Can you advertise that you are you management properties in a mailer?

Question

I know this sounds like a silly question, but I am looking for both management opportunities and buying opportunities and wanted to mention both in a mailing that is going out to apartment owners in a specific area.

My question is: Can I market management services, especially if there is a strong possibility a management company is already in place?   I don't want to accidently jeopardize my brokers license by unfairly competing etc.  This is in the state of Minnesota.

Any feedback is appreciated.

Bill Gulley · Answer

Your Real Estate Broker's license? Yes, you can advertise, you can do mailers to all property owners as a mass mailing. At the bottom in the fine print, you may add something like:

This is a public advertisement and is not intended to solicit business from any party presently represented by any real estate licensee.

Now, knowingly targeting property owners known to be represented is unethical and may be a violation of licensing laws, just as trying to get a listing from someone who has a listing on the MLS.

You can contact owners, just don't solicit that business, you can ask when that agency relationship is to expire.

It's a fine line to walk, other brokers may see your efforts as trying to steal clients, it's the nature of the business but what you say, when, makes a difference. Be business like and honor their contracts as you would want your contract honored. Going too far can get you into issues of contract interference. Be prudent and fair, but you're certainly entitled to advance yourself and your business.  :)

Michael Tempel · Answer

Very good advice.  I do a lot of the above, so it is good to know that it is the right way, just can be a slower process at times.  It seems like most relationships for larger multi family take a few years to really get to the point where you are fully managing a portfolio.

Bill Gulley · Answer

Learn where and how to meet the players, it isn't done by a mailer, mom and pops may respond to a mailer.

Civic organizations, community involvement, non-profits related to housing might get you noticed. Don't go to these activities under false pretense of just trying to make contacts for business, go with good intentions to contribute to the cause. It takes a little time for a long time to become known. You'll find that community minded people are generally well off, well connected and well educated, these are folks you need to know in real estate.

If you're a broker, your Board of Realtors should offer continuing education classes, they usually have ethics classes and this topic is often discussed. Everyone wants to protect their turf, they will to certain degrees and some can be very protective, you're threatening their livelihood. But, you can talk about what you do, how your services may be different, how you provide services with anyone. You cross the line when you get specific about a particular property, a price charged (unless you simply say the customary X%) it's when you get specific as to offering your services while that owner is a client of another licensee that you have problems.

If you are approached by another broker's client, then that is different, but you still have to inform them that you can't advise them to terminate that relationship with an existing broker. If they say they want out of their relationship you can tell them that they need to do that in writing and in terms with that contract, but you should not assist them in doing so, that is for them to do or their attorney.

Also, think of and utilize a third party influence. When I was active in some civic activity, there was usually a Realtor in the group that I knew. I wouldn't start a conversation about investing or real estate or lending, the Realtor would.

"Bill, this is Jane K., she has a real estate issue that I was speaking to her about, you can probably help her." The Realtor would introduce me, set the stage and pose the issue. If she was a client of any professional, attorney, CPA, Realtor, Insurance agent, I could give my opinion, perhaps give my advice but always be mindful of not getting between that client and professional relationship. If from my advice or comment, Jane wanted to go further, I'd need to clarify her relationship and have her open the door or ask me to take a more formal position without leading her to such conclusion overtly.

There is a professional code of conduct among all professionals, a medical doctor won't suggest you come to him instead of your doctor at a cocktail party, they may suggest you visit them again if you go to his office seeking treatment.  Attorneys are quick to point out they can't represent you so long as you are being represented.

If you demonstrate a high degree of professionalism it is a reflection on you that will pay off, the type of people you really want as clients are wise to professional conduct. You may meet some who might gripe about their advisor, refrain from jumping in on that bandwagon, you can be empathetic without insulting others in your or any other profession.

When can you zap bad apples? When you're right, when the other is being unethical and that is done in an appropriate environment. You don't call out another broker at the annual Board of Realtors dinner or if you see them in public.  If I walk into some guru seminar I won't ever attack them directly saying they are lying, I'll ask questions that may take them full circle for others to understand that they are full of it. A bit of skill, tact and knowledge can be required.

Thank goodness, forums, podcasts or the internet are public discussions ripe for correcting bad or poor advice regardless of who gives it, less tact is required but we still have lines we don't cross. Yes, even I refrain from commenting, LOL! :)

Michael Tempel · Answer

Great answer.  I just got off the phone with the legal hotline and MN Commerce and they said about the same thing.  It is a fine line especially with some of the larger property management companies, they will create an issue at the drop of a hat.  I think a very focused website may be the way to go instead with marketing aimed at my target area...will cost more, but I think I will sleep better at night.

Can you advertise that you are you management properties in a mailer?

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