MTR Operations + Lessons Learned

[Jamie Banks]

When I started my MTR journey in January 2023 I would never have guessed that less than a year later I would manage over 20 MTRs and have over 80 MTRs total in my company's network. As I've grown my MTR business, operations has been my focus point. Here's a few tips that I've learned along the way:

- Invest in automations and technology. Having MTRs that are equipped with the tech you need (like keyless locks and cameras) helps make management easier. Whichever PMS (property management software) that you use make sure it integrates with your lock. I use Owner Rez and the Schlage Encode integrates so that the lock automatically assigns a code to each reservation and includes it in the check in instructions. Automations make managing easier and helps eliminate human error. 

- Stay on top of your bookkeeping. From day 1, I have been using Baselane. Baselane is a bank that has bookkeeping and property management capabilities that are included for free. With Baselane I can set up a virtual account in about 30 seconds for each property that I manage that helps me stay organized and automatically tag transactions from each property's account to that property.

- Hire a great team. I operate in 7 markets and in each market we have a quality control manager or runner, a cleaner with at least 2 backups, and a handyman/woman. I also have at least 1 investor in each market who has MTRs in that market. Collaboration has been a huge tool for growing my business and having other investors to pass MTR leads to is very important. Especially when getting leads from insurance relocation companies you never want to say no!

Are there any others tips from fellow MTR operators?

[Allen Duan]

You're rocking it Jamie!

This year my big takeaways include:

-Hire overseas talent. Any modern business today should have some of their workforce overseas. The basic admin tasks that all of us have to do can take up a lot of our time, keeping us away from the high value work we should be focusing on. For me that's client acquisition, marketing our properties, and empowering my team.

-The need to keep my eyes on the right numbers and metrics to ensure I'm making the best decisions. I'm investing in accounting services with Ximplifi to do this as well as building out the reports I need to see daily. One immediate result, I've let go of some of our rental arbitrage properties that aren't worth it.

-My goal for 2023 was to network as much as I can. And it's paid off immensely. Not only have I met so many cool people and enjoyed the relationships I've built, it's also led me to clients, potential partners, and people I've learned so much from. I'm going to increase my networking next year as well as getting my branding and social media machine going.

[Afoma Okwudiafor]

Great takeaways! Hoping to expand in 2024!

having a team in my current market has been key. 

a runner maybe something I need to add. How do you find runners? 

Also do you do arbitrage  ?

[Bonnie Low]

Quote from @Jamie Banks:

When I started my MTR journey in January 2023 I would never have guessed that less than a year later I would manage over 20 MTRs and have over 80 MTRs total in my company's network. As I've grown my MTR business, operations has been my focus point. Here's a few tips that I've learned along the way:

- Invest in automations and technology. Having MTRs that are equipped with the tech you need (like keyless locks and cameras) helps make management easier. Whichever PMS (property management software) that you use make sure it integrates with your lock. I use Owner Rez and the Schlage Encode integrates so that the lock automatically assigns a code to each reservation and includes it in the check in instructions. Automations make managing easier and helps eliminate human error. 

- Stay on top of your bookkeeping. From day 1, I have been using Baselane. Baselane is a bank that has bookkeeping and property management capabilities that are included for free. With Baselane I can set up a virtual account in about 30 seconds for each property that I manage that helps me stay organized and automatically tag transactions from each property's account to that property.

- Hire a great team. I operate in 7 markets and in each market we have a quality control manager or runner, a cleaner with at least 2 backups, and a handyman/woman. I also have at least 1 investor in each market who has MTRs in that market. Collaboration has been a huge tool for growing my business and having other investors to pass MTR leads to is very important. Especially when getting leads from insurance relocation companies you never want to say no!

Are there any others tips from fellow MTR operators?

Totally agree, Jamie! And I'm glad you mentioned having a "runner" on your team. I think this often getns overlooked but I can't tell you how essential this is for all the little things that you don't want to have to pay your cleaners or handyperson for. Things like receiving product deliveries and putting them away. Opening new items and assembling them. Meeting a contractor at the property to let them in, getting rid of garbage when the cans get missed, etc. Great call out!

[Jamie Banks]

@Allen Duan Thanks Allen!

You're spot on about hiring overseas talent. I hired my first VA when I was just managing my 3 MTRs. I hired "early" but it's allowed me to scale because when hiring any talent there's always a ramp up period. Now I have a team of VAs who handles guest communication 24/7 and it's been an essential way to scale my business

[Jamie Banks]

@Afoma Okwudiafor I have found runners through local FB groups and recommendations from other investors. 

I have one arbitrage unit that I'm letting go of next month. I know others have had success with arbitrage but it's not a strategy that I plan to focus on 

[Christie Gahan]

Quote from @Jamie Banks:

@Afoma Okwudiafor I have found runners through local FB groups and recommendations from other investors. 

I have one arbitrage unit that I'm letting go of next month. I know others have had success with arbitrage but it's not a strategy that I plan to focus on 

 I think being a runner would be an amazing way to learn MTR

[Cody Zucker]

Quote from @Jamie Banks:

@Afoma Okwudiafor I have found runners through local FB groups and recommendations from other investors. 

I have one arbitrage unit that I'm letting go of next month. I know others have had success with arbitrage but it's not a strategy that I plan to focus on 

 Very interesting! How do you price their time? What does the job description/post look like?

[Jamie Banks]

@Cody Zucker I talk to a few people to get a sense of the rate in each market. My base rate is $25/hour but it depends on the market. I've never posted a formal job description after I post on FB asking for someone to help be my runner and explain the tasks that I need help with I generally get enough hits from there. I've also hired cleaners from Turno to do some of the tasks I need help with. 

[Deitra Jones]

Quote from @Jamie Banks:

When I started my MTR journey in January 2023 I would never have guessed that less than a year later I would manage over 20 MTRs and have over 80 MTRs total in my company's network. As I've grown my MTR business, operations has been my focus point. Here's a few tips that I've learned along the way:

- Invest in automations and technology. Having MTRs that are equipped with the tech you need (like keyless locks and cameras) helps make management easier. Whichever PMS (property management software) that you use make sure it integrates with your lock. I use Owner Rez and the Schlage Encode integrates so that the lock automatically assigns a code to each reservation and includes it in the check in instructions. Automations make managing easier and helps eliminate human error. 

- Stay on top of your bookkeeping. From day 1, I have been using Baselane. Baselane is a bank that has bookkeeping and property management capabilities that are included for free. With Baselane I can set up a virtual account in about 30 seconds for each property that I manage that helps me stay organized and automatically tag transactions from each property's account to that property.

- Hire a great team. I operate in 7 markets and in each market we have a quality control manager or runner, a cleaner with at least 2 backups, and a handyman/woman. I also have at least 1 investor in each market who has MTRs in that market. Collaboration has been a huge tool for growing my business and having other investors to pass MTR leads to is very important. Especially when getting leads from insurance relocation companies you never want to say no!

Are there any others tips from fellow MTR operators?

 Wow, this is amazing! I have 3 LTR properties, and just now doing my 1st MTR.  You mentioned the Schlage Encode lock automatically assigns the code? Is there a certain software you use for this? I have used those locks and didn't know it can automatically assign codes.  Plus what kind of security cameras do you install in your MTR?  

[Jamie Banks]

@Deitra Jones My lock integrates with Owner Rez, my property management software, and Im fairly certain it integrates with other property management softwares as well. 

I use a Ring camera 

[Alyson Gordon]

Jamie, congrats on a phenomenal year! What advice would you have for growing your portfolio? 

[Christabelle Cabanilla]

Quote from @Jamie Banks:

@Deitra Jones My lock integrates with Owner Rez, my property management software, and Im fairly certain it integrates with other property management softwares as well. 

I use a Ring camera 

We currently have one installed in our STR but will transition to MTR in a few days. Do you keep the Ring account under your name? Do you give the renter access to it?

How do you handle pets? Non refundable vs refundable pet deposit? Pet rent per month? We have carpet upstairs but are willing to have the tenant bring pets but I want to make sure that if we needed to deep clean or even rip out that carpet after their stay that we'd be covered.

[Jamie Banks]

@Alyson Gordon thank you! Document everything when you have only one property. A lot of times people will wait until they have multiple to really get their systems in order. What’s helped me scale was treating my 1 property portfolio the same as a 100 property portfolio!

[Jamie Banks]

@Christabelle Cabanilla I have a Ring account for my business and I don’t give the renters access to it

[Joshua Burgeson]

@Jamie Banks congrats on the success of your business!
I am trying to scale an STR management company and business banking / accounting has been a headache. If you don't mind me asking,
1. Do you collect rents and then distribute owner payouts + your commission using Baselane? 
2. Do you have different bank accounts for each property? Curious about how you set things up to manage expenses for each property. 

Thanks!

[Joshua Burgeson]

Quote from @Allen Duan:

You're rocking it Jamie!

This year my big takeaways include:

-Hire overseas talent. Any modern business today should have some of their workforce overseas. The basic admin tasks that all of us have to do can take up a lot of our time, keeping us away from the high value work we should be focusing on. For me that's client acquisition, marketing our properties, and empowering my team.

-The need to keep my eyes on the right numbers and metrics to ensure I'm making the best decisions. I'm investing in accounting services with Ximplifi to do this as well as building out the reports I need to see daily. One immediate result, I've let go of some of our rental arbitrage properties that aren't worth it.

-My goal for 2023 was to network as much as I can. And it's paid off immensely. Not only have I met so many cool people and enjoyed the relationships I've built, it's also led me to clients, potential partners, and people I've learned so much from. I'm going to increase my networking next year as well as getting my branding and social media machine going.

 @Allen Duan how are you liking Ximplify so far? I am trying to get my str accounting streamlined and they seem to have a robust platform but my experience with 3rd-party remote accounting firms was shaky in the past. Hoping to avoid some headache and do some research before making another transition. 

[Allen Duan]

Quote from @Joshua Burgeson:

Quote from @Allen Duan:

You're rocking it Jamie!

This year my big takeaways include:

-Hire overseas talent. Any modern business today should have some of their workforce overseas. The basic admin tasks that all of us have to do can take up a lot of our time, keeping us away from the high value work we should be focusing on. For me that's client acquisition, marketing our properties, and empowering my team.

-The need to keep my eyes on the right numbers and metrics to ensure I'm making the best decisions. I'm investing in accounting services with Ximplifi to do this as well as building out the reports I need to see daily. One immediate result, I've let go of some of our rental arbitrage properties that aren't worth it.

-My goal for 2023 was to network as much as I can. And it's paid off immensely. Not only have I met so many cool people and enjoyed the relationships I've built, it's also led me to clients, potential partners, and people I've learned so much from. I'm going to increase my networking next year as well as getting my branding and social media machine going.

 @Allen Duan how are you liking Ximplify so far? I am trying to get my str accounting streamlined and they seem to have a robust platform but my experience with 3rd-party remote accounting firms was shaky in the past. Hoping to avoid some headache and do some research before making another transition. 

 It's been a good experience overall. The have a software option that's affordable and links our PMS Hostfully to QBO to automate a lot of record keeping. The more expensive accounting service is essentially outsourcing to their team. It's not cheap but you get access to their team and they do almost everything for you.