How To Keep Expenses Low

Question: Turnover costs are very high, even after a year. It seems excessive

Answer: We understand your concern about turnover costs, and we want to explain the three key factors driving these expenses:

First, labor and material costs have increased 25-30% over the last two years. While we actively negotiate the best pricing for our clients, this significant market shift affects all aspects of property maintenance and updates.

Second, today's rental market is increasingly competitive, particularly with newer, amenity-rich buildings offering modern finishes and move-in incentives. To maintain the value of your investment and attract quality residents, we ensure your property meets these market expectations while upholding our portfolio's reputation for stylish, well-maintained homes.

Third, DC rental requirements continue to evolve, sometimes mandating specific updates like hallway painting in condo buildings. Beyond compliance, we've found that maintaining fresh paint, thorough cleaning, and addressing minor repairs leads to higher resident satisfaction, longer tenancies, and fewer maintenance requests over time.

Our new service model will provide greater transparency about these investments, ensuring you have the information needed to make confident decisions about your property.

source: https://morrisgarritano.com/resource/rising-material-costs-in-the-construction-industry-and-how-it-affects-insurance-rates/

Question: Why do homeowners not have a homeowner advocate/account throughout the property management process?

Answer:  We sincerely appreciate this feedback, and you're absolutely right - no owner should feel like they're on a conveyor belt. We're excited to share that addressing this exact concern has been a cornerstone of our reorganization.

Starting in the new year, each owner will have a dedicated Home Manager serving as your primary point of contact and advocate. They'll partner with you and coordinate with our entire team on your behalf, ensuring you have consistent, personalized support for your property. This change, supported by our new technology platform, will provide the continuous, attentive service you deserve.

Question: What is the best way to get DC tenants to leave when they do not pay their entire rent on a regular basis?

Answer:  This is a complex situation that requires careful navigation of DC regulations. Here's our recommended approach:

For late rent payments, we follow a structured process:

• When a resident owes over $600 in unpaid rent, the eviction process can begin. This process starts with the service of a legal document - a notice of intent to file a claim.
• DC law requires attempting a payment plan and Emergency Rental Assistance Program (ERAP) application in many instances
• We use an outside eviction attorney to navigate this process, which can take up to a year

Prior to initiating a legal action, our team actively pursues payment and applies appropriate late fees. Often times such efforts result in the payment in past due rent.

To protect your investment, we recommend:

• Maintaining, in your personal budget, a three-month "escrow" for mortgage and maintenance costs
• Exploring rent loss insurance coverage with your broker
• Filing for eviction based on nonpayment of rent as early as possible, since the process takes such a long time

Our team is here to guide you through this process and help protect your interests while following all legal requirements.

Question: How long does a month to month rental last after the first year lease?

Answer:  Here's the scoop on month-to-month leases in DC: Your residents have the flexibility to stay indefinitely after their initial lease term, unless you're planning to move back in yourself. The good news? As long as your property has a RAD exemption and isn't rent-controlled, you can implement annual rent increases to help cover those rising costs we're all feeling. We'll walk you through all of this to make sure everyone's taken care of.

Building & Property Maintenance

Question: Tell me more about what goes into maintenance and repair coordination fees

Answer: We're big believers in the power of proactive care - simply put, a well-loved home is cheaper and easier to maintain over time. Regular attention means fewer midnight emergency calls, systems that last longer, and residents who love where they live. At Nest DC, this isn't just about maintenance - it's about caring for homes the way we'd want our own homes cared for.

Our maintenance coordination fee lets us:

• Jump on emergencies fast (which usually saves money in the long run)
• Work with vendors we trust to catch small issues before they become big ones
• Keep our 24/7 hotline open for residents, often helping solve minor issues without needing a vendor visit
• Make sure every repair is done right and every invoice is exactly what it should be

Most of our clients invest about 10% of their rental income in maintenance, with our coordination fee averaging just $30 monthly. It's an approach that keeps your investment protected while maintaining the high standards that make us proud to be Nest DC.

Rental Market and Insights

Question: What is the current rental market looking like? What does that mean for my property?

Answer: Let's talk about what we're seeing in our community: Quality rentals in DC and Maryland will always have a place, and we work hard to make sure our portfolio stands out. While we can't predict exactly where the market's heading (we wish!), here's what we're noticing:

The current story is interesting:

• Our smaller units (studios and one-bedrooms) are seeing tiny dips (0.20% and 0.15%)
• Larger units are showing some nice growth (1.36% for two-bedrooms and 1.59% for three-bedrooms)
• Looking ahead, we're expecting a 4.2% overall increase next year

Based on what we're seeing, we're suggesting:

• 5% increases for yearly renewals
• 10% increases for month-to-month leases

DC continues to show its resilience - while national rents dropped by 0.7% last year, our market stayed strong. If you're thinking about selling, we're happy to connect you with real estate pros we trust who can help you weigh your options, especially with occupied properties. We want to make sure you have all the information you need to make the best decision for your investment. Source: Steadily - Average Rent in Washington DC

Question: How does Nest DC see its responsibility towards owners?

Answer:  Your investment matters to us - we know it's not just a property, it's part of your financial future and we take that trust seriously. Here's how we show up for you every day:

We handle the essentials with care:

• Getting your rent collected and to you promptly
• Staying ahead of compliance requirements (so you don't have to worry)
• Marketing your property thoughtfully and finding great residents
• Being there 24/7 for emergencies
• Keeping up with preventive maintenance (because we'd rather prevent problems than fix them!)
• Working with vendors we trust (who are licensed, bonded, and charge fair rates)
• Building real relationships with your residents

With more folks working from home these days, properties are getting more daily love than ever. By maintaining Nest DC's high standards across the board - from preventive maintenance to pest control to quick responses on bigger issues - we help your property shine. When your property consistently delivers the quality residents expect, it creates a win-win: happy residents and a protected

investment.

Question:  Are there are any city programs that assist HOAs with funding issues that are impacting the proper function of condo buildings? I heard there might be some type of city grant to address the influx of run down apartment and condo buildings that are result of delinquencies.

Answer:  We wish we had better news on this front. Currently, there aren't any active programs helping HOAs with funding challenges. While there have been some grant programs in the past for individuals struggling with mortgage and HOA fees, those funds have unfortunately been used up.

The challenge is complex: The DC Condo Act doesn't require buildings to maintain adequate reserves or meet specific maintenance standards that would help ensure long-term building health. We understand how frustrating this can be, especially when you're seeing your building face these challenges.

We're keeping a close eye on any new programs or initiatives that might emerge to help address these concerns. The city is aware of the growing number of buildings facing these challenges, and we're hopeful that new support programs will be developed. In the meantime, we're happy to connect you with resources for building management best practices or discuss strategies other HOAs have used to address similar challenges.

Question: Communication with Nest has been chaotic and my residents have been frustrated because of service concerns. I’m worried they might move out. I’ve been incredibly disappointed in lack of responsiveness to basic concerns. I’ve considered moving on from Nest.

Answer:  We saved this crucial conversation for last because it hits home the most. We've heard your frustrations about communication challenges, and you're right - it's been a real pain point. Instead of offering excuses, we've rolled up our sleeves and made real changes.

The truth is, property management is wonderfully complex - from those midnight emergency calls about floods to the daily rhythm of maintenance requests. We've taken a deep look at where our messages get tangled and used those insights to completely reimagine our approach. Our new single point of contact design and improved tools will help ensure you're never left wondering what's happening with your property.

But here's what really matters: this new structure gives our Home Managers room to breathe, to build real relationships, and to give complex issues the attention they deserve. We believe in the human side of property management - it's what makes Nest DC special.

We know promises without action don't mean much - that's why we've rebuilt from the ground up. As these changes take shape, we'll be watching closely to make sure we're delivering the communication you deserve. We're excited to show you the difference, and we'll keep checking in to make sure we're hitting the mark.