One of the benefits I love to offer is discounts for products and services including the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad”.
A little pre-show information about John Bradford who’s here from petscreening.com
One of the things we talked about in the interview that we forgot to mention is that he catches 32% of the assistance animals have disappeared after they were asked for more information. So essentially almost a third of the applicants after they apply through petscreening.com disappear after they get asked a question. In other words he’s weeding out the pets who owners are illegitimately trying to push through as assistance animals.
He’ll offer a discount code to waive the first hour of integration into your software. As usual, use the promo code “Brad” to access this offer! To take advantage of it, you can email info@petscreening.com.
Talk about petscreening.com. John’s been putting this out for a few months, saw it at the Orlando conference and was really excited about it. He’s graciously agreed to come on the show today to talk more about pet screening. He’s been on Fox News.
He’s been a property manager for 13 years, so he understands why pet screening is so important. Based in the Charlotte region, has about 30 employees, single family property management. He also has a political career, serves in the North Carolina House of Representatives and has developed a reputation as the go-to-guy not only for real estate and property management issues, but also issues surrounding assistance animals.
His three things for his vision: 1. Pet screening to reduce the liability for property managers and owners. 2. Didn’t want it to cost the housing provider or owner a single penny. 3. Wanted a product that would drive new revenue streams around pets.
He ranks pets on a scale of 1-5 paws based on a complex algorithm. This includes shot records, microchipping, breed, and more.
Here’s where you can find John:
info@petscreening.com Subject Line: Brad - I’m interested in learning more. Free consultation for integration with an IT company to optimize for your company.
Show Notes:
[02:58] - John tells us a bit about his background and how he got into the pet screening field. He explains how his two professional fields intersect to make him particularly qualified to deal with animal screening questions.
[04:14] - We hear about John’s vision when he started petscreening.com, including the three facets of the vision he had in creating it. He also talks about the kind of information that he collects throughout the process.
[07:32] - John talks more about the pet scoring system he created, which ranks pets (and owners) on a 1-5 paw scale. Only about 11% of applicants receive 5 paws; John’s own dog, in fact, only ranks 3 paws.
[08:50] - There is an associated risk with guard dog breeds, but that doesn’t mean that a firm shouldn’t rent to someone who owns one of these breeds.
[10:43] - Everything we’ve talked about so far is for household pets; John now moves on to talking about assistance animals.
[11:56] - Brad interjects to explain that he’s afraid of asking the wrong questions of someone who has a disability. John points out that the questions involved in his service are HUD-permissible questions, so there’s no risk of saying or asking something wrong.
[14:18] - If an applicant answers the first few questions correctly, John’s service moves onto a three-pronged test for the documentation: is it reasonable, credible, and reliable?
[15:19] - What if somebody wants to bring in an assistance animal in the middle of an existing lease?
[16:50] - John talks about how his tool integrates with various other tools and screening companies, listing a few specific examples.
[18:51] - We learn how John’s company generates revenue, which is by charging an application fee to the animal owner for every pet that comes through the tool, which is $20 for the first pet and $15 for each additional pet. This allows them to screen assistance animals without any charge.
[19:35] - John uses Brad (and his dog) as an example to explain how the tool works, and why it’s beneficial for pet owners even aside from property applications.
[21:02] - At the end of the lease agreement, is there any place to leave feedback on the pet? Their database includes two types of incidents: pet bites and property damage. In the future, they’ll be adding a way to indicate unauthorized pets as well.
[22:38] - Brad points out that unauthorized pets are probably the most common issue, more than any sort of dangerous breed incidents. John then gives an example of a potential issue involving a pet death mid-lease.
[25:32] - What kind of feedback has John been getting from applicants and tenants? He answers, then he and Brad discuss the benefits of the privacy that petscreening.com provides for tenants and applicants.
[27:29] - Brad points out that showing favoritism can actually be discriminatory.
[30:16] - John talks about cases in which a cat might not be vaccinated, using the example of a 15-year-old cat.
[31:55] - Has John see anybody integrate different fee structures based on their 1-5 paw score? Lots of firms, he answers, have created a variable pricing matrix based on the pet score.
[33:59] - John talks about how he’s seen this being presented to the owners of the homes. He also explains what information is presented to the owners, some of which is withheld for various reasons.
[37:16] - We hear about John’s integration with Rentscreener (FIND AND LINK THIS), which will become even deeper in the coming months.
[38:52] - Not all pit bulls are bad, and John’s tool is proving it, he explains.
[39:37] - John moves on to talking about renewals. His tool requires the pet owner to answer all the questions every year to make sure nothing significant has changed with their pet.
[40:57] - John shares an offer for listeners! Email info@petscreening.com with “Brad” in the subject line and just say that you want to learn more. If you want to proceed, they will pay for the first hour of the consulting integration with an IT company to make sure that they get the product optimized for your organization. (They’ve never yet had anybody go over an hour, he points out.)
[42:42] - Brad points out that John’s company is currently the coolest thing since sliced bread among property managers.
[43:02] - Will John be at the PM Grow Summit?
Links and Resources
info@petscreening.com Subject Line: Brad - I’m interested in learning more. Free consultation for integration with an IT company to optimize for your company.
Managing the Business Risks of Pets and Service/ Companion Animals
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
As property managers, we know the ins and outs of the rental industry. In fact, we’re so familiar with it that sometimes it’s helpful to step back and look at things from the tenants’ point of view instead. These people are likely moving from one rental property to another. They’re dealing with all the hassle of moving, which is exhausting whether it’s across the country or just across town. They’re also dealing with a heavy onslaught of expenses: renting a moving van, hiring people to help, paying rent and a deposit on a new place, and much more.
When your tenants are already overwhelmed with too much to do and lots of money going out the door, the last thing they want to deal with is setting up the utilities at the new place. This can be doubly true if the utility companies require large deposits, as some do. Going back to our side of things as property managers, we also don’t want to constantly field calls from tenants about which companies they should use, whether they can install a satellite in the roof, and how to set up a security system.
Fortunately, there’s an amazing company that makes things easier for property managers and tenants alike. My guest today is Wes Owens from Citizen Home Solutions, a concierge service for utilities. Wes will explain what his company does, and why it’s a win-win-win for tenants, his company, and the property managers alike. Best of all, he offers a commission that’s a quarterly share of 20% if you use the promo code “Brad” when you sign up!
Right now, Citizen Home Solutions operates in Texas and 13 other states. Don’t worry if you’re outside of their current coverage range, though! They’re happy to expand to new locations, and the process of setting up somewhere new generally takes a week or less.
Here’s where you can find Wes:
wowens@citizenhomesolutions.com
(214) 493-2010
Show Notes
[02:56] - Wes gives us an intro to himself and his company, explaining what Citizen Home Solutions does. Brad then points out some of the reasons for why setting up utilities is a difficult part of moving for tenants.
[03:54] - Wes walks us through the process of how his company works in more detail. He also addresses the topic of deposits in recommending providers to tenants.
[06:33] - Brad gives listeners the background on his use of Wes’ group, which goes back about two years.
[07:13] - The management company gets a quarterly commission for every service that makes Wes’ company money. In other words, Citizen Home Solutions shares their commission with the property management companies that use them.
[08:46] - Implementation is very easy, Wes explains, and walks us through the five-minute process involved in getting things set up.
[10:25] - Citizen Home Solutions is currently all over Texas and in thirteen other states, but they can get up and running in a new location within about a week.
[13:57] - Does Wes have any good examples of specific discounts?
[15:25] - Wes elaborates on the satellites he mentioned previously. They refuse to allow satellites on the roof, instead putting them on pole mounts in the back yard.
[17:23] - Wes moves on to talking about security systems. The system he uses is wireless and doesn’t damage the property, he explains.
[19:16] - Brad returns to the point that Wes can get his service set up in a new area in a week or less.
[21:44] - We learn more about how Brad has implemented Wes’ service into the backend of the system.
[23:40] - Wes talks about reviews. Lots of places ask their customers or clients to go to Google to review their company. Instead of making the customer do this work, Wes uses BirdEye.
[26:27] - BirdEye flags your reviews, Wes explains, and allows you to respond when you get a review below the limit you chose.
[27:42] - How can someone get started with Wes’ company, or get in touch with him? His phone number is (214) 493-2010 and his email address is wowens@citizenhomesolutions.com.
[29:49] - Wes talks about the promo he’s currently offering for listeners! If you get in touch with him soon using the promo code “Brad,” you’ll get 20% back, which is higher than their norm.
Links and Resources:
wowens@citizenhomesolutions.com
(214) 493-2010
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Today’s special guest comes all the way from Australia! Ben White is the director of Leading Property Managers Association, or LPMA. He’ll talk a lot about that association, as well as its US expansion efforts, in our conversation today! We’ll also discuss their accounting standard project, which coincides with some of our efforts to standardize accounting practices within the industry.
If you’ve listened to the show, you’ve already heard me talk about the PM Grow Summit, which is one of my favorite conferences. Another of my absolute favorites is the conference put on by LPMA, which goes above and beyond almost anything else you’ll see here. If you want to experience it for yourself, believe me, it’s well worth the flight to Australia or New Zealand. In fact, Ben has even sweetened the deal by waiving the conference fee for property managers or property management company owners who are listening to the show.
In addition to talking about LPMA and its conferences, Ben will offer some fantastic insight into the industry. As we discuss in the episode, despite (or maybe because of) some striking and fascinating differences between the American and Australian markets, we can learn a lot from each other. Ben points out, for example, that your biggest competitor is no longer the best agency in your marketplace. Instead, your biggest competitor (and the one you need to fear) is the worst property management company, because the bad companies are dragging down the industry as a whole. To learn more about this, and other great tips and insights into the industry, tune into this episode!
Here’s where you can find Ben:
Show Notes
[04:05] - Ben gives us a quick intro to who he is and how he got involved in property management.
[06:48] - For listeners who are wondering, Brad talks about why it’s worth listening to Ben even though he’s from Australia, which is a different market.
[08:31] - Ben explains that the infatuation with real estate is greater than that in the United States, in that many more people own investment properties.
[11:45] - We learn about Ben’s books, which he wrote after having been lucky enough to have visited well over a thousand property management companies.
[16:10] - Ben offers a synopsis of what he’s doing during this visit to the United States. He then discusses his affiliate program.
[20:09] - Brad takes a moment to rave about the many available resources on Ben’s site.
[22:09] - We hear about one of Brad’s recent changes, which was switching to Seacoast Bank.
[24:20] - Ben expands on the idea that staff churn can create a negative impact that lasts for years. He walks us through the four possible scenarios that can happen when a property manager leaves.
[29:47] - In Australia, there’s a trend to not give property management staff personalized email addresses, because there’s so much staff turnover.
[33:29] - Brad clarifies that Australian property managers charge weekly instead of monthly.
[35:39] - Ben talks about how the LPMA conferences are run, and offers a discount for listeners who want to come to one of these conferences in the future.
[38:12] - LPMA originally had two brands, both of which are now part of LPMA, Ben explains.
[41:36] - Ben expands on the formula he’s been working on coming up with to produce potential valuations for companies.
[43:46] - You can’t just value a property management company based on its income, Ben explains.
[46:16] - Ben shares a story about one of the first days that he was in property management. He and Brad then dig into specific numbers and percentages within the property management industry.
[50:08] - Brad points out that prioritization shouldn’t be overlooked, because it lets you know exactly where you should be focusing.
[53:08] - Ben talks about trying to develop a membership base for the LPMA in America.
[56:05] - Brad takes a moment to talk about how he and his company use LeadSimple to manage their workflow.
[57:24] - There are three kinds of core property management systems, Ben explains.
[59:33] - Where can people get in touch with Ben if they want to learn more or stay in touch?
Links and Resources:
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Before we dive into this week’s episode, I want to take a moment to talk about the recent NARPM National Convention that took place in Orlando, Florida in October 2017. This episode was actually recorded there, and the event is still fresh in my mind. Overall, my family and I had a great time! The weather was fantastic, as were Disney World and golfing!
The conference itself was good too, but a few things bothered me there. As a result, I plan to offer a bit more commentary on the state of the property management and the trade organizations around it in future episodes of this podcast. I want you to be aware of what’s going on so you can make a fully informed decision on how you want to proceed with booking (or not booking) some of these conferences.
This week’s episode features the brilliant Allison DiSarro from Seacoast Commerce Bank. After hearing what she could offer, we’ve decided to switch banks. Our current bank isn’t bad by any means, and we weren’t necessarily looking for a new banking solution, but what Seacoast offers is so phenomenal that we just couldn’t resist switching.
If you’re familiar with this podcast, you know that we tend to speak to people in the property management industry. This interview goes a bit further outside those lines, but is absolutely relevant to all property managers, even those in the four states where Seacoast doesn’t operate. Allison specializes in property management banking, and in this episode I’ll ask her all sorts of questions about banking as it relates specifically to property management. Tune in to learn more!
Here’s where you can find Allison:
(619) 988-6708
Show Notes
[03:45] - Allison introduces herself briefly. Brad then explains why he has a banker on a property management mastermind.
[04:42] - We hear what Allison does, which is specializing in property management trust accounts.
[06:42] - Brad points out that what Allison has been explaining is kind of scary because a lot of us just assume we’re in trust accounts even when they may not actually apply.
[09:04] - In response to Allison mentioning that they don’t have a physical presence in certain states that they operate in, Brad takes a moment to talk about electronic banking.
[11:38] - Allison talks about debit and credit card solutions. She also explains that they do ATM fee reimbursements since they don’t have an abundance of ATMs.
[14:24] - Brad digs into how Allison convinced him to switch to Seacoast Commerce Bank.
[16:57] - Allison explains more about how their system works for property managers. She then comes up with a specific scenario to explain what she means.
[21:54] - Brad steps in to use his company as an example to show the benefits of Seacoast.
[22:58] - Allison continues to explain Seacoast’s benefits, using the example of AppFolio to illustrate their system.
[26:05] - How does Allison help clients with the pain of switching over to different software?
[29:54] - Brad points out that lots of people want to switch softwares at the end of the year to minimize hassle with sending out 1099s.
[31:51] - Do people need to split trust accounts when they reach over the $250,000 secured by the FDIC?
[35:25] - Allison lists some of the states that they can’t work in for various reasons, including Florida, Nevada, Oregon, and Utah.
[37:47] - Seacoast Commerce Bank is planning to go more national than they already are pretty soon, Allison explains.
[41:26] - Brad talks about managing HOAs and its impact on the banking industry. Allison then explores HOAs in more depth.
[44:55] - Allison talks about safer and less safe ways of paying and conducting transactions.
[46:19] - How can listeners get in touch with Allison? She offers her email address and work number: adisarro@sccombank.com and (619) 988-6708.
Links and Resources:
(619) 988-6708
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Today, I have the honor of being joined by the remarkable and knowledgeable Tom Sedlack. Tom is a longstanding NARPM member and instructor teaching cash flow analysis. I was lucky enough to have the opportunity to take his class, and found it incredibly valuable. If you want to experience his knowledge firsthand too, don’t miss out on his upcoming speech in Orlando at the NARPM National Convention!
In this episode, we’ll mostly talk about a separate business model that you may want to consider for your management company: HOA management. As Tom explains, he and his wife manage 20 HOA associations with a total of over 1,000 HOA doors. These are spread across two areas: the Twin Cities and Kansas City. (And yes, Tom will also touch on how he handles running a company in two locations.)
Throughout our conversation, we explore the details of HOA management. We’ll talk, for example, about how it’s different from standard property management, how Tom got started in working with HOAs, and what the process is for winning HOA clients. Tom also offers fantastic insight into the details of running this part of his company with recommendations about software, checklists, and much more.
Here’s where you can find Tom:
Show Notes
[02:37] - Tom starts things off by introducing himself, talking about his background, and explaining how he and his wife got into property management.
[04:12] - Is Tom running his two offices from a central location, or do they operate independently?
[05:24] - Tom discusses how he and his wife broke into the property management market in Kansas City after already having a business in the Twin Cities.
[08:03] - Tom explains that they knew they needed 40 to 50 doors in the Kansas City area to break even.
[09:57] - We hear about the software that Tom uses specifically for HOA management, and whether it’s different from general property management software.
[12:34] - Did Tom join a trade organization specifically for HOA management?
[15:59] - Tom discusses who is doing the actual in-office work of handling the HOA management side of the company.
[16:53] - What are some of the unique challenges in managing HOAs as opposed to single-family homes?
[18:16] - We hear about Tom’s company is getting leads, which Brad points out is step one. Tom then talks about whether he has a long-term goal in terms of door count.
[20:50] - Tom talks about the next step of the process, which involves talking to the HOA board members.
[24:33] - Tom discusses the challenges of getting people to switch from a developer’s default management system to his company.
[27:57] - We learn that Tom uses an incredibly detailed onboarding checklist to ensure they don’t miss anything.
[29:27] - Does Tom have any leads on where to get a checklist and a draft management agreement?
[31:19] - Tom talks us through some information about the profit potential for HOA management.
[34:08] - Tom’s company uses both flat-fee and percentage-based pricing, but it’s usually a fixed price based on the number of doors.
[34:54] - Brad requests a story about a case in which Tom walked into a bad situation and turned it around.
[37:20] - The average size of his HOA clients is around 50 doors, and so about 20 clients make up the 1000 HOA doors that Tom’s company manages.
[40:03] - What are the best techniques Tom has found to help agents learn about cash-flow analysis?
[42:09] - Tom talks about how he breaks down and illustrates numbers to his investors.
[46:46] - Brad and Tom discuss the fact that property managers are pretty much recession-proof.
[47:15] - What’s the coolest thing Tom has implemented in the past six to 12 months?
[49:15] - Tom shares where listeners can find him and learn more about what he does.
Links and Resources:
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
One question many of us struggle with regularly is that of service animals. For example, can a pit bull qualify as an assistance animal even though it may be considered dangerous? Can a twelve-foot python be an emotional support animal? What about a chicken, or a pig? Is it a reasonable accommodation to allow a blind tenant to keep a horse on the property if that is his or her primary mode of transportation?
Robert Brown, a local San Antonio attorney licensed here in Texas, joins me on the show today to talk about all this and much more. Before we go any further, let me just take a moment for a quick disclaimer: nothing in this episode should be considered legal advice. But it gives you a starting point for your research and decisions, and conversation points to touch on with your own attorney.
If you’ve ever wondered about questions related to reasonable accommodations for disabilities, service or emotional support animals, or how the process of having a claim filed against you works, tune into this episode. Robert is an expert whose services we use, so I can vouch for his ability to provide value-packed, insightful information!
Here’s where you can find Robert:
Office phone: 210-782-9111
Show Notes
[02:51] - Robert introduces himself. He explains what he does and that he specializes in representing landlords.
[04:05] - Brad asks Robert to define what a service animal is, then talks about an incident in which he couldn’t get a straight answer.
[06:28] - Robert explains that people with service animals may ask for either reasonable accommodation or reasonable modification. He clarifies what the difference is.
[08:27] - What scams are Robert seeing from tenants these days, and how can property managers protect themselves from these scams? Robert answers, then talks about how and when to ask for substantiation of a disability.
[13:38] - Robert discusses determining whether a request for modification is or is not “reasonable,” offering a colleague’s case as an example.
[16:25] - Robert’s suggestion is to have a dialogue about accommodations in writing instead of orally if possible.
[18:00] - We hear Robert’s recommendations on how to push back when you suspect someone’s requests might not be reasonable or justified.
[21:01] - Robert responds to an example of Brad’s about someone bringing in a giant snake and claiming it’s their emotional support animal.
[22:28] - Cats are one of the better emotional support animals, Robert explains. Pot-bellied pigs and chickens are other examples of possible emotional support animals.
[26:41] - Robert talks about the steps of having a claim filed against you, and the options for what to do if your tenant files a discrimination lawsuit.
[29:50] - What kind of insurance covers these sorts of issues?
[32:20] - After a short break, we come back to discuss options for what to do when there’s a case against you.
[34:00] - Brad brings up his first-ever fair housing claim, which occurred a few months ago. Robert talks about how he would work through a case and make a response.
[39:50] - Is there a no-brainer documentation situation in which Robert would always approve a service animal?
[42:15] - Brad jokes that one should never rent to attorneys or realtors. He then brings up a recent case of a new attorney applying and suggesting lease changes.
[45:04] - Robert shares a story of his own about applying for a place to live when he was in law school.
[47:03] - Robert talks about the ability to post negative reviews, which he explains isn’t the same as defamation. He then talks about how the law in question applies to landlords, tenants, and property managers.
[49:45] - What is Robert’s advice for what you should do if you get a bad review online? He and Brad discuss options, and point out that it’s vital to manage your online reviews in today’s world.
[56:18] - How can listeners reach Robert?
Links and Resources:
Robert’s office phone: 210-782-9111
The Profitable Property Management Podcast with Jordan Muela
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re are also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Today’s show is also sponsored by Virtually Incredible who provides tenant screening services, call center services, and video production services to property managers. You can visit them at VirtuallyIncredible.com.
With hurricane season in full swing, I have a very timely interview for you. Today, I am talking to Pete Neubig and Steven Rozenberg from Empire Industries out of Houston. This interview is golden with lots of lessons learned on how to handle natural disasters. These lessons can apply to any property management company no matter where you are, and what natural disasters you may face.
Pete and Steve have both been on the show before and are old veterans when it comes to podcasting and talking about property management. They also feel as a company they have come out stronger. Today, they share how they managed 700 homes in the aftermath of Harvey. They share how they needed to act fast and be strategic with solving multiple problems. Then they share how they broke things down and created actionable items for each team member.
They share how they prepared the lines of communication in advance by creating one-way channels that could be used even during the storm and then organized their people into teams and groups to accomplish everything. They also remained helpful to everyone and shared communication through their channels while always remembering to put people first. They share their philosophies and strategic actions along with lessons learned through this catastrophic event.
Here’s where you can find Pete and Steve:
Empire Industries
Steve Rozenberg on LinkedIn
Empire Industries on Twitter
Empire Industries on Facebook
Show Notes
[02:31] Pete and Steve kick things off sharing how Houston is still hurting, but Empire as a company has grown through the experience.
[04:12] Pete shares how they managed to stay on top of things by having a plan and a great team.
[04:57] Empire manages 700 homes in the Houston area. That's 700 families and 700 potential owners.
[05:52] Steve shares how taking action and coming up with a strategic plan helped them to respond and break things down into actionable steps.
[08:35] They let owners and residents know how to get updates through their portal and Facebook to create a one-way line of communication.
[10:20] The first thing they did was make sure everyone on the team was okay, then they took stock of available resources.
[11:03] Everyone at the company was assigned an emergency job. They used conferences calls twice a day to create an action plan. They assigned project managers to attend the calls to cut down on communication time.
[13:29] They used a spreadsheet to keep track of each property. They walked their vacant units to make sure they were rent ready because of the Houston housing shortage.
[16:08] Steve utilized social media for communication. They wanted to let the owners know that their properties were alright. He did a Facebook Live video every day.
[17:30] Steve shared all of the information he found out from FEMA and other agencies and then became a one-stop shop for tenants, landlords, and everyone. They combined forces and became a social media point of contact.
[19:52] They also created a Hurricane Harvey landing page on their website that answers all kinds of emergency and hurricane questions.
[20:54] They also filmed a public service announcement to help people find information and properties.
[21:48] Using a voice over IP phone system. These phones aren't down like a flooded landline would be.
[23:25] What happens when a home gets flooded out. If the house is uninhabitable, the tenant can break the lease.
[24:31] They made a company policy that residents who have lost everything get their security deposit back.
[25:06] How property management is a people business at the end of the day.
[26:11] Helping tenants by getting repairs done right away.
[26:38] Using Facebook groups for communication with owners and tenants.
[27:30] Creating expectations to eliminate too many phone calls.
[28:29] It's important to create the job roles in advance before emergencies happen. Also, have a list of emergency vendors and contractors.
[29:31] Treat people well, value relationships, and be calm, structured and organized.
[30:17] Trusting your current vendors instead of onboarding new people who come into town for the disaster.
[30:57] They have had about 350 homes that have reported issues.
[32:32] They had a vendor who waded through water to light a pilot light and didn't charge for it. They also found a new house for a family that lost everything and they donated things to help the family.
[35:12] The best thing a property manager can do for the community is doing their job.
[36:28] How Pete ended up adopting a dog with a broken leg.
[37:54] They waived late fees this month and think their new leases will make up for lost rent from people who have damaged homes. They have estimated to collect about 90% of rent this month.
[40:33] Pete shares a story about a homeowner and a tenant who lost everything. The owner didn't have a lot of compassion and is no longer a client.
[42:48] Problems that happen when owners bypass the property managers, and how it's better to worry about people, not property.
Links and Resources:
Jean Storms Property Management Manual
Google Hangouts
Uber Conference
Facebook Live
Google Calendar
Citizen Home Solutions
NARPM
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
I know a lot of you have been curious about automating lock boxes and the tenant viewing process, so I’ve brought on some experts to talk about the subjects! Joining me today are James Barrett and Calvin Davis from Tenant Turner, a company I use myself and have been very satisfied with. James is the Head of Business Development at Tenant Turner, while Calvin is the Sales Director.
In our conversation today, James and Calvin will explain in detail what Tenant Turner does, how it can function in your business by providing solutions for some of the unaccompanied showing techniques you may want to use, and how they can save (and make) you money. If you’re convinced after listening to them, sign up for their services using the promo code “Brad” to get a goodie package!
James and Calvin will also talk in depth about providing self-access for prospective tenants, automating some scheduling activities, the nitty gritty of using automated lock boxes for viewings, and much more. This is a value-packed episode that will answer lots of questions and provide insight into the future of tenant showings, so listen in!
Here’s where you can find James and Calvin:
Show Notes
[02:24] - James and Calvin start the episode off by introducing themselves.
[03:16] - We hear the short version of what Tenant Turner can do for someone, and how it can save time.
[03:54] - Brad steps in to share his experiences, trials, and tribulations with various vendors he has worked with. He then mentions how he ended up with Tenant Turner.
[06:54] - We learn more about how the Tenant Turner process can work in any market, and that one of the company’s advantages is that it has in-house developers.
[08:47] - Brad shares the story of how Tenant Turner worked with him to meet his needs regarding pets.
[10:10] - Every market is a little bit different, but there are themes. Some markets that you might expect to be very different are in fact similar.
[11:12] - One of the huge benefits of Tenant Turner is repurposing the people you’ve hired, and automating more tasks to let employees accomplish more.
[12:36] - Brad spends some time digging into why these sorts of processes can save time and money for property managers.
[14:54] - What are some best practices tied into the things that Brad, James, and Calvin have been talking about? As part of the answer, we hear about the leasing line being an integrated component.
[16:26] - There are two critical things that help Tenant Turner and VirtuallyinCredible work together so well.
[17:15] - We learn about Tenant Turner’s impressive hours, which are a great selling point.
[19:19] - James and Calvin have been happy with the advanced marketing platform from FreeRentalSite.
[20:25] - We hear about the various ways available to let people into a property.
[21:22] - Brad brings up the process involved in a potential tenant viewing a home, and brings up the question of whether to get ID before allowing tenants to self-access the property.
[23:33] - Brad offers James and Calvin some feedback from his biggest investor, who mentioned that he would like to see a credit card being charged but refunded to the applicant after they leave feedback.
[25:38] - We move onto the next portion of the lifecycle of the leasing process, with the topic of lock-box best practices.
[26:23] - Tenant Turner needs to be used as an electronic handshake for a prospective applicant to meet an agent.
[28:49] - As a leasing agent, Brad would recommend getting in touch by text, email or phone before driving across town to meet a potential tenant.
[30:13] - We return to the topic of lock boxes, and hear James and Calvin’s thoughts on Codebox.
[31:52] - Calvin talks about how Tenant Turner and Codebox have worked to build solutions together.
[33:01] - Are there any other similar lock box solutions out there?
[34:12] - We move onto wireless and Bluetooth options. Brad thinks that this will become increasingly prevalent. He, James, and Calvin then talk about their predictions for when this will become the norm.
[36:53] - Do James and Calvin see this changing technology as more of a disruptor or an aide within the industry?
[39:57] - Calvin suggests that the best way to get in touch is to go to tenantturner.com. For the promo version, go to www.tenantturner.com/brad!
[40:47] - James talks about the benefits of ordering code boxes directly from Tenant Turner.
Links and Resources:
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
I have a particularly remarkable guest on the show for you today. Greg Doering is the Regional Vice President for NARPM in the Central Region, which has 10 chapters across more than a dozen states. He’s also the owner and founder of GDAA Property Management, located in the North Austin (specifically Round Rock) area.
Since Greg has been a NARPM member for around a decade, he knew the ins and outs of the organization even before he became Regional Vice President. If you’ve listened to this show before, you’ve probably heard about NARPM at least in passing, but this episode is your opportunity to learn about the remarkable organization in depth from this long-time member who has ascended its ranks!
Greg will talk about some of the ways to get involved with the leadership of NARPM, including sharing his own story. He also describes the benefits that can come from helping to lead NARPM (which is a volunteer rather than a paid position). Some of these benefits, as he’ll point out, aren’t limited to the organization’s leadership.
With that said, we don’t only talk about NARPM. Greg describes what it’s like to work with his brother Jeff, who joined the company recently. We clear up some misconceptions about virtual assistants. Greg describes some of the changes and innovations that he’s seen in the property management industry, and finishes things off with an inspirational message about why change is a good thing.
Here’s where you can find Greg:
Show Notes
[02:57] - Greg starts things off by introducing himself and telling listeners a bit about what he does.
[03:45] - Brad explains some of the reasons that he invited Greg onto the show.
[04:36] - Right now, the biggest challenge that Greg is facing with his company is staffing. He describes some of the specific difficulties.
[06:04] - What have Greg’s plans for growth been this year? He answers, then discusses how the company has transitioned into one in which people have specific tasks and roles, instead of doing everything.
[09:58] - Greg describes the single most important lesson that he learned during his company’s growth and transition period.
[11:01] - Brad takes a moment to make sure listeners understand the acronyms that Greg has been using.
[12:24] - What advice would Greg give someone working their way up through the ranks of NARPM?
[14:02] - Greg discusses how the auditing system works after you’ve submitted your packet and checklist.
[15:59] - What are some of the innovations that Greg has seen, or done himself, in the last six months or so?
[17:17] - Brad steps in to clarify some common misconceptions about virtual assistants.
[18:47] - Greg discusses the dynamic involved with his brother, Jeff, recently entering the business.
[21:12] - The reality of working with his brother is that they still enjoy each other’s company despite seeing each other at work and many weekends, Greg explains.
[22:46] - Greg talks us through his ascent through the ranks of NARPM, of which he’s been a member for around a decade.
[24:29] - Greg goes into more depth about the process of becoming a regional leader in NARPM.
[25:53] - We learn what Greg’s current role in NARPM entails, and how long the term lasts.
[27:05] - Greg discusses what he envisions as where he’s going and what he hopes to do by the end of his two-year term. He and Brad then talk about the rapid changes in the industry over the last few years.
[30:00] - Last year, Greg had less than 20% of the inventory condition forms returned, he reveals.
[31:08] - What are the benefits of being involved in the leadership of NARPM, since it’s a volunteer position?
[33:30] - Greg reveals that NARPM’s major events are about to go through some big changes, and offers some insight into the types of changes to expect.
[35:35] - The majority of the vendors that Greg uses regularly have all come from the NARPM trade show.
[36:14] - The industry is getting ready to change, Greg explains, and he’s excited because change creates opportunity.
Links and Resources:
Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
On the show today, I’m joined by Angela Gonzales and Erin Landis from Moxie Property Management out of Fort Worth (near the Dallas, Texas area). Erin and Angela started the company just a couple years ago, so it’s still in its infancy time-wise, but they’ve already accomplished some remarkable things. As they put it, the company actually operates in dog years!
One of the reasons I wanted to have Angela and Erin on the show is that they’re doing some different things that you might not have seen in other property management companies. They don’t hesitate to think outside the box, as you’ll hear in our conversation today. For example, part of Moxie involves doing consulting work for other companies and helping them manage their properties, meaning that they’re far more than just a strict property management company.
In addition to talking about their consulting services and how they seamlessly blend these with their own property management, Erin and Angela discuss topics such as how they’ve grown their company so quickly, how they got started, why they realized they don’t need a third partner, their roles in NARPM, and the tools they use to stay in communication with each other, their clients, and their tenants.
Here’s where you can find Angela and Erin:
Angela Gonzales on the Greater Fort Worth Association of REALTORS
Moxie Property Management on Facebook
Show Notes
[02:36] - Erin and Angela start things off by introducing themselves.
[03:06] - We hear about how Moxie has grown so large in such a relatively short time, with Angela explaining how she and Erin met and got started.
[06:52] - What were some of the challenges that Erin and Angela came upon when they decided to step out and doing everything themselves?
[08:06] - Erin is doing some coaching for AppFolio soon, partly because she has been using the software since 2009. Angela then talks about how difficult the business would be to run without Erin on the financial side.
[10:03] - Brad shifts to a tangent about something he learned on the NARPM listserv about full-month accounting. He, Angela, and Erin then discuss how this type of accounting works along with its pros and cons.
[14:16] - Angela discusses the consulting side of the business.
[16:15] - The places we’ve been hearing about are in outlier areas, we learn, with Angela describing what they do as a “if you build it, they will come” scenario.
[17:26] - We take a deeper dive into the consultancy side of Moxie, learning what exactly that entails and how that side functions.
[19:40] - Angela and Erin use Evernote, we learn. It’s also helpful for communicating with their clients.
[20:27] - We hear about the division of labor at Moxie.
[22:45] - Part of hiring really great people is that they have ambition above the position they’re hired at.
[24:04] - Erin explains more about the details of how their consultancy works, and the ways in which it was like entering into a marriage.
[25:51] - Brad dives into the topic of the service items offered by Moxie. We hear about what it takes to add a consulting aspect to your property management business.
[27:35] - Erin points out that a big part of what they do is cleaning up old accounting, which is something they could take nationwide.
[30:04] - A lot of what Erin does is just auditing what a company has done up until now, she explains.
[31:21] - Brad is developing an annual business health report.
[34:19] - It’s not so much that good members of NARPM are perfect so much as that many others do lots of things wrong, Brad points out.
[35:52] - If Angela and Erin could do everything all over again with Moxie, what would they do differently the second time around?
[39:08] - Erin is the treasurer of the greater Fort Worth area NARPM branch, and Angela is working with the organization on the state level. Erin and Angela then discuss work-life balance and the experience of having careers as women.
[42:32] - While Angela’s son is a teenager now, Erin’s family is younger. She describes what it’s like to work from home under these circumstances.
[44:30] - Brad talks about his “good idea fairy” concept, then shares a cool concept he has recently implemented with listeners.
[46:49] - Moxie has been using Rently for almost two years now, and have been finding that it results in better tenants overall.
[49:24] - We learn that Brad got rid of his dropbox when he moved to the new office.
[50:09] - Erin talks about how one of their older residents (who is over 80 years old) took some extra coaching to make electronic payments instead of dropping off a money order or other paper payment.
[52:01] - Brad discusses the role of virtual assistants and how it’s changing in the industry as time goes on.
[52:49] - Do Angela and Erin have any other “good idea fairies” that they want to share with the audience?
[54:56] - Moxie’s application fees are nonrefundable, but they are transferrable to other properties, we learn.
[56:38] - The mortgage industry took in 36% fewer applications for mortgages this year than last year, Brad reveals. This means that more people are going to be renting.
Links and Resources:
Angela Gonzales on the Greater Fort Worth Association of REALTORS
Moxie Property Management on Facebook
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
We’re also sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!
That description of the upcoming conference is a perfect introduction to today’s two guests, Alex Osenenko and Jordan Muela. Together, they represent the two companies coming together to put on the summit, with Alex coming from Fourandahalf and Jordan coming from Lead Simple.
Of course we’ll talk about the summit in depth, with Alex and Jordan going over some of the remarkable speakers who will be attending, talking about the venue, and explaining why the weather alone should be a persuasive reason to attend!
Before that, though, we talk about many other topics relevant to anyone in the property management industry. We start off with a discussion of LeadSimple and its value for property managers in terms of efficiency, then cover various recent and upcoming trends within the industry. We address fee maximization and discuss the fact that customers are increasingly happy to do their showings themselves. Tune in for all this and much more with these two influencers in the property management world!
Here’s where you can find Alex and Jordan:
Show Notes
[02:56] - Alex gives us a quick intro to who he is and what he does.
[05:23] - Brad chimes in to tell a quick story about his first attempts to implement LeadSimple, and his return to it later.
[06:02] - Jordan tells us about who he is and what he does, explaining that he’s the CEO of LeadSimple.
[06:59] - One of the things that Brad likes about LeadSimple is that it prompts you with a list, allowing his staff to work straight off that list every day.
[09:36] - We hear a reminder that the consumer has different criteria than we have as experts in the property management industry. We also get advice on what to do once someone requests the analysis that Brad has just been talking about.
[12:41] - Brad explains that the part of his website that talks about free market estimates shows the graphic that people are going to get, which improves his capture rate.
[15:30] - We learn about how inbound call tracking and texting can function within the process that Brad, Alex, and Jordan have been talking about.
[16:52] - Brad shifts us to different trends, bringing up the topic of fee maximization.
[18:07] - Alex has been thinking a lot about fee maximization lately, he reveals, and shares his thoughts and perspective on the topic.
[19:49] - How does Brad set his pricing? He answers, and then offers a tip to listeners about using a flat-fee, tiered pricing system instead of percentages.
[21:33] - Brad steers Alex and Jordan to talk about the conditioning of customer expectations in terms of not needing to talk to anybody and have privacy.
[25:33] - Does Brad know offhand how many states what he’s been describing about co-brokering is relevant for?
[26:32] - Alex points out that the one-star reviews that every property manager gets are from tenants who never got a showing.
[28:00] - Brad admits that a lot of property managers, including himself sometimes, are very hesitant to implement things.
[30:38] - You’re often competing against the status quo, Jordan explains.
[32:17] - Brad transitions to talking about PM Grow Summit, offering Alex the opportunity to explain why this is such a valuable event and resource for property managers.
[36:07] - We hear about Brad’s personal experience at last year’s PM Grow Summit, in terms of both having a great time and making valuable connections with people he still speaks with today.
[37:30] - Alex and Jordan spend a huge amount of time vetting and interviewing potential speakers for the summit.
[39:06] - We hear more about the personal development aspect of the summit.
[41:46] - The venue for the summit is the US Grant Hotel in sunny San Diego, which should be a pleasant relief in terms of temperature in January!
[43:40] - We learn about the impressive caliber of speakers who will be present at the summit, with Alex and Jordan listing a few of the most noteworthy speakers and talking about their qualifications and areas of expertise.
[53:13] - Where can listeners learn more about the PM Grow Summit? At pmgrowsummit.com for the upcoming event, or at 2017.pmgrowsummit.com for last year’s event.
Links and Resources:
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
My guest on this episode is the remarkable Dave Borden, who was nice enough to come to town and go over some information on marketing for property managers. He’s so full of information and great advice, though, that we decided to split the episode into two parts! This is part 2 of 2; part 1 aired last week.
This part is all about online best practices and industry trends. Dave and I dig deeply into how to do well online. We discuss what kind of domain name is ideal, as well as when you should (and, just as importantly, when you shouldn’t) use redirects to bring customers to your site. We also talk about content, with Dave giving great information on the minimum number of words you should have on certain pages and offering some suggestions for where to get ideas for what to write about.
Dave and I then move on to talking about the sometimes complicated relationship between property managers and owners. We discuss ways to handle the question of who’s in charge of deciding when to fix things and how much to spend on them. We also talk quite a bit about pricing models and attracting the right owners.
If you haven’t heard about Dave’s own product, Rent Screener. This is an absolutely invaluable tool for property managers, and I highly recommend you try it out if you aren’t already using it! Best of all, Dave is generously offering a 10% discount to listeners of this podcast. Tune in to learn how to get your discount!
Here’s where you can find Dave:
Show Notes
[02:24] - Dave begins by talking about domain names, explaining that many people don’t take certain important things into account when choosing one.
[04:31] - We hear some words of caution for people who are already doing well with an existing URL but are considering switching to a new domain.
[05:59] - Should you buy multiple other exact match domains and redirect them to your main domain? Dave says no, and explains why.
[08:16] - Brad brings up a story that Dave told him yesterday, so Dave recounts the story for the audience. He then draws out the lesson from this to explain how to best appear in search results.
[10:08] - Brad talks about diluting your brand, offering an example to illustrate what he means. Dave then offers his own advice on the topic.
[12:40] - We learn about windshield time, with Brad explaining how he reduces the need for his employees to drive across town to work for a couple minutes.
[14:03] - Dave talks about content, revealing the magic number of words to have on your property management page.
[17:12] - Brad suggests becoming a full-disclosure company on your site, then brings up the pricing model that he uses. He and Dave then discuss this before Dave returns to talking about ranking well in Google by having at least 2,500 words of content on their landing page.
[21:20] - Every conversation you have with an owner could be a blog post, Dave points out.
[22:00] - Brad points out that there’s a larger mindset in society that people want to have all their information upfront, tying this into his pricing system. He and Dave then talk about how your pricing brings in the type of owner you want.
[26:16] - Brad’s multiple property owner agreement is a great way to encourage people to buy another investment property Dave then points out that you may also be able to get a commission for helping them to buy this additional home.
[29:03] - Dave brings up something he’s seen property managers deal with: the question of who’s in charge (the property manager or the owner).
[32:02] - Brad brings up a side story that happened recently, then he and Dave further discuss the issue of making fixes to the property and when to consult the owner first.
[35:04] - Dave talks about his tenant screening product, which is called Rent Screener
[38:02] - Transunion has made a commitment to the tenant screening industry, Dave explains, then talks more about Transunion’s process and how to use its scores in screening tenants.
[40:44] - Brad is now pushing into an unaccompanied vacant home showing situation. Dave then elaborates on what Brad has been saying about this topic, explaining how much time it can save.
[45:47] - Dave talks about how to reach him and how to get a 10% discount on anything you order through his company.
[47:25] - Dave takes a moment to rave about how great his team is, and to emphasize how much he cares about doing right by his customers.
Links and Resources:
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
My guest on this episode is the remarkable Dave Borden, who was nice enough to come to town and go over some information on marketing for property managers. He’s so full of information and great advice, though, that we decided to split the episode into two parts! This is part 1 of 2; part 2 will be available next week.
This part is all about the must-haves of online marketing for property managers and property management companies. This is absolutely Dave’s area of expertise, as his company services a thousand management companies nationwide, covering a total of 300,000 to 400,000 units. His skill at what he does is revealed by his company’s strikingly low cancellation rate; they’ve only had 30 companies stop using their services.
In this part of our conversation, Dave spends some time discussing the broad strokes of a successful marketing strategy, including the various steps to take depending on what your goals are. For example, he recommends starting with a great website. If that doesn’t get you where you want to be, you can move on to a social media strategy. If that, too, doesn’t achieve enough success, the next step is a content marketing strategy with videos.
As you may have inferred from this, Dave is a proponent of taking a measured approach. This is reflected throughout the conversation in his deliberate, specific insight and advice. In short, if you’re interested in learning how to go about marketing online the right way, tune in to this episode and the one coming next week!
Here’s where you can find Dave:
Show Notes
[02:24] - Dave introduces himself briefly, explaining why he’s on the show. He then explains what his company does.
[05:00] - Brad explains where today’s conversation with Dave stems from. Dave then talks about the first question he asks companies who want to work with him, and talks about the importance of a good website.
[08:42] - We learn about the importance of being able to capture a lead in a pay-per-click campaign. Dave then lists a few places where you can create a website for free.
[10:42] - Dave lists the three elements that go into SEO: relevance, usage data, and domain authority.
[13:09] - Dave returns to the topic of establishing a goal, explaining how this relates to SEO and specifically usage data.
[16:09] - Brad takes a moment to dig into what Dave has been saying about video, emphasizing how important (and powerful) a video strategy can be.
[17:58] - We learn about using Facebook for marketing purposes as a property management company. This is part of the basic social media strategy that Dave recommends, and he walks listeners through some best practices for using Facebook successfully.
[21:56] - Brad draws out what Dave said a moment ago about putting homes on Facebook, and Dave points out that this advice is only good if you’re interactive with it.
[23:42] - You can buy likes on Facebook, Dave explains, or boost a post. Brad shares his own experience with doing this.
[25:48] - Dave reiterates that he’s here because Brad is the poster child for property management marketing.
[26:35] - We hear more about Dave’s advance marketing platform.
[28:26] - Brad adds his two cents, recommending the automated rental analysis Dave has been talking about to anyone (except people in his local area!). He explains more about how it works.
[30:14] - Dave talks us through the three parts of his process.
[33:13] - Brad and Dave talk about the possible discrepancies in automatic estimates, and why these can potentially be good things.
[34:34] - We hear the difference in number of properties that Brad signed up last year compared to this year, now that he’s using the product that Dave has been talking about.
[37:50] - Dave begins to offer some advice on the marketing strategy with video, then shifts to talking about companies that are successful. He then talks about the automated system in more depth.
[40:45] - We come back to the topic of videos, with Brad talking about the advanced marketing platform widget.
[41:46] - Dave discusses having a content strategy.
[42:36] - Brad offers a thought for videos involving having them automatically transcribed for viewers on Facebook with the sound off. He and Dave then discuss various strategies for videos and marketing.
[45:08] - Brad uses a service called Virtually Incredible; he explains here what they do for him. Dave then raves about the company.
[48:12] - If someone watches your home listing video all the way through, it gives you a lot of SEO credit for the view.
[49:49] - What you need to do depends on your goals and your market, Dave explains. This means your strategy will be very different depending on those two factors.
Links and Resources:
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Don’t miss this insightful and value-packed conversation with James Alderson from OnSight PROS, an inspection company based in Texas but with locations in 14 cities in 7 states. We use them for third-party inspections, which (as we discuss in this episode) offer neutrality and reassurance when it comes to issues such as security deposits.
James isn’t only the founder of OnSight PROS; he and his wife are also property managers in the San Antonio, Texas area. In fact, James started OnSight PROS to fill a need of his own within his property management company. It wasn’t originally meant to be a business; James just wanted to get inspections off his plate. The company’s services were so in-demand, though, that it has now blossomed across the country.
In this conversation, James and I talk about various aspects of inspections. We explore why they’re so important, and several reasons that it’s better to have them done by a third-party company than to do them in-house (which we temporarily tried before returning to using OnSight PROS). James and I go into a fair amount of detail about using OnSight PROS for renewals and periodic inspections, discussing why it’s so important to do these inspections properly.
Of course, we all want to know how much things cost, so we talk about that (and about how to defer these costs to the tenant or owner). We offer some advice and tips on what to do if you don’t yet have a branch of OnSight PROS near you. Finally, we also spend a few fun minutes discussing technology and how we anticipate it will impact the property inspection industry in the relatively near future.
Here’s where you can find James:
Show Notes
[02:07] - James gives us a quick intro into who he is and what he does, explaining how OnSight PROS got started.
[03:23] - Brad steps in for a moment to briefly explain exactly what OnSight PROS does. He then explains his company’s process as it relates to OnSight PROS. James then points out that they prefer vacant properties, or else set up appointments with tenants.
[06:22] - James explains how having a third party do the assessment offers neutrality and takes away the concern that the property owner or manager is trying to retain an unfair amount of the security deposit.
[07:41] - We move onto the topic of using pros inspections for renewals. Brad and James talk about the frequency of doing inspections. James also mentions some of the things to look for to see if someone has a pet on the property without it being in the lease agreement.
[12:15] - We transition to the topic of periodic inspections. James points out that the job of a property management is to protect owners from tenants. He and Brad talk about a few issues that may arise, including trampolines and smoke alarms.
[16:43] - Brad talks about code compliance, explaining the rules in Texas specifically.
[19:00] - James goes back to the topic of periodic inspections, sharing a story of why one particular company works with OnSight PROS.
[21:44] - We hear about what Brad calls “desktop inspections” and the importance of giving owners reassurance that you’ve actually done an inspection.
[22:40] - Brad shifts to discussing the move-out process. He explains exactly what his management company does in this regard, particularly as it relates to inspections.
[25:38] - James responds to Brad’s point about vendors, and describes what he does in his property management company.
[26:27] - We return from a quick break to talk about some of the costs involved in using OnSight PROS.
[29:45] - Brad talks about ways to defer the cost to owners and tenants rather than putting it all on the property management company.
[32:00] - Since OnSight PROS is only in 14 cities (in 7 states), many listeners may not have one operating in their area. What should listeners do if there isn’t one nearby?
[34:03] - We learn about Brad’s history with OnSight PROS, why his company temporarily did inspections in-house, and why they returned to using James’ company.
[36:58] - Does James like any of the inspection softwares that are currently on the market?
[39:06] - Brad asks James what sorts of dynamic changes are on the horizon and will change the world. As he answers, James points out that he wants to keep up with the times. He and Brad talk about technology such as drones and Roombas, and how these relate to future changes in inspections.
[43:17] - How can listeners get in touch with James?
Links and Resources:
Today’s Guest:
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
I’m delighted to bring you the brilliant, talented Ruby Rowan as today’s guest. I know Ruby well, because she’s a portfolio manager with my company here in San Antonio. She started with us as a leasing agent around three years ago, but we put her through real estate school, and now she’s one of our portfolio managers.
Lately, I’ve been getting a lot of questions about how our portfolio management system works. While I’ll contribute to the conversation, I thought the bulk of answering should go to someone who’s intimately familiar with the system from the inside out, since it’s what she does every day at work.
In this episode, Ruby will go into depth about how she manages 181 homes with our company. She’ll share the down and dirty of how things work, how we break up the division of labor here, how she’s compensated (and why being paid a percentage instead of straight salary is a great system), and how her work/life balance is maintained.
If you’ve ever wondered about how our portfolio management system works, or have considered implementing a similar system yourself, this is the episode for you! Tune in to to learn what works for us, where we’ve made mistakes, and what Ruby sees as the strengths of our system.
Here’s where you can find Ruby:
Show Notes
[02:59] - Brad introduces Ruby briefly and explains why she’s called a portfolio manager instead of a property manager.
[03:33] - Ruby discusses her background in real estate and property management, and explains how having been a military spouse has affected this.
[04:51] - We hear a bit about the differences in dealing with apartments versus single-family homes.
[06:40] - Ruby talks about her earliest days at Brad’s company, and Brad elaborates on the challenges of growing as a property management company.
[08:34] - Ruby started off with 110 homes. She explains how she addressed the new system with owners.
[09:58] - Brad shares the thought process behind the challenge of dividing homes among the four portfolio managers. He then discusses compensation for portfolio managers. Ruby then talks about some of the main benefits to the owners.
[13:34] - We return from a quick break to talk about what Brad’s company offers the owners, and how the portfolio managers are the one point of contact despite outsourcing certain things.
[15:52] - Ruby brings up the topic of pets, in that some owners absolutely don’t want them, and explains how she tends to handle this.
[17:00] - What tends to generate the most activity and questions from owners?
[18:01] - Brad describes the company’s 21-day leasing guarantee, and explains the various stipulations.
[19:52] - Ruby explains the next part of the process, involving checking statements to make sure everything is accurate. This takes about an hour and a half with her 181 homes.
[22:12] - We move on to hearing about the segmented part of maintenance. Ruby talks us through how the maintenance side of things works with her as the portfolio manager.
[25:58] - Ruby discusses her work schedule (and the fact that every day is different) and systems, sharing what helps her keep her daily flow manageable.
[28:05] - Brad brings us to the topic of business development. Ruby talks us through the transition from the business development side to her, the portfolio manager.
[29:27] - Brad shares his plan for Ruby as the company grows. Ruby explains that she agrees that the company will need to transition to a bigger system, talking about her workload last summer to illustrate why.
[30:54] - Ruby talks us through what she does when a tenant moves out. She and Brad explain the process, which involves a video walkthrough, in detail.
[33:39] - Brad talks more about the security deposit itemization. Ruby explains that some charges go to the owner, because they can’t charge a tenant for general wear and tear.
Links and Resources:
Today’s Guest:
Today’s show is sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!
Today’s episode is going to be a little bit different. Instead of sharing a conversation with another expert in property management, I want to give you some context to think about your business and its future in broader terms.
With that in mind, today’s guest is my beautiful, amazing 7-year-old daughter, Corah! She and I have been talking for some time now about doing a daddy-daughter episode, and we’re both thrilled that it’s finally happening.
In addition to sharing this facet of the business with my daughter from a young age, my goal with this episode is to get you thinking about things like legacy issues from a new perspective. Corah and I talk about the future in a way that may help you figure out how to have these conversations with your own children, as well as give you some insight into things you should be considering.
One topic I bring up is that the second generation in a business (meaning Corah, in this case) generally does well with the business, while the third generation more often squanders the wealth that the previous generations have created.
I’ve set up some requirements that Corah needs to meet before she becomes part of the business, which I’ll touch on in this episode. You’ll also hear about the importance of setting up a trust to avoid having your estate go to probate if the worst happens. We then discuss potential major disruptors to the property management industry.
Show Notes
[02:38] - Corah gets warmed up by talking about her favorite things to do.
[03:38] - Brad brings up the topic of legacy issues, talking with Corah about generational issues. Corah then reveals that in the future, she would love to do what her dad does and own the company (rather than being a dentist).
[04:54] - Brad discusses a couple who he recently spoke with in Florida who gave him some insight into working with their children. He then outlines some requirements for Corah before she can join the business.
[05:54] - We learn more about Brad’s background, including the fact that he started the business from scratch.
[06:38] - Brad shifts to the topic of having legal protections in place, explaining to Corah (and the audience) that he and his wife put everything into a trust several years ago. He recommends Matt Spahn as a trust attorney.
[10:35] - After a short break, Brad and Corah talk about the future, with Brad mentioning that the property management industry is still waiting for its big disruptor. He and Corah then talk about the importance of technology.
[12:06] - We circle back to the idea of major disruptors. Brad explains one possible option to Corah using the clear example of their upcoming vacation.
[12:58] - Brad asks Corah a big question: would she rather go on vacation to the same place every time, or to a new place each time? He then ties her answer into how the industry may be changing.
[14:26] - We hear about the potential role of drones in property management. Brad then talks about the possibility of cash becoming obsolete, with everything being done electronically.
[16:14] - Corah shares what she’s most excited about this summer: not having school!
Links and Resources:
Today’s Guest:
Today’s show is sponsored by the National Property Management Network, which provides insurance products and services such as tenant liability insurance to property managers.
I’m excited to share this interview with Marc Cunningham, who will talk about some of his incredible systems and products. I’ve been very impressed with what he’s putting together, and can’t wait for you to hear all about it and decide whether his products might be right for you.
Before digging into his products, though, you’ll get some background and insight into Marc himself (which will help explain why he’s so highly qualified to create these works). As he explains in the interview, he grew up in the world of property and real estate, and was dealing with various business aspects while still a child. This all came about because his father started Grace Management & Investment, so Marc had deep exposure from a young age.
Marc also reveals “the big secret in the property management world,” which is that ”everybody thinks they’re the only ones that don’t get it.” Wow! Just take a moment to let that sink in. If you’re feeling like you’re a little bit lost or unsure of the best ways to do things, it’s not because you’re somehow the least-knowledgeable person around… but rather because we all feel that way sometimes.
Of course, that isn’t to say that you should be content with where you are and stop striving to be better. There’s always room for improvement, and this is where Marc’s products come into play. I’ll let him describe them for you himself in this conversation, but take it from me that these incredible tools are a direct investment in your business that can help you achieve your goals.
Best of all, Marc is offering a generous discount for listeners: 10% off any of his products when you use the promo code “Brad”!
Here’s where you can find Marc:
Grace Management & Investment Products
Show Notes
[02:08] - Marc grew up in the property management and real estate world, he explains, because his father started Grace Management. He then explains the progression of the company, and what they do today.
[03:43] - Brad points out that Marc, being in Colorado, has a seasonal leasing market. Marc then clarifies that other factors steady out the overall flow.
[04:26] - We learn about Marc’s degree in real estate.
[05:13] - The main reason Brad wanted Marc on the show was to talk about his educational products (specifically systems manuals) and how they can benefit companies. Marc then explains some of the background of why he and his father shifted the style of the business.
[07:49] - Marc explains that the products were originally made for Grace Management rather than to sell.
[09:14] - Marc mentions a survey he heard recently about employee engagement, in which employees rated this comment most highly: “I know what is expected of me at the office.” Brad then dives into how personalities play into this.
[11:09] - Brad has his MPM candidacy with NARPM completed (FIND AND LINK THESE). This allows one to test for the CRMC designation (FIND AND LINK THIS), for which the outline is near what Marc’s products are. Marc and Brad then discuss this.
[13:27] - Marc goes back a step, explaining how he and his father started sharing their creations and that people started asking to buy the full versions long before it occurred to them to sell them.
[15:36] - The products come in Word format. Marc talks about how people usually use them.
[17:37] - Brad offers an example: a medium-sized company comes to Marc wanting to put all his systems in place. Marc then walks us through how this situation plays out, generally in one of two ways.
[19:58] - Did Marc go to a pro or consultant to get the systems manuals set up, or did he do them himself?
[21:44] - Marc talks us through the cost of the various packages that Grace Management offers, which range from $497 to over $3,000. The larger packages, he explains, offer one-on-one time with him.
[25:31] - Marc is still a property management company owner, he explains, and the systems manuals are a side note.
[25:28] - Does Marc have any success stories he can share?
[26:32] - Brad brings up another product of Marc’s addressing ways to make money. In response, Marc explains how he identified the need for that other product.
[28:54] - We hear about how effective this product was for one user, who was able to go on a trip to Vegas after implementing the first idea.
[30:14] - How did Marc decide how to price his various products?
[32:34] - Marc tells us where to find the products he’s been discussing. They’re available at propertymanagementsystem.org. He then talks a bit more about these products.
[34:08] - Marc makes a special offer for Property Management Mastermind Show listeners. Enter the promo code “Brad” to get 10% off Marc’s products!
[36:29] - We learn one of the reasons that Marc believes that systems are so important: they “dramastically” (a word he coins here) increase the value of your business.
Links and Resources:
Grace Management & Investment Products
National Property Management Network
National Association of Residential Property Managers (NARPM)
Amy Karns, who is intimately familiar with various aspects of property management thanks to having bought, sold, and started property management companies.
She got her introduction to property management in San Antonio, where she bought a company over the course of five years by purchasing 20% a year (while the previous owners played less and less of a role each year). Amy built that company up from 90 doors to 225 doors over the 10 years that she ran it.
Eventually, an offer from another company interested in buying hers got her interested in the possibility of selling. While the original offer wasn’t one that would work for her, she soon found the right buyer and sold her company, as she describes in some detail here.
After that, Amy did what we all dream about: moved to a new market and started from scratch using all the lessons she had learned and her vast, valuable previous experience. As she explains in our conversation, her goal is to manage 50 properties from home and make the same income as she did from 250 properties.
You’ll hear how she plans to do this, as well as how she has turned unaccompanied showing systems into a giant revenue generator. She talks about the incredible value in doing everything online, and how her current business lets her work from Punta Cana.
Here’s where you can find Amy:
Show Notes
[02:08] - Amy offers us a look into her background and history in property management. She explains how she acquired a company over a five-year period.
[03:43] - We hear in more detail how Amy found this five-year opportunity to take over the company.
[05:55] - Were there any control issues between the previous owners of the company and Amy during the transition period?
[07:24] - Amy ran that company for 10 years, growing the company from 90 doors to 225 doors over that period. She also discusses the company’s leanness.
[08:53] - What caused Amy to look at selling that company? She reveals that she hadn’t considered selling it until an offer came in. She then discusses the move from renting to buying her office space.
[13:05] - Amy explains the problem with the first offer she received, which was that the buying company wanted her to teach them to do property management. She then talks about the pricing strategy she used to set up the sale once she found the right buyer.
[16:08] - Once Amy had the right buyer lined up, how did they move forward? She and Brad then touch on non-compete agreements and exclusivity clauses.
[18:26] - Amy walks us through some of the terms of the purchase agreement she made when selling the company.
[21:33] - How did the closing work during Amy’s sale?
[24:03] - After the sale, Amy picked up and moved to a whole new market. She then reveals that if she could go anywhere, she would pick Phoenix or Colorado. She then talks us through how her move to Dallas worked out, and explains why she chose to stay in Texas.
[27:50] - Getting leads in a new market is very difficult, Amy reveals.
[28:53] - Amy discusses the difficulty of competing in Dallas as a new property management company.
[30:30] - We hear about Amy’s experience in going from having a team to being the one to do everything herself. She then shares her impressive goal.
[32:17] - Being small allows Amy to be selective about the properties and owners she takes on. She and Brad then discuss some of the factors involved in staying small.
[35:01] - It’s important to set up the expectation with clients that you’re going to do everything online, Amy explains.
{37:41] - Amy talks us through how she’s doing unassisted showings with two types of lock boxes. Brad then reiterates her point that you don’t need to meet every tenant any longer, and discusses the problems with doing showings 30 days before the current lease ends, as is currently standard practice.
[42:01] - Does Amy think she’s getting more for the homes based on the self-assisted showings?
[43:20] - Amy offers a last-minute suggestion: become a member of NARPM if you aren’t one already!
Links and Resources:
National Property Management Network
National Association of Residential Property Managers (NARPM)
Joining me for this episode is Jason Waggoner, the Vice President of Marketing at ACUTRAQ. In case you aren’t familiar with it, ACUTRAQ is an application screening company that covers various types of screening.
As a result of this work, Jason is full of deep and detailed knowledge on just about every aspect of the application and screening process, dealing with HUD, dealing with fair housing, and all other related aspects of the application cycle. In this conversation, he shares that knowledge and offers great insight into these topics and more.
An example of what Jason has to offer is his balanced perspective on how to handle negative factors on an application, such as a low credit score or a criminal history. In both cases, he advises a personal rather than a kneejerk approach. For example, a potentially ideal tenant may have a low credit score simply due to medical bills, and have a perfect track record with every other bill and rent. Similarly, someone may have a criminal history for a minor crime such as marijuana possession a decade ago, in which case that alone may not indicate anything about how they would be as a tenant today.
With that said, he’s well aware of the risk factors involved for landlords. He suggests being very detailed and open with your screening criteria for reasons that he explains in the episode. When it comes to adverse action letters, he offers great advice such as denying for credit delinquencies instead of credit score.
Many of these subjects have been touchy hot-topics in the NARPM community lately, so let’s take a listen and hear what Jason has to say!
Show Notes
[02:01] - Jason gives us an introduction to who he is and the company he works for, as well as the types of screenings the company is able to cover.
[04:22] - When you’re qualifying tenants, many people want to go by their gut feeling without understanding what they’re doing.
[05:05] - Brad offers a story related to what Jason has been saying. He explains that his director of leasing encountered a “property manager” who approves applicants depending on how they feel about them. Jason then explains when it really set in for him that your gut feeling isn’t a reliable standard.
[07:52] - Jason discusses the intricacies of the screening side of the application process. Hot topics include animals, felons, and decisions based on credit scores. He also emphasizes the importance of posting your screening criteria publicly so that unqualified applicants won’t waste their (or your) time.
[10:54] - Brad and Jason discuss the difficult process of declining applicants. Jason emphasizes the importance of making sure you’re doing everything by the book, because tenants know their rights and you can get in trouble if you don’t do things properly. He gives an example involving a service dog.
[14:59] - Brad points out that some DIY or home-based landlords forget why they hire management companies.
[15:33] - Jason goes into more detail about the adverse action letter.
[17:50] Brad brings up the topic of risk mitigation. Jason responds by discussing the necessity of digging deeper into a low credit score and giving people an opportunity. He and Brad then discuss how to do this.
[21:21] - We return to the topic of owners, who could be missing out on a great tenant because they denied someone based on a low credit score when they’re ideal in other ways.
[22:36] - Brad and Jason talk about another hot topic: felons. HUD is now saying that it’s important to look at the criminal history in more depth rather than just immediately reacting to it.
[25:15] - HUD is not trying to make criminals a protected class, Jason clarifies.
[26:16] - Jason returns from the pain point to the solution, which goes back to being clear about your intention to screen criminal history and saying “your criminal history may be cause for denial” upfront.
[28:15] - Brad brings up the business side of this, explaining briefly what ACUTRAQ is. Jason then talks about the popularity and benefits of outsourcing.
[31:58] - Is the application process integrated into a client’s potential website? After answering, Jason explains one of the things that sets ACUTRAQ apart from other companies, which is their personal touch.
[34:49] - Jason talks us through the services he goes through once an application comes in.
[38:09] - Jason offers an example of trying to establish someone’s criminal history when he or she may have had different names (due to marriages, nicknames, and so on).
[40:12] - We hear about some of what Jason is doing, including his involvement in the music scene and how the knowledge he got from that industry led to his creation of his music video, the Bad Tenant Blues.
[42:52] - Where can people find Jason? At info@acutraq.com or by going to the ACUTRAQ website.
Links and Resources:
If you’ve been a faithful listener of this show, you will already have heard of Pete Neubig of Empire Industries LLC, a property management company out of Houston, TX. Pete is partners with Steve Rozenberg, my guest on episode three of this podcast. In that episode, we went into great deal about satellite offices and marketing.
While Pete touches briefly on these topics, he spends more time on his areas of expertise. He’s the guy in the background who makes things run and ensures the systems at Empire Industries keep up with the growth.
Pete is also deeply knowledgeable about hiring and employee retention. He’s been using the framework of the DISC personality profile to ensure he hires the right people for the right roles, after realizing the reason he lost certain employees was because their personalities weren’t the right fit for their jobs. He’ll explain this in the interview, as well as offer insight into what personality types you should hire for certain roles within your own property management company.
We then take a deep dive into techniques for dealing with homes that have high days on market. He shares some tips and strategies for how to deal with a situation in which a home you’re trying to rent has high days on market and offers advice on how to get those rented. We cover, for example, the importance of keeping the owner in the loop, and of making the move-in process as simple and hassle-free as possible.
Show Notes
[02:18] - Pete starts things off by telling us that he comes from the investor side and needed to look for a management company himself at one point. He explains how this led to where he is today.
[03:55] - Brad gives listeners some background on Pete and his partner Steve Rosenberg. Brad then elaborates on their roles within the company.
[05:39] - Pete talks more about how the company handles the extreme growth that they’ve had.
[06:39] - The Property Management Mastermind Show was basically Brad and Pete chatting for the last couple years, Brad explains.
[07:19] - Pete brings up some challenges that may help listeners. One of his challenges is losing property managers, often from stress, so he’s been trying to figure out how to help them be stress-free.
[09:53] - Part of the challenge that Empire Industries had as a company was hiring a lot of inexperienced property managers. Pete then talks about the database he’s making for property managers within the company.
[11:16] - Pete discusses how he and Steve brought the concept of scripts in the sales world into the property management world.
[12:12] - Brad and Pete talk about one of Brad’s employees, “Rockstar” Ruby. Pete talks about his experience interviewing Ruby.
[14:16] - We hear more about what Pete has done in terms of opening multiple locations in Houston. They’ve opened six satellite offices at this point, in addition to the main office. Brad then talks about how this is important for showing up on Google.
[17:03] - Pete shares how important the internet has been for getting new leads, comparing it to agent referrals. He then talks about the challenge of keeping systems working with fast growth.
[19:25] - Brad brings up what Pete and Steve are doing in San Antonio today.
[22:00] - Pete mentions the last seminar he went to, which was the 10x Growth Con by Grant Cardone. Brad and Pete then talk about the products they’re developing, as well as why you should send a seven-page, heartfelt letter instead of a one-page letter.
[25:29] - When Pete does his marketing, he makes sure to hit each part of the DISC personality profile to appeal to everybody, not just one personality type.
[26:28] - Pete goes into more depth about the DISC personality profile, and explains how he has applied it to hiring managers.
[28:47] - Pete’s partner Steve is a very high I on the DISC profile, whereas Pete is a DC. Pete describes how this impacts their communication and interactions. He then talks about why a couple of CS portfolio managers have recently quit, and explains why they now hire CDs for that role.
[31:29] - Pete talks about the role of the DISC profile in his hiring process. He also offers suggestions for which personality type to hire for various roles.
[34:35] - We learn about Pete’s strategies for ensuring that days on market for his rentals aren’t getting too high.
[38:05] - Brad offers some techniques he’s heard of, including offering free TVs. Their internal strategy is to send owners a Monday morning update each week. He then dives into another of their strategies: getting more into the cash flow analysis.
[41:57] - Another strategy Brad uses is pointing out to owners how much they lose every month their property is vacant because they’re unwilling to lower the rent.
[42:46] - Pete talks about the strategy of lowering the entry point of how much a renter needs to bring in (for example, by offering two weeks free on the first month’s rent).
[44:07] - Pete explains how much of a detriment red tape can be when you’re renting out a house.
Links and Resources:
National Property Management Network
Steve Rozenberg on the Property Management Mastermind podcast
Last week, I had a great conversation with Todd Breen, one of my cofounders at the National Property Management Network. This week, I’m bringing you a conversation with another of the cofounders, Dave Holt. One of the benefits of doing this is that I know these guys well and can personally vouch for their expertise in their niches.
In addition to his role at the National Property Management Network, Dave is the owner of a property management company in Minneapolis, Minnesota. He’s been involved in the property management industry for around 20 years and is a past NARPM president
In this episode, Dave will talk in great detail about investments. He shares his tips and strategies for how he does his own investments, and shares the techniques he uses to find and buy investment properties. He also explains that when you manage single-family homes, you have some unique advantages when it comes to investing in them.
I hope you enjoy and learn a lot from this episode, which we recorded on location in Las Vegas at the NARPM Broker/Owner Conference.
Show Notes
[02:39] - Dave’s claim to fame and niche of expertise is investing for property managers. He touches on the benefits of being a property manager when you get involved in investing.
[03:34] - Dave shares how long he’s been working in the industry, and he and Brad discuss the cycles of real estate. Dave then talks about investing and property management in relation to recessions.
[05:27] - We hear a bit about where Dave tends to pick up his properties.
[07:01] - Brad talks about the “where” of getting leads. He discusses off-market chasing, explaining what the term means. Dave then talks about where he gets his leads.
[10:00] - Dave and Brad walk us through a scenario in which an owner wants to cut and run.
[10:53] - Brad and Dave talk specific numbers to illustrate what they’ve been discussing. They reveal that 15% off the potential list price is a more realistic number for what the seller might actually receive, and therefore is a fair offer for the property. Dave also clarifies what the MAO (maximum allowable offer) is.
[18:01] - Another factor to take into account is profit, Dave explains. He suggests not using appreciation in your formula.
[20:12] - The key to this formula is that there needs to be no lien on the property that will overshadow the calculations, Brad explains. Dave then gives an example of a time when he bought an underwater property.
[24:10] - How much did Dave make on flipping the house he just described?
[24:53] - Dave presents another scenario, this time one that doesn’t involve flipping. Buying and holding is a great strategy for property managers, he explains.
[27:10] - We learn how Dave explains to sellers that he needs to take over their mortgage payments. He then talks about some ways to do this, and he and Dave discuss due-on-sale clauses.
[29:28] - Brad talks us through some of the things he’s done with taking over loans. Dave then shares his method.
[31:55] - Brad explains that he’s using a series LLC for his properties, and shares the reasons he chose to go this route. Dave responds by talking about risk mitigation and exploring other options.
[35:11] - The important part of these strategies is the separation between personal and business finances, Dave explains. He and Brad then discuss owner financing deals.
[39:38] - Dave takes us through a few other examples and options. In the process, he talks about master leasing, and recommends looking up David Tilney to learn more about it.
[42:13] - Brad brings up depreciation, and he and Dave spend a moment discussing its importance.
[44:57] - What recommendations would Dave give someone on where to start? Some recommendations are Lou Brown (in Atlanta) and the BiggerPockets site and podcast.
[47:05] - Dave gives his final advice to property managers about how to start investing.
Links and Resources:
National Property Management Network
NARPM Broker/Owner Conference.
As you may know, I’m one of the founders of the National Property Management Network. Todd Breen, today’s guest, is another. Thanks to this close working experience with him, I’m deeply familiar with his expertise in the property management industry, and am glad to have him on the show to share that expertise with you! We’re actually recording this episode on location in Las Vegas at the NARPM Broker/Owner Conference.
Todd has been the owner of a property management company for over 30 years, but he has been involved in the industry from an early age. His dad was a real estate broker, so he began his unofficial training while working in various capacities for his father from the time he was young. Today, Todd is the owner of Virtually Incredible.
In this interview, Todd will talk about outsourcing and why it’s vital to keeping your rates competitive and being able to scale effectively. He also shares brilliant (and sometimes counterintuitive) advice, experiences, and techniques. For example, he explains how he actually increased his income when he reduced his doors from 300 to 140 in 1994.
Show Notes
[02:25] - Todd turns the standard script on its head by plugging Brad instead of letting Brad plug him. He and Brad then talk about the cost of putting things off instead of doing them right now.
[03:40] - Todd takes us back to his beginnings in real estate and property management. He also shares the problem with thinking that any money is good money.
[06:29] - We learn how Todd’s income actually increased when he reduced his total number of doors in half.
[07:16] - Todd explains how he handled reducing his number of doors, mentioning his book The Manager’s Manual.
[10:50] - Virtually Incredible focuses on three main tasks, Todd explains. He describes his shift from working in his business to working on it, and talks about how SEO factored into this. As part of this story, we learn how he met his wife.
[15:04] - Brad talks about his choice to make videos when YouTube came out.
[16:09] - Todd talks more about what Virtually Incredible does, and what he expects it to do in the future.
[18:24] - Brad jumps in for a moment to elaborate on what Todd has been saying about verification.
[20:12] - We hear about a secret shopping campaign that Virtually Incredible performs every so often to evaluate management companies in a specific geographic area. He then explains how having people answering phones 85 hours a week dramatically reduced his vacancy list and days on market.
[22:53] - The property management has largely ignored the consumer experience for too long, Todd says, then explains what he means.
[26:46] - Todd and Brad talk about DocuSign briefly, then move on to discuss the preference of today’s tenants to text rather than come in and talk face-to-face. At least 75% of people choose to pay a convenience fee for lockbox entry than to come into the office to get the key, Brad reveals.
[28:46] - The checklist Todd’s company uses for the leasing cycle has 72 steps.
[31:25] - Todd discusses outsourcing, and explains why many property management companies tend to stagnate at a certain number of doors.
[32:28] - We hear Todd’s thoughts on where he sees Virtually Incredible going in the future.
[34:13] - Brad talks about top-down pressure and capped out (or falling) management fees.
[35:53] - Todd offers a story about his grandfather, a pharmacist, to illustrate the risk of thinking you’re irreplaceable.
[38:24] - Brad and Todd move on to talking about their venture together, National Property Management Network.
[40:12] - Todd shares his closing thoughts for the interview, expressing his excitement at seeing people coming up in the industry. He then shares his email address to make it easy to stay in touch.
Links and Resources:
In this episode, we hear from Justin Bajema, a property management company owner from Michigan who recently moved to Texas. In this powerful interview, he talks not only about property management, but also his experiences in the Marine Corps.
In 2003, Justin was coming back from Iraq and got a care package from his aunt and uncle. Inside was a copy of Rich Dad, Poor Dad. From that book, he got the real estate bug, and got involved in the industry when he got out of the army in 2005.
In the process of learning about the industry, Justin’s wife actually went to work for a competitor (where she was open about their interest in getting into property management). From there, they transitioned into owning single-family homes. After finding out about the National Association of Residential Property Managers (NARPM), they set up their own chapter.
After learning about Justin’s background in property management, we’ll explore how his experiences in the Marine Corps contributed to what he’s doing today. He’s deeply involved with an organization called Warriors Heart, which helps members of the “military class” (including law enforcement and first responders as well) heal. We talk an important way in which property managers can contribute to this vital and life-changing program.
Show Notes
[02:09] - Justin talks about how he got into property management.
[04:00] - We hear more about Justin’s choice to start a property management company. He also talks about conferences in general, and the National Association of Residential Property Managers (NARPM) specifically.
[07:19] - Justin discusses owning their company from a distance. He talks about Michael Gerber’s book The E Myth. He then explains that he hated managing people, so he had to clarify what he did (and didn’t) want from a company.
[10:52] - What were some of the keys that allowed Justin to break away from being in the office on a regular basis? He and Brad then discuss employees in terms of hiring decisions and necessary roles, and talk about outsourcing bookkeeping.
[15:22] - Justin recently got rid of his in-house accounting, he reveals, in response to Brad’s advice about outsourcing certain services.
[18:35] - Justin talks about going completely electronic with all of their accounts payable. This is both more convenient and less of a security risk.
[20:11] - We hear about Justin’s choices in software and banking.
[22:32] - Brad takes a moment to tell the story of how he and Justin met.
[23:33] - Justin went into the Marine Corps in May of 2001. 9/11 happened during his training. He served two tours in Iraq, and shares some of his experiences there.
[29:22] - We learn why Justin offered this information about his time in the military. He explains that a deep part of him still feels the need to take care of the guys in the military.
[32:03] - Justin talks about charities for veterans, and recommends going to an organization like Charity Navigator to assess a charity’s financials before donating to it.
[35:15] - We hear more about Justin’s move to Texas and his partnership with Warriors Heart. He then talks more about the program, what it does, and why it’s so vital.
[27:47] - There are two requirements for applicants to get into the program: PTSD and a chemical dependency. After discussing this, Justin explains in more depth why this program in particular was necessary, related to the story of what he saw happening to one of his close friends.
[40:26] - Justin touches on the possibility of the program expanding into more locations.
[40:55] - Brad and Justin came up with an idea for supporting the program through a referral system, which they discuss here.
[43:11] - Justin offers an invitation to visit the Warriors Heart property and program in San Antonio.
[45:32] - The program isn’t just for military, but rather for the “military class,” as Justin puts it. In addition to military, this also includes law enforcement and first responders.
[47:35] - What are Justin’s long-term goals for his involvement with Warriors Heart? In his answer, Justin explains the cost of the program, and where financial contributions go.
[49:14] - Justin lists ways to get in touch with him and learn more about the foundation. He also expresses that his biggest goal is awareness. He then invites listeners to email him directly at Justin@warriorsheart.com.
Links and Resources:
National Association of Residential Property Managers (NARPM)
First, a quick note: today’s show is sponsored by the National Property Management Network, which provides insurance products and services to property managers.
Today, I’m joined by one of my clients, Mark Clayton. He’s a successful long-term single-family home investor who will teach us about investing and working with property management. Best of all, he’s a landlord with a heart. That is, he isn’t in the real estate game just to make money, but also to make his tenants happy.
Before he got into property investing, Mark was the CEO of several hospitals. As a hospital administrator, he had to move from town to town relatively often. This led indirectly to his involvement in property management, as he bought various homes during this process. Once Mark got up to three homes, he started looking into property management and we began working together.
In this conversation, Mark talks about why he got into the single-family home game, explaining that these homes diversify him from a risk standpoint. If you own multi-family properties instead, a single issue or problem (such as a fire) could impact much more of your overall investment.
We’ll also talk about Mark’s financing techniques, why depreciation is a good thing, what Mark looks for when deciding on whether to invest in a particular property, a valuable tool Mark uses for establishing metrics, and finally, his end game and ultimate goal for his business.
Show Notes
[02:09] - Mark starts us off by talking about his background, and how this background led him into property management.
[03:50] - We learn more about how Mark got into single-family home ownership.
[08:55] - Why did Mark choose to go into single-family homes? In his answer, he explains that he asks himself whether he can see his mother living there as part of what he looks for.
[10:48] - Mark elaborates on how important it is to him to make sure his tenants are happy. He then gives an example of doing a repair right the first time around.
[13:48] - Mark talks us through financing, especially for his early properties.
[15:05] - We hear more about the nuts and bolts of Mark’s process, including his views on repairs and renovations.
[17:58] - The first three homes Mark bought, before meeting Brad, weren’t bought at a discount. He then talks more about these properties.
[21:19] - Brad points out that some homes may cash flow well, while others don’t, creating an averaging effect. Mark elaborates on this, and touches on his portfolio pruning process. He also describes the experience of working with A+ Federal Credit Union.
[24:58] - Mark talks more about the benefits of working with the credit union. He and Brad then talk about the challenges of moving beyond 10 single-family homes. Mark then recommends not giving up your steady full-time job before you transition toward a commercial lender.
[29:52] - Having professional property management in place was a big part of getting commercial loans, Mark explains.
[30:53] - Brad talks about the necessity of renting a home quickly, even if that means you have to drop the price. Mark then moves on to talking about why he finds Texas a good place to invest, and suggests being “regionally agnostic” to those in less ideal locations.
[34:53] - We hear about some methods that allow people to view homes from a distance.
[35:22] - Brad talks about a story of a home Mark bought in Georgetown. Mark doesn’t remember this particular home offhand, but talks about learning from his mistakes.
[38:15] - Mark talks about the tool he uses for metrics: Property Tracker. He talks in depth about how he uses this program, and also explains what he looks for when considering a new property.
[41:46] - Mark explains why depreciation can be a great thing.
[44:07] - What is Mark’s end game? That is, does he want to build up the business and sell it, or nurse the cash flow with no end in sight?
[45:58] - Mark ends the episode by expressing appreciation for Brad and his company, going into detail about what makes Brad and his team stand out.
Links and Resources:
My guest on this episode, Darren Hunter, is an expert in fee maximization. Just as importantly, as you’ll hear him describe in great detail, he understands the mindset challenges that need to be overcome to effectively implement fee maximization. For much of this conversation, we go behind talking about that implementation into the mindset of the company owner and staff members.
Darren started as a property manager in 1989 in Adelaide, South Australia. He went on to become a state property manager with a well-known Australian real estate brand, for which he impressively managed 28 other property managers over 18 offices spread over a third of the country.
For the last 11 years, Darren has been a full-time professional property management trainer and consultant. He runs the PM Power Nuts & Bolts Webinar Series, which addresses some of the topics we’ll cover in this episode along with many others.
Much of our focus will be on that question of mindset, which I mentioned at the beginning of this introduction. Darren, we learn, struggled for a couple years because of his own low self-esteem and poor confidence. From there, he learned about the law of the fee lid, which says that your mindset and level of belief determines your fees, and you cannot do any better than what you believe you’re worth.
It’s natural to be hesitant about raising fees over fear that you might lose business. In this episode, Darren also goes into important depth about why losing some business through fee maximization is actually a good thing, and he and I use several examples to illustrate this point.
You can find Darren here:
By email at Darren@darrenhunter.com
Show Notes
[01:59] - Darren gives us a glimpse into his background in real estate. He then shares two stories about what happened when he raised fees. Despite a couple of objections, he reveals, the profit margin doubled.
[08:44] - Brad and Darren discuss fee increases, and the lesson you can learn from this: “Would you lose $10 to make $10,000?” Darren then talks about the “autopsy” he does of lost business after fee increases.
[10:24] - Brad would rather lose an owner than a staff member, he says, and gives an example of what he means.
[11:31] - We hear what Darren does in terms of changing people’s mindsets. He talks about the law of the fee lid. He and Brad then discuss justification, or points of difference, as well as discounters and pricing structures.
[16:23] - Darren elaborates on what Brad has been saying about giving something of minimal value rather than discounting the management fee.
[19:13] - We learn more about the mindset in Australia, New Zealand, and the United States. Darren then uses Texas’ gun laws to illustrate a point about Australian culture. He then gives examples of tenant protection laws.
[25:30] - Darren digs deeper into the mindset questions he’s been talking about. He also talks about why the majority of owners will stay through a fee increase, which has to do with peace of mind.
[30:14] - We hear more about peace of mind among owners, and how that affects whether to raise fees.
[30:59] - There are five types of clients you shouldn’t increase fees with, which Darren lists here. He then gives an example of justifying a new fee.
[37:34] - Darren offers another story about a company he’s dealing with, this time in Oregon.
[39:58] - Darren talks more about his current time in the United States, including where he’s going next.
[42:27] - We learn more about Darren’s services. He suggests going to his website, and discusses the webinar series he offers: PM Power Nuts & Bolts Webinar Series. He also mentions his online store and his knowledge library.
[45:12] - Brad talks about having zero tolerance for not paying rent on time, and discusses how American fair housing laws apply to this. Darren then responds by sharing his stance on zero tolerance.
Links and Resources:
By email at Darren@darrenhunter.com