Property managers are individuals or companies that owners hire to manage residential, commercial, and industrial properties. They play a crucial role in multifamily real estate investments since they ensure the smooth running of the property and maximize returns.

Property managers serve as local representatives for out-of-town owners who may be unfamiliar with managing property in a new location. They represent property owners on issues related to local and state laws and regulations that may affect the property and other operational difficulties that cannot be handled remotely.

Multifamily property owners may hire managers to handle leasing matters, such as advertising the availability of rental units, showing the property to potential tenants, and negotiating rental agreement terms. In doing so, they may have to screen potential tenants by checking their criminal records, rental history, and eviction history to ascertain their ability to pay rent on time and ensure tenants are trustworthy, which helps to avoid potential tenancy problems.

In addition to tenant sourcing, property managers collect rent for multifamily rentals on behalf of the owner. Sometimes, they may need to work with tenants to create a payment plan or arrangement. Other times, they may be forced to evict tenants who fail to abide by their lease agreements. Through effective rent collection, property managers help ensure that the property generates a steady income stream, which is vital for the property’s smooth running and success.

Property managers also handle tenants’ repair and maintenance requests and other upkeep tasks. Requests can range from plumbing, electrical, and HVAC repairs to repairing broken appliances, repainting, or landscaping. These professionals will schedule, organize, and supervise maintenance and repair works to address various concerns quickly to prevent tenant frustrations.

Sometimes, property managers may recommend adding amenities to the property to help increase its value. In multifamily apartments, where tenants desire to live in complexes where they can work, relax, and play, property managers may suggest adding amenities such as a playground, gym, laundry facility, and a restaurant to make the place a multi-purpose oasis for different activities. Suggesting these upgrades may also make the property safer and more attractive to existing and potential tenants.

Property management professionals also manage relations between tenants and their interaction with the property. They are responsible for resolving tenants’ disputes and creating a sense of community. Some multifamily complexes offer a personalized portal allowing residents to share neighborhood information and communicate with property management on various issues.

To manage multifamily properties effectively, property managers must possess excellent communication skills to deal effectively with renters, landlords, and other stakeholders involved in the leasing process. They must also be well-versed in landlord-tenant rules and regulations and have better organizational skills. Moreover, property managers may need a professional network of vendors, contractors, and other professionals to help them access valuable services and resources and keep them informed about industry trends.

Working with property managers can give property owners and other stakeholders peace of mind knowing that they have a knowledgeable professional who fully understands their investment goals. Good property managers will look out for their owner’s best interests and use every effort to increase the property’s value.

Real estate asset repositioning involves using capital improvements and renovations on properties to change their place or value in the marketplace. Repositioning can range from a complete overhaul that changes a building’s purpose to upgrades and renovations that bring an asset more in line with modern buildings.

Ideally, asset repositioning goes beyond new flooring and painting. It always pays to make a property as appealing and modern as possible when renovating or upgrading. Investing in site design improvements, common areas, and façade upgrades can make a big difference in retaining tenants and attracting new ones.

In today’s property market, maximizing an existing building’s worth has become essential to attracting the best tenants. For example, retrofitting and upgrading 30-, 20-, and even 10-year-old buildings can result in better paying tenants seeking modern facilities and amenities. Another option is adding facilities like a swimming pool or gym.

New building entries, lobbies, and updated elevators attract potential tenants and retain existing ones who might otherwise be considering relocation.
Other options include using environmentally friendly, maintenance-free, longer-lasting materials to enhance a building’s appearance. A building’s life can also be extended by incorporating modernizations and aesthetic upgrades that reposition the asset in the property market.

With the advent of green buildings, tenants often consider expected energy costs when choosing to stay or relocate. As a result, a repositioned property is more likely to leverage energy efficiencies similar to those found in newly constructed green buildings.

For example, buildings with older HVAC systems may waste more energy and be expensive to maintain. Incorporating measures that reduce energy consumption through investments in sustainable strategies can help reduce wastage and enhance building efficiency. Examples worth considering include high-efficiency lighting, low-flow plumbing fixtures, and air quality monitoring.

Finally, in addition to increasing overall value, asset repositioning can energize leasing programs by giving the market a fresh look at improved properties. The associated upgrades or renovations may provide new motivation for tenants and real estate brokers who otherwise might have overlooked a building.

Based in Bethesda, MD, Dragone Realty Investments’ apartment holdings are mostly in Prince George’s County, Maryland. In July 2018, Dragone Realty Investments (DRI) sold the 727-unit Verona at Landover Hills to Dantes Community Partners. In addition to acquiring and selling properties, DRI rehabilitates and renovates multifamily buildings with 200 or more units. DRI also manages the properties it invests in, as well as oversees all construction projects relying on its own professionals.

DRI manages the properties it owns throughout Maryland through another company, Westcorp Property Management. The property management organization emphasizes thoroughly training employees, increasing profitability for investors, and providing excellent service to renters.

The properties that DRI oversees are in Suitland (Verona at District Heights, Verona at Suitland, Verona at Silver Hill, and Verona at Suitland Metro), Oxon Hill (Milano), Hillcrest Heights (Verona at Naylor Metro), and Essex (Verona at Middle River). The apartment buildings offer residents studio, one, two, and three-bedroom units with various amenities through the property management company, such as 24-hour maintenance and night security.

In addition to managing these properties, DRI handles all its own construction management. Leading all its construction projects in-house, DRI renovates and rehabilitates the properties and assets the firm invests in. Its renovation work includes repairing, updating, and upgrading kitchens and bathrooms. The construction arm of DRI typically repairs and upgrades the electrical wiring, plumbing, lighting, and flooring in an acquisition. When installing electrical systems, the company focuses on using fixtures that are energy efficient.

The construction usually includes restoring or renovating a property’s exterior. This may involve improving the building’s masonry, facade, balconies, windows, roof, parking lot, and landscaping.

Its latest project, Verona at Naylor Metro, is an example of the firm’s construction management capabilities. The company renovated the building formerly called Lynnhill Condominiums in Prince George’s County, Maryland. The company faced rehabilitating a building in serious disrepair. The masonry of the facade was deteriorating, and the interior of the building was cited for multiple safety violations, leading to its eventually being declared uninhabitable.

The construction management team at DRI completely redid the facade, including replacing the rails on the patios, which were damaged, causing some balconies to be boarded up altogether. In the interior, DRI repaired the damaged emergency stairways and elevator and installed and upgraded the fire safety system. The building’s electrical system was also revamped.

Finally, the team gave the apartment units an upgrade. The kitchen and bathroom countertops were replaced with granite, and the carpeted floors were upgraded to wood laminates. Upgrades to the landscaping included repaving the parking lot and installing a fence around the perimeter of the property.

One of the firm’s most recent acquisitions took place in April 2019, a 404-unit multifamily apartment complex in Forestville, Maryland. The building, which would be renamed the Verona at District Heights after renovation, was built in 1963. After making the purchase, the company renovated the building’s unit interiors, in addition to revamping the pool house and adding new amenities like a barbecue area and a revamped pool house. The company also retrofitted the entrance to the property with a new secure gate system that requires renters to enter using a key fob.

Adequate property management is one of the most effective ways of running a successful real estate investment. Property management involves overseeing residential, commercial, or industrial real estate, including control, operation, and maintenance. Typically handled by a third-party contractor known as a property manager, it involves maintenance functions such as repairs, managing structures, outdoor areas, and landscaping. Collecting rents, sending financial reports to owners, ensuring security, and handling tenants’ complaints are some of the other duties of property managers.

Property managers can be a company or just an individual. They work for real estate investors and developers, helping to oversee properties like multi-family apartments, condominium complexes, industrial parks, or shopping centers. Generally, developers, especially the most successful and accomplished ones, undertake one project after the other or a group of projects simultaneously. After completion, they move on to the next project requiring them to hand over management duties to another company while retaining title to the property. Depending on the arrangement with the property owner, management may include setting rental rates, which require the management company to be conversant with the neighborhood and find the rates of competitors.

Before operating as a property manager, management firms or individuals must have a property management license. The requirements usually vary from state to state and are granted by state governments, agencies, real estate boards, or other local authorities.

It is the role of the property manager to ensure that the owners or developers of the property keep getting returns and that the property under their care appreciates in value or at least does not depreciate.

As a task that involves filing financial reports, property management requires an in-depth understanding of budgeting, operating costs, profits and losses, and financial statements. However, one of the most important jobs is ensuring tenants occupy the available space, which is key to helping owners maximize their returns and solidifying the relationship. To boost occupancy, managers can undertake marketing programs, promotions, and other forms of publicity to draw awareness to the property.

They must perform due diligence when selecting tenants for a property. This is because a problematic tenant can lead to a loss of rent for many months and ultimately a failed investment in worse situations, for example, when the wrong tenants are high in number. For this reason, management companies must do thorough background checks and screen the tenants before accepting them. The key things involved in screening include rental and employment history, as well as credit and criminal records.

After filling up the available space, managers must see that they maintain good relationships with tenants by making themselves available, providing basic needs like a safe and habitable environment, and performing regular surveys to evaluate satisfaction among the tenants. A good tenant relationship will boost the chances of rent renewal and goodwill on the property. Other duties of the property management company include managing taxes, understanding landlord-tenant laws and regulations, supervising on-site employees, and risk management.

Washington DC, the country’s capital, is home to not only many of the landmarks that document the nation’s history but also to numerous cultural diversions, such as museums and monuments. The District is not only a cultural hub but has also become the leading metropolis in new multi-family housing units. An April 2022 Capital News Service (CNS) article reported that in the next decade, there will be a surge of multi-family unit projects constructed in Washington DC.

Young renters, first-time buyers, a diverse array of land buyers, and the District’s economic base are fueling the demand for multi-family building construction. Washington DC’s housing history hints at why multi-family unit development might be on the rise.

In the last 30 years, most housing developments in the Washington DC area were in exurban (located outside the city) and suburban (outlying areas of the city) residential areas. Furthermore, trends over the last 30 years reveal that District residents lived near employment and transportation centers, which gave rise to housing affordability issues and climate impacts. Multi-family unit housing, however, has presented city planners and developers with the opportunity to provide affordable housing with less impact on the environment because it decreases traffic and commutes, urban sprawl, and energy use, according to many proponents.

Market data reflects this growth in multi-unit residential housing. In January 2020, the construction rate for multi-family housing was above the national average. In addition, since the second quarter of 2021, there has been a spike in multi-family unit demand. While other areas around the country experienced negative pandemic-related impacts, Washington DC neighborhoods such as NoMA, Navy Yard, 14th Street corridor, and the Rosslyn-Ballston corridor have experienced high demand in apartment rentals.

Furthermore, by the end of 2021, there were 40,000 apartment units under construction in the Washington DC metro area, with plans to construct 220,000 units in the future. Finally, from January 2021 to January 2022, 22,000 multi-family units were sold.

According to the above April 2022 CNS article, this rise in multi-family unit construction coincides with an increased demand for this type of housing. A robust pipeline, rent growth, high occupancy rates, and the reduction/elimination of concession packages have contributed to a strong multi-family unit market.

One factor driving this market is the increasing number of first-time buyers choosing multi-family units. Many Washington DC First-time buyers looking to invest in realty are opting out of purchasing single-family homes, which are very expensive in the District, choosing multi-family residences where they live in one unit and rent out the others. Lender incentives (lower down payment and better interest rates than single-family homes) make it easier for first-time buyers to enter this market.

Young renters attracted to turnkey properties or move-in-ready properties are choosing multi-family units. Washington DC is attractive to renters because the District contains all the elements that make people want to live in an area, bars, restaurants, cultural attractions, employment opportunities, and entertainment.

Then, land buyers view the investment potential in multi-family units. Local entrepreneurial groups, regional developers, and name-brand national developers have driven interest in multi-family unit development. Again, these groups are attracted to the multi-family sector in Washington DC because it contains all the gateway components that drive demand (employment, cultural attractions, and restaurants).

Finally, Washington DC has an established economic base that federal jobs and the tech industry support. However, nearby Northern Virginia (a growing tech base) and Maryland (a life sciences hub) will add to this demand. As these industries and others grow, the expectation is that it will result in job growth and more demand for units.

Oxon Hill, Maryland, is an unincorporated part of southern Prince George County in Maryland. Oxon Hill is also a suburb of Washington DC and is located near Alexandria, Virginia. Moreover, it is also where one of the nation’s notable landmarks is located.

Residents living in the Milano at Oxon Hill live close to the 300-acre National Harbor Development and the Oxon Cove Park/Oxon Cove Farm. Named after Thomas Addison’s 18th-century colonial manor, Oxon Hill was an abbreviated form of the word Oxford, as in Oxford, England. Today, the Maryland National Capital Park and Planning Commission owns the manor. The rest of the area comprises garden apartments and condominium communities, much of this development occurring in the 1940s extending into the early 1990s.

The Milano at Oxon Hill is a part of apartment communities near Washington DC. The apartments are close to restaurants and shopping complexes, including the MGM National Harbor and Oxon Hill Park/Oxon Hill Farm. Located on the Potomac River, the National Harbor is considered a premiere destination for diversion. It features a 3,000-seat theater, 308 luxurious hotel rooms, eight restaurants, four casinos, and bars, among other diversions.

Outside the MGM National Harbor, residents can enjoy Oxon Hill’s national historic district, Oxon Hill Park, and Oxon Hill Farm, where residents can enjoy wildlife observation, fishing, and environmental studies on the Potomac River.

The property was first a plantation that evolved into an agricultural complex and farm museum, comprised of the Mount Welby home, the museum itself, a stable, feed and livestock buildings, an activity barn for visitors, and farm equipment from the 19th century. Those who go to the farm will see chickens, cows, and horses.

The Milano at Oxon Hill sits near these area landmarks but also provides residents with a sense of community that is an extension of this historic area. First, the apartment complex is accessible to the interstate, so it allows for going to any of the abovementioned diversions, to work, or to the beaches of Chesapeake Bay.

Prospective residents can choose from several apartment styles and sizes. Like the Verona at District Heights, the Milano at Oxon Hill offers one-bedroom, one-bathroom apartments in the Da Vinci and Milan styles with a square footage of 660 and 640, respectively.

The larger one-bedroom, one-bathroom apartment, the Sorrento, is 931 square feet. Residents can also choose Giovanni, which is a studio apartment that is 440 square feet. The Donatello and Siena apartment styles are two-bedroom, one-bathroom that measure 854 square feet and 931 square feet, respectively. There is also the two-bedroom, one-and-a-half-bathroom, the Venice, which is 1,103 square feet.

Finally, Michelangelo is a three-bedroom, two-bathroom apartment measuring 989 square feet. All apartments are fitted-out with modern cabinetry, carpet, and vinyl flooring.

Outside of the apartment styles and sizes, the complex’s amenities promote community. It has a resort-style swimming pool and a dog park, perfect for dog days when everyone gathers at the park to converse. The complex also has pet-friendly policies found at https://thenewmilano.com/amenities.

The apartment complex also offers residents access to a fitness center open 24 hours a day, seven days a week, and a media center. Other perks of living in this community are that the complex does provide maintenance 24 hours, seven days a week, and on-site recycling.

Moving to the Milano at Oxon Hill is an opportunity to enjoy this rural environment without missing out on the diversions of city life. In a nutshell, it offers residents the best of both worlds.

Successful property managers should always be prepared for the rapidly changing real estate scene. Fluctuating economies, shifting housing models, and various financial factors play a role in the real estate industry, therefore, impacting property management as well. New trends in the field, such as modified governmental regulations, increased rental demand, and rising management technology, pose new opportunities and challenges to property managers.

As countries around the world continue to suffer from a volatile post-pandemic economy, tenants struggle to make ends meet. This global crisis engendered a serious governmental intervention to support the housing market and assist tenants. For example, the majority of American states issued a ban to restrict landlords from evicting tenants.

Additionally, governmental regulations of rental properties have increased after the pandemic, discouraging investors from entering the real estate market. Meanwhile, rental owners worry that the spike in regulation will make it more difficult to successfully run properties and make sufficient earnings. Property managers can provide their professional expertise to help concerned landlords.

More landlords are resorting to property managers in the current economic climate characterized by regulatory anxiety. Property managers find themselves as trusted allies and valuable advisors, guiding rental owners and helping them with their investment decisions and management issues with tenants. Further, almost half of small portfolio rental owners are interested in acquiring new properties, which means the services of property managers will only continue to rise in value.

More and more tenants are facing the obstacle of finding or maintaining affordable housing. Inflation, unemployment, and increasing rent prices put extra pressure on tenants, especially with a limited wage increase. As affordable housing becomes a scarce resource, the demand for rentals multiplies.

Property managers confront a radically different real estate market today. While the demand rises, managers screen countless tenant applications to secure qualified and reliable potential tenants. After the pandemic, the applicant pool has become a diverse mix of various demographics, degrees of financial stability, and credit scores. Managers must go through many applications to find the right tenant for their property.

Another important trend overtaking the real estate and property management scene is the integration of technological tools. More tech startups and tech property management companies are on the rise to enhance the efficiency of the field through software development, cloud computing, and smart home technology.

Property managers can now access tenant data and appointment schedules through cloud-based services. Relying on this easy, online tool facilitates decision-making. Additionally, virtual interactions are becoming the norm following the pandemic. Managers are more likely to conduct virtual property tours and tenant interviews which cuts costs and saves time, resulting in a more efficient work routine. Tenants can also utilize digital leasing technologies, tenant applications, and online rent payment systems to speed up the process of securing a new rental.

Smart home technologies are invading homes, offering benefits to both property managers and tenants. Such technologies provide practical solutions to high-cost services such as security, storage, and maintenance. With smart systems in place, property managers can easily monitor utilities and ensure safe facilities for all residents, making rentals more appealing to potential tenants and simplifying the work of property managers.

Although desirable amenities represent a basic requirement for multifamily properties to attract renters, the draw of such offerings may not be as strong if property managers do not maintain a sense of community. Data on tenant preferences and satisfaction supports this sentiment. SatisFacts’ annual resident survey has identified community as the leading driver of value since 2013, and a 2017 National Apartment Association report found that bringing tenants together formed the basis of 50 percent of the 10 topmost amenities updated or added. To create a sense of community, multifamily property managers apply various strategies.

The simplest of these involves capitalizing on the close proximity of tenants via on-site gathering places, which provide residents with an appealing space to meet and socialize with neighbors. These areas can range from recreational centers to bench-filled outdoor courtyards. Regardless of the type, an inviting aesthetic and hospitable design are the most important features. An effective gathering place welcomes tenants to visit and encourages them to spend time there.

Gathering spaces help foster a sense of community, but successfully establishing such an environment may require a more hands-on approach. One best practice of property managers invested in the community aspect of multifamily living is making communications with their tenants easier. E-mail and messaging applications provide residents with multiple avenues for contacting managers at their own convenience, for example. Additionally, multifamily complexes commonly produce scheduled community newsletters to engage residents and communicate important updates or local events.

Improved communications also assist multifamily property managers with another best practice in building community: forming connections with tenants. When property managers habitually express interest in their residents and initiate conversations beyond transactional dialogue, it helps tenants feel at home and eases anxieties during uncertain times. In order to commit more of their time to such endeavors, property managers often take advantage of technologies that simplify or automate certain administrative tasks.

Other technologies offer virtual methods for property managers to connect with tenants and promote a sense of community. For instance, social media platforms like Facebook, Twitter, and online forums provide a convenient means of communication and allow residents to interact with one another despite busy or conflicting schedules. Furthermore, the growth of smart technologies prompted the application of such innovations at multifamily properties to facilitate two-way conversations with residents and create channels for individualized check-ins.

For many property managers, strategies for establishing a sense of community also comprise hosting events to encourage camaraderie and socialization among tenants. These functions bring the community together and support friendships between neighbors via potlucks, on-site food truck meetups, summer barbeques, movie-viewing parties, cooking classes, and other social activities. Holiday gatherings and appreciation days frequently appear on multifamily communities’ events calendar, and COVID-19 gave rise to celebrations honoring essential workers. However, savvy property managers leverage insights on their residents’ interests via relations and communication efforts to plan functions that appeal to their tenant base.

Moreover, the COVID-19 pandemic underscored the importance of a lesser-discussed concept regarding community at multifamily properties: engagement during times of crisis. Uncertainties surrounding the novel virus and the isolating effects of public-safety measures disrupted lives and elicited anxiety about various matters, impacts that persist as the pandemic continues. Community-oriented multifamily property managers responded by boosting safety-related communications and implementing initiatives to unite their communities. Such activities include replacing in-person events and classes with virtual ones and creating online groups as alternatives for amenities and gathering places.