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How Property Management Companies Benefit Society

Imani Williams

Entrepreneurship & Business Academy, Kempsville High School

EBA Senior Internship: TE 4550-131

Mrs. Sarah Routsis

January 15, 2021

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How Property Management Companies Benefit Society

Introduction

Do you personally think it is challenging and time consuming for landlords to manage

their properties? Landlords can save money, energy, and time if they decide to hire a property

management company. It simply shapes the company’s reputations; hence moving it to greater

heights and benefits the society as a whole. However, people should be given a fair chance to

find a place called ¨home¨ and make sure that their needs are being met. It has been a struggle

finding an internship, especially during the pandemic.

While on the search for my internship placement in order to fulfill my academy senior

capstone, I reached out to potential remote and local businesses, while some turned me down due

to covid, others did not reach back out to me at all. Due to utilizing connections through family, I

have gained an internship at the Emerald Point Leasing Office. Before I obtained this internship,

I had very little knowledge on this industry. I wanted to learn more about the process of

purchasing and selling homes, and the qualifications to help prepare me for the real world

whenever I reach that point, so I know what to expect. By all means, I am entitled to various

tasks and responsibilities which I will execute successfully and with passion.

Property Management is a field that is evolving as the day to day needs of residential

properties increase. I would love to be a part of this particular field. In addition, one of the main

components is a great attitude because there will be times things don’t go as planned. I know that
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I would have to treat every problem as a new opportunity to make things right and be able to

interact with people. Even though I am constantly learning new things each and every day I still

want to know more about this industry throughout my internship experience.

What I Wanted To Know

Throughout my conducted research and internship experience, I wanted to address the

following questions: What is the screening process like for qualifying tenants? What are the

different unlawful acts of discrimination? These questions focus on the environment the tenants

have to undergo and the expectations needed in order to be able to stay at the property.

The top concerns among this industry would be loss of rent payment and eviction history.

During the tenant screening process, there are things to look for that can help to put your mind at

ease based on my first question such as valid photo id, income verification and its sufficiency

level, employment, credit checks, no history of evictions, no criminal history, security deposit

amount, etc. Furthermore, those who are denied would have to continue on their search for a

place to live. In a situation like this I would have to make sure that the best practices are being

followed and any applicable laws such as the Fair Housing Act and local housing laws.

Discrimination is a public issue and leads to my second question. It is illegal to refuse to

rent to an individual based on their race, religion, national origin, ancestry, marital status, gender,

or physical/mental handicap. Everyone should be treated equally; you can't discriminate among

the tenants as that would violate fair housing laws. How can a renter file a discrimination

complaint? A tenant would have to contact a local office of the U.S Department of Housing and
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Urban Development or even file lawsuits directly in federal or state court.

It is significant to know this information in order to learn how to maintain an asset,

increase property value, and to observe the tracking and measuring outcomes that are key to

marketing efforts. I also want to practice marketing, leasing, applicant screening, rent-ready

services, maintenance, owner reporting, trust accounting, and managing tenant needs. I wouldn’t

be where I am now if I didn’t utilize my connections through family, so I am going to break

down the hunt of my internship.

The Hunt

The quality of life is one of the best factors. Over the last 10 years, the population of

Virginia Beach has grown by 3.3% and by 0.27% of last year. Virginia Beach has been a buyers

market since September 2020, which means that the supply of homes is greater than the demand

for homes. This city has an affordability index of 9 out of 10, meaning that Virginia Beach is one

of the least affordable markets to buy a home. All in all, housing affordability is an important

metric to keep in mind about property management to analyze present and potential future

demand for rental property. Whether you’re an owner interested in services for a new home or

rental property, or a tenant looking for a home to lease. The cost of living is 4% below national

average (Rohde, 2020). Property Management provides relaxation, free time, and freedom so

we should take advantage of this opportunity.

Assistance Programs

The first step in finding out what assistance programs are available, in which the

company offers and accepts would be to provide easy access for better opportunities. More
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opportunities can enhance the dignity and quality of life of individuals or even families by

strengthening communities and helping those in need. Even during periods of economic

prosperity, the residential market segment tends to weaken as homeownership leads to a more

attainable goal. The idea of having assistance programs not only enables families to meet

housing needs, but it leaves them with more resources to meet other basic needs due to lowering

their rental costs.

During my research, I learned that there are many emergency assistance and grants for

bills, health care clinics, medical care, legal aid, mortgage help, foreclosure assistance, and debt

reduction (McNamara, 2020). This can diminish crowding, housing instability, homelessness,

and even poverty which appear to be major barriers that affect human development.

Unemployment also plays a role because the most important disadvantage is being discouraged

from searching for a job or taking certain jobs.

Assistance programs can help maintain diversity and stability in neighborhoods, which

increases property value. Property value is significant for insurance purposes, property tax,

financial planning when selling, downsizing, or trading up. “There are several different non-

profit agencies, churches, government assistance programs and charities to turn to for financial

aid¨ (McNamara, 2020). Therefore, there are various organizations and communities that are

taking action and measures in order to establish emergency rent assistance programs, especially

with pandemic related events.

Qualifying Tenants
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The second step in finding out how to qualify tenants for is rentals by giving them a sense

of belonging. ¨Tenant qualifying standards must be legal standards that directly relate to a

tenant's ability to pay their rent and follow the terms of their lease agreement¨ (Eberlin, 2020). If

an applicant has no significant warning signs, such as apartment rented collections, judgments on

their credit report, or a high credit score, then it shows that they have a history of making

payments on time and are likely to continue to do so in the future. If they have a clean

background check then that would be a good indicator that you can trust them with your property

and the neighborhood; as well as a clean eviction history.

To help increase the chances of being paid on time, you’ll need to look for stable

employment history and sufficient income. It is okay to decline an applicant if they don’t meet

your standards as long as you comply with the relevant laws. ¨Tenant qualifying standards must

be the same for every single tenant who applies to fill a vacancy at your property¨ (Eberlin,

2020). Besides, everyone should be treated equally and feel safe.

As an intern, I took on a few responsibilities such as completing renewals for residents,

organizing file folders, placing delinquency notices in envelopes, having them sign off their last

payments, and getting more comfortable using the AMSI system and Corelogic. I was able to

add or remove applicants if needed, so it can be easier to find more information about each

resident; such as lease agreements, contact information, insurance documents, renters policy,

inspection records, business licenses/related permits, employee records, tax returns/supporting

documents, vendor information, etc. For instance, we need to make sure that we have this

information before even allowing them to stay at the property. When trying to find the tenant,
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you can save yourself a lot of time by knowing what questions to ask potential tenants. One of

the best ways to tell if an individual would make a good tenant is if they are easy to

communicate with and respectful.

Dealing with Failure

Failures are more common than successes and can invoke intense feelings such as

frustration, discouragement, and helplessness. Moreover, businesses tend to expand too quickly,

some units they maintain appear too disaggregated, be more comfortable with the use of

technology, accounting ends up too loose, and maintenance can be overpaid. Working on

alternatives when you're in a safe and secure mindset can help you make the right decision when

the time comes.

Failure to communicate clear and concise value propositions may occur within the

industry. An effective value proposition tells ideal customers the benefit of your offer, how you

solve customer’s needs, and what distinguishes you from the competition. To be successful, there

should be systems in place for collecting rent, responding to service requests, and tracking

ongoing repairs and maintenance. ¨If your rates are too low, you won’t be able to afford hiring

the additional staff you need to manage the increased workload¨ ( Buildium, 2020). Notably, in

order to increase the workload branding the business and coming up with a solid plan is

extremely significant; as well as prioritizing hiring the right people to accommodate growth and

often leading to poor online reputation.

Property management companies have a fiduciary relationship with the landlords. There
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have been situations where property managers don’t act in their client’s best interests to suit their

own self-interested convenience. ¨They fail to track relevant market data that would not only

help to grow their business, but benefit the investors they work with as well¨ (Buildium, 2020).

Overall, there are many advantages to tracking market data, which includes knowing exactly

what your prospects are looking for and seeing where you are losing customers. This strategy

simply identifies what is important to their audiences and collects data on certain areas to make

improvements directly related to customer feedback. Since there are many pitfalls that cause

business to fail, always remain proactive and take steps to minimize the risk of failure alongside

boosting success.

Coronavirus Transmission

There are many issues affecting our industry with regard to the COVID-19 pandemic. As

far as I know, residents cannot be evicted until the month of April, we are granted the right to

deny entry to unmasked customers, and an unlawful charge exceedingly high prices for

necessary goods and services during a declaration of emergency. ¨Virginia Beach Housing &

Neighborhood Preservation is suspending the pre-application process for the Eviction Prevention

Assistance program effective noon on Tuesday, May 5¨ (National Apartment Association, 2020).

There has also been a recent increase in delinquency, challenges such as debt collection, eviction

moratoriums and payment plans.

In order to enhance customer experience with ways to market to prospective residents

and keeping residents highly engaged with multiple events that are prioritized to meet their needs

and expectations. As a company, we should provide clear and consistent communication and
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ensure that residents continue to feel the value of the community. Although, many prospects

have experienced financial hardships due to a shift in role and responsibilities.

To decrease the likelihood of spreading illness, we increase the frequency of cleaning and

sanitizing all areas and surfaces. Property management companies uncover how they are

handling relevant issues including leasing goals, virtual tours, corporate and vendor meetings,

amenity sanitization, common areas closures, etc. We oversee each department with care and act

quickly in efforts to keep employees and tenants safe.

Economic Crisis

As a society, we are facing the worst economic crisis in living memory. Smaller and

emerging businesses will have to become more resourceful. We are losing jobs and employment,

while the government is spending more on expenditures. Public perception is a significant factor

especially towards how the pandemic is being handled. It is stated,¨The first step is to ensure that

the property generates steady monthly rental income in the most efficient manner¨ (Cotter,

2020). By this higher levels of delinquency should be accepted, market volatility increases,

vacancies were minimized, increased demand for local equity, and to secure a steady cash stream

and offer clients the same quality of services.

The reduction in property sales, during the second and third quarter of 2020, is evidence

buyers and sellers were unsure of what to bet on. Handling leasing, collecting rent, overseeing

maintenance and repairs and managing tenant relations are typical day-to-day operations. When

sales do begin, values will fall based on reduced cash flow, disregarding the advantages of the
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low interest rate environment, and on increasing distressed deals hitting the market.¨A prospect

can easily pay their application fee online, get approved, set up an account and start the move-in

process¨ (Cotter, 2020). This basically shows that tenants can go through contact less manner

during the application process, mitigating exposure to any viruses.

Most residents have experienced a loss of wages, incurred new medical expenses or been

laid off from their place of employment as a result of the COVID-19 pandemic. There are

payment plan agreements that outline an installment plan to repay a specific balance over a

certain amount of time. If there is a pending court date, a judgement will be entered but will

provide temporary flexibility for paying rent and other sums that are due. Based on the interview,

there are three options that should be acknowledged among all residents. The first option is to

pay half the payment by December 11, 2020 and then the remaining balance by Christmas of this

year. The second option is to pay one third of the payment by December 11, 2020. The other one

third by December 18, 2020, and then the remaining balance by Christmas of this year. The last

option is to have the four weekly payments along with the final payments by December 28, 2020

(Mercado, 2020). Increased unemployment, loss of income and increased vulnerability appear to

be a few social impacts of the crisis. In fact, these kinds of pay arrangements provide substantial

incentives for excessive risk-taking.

Competition

Standing out is critical to company success where you deliver extraordinary service you

can’t find anywhere else. ¨Set yourself apart from the crowd by demonstrating your primary goal

is meeting the needs of your most valued customers¨ (Milar, 2020). Meeting customer needs is
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crucial for any business looking to retain and attract new customers. Monitoring and responding

to both negative and positive reviews are essential for customer retention. There are four main

customer needs that an entrepreneur or small business must consider: price, quality, choice and

convenience.

If you’re not accurately and regularly measuring each campaign’s performance, you

could be wasting time, money and other valuable resources.¨Doing everything you can to build

and maintain a stellar reputation is critical in a competitive environment¨ (Milar, 2020).

Responding to emails and phone calls in a timely manner will help build trust with property

management clients and boost your business revenues. You should always be dependable and

reachable. If the price of your property is set too high, potential tenants are likely to overlook it

and go to the competition. Setting realistic prices can lower vacancy rates and increase

occupancy rates. Lastly, even though it can be hard to hear from tenants and failing them in some

way, taking the feedback and learning from it can really set you apart. Having a solid market

plan, making a great team, and reinvesting in your business are all beneficial ways to have a

constant goal to improve competitive position while managing everyday operations.

A weekly market survey has been conducted which includes the top 3 to 5 true

competition in order to determine any price changes within this property. Emerald Point has an

occupancy level of 96.60% where the one bedroom is from $899-$1069, the two bedroom is

from $999-$1269, and the three bedroom is $1,409. This makes Birdneck Village our top

competitor due to their occupancy of 98%. Their prices are different, the one bedroom is from

$1203-$1289, the two bedroom is from $1488-$1682, and the third bedroom is from $1574-
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$1670. In addition, Emerald Point delivers a reduced administration fee of $199 from the original

fee of $300 (Mercado, 2020). Rent is based on the market and how other competitive

communities are doing around you. It also determines any move in specials given, renewal

increases and rental rates.

Real Estate Differences

The fundamental difference between Real Estate and Property Management is the main

focus, yet some people tend to mix up the two.¨Real Estate handles all the listings and selling of

properties while property management deals with all the management aspects of the property

which includes maintenance, repairs, or even tenant issues¨ (Rhode, 2020). You won’t need a

property manager unless you have rental properties, but most people will enlist the use of a real

estate agent when selling or purchasing a home. Negotiation skills are a huge asset for both

functions. Here is a list of the few responsibilities,

Real Estate Scope of Work:

● Creating advertisements

● Dispersing promotional materials

● Meeting clients

● Explaining the key features and values of a property

● Finalizing the terms of a sale

Property Management Scope of Work:

● Meeting potential renters

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● Preparing rental contracts

● Ensuring rent is paid

● Hiring repairmen and scheduling repairs to properties

● Resolving issues with renters

However, property management will always lead down to taking care of the needs of the

renters, maintaining the building, or even having damages repaired. The main goal of real estate

is to strategize to strengthen their portfolio, increase revenue, and focus more on the sales aspect

of their role.

Housing Laws & Discrimination

There are many statutes, executive orders, and regulations that need to be followed in

order to protect the people. ¨The Fair Housing Act protects people from discrimination when

they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging

in other housing-related activities. Additional protections apply to federally-assisted housing¨

(U.S. Department of Housing and Urban Development, 2020 ). The ideas, connections, and sense

of pride that are found in diverse and open neighborhoods. Equal access to housing aligns with

the quality of life. Unjust government practices have led to the presence of housing segregation

today.

As stated before, tenant screening is significant because it involves a lot of time and

dedication. You have to be consistent and should provide the same qualifying standards for every

tenant. ¨It is illegal to discriminate because of race or color, national origin, religion, sex, familial
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status, and disability in the sale, rental, or financing of dwellings, and in other housing-related

transactions¨ (U.S. Department of Housing and Urban Development, 2020). Jurisdictions

enforcing desegregation is one way to work towards a more integrated society where everyone

has equal access to opportunity. We must work to end discrimination in housing because

everyone should have a safe, decent, and affordable home. Working towards integration and

creating a society in which one lives does not determine one's outcome.

Conclusion

What is the screening process like for qualifying tenants? During the screening process,

tenants are only qualified by a valid photo id, income verification and its sufficiency level,

employment, credit checks, no history of evictions, no criminal history, security deposit amount,

etc. Applicable laws such as the Fair Housing Act and local housing laws would take place. A

clean background check is a good indicator where you can trust tenants with your property and

the neighborhood; as well as a clean eviction history.

What are the different unlawful acts of discrimination? It is illegal to refuse to rent to an

individual based on their race, religion, national origin, ancestry, marital status, gender, or

physical/mental handicap. Everyone should be equal. In order for a tenant to file a discrimination

complaint, one must contact a local office of the U.S Department of Housing and Urban

Development or even file lawsuits directly in federal or state court.

Throughout the research I conducted and the experience that I had with the Emerald Point

leasing office, I learned how to qualify tenants and its standards, the buyers market and
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supply/demand among homes, housing affordability and the cost of living, and even market

segmentation. Also, finding out what assistance programs the company offers and accepts would

be to provide easy access for better opportunities. During my time here at this internship, I

realized the different ways to enhance customer experience, preventing economic crisis,

improving competitive position, learning the difference between Real Estate and Property

Management, putting an end to discrimination in housing, and the major responsibilities on a

daily basis.

Property management simply shapes the company’s reputations with greater heights and

benefits the society as a whole. I plan on implementing these goals and skills I’ve gained by

excelling in the customer service aspect, communicating effectively, building relationships, and

making sure their needs are being met to the best of my ability. Since I will be an informed

prospect in the future, I will become aware of the whole process of owning a home. Even as a

business student I am capable of being able to effectively manage finances, promote products or

services, managing my time wisely, planning ahead, communicating, and to problem solve.

These skills are essential to business which will help grow business and give you the support

you’ll need. I will be sure to apply everything I know along my college and career for the years.
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References

Association, N. A. (2020, December 10). COVID-19 Information for Virginia.

Retrieved December 16, 2020, from https://www.naahq.org/covid-19-information-

virginia

Cotter, B. (2020, July 03). [PULSE] How to manage rental properties during a global crisis.

Retrieved December 16, 2020, from

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https://www.housingwire.com/articles/pulse-how-to-manage-rental-properties-during-a

-glo bal-crisis/

Eberlin, E. (2019, June 25). 9 Legal Standards Prospective Tenants Must Meet.

Retrieved December 16, 2020, from

https://www.thebalancesmb.com/tenant-qualifying-standards-2124944

Housing Discrimination Under the Fair Housing Act: HUD.gov / U.S. Department of

Housing and Urban Development (HUD). (n.d.). Retrieved December 08, 2020, from

https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overvie

Maher, A. (2019, March 11). Why Property Management Companies Fail.

Retrieved December 16, 2020, from

https://www.buildium.com/blog/why-property-management-companies-fail/

McNamara, J. (n.d.). Virginia Beach assistance programs.

Retrieved December 16, 2020, from

https://www.needhelppayingbills.com/html/virginia_beach_assistance_prog.html

Millar, E. (2019, March 15). 3 Ways Property Managers Can Stand Out From the Competition.

Retrieved December 16, 2020, from

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https://www.appfolio.com/blog/3-ways-property-managers-can-stand-out-from-the-

competition/

Rohde, J. (2020, January 15). Real Estate Asset Management vs Property Management: What to

Know. Retrieved December 08, 2020, from

https://learn.roofstock.com/blog/real-estate-asset-management