All Forum Posts by: Greg Weik

 @Scott - just to be clear I was not trying to throw any shade your way!  Your analysis was great and I appreciated the thought you put into it.  

My take:

No one knows. 

Pundits will continue to talk, and they will continue to have no accountability for their predictions. 

The smart money is on becoming a pundit, if you can.  Make predictions and speak assertively.  It doesn't matter how wrong you are. Your job is unassailable. 

With regards to real estate, there's no point in predicting the future. If prices go up, there will be opportunity.  If prices go down, there will be opportunity. 

Maybe 2nd to the job security of a pundit, however, is the job security of a solid property management company.  

Renters gonna rent, some percentage of renters will always be a PITA and landlords will always need our expertise. 

 Hi @Jarrett Fogelman, welcome to Denver!  Do you currently own any rental properties here? 

I agree with other comments - you don't want a Real Estate Firm that claims to have a property management division.  Companies are either property management companies or not.  

It's like when someone tells me they've started 7 business.  Well, if you were good at the first one, you'd have stopped there. 

In any case, it sounds like you're looking for investor guidance more than anything.  I happen to be an investor and I own a PMC, and I'd be happy to offer some free advice on what to buy and where, if you're interested.  

The best seat in the house is the front row seat at a PMC.  We get to see what works and what doesn't. 

Best of luck. 

Hey @Ken Ormsby I always have clients interested in selling.  I had one reach out just today asking if I had anyone who might want to buy. 

I've purchased a couple of my investment properties directly from property management clients who decided to sell.  If you can get in before a property hits the market, you can often negotiate a great win-win deal for everyone. 

We deal mostly in SFRs.  Feel free to DM me and I can give you details on properties I have that are going to hit the market. 

My $.02 is that you don't want to paint with a broad brush.  Employees vary wildly with regard to performance and value to the company.  

Don't reward excellent employee A with the same bonus as sub-par employee B. 

Take your excellent team members aside and pay them a lot more than you need to.  

Try to build a company around the people, not build the people around the company. 

@Allison Cutlip No offense intended but "How do we create a lease" and "How do we find software to manage the property" sounds a lot like you need a property manager. 

A good property manager will help to keep you out of legal trouble and also be a much-needed buffer for your new neighbors, who could turn out to be psychos.  You probably don't want to live next door to tenants; ideally, they would just think you're also renters. 

If you insist on going it alone, my advice is to hire a real estate attorney to draft a lease with all the current legislation.  If Ohio is like most states, this is a complicated task, not best left to chance.  Good PMCs use attorneys and have strong leases. 

Best of luck, but again, I suggest hiring a professional. 

Hey @Stewart Thompson congrats!

My advice would be to shop for a PMC as an employer the same way you would if you were a landlord. 

There are a lot of PMCs out there, and most are not great.  Some are incredible. 

Find out who has good Google Reviews (and responds to them), find out who answers their phone, find out who has a polished and professional website, etc. 

If the PMC isn't hiring, offer to work as an intern.  Being there and in that environment is more important than trying to wedge your way into a company that might not be hiring.  Even if it's just part time, the key to figuring out how PM is done well is by being present around people who have mastery of the industry. 

Having a poor experience with a PMC prepares you with what to ask a new PMC. So that's a silver lining at least.  

We are fortunate to take on a lot of doors from local PMCs who drop the ball, and invariably, poor communication is near the top of the list for complaints.  My favorite calls are from prospective clients who have been with another company - they know what matters to them and I know a lot about how the relationship will go, based on what they've experienced with another PMC. 

Owners shop fees in the beginning, but once you're seasoned, you realize fees are usually about the same, and it's really process, procedure, culture, and communication that you're hiring. 

I would suggest making some calls. See who answers the phone.  Ask them about their process to onboard.  

4 doors is not much.  Occupied or vacant, it doesn't matter. A good company will have you fill out some easy online paperwork asking you some details about the doors, and they can get you transitioned into their system in 1-2 days, including reviewing your leases and notifying tenants about the change in management. 

You'll need to confirm the exit policy with the current PMC.  Do they require 30 days' notice?  If so, give that now and start your search.  Make sure you are clear of the contract you're in (are there any cancellation fees?) before you spend another PMCs time. 

My advice would be to ask very specific questions to identify if your pain points will truly be alleviated.  "If X happens, what would you do?"  A good PM will be able to quickly draw upon process, procedure and mechanisms in place to handle the "X" in your question. 

Good luck! 

 @James Hamling Apologies if I struck a nerve!  That whole post was me referring to Renter's Warehouse as RW.  Sorry if I got that wrong, but I am very familiar with THAT RW. 

All good?

Also, wasn't a marketing attempt, sorry if you took it that way. 

But geez man, you went right to DEFCON1...

Hey @James Hamling, we compete with RW in Denver.  I've lost track of how many doors we've acquired from them.  They've not acquired any from RES.  I started bringing donuts for their team when I would stop by to get keys from them.

While this anecdote has more to do with client retention than acquisition, I still find it interesting.  A flat monthly rate might get more people in the door, but it is pointless if your attrition is out of control. 

RW's fee structure is interesting because it's a "look over HERE, not over THERE" approach. 

RW discovered that most clients shop with a "what are the monthly management fees" approach and not a "what are all of your revenue streams" approach.

RW competes with a very competitive flat monthly management fee but then charges a minimum of 1 full month's rent for leasing and a host of other fees.  IIRC, RW even charges hourly rate fees if a property consumes too much time. 

This is smart, and it's part of RWs success as a franchise.  I'm not knocking it, but let's call a spade a spade.  RW's monthly flat rate is offset by revenue streams where the client is not looking. 

We charge 7% but always between $100 and $200.  The $200 cap rewards the class A doors we want to manage, and the $100 minimum weeds out the doors we don't want. 

Our leasing fee is a flat $1,000, and $700 for owners with >1 door.  

I think the best model, and one I'm currently working on, would be more akin to how insurance works. Any repair (perhaps over a certain number of repairs) or time spent on a door outside of routine management is a "claim."  

Too many claims and rates go up.    

Any management fee structure (monthly fees) is simply a guess with regard to what will keep the PMC in the black in relation to the work that will be needed to manage the door. 

I agree that efficiency is a huge part of that equation, and the more efficient the PMC, the more they can stay profitable with lower fee structures.