My story is exactly the same, over 15 years building my business, same issues, same challenges, sold my management company in 2020, starting clean no with a new firm now with great new insight.
@mark_brower Great interview! I started a ppm business 2 years ago and I have 50+ units under management. You mentioned in the interview that you got to a point where you realized paying a maintenance tech 130% more because they're a quality handyman. I'm curious to know how did the owners respond to high expenses or did you cover a portion of that expense from your management company?
@@throopstreetcapital Great question. The core issue for me, as I look back, was my confidence level around cost. The secondary issue was having the right clients who support getting the job done right without over-management. Once I felt confident about requiring my owners support a reasonable cost to get the job done right with the right vendor and to stay in my good graces 😉it started getting easier having those conversations with owners. The more confident I became in those conversations the more support I got from the owners as well. Some owners have a very fixed idea what something should cost and they won't bend and meeting their cost expectations creates a lot of extra un-necessary work. I won't work with those owners but they are a much smaller group than I originally thought. Most owners are open to being influenced in this area. Here's something I have learned to be true in this business: If we don't clearly communicate what success looks like, we are agreeing to allow the owner to make up their own rules for success. Often this devolves into not spending any money and abusing tenants on security deposit reconciliations. This is wrong, bad business and often abusive. It is our obligation as the property manager to say 'no' to these practices (even if they are within the bounds of the law). Good luck!
Hey Mark, i have a 10 years logistics and export executive background in corporate. I am giving so much attention to detail as my personality and good management skills. I want to get in to property management business but i don’t have any background in this. What is your advice for me, how can i learn and how to get the first client?
@@ezgilv5449 Sounds like you want to start your own property management business and your strengths are in details and management? When I started my PM business I already had landlord experience and some real estate sales experience, both of which were helpful. If you have neither of these maybe a smart investment in knowledge for you would be to find the best PM company in your market and go work for them for a year or 2? Also if you can develop some sales skills they will be critical to acquire clients. Good luck!!
Great stuff! I'm a local Chicago property manager with 50+ units under management. I'm curious to know when Mark said he paid his maintenance tech a premium because working with less quality people wasn't working, How did the owners respond to high maintenance expenses or did he cover a portion of that cost from the management business because he knew as he grew the numbers would work out? How was he able to pay more for repairs?
Hi thanks for the question. I expect owners to support good repairs done by good vendors for the longterm good of the property, resident relationship and their relationship with us (their property manager). This means I am not ok over-managing the cheapest vendors who are inconsistent with appointments, billing, and how they run their business. Quality reliable vendors charge more than the "Chuck in a truck" lowest cost provider, maybe 30% more (130% reference you made from the video). That's not only ok, it's the only way to do business properly in my opinion. We are looking for win-win relatinships with owners. It's interesting that once I was able to clearly explain what I expected from my owners they leveled up and gave me the support I needed as their PM. Some of them left (big win!) because they actually expected me to spend a LOT more time and energy than was necessary to manage sub-par repairs done by sub-par vendors just so they could save a few bucks. Not the way I want to manage, not profitable, not a win. For more about my philosophy of the support we require from owners, check out this reel: facebook.com/reel/633244155466123
