Below are two posts. The first talks about the demand to get into the property management business and the second is about the growth of existing property management companies.
Newbie Property Managers
As the demand to rent improves, many try to capitalize and become property managers. I’m sure that you have seen the post cards in the mail or received an email blast or two. A majority of these new property managers are sales agents. But we’re seeing some come from all kinds of real estate related businesses.
Competition is a good thing. It keeps pricing and services in check. The real concern that I have is the potential black eye, again to the Boise property management industry. Idaho does not require property managers to be licensed and there are no standard policies, procedures, processes, or forms. First Rate Property Management has established these through twenty years of experience and more importantly, by ongoing education. So, I foresee more issues coming up with mishandled funds and other issues, which can deter investing in Idaho. I don’t want to see anyone get burned or harmed, but it’s going to happen and it’s going to be the short-sighted investor, who shops purely on price and not by experience and professional knowledge. As a reminder, First Rate Property Management does provide some questions for a property owner to use when interviewing for a property manager, which I have provided below.
Existing Property Managers Plan to Grow
A good number of First Rate Property Management employees attended the NW Regional Conference for the National Association of Residential Managers here in Boise. Interesting enough, not only did every breakout session have a speaker on Marketing and growing your business, but they were also the most popular. I have the upmost respect for these speakers and they run very good companies. However, fundamentally, I have to respectfully disagree.
One speaker stated that any new owner call or email goes to a hunt group of multiple people so that the lead gets immediate attention. For years, First Rate Property Management’s response was, “I am sorry, we currently are not taking on new clients except for current clients or their referrals”. Should they get past that phase, their call is returned in order of importance. And if we have an urgent matter for a current client or tenant, that matter will be taken care of before talking to a prospective new client.
Another speaker did an outstanding job on describing their marketing plan, which is the largest portion of their budget. They have marketing people with quotas to fill each month. The processes shared to gain new clients and properties to manage were outstanding.
So, I thought I would share First Rate Property Management’s Marketing Plan. “All marketing will be directed towards securing the best tenants for the rental properties in which we are entrusted to manage. First Rate Property Management will respond to all current owner, current tenant, and perspective tenants in a timely and professional manner.”
By making our current clients and tenants our number one priority and providing exceptional service, those current clients and tenants will become RAVING FANS and tell others about First Rate Property Management. It shall be First Rate Property Management’s reputation and referrals that allows for future growth.
I’m sorry to disappoint, but you won’t be receiving post cards or email blasts. You aren’t going to see us changing procedures to process new property leads over other, more important matters like our current clients and tenants.