Renting in America

A Mediaplanet Guide to the Rental Industry During COVID-19

Renting in America

Peter Lorimer The “Stay Here” co-host reveals how to tackle the short-term rental market

How LiftMaster’s Smart Community Access solutions are giving community managers peace of mind SmartRent talks about the rapid evolution of self-guided housing tours in the midst of a pandemic MARCH 2021 | FUTUREOFBUSINESSANDTECH.COM

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How Technology Is Improving Apartment Living for Millions The COVID-19 pandemic is accelerating the adoption of technology in the rental housing industry.

Bob Pinnegar President & CEO, National Apartment Association (NAA)

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lthough a technological revolution in the rental housing sector was well underway prior to the pandemic, COVID19 has acted as an accelerant, especially concerning onsite operations.

Advancements such as artificial intelligence, online

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resident portals, smart-home devices, and more have been the focus of rental housing investment for years. Prior to the pandemic, these solutions were viewed through a lens of added convenience and improved resident experience. COVID-19 has added considerations including the health and safety of residents.

Bringing residents together The rental housing industry is certainly capable of swiftly adopting technological solutions to enhance the resident experience and improve operational efficiency.

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Regarding resident engagement, communication technologies have greatly assisted operators in connecting with residents. Many communities are using social media platforms and digital communications to share important information, schedule amenity use, and outline enhanced cleaning procedures.

The tools are also being used to bring the community together, engage neighbors, and counter feelings of isolation and loneliness. Operators across the country are hosting virtual trivia nights, cooking lessons, fitness classes, book clubs, and more. The multi-

tude of Americans spending more time working and learning from home also means operators are paying careful attention to ensuring adequate internet bandwidth for their residents.

Keeping safety at the forefront Resident safety and convenience, as well as enhanced efficiency, means creating a digital alternative for everything. This includes applications, work order requests, payments, renewals, and any other potentially paper-based processes that may be in place at the community.

Amid stay-at-home orders across the country, many apartment communities were quick to add virtual tours and virtual leasing to their capabilities, giving prospective residents the opportunity to tour safely and from afar.

Operators have gotten creative with the ways in which they recreate an in-person experience through digital means. Some are using digital communication tools like FaceTime and Zoom, while others are recording video tours and adding them to their websites for on-demand engagement.

Much of the technological innovation borne out of the pandemic for conducting business and enhancing the resident experience will persist long after COVID-19.

Owners and operators who are delaying adoption because they are waiting for futureproof technology to arrive are at risk of falling behind their competition and missing opportunities to improve efficiency and effectiveness, both of which are critical in keeping their consumers — the residents — satisfied. n

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Publisher Katie McNerney Business Developer Mac Harris Managing Director Luciana Olson Lead Designer Tiffany Pryor Designer Tiffany Jackson Lead Editor Mina Fanous Copy Editor Taylor Rice Partnership and Distribution Manager Jordan Hernandez Director of Sales Stephanie King Director of Product Faye Godfrey Cover Photo Courtesy of Peter Lorimer All photos are credited to Getty Images unless otherwise specified. This section was created by Mediaplanet and did not involve USA Today.

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Property Meld is a maintenance solution for property management companies that coordinates all the key players with efficiency & oversight resulting in a positive experience.

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What Building Managers and Residents Should Know About Smart Access Residents and community managers expect a building access solution that’s secure and convenient.

One company’s smart building and community access offerings deliver.

iftMaster’s unrivaled combination of reliable hardware and cutting-edge myQ technology have set the industry standard for Smart Community Access solutions. They’re easy to use and secure and come with a host of in-demand features.

“We design solutions with property managers and residents in mind, to make sure things are secure and easy for them,” said Jenny Lytle, general manager of LiftMaster Access Controls. “We’ve been bringing quality products and innovation to this space for years.”

Having a full lineup of compatible gate operators, access control systems, and software solutions allows LiftMaster to support the needs of any size property.

The benefits A LiftMaster Smart Community Access solution has several key features that set it apart from other access controls on the market. As Lytle says, the top features requested by both residents and community managers are video calling and two-way communication at building entry points, which are key features of the Community by myQ app.

“People have package delivery issues, they get locked out, and they have trouble letting

people in and out,” Lytle said.

“The No. 1 thing people want is video calling because of that security and the ease factor.”

While tenants love not having to leave their couch to let their friends or food delivery driver in, building managers enjoy not having to be on-site to confirm the identity of, and grant access to, new tenants, delivery personnel, and service providers.

“Upgrading our system to the LiftMaster Smart Video Intercom has given us the ability to make guest management a standout amenity for our residents by offering the Community by myQ app to help them manage prop-

erty access from their smartphone,” said Yolanda Pawula, property manager at Versailles on the Lake, a luxury apartment community near Chicago. “Not only can they grant or deny guest access from anywhere, but they also get a sense of added security when they can actually see who is at the entrance.”

Recorded video is also stored in the cloud for 30 days, which adds an extra layer of accountability and security.

“If there’s an incident on site, let’s say over the weekend someone tries to get in through the front door, the system captures that video and stores it in the property man-

ager’s secure myQ account,” Lytle said. “And that’s a major advantage over a lot of what else is on the market.”

It’s easy to schedule a demo for any of these smart access solutions, too.

Peace of mind As access controls evolve, multi-dwelling community residents are beginning to expect more robust and smarter solutions. With LiftMaster, tech-savvy residents will enjoy the features and controls offered by the Community by myQ app — with more to be added over time via updates — and non-techies will appreciate how

the Community by myQ app makes building access simpler and more convenient than ever before.

Because choosing a building access solution is such a major decision, it’s important to go with a provider you can trust. As a company that’s been a pioneer in community access solutions for years, LiftMaster gives both residents and community managers peace of mind.

“As you think about a product that will be part of your building for 7-10 years, you want a platform supporting it that’s powerful, scalable, and will also bring you new features through software updates as times change,” Lytle said. “We want to take the most complicated building challenges and make them simpler. That means more services through our software, an app that makes people’s lives easier, and more collaboration with partners to make things simpler for everyone.” n Dustin Brennan

See how LiftMaster smart access solutions can improve your community by visiting www.liftmaster. com/for-businesses/ access-control-systems.

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When the world came to a halt in March 2020, the need for housing did not.

Home builders needed new ways to conduct property tours when in-person practices were no longer an option. While self-guided tours were gaining steam before the pandemic, they soon became critical to business operations.

SmartRent, a smart home automation solutions provider, recognized the urgent need for self-guided tour technologies that offered safe and secure touring options to prospects.

Finding proactive solutions SmartRent immediately began finding ways to help clients. The company optimized its self-guided tour to create a comprehensive self-install, self-guided tour kit for properties.

Self-guided tours enable prospects to complete a home tour when it’s convenient for them. They can schedule an in-person tour online through SmartRent’s “Tour Now” option, which leverages QR code technology, unique access codes, smart perimeter gates, and unit door locks for controlled access.

Working toward a better, safer solution Continued engagement with clients helped SmartRent gain a better understanding of how to further improve the tour process throughout 2020. SmartRent launched several significant enhancements to its selfguided tour to meet clients’ evolving needs.

Over the course of the year, SmartRent’s self-guided tour clients quadrupled, enabling more than 200,000 tours. One SmartRent home builder averaged 24 tours per month and realized a 103.4 percent return on investment.

The pandemic and resulting lockdowns were extremely challenging, but it didn’t stop some from achieving the dream of owning a home. SmartRent’s ability to recognize a need and innovate ways to help resulted in an effective way for prospective buyers and renters to complete a safe in-person home tour.

Lucas Haldeman, CEO, SmartRent

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“Stay Here” Co-Host Peter Lorimer on the Secrets to a Successful Short-Term Rental

PHOTO: COURTESY OF PETER LORIMER

Self-Guided Tours, QR Codes, and Access Control: The Trifecta of Pandemic Leasing

Peter Lorimer, star of Netflix’s “Stay Here”, is an expert on short-term rentals. Here, the TV personality talks about what it really takes to run your own short-term rental property.

How can property owners get a competitive advantage in today’s short-term rental market?

It’s incredibly important for property owners to know what the story of their place is. For example, if it’s a beach property, you need to play up that narrative. Have buckets and spades and maybe a seahorse in your living room.

Have a nautical theme throughout the property. All too often, I see really great potential properties, but they don’t put the work into selling that story for the customer.

How do you view renter’s insurance? Do you think it’s beneficial to tenants and/or landlords? If so, how does it help?

Speaking as a property owner, I think having insurance as a landlord is absolutely paramount. If someone slips and falls, there’s potential for a nasty lawsuit. I definitely recommend renter’s insurance as well. I recommend having an umbrella policy, which means if you max out that policy, there’s another policy behind it to catch any excess.

How does technology help to automate and make this job easier?

The real estate industry has gone through huge technological shifts recently. I almost feel technology is taking a front seat, but as long as it doesn’t make us lazy, it’s a good thing. If I’m an Airbnb owner, I can have an automated doorknob on my property or a little

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plaque out with helpful information. I can say, “Welcome. You’ll find some champagne in the fridge and some snacks in the kitchen. I’m just going to unlock the door for you now.”

Do property management systems free up landlords to be more personal?

I’m all about how I can utilize an hour. So if I have limited hours today, how can I use them to get the absolute best results possible? If I’m nose-deep in paperwork and stressed out looking at the bills, then I’m probably not going to be the most vibrant host.

I fall very much on the side of if you can afford it — frankly, I don’t think you can afford not to — get property management software. There are lots of good examples, and several of them will manage all the dayto-day running of the property. They take a slice out of ROI, but at the end of the day, what they give you back is freedom and time.

What advice do you have for people who want to break into this industry?

The most important thing is data. Data drives everything. Know your niche. Know your audience. Who are you going for? If you’re thinking of jumping into this industry, don’t just think, “I’ll get a property that’s kind of cool and I’ll paint it, put some furniture in it, and hope for the best.” Know your weaknesses, know your strengths, and lean into that. n

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How Managing Property Changed With COVID-19 How property managers operate during the pandemic has been an ever-evolving challenge.

1. Showing rentals Showing rentals during a stay-at-home order is probably one of the biggest changes we’ve seen in property management processes. Many have switched to using virtual showings or video tours. Some states have specific guidelines on how to show properties, which includes establishing a written plan. Using face coverings and hand sanitizer has become common practice, and unit walk-throughs discourage touching any surfaces, including opening cabinets or closets.

2. Handling evictions California alone has had more than 150 changes to eviction law with regard to COVID-19. Before issuing any type of pay rent or quit notice, property managers must first identify any new laws that have been enacted which may prevent them from filing either notice. If a property manager issues an improper notice, they could be liable for penalties of essentially unlimited dollar amounts. Management policies must now be compliant in each of the jurisdictions where property managers operate.

3. Performing maintenance Maintenance procedures changed dramatically as prioritizing repairs and implementing upgrades became a top concern.

Maintenance managers need to have clear and consistent policies as to what is an emergency or non-emergency repair.

Vendors used for repairs must be carefully screened to ensure they are utilizing safe practices when entering a home to keep themselves and the residents safe.

Although the hope is for this virus to die out in 2021, it’s likely that many of these changes will be with us for a long time, if not indefinitely. With a few simple adjustments to our property management businesses, we’ve been able to continue providing quality housing to our residents while keeping them safe.

Mark Scott, Property Manager, Encore Realty, Inc.; Member, NARPM

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How Property Management Has Evolved with a Pandemic We asked our panel of experts how the property management industry has shifted in the past year and what new challenges they face.

What is the biggest trend you have seen in the rental industry during the pandemic?

Ray Hespen: We’re seeing a massive shift in how people work. With a greater percentage of the population working remotely, the idea of a home has become multi-purposed. Consequently, this leads to a more frequent need for repairs.

What is the one amenity that every property manager should be investing in this year?

RH: Communication and transparency are hands-down the amenities that every property manager should be investing in.

With the decrease in personal interactions, communication and transparency have become the absolute foundation for the way people work.

Jenny Lytle: During the pandemic, three things are critical: (1) working remotely whenever possible, (2) tracking people’s comings and goings to keep spaces safe, and (3) providing touchless solutions whenever possible. A quality cloud-based access control solution addresses

Ray Hespen CEO & Co-Founder, Property Meld

Jenny Lytle General Manager of Access Controls and Community Services, The Chamberlain Group

all of these things. It lets property managers control who enters and exits their buildings remotely.

How has technology helped empower the modern-day property manager to most effectively find, validate, and keep long-term tenants?

JL: Technology has undoubtedly made finding and vetting prospective tenants easier through search, self-guided touring, online applications, and back-

ground check services. Using the right technology partners can also enhance the resident’s experience and retain them over time. Good technology partners will think about the property manager and resident needs and create solutions that enhance the experience. This translates to satisfied tenants and less turnover.

What is the most common risk property owners face from tenants when renting out their property, and how can this be avoided?

RH: The most significant risk is a leasing non-renewal. When someone doesn’t renew, the turnover process can become quite costly and eat at the property’s profitability. We recommend keeping a lockdown on maintenance metrics to eliminate one of the biggest reasons a lease will churn.

JL: Property damage is one of the biggest and most expensive risks, especially outside the unit.

Installing a front door access control system can help protect your property and provide proof for insurance claims if events do occur. n

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Apartment Living Leads the Way to a Greener Future

Apartment residents should know that their housing choice is one of the most environmentally responsible decisions they can make.

Compared with single family homes, higher density housing takes up less land, uses less energy, displaces less stormwater, creates fewer car trips, and in general should be part of any climate change solution planning.

Apartment owners and managers have been building and operating more energy efficient buildings, and they’re acquiring certifications through LEED, the NGBS, and EnergyStar, just to name a few. Additionally, investors are increasingly requiring green buildings as part of their investment strategy. Spurred on by consumer and investor preferences, the apartment industry is building and retrofitting housing to be even greener and healthier. New certification programs and technology are two trends enabling these monumental changes.

Health and wellness certification While there had been growing interest and focus on the health and

wellness of residents in response to changing demographics and lifestyles, the global pandemic accelerated the push and significantly increased interest in healthy building certifications. The two major certification programs, Well and Fitwel, include a focus on development components like assuring air and water quality in new buildings as well as operational requirements for cleanliness and sanitation.

Eco-friendly technological advancements The second significant development has been taking place over the last few years. Massive investments have been made in real estate technology, also known as PropTech. Much of that investment has been in technology that is making apartment buildings even more energy efficient and healthier for residents.

Consumer-facing technology like smart home automation allows residents to save money and energy by controlling their thermostats, lighting, and even window coverings through their phone. Breakthroughs in mate-

Pieces of Data Every Landlord Should Have (But Most Don’t)

Many landlords don’t realize that credit reports leave out three crucial pieces of applicant data.

1. Prior evictions In 2017, the three major credit bureaus removed nearly all eviction judgments from credit reports. This means that you can’t tell if a rental applicant has been evicted just by looking at their credit report. To protect yourself, make sure every tenant screening report includes a separate eviction report.

rial manufacturing allow for the installation of dynamic glass that automatically blocks or lets in sunlight depending upon whether the resident wants to warm or cool the room. Innovative new UV light systems in HVAC kill bacteria, viruses, and fungi, stopping the airborne spread of pathogens.

On the operational front, a variety of new PropTech improves access to data and analytics for building management, allowing the managers to quickly assess and address inefficiencies, supporting optimal building efficiency. Sensor technology that once seemed a distant dream has become an affordable reality. For example, sensors can detect a water leak immediately and thereby prevent property damage and displacement of residents.

It truly is a new era for the apartment industry. Greener and more health-oriented solutions will help offset climate change while providing safer places for people to live. n Rick Haughey, NMHC Vice President, Industry Technology Initiatives

2. Small claims Landlords often take a tenant to small claims court if they move out while owing rent or if their security deposit did not cover the damages they left behind. However, a small claims judgment won’t be on a tenant’s credit report or eviction report. Make sure that you pull a public records report to see any small claims judgements against your applicant.

3. Rental payment history Up until recently, only large corporations could report rental payment history on a credit report. Now there are new services that help smaller landlords report rental payments as well, but there are still very few landlords reporting. In most cases, you won’t find rental payment history on a credit report.

The first step every landlord should take is to investigate what data they are currently getting from their tenant screening provider. Make sure your provider offers eviction reports and public record reports, or do thorough independent research. Evictions, small claims cases, and tax liens are expected to rise this year due to the financial strain the pandemic has caused. Make sure you’re getting a full picture of the applicant you are considering.

Alexandra Alvarado, Director of Marketing and Education, American Apartment Owners Association READ FULL ARTICLE AT FUTUREOFBUSINESSANDTECH.COM

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