CR Magazine – Autumn 2018
The official publication of the Chicago Association of REALTORS®.
The official publication of the Chicago Association of REALTORS®.
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How to Stand Out as a<br />
PROPERTY<br />
MANAGER<br />
We sat down with Chris Pezza, Miller Chicago LLC, and picked<br />
his brain on property management tips for beginners and<br />
veterans alike. He’s a tried-and-true property manager with so<br />
many nuggets of advice, we didn’t want to leave anything out!<br />
Why should you care about perfecting your property<br />
management practice? Not only will it save you money, it<br />
will improve your relationships with your tenants and with<br />
your network.<br />
DEVELOP A SMART<br />
BUSINESS STRATEGY<br />
Own and manage like you’ll own and manage your property<br />
forever; if you’re a third-party manager this mindset is essential<br />
to establishing a proactive, profitable property management<br />
business strategy.<br />
Formalize your systems and processes, and take advantage<br />
of CAR’s forms and contracts page! Many of those forms are<br />
offered for free, a unique benefit to our association.<br />
KNOW LEGISLATION<br />
The single most important document to any property manager<br />
is the Chicago Residential Landlord and Tenant Ordinance<br />
(RLTO). As one of the strictest in the country, all property<br />
managers should be well-versed. You should establish a good<br />
relationship with a landlord attorney— not to be mistaken for a<br />
real estate attorney who does not know RLTO.<br />
Next, know local. If you own properties in Evanston, your<br />
regulations will differ from your properties in Chicago. Stay<br />
aware of these differences and how frequently they change.<br />
A great way to stay up-to-date on legislation is to attend<br />
CAR’s monthly Coffee with Your GADs events; they’re free<br />
for members!<br />
KNOW YOUR PROPERTY<br />
A stellar property manager must know their properties inside<br />
and out. Visit your property with a checklist (even tried-and-true<br />
managers can forget things!) and an inspector. Eyeball it top-tobottom<br />
and take inventory of the state of the roof, siding or brick,<br />
the windows, the foundation, etc.<br />
You should also know your building types, from condos, to twoflats,<br />
to courtyard buildings, to 4+1, to skyscrapers and so on. The<br />
type of building offers an insight into where it fits in Chicago’s<br />
history and, most importantly, will tell you how your property<br />
will run and what sort of attention it’ll need. For example,<br />
maintaining a stable foundation is crucial to managing a 4+1,<br />
while maintaining an elevator is more important in a skyscraper.<br />
And, if you know your legislation, you know that due to life<br />
safety, Chicago has a heat ordinance. Know what type of<br />
heating system your building has (HVAC versus boiler) and<br />
what condition it is in. The safety of your tenants depends on it!<br />
BUDGET WISELY<br />
When it comes to smart budgeting, research your fixed costs<br />
first. These are insurance, taxes, water bills and more. From<br />
there, you can budget for your variable costs (roof leaks, boiler<br />
repairs and replacements, plumbing emergencies) which often<br />
hurt the most. Look up benchmarking resources and talk to<br />
20 Chicago REALTOR ® <strong>Magazine</strong>
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