Filed under: General, Property Management, rentals | Tags: Home Warranty, Portland OR, Property Management
On any given day, we’re handed an opportunity to meet or exceed the expectation of a client. Imagine the ‘kudos’ one feels when they walk away from an interaction that just feels good! Granted, not all exchanges are entered into with smiles and handshakes, nor flavored with unicorns and butterflies, but we do strive to offer a level of professionalism no matter how difficult or minute the nature of business. Sure, we’re often thought of as the ‘bad guy’ when we follow policies and procedures, adhere to Landlord/Tenant Law, abide by Fair Housing Rules and Regulations and the Oregon Real Estate Agency, but we stand by our committment to provide a service that offers peace of mind to both owners and tenants.
The following posting is from a long time colleague from Sacramento, California. His years of experience as a Property Manager have served him well as he ponders, “How I made all my customers happy”.
How I Made All My Customers Happy
In a recent dream, I decided to make everyone I deal with happy. I would be the most popular and successful property manager in town and my business would be the envy of the industry.
It would be easy too. I would just deliver on the requests of my clients, both owners and tenants. At the end of the day, everyone would be happy with me.
Each new property management client would be asked how much they felt my fees should be and I would agree. I would not ask them to spend money to make the rental presentable. We would make it work. The owner would want a certain rent, maybe over priced, and I would tell them I could get it for them in a matter of weeks. Advertising costs would be no charge. What a happy client I would have.
Now, I would start showing the property and if someone came to the appointment, I would tell them to fill out our application and pay no fee for the credit report. I would tell them up front that their application would be approved without any formality of actually checking the facts. We believe them! Pay with a check if you wish, cashiers checks are so hard and expensive to get.
Now I am so popular.
Wait, I just got a fax from the bank, the security and first months rent check bounced. Now I have to tell the owner that we have to evict the tenant that has paid nothing. In addition, the tenant is complaining about a torn carpet that was not repaired and someone has tripped breaking their leg. I am to hear from their attorney.
Suddenly, and it did not take long, I am not so popular and everyone is mad at me. If they are not mad, they are ripping me off. Wait, the buzzer went off and my dream (nightmare) is over.
Now I am getting up to go to work. My real new account appointment that I have today will involve a discussion on what maintenance must be done and what the real rent range is. Our commissions will be a point of contention as some sales agent that just opened their business is undercutting my fees. Some prospective tenants will have to be told they don’t qualify. We do not want to do business with them. They will accuse me of something bad.
I am awake and I have been in business for 30 years. Luckily, in my real life I know how things work and I know not everyone will like me so I might as well do the right thing and stay in business for the long term. You see, people that have standards also have enemies.
Filed under: Home Repairs, Home Warranty Programs, Property Management, rentals | Tags: Chris Hermanski, Home Warranty, Property Management
Question: I pay $436 a year for a home warranty. But is it worth the expense? I wonder if I should save that money and pay for home repairs out of pocket instead?
Answer: Your instinct is correct. In theory, a home warranty covers all repairs on the appliances and service systems in your home for an annual premium of $250 to $450, plus service fees of $50 to $100 anytime a contractor is dispatched to repair or replace a unit. At first glance this might seem like a good deal, since you might pay thousands of dollars to replace a high-quality furnace or central sir system. The problem: These policies are loaded with caveats and exceptions in the fine print that can leave giant holes in your coverage.
For example, the cause of the problem generally has to be within the perimeter of your house, so if your plumbing breaks down because of a tree root in your yard, your claim will be denied. Ditto if a contractor arranged through the warranty company determines that you haven’t been performing proper maintenance on your system or appliance (say, you didn’t change the filter on your furnace frequently enough). You’ll also have limited say over what kind of replacement appliance you get, and you will almost always have to shell out extra if you need to upgrade your system, plus pay to get your old unit hauled away.
In other words, even with a warranty, you’re likely to end up paying plenty for home maintenance. So you’re better off using the money you would have spent on premiums and fees to build a truly adequate emergency fund that you can tap in the event of the occasional boiler meltdown.
- Carolyn Bigda
Money Magazine April 2008
