How Did You Secure Your First Rental?

Question

Aloha BP family,

I was curious if people could share on how they secured their first rental to manage? What were some strategies you used to market your services? How does your services differ from "the other" property management company? I pose these questions because I would like to eventually manage a few rental units.

Thanks,

Ryan O.

Douglas Larson · Answer

@Ryan O. Aloha Ryan, I only manage my own investment homes. I'm not an agent and have never managed other peoples' properties. I never had a manager on Maui when I lived and invested there. I had 5 rentals there and advertised in the Maui Bulletin, Craigslist and word of mouth. I live in Utah now and have tried out property managers but it always seems like they have a good initial message but never back it up with performance. To get good tenants: I start with nice properties. I screen tenants with credit checks, references and try to visit their current home. To keep good tenants: I respond quickly to problems and repairs. I tell them I appreciate good tenants. To reduce late payments and other problems: I spell out all lease terms up front by going over the contract line by line. I always follow through promptly with penalties and late fees.

Douglas Larson · Answer

I think I was a good and fair landlord. I always had good tenants. My properties were a townhome in Kihei, 3 SFRs in Pukalani and a home in Kula. I sold the last one I owned in 2005 but one day I hope to get back there. In the mean-time, Utah has been treating me well. Hope you have fun in your ventures and Make Your Own Luck!

Account Closed · Answer

@George Paiva , No I do not currently manage any properties. I'm focused on sales, but I would like to learn the property management side. The company I work for does have guidelines for property management, but I was looking for ways to secure rentals. I have basic knowledge of construction. However, our company does have a team of maintenance people we use. With that being said, if something were to go wrong, I know just enough on what repair person to call. -------------- @Douglas Larson Thank you for another insightful response. Where did you live on Maui? I have family in the Kihei area. Not to tangent, but you must have some nice investment properties on Maui. As you know, there isn't anything "cheap" on that island hah! Also, how were you able to manage your own properties? Unless it's owner occupied, isn't it the state law that one must use a property manager? Regardless of that, it sounds like you provided some top-notch service.

George Paiva · Answer

As @Douglas Larson mentioned you need to setup some value propositions. Do you currently own and manage properties today? That's usually a selling point as others mentioned PMs or RE agents don't care so much about the property. Are you somewhat skilled in construction? I would highlight that as well. Not that you would want to do the work but to understand and convey the workorders, work with contractors, etc... And of course how you can work with tenants to ensure prompt payments and low vacancies...

Michele Fischer · Answer

I agree with Douglas' comments. I see PM managed properties sit on Craigslist for weeks, I can fill my places in days, so how can you hustle to get them rented and cash flowing...

Account Closed · Answer

Thank you, Douglas! If it's not too personal, could you share how your services differs?

Douglas Larson · Answer

Like many investors, I have mostly been disappointed with property managers. I manage all but one of my properties now because nobody cares as much about my rental income as much as I do. If you can somehow make that your USP (unique selling proposition) and back it up with bullet points on how you will treat each property like your own there will be property owners who will certainly listen! For instance: How will you reduce repair and maintenence costs? How will you improve tenant screening? How will you decrease vacancy? How will you respond quickly to renter concerns? How will you ensure prompt payments? Hope that helps. Have fun and Make Your Own Luck!

Account Closed · Answer

Hi Joe. Great point. I do have sales listings, but I don't manage any properties. Any suggestions? However, I have assisted our company's property manager with some minor tasks.

Joe Delia · Answer

I'd talk to them about your experience or training in managing rentals.

Account Closed · Answer

Hi Billy. Thank you for your response. Yup, I am licensed. I'm just looking for different strategies on how I can secure property management listings.