Taking a proactive role in leasing will have the greatest effect on the bottom line - by Matthew Engel

Property management firms spend countless hours dealing with a myriad of issues in New York City. As the morning starts, we field calls of overnight leaks and heating deficiencies. We deal with analyzing collections and reviewing tenant receivables. Determining and mailing out renewals takes a significant time period. We oversee insurance claims and we evaluate the insurance certificates provided by dozens of vendors to make sure proper coverage is in effect before they work on our properties. We consider lead and other housing regulations to ensure compliance and we network throughout the industry to ensure that we are up to date on the important political situation affecting our industry. Perhaps the largest portion of our business that often gets overlooked is the most obvious. Taking a proactive role in leasing will most likely have the greatest effect on the bottom line of the properties that we manage. “Duh!”- you say, but most management firms often play the “let the tenants come to me” approach and in New York City, with a tight market, in some time periods, that is often enough to get by and keep your building occupied. However, over the past few years, with a weak economy, and even in the current months, with the rental market hot as a stove with fierce competition among tenants to snap up the best apartments, a proactive approach will yield a much greater bottom line. It’s important to take a multi-pronged approach to leasing. First off, as soon as you hear a unit will be vacating, calendar it so you can swoop right in to do any necessary repairs. Secondly, if it’s in an area where pre-leasing occurs, start to list the unit for rent in advance. Most tenants are reasonable and will allow you access to show the apartment. If you can get it signed before the unit vacates, not only will you limit your downtime, but you’ll create pressure for your vendors to get any work done with a real deadline! Today’s renters are a savvy bunch. Despite thoughts to the contrary, the vast majority of renters will begin their search online. Free websites like craigslist can allow you great exposure and will generate significant interest by themselves. Post pictures and use as much description as you can to make your units stand out above other buildings.  Be careful however, to comply with all federal, state and local regulations and do not use illegal language targeting your unit to a specific group. Protections cover more than just race, religion and ethnicity, but even targeting toward a specific family composition. Referrals can also be a significant generator of interest. At times we will send notices to other occupants of the building (good tenants only of course!). The best referral you can get will be from a tenant you are happy with. They tend to come in packs! And of course, feel free to use outside leasing brokers who specialize in bringing quality tenants. They will save you significant legwork, by not only procuring prospective tenants, but put together applications, collecting fees and running credit checks in advance. If they are a good broker, they will “pre-screen” and know what you are looking for. After you develop a relationship, you are likely to practically be able to rubber stamp their applications. Using all of these different methods of procuring tenants will assist you in keeping your building occupied. Remember, lost collections can never be recovered! Matthew Engel, CPM, is president of Langsam Property Services Corp., New York, N.Y.