted an educational session for foreign buyers.
The event showcased exciting projects, insight from the experts, and provided a great platform to network and interact with some of the brightest people in the industry.
Today, we are in Miami Gardens celebrating the No Roof Left Behind project with City Roofing and Construction and Mario and Candy Famada. Pristine Property Management is excited to be a sponsor of this program. It’s a national effort that’s getting amazing results.
No Roof Left Behind is a nonprofit organization and they rally the community together to vote for a person in need to get a new roof. So today, Tiosha King is the winner who will receive a new roof by City Roofing and Construction, and we are celebrating her entry and the fact that we can come together to provide something that is needed.
We are excited to be a part of this celebration and we’re also excited about the No Roof Left Behind program. For any questions about what this program does for the community and how we are involved, please contact us at Pristine Property Management.
When my partner and I started to invest in real estate, we purchased rehab and sold properties. Then we also began holding and managing some of our own properties as rentals. As our business grew, we became advisory board members for our local real estate investment association. As a result, we met other investors who were challenged with managing their own properties. We found that managing rentals can be a hassle. Yet, because it was the core aspect of our business, we figured out how to overcome those challenges and create profitable investments. In the process, we actually uncovered seven key points that help with profitability.
Purchase a property that will provide the desired annual rate of return, with a consideration for the cost of the purchase, repairs, taxes, insurance, vacancy and management.
Have a sound lease agreement with clear rules and regulations.
Market for qualified tenants.
Once you find qualified tenants, conduct a thorough background screening. This screening should be based on previous rental history, possible evictions, credit, criminal record, non-sex offender verification, national terrorism list, reference checks and income verification.
Have effective ongoing communication with your tenants.
Have a strict rental payment policy. We have a less than 2 percent eviction ratio in our company. If someone is challenged, we work with them to get them back on track. We post a Three Day Notice, call the tenant to make payment arrangements and proceed with eviction only when necessary.
Conduct regular inspections. We do a move in inspection, six month inspection and an eleven month inspection prior to lease renewal. All of our inspection reports are documented with a tenant signature.
Attempting to manage your own property can be a daunting task, and missing any one of these points can be costly, dramatically lowering your desired rate of return. Many investors hire a property management company. If this is the case for you, interview and hire a company that is effective, efficient and reputable.
This past Friday we attended the RCA Super Conference at the Biltmore Hotel in Coral Gables, an event focused on the growth and globalization of Miami. At Pristine Property Management we always strive to be up to date on what's happening in the real estate market and anticipating what the future holds for our ever-evolving city.