“So, you collect rents, send out the handyman, and show houses. Is that really all you do?” I’m constantly hearing that from our clients, prospective clients, and my friends. When I hear it put into those words, should I feel like I don’t do much at all?
Let’s nip all this talk in the bud. As a property manager, I know what the real value proposition for property management is, as well as the steps to maximizing that value.
Property managers are asset managers
Do property managers really just list, show, and rent homes, collect rents, and send out the property maintenance crew? I don’t think so! We have a fiduciary responsibility to clients with regard to their property. Whether it’s a seasoned real estate investor, or a couple that needs to rent out their home because they had to move and have to wait for a real estate market upswing, we have to be part financial planner, part property improvement specialist, and all heart.
When I meet with my existing clients, prospective clients, and tenants, I have a story to tell. For the property owner, the story is simple: We want to treat your property as a true financial asset that needs to be maintained and put in a position to grow equity and generate positive cash flow by renting it to the right tenants. (That’s a mouthful, but you get the point.)
For the tenant, we must understand their needs: Do they rent because they can’t afford a home? Or maybe they fell victim to the housing bubble and lost their home, and renting is all that’s available to them at this time. Possibly they just like the flexibility of being able to move every few years and have minimal maintenance responsibilities. Whatever it is, we need to ask those important questions so that we can match up tenants and owners that complement each other, all while delivering killer property/asset management services.
What value does your property management company provide?
So…what is your company’s value proposition? Why would a property owner want to do business with you? If you don’t have a value proposition, it’s high time you did — because your competitors sure do.
Developing your value proposition is like looking for a midnight snack in your kitchen: You open every cabinet door, the pantry, and the refrigerator looking for something good. Well, do that for your business. Look into every aspect of your business and find out what you have or do that’s good for your clients and tenants. Make a list, and tie a story to it – now you have the beginning of your value proposition!
In future blogs, I’ll discuss some of our company’s good things. I hope these examples will inspire you to put your creative thinking hats on and take your business to the next level of success.
Bobby Russo is a veteran sales guy who recently became a partner in a property management company. Click here to read more of his story.
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