How We Work

Apartment Turnover

Our turnover process starts from the time a resident gives notice. After a resident gives notice our staff arranges to evaluate the apartment condition. At this time our staff inspects the apartment to determine what turnover maintenance will be required upon vacancy. This extra time allows our staff to request purchase orders, schedule necessary repairs and coordinate vendor services. Our expectation is that apartments be rent ready 3 days after vacancy.

Screening Process

Our screening process begins with the initial contact. If contact is made via a telephone call our staff attempts to qualify the prospective resident. This requires that our staff ask qualifying questions, listen to the prospective residents needs and lastly schedule an on-site visit to the community. Upon completion of the community visit a qualified prospective resident will be encouraged to complete an application while at the community.

Once the prospective resident has completed the application, it is submitted to one of three screening companies that we use. All applicants are screened in the following areas; income, employment history, rental history, credit history and criminal history. The screening company makes a recommendation based on screening criteria. If an applicant is not approved by the screening company, our staff may request review by a property supervisor. Only after approval by the property supervisor can the rental recommendation given by the screening company be over-ruled and the application approved.

Each screening company has on-line capabilities and our staff is able to review results at any time via a computer. The process is such that if our staff indicates that they have a solid prospective resident that they would like pre-approved, we have the capability to pre-approve based on credit results. This is a nice benefit in that it speeds up the process and allows the prospective resident to stop looking and start planning their move to our community.

Maintenance Requests

Maintenance requests are completed by the resident and submitted to our on-site staff for repair and our scheduling. At most communities we have an on-site maintenance person who is responsible for day-to-day minor repairs. These items are addressed and resolved in a timely manner.

If a maintenance request requires off-site services, our on-site staff faxes a copy of the maintenance request to our corporate office for review. The property supervisor for that community reviews the request and gives direction on how to proceed. At this point a vendor may be scheduled or our maintenance department may be scheduled. Due to habitability issues our maintenance department handles all appliance repairs.

If a maintenance request requires outside service a purchase order is issued not to exceed a recommended amount. The on-site staff contacts the vendor and schedules service. The on-site staff is responsible for performing service inspections after each repair. They are also responsible for following up with the resident to insure resident satisfaction.

Budgets

For first year projects budgets are developed and created after enough raw data has been collected to make an educated guess regarding monthly income and expenses. It takes generally 3-4 months of data collection before a budget can be created. This time allows the budgeter to see patterns in income and expenses and to prepare a budget based on that data.

For seasoned projects, budgets are developed based on the preceding year's data. Income adjustments are made to reflect changes in the rental market and expense adjustments are based on changes in utilities, taxes, insurance and wage rates.

Owner Draws

Owner distributions can be set up as recurring payables as often or as infrequent as desired by the participating owner(s). The amount is considered when developing the annual budget.

All Inclusive Fees

Management fees cover the cost of property management. The management fee is based on a percentage of generated monthly income and will fluctuate from month to month. In addition to the management fee there are other fees for banking and office services. Banking fees include charges for check printing, maintaining various banking accounts, etc. Office fees include charges for mailing, postage, photocopies, faxing, etc. All fees are calculated and billed on a monthly basis.

Advertising

Creating interest in a community used to be as easy as putting an ad in the newspaper or putting a sign up. Although these methods still work there are other excellent options available. The target market for each community has a lot to do with which method of advertising works best for one particular type of apartment.

Referrals and property signs give good exposure to renters in the local area, whereas newspapers and Internet ads have the ability to reach people who may be relocating from outside the area. We market our communities using a variety of methods. Below is a brief description of the pros and cons of using each particular method.

• Community bulletin boards can be inexpensive but reach a narrow market.
• Direct mailings are inexpensive but have a low response rate.
• Flyers allow for more details about your community but have limited distribution.
• Internet is easy to use but it is difficult to track and measure the effectiveness.
• Local employers generate qualified prospects but this can be a limited market.
• Newspapers are widely used by prospective renters and have the ability to reach a broad range of people, but can be costly.
• Property signs are very effective and inexpensive but again reach a narrow market of prospective renters.
• Rental publications and magazines are widely used by prospective renters but can be costly for small properties.
• Referrals are the most credible source of advertising. They are often the most effective and least expensive method for finding prospective residents.

Our marketing methods are not limited to those listed above and our goal is to continually change the marketing strategies for maximized effectiveness.

On-site Manager

Resident managers are responsible for the day-to-day operation of the business. This includes; leasing, leasing enforcement, bookkeeping rents and petty cash, coordinating repairs, resolving tenant issues, and court appearance as needed. This averages out to about 37 hours per month for a community with 30 units.

The following responsibilities are paid in addition to the management service; cleaning, painting, maintenance, landscape and pool care. The hours to provide these services average out to 1 part time person on a monthly basis.

Ideal Manager
(Single/Couple)

The ideal manager on a property of 30 units or less is a couple who can provide management and maintenance services under one roof. In a community where the population may be of one ethnic group it is an advantage to have an on-site staff member that is fluent in the language. This allows for better communication between the management team and the resident needs.

In smaller communities we have employed satellite managers, which manage the community from off site. Depending on the needs of the community, this can be a very cost effective means of managing a smaller community.
Performance Reports
Property owners receive a multi-page monthly statement, including an income statement, an expense statement, and a comprehensive monthly report. The monthly report shows all income and expenses for the month and also year-to-date. Figures are shown in both dollar amounts and percentages.
Property owner checks are mailed on the 15th of each month. Computer generated statements are mailed by the 20th of each month. An annual end-of-year accounting is provided to each property owner for tax reporting. Property owners should check with their accountant to verify the tax advantages when owning rental property. Copies of all work orders and records of receipts are retained in our property files.

Specials/Concessions

Specials and concessions are used to fill vacant units promptly. they should not be used to keep rents artificially high. If a complex has a high vacancy rate (over 5%), the cause needs to be determined and remedied. Then temporary use of "specials" can be used to fill the vacant units.

Keeping Full

The key to keeping full is knowing what your tenants want and making sure they get it. Offering a quality rental experience at a reasonable price will result in lower turnover. By treating residents with personal attention and courtesy you will retain good residents and have a lower turnover rate. Residents want timely effective communication, professional maintenance of the interior and common areas, respect for their privacy, fair and consistent policies and rules, as well as enforcement of them and reasonable rent in relation to what they are getting.

Communication with Owner

Communication with the owner is primarily via the monthly reports provided to the owner. All the staff is available for consultation with the owners at any time by telephone or an in person consultation may be scheduled at any time.

Limits on Additional Spending

Limits on additional spending are addressed in the Management Agreement and the amounts are mutually agreed to between Canyon Property Management, LLC and the owner at the signing.

Service Retainer

There is no initial service retainer. As provided in our Management Agreement, security deposits are distributed through proceeds and held by the owner. We do require a minimum amount be held in a reserve account for unanticipated emergencies. For a 30 unit community this amount is equal to $1000.

Tenant Care of Premises

There is no way to insure that residents are clean. However, there are ways to keep on top of a resident’s cleanliness. We use available tools and resources when trying determining the cleanliness of a prospective or existing resident. The screening process provides valuable information regarding previous rental history. A resident manager can usually get additional information form a previous landlord if they ask the right questions. Was their security deposit refunded? Were there any damages? Was the apartment left in good condition? In order to make an informed decision regarding a prospective resident the resident manager is expected to gather as much information as possible.

During the move in process it is required that the resident manager lay the ground rules. The resident manager will review documented rules and regulations including allowable patio and common area items with the prospective resident prior to move in. It is important to set standards and expectations regarding care of premises before a resident takes possession. All residents are required to acknowledge and agree to abide by the rules by signing a copy of the rules and regulations. This information is kept in the original tenant file at the corporate office and a copy is kept on site.

Lastly, periodic maintenance inspections provide an opportunity to gain access to each unit 2 times a year. As a rule, inspections are held in July and January. Inspections are used to check for needed maintenance repairs including plumbing, electrical, etc. and to facilitate mandatory smoke detector checks.

If at any time during the tenancy it is found that a tenant is not caring for the premises as described in the rental agreement a "for cause" notice may be issued.

Lease Up Strategy

One of the first steps to developing a marketing or lease up strategy is to identify the target market. A target market consists of the most likely rental prospects who will find that your community meets their needs. The marketability of a community is determined by the benefits of location, size and amenities. Understanding what prospective renters stand to gain from each community is another way to market your community. A prospective resident may consider a community based on what’s in it for them. By stepping into the shoes of a prospective resident we are better equipped to identify what benefits our community has to offer and in turn “sell” our community and service.