I love offering listeners fantastic benefits, such as some great discounts for products, with new offers coming all the time! You can see a complete list at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.
One more announcement before we get started! Our newest product at Property Management Mastermind is the Business Development Toolkit. In 2017, RentWerx organically grew by over 360 homes. In 2018, we’re on pace to grow another 500 homes. And best of all, we’ve done all of this without going out to meet the people and earn the business one door at a time. Tune in to learn more, or check out the toolkit online! If you aren’t completely satisfied with the product, we’ll give you a 100% rebate.
If you’ve listened to this podcast before, you’ve probably heard of Marc Cunningham. He’s a frequent speaker at NARPM conferences, who also travels the country a lot speaking about his property management systems. In today’s episode, I’m delighted to have him as my guest again! We’ll be talking about growth and ancillary business services, such as fee-maxing.
Marc has a real estate property management company in Denver that his dad started in 1978. He’s never wanted to have one of the biggest companies, he explains in our conversation, but rather to be one of the best. Growth comes as a result of what you do.
As Marc will explain today, he believes that the management fee pretty much pays the bills. In addition, you need to have ancillary business services. While this is a common strategy in other industries, it hasn’t yet become as popular as it should be in the property management world. Marc explains how we can bring this idea into the property management space.
You’ll also learn that in the commercial world, it’s standard practice to back-charge everything. This is everything from the cost of stamps to the cost of mileage or gas for visiting the property. Marc shares his insights into how this perspective can be applied to the residential property management world. Similarly, the multi-family world runs businesses with fees and services that aren’t yet common across the property management industry, and that can add valuable additional sources of revenue.
We’ll talk about turning maintenance into a revenue-generating source, and how much of a difference it makes. Marc and I will also dig into fees that you can profit from, such as fees for adding or removing people to the lease, an early-termination flat-fee option, and a monthly rent processing fee. Tune in for information on these and many other strategies you can use to increase your revenue streams within your property management business.
Here’s where you can find Marc:
Grace Property Management & Real Estate
Show Notes
[02:06] - Brad introduces today’s guest, Marc Cunningham.
[03:37] - Marc talks a bit about himself, sharing his background in property management as well as the current status of his company.
[06:44] - It’s hard for a lot of property management companies to achieve profitability, Marc points out, and being good at property management doesn’t necessarily mean you’re good at making money.
[08:38] - Marc touches on some mindset points around the topics he’s been discussing.
[11:47] - Brad adds in a couple points to what Marc has been saying, talking about a podcast he listened to lately.
[14:05] - We learn that Marc does a fair amount of commercial property management, and talks about one of the biggest eye-openers was for him.
[16:08] - Marc flips things around and asks Brad a question: how does maintenance play out for Brad?
[18:22] - We hear about some of the cool ideas for fees and ancillary business services that Marc has seen, as well as the role of sales.
[20:51] - Brad digs into his Investor Pocket Listings Program and explains how it relates to what Marc has been talking about.
[26:07] - Marc talks about compensation for the process of removing or adding people from leases.
[29:49] - One thing that the multi-family industry has brought on lately is a monthly rent processing fee.
[32:06] - Brad shares another strategy and recommendation, then Marc talks about the opportunities involving pets.
[36:54] - Marc points out that it’s important to disclose anything you put in place in your management agreements.
[39:12] - We learn about the upcoming one-day conference that Marc will put on in late August in Denver, Colorado.
[44:20] - Marc talks about the training product he offers on ancillary business services.
Links and Resources:
(619) 988-6708 (Allison DiSarro from Seacoast Commerce Bank)
Grace Property Management & Real Estate
Investor Pocket Listings Program
Ancillary Business Services - 20 New Income Streams for your PM Business by Marc Cunningham