If you could start a property management co. from scratch…

[Courtney McCall]

Just started a new RE company geared towards managing real estate investments for others. I’ve been a licensed agent for 8+ years and have managed rentals here and there on a smaller scale but now fully prepared to build a business out of it. 

My question is: From a landlord’s perspective, what would you want to see in a modern model of a property management company? 

I’m creating policies and procedures now and I’m on a quest to find the things that landlords don’t seem to appreciate from other existing property management companies, so that I can build being different into mine. The idea is to truly be an INVESTMENT manager instead of just a half assed “property manager” collecting rent. I want to get involved in the plans for the future, the financial goals of the owner, protecting the longevity and condition of the properties, maximizing income potential while also treating tenants like paying customers with fairness, care and respect. Things I don’t see enough of in other management companies.

What’s important to you as a real estate investor when it comes to a manager? 

What things have you wished you could change about other companies? 

What would you tell someone starting a property management company from scratch in 2023 to do, or not to do? 

ANY responses that help me refine my vision and learn different perspectives are appreciated beyond measure. 

[Richard F.]

Aloha,

Over the years I have worked with a pretty wide variety of Owners, large and small. Sadly, in spite of quite a few comments on this forum, many are clueless with regard to understanding or evaluating the numbers; and rarely take the time to look at monthly financial reports beyond what their Net Rental payment is. Their idea of managing their investment is "not spending any money today". Owners come primarily in two flavors...the Micromanagers, that know more than you; and those that prefer being oblivious and not bothered with anything but the most significant incidents.

What I have focused on is developing solid systems and processes in all operations with the goal of prevention, rather than constant corrections. Do the right things right. If you are able to build an in-house maintenance team, having a useful shop and stockroom can save you/your clients a great deal in "road time" and other expenses. HD for example has a program where they will set up shelving, provide labeled/bar-coded bins, stock specific items that you choose, and check / restock to specified levels periodically. There is a price discount, and your sales rep will inform you of "specials" on products you may be interested in from time to time. I believe ACE and others have similar programs. It is a great way to maintain consistency and have product instantly available. To those naysayers that are calling out "conflict of interest" and "huge markups", it is simple enough to offer your maintenance services as an opt-in choice. Build a portfolio of routine service call tasks and light remodels with actual costs that your Clients can compare to outside vendor's similar work.