Franklin Street Management: Best Practices BestPractices-Operations

PROPERTY MANAGEMENT BEST PRACTICES – OPERATIONS 1. Shut down all common areas including pools, fitness centers and business centers until the quarantine is lifted. 2. Maintenance should enter occupied units only for emergency repairs until the quarantine is lifted. 3. Limit (if not eliminate) foot traffic in the office. Instead, effectively message out alternative methods of communication such as phone / email / resident portals. 4. Keep the entire staff on payroll but work with a “Team A”, “Team B” rotation until operations normalize. 5. Discuss a revised delinquency policy to account for the disruption of income to valued residents. 6. Stress / encourage the use of credit card, ACH or other “remote” payment methods. 7. Document any rental forbearance agreements with residents in writing. 8. Ask for proof from residents that the Coronavirus is the reason that they lost their job. Use this proof as back up if you seek SBA 7(a) loan assistance from the new $2 Trillion-dollar Aid Package. Mortgage interest, rents, utilities and payroll costs are all covered in the plan and a portion of the loans are forgivable. 9. Check your insurance policy to see if global pandemics are covered as a business disruption. 10. Monitor the trash situation and add additional trash pickup days as needed. 11. Create lists of vendors that are still operating so that teams know what resources are available in various situations. 12. Create a list of useful projects for on-site team members to accomplish (deferred / preventative maintenance, curb appeal, property website improvements / updates etc.) FINANCIAL OPTIONS FOR OWNERS 1. Fannie Mae and Freddie Mac are offering 90-day forbearance agreements for borrowers in good standing. A moratorium on evictions is part of the forbearance plan and there are slight differences between the two plans that Fannie and Freddie are offering borrowers. Please contact your Freddie Seller Servicer or Fannie DUS Partner for more details. 2. The recently passed $2-Trillion Aid Package includes a $350-Billion Small Business Administration 7(a) loan program for eligible business owners impacted by the Coronavirus. Eligible businesses can receive up to $10-Million toward mortgage interest, rents, utilities and payroll costs. A portion of the loan is forgivable. Please contact your local SBA office for more details.