All Forum Posts by: Jordan Meyer

@matt T. In the 5-6% range. It varies with prime rate.

@Steve Vaughan You hit on my number one problem with many (not all) property management pricing structures. It's a big principal-agent problem: the property manager has incentives that the owner doesn't have. The owner doesn't want vacancy, yet the PM makes 1/2 - 1 month of rent on a unit turn (which vastly outweighs the 8-10% missed). The owner doesn't want repairs and evictions, yet, the PM makes an override on service calls and evictions. The owner is price sensitive to repairs, the PM doesn't bear the cost and so is less price sensitive. Couldn't there be a structure that more closely aligns the incentives of the owner and manager? 

@Ana Marie b. Thanks! You answered my original question. I wonder how Onerent is doing.

@Caleb Heimsoth  Redfin etc, have created a lot of jobs as well, and kept a lot of money in consumers' hands. Most tech business models can scale, and scaling requires hiring and making assumptions about market conditions. Those conditions can change unpredictably, in which case you have to lay off. Local RE companies don't lay off because they never hired much to begin with. 

@brian van pelt I agree that a 1 for 1 replacement of a manual process with a technology can yield incremental gain, but I'm talking about replacing manual process with technology AND business model innovation.

@Ana Marie B.undefined

@Jonathan Hulen

In Utah, AFCU does 80% LTV on NOO.

@Derrick StClair

The two things that stop most investors from expanding are number one lack of deals or number two a lack of cash. This could obviously solve number two.

I wasn't making any value judgments about the 8-10% being too much or too little. I only am wondering why the tech-first model hasn't been tried in property management. By tech-first I'm saying a company that owns its own technology and attempts to use it to reduce friction points. This allows greater scale, which can then be passed along as cost savings. Imagine the best property manager with 20 support staff, all coordinated by a platform. So the tenant isn't communicating with a single person, but with a platform or the 20 staff. How many doors could that person manage? 10,000?

And whether or not you like Redfin, Homie, Zillow, the tech-first approach has begotten some very valuable companies. Technology has brought new business models for all the other areas of real estate: sales, closing (Qualia, JetClosing), lending (SoFi, Lightstream). 

When is it coming for property management? And maybe you all just answered why it won't--the margins are too small to begin with. 

@Michael J Scanlon thanks for the thoughtful post. I was referencing, to name names, markets like Cleveland, Milwaukee, Detroit--that are losing jobs and population on net. There seem to be people very excited about those markets. I'm trying to understand why given the declining macroeconomics. 

In a day where technology is pushing down transaction fees for purchases (i.e. Redfin, Homie, etc.) is this happening in property management anywhere? It seems like there should be a tech-first property management company out there that charges a lower, flatter price (i.e. 5%). Does this exist?

Cozy is also good. Rent tech is another if you get bigger

Midwestern markets are like football teams. Many people have an irrational attachment to them. Even if the population is declining, jobs are disappearing, and the city is mismanaged, they still advocate for them. 

So, who here can give the BP world an objective reason that midwestern/southern market X is a good one for out of state investors? Is it possible to get appreciation to go along with that sweet, sweet cash flow? I want data, not opinions.