May Newsletter

Winning the Race to Better Property Management in Indianapolis

Your Property Management Newsletter Inside!

Polaris Property Management welcomes you to our May Newsletter, packed with exciting updates, comprehensive resources, and the very latest from the real estate industry.

Bringing you a round up of the latest news, ideas and tips to maximize your experience as a landlord or REALTOR®.

Investing in property is a significant endeavor, and having the right property management partner by your side is crucial for  your success.

Polaris Property Management in Indianapolis is committed to supporting your investment goals by providing top-notch property management services tailored to your unique needs. We prioritize open communication, transparent processes, and a customer-centric approach, ensuring your satisfaction every step of the way.

FC Tucker Recognizes
POLARIS PROPERTY MANAGEMENT
for 11th Straight Year
Best in Class

Experiencing an Emotional Roller Coaster: My Success Story in Reclaiming a Challenging Property

Owner name withheld on request

The Heart-Wrenching Beginning: First Experiences as a New Property Landlord

Property ownership was supposed to be a dream come true symbol of independence; the essence of the American Dream. Yet, this dream quickly morphed into a terrifying nightmare. My new acquisition was a charming, six-bedroom Victorian house. With a romantic charm and bagful of potential, I was instantly smitten. However, beneath the luster of the ornate banisters and weatherworn bricks hid a trove of heart-wrenching challenges that hurled me into the unfamiliar maze of home restoration and emotional distress.

My introduction to property ownership included relentless leaks threatening to flood the space and destabilize the structure, antiquated plumbing and electrical systems, cracked windows that offered more of an open air experience than I hoped for, and let’s not forget an infestation of insects seemingly rerouting from a nearby insect expo. Absolutely soul-crushing.

The Emotional Dungeon of Property Challenges: My Experiences with Being Tested

Every new day teased a fresh challenge, like a cruel game of property Jenga where I was always poised on the brink of collapse. Dealing with contractors felt like wading through quicksand in boots of deceit and greed. Quotes were steep; some, steeped in dishonesty, made me question mankind’s basic honesty. Constant scheduling conflicts, miscommunications, and subpar work quality made significant progress elusive. At the intersection of optimism and despair, I began to question whether I had bitten off more than I could chew. This property management dream had become an endless nightmare. Yet, I was determined not to be bested by this beast that was my “retirement dream.”

Coupled with managing my regular day job, the property demands leaned heavy on me. Sleep was a distant memory and coffee became my most trusted comrade. I waded chest-deep into permits, zoning regulations, insurance protocols, and building codes, each foreign concept an emotional blow. Tired, frustrated, at times even tear-filled, I frequently found myself alone, staring at the tawny bricks of my burden, wrestling to keep faith alive.

A Symphony of Triumph: My Path to Reclaiming the Beauty Beneath the Chaos of a Challenging Property

But as they say, “when you hit rock bottom, the only way is up.” So I set to work clawing my way back up – scissors in one hand to cut through tape of bureaucracy, a hammer in the other. I began by emotionally distancing myself from deceitful contractors, substituting them with more reliable hands who genuinely had my project’s best interests at heart. Slowly and surely, I could see layers of damage peeling away, revealing glimmers of hopeful promise underneath.

The old, cracked glass was replaced with strong, modern windows that breathed life into the house. The outdated, complicated plumbing and electrical system made way for new, efficient and safer systems. Unwanted organism visitors were evicted, and new fresh paint cloaked the house in a renewed vibrance. Piece by piece, I was reclaiming the beauty beneath the chaos.

Looking back, it was indeed an emotional roller coaster, a test of mental strength and resilience. But now, every creak of the floorboard is a melody of triumph to my ears, a resonating reminder that I surmounted immense challenges to shape this property into a home. I can proudly say that despite the overwhelming difficulties, I am a victorious landlord. More importantly, I have grown – stronger, wiser, and more resilient. And I am grateful for this fantastic, albeit tumultuous, experience to have learned invaluable lessons about perseverance, patience, and the true beauty of transformation.

Polaris Property Management is a trusted partner for landlords in the Indianapolis area. Our comprehensive services take the hassle out of owning rental properties. We handle everything from finding and screening tenants, to maintenance coordination, rent collection, and ensuring you remain compliant with all regulations.

Our experienced team has deep knowledge of the local market and rental laws. We strive to maximize your return on investment while providing top-notch customer service. When you partner with Polaris, you gain a dedicated ally committed to making your life as a landlord easier. Let us put our resources and expertise to work for you.

Mastering Crisis Communications in the Real Estate Realm: An Informative Guide for Investment Professionals

How one manages crisis communications directly impacts the perception and reputation of an organization, especially in the high stakes world of real estate investments. The real estate realm has always been a challenging sector, and navigating through crises requires tact, sensitivity, and a remarkably solid communication strategy.

Understanding the Importance of Crisis Communications in Real Estate Investments

Real estate stands out as one of the most valuable and appreciated investment options. It is also, however, a field vulnerable to market fluctuations, strong regulations, and unpredictable circumstances like natural disasters and man-made crises, which can all give birth to panic. The manner in which real estate investment professionals respond to such crises can immensely affect investor trust and the overall image of the organization.

Crisis communications is a strategic approach designed to protect and defend an organization facing a public challenge to its reputation. It allows investment professionals to maintain a clear and consistent stance, manage the flow of information accurately and effectively, and make swift and informed decisions during moments of intense pressures.

In the real estate sector, crisis communications aims at minimizing damage during property disputes or financial losses, reassuring stakeholders, and preserving the integrity and reputation of the professional or the organization.

Key Strategies for Effective Crisis Communications in the Property Market

The real estate sector demands a proactive and well-articulated crisis management plan that includes pertinent communication maneuvers. Let’s walk through four key strategies for effective crisis communications in the property market.

First, you should always have a comprehensive crisis communication plan at hand. This includes identifying potential crises, planning the steps to navigate through them, designating a crisis management team and spokesperson, and establishing an efficient internal communication strategy.

Second, ensure transparency and honesty. This does not mean revealing every little detail, but you should not withhold information or misguide stakeholders. Honesty builds trust and credibility, which can help you manage the crisis better.

Third, rapid response is essential. The faster you respond, the better you can control the crisis narrative. However, being swift does not mean being hasty. It’s important to take the time to understand the crisis, but once you have all the details, speedy action is crucial.

Lastly, review and adjust your strategy as needed. A crisis can evolve very quickly; being agile in your response and willing to modify your course of action can give you the upper hand.

Real-life Examples of Successful Crisis Management in the Real Estate Sector

The 2008 financial crisis is a prime example of successful crisis management in real estate. Multiple firms not only survived the crisis but emerged stronger by responding quickly and adjusting their strategies. They maintained clear and frequent communication with investors, assuring them of their safety measures, and keeping them informed of the steps they were taking to mitigate risks and losses.

Another notable example is the 2011 earthquake and tsunami in Japan. Real estate firms, both local and international, managed this crisis remarkably well. They established crisis response teams, continuously updated their stakeholders, focused on the safety of tenants, and worked in collaboration with local authorities. Their transparency, quick action, and focus on community welfare helped in managing the crisis effectively.

Mastering crisis communication is a crucial skill for anyone in the field of real estate investments. A well-executed communication strategy during a crisis can safeguard a company’s reputation, preserve investors’ trust, and even provide an opportunity for growth and learning. Embrace transparency, quick response, and flexibility, and you will be well equipped to deal with any crisis that comes your way in the property market.

Dealing with Rising Property Tax Bills as a Landlord

As a landlord, one of the ongoing costs you have to deal with is property taxes. While nobody likes paying taxes, they are a fact of life for property owners. And in many areas, property tax rates have been rising rapidly in recent years as municipalities look for ways to increase revenue.

 A spike in your property tax bill can put a major strain on your finances as a landlord and cut into your profits significantly if you’re not prepared for it. The property tax crunch can be especially painful for landlords of residential rental properties who can’t always easily raise rents to cover their increased costs.

 So what can you do if you open your latest property tax assessment and see that your tax burden has gone up dramatically? Here are some tips for dealing with rising property taxes:

  1. Understand the Reason for the Increase

Before taking any actions, dig into why your property tax bill spiked. It could be due to an across-the-board rate hike by your local government, a reassessment that increased the value they assign to your property, the loss of any tax breaks or credits you previously qualified for, or a combination of factors. Knowing the root cause is important for determining the best way to respond.

  1. Appeal if Appropriate

If the increase seems excessive or inaccurate based on a reassessment of your property value, you may be able to appeal through formal channels. The appeals process varies by location, but is worth exploring if you have a solid case that your property was over-valued.

  1. Calculate the True Cost Impact

Crunch the numbers to see how much of a dent the increased taxes will put in your operating income for the rental property or properties affected. This will tell you how large of a rent increase may be required to offset the costs.

  1. Provide Proper Notice to Tenants

For existing tenants, you can’t immediately raise rent in response to a property tax increase in most locations. You’ll need to provide proper written notice as specified by landlord-tenant regulations where you operate, typically 30-90 days.

  1. Adjust Market Rents for New Tenants

For new incoming tenants with no lease yet in place, you can adjust the listed rental rate from the start to account for higher property taxes. Be aware of whether rate increases may price you out of the market and negatively impact your ability to keep units filled.

 

  1. Explore Cost-Cutting Opportunities

Finally, look for ways to cut expenses in other areas to partially offset the property tax increase. Opportunities may include refinancing to a lower interest rate, raising rent on any units not yet impacted, investing in efficiency upgrades that reduce utilities, and more.

Dealing with rising property taxes is an unfortunate but sometimes unavoidable part of being a landlord. Having a plan in place can ensure you can absorb the impact and keep your rental business on solid financial footing.

 

TWEET

Dealing with rising property tax bills as a landlord? 💰🏘️ Understand the increase, appeal if overstated. Calculate true cost impact & provide proper notice to tenants. Adjust market rents for new tenants. Explore cost-cutting opportunities. #LandlordTips 🔑

PROPERTY TAX CRUNCH

NOT A FACTOR FOR POLARIS PROPERTY MANAGEMENT LANDLORDS!

Our Lease Agreements include the following:

46. Property Tax Increase Pass-Through to Tenant. Landlord reserves the right to increase the monthly rental amount due to any substantial increase in Landlord’s property tax burden. Should Landlord’s property tax burden for the Premises increase by more than __five__ percent (___5%___) from the previous year, Landlord may increase the monthly rent by an amount up to the Increase in the monthly property tax burden for the remainder of the Lease. In such an event, Landlord shall provide thirty (30) days written notification and proof of the increase in property tax burden to Tenant. The increased rent shall begin when the next monthly rent is due after the expiration of the thirty (30) days notice.

Get A Free Rental Property Analysis

The Polaris Property Management Team of experts would love to provide you with expert analysis of your property. Click the button below to go to our Rental Property Analysis Request Form.

If you own property, or are thinking about investing, and would like to discuss steps to obtain your own financial independence through property ownership and professional property management, please contact us today: Dan@PolarisManage.com
NO INVESTMENT or TAX ADVICE
The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Polaris Property Management or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Polaris Property Management is not a fiduciary by virtue of any person’s use of or access to the Site or Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Polaris Property Management, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.