Fourandhalf Marketing Agency for Property Managers: Recent Episodes

View Details

How do you generate new owner leads? Is it through referrals? Local newspapers? Online ads? Did you know that blogging, with special attention to local SEO, can also be a powerful tool for property managers looking to attract new clients?

By now, you’ve probably heard that blogging can be a great way to attract more owner leads. But if you’re writing great blog posts, and not seeing anything come from it, you may need to start paying more attention to your local SEO.

What is Local SEO?Local SEO (Search Engine Optimization) refers to the strategies and techniques used to improve a website’s search engine ranking and local search visibility. It helps businesses target potential customers in a specific geographic area, making it a convenient tool for local business marketing.

The goal of local SEO is to increase visibility in search engine results when someone searches for keywords related to your business and location. This means that if someone in your city searches for “[your location] property management services,” you want your company’s website to show up as one of the top results.

How Do You Show Up for Local Search?There are two main ways to get your website listed on the first page of Google’s search results for a particular term:

Organic Search ResultsThis is when your website appears naturally in the search results, without any paid advertising. The key to ranking well organically is to have high-quality, relevant content that aligns with what people are searching for. By focusing specifically on local SEO efforts, property management companies can appear prominently in search results for location-specific queries. This is particularly important because potential clients often search for property managers in their area using terms like “property management near me” or “property management in [city name].”

Paid Search ResultsThis is when you pay for ads to appear at the top of the search results page. Pay-Per-Click advertising offers a more immediate way to boost online visibility, whereas organic search results can take longer to build to the results you want. By bidding on relevant keywords, property management companies can appear at the top of search results, driving targeted traffic to their websites. PPC can be an effective complement to organic SEO efforts, particularly for new or underperforming keywords. While it can be effective, it can also be expensive and doesn’t guarantee a spot on the first page.

How Blogging Can Help with Local SEOBlogging gives property managers an opportunity to create fresh, informative content that targets specific keywords related to their services and location. By consistently publishing blog posts on topics that potential clients may be searching for, property managers can improve their website’s search engine ranking for those keywords.

It might seem like a lot of work, but if one property management company starts blogging consistently, it will separate itself from the competition in a number of ways:

Company IdentityAnyone searching for property management services in their town wants to find a company that is reputable, honest, and experienced. Your potential client will likely do their research: look at business reviews, read the information on your website, watch the videos, read few of your blog posts, and navigate to your Facebook/X/LinkedIn social networks.

Blogging allows property managers to showcase their expertise and knowledge of the local area, which can help establish them as a trusted and reputable company in the community.

If the website showing up on top on Google’s results is a standard business page, with no personality, broken links, no blog articles, no videos, no social networks or reviews, we argue that the only phone calls this company will get will boil down to a single question: “What are your fees?” Whereas, if your company has a strong online presence with a well-written blog, informative videos, and positive reviews, potential clients will be more likely to choose your company over others.

Increased Google RankingsGoogle and other search engines use multiple ranking algorithms to figure out if your website matches the search query. As an original content creator, property managers who blog will influence a part of Google’s algorithm to favor them. Blogs that offer unique perspectives or in-depth analysis are more likely to attract backlinks and social shares, which are key factors in search engine rankings. Over time, this can help improve your website’s authority and visibility.

Dominate “Long Tail” SearchMany people try to go it on their own before, eventually, searching for a property manager in their town. They’ll have to deal with issues new to them, like late-paying tenants, rent-readiness, move out problems, security deposits, pricing their rental, etc.

Long-tail keywords are specific search phrases that often indicate a user’s intent. For example, instead of simply searching for “property management,” a user might search for “how to handle late rent payments as a property manager.” By targeting these specific queries with blog content, you can capture potential clients who are looking for solutions to their property management challenges.

Imagine getting in front of your prospective customers even before they search for “Your town Property Management”. Being helpful is very good for business, as it turns out.

Tips for Incorporating Local SEO into Your Property Manager Blog For property management companies, blogging is not just about sharing knowledge—it’s a strategic tool to enhance local SEO and attract potential clients within your community. Here are some tips to keep in mind when creating blog posts with a focus on local SEO:

Use Local KeywordsIt may seem obvious, but the most important aspect of local SEO is to include local search terms in your content! Include the name of your city, state, or region in your blog post titles and body. This will help search engines understand that your blog is relevant to people searching for property management services in that specific location.

• Identify Local Keywords: Conduct keyword research to find phrases that potential clients in your area are searching for. These might include “property management services in [City]” or “best property managers near [Neighborhood].” You can find local keywords using tools like Google’s Keyword Planner or by analyzing the search suggestions that appear when you type in your location on Google.
• Integrate Naturally: Incorporate these local keywords naturally within your blog content. Ensure that they fit seamlessly into the narrative without overstuffing or disrupting the flow of the article.

Write About Local Businesses, Events or TopicsWrite about events, news, or hot topics within your community. This will not only help establish your company as an authority on local issues but also increase the likelihood of being found by potential clients searching for information related to your area. It is especially important to write about local laws or topics related to property management.

Utilize Local Link BuildingInclude links to other businesses and organizations in your area. This can help build relationships with other local entities while also improving your website’s authority and relevance for local searches.

Other Local SEO Tips for Local BusinessesOptimizing Business ProfilesA key component of local search optimization is ensuring that your Google Business Profile is complete and accurate. This includes providing up-to-date contact information, business hours, and a compelling business description. Engaging photos and regular updates about your services or events can also attract more attention.

Leveraging a Blog for Social Media SuccessA well-maintained blog not only provides valuable content for potential clients but also can fuel your social media channels, creating a powerful synergy that enhances your brand visibility and engagement. Internet users are increasingly using social media platforms as search engines, so this dual-purposed content can help you target different local keywords on social channels as well as traditional search engines.

Final Thoughts on Local SEOBy integrating local SEO best practices into your blogging efforts, you can improve your visibility in search results and connect with potential clients right when they need your services the most. This approach not only drives traffic to your website but also establishes your company as a trusted authority in your local market.

Here at Fourandhalf, we only work with Property Management companies. Contact us to learn more.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 12330 The post Can Blogging Be a Property Manager’s Secret Weapon for Local SEO? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

ROI calculators are the trendy new thing in property management websites. You might have come across a competitor’s website featuring a sleek new calculator and found yourself wondering if you should invest in one as well.

At Fourandhalf, we specialize in digital marketing tailored specifically for property management companies, including the development and integration of ROI calculators. In this blog, we’ll explore the key benefits of having an ROI calculator on your site, helping you decide if it’s the right investment for your business.

What is an ROI Calculator?First things first, let’s define what this calculator even is. An ROI (Return on Investment) calculator is an online tool that helps users estimate the profitability of an investment by calculating the potential return based on specific inputs. In the context of property management, an ROI calculator typically allows property owners or investors to input various financial details related to a rental property to assess how much profit they might expect from their investment over a given period.

Key Features of an ROI CalculatorThere can be slight differences in the inputs and outputs of an ROI calculator, depending on who made it. The below fields are some of the inputs and outputs of the Fourandhalf calculator, which are pretty typical.

Input Fields* Property Purchase Price: The initial cost of buying the property. * Rental Income: The expected monthly or yearly income from renting out the property. * Operating Expenses: Costs associated with managing the property, such as maintenance, property management fees, insurance, taxes, and utilities. * Loan Information: If the property is financed, the calculator may include fields for the loan amount, interest rate, and loan term. * Vacancy Rate: An estimated percentage of time the property might be vacant.

Calculation OutputsHere are just a few of the outputs that one can expect when they fill in the above information:

• Net Operating Income (NOI): The income generated from the property after deducting operating expenses.
• Cash Flow: The amount of money left after all expenses, including mortgage payments, are paid.
• Cash-on-Cash Return: The return on the actual cash invested in the property, considering the cash flow and initial cash outlay.
• Total ROI: The overall return on investment, often calculated as a percentage, considering both cash flow and property appreciation over time.

Purpose of an ROI Calculator for Property OwnersHaving an ROI calculator on your property management website can enhance the experience of visiting your website for potential owner leads. It serves as a valuable tool that empowers them to make informed decisions about their investments, without you having to do anything! Below are some key benefits of incorporating an ROI calculator on your site for property owners:

• Evaluate Profitability: It helps property owners or investors assess whether a particular rental property is a good investment by projecting potential earnings and costs.
• Compare Investments: Users can compare different properties or investment strategies to determine which offers the best potential return.
• Financial Planning: It aids in making informed decisions about property investments by providing a clear picture of expected financial performance.

Now that we’ve established what an ROI calculator is, how it functions, and the benefits for your leads, let’s dive deeper into the specific benefits of incorporating this tool into your property management website for your business.

Benefits of an ROI CalculatorAdding an ROI calculator to your property management website offers a wide range of benefits that extend beyond just providing a useful tool for potential clients. From enhancing your sales team’s effectiveness to attracting high-quality leads, this tool can play a pivotal role in growing your business. Let’s explore some of the key advantages of incorporating an ROI calculator, including how it can empower your sales efforts, generate leads, differentiate your business, and increase visitor engagement on your website.

Sales EnablementFor your sales team, an ROI calculator is an invaluable tool that provides hard data to support their pitches. Many times, a potential lead will be able to get the numbers themselves, saving your sales team time. Even if the lead doesn’t see the ROI calculator on your website or doesn’t know how to use it, your sales team can use the results from the ROI calculator to demonstrate exactly how your services can enhance the profitability of their properties. This not only adds credibility to their arguments but also makes the conversation more concrete and less hypothetical. Armed with real numbers, your sales team can more effectively convince property owners of the value your company brings, ultimately leading to higher conversion rates.

Generating Quality LeadsAn ROI calculator is not just a marketing tool; it can also serve as a robust lead generation engine. By asking users to input their contact information to receive detailed ROI reports, you can capture high-quality leads who are already interested in assessing the profitability of their investments. This targeted approach ensures that the leads you gather are not only relevant but also more likely to convert into paying clients, as they have already shown a clear interest in understanding and improving their investment returns.

Differentiating Your BusinessIn a competitive market, having an ROI calculator on your website can significantly differentiate your business from others. Many property management companies may not offer such tools, making your business stand out as more innovative and client-focused. This differentiation can be the deciding factor for potential clients when choosing between your services and those of a competitor. By offering an ROI calculator, you demonstrate a commitment to providing value-added services that go beyond the basics, positioning your company as a forward-thinking leader in the industry.

Transparency in Financial ProjectionsOne of the key benefits of an ROI calculator is the transparency it offers. By allowing potential clients to see accurate financial projections, you showcase your commitment to honesty and openness. This transparency builds trust with your audience, as they can see exactly how their investments might perform under your management. Providing clear, data-driven insights reassures property owners that they are making informed decisions, fostering a sense of confidence in your services.

Increasing Time on SiteInteractive tools like an ROI calculator are highly effective in keeping visitors engaged on your website for longer periods. When potential clients interact with the calculator, they become more invested in the process, inputting various details and analyzing the results. This engagement naturally increases the time they spend on your site, which not only improves your website’s SEO performance but also enhances the likelihood that they will develop a deeper interest in your services. The longer they stay on your site, the more opportunities you have to showcase the value of your property management expertise, making them more likely to consider your services seriously.

Encouraging Exploration of Other ServicesAn ROI calculator doesn’t just engage visitors; it also serves as a gateway to further exploration of your website’s offerings. Once users have interacted with the calculator, they are more inclined to explore other content and services you provide, such as detailed blog posts, case studies, or testimonials. This exploration can lead them to discover additional ways your company can assist them, potentially turning a curious visitor into a committed client. By guiding users through your website’s various resources, you increase the chances of conversion, as they gain a fuller understanding of the breadth and depth of your services.

Conclusion: Maximizing the Impact of Your ROI CalculatorIncorporating an ROI calculator into your property management website is more than just adding a tool—it’s a strategic move that can significantly enhance your business. From building trust and credibility with potential clients to generating high-quality leads and supporting your sales and marketing efforts, the benefits are clear. An ROI calculator not only engages visitors by providing valuable insights into their investments but also sets your business apart from competitors, positioning you as a forward-thinking leader in the industry.

Ready to take your digital marketing strategy to the next level? Explore Fourandhalf’s comprehensive digital marketing services, including custom ROI calculators designed specifically for property management companies. Let us help you create a website that not only attracts visitors but also turns them into loyal clients.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. 33499 The post Benefits of Having an ROI Calculator on Your Property Management Website appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details



Among the various social media platforms available, Facebook stands out as a powerful space where property management companies can build their brand, showcase their expertise, and engage with their audience on a more personal level. But with so many potential types of content to share, how can you ensure that what you post truly resonates with your followers and enhances your company’s reputation?

In this blog, we’ll explore the strategies and types of posts that can help you make the most of your Facebook presence. Gone are the days when simply sharing property vacancies was enough; today’s successful property management companies are leveraging Facebook to establish themselves as local experts, build meaningful community connections, and provide valuable insights to their audience. Whether you’re looking to revamp your social media marketing strategy or are just starting out, these tips will guide you toward creating content that engages with your audience.

Understanding Your AudienceBefore we jump into actual social media marketing ideas, it’s important to understand your audience. Who are they? What are their interests? What do they want to see and read about?

Understanding your audience is the cornerstone of any successful strategy. As a property management company, your primary goal should be to engage with current property owners and attract prospective ones. These are the individuals who have the potential to benefit the most from your services, and your content should reflect their specific interests and concerns.

Define Your Ideal Audience PersonasTo truly resonate with your audience, it’s essential to define your ideal customer personas. Consider factors such as demographics, property types, investment goals, and pain points. Are you primarily serving out-of-town investors looking to break into your local market? Or perhaps you’re catering to seasoned property owners who need guidance on the latest regulations and maintenance strategies? Once you have a clear picture of who you’re speaking to, you can tailor your content to address their specific interests, making your Facebook page a go-to source of information and support.

Why Targeting MattersNext, you can tailor your content to meet the needs of these audiences. Current property owners are likely looking for information that helps them manage their investments more effectively, while prospective owners may be seeking guidance on entering the rental market or finding the right property manager. By addressing their unique needs, you not only position yourself as a valuable resource but also foster a sense of trust and reliability. This targeted approach ensures that your posts are relevant and engaging, increasing the likelihood that your audience will follow, interact with, and ultimately do business with you.

Property Management Facebook Post Ideas #1: Educational ContentBy far, the best thing for your property management company to share on Facebook is educational content that provides real value to your audience. This type of content not only informs but also positions your company as a local expert and trusted resource in the field of property management. Many property management companies are already creating educational content for their website, so it can also be very easy to repurpose into a social media strategy. Whenever you write a blog post or create video content, make sure to post it in multiple places.

Establishing Authority with Your Social Media PresenceEducational content can take many forms, but some of the most impactful include local market updates, information on new laws and ordinances, and practical property management tips. For example, posting about changes in local rental regulations or offering advice on how to manage tenant relationships effectively can be incredibly valuable to property owners who may not have the time or resources to stay updated on these topics. This kind of content demonstrates your deep understanding of the industry and your commitment to keeping your clients informed and prepared.
By focusing on educational content that addresses the needs and concerns of your audience, you can build a strong online presence that sets your company apart from the competition. This approach not only helps you attract new clients but also reinforces your role as a trusted advisor in the property management industry.

Property Management Facebook Post Ideas #2: Client Success Stories and TestimonialsAnother thing we love to encourage property management companies to share is client reviews. Trust and credibility are key factors that influence a potential client’s decision to work with your company. One of the most powerful ways to build this trust on Facebook is by sharing client success stories and testimonials. These types of posts showcase the real-world impact of your services and highlight the positive experiences of those who have worked with you.

Why Social Proof Matters for Your Property Management Company Sharing client success stories and testimonials provides what’s known as social proof—a powerful psychological concept that suggests people are more likely to trust and follow the actions of others. When prospective clients see that others have had positive experiences with your company, they’re more likely to feel confident in choosing your services. Whether it’s a property owner praising your prompt and professional management of their rental properties or a detailed case study that outlines how you helped a client overcome a specific challenge, these stories provide tangible proof of your expertise and effectiveness. They demonstrate to prospective clients that you have a proven track record of delivering results, making your company a more appealing choice.

ConclusionHaving a strong and effective Facebook presence is essential for building your brand, establishing authority, and engaging with your audience. By focusing on content that resonates with your target market—whether it’s educational posts that position you as an industry expert, or client success stories that build trust through social proof—you can turn your Facebook page into a powerful tool for attracting and retaining clients. Remember, the key to success lies in understanding your audience’s needs and consistently providing them with valuable, relevant content that enhances their experience and reinforces your property management business’ reputation as a trusted property management leader.

Here at Fourandhalf we can help you curate your property management company’s Facebook page into something your proud of. Reach out to us today to get started.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 99605 The post What Property Managers Should Be Posting on Facebook appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

So far in this series, we explored how reputation impacts the customer journey, the importance of fostering detailed, recent, and genuine reviews, and the power of volume when it comes to drowning out negative reviews for your property management company.

But securing a consistent stream of positive reviews can feel like a daunting task. After all, what if a seemingly happy client secretly harbors negative feelings, and your request for a review triggers a scathing online attack?

The Art of AskingThe key lies in strategic timing. By identifying key moments of satisfaction within your resident and owner relationships, you can confidently request feedback when they’re most likely to be receptive.

Imagine these scenarios:

• A resident’s move-in goes flawlessly, and you even go the extra mile to ensure their comfort.
• A maintenance request is completed promptly and efficiently.
• An unsolicited compliment brightens your day.

These are all prime opportunities to capitalize on positive experiences by requesting a review.

In the following sections, we’ll delve into the “how-to” of review generation. We’ll explore the most effective methods for requesting feedback, optimal timing strategies, and the importance of consistency. We’ll also address the ethical considerations of incentives and explore best practices for encouraging your team to become review champions.

Methods, Timing, and Consistency By mastering the art of asking, you can transform your online reputation into a powerful magnet, attracting new clients and solidifying your position as a leader in the property management industry.

Choosing the Right Approach: How Residents Prefer to Leave ReviewsKnowing how to ask for a review is just as important as when. BrightLocal’s survey sheds light on preferred methods:

• Email: 34% of consumers are most likely to leave a review if requested via email.
• In-Person: Another 33% favor being asked directly during their interaction with your company.

Another tip is that requests from the team member who directly delivered positive experiences have a higher success rate. There’s a psychological connection built – a personal touch trumps a generic email.

Timing and Follow-Ups: Persistence Pays OffWhile email is a popular option, remember it often takes multiple attempts to generate a review. Here’s some valuable data from PowerReviews:

• 68% of reviews come after the initial request.
• 28% are generated after the second request.
• The remaining 4% trickle in after the third request.

Follow-ups are crucial! Persistence pays off, but ensure your follow-ups are spaced out and avoid being overly aggressive.

Timing Also MattersWhen you send your review request can also impact your response rate. According to Reputation.com,

• Mornings: Review requests sent in the morning can see a 5% increase in response rates.
• Midweek: Sending requests during the middle of the week can boost responses by up to 10%.

When you’re asking for reviews, make sure to ask at least twice and pay attention to the timing.

Incentives: A Delicate DanceCan incentives like cash or gift cards motivate reviews? The answer depends on who you’re incentivizing.

Rewarding your internal staff for requesting reviews can be a great motivator. A well-structured incentive program can encourage your team to consistently prioritize review generation. However, be mindful of the following:

• Sudden Spikes in Reviews: If your company typically receives a steady trickle of reviews and then experiences a sudden surge within a few days due to incentives, it can trigger red flags with Google. Google’s algorithms are sophisticated and can detect patterns that suggest inauthentic reviews.
• Focus on Quality, Not Quantity: When incentivizing your team, prioritize the quality of the review requests over simply generating a high volume. Equip them with clear customer service scripts that outline how to effectively request reviews while maintaining a natural and professional tone.

Never incentivize clients for positive reviews. This is considered bribery and unethical. Even if you get away with it initially, it can damage your reputation if discovered. Legitimate reviews will be questioned, and you risk losing the trust you’ve worked hard to build.

Making it Easy for Clients to Leave ReviewsWe’ve all seen property management companies experience a surge of positive reviews, only to see the momentum fade. This often happens when teams get busy or priorities shift.

Maintaining consistent review generation is crucial. A steady stream of positive reviews keeps your rating high and your presence fresh on potential clients’ radars.

The easier you make it for clients to leave a review, the more likely they are to do so. Here are some strategies to streamline the process:

1. Customer Service Scripts: Develop clear and concise customer service scripts that your team can use when requesting reviews. These scripts should:
   • Briefly acknowledge the positive experience the client had (e.g., “We’re glad your recent maintenance request was completed quickly and efficiently”).
   • Explain the value of their feedback (e.g., “Your review helps us continue to provide exceptional service to all our residents”).
   • Provide clear instructions on how to leave a review (e.g., “Would you be willing to take a minute to share your experience on Google by clicking on this link?”).
2. Direct Review Links: Include direct links to your review pages on various platforms (e.g., Google My Business, Yelp) within your emails or text messages. This eliminates the need for clients to search for your profiles, making the review process even more convenient.
3. Post-Interaction Reminders: Consider setting up automated post-interaction emails or text messages that politely remind clients about the opportunity to leave a review. These reminders should be triggered after a positive interaction, such as a completed maintenance request or a lease renewal.

Building a stellar online reputation for your property management company boils down to creating positive experiences for your clients and then confidently requesting their feedback. By mastering the art of asking, strategically timing requests, and fostering consistency within your team, you can transform online reviews from a passive metric into a powerful tool for attracting new clients and solidifying your reputation for excellence.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY NameThis field is for validation purposes and should be left unchanged. 10396 The post Beyond AIDA: Asking for Reviews – Part 4 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

In the first two installments of this series, we explored the secrets behind crafting a stellar online reputation for your property management company. We delved into the importance of fostering detailed, recent, and genuine reviews, and the power of responding thoughtfully to all feedback, both positive and negative.

But let’s face it – property management isn’t always sunshine and rainbows. When things go smoothly, residents and owners might take your services for granted. However, a single misstep can unleash a torrent of online negativity, potentially damaging your reputation.

How do you silence the unhappy reviewers and ensure your online presence reflects the excellent service you provide? The answer lies in the power of numbers – specifically, the sheer volume of positive reviews.

This post explores a simple mathematical strategy to drown out negativity and solidify your reputation as a top-tier property management company.

The Power of Volume in Online ReviewsProperty managers know the sting of a bad online review. One disgruntled resident with internet access can seemingly erase all your hard work.

The simple truth of the matter is that online star ratings are a numbers game. Your coveted Google star rating is simply the average of all your reviews. This means the more reviews you have, the less a single negative review can drag down your overall score.

Imagine two scenarios:

• Company A boasts a perfect 5-star rating, but only has 5 reviews.
• Company B also has a 5-star rating, but with a much more robust profile of 79 reviews.

Now, picture both companies receive a single negative 1-star review.

• Company A’s pristine rating takes a significant hit, plummeting to an average of 4.3 stars.
• Company B, on the other hand, remains virtually unscathed, with their average rating staying put at 5 stars.

Volume is your friend! By consistently encouraging satisfied residents and owners to leave positive reviews, you create a buffer against future negativity.

The Power of Positive ReviewsWe’ve established that review volume plays a crucial role in safeguarding your online reputation. But positive reviews are the real game-changers. Our research revealed a stark contrast between high-performing and low-performing property management companies when it comes to review sentiment.

High performers are champions of positivity. They consistently garner five positive reviews for every single negative review they receive. This impressive ratio demonstrates their commitment to exceeding client expectations and fostering positive experiences.

Low performers, on the other hand, struggle to generate positive buzz. They only manage 0.8 positive reviews for each negative review. This imbalance paints an unfavorable picture and can deter potential clients who rely heavily on online reviews.

What This Means for YouTo maintain a healthy 4-star average rating, you’ll ideally need four positive reviews to counteract the effect of every single negative review.

This highlights the importance of proactively cultivating a culture of review generation. By reminding happy clients about the value of their feedback, you can steadily build a positive online reputation that reflects the quality of your services.

The Takeaway: Don’t be afraid to encourage positive reviews. The more reviews you have, the less a single negative review can impact your overall rating.

Beyond Reviews: Building Trust Through Quality ServiceWhile online reviews are undeniably a powerful tool for property management companies, it’s important to remember they’re just one piece of the puzzle. Building a stellar reputation requires a multifaceted approach.

Here are some key considerations:

• Exceptional Customer Service is Paramount: Positive online reviews often stem from consistently exceeding resident and owner expectations. Focus on delivering exceptional customer service by being responsive, attentive, and proactive in addressing concerns.
• Prompt Communication is Key: Timely responses to inquiries and complaints demonstrate respect for your clients and a commitment to resolving issues efficiently. Don’t let communication gaps fester – address concerns promptly and professionally.
• Deliver on Your Promises: Marketing materials and initial interactions set expectations. Ensure your services consistently live up to what you advertise. A significant gap between what’s promised and what’s delivered can lead to frustration and negative online reviews.

Remember, trust is a two-way street. By prioritizing exceptional service, clear communication, and delivering on your promises, you’ll cultivate a loyal client base more likely to leave positive reviews and become vocal advocates for your company.

In the next and final installment of our series on Online Reputation, we’ll tackle the burning question: how to effectively Request Reviews from your satisfied residents and property owners.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. 99871 The post Beyond AIDA: Combating Negative Reviews – Part 3 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Online reputation management goes beyond simply monitoring and responding to reviews. It’s a strategic approach to cultivating trust with potential clients throughout their journey. Our research shows that companies prioritizing online reviews boast a 16% advantage in exceeding industry averages for customer lifetime value. But this correlation isn’t just about attracting “better” clients with high star ratings.

In the last blog post, we explored the customer journey and how reputation plays a pivotal role in the crucial Desire stage. We established that while star ratings grab initial attention, a holistic online reputation encompassing various aspects significantly influences prospective property management clients.

Today, we delve deeper into the world of Online Reputation Management. Here, we’ll explore strategies to proactively manage your online presence, foster trust with potential clients, and ultimately convert them into loyal customers.

Online Reputation isn’t about manipulating star ratings. Instead, it’s a comprehensive system focused on:

• Customer touch points: Every interaction with clients is an opportunity to gather valuable feedback and cultivate positive experiences.
• Follow-ups: Proactively seeking feedback demonstrates your commitment to continuous improvement.
• Analysis of reviews: Both positive and negative reviews offer valuable insights. Analyze them to identify areas of strength and opportunities for improvement.
• Addressing negative feedback: Don’t shy away from negative reviews. Listen attentively, acknowledge concerns, and outline steps taken to address the issues raised.

The key is building trust. By prioritizing online reviews, actively soliciting feedback, and demonstrating a genuine commitment to improvement, property management companies can position themselves as trustworthy and reliable partners for property owners.

So, what exactly do consumers care about when evaluating online reviews? Let’s explore the data and uncover the secrets behind a strong online reputation.

Decoding Consumer Trust: What Really Matters in Online ReviewsStar ratings are like a neon sign in the online world, grabbing attention quickly. But when it comes to choosing a property management company, potential clients don’t stop at the first flashy storefront. They dig deeper to understand the whole picture. Our research sheds light on what truly matters to consumers when evaluating online reviews.

1. Star Rating and Review VolumeThere’s no denying the power of a stellar star rating. Nearly half (49%) of consumers consider a minimum four-star rating a prerequisite before even considering a local business. But a high rating alone isn’t enough. Think of it as a delicious-looking restaurant facade – consumers also want to see enough people lining up inside to feel confident about stepping through the door. According to BrightLocal, they expect at least 40 reviews to validate an average star rating.

Taking a Peek Inside Our DataWe analyzed over 400 property management companies and discovered some interesting insights:

• The Good News: 56% of these companies boast a four-star rating or higher on Google.
• The Bad News: A concerning 47% have 40 reviews or less. This means they might be getting filtered out by nearly half of potential clients who rely on online validation.

However, your online reputation doesn’t exist in a vacuum. To stay competitive, keep an eye on your competitors’ review volume and star ratings. If they have a similar star rating but significantly more reviews, you’ll need to work on increasing your own review count to truly stand out from the crowd. If you have more reviews, it’s only important to stay ahead.

2. Review Content and RecencyStar ratings are a starting point, but savvy consumers crave more depth when evaluating property management companies. They want to hear the stories behind the numbers – the real-life experiences of past clients. Here’s what our research reveals about the content and recency that truly resonate with potential clients:

Quality over QuantityConsumers aren’t easily swayed by a string of star ratings without substance. They dive deeper, reading an average of seven reviews before placing their trust in a business. This highlights the importance of encouraging detailed reviews from satisfied clients.

Freshness MattersTime is of the essence in the online world. Potential clients want a snapshot of the current state of your company. 52% of consumers prioritize reviews posted within the last month, placing greater weight on recent experiences.

Think of it this way: Imagine a once-beloved restaurant that’s lost its charm. You wouldn’t base your decision on glowing reviews from years ago. The same logic applies to property management companies.

Striking a BalanceConsumers are wary of extremes. A barrage of five-star ratings with generic praise can raise suspicion of inauthenticity. Similarly, overly critical reviews might be dismissed as outliers.

The sweet spot lies in encouraging genuine reviews, both positive and negative. Honest feedback, even if critical, demonstrates transparency and a willingness to address shortcomings.

In our analysis of property management reviews, we observed a trend: The number of reviews with minimal content has grown over the past decade. While this aligns with the overall increase in review volume, it underscores the importance of cultivating detailed and informative reviews.

We’ve explored the significance of star ratings, review volume, content, and recency. But there’s one crucial element remaining: review responses. Our research sheds light on why this seemingly small action holds immense power for property management companies.

3. Review Responses88% of consumers say they care deeply about whether a business responds to reviews, both positive and negative. This highlights the importance of engaging in thoughtful conversations within the online review landscape.

Taking a Look at the DataOur analysis revealed a clear distinction between high-performing and low-performing property management companies in terms of review responses. High performers consistently respond to over half of the reviews they receive, demonstrating a commitment to open communication and fostering trust.

The Benefits of Responsive CommunicationBy taking the time to respond to reviews, you achieve several key benefits:

• Solidifying Trust: Prompt and professional responses, even to negative reviews, demonstrate that you value customer feedback and are dedicated to improvement.
• Building Relationships: Engaging in conversations with reviewers opens a direct line of communication, fostering a sense of connection and personalized service.
• Showcasing Expertise: Well-crafted responses allow you to highlight your company’s strengths and expertise, potentially swaying potential clients who might be on the fence.
• Improve Local Search Rankings: Google has confirmed that having and responding to reviews will help increase your business’s visibility.

Remember, responding to reviews isn’t just about damage control. It’s a proactive strategy for building trust, strengthening relationships, and ultimately converting potential clients into lifelong partners.

Building Trust Through Online ReviewsIn this post, we’ve peeled back the layers of what truly matters to consumers when evaluating property management companies through online reviews. We’ve moved beyond the initial allure of star ratings and delved into the power of:

• Detailed and informative reviews: Encourage clients to share their experiences, painting a vivid picture of your services.
• Recent reviews: Showcase the current state of your company by highlighting fresh perspectives from satisfied clients.
• Authentic review tones: Cultivate a culture of genuine feedback, welcoming both positive praise and constructive criticism.
• Proactive responses to reviews: Demonstrate your commitment to open communication and building trust by thoughtfully addressing all reviews.

By prioritizing these elements, you can transform online reviews from a passive metric into a powerful tool for attracting new clients and solidifying your reputation as a reliable and trustworthy property management partner.

Tune in soon for part 3: “Combating Negative Reviews”.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. 29493 The post Beyond AIDA: What Consumers Care About Reviews – Part 2 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Property Management Landing Pages to Bring in More BusinessWhat’s the purpose of your landing page?Landing pages for property managers are different than website pages. They are out there on their own – serving a specific purpose and leading visitors to the desired action you’re hoping for, whether it’s a contact, a request for more information, or a purchase. You send people to your landing page through an email, a newsletter, an ad, or any link you manage to get out there in the digital space.

You don’t have a lot of time to capture the attention of your landing page visitors. If they don’t find value as soon as they land there, off they’ll go. Your landing page needs to be optimized for conversions so that prospects will stick around and engage with your brand.

Landing Pages for Property ManagersWhen it comes to effective landing pages, these should be the questions you’re asking yourself:

• What’s on a landing page?
• What should a landing page look like?
• How can you use them to generate leads and close your business?

Every Landing Page Needs a PurposeAs we dive into the details of landing pages for property managers and how to use them, let’s not forget the WHY.

WHY work with landing pages when there’s a dizzying number of digital marketing tools and platforms you can use?

Because the landing page serves all those other marketing tools. The purpose of a landing page is to gather potential customers.

Instead of directing prospects to the homepage of your website, which is designed for everyone, and is sometimes an easy place to get lost, you’re sending them to a page that is specifically and exclusively targeted to them: owner leads.

Frank Gorshin, an actor from back in the day, said something that’s pretty relevant to thinking about your landing page:

Have you ever gone fishing?

If you want to catch trout, you need to use trout bait. Otherwise, you’ll catch a lot of other fish. But not that trout.

You need a fine and specific bait. Then, you’ll quickly catch the fish you want.

If you’ve never fished or struggled with finding the right bait, you might prefer to think about your landing page as a traffic cop. When you’re at an intersection with cars and pedestrians and bikers coming and going in and from multiple directions without a stop sign or a traffic light, you need some direction.

That’s where the traffic cop comes in – standing in the middle of the busy intersection, probably with a whistle, waving people through, and holding up a hand to keep them in place.

Your website homepage has a lot of traffic moving in different directions. You’ve got tenants looking for their portal so they can pay rent or make a maintenance request. You’ve got current owners showing up to read your latest blog post. There are renters looking at your available properties. There’s a lot happening.

You don’t want your potential leads showing up and getting lost.

You don’t want them sharing space with all those other audiences your website is set up to serve.

So, you have your landing page. There are very limited things your landing page visitor can do when they arrive on that site. They’ll call you or email you. They’ll fill out a contact form. Those calls to action are specific and they’re targeted to the visitors who arrived on your landing page for a reason.

It’s a finer bait. Your landing page results in a shorter wait when it comes to reeling in new business.

Before Getting Started on Your Landing PageAn effective landing page will convince your prospect – a landlord or a real estate investor searching for a local property management company – that you are the best in the area.

Your landing page will tell them that you’re the only company they want to work with.

This is where you showcase who you are, what you do, and why you’re different.

The ultimate purpose of your landing page is to persuade landlords and owners that you’re the best choice when it comes to managing their investment property.

We’re going to take a look at the components of a good landing page and what you’ll need to include when you’re making your case.

This isn’t rocket science. But it is pretty nuanced, depending on your market and your perfect client.

So before you dive into a landing page investment, let us suggest that:

1. You know your market. Like…really know your market. Better than any of your competition.
2. You know your perfect client. Are you focused on bringing self-managing landlords into professional management? Do you hope to convince owners who have their homes managed elsewhere to come work with you instead? Are hands-off investors your perfect clients? Out of state owners? People who have just bought their first rental home?

You need to know what is renting in your area and who is renting those homes out.

Even more important – you need to know who you want on your real estate landing page. Take some time to figure this out if you haven’t already.

List of Property Management Landing Page Must-HavesWe put together a list of what you need for a good landing page.

There’s a lot of room for creativity here. But, there are also a few standard and consistent items that have to show up.

1. Landing Pages Need to Reflect Your Services and AreaWhere in the world are you?

The first thing a landing page visitor needs to notice in a landing page is the background, which must reflect where you are.

Use photos. Maps. An image of some iconic landmark or monument that your city is known for.

If you’re a property management company in Sarasota, Florida, for example, you might want a beach scene. If you’re working in Charlotte, North Carolina, consider putting an attractive photo of the Charlotte skyline as the background on your landing page. A Las Vegas management company might want a photo of The Strip at night, with casinos looming large against a backdrop of desert mountains.

This kind of imagery will immediately attach your company to a service area. Your visitors will know they are in the right place.

Every landing page needs a title.

These do not have to be long, flowery, or clever titles.

In fact, it’s better to keep things simple and straightforward:

“Sarasota Property Management.”
“Charlotte Property Management.”
“Property Management in Las Vegas, Nevada.”

All of those work. People arriving on your landing page will instantly know where you are and what you do. They’ll see it and they’ll read it.

If leads are coming to this landing page from Google Ads, and you’re targeting multiple cities, you can use dynamic text to make your page hyper-relevant.

Congrats. Checklist Item No. 1 is complete.

2. Landing Pages Need a Clear Call to ActionContact.

That’s what you want out of a landing page.

You want prospective customers to see who you are, where you are, and what you’re about.

You want them to call you or message you or fill out a form that shares their own contact information so you can get in touch with them.

That’s it. That’s why you have this landing page.

This is the moment that they’re most interested in your services, and you want to reach them right away.

All of the components of the page are working towards this one goal.

Put your Call to Action above the fold. What does above the fold mean?

It means that as soon as they land on your page, the option is right there – to call you or message you or fill out a form. They don’t have to scroll down the page to find the instructions on how to get in touch.

CONTACT US should be right there on the screen in front of them. Immediately.

Don’t set that Call to Action once and then forget about it.

Ideally, you’ll repeat your phone number periodically as the visitor scrolls down the page, so it’s almost always in view. Have a repeat of the contact form at the end of the page, in case the visitor reads everything you’ve got to say.

Be Concise and Lose the FluffMinimal text is better. When we’re talking about educational blogs or informative videos, we want to be a bit wordy. There’s a good opportunity to put everything you know onto the screen or the page so your prospects know you’re the authority on property management in their market.

But, they’re not on your landing page to learn stuff. They’re on your landing page because they need help and you are ready to help them. So let’s not lose them with lengthy paragraphs about the latest rental laws. Let’s not give them too much to overthink when they’re trying to decide whether professional property management is the way to go.

Let’s prompt them to get in touch with you. That is why we’re creating a landing page. There’s a time and a place for the videos, the education, and all the expertise that you have to offer your potential clients. On the landing page, however, less is more. They know something about you already, or they wouldn’t be here.

3. The FormYes, we’ve talked about the Contact Form as being part of your Call to Action.

But it’s also a thing on its own.

The Contact Form has to show up again – below the fold.

Why is The Form so important? Because it allows you to prepare for your client contact in advance. Instead of picking up the phone and having the potential client right there, you have a form with some of their most interesting information. You get their name, their phone number, their email address. Most importantly, you have that field where the prospect can tell you what’s on their mind or why they’re reaching out. Maybe they’ll explain the trouble they’ve had with tenants. Or, they’ll talk about investing in your market for the first time.

That’s valuable information that you can use to prepare for your first in-person contact.

Always include The Form on your landing page. Always ask them to fill it out.

4. Why You and Why Now? Your Landing Page Needs Value PropositionsFind a concise, attention-grabbing way to state your value propositions.

Why YOU? Why should they choose your property management company instead of all the others in your market?

This can be difficult to articulate. But a good landing page will do it.

Remember – we don’t want to chase them off the page with large blocks of texts and endless paragraphs saying all the same things about how you collect rent on time and respond to maintenance.

All property managers claim to do that.

What do you do that others don’t? And, how can you explain it in just a few words?

We recommend well-crafted bullet points. Provide four different things that your perfect client is looking for. Show them how you provide those things and why you do it better than anyone else.

Your value propositions need to talk about the benefits of working with you. They need to feel their problems moving out of their hands and into yours.

Focus on solutions to their problems. You always want to speak to the pain points of your prospects. They need to be clear, concise, and easy to understand. It gives them a great reason to contact you.

Not Sure About Your Best Value Propositions?Let’s Think About Three Things:

1. What are your ideal client’s pain points, and how does your property management company solve them?
2. What sets you apart from your competitors in the way those problems are solved?
3. What objections do you need to overcome (i.e. management fees are too expensive)?

5. Let Your Reputation Speak for Itself You need to sell yourself on your landing page.

Even better, though, is when other people do the selling for you. This is often referred to as social proof.

This is where we recommend a client testimonials widget. It can help your landing page feel more authoritative. Let your best customers tell your future customers why they need to work with you. Always make sure your phone number and your contact form show up near those testimonials. Someone might read the right review – one that really hits home – and they’ll want to call you right away.

At Fourandhalf, we love working with our testimonial widget from Reputation.com. Our clients love that it features live, verified reviews of your company. This lends a lot of third-party validation to your prospects.

Showcase at least one huge testimonial that makes you proud. Or, ask us for a widget that helps you stream ongoing reviews so your prospective clients know what your customers are saying about you right now.

What Have We Learned Here?You should be ready to put together an effective and interesting landing page now that you know what it’s here to do.

Your landing page targets your message to your prospects and ignores all the other constituencies that your website has to serve. The only audience for this page is the potential landlord client or real estate investor who might be interested in your services.

Start by ensuring they can easily contact you, prominently featuring a form that gathers valuable information. Highlight your unique value propositions in a way that sets you apart from competitors, using well-crafted bullet points and focusing on your client’s pain points and solutions.

Lastly, let your reputation shine through testimonials or a review widget. Your landing page should target your message directly to prospective clients, encouraging them to take the next step and reach out. It’s one important part of your overall marketing strategy.

Fourandhalf is Here to HelpNo time to put together your own landing page?

That’s why we’re here. If you have any questions about landing pages or digital property management marketing in general, you know you can contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. 79198 The post 5 Elements of Killer Landing Pages for Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Do you remember Alec Baldwin’s iconic line “Always Be Closing” from the movie Glengarry Glen Ross?

While it resonates with sales teams to this day, it paints an incomplete picture of the customer journey. There were actually two acronyms on the board in that scene, the other being AIDA. Not quite as catchy as ABC, but a good starting point for the customer journey.

AIDA stands for Awareness, Interest, Desire, and Action. It’s a framework that describes the stages a customer goes through from being aware of a product or service to making a purchase decision. Understanding this journey can help businesses build better relationships with their customers and ultimately improve their reputation.

The AIDA framework implies a linear progression – if we can capture Attention and Interest at the right time, create Desire in our potential customers, and make it easy for them to take Action – then we have successfully completed the buyer’s journey.

However, as said above, it’s just a starting point. We find that in reality, the customer journey is more nuanced. The AIDA model, while valuable for understanding the core stages, fails to capture the complexities of how modern consumers navigate the journey. That’s why we recommend using a customer-centric perspective instead.

Let’s dive deeper into the customer-centric perspective and explore how reputation significantly impacts their decisions, particularly in the crucial Desire stage before they take Action.

Beyond the Linear Funnel: Understanding the Customer JourneyAs mentioned, the traditional AIDA model (Attention, Interest, Desire, Action) paints a linear picture of the buyer’s journey. But modern consumers don’t usually follow a straight path. They enter, leave, and re-enter the funnel at their own pace, researching and comparing options before committing.

Imagine a leaky, non-linear maze instead of a neat funnel. This better represents how customers enter, leave, and revisit various stages at their own pace, sometimes lingering in the “problem awareness” or “interest” phases for extended periods before taking action.

It’s tempting to view this journey through a company-centric lens, focusing on stages like “awareness of our product” and “desire for our service.” That’s how the traditional AIDA framework has often been viewed.

What a Customer-Centric Approach Looks LikeHowever, a customer-centric approach offers a more valuable perspective:

• Awareness: They recognize they have a problem, but solutions remain unclear.
• Interest: They actively research ways to solve their problem.
• Desire: They identify potential solutions and shortlist options.
• Action: They choose a solution and become a customer.
• Loyalty: They remain satisfied and continue using the chosen solution.

By shifting our perspective, we understand that our company is just one option among many for customers. The journey isn’t about self-promotion; it’s about helping potential clients solve their problems in the best way possible. This customer-centric approach, while seemingly subtle, can have a transformative impact on your business.

Now, what does this have to do with reputation?

The Desire Stage: Where Reputation Shines, But Doesn’t Solely DecideImagine a property owner facing a challenging tenant situation. They’ve finally decided to seek professional help (Desire stage).

This is where reputation matters the most. It’s how they’ll decide which property management company to call first.

The owner’s journey starts with a basic online search, like “property managers near me.” This generates various results, including ads and Google Local.

At this stage, the owner is going to start clicking on business profiles and reading reviews.

There are so many different company profiles and they’re not going to sit there, clicking every single one. They’ll explore individual profiles and delve into reviews, encountering the “review roulette”:

• A company with a perfect 5-star rating but limited reviews.
• A company with a slightly lower 4.7-star rating but 100 reviews.
• A company with a 4.5-star rating and 400 reviews.

Which one should they call? They’ll have to use their gut to figure out what ratio of average star rating and number of reviews they feel is good enough to justify further exploration. Each scenario presents a unique picture, and the owner must weigh perceived reputation based on the available information.

Eventually, they’ll find a way to overcome this mental challenge and end up with a shortlist of companies worthy of further inspection.

Decoding the Shortlist: How Owners Evaluate Property Management CompaniesHaving narrowed down their options, owners embark on a deeper evaluation of shortlisted property management companies:

Scrutinizing the Details: They meticulously examine each company profile, considering:

• Years in business: Established companies often inspire greater trust.
• Review recency: Recent reviews offer insights into current performance.
• Review content: Both positive and negative reviews provide valuable information. (Seeking out negative reviews can reveal potential downsides and how the company handles challenges.)

Examining Responses: They analyze how companies respond to reviews, gauging their:

• Customer service approach: Professional and prompt responses build confidence.
• Engagement with feedback: Addressing both positive and negative reviews demonstrates commitment to improvement.

Expanding the Investigation: Your online reputation goes far beyond star ratings. It encompasses all aspects of your online presence, including reviews, responses, website content, and broader search results. This holistic image significantly influences prospective customers’ perception and ultimately guides their decision-making.

Building Trust and Standing Out: Actionable Steps for Property ManagersYour online presence significantly impacts how potential customers perceive your property management company, and influences them along their customer journey. Here are actionable steps you can take to build trust, stand out from the competition, and attract property owners in the crucial Desire stage:

Regularly Monitor and Manage Your Online ReputationTo actively manage your online reputation, set up alerts to stay informed about online mentions, reviews, and social media conversations. This allows you to respond promptly and professionally to both positive and negative feedback. When responding, acknowledge concerns, express gratitude for feedback, and aim to reply within 24-48 hours, showcasing your commitment to excellent customer service. Be transparent and professional in your responses, acknowledging any mistakes and outlining steps taken to address the concerns raised. This demonstrates your dedication to providing exceptional service.

Encourage and Address Customer ReviewsTo cultivate a strong online reputation, actively solicit positive reviews from satisfied clients on platforms like Google My Business, Yelp, and relevant industry websites. This strengthens your credibility and visibility. We’ll talk more about asking for and responding to reviews in future parts of this series.

Maintain a Professional and Informative WebsiteDon’t underestimate the impact of your website on your online reputation. Investing in a user-friendly design is crucial, ensuring it’s easy to navigate and accessible across various devices, like desktops, tablets, and smartphones. This allows potential clients to seamlessly access information and connect with your company. But your website shouldn’t just look good; it should provide valuable content. Offer informative content that showcases your expertise, such as blog posts addressing common property management concerns, FAQs, and downloadable resources like tenant handbooks or guides to local regulations. Finally, don’t be afraid to highlight your unique selling proposition (USP). Clearly communicate what sets your company apart from the competition, whether it’s specialized services, competitive pricing, or a commitment to sustainability.

Conclusion: Cultivating an Online Presence that ConvertsThe customer journey isn’t a linear path, but a complex maze where reputation plays a critical role, especially in the crucial Desire stage. As potential property owners research and evaluate options, your online presence becomes a key battleground.

Remember, star ratings are just one piece of the puzzle. They might initially grab attention, but a holistic online reputation encompassing reviews, responses, website content, and broader search results ultimately shapes prospective customers’ perception.

By taking actionable steps like:

• Regularly monitoring and managing your online reputation
• Encouraging and addressing customer reviews in a professional manner
• Maintaining a professional and informative website

You can build trust, stand out from the competition, and position your company as the clear choice for property owners seeking reliable and trustworthy partners.

So, take charge of your online narrative today, and watch your business thrive in the ever-evolving digital landscape! By embracing a customer-centric approach and focusing on building a strong online reputation, you can transform the way potential clients perceive your property management company and ultimately convert them into loyal customers.

Tune in soon for part 2: “What Consumers Care About Reviews”.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY NameThis field is for validation purposes and should be left unchanged. 54530 The post Beyond AIDA: Online Reputation and the Customer Journey for Property Management Companies – Part 1 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Networking is a crucial aspect of being a property manager, whether you are just starting out in the industry or have been in it for many years. It serves not just as a means of generating new business but also as a means for sharing insights, trends, and strategies within the property management industry.

Most property management professionals are familiar with offline networking, like attending conferences. However, engaging in online networking offers significant benefits as well. The most effective networking strategy encompasses both offline and online methods.

This article aims to explore the dynamics of both offline and online networking, unpacking their unique benefits and challenges, to offer property managers a comprehensive guide on effectively navigating these essential professional pathways.

The Power of Networking for Property ManagersAt its core, networking is about relationship building. For property managers, cultivating strong relationships with peers, mentors, clients, and other industry professionals can open the door to a wealth of knowledge and opportunities. These relationships not only provide a foundation for mutual support but also facilitate the exchange of valuable insights and advice that can significantly impact decision-making processes and the overall success of property management endeavors.

Networking is also an opportunity for referrals in the property management industry. Establishing a robust professional network can lead to new business opportunities that may not have been accessible otherwise. Whether through a casual conversation at a conference or a strategic online connection, each interaction has the potential to generate leads, partnerships, or client referrals.

Offline Networking StrategiesAttending traditional networking events such as industry conferences, seminars, and meetups is invaluable for residential property managers. These events offer a rich environment for exchanging ideas, acquiring new knowledge, and staying abreast of the latest trends and technologies in property management.

They also serve as a platform for building and reinforcing professional relationships in a face-to-face setting, which can significantly enhance trust and rapport. Additionally, these gatherings allow professionals to showcase their expertise, share success stories, and learn from the experiences of their peers, contributing to both personal growth and business development.

Organizations for Property Management CompaniesFor property managers, the most notable professional groups include the National Association of Residential Property Managers (NARPM) and the National Apartment Association (NAA), especially their local chapters. These organizations offer events, meetings, and resources, presenting a distinct advantage – the chance to connect with others and gain new insights through mutual learning.

Tips for Effective In-Person NetworkingNetworking in person can be incredibly rewarding, offering immediate feedback and establishing a personal connection that is often missing in online interactions. Here are some tips to make the most out of your in-person networking opportunities:

• Prepare an Elevator Pitch: Have a clear, concise description of what you do and what value you bring to the table. This should be a quick summary that you can deliver in the time it would take to ride an elevator with someone.
• Use Open-Ended Questions: Start conversations with questions that require more than a yes or no answer. Questions like “What brings you to this event?” or “What projects are you currently working on?” open the door to more engaging discussions.
• Practice Active Listening: Show that you are engaged and interested in the conversation by nodding, maintaining eye contact, and asking follow-up questions based on what the other person says. Active listening can turn a casual conversation into a meaningful connection.
• Share Your Passion: People are drawn to enthusiasm. Share what excites you about your work or the industry. This can make the conversation memorable and help build a connection based on shared interests.
• Bring Business Cards: Even in a digital age, a business card is a quick way to exchange contact information. Make sure your cards are up-to-date and include your LinkedIn profile or other professional social media accounts.
• Follow Up: After the event, reach out to the people you met with a personalized message. Mention something specific from your conversation to jog their memory. This could be a LinkedIn connection request, an email, or even a phone call. Following up shows you value the connection and opens the door for future interactions.

Remember, the goal of networking is to build relationships, not just collect contacts. By entering each interaction with a genuine interest in the other person, you’re more likely to create lasting professional connections.

Online Networking StrategiesSocial media platforms such as LinkedIn, Facebook, and X have transformed the way professionals connect, share knowledge, and advance their careers.

Where to Network OnlineFor property managers, LinkedIn serves as a digital stage for showcasing achievements, sharing industry insights, and connecting with both peers and potential clients. LinkedIn also has professional groups you can join, including National Association of Residential Property Managers, Residential Property Management Professionals, and Tech Savvy Property Managers.

Facebook groups offer a more casual setting for asking advice, sharing experiences, and finding resources related to property management.

Connecting with local National Association of Residential Property Managers, or NARPM, chapters is easy to do on Facebook. You can stay on top of local news, get some information on new local regulations and learn about regional events. These pages are often active, and it would be a good idea to like the groups even if you are not a member. There are interesting nuggets of information available, and you can get a glimpse of how other property managers work and stay organized.

A few of the notable NARPM Chapter Facebook Pages:

NARPM Orlando

NARPM Santa Clara

NARPM National

NARPM Florida State

A few Facebook pages with educational content:

Fourandhalf

Appfolio

Buildium

X, with its rapid-fire format, is excellent for staying up-to-date with industry news, participating in relevant conversations, and establishing thought leadership in real-time.

Participation in online forums and communities dedicated to property management is another invaluable strategy. Websites like BiggerPockets and Property Management Insider serve as gathering places for experts and newcomers alike, offering a wealth of information on everything from troubleshooting tenancy issues to strategic investment advice. By engaging in these communities, property managers can gain insights, ask questions, and build a reputation as knowledgeable and helpful industry participants.

Investor NetworkingWhile most of this blog post is talking about peer-to-peer or B2B networking, both online and offline networking can also help with building relationships with investors. Investor networking for property management companies plays a pivotal role in fueling growth, securing new contracts, and fostering industry relationships that can lead to advantageous partnerships.

In offline settings, attending real estate investment meetings, conferences, and local business gatherings can be immensely beneficial for property managers wanting to connect with current and potential investors. These in-person opportunities allow for direct engagement, enabling property managers to effectively communicate their value proposition and build trust through face-to-face interactions.

Online, leveraging platforms like LinkedIn, real estate investment forums, and specialized investment groups can help property managers showcase their expertise, share success stories, and engage with investors worldwide.
By actively participating in discussions and publishing insightful content, property management companies can attract investors looking for reputable managers to handle their property investments, thereby broadening their network and opening new avenues for business development.

ConclusionThe fusion of traditional, face-to-face networking, and the dynamic capabilities offered by online platforms such as LinkedIn, Facebook, and X provides a comprehensive approach to building professional relationships. By engaging in conversations, sharing insights, and participating in industry events, both offline and online, property managers can extend their reach, gain valuable knowledge, and establish themselves as influential figures within the property management community. It’s clear that those who invest time and effort into networking are better positioned to capitalize on opportunities, overcome challenges, and drive their careers and businesses forward in this competitive industry.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 51358 The post Networking for Property Managers: Offline versus Online appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

At Fourandhalf, we work with hundreds of property managers to help them increase the online presence of their property management company and one question we’re frequently asked is: “Should I have a pricing page on my property management website?”

There are a few different ways of answering this question, with strong pros and cons on either side of the argument. In this blog post, we will explore the pros and cons relevant to property management websites and provide our recommendations on the best course of action.

Pros of Including a Pricing Page on Your WebsiteThere are four main benefits to including a pricing page on your property management website, from establishing trust with prospective clients to enhancing your website’s performance in search results. By understanding these pros, you can make an informed decision that not only supports transparency but also strategically benefits your business in several key areas.

Increased Trust and CredibilityOne of the foundational elements of a successful business-client relationship is trust. By including a pricing page on your website, you provide clear, upfront information about the costs associated with your services. This transparency helps build credibility with prospective clients who appreciate knowing what to expect financially, thereby reducing the uncertainty and skepticism that often accompanies hidden or unclear costs.

Improved Lead QualityDisplaying your pricing helps in attracting the right kind of leads. When potential clients can see the cost of your services, those who proceed to contact you are more likely to be within your target audience and ready to engage at your price point. This saves time for both parties and increases the efficiency of your sales process by filtering out leads that are not a good fit in terms of budget.

Enhanced User ExperienceA user-friendly website is critical, and a key component of your website is the ease of access to important information. A pricing page helps meet this need by allowing potential clients to easily find and understand cost-related information. This can significantly enhance the user experience, making visitors more likely to stay on your site longer and even proceed to other sections after viewing your prices.

SEO BenefitsIncluding a pricing page not only serves practical and relational purposes but also contributes to your website’s search engine optimization (SEO). Keywords such as “property management pricing” are specific and highly relevant to your target market. By optimizing your pricing page around these terms, you can improve your site’s visibility on search engines, attracting more traffic, and ultimately, more leads.

Cons of Including a Pricing Page on Your WebsiteNavigating the decision to include pricing on your property management website can be challenging. Many hesitate, fearing that it could deter property owners or simplify their value to just a number. Here are some potential downsides to consider when adding your property management fees to your website as part of your marketing strategy.

Potential for Client Loss to Lower-Priced CompetitorsWhen pricing is transparently listed, there’s a risk that potential clients might use these figures to shop around, comparing your rates with those of competitors. If competitors offer lower prices, you could lose potential business even before having the chance to highlight your unique value propositions and superior service quality. This aspect of consumer behavior necessitates a robust differentiation strategy beyond just competitive pricing.

Complex Pricing ModelsProperty management services can often involve complex, tailored solutions that aren’t easily captured in a simple pricing structure. If your services vary significantly based on property type, location, or specific client needs, it might be challenging to communicate this effectively on a pricing page. Misunderstandings can arise if clients expect a one-size-fits-all pricing that doesn’t apply to their particular situation, leading to frustration and potential distrust.

Constant Updates NeededIf your pricing structure is subject to frequent changes due to market conditions, regulatory changes, or internal business decisions, maintaining an accurate and up-to-date pricing page can become a cumbersome task. This page may demand significant ongoing attention and resources to ensure that the information provided always reflects current rates and terms.

Why We Recommend Including a Pricing PageDespite the potential drawbacks discussed earlier, we believe that including a pricing page on your property management business website is a strategic move that offers long-term benefits. The advantages far outweigh the challenges, particularly when looking at the overall impact on trust, client acquisition, and business transparency.
If you’re worried about potential clients being swayed by your competitor’s lower prices, consider whether you want to attract clients who only prioritize the cheapest option. By offering a great customer experience and top-notch property management services, you can justify your pricing and appeal to those who value quality over cost. In the long run, it saves everyone’s time (including your own!) to be transparent about pricing.

Tips for Effectively Implementing a Pricing Page for Property Management CompaniesHere are strategies to ensure that your pricing page not only provides necessary information but also enhances the user’s experience and supports your business goals. By implementing these strategies, your pricing page will not only meet the informational needs of your potential clients but also serve as an effective tool for converting leads into loyal customers.

1. Simplicity and Clarity: The pricing page should be easy to navigate and understand. Use clear headings, straightforward language, and a clean layout to present your pricing structures. Avoid industry jargon that might confuse potential clients. If your pricing is tiered or varies by service, consider using tables or charts to display the information in an organized manner that easily compares options.
2. Frequently Asked Questions (FAQ) Section:An FAQ section on the pricing page can address common questions and concerns related to your services and pricing structure. This not only helps in managing expectations but also reduces the workload on your customer service team by resolving common queries upfront. Include questions about additional fees, contract terms, and what happens if the scope of services changes.
3. Call to Action (CTA): Encourage visitors to engage further by including a strong call to action (CTA) on your pricing page. This could be an invitation to contact your team for a detailed quote, a prompt to schedule a consultation call, or a link to sign up for your services directly if your business model allows. Make sure the CTA is prominent and provides a clear next step for clients ready to move forward.
4. Highlight Value Propositions: Next to each price or service tier, highlight the specific benefits and value propositions. Explain what sets your services apart from competitors at similar price points. This helps property owners understand not just the cost but the value of what they’re receiving, which can justify higher rates compared to the competition.

ConclusionAlthough there are potential downsides, we firmly believe that a well-implemented pricing page is a vital component of a successful property management website. It not only assists in marketing and client acquisition but also aligns with modern consumer expectations for transparency and accessibility. However, it’s important to tailor your pricing strategy to fit your specific business model and customer base, considering factors such as service complexity and market positioning.

If you are a property manager looking to enhance your property management website or need personalized advice on implementing an effective pricing strategy, we’re here to help. Contact us today to learn how we can assist you in developing a website that not only meets your business needs but also attracts and retains your ideal clients. Let’s work together to create a transparent, informative, and user-friendly digital presence that stands out in the competitive property management market.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 99691 The post Tips for Marketing a Property Management Company: Should You List Your Pricing Online? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Welcome back to The Property Management Show.

On today’s episode, we’re talking to an expert on mergers and acquisitions, who has specific experience in property management. We’re talking to Scott Duke, of OpnRoad. He’s talking about the things that make a difference in the sale of a property management company. Your buyer and your profit will depend a lot on your contracts, your efficiency, and your team.

Introducing Scott DukeScott and his wife bought and ran a property management company in Revenstoke, Canada. They grew their company for seven years and then sold it for 10 times the amount of what they bought it for. The company was sold to Western Trust, a private equity company out of Utah. Before that, he worked at a property management company in Ontario. He has experience working with three-person companies and those that have a staff of 25.

His story of buying and selling that Canadian property management company is a bit of a cautionary tale.

When they bought the company, there were 30 properties under management. Out of those 30 properties, only six had proper contracts with the owners. It wasn’t a sellable asset when they took it over. But, what they really wanted to buy were the brand and the website, and otherwise it felt like they were starting from scratch. It was not a massive acquisition.

Scott realized that he thought property management meant taking care of people’s properties, but really, he was managing finances. It’s a cash in – cash out business model, and he had to make sure his owners had the money they needed for their mortgage payments.

One specific event triggered his desire to sell that company.

It was Christmas Day in 2016 or 2017, and he was under a trailer, defrosting pipes so the family living there could have water on Christmas. That’s when he realized he didn’t want to own the company anymore.

When the owner is under a trailer with frozen pipes, you know that the company relies too heavily on that owner.

So, he spent three years making it an acquirable asset. Scott wanted the company to be something that someone would want to buy.

The starting point? Making the business less dependent on Scott.

Making a Property Management Company Less Owner-Dependent Scott says it’s all mindset.

At OpnRoad, Scott and his team sell businesses. They work within all industries, but a lot of businesses they sell are property management companies. They all have to get to a certain size before they can be sold. So, he’s talking about owner dependency all the time.

How do you remove yourself from that dependency?

Scott says you will be trapped in your business until the business cracks through the million or two million revenue mark. Until that point, there’s just not enough cash in the business to pay to replace yourself. You are buying your time and you’re buying your freedom.

You want to focus on yourself as a business owner, not a business operator.

A lot of owners get hung up on the idea that no one can do what they do as well as they do it.

Scott tells entrepreneurs to embrace that. It’s true. But, it won’t be that way forever. The person you hire isn’t going to be as good as you on Day One. The training and the investment into that person makes them as good as you.

His slogan is this: Every Day a Step Away.

You’re getting a further step away from operating your business every single day.

How to Avoid Hiring Bad Apples

A lot of business owners worry about investing time and training into someone who may not work out. Having hired across 11 companies with a total of more than 200 staff, Scott understands that bad apples do get into the bunch once in a while. He has a specific model:

1. Be a good leader: Make yourself better. The people you attract to your company will be 70 percent as good as you are. Humans only want to work with people who are further along than them and achieving more. They want to grow to your level. So, to get good people, you need to be a better person. Invest in your education. Become a leader locally through volunteer work. Grow personally and develop professionally.
2. Have a good marketing package: You want to attract good people to your business. You’re posting a job into a competitive labor market. Stand out with marketing materials that will attract better people to your job and your company. Otherwise, you’re recruiting from other companies to find good talent.
3. Retain those good people: You want to keep your best employees by having consistent operations and good training within your business. You want a solid and positive company culture full of people who are happy to be there.

All of this stuff is hard, he cautions. But, the drudgery for the rest of your life is worse.

How do you avoid the employees you don’t want to work with? Scott has two ideas:

• Run them through psychometric testing. You can use different models like PSIU or Myers Briggs. This will ensure you have the right person for the job. If you’ve never done this type of testing before, go into that rabbit hole. You need to know personality traits. The type of person who excels at bookkeeping is different from the person who excels at leasing and showings. And, a lot of people don’t know themselves. Test to find out what they don’t know.
• Get them to do some work before you formally hire them. Offer trial work, for which they will be paid, and see how they do before you make an official offer.

When you get the A player, your life changes. So does your company.

What Property Management Owners Need to Know about SellingScott says the most important thing you can remember if you want to sell your company is that you’re selling contracts.

You’re selling future cash flow streams that come through contractual agreements. If your contracts aren’t in good shape, you don’t have a saleable company.

Contract quality matters. Recently, a sale was delayed by over 4 months because a property management company’s contracts were outdated, expired, or not even signed.

Term and contract length is the value of your business.

You need a good staff. You need a good reputation. But, your buyers will look at your contracts before they make an offer.

Scott also reminds company owners that you cannot sell to someone smaller than you. That won’t maximize your value. When you’re selling to a company that’s bigger, they’re probably more sophisticated and organized. If you don’t have everything in place, those companies won’t want to acquire you.

What about the team?Buyers are acquiring teams of people as well as contracts.

This is especially important now, when finding good talent is so difficult. Good operators of companies are hard to find. People will buy companies just to get management teams and technicians.

But, here’s the truth: company buyers are only going to care about bringing on the good team members. They probably already have good team. They won’t want your mediocre people.

Efficiency is important, too. When your profit margin is above average, you’ll earn above average on the sale. You’re showing that you’re more efficient and your buyer will know that they get to keep more of the money that the company makes.

That’s attractive.

Is technology the answer to efficiency?Technology is a big part of the efficiency bullet, especially when you’re looking at your profit and loss statement. Most property management companies can see that people are their biggest expenditure. Property management is a service business, and humans are delivering that service.

So, while technology can help you be more efficient and profitable, you need to have people in place who can leverage that technology. Otherwise, you’re just spending money on new software and systems and it’s not improving anything.

If your people aren’t being as efficient as they should be, they need to be trained better. Scott put everything on iPads so the team could take photos and notes and keep everything in the same place. Leases were digitized. He has nine people running a business that should require 20 employees. This is possible because they’re more efficient and they know how to use technology.

Preparing to Sell Your Property Management Business: Your TimelineOnce deciding to sell a business, an owner can sometimes just check out, feeling done with it all.

But, it should be the other way around. If you decide to sell and you want to maximize the value of your company, put in the work.

Scott says it depends on the timeline, and also acknowledges that most people don’t want to do the work. Property management companies are in high demand right now. So even if your business isn’t in the best shape, you’ll be able to sell it. Clean up your contracts and get the financials in order, and you can sell.

If you’re planning to sell within a year, just get the basics taken care of.

If you’re planning to sell in three to five years, it’s worth the effort to build that business into something even better. Then, sell it for more. You’ll make more money now, and as your business begins to work better, you’ll have more free time.

You can really move the dial if you have a few years to work on this. A million dollar company can increase their valuation by $200,000. If you’re a five million dollar company, expect to move that dial by $1.5 million or even $2 million. A 10 million dollar company might move the dial by $5 million.

Exit Strategies: Who Will Buy You?Scott has a guide that breaks down who the likely buyers are for your company. He offers earnings thresholds as an easy way to understand what’s possible.

• If you’ve got $250,000 in earnings, you’re probably selling to an individual owner/operator.
• If you have earnings that hit $500,000 to $1 million, you could sell to private equity firms as well as strategic buyers.
• Anything over $2 million in earnings, and you can sell to anyone.

You unlock different buyer classes as your company grows.

These buyers are not that different under the hood, but the way you earn money will be a bit different. A strategic buyer will hold your company for the long term. They’ll pay cash and some terms for the acquisition. Private equity firms are strategic. They’ll pay a bit more because they know they’re going to ultimately sell your company for more. You’ll get cash from them at the sale, and you may get a bit more later, when the private equity buyer sells the entire fund, which includes your company.

There are claw backs and contingencies when it comes to how many contracts the new company keeps. Scott reversed that, and actually got paid more by bringing in more contracts after the sale. This is not something everyone is willing to do, he cautioned, but since he had more free time, he was able to get out there and hustle up more business for the property management portfolio he had just sold.

Scott’s big pieces of advice as we conclude this interview are:

• Remove owner dependence and decide on the next strategic hire.
• Systemize and organize your business. If you haven’t implemented tech yet, do it now, and here’s a tip: look at companies that are five times bigger than you. What kind of software do they use? You should use that too, because those are the companies that will ultimately buy you, and if you make tech integration easier on them, they’ll pay you more.
• Keep your contracts up to date.
• Cultivate a good team.

Check out OpnRoad and their approach to mergers and acquisitions. If you have any questions about Scott and what we’ve discussed, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. 73579 The post Preparing Your Property Management Company for a Profitable Sale with Scott Duke of OpnRoad appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details



Amy Harrison is a sales and marketing copywriter from the U.K. and an expert in storytelling. After hearing her speak at a marketing conference and finding the information invaluable, we invited her onto The Property Management Show to talk about the evolution of marketing content and copywriting and how AI can help with persuasive copy, as long as you’re finessing the message with the information that only you have.

Amy Harrison’s BackgroundAmy thought she wanted to be a screenwriter for film and television, but quickly burned out at a young age and decided to pursue other things for a while. Then, she found her way back to writing and began working for a private investment firm that bought and sold online businesses. She describes it as flipping businesses, and that’s what brought her back into content writing and copywriting.

When she discovered the psychology around sales copywriting, she knew she wanted to help businesses tell stories and build credibility.

Amy says that her training as a screenwriter helped with her sales copywriting because it’s always important to write for the reader. If someone does not want to keep reading, you’ve lost them. You need to make sure they’ll read beyond the headline.

Tracking the Evolution of Sales and Marketing Copywriting Amy remembers the early days of copywriting, when everything was very SEO-driven and it seemed like her job was to cram every page full of keywords. The idea was to reach people and to provide as much information as possible. It was more of a transactional exchange.

People found there were better ways to have a sales conversation, and the content improved.

Businesses have realized that not all content needs to sound like sales and marketing content.

There’s a lot more awareness of what marketing and copywriting can do. The struggle, though, has not evolved much. Amy says that large companies with million dollar marketing budgets have the same desire as the freelance photographer with no marketing budget: to sell themselves and to stand out.

The process has evolved, but the problem sales copywriters are trying to solve is the same.

Umbrella Terms versus Storytelling with Copy and ContentHow is it done well?

While trying to talk about what makes them different, a lot of companies will end up sounding like every other business. They’ll use generic words, and they’ll try to talk about everything they do all at once.

Amy calls those umbrella terms, and she advises companies to be bold and to expand their comfort zones outside of those same words and phrases that are always used. The fear factor will sometime set in. You want to stand apart from your competition, but do you really want to be different?

Storytelling can be powerful, but it’s harder to write a story than it is to create a list of benefits.

You have to earn the right to get someone’s attention.

How do you do that? Amy asks us to think about it from the first piece of content – whether it’s a headline or the first few seconds of your video or the introduction in your email.

Speak directly to the person you’re trying to reach.

Think of yourself in a crowded room at a party. You’ll hear lots of conversations, and you’re not tuned into any of them. But if you hear your name, that will immediately get your attention. You cannot call your customers by their name in your content, but you can work harder to make the content more relevant. You want them to feel like you’re talking directly to them.

Think about how to write the conversation that your customer is having in their mind right now. What are they thinking about in that moment as they approach your blog or your email?

Here are a couple of examples:

• If you’re trying to attract a client who is moving, your headline might be “Should You Sell Or Rent Your Home?” It’s not a dramatic title, but it is a title that will speak directly to someone who is trying to answer that very question for themselves. You’re sparking an awareness that they need you.
• If you’re trying to attract people who are displeased with their current management company, your headline might be “Does Your Heart Sink When Your Property Manager Calls You?” Someone out there does experience that feeling when their manager calls. They’re going to read your blog.

Think about audience when you begin to tell your story. Are they new to renting out homes? Are they very frustrated? What’s already on their mind?

Get their attention and pull them along. This is like calling their name out in a crowd.

A story is only boring when it’s irrelevant, so think about what’s pressing and relevant to the people you’re trying to reach.

You can also use symptoms of the problem. What are some warning lights that your audience can see? You can suggest that there’s a problem they might not be aware of yet, and your copywriting can indicate that the problem is bigger than they think. That will get their attention, too.

Your prospective clients might not know what the problem is, but they’ll recognize the symptoms. A good headline might be: “Is Poor Maintenance Making You Liable?”

Artificial Intelligence and CopywritingWhen asked about AI, Amy says it’s a fantastic tool that’s interesting.

It can save time and spit out generic content. It cannot reach your audience like a person who understands the audience can.

AI can help people go from zero content to some content. But, when you read something generated by AI, there’s always that feeling that it’s not quite right. What it lacks is personal nuance.

AI will not help you write exceptional copy. And, it’s not thinking about your customer.

Think about how quickly you can recognize tone in a customer’s email. Your response has to have the context that matches that tone. As humans, we can do that in a second. All that nuance and understanding of psychology and how to apply it does not exist with AI.

You know your customer, your brand, your style, and your tone. Your content should sound like that.

AI is a good tool for getting started, but it’s similar to those umbrella terms. You’re not going to get anything original, and you’re not going to stand out if you use it on its own.

There’s a rhythm to human language that’s different from that of AI-generated language. Amy says it sounds to her like a 15-year-old is trying to write something formal and impressive.

Usually try to get AI to simplify things. If I had spent 10 minutes to simplify myself, better email.

Use AI to save time by gathering notes into a summary. But, when you’re building your messaging, don’t sacrifice that personal nuance that only you know. You need to hear the language that is used.

The summary that AI provides is often a good starting point. It’s better than looking at a blank page. If you can go ahead and rewrite what’s been provided, you can publish something that’s original and well-crafted. You need your own brain in order to complete good copy. You can ask AI to give you 10 benefits of property management. Some of it won’t be quite right. Some of it won’t be applicable. But, you can build off of that into something that’s a meaningful message for a potential client.

Writing Persuasive Copy without Over-SellingAmy reminds us that you can have quality content even if your purpose is not to persuade. Sometimes, content is just entertaining. It’s simply informational. The goal of persuasive content is to help someone feel, think, and ultimately do something. There’s an output you want.

Every piece of content we put out has to be quality, and it can also help to persuade. Answering a question is not necessarily persuasive copywriting, but it can give a customer confidence in you, which ultimately leads to them hiring you.

You don’t have to convince someone to do something in every piece of content. But, you do want all of your messaging to reinforce that you can be trusted. This will help them feel more at ease with you.

Always be driven by your customer’s needs. And don’t be too sales-driven. Think of yourself at a party. When someone talks about themselves for a full hour, do you want to talk to them again? Probably not. When someone asks you a few questions about yourself and then drops a recommendation or two, do you want to talk to them again? Probably yes.

You can have the same effect in marketing and content.

Whether you’re writing an email or FAQs, you need to ask what your customer needs to know in this moment in time. What do they need? If they’re about to sign a management contract, they need transparency and confidence.

AI can’t provide that. This comes from the research. From talking to customers. Companies that are brave enough to actively seek feedback will have better growth. Their marketing will sound different and speak to those customers.

This comes from listening.

Amy reads the freeform text from customer surveys and reviews and she lifts actual words from those reviews when she’s writing copy for customers. Those are huge insights. Amy calls it looking under rocks, and she said AI will always miss those golden moments and major message points.

This makes the difference in your marketing.

Reaching Multiple Audiences with ContentProperty managers are using their messaging to reach multiple audiences, and Amy says that the best way to reach those unique groups of customers is to keep things simple.

When they arrive on the home page of your website, make sure they know which adventure to choose.

Then, create different content for each different need.

The pain points will be different. The goals will be different. Someone renting out their first home will need different stories than someone growing a portfolio.

Think about it like this: If this person was standing in front of you, how would you speak?

You’d be more reassuring with the first-time landlord. You’d be prepared with facts and figures for an investor with a growing portfolio.

Show that your company has range. Then, offer the specifics. Provide stories that are relevant to each customer.

This takes extra work. But, the harder you work to give your customers what they need, the better your results. If you have any questions for Amy or you’d like some additional advice on how to improve your content marketing and sales copywriting, contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 14657 The post Persuasive Copywriting in the Age of AI appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

PJ Clay, the Director of Client and Partner Services at Rental Beast, joins us on The Property Management Show to discuss the company’s role as the rental MLS, and how they provide back-end technology to MLS associations across the United States and Canada.

We also discussed whether this type of technology can help or hurt property managers.

PJ says it helps.

Introducing Rental BeastRental Beast calls itself the rental MLS. It provides back-end technology to MLS associations in certain markets throughout the U.S. and Canada. The Multiple Listing Service (MLS) is highly customizable, but also built for the For Sale side of the real estate industry. Rental Beast knows that rentals are different. The process of renting is different from the process of buying and selling.

So, they built the technology that can integrate rental listings.

MLS members can add or search for rental listings.

The second piece of this technology is a productivity suite of tools making it easier for property managers and real estate agents to access lead generation, lead qualification, and rental applications. At the core of this technology is a very large database of rental listings. Members of Rental Beast have access to 12 million active listings in the U.S. and Canada at any given time.

Putting all the rental listings into one database is the central part of our technology. Members can get as close as possible to reaching 100 percent of their market.

Accessing Reliable Data and Listings for Rental MarketsRental Beast is currently working with MLS associations in cities like Boston, where they’re based, Chicago, Raleigh, Miami, Colorado Springs, Toronto, and other markets. They’re actively growing, too, because the demand for this platform has increased. With home sales still out of reach and unaffordable for so much of the market, people are renting. Having the technology for real estate professionals to make the rental process easier has driven that growth.

So, where does the data come from? Where do they gather their listings?

The rental market is fragmented. On the general MLS, you have 80 or 90 percent of available homes for sale on that site. Not all rental listings go onto the MLS, however. Some cities will include rentals on the MLS, but even then you’re only getting about 40 percent of the rental market listed.

Rentals come onto the database from a lot of different sources. The Rental Beast database integrates with property management software. So, platforms like Appfolio, Yardi, RentTech, and Buildium can use Rental Beast as a syndication destination. Any listings on those software sites can be shared with Rental Beast.

The other piece is more difficult and labor intensive. These are rental listings that aren’t found on the MLS or on any property management software sites. Staff at Rental Beast must find the listings and then make actual phone calls to owners and property managers to verify them.

PJ says it took 10 years to build the process the right way. They’re calling any listing that doesn’t come from the MLS or property management software. It’s a huge undertaking, but it’s necessary to avoid scams.

There are also a lot of details that are confirmed for those listings; they ask if there’s an agent compensation fee, what the showing instructions are, and how a tenant can access an application. These listings have to be updated every week or two, depending on the location. If they cannot get a verbal confirmation that the listing is active, it gets dropped from the database.

Are These Listings Professionally Managed?The majority of listings on Rental Beast are not managed by professional managers or real estate professionals.

They’re managed by the property owners themselves.

PJ believes this is hyper-local. He says that in Boston, property management firms aren’t as recognized or understood as they are in other markets. If a real estate investor owns a few properties, they might hire leasing agents to market the home and get the property rented, but then they take care of the day-to-day management. Even the National Association of Residential Property Managers (NARPM) has a limited presence in the northeast. Recently, they established a local chapter in Philadelphia, but that has only been in the last years.

Compare this to Arizona or other markets in the southwest U.S., he says, and things are different. There’s a larger percentage of listings that are professionally managed.

The estimate is that around 40 percent of the listings on Rental Beast are managed by small, mom-and-pop operations. We’re not talking about large, professional property management companies.

It could also be a terminology issue, PJ says. There may be someone who owns 100 doors, but they don’t see themselves as a professional property manager because they own those units.

Proximity can also be part of the difference. In markets like Texas and Atlanta, it can take an hour to get from one end of the city to another. There’s a concept called leasing and locating where real estate agents will get paid for showing a property without being there physically. The metro area is too spread out.

Is Rental Beast a Threat to Property Management as an Industry?With all these For Rent By Owner (FRBO) properties in the Rental Beast database and tools that make it easier for those owners to rent out a home, is Rental Beast dangerous to property managers who are trying to grow their business? It’s great to have a single source of data that’s potentially more complete, but there are also solutions being offered to an owner who may self-manage instead of hiring a professional.

PJ is quick to point out that Rental Beast is not trying to be a property management software tool. They understand that a lot of real estate agents hesitate before getting into property management because it’s so much work. Their platform, he says, is more about ease in listing a rental. No one could manage a property only using Rental Beast.

Realtors and agents on the For Sale side have been struggling to sell recently, and so they’re getting into rentals a little bit so they can preserve the relationship with their clients who might be ready to buy in a year or two. Plus, they know they can potentially list some rentals, so it’s a natural shift.

According to PJ, Rental Beast is not looking to replace property managers. They want to complement your work and make your business more efficient, especially in terms of listings. You can get access to a lot of listings, and you have an easier time listing the properties you’re renting out. You get extra syndication, and that drives more showings.

Recently, they worked with a property manager who listed 20 properties on the Rental Beast MLS in half an hour. That’s not something you’d be able to do manually. This is technology that was built for property managers in order to make listings more efficient and easy.

Rental Beast 2023 Market ReportWhat does the market look like? PJ suggests you check out the Rental Beast 2023 Market Report. He shared a few highlights:

• Rental prices will seemingly increase slightly. This depends on the market, and there’s really no consensus on what’s going to happen with rental values. The data and predictions Rental Beast has gathered say that there will be slight increases, generally.
• Supply is a big variable. There are additional multifamily units coming onto the market in 2024. Supply and demand will impact pricing.
• The sales side of real estate will remain unaffordable for most people, keeping the demand for rental housing strong.

There’s also a Sentiment Report, which reflects what people are feeling about the market and what might happen. They’ve found that 75 percent of the people surveyed believe rents will remain unchanged. Twenty-six of those surveyed believe applications for rental homes will decrease because fewer leads are coming through.

Concessions are also something to consider. Will you have to motivate renters to apply for your property?

The national median for concessions is around 18 percent. But, in some markets, 30 to 40 percent of active listings include some kind of concession. That’s artificially creating demand because it means nearly half the listings are offering some kind of concession. But, that’s not nationwide. For example, in Boston, only 8 percent of the active listings offer concessions.

For Rent by Owner Listings: Is This a Blue Ocean?As we discussed earlier, a lot of active listings are not professionally managed.

Could this be a blue ocean situation, where property managers can target these owners who are not using professional services right now? Ten years ago, property managers chasing FRBO business would have to pull ads from Craigslist or similar sites to get owner information. Or, you could buy databases from PMLeads.

If Rental Beast can capture so many self-managed listings, however, is there an opportunity for property managers to market themselves?

PJ says property managers are already using the platform to grab leads because of these advantages:

• They get as close as they can to 100 percent of a market’s listings. They’re typically at 70 or 80 percent of all active listings.
• All those listings are verifiable.
• Property managers can access owner information and get a sense of what type of property they’re renting out.
• Listings are updated regularly.

Maybe you specialize in one part of your city. The listings in the Rental Beast database can be sorted according to neighborhood. You can also set up alerts in the system so you know when a listing that meets your criteria shows up.

Closing Piece of Advice: Watch Your PricePJ says that based on the data he’s seen, the most important thing property managers can do now when renting out their properties is to be careful about where the rental value lands. He sees wildly fluctuating prices in a lot of markets. Remember that you’re competing with an entire market. So use as much data as you can.

If you’re interested in checking out the Rental Beast report, visit their website. You can also check out the Rental Expert Series, which is updated quarterly and includes several specific markets. To sign up to receive the next report, click here.

If you have any questions about marketing your property management, contact us at Fourandhalf. Thanks for joining us on The Property Management Show.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 45557 The post Rental MLS: A Threat or a Tool to Help Property Managers? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Two guests are joining The Property Management Show today, and they are Scott Brady and Garrett Brady from Progressive Property Management in southern California.

Scott has been on the show before, and tends to talk about forward-looking topics that involve challenging the status quo. Garrett is his son, and a big part of the company’s future.

The topic today is legacy planning, which can be rather difficult for property management companies. Scott and Garrett are sharing their journey and where they are.

Progressive Property Management Then and NowScott has a story that’s similar to many property management company owners. He began as a real estate agent and had a brokerage business. The recession arrived in 2010, and he wanted to be prepared for the next recession. So, he started Progressive Property Management in 2012. It became incorporated in 2015.

The company grew organically through marketing and relationships. Over the last 12 years, they’ve grown to about 1,000 doors under management. Garrett joined the residential side in 2018.

The business model is unique. It’s a virtual company that hires real estate agents to be property managers. Three years ago, they began an association management department, and now manage around 130 associations with about 7,000 owners, total. They use the same business model; people are hired to be off-site property managers for these communities. The team at Progressive takes care of all back office operations.

About three years ago, Scott was diagnosed with cancer, and he realized the company was not prepared to be sold or handed off. Decisions were made, and a choice had to be made: did Scott want to prepare the company to be sold, did he want to hire someone to run it while he lived off the cash flow, or did he want someone in the family to take it over?

He’s made a decision, and he and Garrett have been busy structuring their legacy plan over the last three years.

Garrett says the company – and the entire industry – was old school in 2018. There wasn’t a lot of technology, and everything was very regional. He’s been able to see the industry move from the stone ages to embracing modern technology. It’s a more appealing industry to join. So while it was a family business that he was happy to join, he now sees the value of real estate and how it interacts with so many other business sectors.

Legacy Planning: Starting the DiscussionThe diagnosis spurred the discussion around legacy planning.

Scott hired a consultant outside of the property management industry and the first thing he recommended was to have Garrett go to graduate school. This did not make sense at first, but it was pretty transformative. He earned his position with his education and his experience, not because of nepotism.

The next step was to invite Garrett to earn some controlling interest in the company. Every year that he’s worked for the company, he’s earned 2.5 percent ownership in that company. By now, he’s up to 15 percent. The idea was to have Scott maintain the controlling interest, but to give Garrett a path towards more ownership.

Garrett has skills that Scott doesn’t have, and they both recognize that.

Scott excels at sales and marketing while Garrett is all operations. Scott said he knew the future was in the company’s operations. With 130 associations under management, they need good systems.

Garrett does all the hiring of remote team members and he trains them, too. The company now has 13 remote team members and 13 full-time employees. The future isn’t expanding full-time payroll, but in hiring remote contractors.

Understanding his own skill set allowed Scott to bring Garrett in, and together they sit down and look for the next opportunities while ensuring everything is running properly.

Marc Cunningham mentioned to Garrett that he had to do a buy-in for his ownership in the family business, and so it made sense to Garrett that he would buy ownership over time with his time and with his commitment to the business. He says he gets more value out of learning how to run a business, deal with staff, and handle operations and corporate accounting. He’s happy to have that security for the long term, especially as the business grows.

It’s never a good idea to arbitrarily give ownership of your property management business to someone just because they’re family. Garrett is qualified, and that’s important. Scott says he’s the most qualified person to run the residential side of the business and manage the remote team members. He’s learning more about the association management side, and will eventually be comfortably with full ownership of the company.

Finding the Fit with Legacy PlanningIt’s a perfect fit, with Scott on top of the sales and marketing and Garrett taking care of the operations.

That doesn’t mean that Garrett isn’t prepared for marketing the business. As a high school student and as an undergraduate, he took care of the direct mail for his father’s company and for other real estate businesses and brokers.

He’s also looking at other potential income streams. Maintenance, for example, is a big passion for Garrett. He’s looking towards the future and thinking about a point in which the company can introduce their own maintenance service.

Garrett knew that to create value, he had to do what his father could not do or would not do. He and Scott complement each other, and that’s what makes them successful.

Identifying Opportunities While Planning AheadBoth Scott and Garrett see opportunities not in hiring people but in bringing on remote workers. Most property managers don’t see community associations with 8 to 20 owners as being a huge profit center. Progressive Property Management has found a way to do it.

Scott says that residential management is touch-and-go right now. No one is buying investment properties and there have been only a few sales. Association management is where new opportunities and potential earnings can be found.

Garrett appreciates that his father is willing to focus on long term goals. They’re saying within the company goes like this:

1. Everyone has to be on the bus.
2. Everyone has to be in the right seat on the bus.
3. The bus needs to be going in the right direction.

Garrett sees Scott as sometimes driving the bus at 100 mph. His job is to pick up the pieces that are sometimes flying off at such a high speed, and put them into place.

One of Scott’s favorite sayings is that the best times in business are when you’re uncomfortable. If you’re uncomfortable, it means you’re growing.

Balancing Growth with Core Values Both Scott and Garrett have some big ideas about ancillary companies, additional income streams, and creating new departments. How to balance innovation with the success of current operations?

It comes down to the team, Garrett says.

• Team members are paid well.
• Team members get the flexibility to do their jobs. Management is very hands-off.
• Bad clients who take up too much time and bring in too much liability have been weeded out of the company’s portfolio.

As they progress and grow, it all seems to works out. They’re comfortable with slow growth, and that’s important considering their business model is not traditional. Scott believes in managing processes rather than people.

Formal and Informal Legacy PlanningIt’s one thing to bring the person who will take over into the company and put them on a payroll and give them a position. But, how do you document the plan for succession?

For Progressive Property Management, there’s an informal and a formal plan in place.

The formal plan includes Garrett’s 2.5 percent ownership every year. That’s well-documented.

Informally, there have been many discussions about how things are meant to happen. If something terrible happened to Scott today, Garrett would be prepared to keep things moving the way they planned. Nothing is in writing, but everyone understands what will happen.

Garrett won’t have controlling interest for a while, but he’s naturally progressing in making more decisions. He says looking at things objectively helps. They know they’re not the only ones in this position. A lot of property management companies are wondering what will happen to their businesses. The choices are to have a good process or deal with a messy situation.

No one is going to last forever.

Innovation and Property ManagementGarrett is looking forward to eventually not only exploring maintenance services but also commercial real estate. You might have heard the adage that commercial real estate a dollar business. Residential management is the dime business. And, association management is a penny business.

It’s okay to collect the pennies and dimes while everyone else is going after the dollars.

Scott says he’s always saddened by the industry and how little innovation there is. People follow the herd, and the herd moves towards residential management only.

Legacy Plan ChallengesNot a lot of challenges have popped up, but Scott and Garrett do believe in complete transparency.

Everyone knows that Garrett will take over. There’s no doubt about the company’s future, and the team members recognize that Garrett is good at what he does. They also know he’s dedicated. The company still has an emergency line that’s kept in-house. This is where they shine, according to Scott, and so they don’t outsource it. Garrett still has that phone on the weekends. He’ll take an average of five or six calls every day about water leaks and other emergencies. That shows his dedication and everyone knows he has that phone.

Garrett says he appreciates being able to spend time with his father while working and growing the business. That’s a perk that’s hard to quantify and it’s not an opportunity that most people get.

Scott acknowledges that he has always hated having business partners. But, he doesn’t mind now. Both he and Garrett know when to step in and when to step out.

Family can be emotional, but Scott and Garrett are both on the same page and in the right seats on their bus.

Scott has always been a proponent of not selling even with attractive offers out there, and he has some advice for property managers who are in a family business and thinking about their next steps: Don’t just hand it off. That’s a good way to drive your business into the ground. Make sure you’re handing it off to a family member who has bought into the business with their time and their labor, and make sure they’re qualified to run the company.

Garrett adds his own advice: have patience. Recognize what’s been put into the business and pay your dues just like you would in any other business. Have patience and know your value.

If you have any questions about what we’ve discussed with Scott and Garrett, contact us at Fourandhalf. If you’d like to hear more about what Scott and Garrett Brady are working on, or if you’re interested in some of their other business pursuits, get in touch with them at Progressive Property Management.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY NameThis field is for validation purposes and should be left unchanged. 99537 The post Legacy Planning for a Property Management Business appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Marc Cunningham is a property management consultant and he’s also the President of Grace Property Management in Colorado.

He’s joining The Property Management Show today not only because he’s a prominent figure in property management, but also because he’s one of the first property management professionals who embraced video marketing.

Marc is still promoting video marketing, and he believes it’s the most effective way to bring new business into your company.

A Bit of Background: Marc CunninghamWhen Marc started his property management career as a child going to the office with his dad, things were incredibly different. It was the 1970s and buying their first copy machine was the most technology they had. The phone with an answering machine was fancy. Ledger cards were used to manually record when rent was collected, and checks were written to owners once a month.

His father recognized that technology was a great tool, and they not only got a computer before anyone else, but they also even hired a programmer out of California to write a custom property management program for them.

In the property management industry, there’s a big scare every couple of years.

The narrative goes, if you don’t do X, you’ll be left behind. Right now, it’s AI. If you’re not using AI, you’ll be left behind.

Marc says this is not always true. Provide good customer service to owners and tenants, and you’ll be okay even without the latest tool. You won’t wake up one day and be left behind.

It’s the shiny thing syndrome. If there’s something that everyone seems to be doing, you feel like you should be doing it, too.

It’s easy to chase the next big thing because everybody is talking about how cool it is.

Marc doesn’t chase the newest thing. Technology is something to leverage in order to improve your property management business.

After graduating from college with a degree in finance and real estate, Marc worked in the industry but not for his father. This helped him when it was time to go to work for his father. He brought a different perspective and a different set of skills to the family business. He always tells people in a family business to send the young people out to work outside of the business for a few years. It generates better ideas and higher level thinking.

Marc arrived at his father’s company with more of a business mindset. His father was very good at property management, and Marc found he was very good at business management.

Pioneering Video and Property Management Marketing Marc is one of the first property management professionals to begin marketing his company with video. He still believes this is the best marketing tool for property managers.

Here’s how it happened.

He was at a conference, and on the way home from that conference, he began thinking about how much time he spent talking to potential owner clients. They all ask the same questions and he found himself having the same conversation over and over again. Wouldn’t it be great, he thought, if, instead of answering those common questions over and over again, he could put those answers in a video and have it on his website. Then, potential owner clients could watch the video and decide if they wanted to know more. Marc thought that if a video could save him multiple five-minute conversations, it would really add up to getting some serious time back.

He’s action-oriented and he doesn’t over-think.

So, when he got home, he had his then-11-year-old son stand on his desk with an iPhone and take a video of Marc talking about common property management expenses.

It was a three-minute video that included no script, no special lighting, and no microphone. The point was not quality. The point was to get it done.

This has worked better than any other marketing, Marc says, because prospective owner clients will call, and they’ve already seen the videos. That puts them at about a 7 out of 10 in terms of likelihood that they’ll come on board as a client.

Those owners feel like they already know Marc and the company. Marc says he’s not afraid to tell people to use video more because he knows they won’t do it. His competitors don’t.

The reason this works for Marc, he says, is because he’s not a perfectionist.

The Power of Action vs. PerfectionIf you believe in the power of action, you’ll get the videos done, and you’ll let the results fall where they may.

Video marketing has been successful by keeping the acquisition costs for each client down. There’s no need to spend a lot on marketing when you have a YouTube channel full of great video content. The video version of Marc is available 24/7, and that means that the real life Marc has time to focus on other parts of his business. One video could be equal to 20 conversations he didn’t have to have in real life. Even if the video results in zero leads, he didn’t have to have all those chats with people who would not hire his company anyway.

The willingness to make videos creates a filter. No property manager is designed to serve every owner. The training Marc does with his property managers internally is called We Don’t Sell. When a lead comes in, he doesn’t want the goal to be closing the lead. The goal is to get to know the prospect and to decide if they’re a good client to do business with. There’s no starting with a sales mentality.

Videos will:

• Attract new potential clients.
• Filter out the clients you may not want to work with anyway.
• Answer common questions.

Video also snowballs for marketing and SEO purposes. The more times those videos get watched; the more Google promotes the videos. When they’re promoted, they’re watched more. And on and on.

Remember that this is a public space. You don’t have to make perfect videos, but you also don’t want to insult anyone. Marc made a video called “Five Things to Never Say to Your Tenant.” He’s not an anti-tenant property manager, but he must have said something in that video to upset someone, because it went viral in tenant groups and he started getting really hateful messages and comments. So, he took that video down.

It’s a fine line to walk. You want to be cautious, but you also want your personality to show through. A video won’t be as effective if it’s scripted. If you want to do some bullet points for yourself before you talk on camera, do it. But don’t read a script or generate something from your computer. Talk the way you’d talk to a client. It can be intimidating, but it’s effective.

It’s effective, but people don’t do it. Most property managers don’t use this effective and untapped marketing tool because they’re too obsessed with making the perfect video and they can’t, or because it’s easier to run ads and pay Google.

What Makes a Video Educational?Marc has two distinct categories of video. One is educational and one is an FAQ that outlines how he does things. They’re separate.

Under the educational content umbrella is the content marketing that appeals to both prospective owner clients and current owners. It works to market for new business and retain current business.

Here’s a soft rule he says to remember: When you make a video, decide if you can show it to both audiences – the prospective clients and the current clients. If the answer is ever no, then it’s not providing enough education. When you have this rule in mind, you’ll keep your video from being too sales-focused. You won’t say “call us for a free consultation” because why would say that to current owners? When you can say yes, it applies to both current and prospective clients because you’re talking about tenant screening or maintenance costs, then you know it’s an educational video.

Marc believes content matters. His videos won’t be about how great his company is or how many degrees he has.

Nobody cares.

He maintained one massive email group of all current clients, all previous clients, and all prospective clients. Anyone who has ever provided an email address is in the group. It doesn’t matter if they’re working with a competitor or self-managing or if they’ve been with the company for years. These videos educate everyone.

People want to be educated. They’re not going to call you because of your great technology. They’re going to call you because you posted a video with some information on a new law that matters to them.

Marc doesn’t invest a lot of time in making videos. He began doing two videos a month and he’d record them both at the same time, and they’d end up being seven or eight minutes each.

It’s not a production.

There’s a simple backdrop. There are some good lights. There’s a tripod and a microphone. There’s usually one take. If he stumbles over a word, he reps going. It does not have to be perfect, and that’s why it doesn’t take too long.

Slight imperfections keep the video conversational. If you can pretend you’re recording for a potential client, you’ll have an easy time talking to them.

Now, there’s only one a month that needs to be recorded because quite a library has been created. One hour every month is the time investment that’s required, and the video keeps working as soon as you put it out there. Marc says this is the only true evergreen marketing there is. Blogs and videos go on websites. They get shared on social media.

Videos are converted to blogs, but Marc says the video should come first. When someone reads a blog, they don’t necessary get a sense of who you are. Video shows them. And it doesn’t take much time if you’re not a perfectionist.

Sometimes, people will give up too fast. They’ll hate their hair. They’ll hate their voice. They’ll want to re-record over and over again.

Marc says get over that. You’re not auditioning for Hollywood. You’re trying to attract a new client, and it gets easier the more you do it.

Advice to Property Managers Not Loving the Video Marketing IdeaMarc has some advice for when you’re making your video, and he even has some advice if you’re not feeling like you want to make videos at all.

• Be more energetic in your video than you think you need to be. There’s something about video that sucks the life out of people. You don’t want to be boring. As you’re recording, be a bit more animated than you normally would be. Deliver more energy than you think you need to. It might feel goofy while you’re doing it, but it will come across on video the way you want it to.
• If you’re worried you don’t have time to make videos? That’s not the point. If you want to have more time in your business, you need to do this kind of marketing to get there. Success comes when you follow the steps to success. You can’t wait to be successful before you start showing your stuff.

Marc reminds all of us that he began video marketing with a wall, an iPhone, and an 11-year-old. If you want to save yourself time on marketing, there’s no better way to do it.

As a property management business consultant, Marc stresses the importance of video as a marketing tool, and he has another secret weapon that he’s surprised most companies don’t realize is so important.

That’s having a photo of yourself or your company or your team on your website.

It’s a big fail if you’re not featured on your site. People want to SEE who they’re doing business with. Get your picture on your site and let people know who you are.

The mantra for Marc is to be professional yet friendly. Those are the boundaries. You know where you fall. Maybe you trend more towards professional or more towards friendly. Bring yourself back to balance.

Another piece of advice: With content, whether it’s a blog or a video or a Q&A on your website, make sure you’re answering the questions that your potential clients have. You’re attracting investors and accidental landlords. Answer questions from both types of owners.

The accidental landlords aren’t thinking about themselves as investors. They lived in the house they’re about to rent out. They want to know who will be there and if they’ll take good care of the home. They’ll have questions about screening. Investors will have money questions. They’ll want to know what they’re spending on maintenance and how quickly you’re filling vacancies.

Answer those questions in your content.

Find out what people are asking right now. What conversations are you having with current and prospective owners? What keeps coming up?

Your potential clients are making decisions based on emotions. If you’re not marketing yourself this way, with video, then you’re only competition on price. People don’t choose your company because of your price. They choose your company because they know what you’re doing. You cannot expect them to turn over the keys to their greatest asset without knowing who you are.

Find Marc at PMBuild.com, which is their property management education website. You can also visit RentGrace.com, which is his property management website. Check out his videos and see how it’s done.

Marc’s parting words?

Get it done. Get it out there.

We appreciate Marc Cunningham coming onto the show. If you have any questions about video marketing or if you need help with this part of your business, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. 9131 The post The Power of Action Versus Perfectionism in Video Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

In order to grow your property management business, you need to find new owner clients. Advertising is an effective way to reach potential clients and generate interest in your services. However, simply putting out an ad is not enough. You need to target potential clients in the right way and use the right messaging to encourage them to choose you over other property management companies. In this blog post, we will explore some effective property management advertising examples to help you generate new owner clients.

Advertising is a marketing strategy that involves the use of paid content to promote a business, its products, or services. For property managers, advertising can serve as a powerful tool to attract new owner clients. It does so by creating awareness about the property management services offered, establishing credibility and showcasing the competitive advantages of choosing one property manager over others.

Effective advertising can illustrate the benefits a property owner can gain by delegating tasks like tenant management, rent collection, and property maintenance to professionals. This, in turn, could save them time and effort, providing a compelling reason to consider the services of a property manager. By reaching the right audience with the right message, property managers can significantly increase their client base, thus expanding their business.

There are two types of advertising – traditional and digital. Traditional advertising includes print, radio, television, and outdoor media. Digital advertising is accessed through online platforms such as search engines, social media networks, and websites. Depending on the target market of your property management business, one or both types of advertising can be used to reach potential clients. Property managers often choose a combination of both types of advertising to maximize their reach.

Traditional Advertising MethodsDespite the surge in digital marketing, traditional marketing strategies continue to hold significant value for property managers seeking to attract new clients. These time-tested strategies can be an integral part of a well-rounded marketing approach for property management businesses.

For property managers, implementing direct mail campaigns, aimed at certain neighborhoods or demographic groups, can convey tailored messages directly to prospective clients. Another traditional advertising strategy that could be successful for local businesses, such as your property management company, is placing ads in local newspapers and magazines. This approach allows property managers to reach a broader audience of potential clients.

Digital Advertising StrategiesAt Fourandhalf, we specialize primarily in digital advertising, so that will be the main focus of this blog. Digital advertising can be a powerful tool for property managers, and it has some distinct advantages over traditional methods. Of course, the most visible advantage is that it is far more cost-effective than traditional advertising. Digital advertising also allows you to reach large numbers of potential clients quickly, and it can be tailored accurately to reach new clients in your market.

As more and more people are turning to the internet, digital marketing has become an increasingly effective way for property managers to advertise their services. Online advertising can be targeted to reach potential clients in specific geographic areas or with certain interests.

Social Media AdvertisingSocial media is a powerful tool for promoting your property management services. By creating a strong social media presence, you can attract potential clients who are active on these platforms. You can share your educational content, post photos of your properties, and engage with people who are interested in property management.

Outside of the organic ways to generate leads and brand awareness from social media platforms, you can also run ads on social media platforms like Facebook and Instagram to target potential clients in specific geographic areas.

Example of a Property Management Ad on Social MediaFor social media marketing, consider posting an eye-catching image of a well-managed property alongside a compelling caption, such as:

“Are you spending too much time managing your property? Let us take care of it! With [Your Company Name], your property is our priority. We handle everything from tenant screening to maintenance, giving you peace of mind and more time to do what you love. Contact us today for a free consultation!”

Ensure you have a call-to-action button like “Contact Us” or “Learn More” to make it easy for interested owners to reach out or get more information about your services.

In the body of the ad, you could include additional details about your services and the benefits of choosing your company, such as:

“At [Your Company Name], we understand how time-consuming property management can be. That’s why we’re dedicated to providing comprehensive, high-quality property management services that save you time and maximize your rental income. From screening potential tenants to handling maintenance and repairs, we’ve got you covered. Contact us today to learn how we can make your life easier and your property more profitable.”

Remember, effective social media advertising for property management companies is all about conveying the peace-of-mind and efficiency your services offer to property owners.

Search Engine MarketingSearch engine marketing (paid ads on search engines) is another effective way to reach potential clients. These ads appear at the top or side of search engine results pages when someone searches for keywords related to property management.

The most important thing to remember with search engine marketing is that your ads must be highly targeted so they reach potential clients who are actively seeking out property management services locally. To maximize your return on investment, you should use specific, relevant keywords and create multiple targeted ad campaigns to reach a variety of local property owners.

You can also use retargeting ads to reach people who have previously visited your website. By using the right targeting and messaging, you can generate interest in your services and encourage potential clients to contact you.

Example of a Property Management Ad on Search EnginesAs shown in the ad above, in the property management industry you want at least one of your headlines to include your location. This will help make sure your ad is being seen by the people who actually need it.

Your additional headlines should focus on what makes your services stand out from other property management companies. Maybe you offer lower fees, quicker response time for tenant requests, or more comprehensive maintenance services. Make sure to include that in your other headlines as well. Just remember that there’s a pretty strict character limit of 30 characters for headlines!

In your descriptions, you’ll have a little more room to add additional context. For instance, consider an ad where the description reads: “Rent your property with ease – ABC Properties offers fast, reliable property management services.” and “Contact us today for a free consultation!”

This description would clearly communicate what your property management company is offering and what a potential lead will get if they contact you. Additionally, you can use extensions in your ad to include additional details such as physical location or phone number.

Bonus: Having a Websites that ConvertsPaid ads won’t be effective if your website doesn’t convert leads. Having a well-designed property management website is key to getting potential clients interested in your services.

You want to make sure that the content on your website is hyper focused on giving your clients the information they need. Be sure to include information about your services, portfolio of work, and any certifications or awards you may have. You can also add client testimonials and case studies to highlight the success stories of your clients. This can help potential clients feel more confident about trusting you with their rental properties.

Things to Keep in Mind When Advertising Your Property Management CompanyNo matter what kind of advertisement you’re using for your property management company, there are a few key elements you should include:

• An attention-grabbing headline that quickly communicates your message in an interesting and memorable way.
• A description of the services you offer, such as tenant management, rent collection, or property maintenance.
• Examples of how hiring a professional property manager can save owners time and effort.
• Contact information for potential clients to learn more about your services.

In addition to these elements, you should also utilize visuals such as graphics or photos that capture the attention of viewers and help them understand your message.

Lead Management and NurturingIt’s no use using these advertising strategies if you don’t have a good lead management system in place to follow up with potential clients. That’s why it’s important to have a process for capturing and nurturing leads so you can stay in touch, answer any questions they might have, and ultimately convert them into paying customers.

Lead management and nurturing involves creating a process to follow up with potential clients who have expressed interest in your services. By nurturing these leads, you can increase the likelihood that they will choose your services over those of competitors.

Using Advertising for Your Property Management BusinessBy implementing some or all of these tactics, you can grow your property management business and take it to the next level. If you need assistance implementing any of these online marketing strategies, please don’t hesitate to reach out! At Fourandhalf, we love to help you grow your business and generate more leads.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. 53338 The post Property Management Advertising Examples for Generating New Owner Clients appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

How Does Your Property Management Marketing Budget Compare to Your Peers?Here at Fourandhalf, our ever-curious minds never stop exploring. During one of these mental safaris, we asked ourselves: how much do successful property management companies spend on marketing to capture new owner contracts?

In general, most marketers settle on 3%-7% of revenue to maintain their current levels of awareness and visibility. However, the property management industry is far from average, right? On the one hand, you have lower margins, but on the other, client retention rates are beyond the dreams of lawyers, dentists and most other professionals.

It is fair to say that anything from 1%-2% of annual revenue should offer a sustained, measured and fairly predictable growth rate, as our survey shows.

However, those who are looking to grow aggressively, and young companies with smaller portfolios (and smaller annual revenues), 2%-5% of revenue should be your target number.

A Word of CautionNo matter how aggressively you’d like to grow, be careful with how you invest your marketing dollars. Unfortunately, digital marketing is one of the few remaining industries where the salesman still knows a lot more than you do. Sinking a large portion of your marketing dollars into the wrong kind of campaign can cost you and your business thousands, and potentially tens of thousands, of dollars in opportunities, once major search engines blacklist your site.

We’ve heard plenty of horror stories, and have spent lots of time untangling lingering issues for our new clients. Luckily, there are reputable vendors who focus their efforts on helping property management companies grow their businesses through their online marketing. If you need advice on who to hire, please get in touch and we’d be happy to recommend best-in-class vendors, even if Fourandhalf is unable to help in the specific marketing channel you are trying to launch or improve.

Building a Marketing Plan for Your Property Management Business In the property management industry, having an effective marketing plan is essential to attract and retain new clients. With real data from real companies, we’ve compiled a few different profiles based on the number of doors to help you estimate where you stand compared to your peers when it comes to your marketing plan.

Our survey of nearly 270 companies provides valuable insights into the industry and can assist you in making informed decisions. However, while reviewing the below data, please keep in mind that each market is going to be completely different. This data is from across the entire US, and may not line up perfectly with your experiences in your location.

Please use this data as a ballpark – if the cost of living in your city is significantly higher or lower than the US median, that will need to be reflected in your own property management marketing plan.

With this survey, we wanted to get an idea of how much money different sized companies were allocating to their marketing efforts and which marketing channels they were using, including blogs for content marketing, Google Ads, SEO (search engine optimization), and online reputation management.

Profile #1: 11-50 Doors Median Marketing Expenses: $375
Percentage using blogs: 16%
Percentage using Google Ads:33%
Percentage using SEO agency: 25%
Percentage using reputation management: 22%

The smallest company size we surveyed was between 11-50 doors. We found that the median spend on digital marketing was $375 a month. Of those surveyed, 16% had blogs as part of their marketing strategy, 33% were spending on Google Ads, 25% were using an agency for SEO and 22% had a reputation management strategy.

Profile #2: 51-100 DoorsMedian Marketing Expenses: $837.50
Percentage using blogs: 29%
Percentage using Google Ads:31%
Percentage using SEO agency: 24%
Percentage using reputation management: 17%

For companies with between 51-100 doors, we see a jump in marketing spend of 123%. Companies of this size are spending a median of $837.50/month on digital marketing. We also see a big increase in the percentage of companies using blogs as a marketing strategy.

Profile #3: 101-500Median Marketing Expenses: $1200
Percentage using blogs: 36%
Percentage using Google Ads:38%
Percentage using SEO agency: 31%
Percentage using reputation management: 38%

We saw another big increase in both spend and across the board on online marketing channels used for property management companies with between 101-500 doors. This makes sense as a budget of $1200 will allow for more diversity in a marketing strategy.

Profile #4: 501-1000Median Marketing Expenses: $1250
Percentage using blogs: 50%
Percentage using Google Ads:40%
Percentage using SEO agency: 55%
Percentage using reputation management: 55%

Although the budget spent on digital marketing only increases by 4% for companies with between 501-1000 doors, we see a big increase in all four marketing channels, but especially with SEO from an agency.

Profile #5: 1001+ DoorsMedian Marketing Expenses: $2500
Percentage using blogs: 65%
Percentage using Google Ads:45%
Percentage using SEO agency: 45%
Percentage using reputation management: 45%

Finally, the largest size company we surveyed spent a median of $2500/month on digital marketing. There’s also nearly a 50% chance that a company of this size will be using any one marketing channel.

Main Takeaways for Your Property Management CompanyThe bigger your company is, the more you should be spending on your property management marketing strategies! Remember, you’re not only growing your company but also making up for attrition.

Also, more budget means more opportunities for trying different marketing channels. Don’t put all of your eggs in one basket when it comes to your property management marketing plan to target property owners. Depending on your location, competition, time, and company size, play around with different marketing efforts to see what works best for your company.

Property Management Marketing IdeasTo help you get an even better idea about how to come up with an efficient property management marketing strategy for your business, we’ve pulled together three real life examples of both budget and services.

Client #1:# of Doors: 101-500
State: Ohio
Budget: $1,039
Marketing Plan: Website & SEO, Content Marketing, Managed Reputation, Social media marketing

For this real life marketing plan, we’re taking a closer look at a medium sized property management business in Ohio. Their marketing budget is just slightly under the median, but they’re taking advantage of a wide variety of marketing channels.

In 2022:

• generated 47 leads
• 295k total website impressions
• 16.4k total website clicks
• 28 reviews

Client #2:# of Doors: 101-500
State: Texas
Budget: $1591
Marketing Plan: Website & SEO, Content Marketing, Lead Nurturing, Digital Ads

The above plan is an example of a property management marketing plan that includes digital ads. Any sort of paid ads is going to cost quite a bit more than targeting local property owners organically, but will often generate leads faster and at a higher volume.

In 2022:

• generated 113 leads
• 91k total website impressions
• 3.5k total website clicks

Client #3:# of Doors: 51-100
State: Washington
Budget: $643
Marketing Plan: Website, Managed Reputation, Lead Nurturing

This company is spending a little less, but still able to have multiple different marketing channels within their plan. If your marketing budget is small, focusing on organic leads through SEO and content are good marketing strategies to invest in. Organic leads take longer to reach potential clients than paid marketing but they’re often less expensive and more evergreen.

In 2022:

• generated 53 leads
• 5.7k total website impressions
• 2.3k total website clicks

Things to Keep in Mind When Planning Your Property Management Marketing StrategiesAs a property manager, expanding your business through effective marketing strategies is key to long-term growth. Unfortunately, we can’t give you more personalized advice without knowing more about your business, but we hope you now have a better understanding of the property management marketing ideas available to you within your budget. Before you get started on your own plan, here are a few more things to keep in mind.

Start up costsThe above examples of real life budgets for property managers do not include start up costs. Services like a website from a marketing agency will often require a larger investment up front and then become a lower monthly fee. There’s can also be a start up fee associated with signing up for property management software, such as one you might use for a managed reputation campaign.

DIY Efforts vs. Hiring an AgencyYou can reduce your monthly budget by doing things like generating online reviews, content, and social media on your own verses hiring someone else to do it for you. Of course, that means you’ll be spending more time on your marketing efforts.

Track Your ResultsNo matter what marketing channels you’re investing in, we highly recommend tracking your results. If you hire an agency, they will usually do this for you and keep you updated. If you’re managing your own marketing strategy, you’ll need to come up with your own system. Google sheets and calendar reminders can work just fine!

Mix it UpAs we’ve said before, different locations are going to produce different results. If you’ve implemented your property management marketing strategy, you’re tracking your campaigns, and you aren’t seeing results, then it may be time to try something new! It may be that you need to increase your budget, or you may need to try a completely new channel. Generally speaking, we recommend giving any one channel about six months of quality effort before moving on.

Final Thoughts on Property Management Marketing Navigating the realm of property management marketing can be a complex endeavor, but it’s an essential aspect of your business growth. As these real-life examples demonstrate, there is no one-size-fits-all approach, but with patience and persistence, your efforts can lead to substantial returns on your investments.

If you have any questions, or need more help, contact us today at Fourandhalf. We specialize in online marketing for property managers and we’d love to help your business grow.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. 87183 The post How Much Do Successful Property Managers Spend on Marketing? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Hello to all our loyal listeners and property management enthusiasts! You must be wondering about what’s going on with The Property Management Show podcast. We’re here to give you the scoop! We’ve been busy with pre-production for our upcoming season. After a brief hiatus, Brittany is back with a bang! Yes, that’s right! Our beloved […]

The post State of the Podcast Address by Marie and Brittany appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Websites are one of the most important parts of the marketing strategy for your property management business. In today’s digital age, having a strong online presence is crucial for businesses to thrive. Property managers, in particular, can benefit greatly from having a well-designed website. Not only does it showcase properties and property management services, but […]

The post Websites for Property Managers: QuickSites and Fully Custom Websites appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

As a property manager, you understand the importance of driving traffic to your website. A high volume of website traffic means more prospective tenants and owners, which ultimately leads to revenue growth. In the digital age, achieving a high-ranking, high-traffic website requires more than just creating a website; you must consider search engine optimization (SEO). […]

The post Why are Backlinks Important for Property Managers? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

If you’re a property manager trying to build an online presence, or you’re just trying to stay relevant in the ever-changing world of the internet, one thing that must be at the top of your mind is social media. There’s always a hip new platform available, and you’re probably wondering if you should be […]

The post Property Management Social Media: Platform Vs. Principles Explained appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

As a property manager, you know how crucial it is to secure quality leads and turn those leads into long-term clients. You also recognize the importance of following up with prospective owners quickly and efficiently. Playing phone tag can be frustrating, but there is great news. If you can keep your prospect interested in your […]

The post How to Follow Up with a Property Management Lead appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Property management is a highly competitive industry, and staying ahead of the competition is necessary for success. One effective tool that property managers can use to drive traffic and generate leads is Google Ads. With Google Ads property managers can target rental property owners, investors, potential renters or buyers based on specific demographics, interests, and […]

The post Best Practices for Property Managers with Google Ads appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Wondering how to start a property management company? Or looking to grow your property management business? Starting or growing your own property management company can be overwhelming. However, the right knowledge can make all the difference, and who better to ask than 10 industry experts. That’s why we pulled aside 10 property management experts at […]

The post 10 Industry Experts on How to Start a Property Management Company appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Disclaimer: This blog was originally published in 2017, and not all of the information regarding Jock McNeill, PM Grow Summit, Alliance Property Management, and Rent Napa Valley is current. However, the advice given is still applicable today and we updated the blog with even more relevant information in June 2023. Jock McNeill was a guest […]

The post How To Double Your Property Management Business Growth in Less Than a Year appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Our guest on The Property Management Show today is the legendary Deb Newell, of Real Time Consulting Services.  She has a lot of experience as a consultant and a property management business owner, so we wanted to get her thoughts on the state of the industry and what property management companies need to do to […]

The post Building a Rock Solid Property Management Company: Advice from Business Consultant Deb Newell appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The Property Management Show is pleased to welcome Matthew Kaddatz onto the podcast. He’s the senior director of product at Appfolio, and before joining Appfolio, he co-founded a property management company in 2006, right before a major recession.

We’ve been talking to property management experts about how they moved through that recession and what they’re planning for the potential new recession that is coming for the real estate industry.

We asked Matt to tell us about his property management company and what things were like when he got started.

Remembering Real Estate and Property Management 2006 – 2008Matt was just getting out of college in 2006, and real estate was red hot. His degree was in computer science, but he knew he didn’t want to be a programmer. So, he found an opportunity to grab a management agreement from family friends who were developing a property. He managed the properties they developed for them.

Admitting he was a bit naïve just out of school, Matt says he imagined he was going to be a millionaire making money in real estate. But, about a year and a half in, he realized he had no idea what he was doing. He spent some time learning the business.

Those first couple of years were not about growing a business but about learning how to do property management.

Then, the 2008 recession arrived, and the housing industry fell apart.

Identifying the Signs of TroubleSomething weird was going on in 2008, Matt knew. He wasn’t as connected to the industry as he is now, but Matt knew something was wrong when his dad was laid off. Matt’s father had his own business and then sold that business and began working for the company that bought it. It was an insurance company he worked for, and they were in front of the rest of the recession.

He had never seen his father without work – ever. Matt realized that things were going to get a lot worse before they got better. His dad being laid off was the canary in the coal mine.

Soon, there were foreclosures and an astonishing number of people simply abandoning their houses. They just disappeared.

Matt lived in a second-home community. There weren’t a lot of permanent residents in the neighborhood, and a lot of people were willing to give up their second home in order to save their primary home. Around 20 percent of the homes were simply left, and the home values in the area were cut in half within 12 months.

This was a scary time to be in real estate.

Matt was managing properties right over the border with Mexico, in Rosarito Beach. The drive from San Diego was about 45 minutes. It was a high growth market in 2006, but in 2008, construction crews had stopped building and sales teams had stopped selling.

Everything changed substantially.

The property management industry is resilient, and Matt had plenty of business with community associations as well as property management contracts. And, he was running a maintenance business, too. While the market stopped growing as aggressively as it had been, the business model they were working with was sound. They got through the recession.

Making Difficult Decisions During Real Estate RecessionsThe business Matt was running was built with a partner, and around 2008, it became clear that growth and expansion was not going to happen. They had been banking on a lot of new construction, and that wasn’t going to happen.

Matt’s partner left the business to pursue other opportunities. This was challenging for Matt because the partner had been leaned on as a fluent Spanish speaker. He had also been running most of the maintenance activities.

It was a hard decision, but for the business partner, it was the right one. There was enough recurring revenue coming in that the business could still support itself. Anyone who was in foreclosure was hesitant to make any kind of move with their homes, whether it was going to be to rent them out or try to sell.

Matt survived and then exited the business himself.

Going through the recession as an entrepreneur didn’t necessarily drive him out. He loved building the business, and it was fun to learn how to run a property management company. Matt liked solving complicated logistical problems.

But, he missed working with a larger group of people. He missed collaboration and colleagues.

The company was small; they worked about 450 units and had 30 employees, most of whom were on the maintenance team. Matt wanted to be part of something bigger, so he joined a large firm out of Texas. They had done a great job building a business, and Matt was happy to be offered an opportunity with them. They had more resources and a lot of colleagues. Matt felt like he could continue to grow.

He was also happy to utilize his software engineering background. The software he had used in his property management company was what he had cobbled together. Some of it he built from the ground up and some of it was integrated with Quickbooks and other existing programs.

Property management software is much different now than it was 10 years ago.

Working with AppfolioNow, Matt is on the vendor side for one of the biggest property management software companies in the country.

He’s a product leader, and he likes being in a position where he can deliver products that his clients really need. He enjoys finding the product that’s most successful for his customers.

Matt knew he had grown his company as much as he could. He was looking for something outside of property management. And then, he ended up at Appfolio. The company resonated with him because they’re customer-centric and trying to build really good products.

It’s rewarding to impact small business owners.

How to Prepare for a New RecessionWe may be at the cusp of new recession. What is Matt’s advice?

Matt says this is different from the 2008 recession. In 2008, no one knew what was happening. However, we’ve been talking about the coming recession for over 12 months. It’s unlikely this one will be as bad as the last one. The fundamentals are also different. The housing market is intentionally being slowed down by the Fed to ease inflation.

If you can hold on, Matt says, it will be a different world at the end of this. There’s lots of cash on the sidelines waiting to see what happens. Some people, he says, are excited about the recession. They know it will be a good opportunity to buy.

Don’t put all of your eggs in one basket, Matt advises. For example, running a maintenance operation with your property management company can be profitable. Homes will always need maintenance.

Thanks for listening to the podcast. If you have any questions about Matt or his stories, please contact us at Fourandhalf by filling out the form below.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post What Matthew Kaddatz Learned Running a Property Management Company Through the ’08 Recession appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We’re talking to one of our long-time clients, Jeff Hacker, who runs Bayside Management and Leasing. He was on The Property Management Show three years ago, and we love talking with him because he’s been in the property management industry for 20 years.

He was with Bayside during the great financial meltdown between 2007 and 2009, and we asked him to come back and share with us some of what he learned as that crisis unfolded. We also wanted to know what he’s doing to prepare for another potential crisis in the industry.

Learning from the Past: How the Crisis Unfolded in 2007Jeff recalls the crisis building slowly the last time.

Interest rates were going up and the news grew more negative over time as he tracked real estate industry trends. People were not able to make their mortgage payments. The default rates were rising. Most people had an inkling that something was going on, but no one expected it to be as severe as it was. People generally try to be optimistic. Everyone remembered the savings and loan debacle, and there was a general sense that whatever crisis was looming, it would pass and not be too significant.

But, as 2007 and 2008 and 2009 wore on, it became clear that this was something truly catastrophic. The significance of this economic event was pretty widespread.

From a property management point of view, the industry was lucky in some respects. While there is no industry that’s truly recession-proof, property management in general can weather a financial storm better than other industries because people always need a place to live. Even if they’re not owning homes, they need a place to rent. So, while not completely insulated from the effects of a huge recession, property management usually does not go to pieces.

Jeff said that what he noticed early is that as the crisis was unfolding, applications were coming in for vacancies from people who had owned homes. They defaulted on their mortgages or their mortgage companies foreclosed on them.

Some of these homeowners purchased a home with an income-only loan. They put five percent down or in some cases, they put zero percent down. So, there was not a lot of skin in the game. They borrowed up to 100 percent of the mortgage, so when the house was suddenly worth less than the mortgage, people walked away.

One of the things that Jeff learned was to be significantly more proactive with landlords and investor clients at Bayside.

A surprise during the last recession was the number of layoffs that came from the financial meltdown. Jeff would have liked to have been more prepared for the number of job losses that impacted the industry. This led to more vacancies.

When a tenant loses a job, they may be okay for a month or two. But then, they’ll vacate because they’ll need to move in with someone else to save money on housing. Or, they’ll move for a new job.

Homes sometimes have to be rented out for less than an owner would like in a business environment such as this. Jeff learned the importance of being proactive with owners; to explain this situation and to let them know what to expect. There may be less rent. There may be multiple vacancies.

Jeff said another thing he would have liked to have done better is to suggest that owners lower their rent in order to keep tenants who were struggling. While no one wants less rent coming in, it’s better than a vacancy during a recession.

Current Layoffs and Recession FearsIn the San Francisco Bay area, where Bayside Management is located, there have recently been mass layoffs in the tech industry. Jeff said this has led to layoffs, and proactive steps have been necessary.

Local tenants who have been laid off by a tech company could move out of state. They might take a job Texas, Florida, South Carolina, or one of the areas where companies are relocating. There has been a lot of migration out of California.

On the flip side of that scenario, there are still a lot of start-ups in the area, and tech employees who were laid off from large companies can quickly find new jobs with smaller companies. That allows them to stay in the area and continue paying rent.

Jeff is talking to his owners about these potential issues. He’s discussing ways to prepare for every possibility. Ideas include:

• Possibly holding rents flat instead of raising rents.
• Maybe reducing rents in order to keep tenants in place.

There has been a positive response from owners, especially after they see the data and understand the numbers. It’s difficult to accept; costs are going up and every owner wants to maximize what they earn. They look for increases every year. This makes sense. While there has been some push back, there has not been a loss of any accounts. Jeff and his staff are talking to owners in order to prepare them. It’s an ongoing conversation.

Owner Outreach during a Potential New RecessionJeff is worried about churn with the real estate industry on the cusp of a potential new recession.

In 2008 and 2009, a lot of investors began self-managing just to save some cash every month. All of us know that property management services aren’t expensive, and they’re worth the investment, but some owners feel a need to save that hundred or two hundred dollars every month.

At Bayside Management, there’s an outreach program in place to avoid this kind of churn as a new recession approaches.

The objective is to not lose owners to self-management, even if this means reducing their management fees for a little while.

The proactive outreach is important. Getting in touch with owners to talk about the market has become a priority, and they’re feeling out how the owner is likely to respond.

This began for Jeff’s team in August or September of 2022, and there’s been a staff training built around it. They have a script. They have talking points. They have come together as a group to talk about how to handle these conversations.

Each owner is contacted by the person on the team who has the best relationship with that owner. Since Bayside operates within a portfolio system, it’s usually the property manager assigned to an owner who makes the call. In some cases, Jeff gets involved because it’s a larger client.

Lowering Property Management Fees to Keep Business Jeff isn’t offering lower fees across the board.

It’s a part of their effort to avoid churn when it’s absolutely necessary. He knows which clients are likely to leave when they get nervous about spending money. These are the owners who will invest in the properties as much as they need to in order to keep the property in decent shape. But, they won’t do any remodeling or bring in new amenities and improvements.

After the experience of 2008 and 2009, Jeff knew that those owners most concerned about costs would be the ones to leave if another recession approached.

Dropping fees for a temporary period of time might save them from self-management.

Jeff said that Fourandhalf has helped him look at the cost of acquisition really well. They know that it takes thousands of dollars to acquire a single client. So, instead of spending that money to find new clients, they’re willing to drop their management fees in an effort to keep the clients they currently have.

The reduction is temporary; no more than a year. It isn’t discounted forever. This is offered as an acknowledgement that there may be a recession coming and that inflation is hurting everyone. It’s a real possibility that rents will remain flat.

Property Management Industry TrendsWe asked what has changed in the property management industry, and what Jeff believes property managers should be looking out for. He highlighted two specific things:

• A lot of people were chasing investment properties. Whether they had big pockets or small pockets, everyone was trying to buy investment homes. This drove up property values substantially around the country, and especially in more desirable cities. Home prices kept going up. That’s not sustainable, and there’s only so much inventory. This drive in investment buying kept a lot of first-time homebuyers from getting into the market.

If you’re a property manager in one of the markets that really benefited, you probably brought in a lot of business. But, those market conditions cannot last forever.

• Automation. Almost everything is automated in property management, now. Whether we’re talking about showing vacancies or using management platforms for rental accounting and maintenance work orders – it’s all automated. That makes the property management experience better for owners. It’s more transparent. It also provides tenants with new ways to communicate. Property managers can track everything and really show owners all the work that’s being done.

Growth is expected even with a possible recession. Jeff said he likes to focus on growing the company five to 10 percent every year. They’ve been pretty successful in the past, and they’re also very focused on keeping their client base. This year, they want to maintain their base of clients and avoid churn.

Which is another good way to grow.

Retaining your current clients is growth. A lot of property management companies are hyper focused on getting new clients in, but watch that leaky bucket. You don’t want to lose existing clients, otherwise you’re not really growing.

Thanks to Jeff for talking with us. If you have any questions about his work at Bayside Management and Leasing or you’d like to talk to us about your property management marketing plans, please contact us at Fourandhalf via the form below.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post 2024 Property Management Outlook with Jeff Hacker appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We’re welcoming MaryAnn Hoffman and Andrew Dougill back on The Property Management Show. They are the couple behind Hoffman Realty in Tampa, Florida, and they were with us on a previous podcast, where they discussed how they got started in the property management industry as a husband and wife team.

One of the things they said during that discussion was how scary it was to have all their eggs in one basket during the Great Recession of 2007 to 2009. We asked them to come back and talk about how they managed that crisis and how it affected their business, especially since there’s talk of another real estate crisis looming.

Business Lesson: Learn to Be Prepared MaryAnn says she has learned to be prepared. She recommends having some extra money in the bank because it will be tough for a while. During any recession, you’ll be white-knuckled and wondering what’s going to happen next, but always remember that the market comes back.

Last summer was wonderful in the Tampa rental market. They were renting houses easily and the rents were going up. Now, the market is adjusting. Prices are coming back down. You have to be prepared for that, and you have to remember that when things are really good – they’re not always going to stay really good. And, when they’re really bad – they’re not always going to stay really bad. Nothing lasts forever.

Andrew remembers that in 2005, they began working with an older couple who had about a dozen rental properties to be managed. Everyone could see, at that point, that the real estate market was potentially going to tank. Everyone wondered when it would happen, and as Andrew was talking with this couple, he asked for some advice since they had been through three real estate recessions in their lives.

They told him that it would be scary, but that he’d get through it and the market would recover. When it did recover, they said, it would recover better and grow even more than before. They advised him to be prepared and to know his financials.

So, Andrew and MaryAnn took a hard look at their financials. They are real estate investors, too, and they had their own rental properties to evaluate. They decided that they’d probably be fine if the recession did arrive, but they might struggle a bit if rents dropped.

They made the decision to sell three rental properties so they’d have enough cash on hand to keep their business alive. It may be what saved them.

In 2008, rents dropped 10 percent. They dropped again in 2009 and in 2010.

Andrew reminds us that the great thing about getting loans for real estate is the leverage that provides. They increase your yields when things are going well. Cash on cash returns are better with a loan. But, when things go bad, you find yourself with negative leverage, and that can sink you quickly.

The number one lesson, then, is to have enough cash on hand so you can make it through the worst of the recession.

Making Recession-Proof Business Moves: Deciding which Properties to SellOne of the properties they sold was actually their dream home. It was a gorgeous house they had just finished remodeling, and the idea had been to move into it themselves. But, knowing what was potentially coming, they sold it instead. This made them a lot of money and helped them get through the economic downturn. They had to give up a dream home, but they kept their business running and they paid their staff. And, they built another dream home after the recession.

The experience of MaryAnn and Andrew is interesting because the negative leverage and dropping rents weren’t just their own concern – it was a concern of their property management customers.

These investors began giving up on their homes. So, they lost some property management business but they were able to make some short sales for those clients. A lot of accidental landlords began to come through the doors of Hoffman Realty. They could not sell their properties for the amount of money they had invested. The logical alternative was to rent until the market improved.

The diversity of the business at Hoffman Realty – having a real estate sales division and a property management division – as well as the surplus of cash from a few key sales helped them stay afloat during some very difficult times.

Educating Property Management Clients on Market ShiftsAs early as 2005, Andrew and MaryAnn started talking with their clients about the market dropping. This wasn’t just something they had to prepare for. It was also something they had to prepare their clients to manage.

When you own a property management company, you have to see yourself as an advisor to your owners.

Let them know what’s happening.

Even now, Hoffman Realty is telling their owners to be careful using comps from last summer. They’re not accurate anymore. Those owners who are listening are doing fine, but they also lost two management contracts over this message. The summer was a different market, and MaryAnn says she’s committed to being honest. If there are owners who don’t want to hear what she’s saying about where rents are right now, she releases them and wishes them well.

You want to provide your owners with the best information you have. You do not want to waste your time arguing with customers who do not value your expertise.

Worries Around a Potential RecessionThere’s less worry for Andrew and MaryAnn this time around. They know the market comes back.

They’re also in a stronger financial position with their own investments. They aren’t heavily leveraged anymore, and they understand the cycle of real estate. Investors have a lot of debt when they get started. Then, tenants help pay down the mortgage and before you know it, you’re debt-free.

The Hoffman Realty customers who aren’t in such a strong position are what worry Andrew and MaryAnn. Some of them are completely unaware. Some of them are making aggressive moves right now, despite the advice they’re providing.

They would not have done anything differently the last time, even knowing what they know now.

Neighbors called to complain about the dream house they sold in 2005, because they didn’t believe the price was high enough and it was messing up their comps. This did not bother Andrew and MaryAnn. They knew what was coming, and they didn’t want their property to languish on the market.

Trusting your gut can sometimes feel like an emotional, knee-jerk response. But, if it’s a gut instinct based on what you’re seeing in the market, you’re probably on the right track.

Protecting and Growing Your Property Management Business While discussing what types of things can be done to protect yourself against the coming shift and potential recession, Andrew and MaryAnn remind everyone to invest in real estate when you can.

They believe Realtors should always invest in real estate. It gives you a good option because if something happens, you can always sell that real estate. Use those properties you own for retirement or for worst case scenarios or a rainy day. They encourage their team to invest in real estate. Several of their staff continue to buy properties. Some will buy and hold and others will buy and flip. MaryAnn uses the analogy of “Are You a Rancher or a Farmer?” Farmers will buy the properties and keep them working. Ranchers will buy the properties, improve them, and then sell for a profit.

Is now the time to grow your property management business, given the warning signs that maybe the market will shift?

For Hoffman Realty, Andrew says the expectation is that they may lose some real estate business during this potential recession, but they’ll grow the property management side of the company by another 25 percent in 2023. That’s just being on cruise control for MaryAnn, who is happy with where the business is right now.

They have a business plan and a marketing plan, which they review regularly. MaryAnn is an excellent sales person who manages to bring in new business easily, so they’re not planning to change anything too drastically. Their plan is to continue allowing the real estate business and the property management business to work together and keep them successful.

The expert entrepreneurial advice from Andrew and MaryAnn is this:

• Don’t worry too much.
• Have a plan.
• Invest in real estate.

There’s a lot of bad news that comes with a real estate recession. One of the good things is that there will be deals coming up. All of that expensive real estate will soon become less expensive. If you can put some money aside, you’ll get a deal when the bargains show up.

If you have any questions about our chat with MaryAnn and Andrew of Hoffman Realty, please contact us at Fourandhalf via the form below.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post Entrepreneurial Lessons from the ’08 Recession with MaryAnn Hoffman & Andrew Dougill appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Kathleen Richards recently interviewed Marie for her PM Tribe coaching group. They talked about the importance of marketing for property management companies, when it makes sense to seek professional help, and the current trends in the property management industry.

There was lots of good information during that interview, and we want to share it with property managers today on The Property Management Show.

Kathleen Richards and FourandhalfKathleen began working with Fourandhalf in the early days, when the company was the first and only marketing agency that focused specifically on property managers. She began with creating video blogs, which was a new idea. Even the idea of property management marketing was new.

According to Kathleen, the content marketing help she received from Fourandhalf over six years helped her grow her business. Not only did she grow her business, she established herself as an expert in the property management industry. Kathleen had been teaching at the local college and doing workshops on property management, so the video marketing added to her credibility.

In her coaching group, Kathleen introduced Marie and Fourandhalf as a great team to work with. They took her local business, a “little company in Santa Cruz” to the next level and helped her attract new clients.

The Purpose of a Marketing Strategy The first question to tackle is a pretty simple one: What is the purpose of marketing?

And, why should property managers invest in marketing strategies for their local businesses?

General Purpose of MarketingThe general purpose of marketing is to inform, educate, and convince people about a product, service, or idea. Even nonprofit organizations can use marketing to convince people to join their causes. Politicians use marketing to get people behind them. Local businesses want to share who they are and what they do.

Marketing Property Management Services For a property management company, the purpose of a marketing strategy is to attract prospective renters who may want to rent your properties. Or, to attract self-managing owners who may need a professional property manager. You invest in marketing strategies to attract investors, to retain current resident and owner clients, and to educate potential clients on the value of professional property management.

Education is marketing at its core. You’re explaining why a professional property manager is better for property owners than managing a property on their own. You want to share benefits and highlight the problems you help property owners solve.

How Can a Property Management Company Benefit from a Marketing Plan?Let’s say you need to go somewhere you’ve never been, and instead of using a GPS or glancing at a map, you get in your car and start driving.

You might get there eventually, if you stop and ask for directions or try several different routes. But, you will get lost, and you will waste a lot of time and money.

In this metaphor, a formal marketing plan serves as your GPS or your map. It shows you the most efficient way to get to your destination. It doesn’t mean you’ll never get there without it. It’s just a smarter way to do things.

Competing with Other Property Managers and Local BusinessesThe theme for Kathleen’s PM Tribe this month is competition. Competition can be a good thing, keeping you sharp and focused and relevant.

How does a sound marketing strategy help you not only find new clients, but also compete in the marketplace?

Sometimes, it feels like you’re doing the same things as other property managers. Marketing is the best way to differentiate yourself. It starts with identifying your ideal client and understanding how to talk to those ideal new clients. You have the opportunity to position yourself as a no-brainer choice.

Too many property management companies don’t spend time thinking about their ideal client. Or, they’re not working to decide which market segment they’re best designed to serve. The market thinks property management is a commodity, but it’s not. Every company is a bit different.

The ideal client is important as you put together marketing strategies to attract prospective customers.

Then, you have to think about what makes you unique in attracting those new ideal clients. A marketing strategy will help you communicate your message. It’s a trap to accept all the new clients who come your way. Not everyone will be a good fit. There’s more churn and turnover and conflict when you open your doors to everyone. Be clear about your ideal clients. Where do they want and need specific services? What kind of properties do they rent out? You’re more successful when you’re more focused.

Property Management Marketing Sets You ApartIt can seem like a challenge to set yourself apart from your competition in a local area. How can a company set itself apart from all the others in Santa Cruz?

Marie says with authenticity.

As a professional property manager, you find yourself roped into the lives of your owners and renters. Whether you like it or not, this is the nature of the industry. If you’re authentic and human, you’re establishing yourself and your property management business as something that’s different from others.

Technology is fantastic, but property management is still a relationship business. Use technology to increase efficiency. Don’t utilize it to the point that you’ve removed authenticity from your brand. It doesn’t work. Relationships are between people, not interfaces.

Kathleen likes to say technology is there to support you, not replace you.

Digital Marketing Industry Trends Artificial Intelligence (A.I.) is perhaps the biggest trend in digital marketing right now. Everyone is talking about the influence of A.I. There’s been a panic about A.I. taking all the creative jobs. Schools are worried ChatGPT is facilitating plagiarism. Tools are coming out that promise to do everything a marketer can do. A.I. is an effective method for generating immediate content, but there’s actually nothing to worry about.

This is not the value that digital marketing agencies and creative content creators provide.

The trend is to use A.I., and that’s a good idea. But, if you believe that marketing is just about putting text in a document and publishing it online, you don’t understand the true value of a marketing strategy.

A.I. makes things more efficient, but there is so much money coming into the creation of content online, it’s clear that content marketing plans still work. Why would they invest so much money if content was not still king?

When Kathleen first started working with Fourandhalf, very few property management companies were making videos. Now, everyone is doing it. Anyone can put words on the internet. If you’re not already creating content, you’re behind. If you’re still running print ads only, you’re behind.

The trend for using relevant content to generate leads is taking off. But – you need well written copy. You need content marketing within a full property management marketing strategy.

Like competition, A.I. does not make marketing property management services irrelevant. It does make your marketing team focus on sharing the value that you bring.

Kathleen could have made her own videos 10 years ago. It might have even helped her save money. But, she wanted them to look good. She wanted them the right size and length, and she wanted them ready to share on social media channels and social media pages and other websites.

A.I. provides the same benefit in that it frees up your time. Instead of writing a listing, you can focus on a higher level of customer service.

Online Reputation in the Property Management IndustryIf you don’t have the budget for a formal marketing strategy, where should you start?

Keeping a close eye on your online reputation can be done without a budget. Stay on top of this, because you don’t want to ignore it long enough to suddenly discover you’re in a hole that you need to dig yourself out of.

If you want to attract new clients but you can’t afford paid marketing, focus on attracting prospective owners with a stellar reputation. People use online reviews and star ratings to make purchasing decisions. They do this even for a simple purchase on Amazon, so when it comes to a major investment like choosing a property management partner, of course they’ll pay attention to online reputation.

Not focusing on reputation does a disservice to your property management company.

People have a love/hate relationship with Yelp.

But, if you try to step back a bit, you’ll see how it can benefit you and your marketing strategies. In the corporate world, marketing departments spend thousands of dollars a year on focus groups. With online reviews, you have ready-made focus groups. Read company information, absorb positive reviews, and don’t be afraid to look at negative reviews. They can be a goldmine.

Kathleen remembered an incident where tenants left a bad review about her company because they didn’t get their security deposit back. After some research, she realized the tenant who posted was never a tenant of hers. So, she responded with this information and then shared information on how her company handles deposit returns. It was an opportunity for her to showcase how she did business differently.

No paid marketing required. You don’t even need a content marketing plan when you’re focused on reputation.

Be open to those negative reviews, especially if they’re true and indicate a change you need to make to your business. Always ask your clients for reviews. You can share those reviews on social media accounts and on your own web pages.

Kathleen would sometimes ask her friends to test her company. Like mystery shoppers, they would call and be pleasant and then they would call and be awful. This told her how her staff would react to different types of potential new clients.

Marie spearheaded a property management marketing industry survey a few years ago, and one interesting thing out of that is this statistic:

• Property management business owners who prioritized reputation as one of their top three business priorities were 16 percent more likely to have their property owner clients stay longer.

When you care about reputation and invest in it, there’s a better chance you’ll retain your owner clients and your tenants.

Higher retention rates depend on:

• How you’re treating people.
• Whether metrics are in place to evaluate your staff.
• Policies and procedures that are consistently followed

When you’re intentional and you prioritize your online reputation and your service to owners and tenants, of course you’ll retain them.

This is a cost effective way to ensure you’re providing the best services to your clients.

Investing in Marketing EffortsMarie has seen property management companies attract new clients and knock their business growth out of the park and others who fizzled out very fast. What’s the difference, Kathleen asked.

The most successful management companies view marketing not just as an expense, but as an investment. They look at marketing as something that you sow and then later reap.

A marketing strategy takes time. You may wait six months or even over a year to see real results. The companies that grow frustrated when they don’t have 100 new doors in a month are the ones who move on and don’t find themselves able to grow with any success. They tend to want unrealistic things given their budget.

Successful companies also understand the importance of identifying an ideal client within larger customer markets.

Long term thinking drives success more than simply thinking about this month versus last month. There is no instant gratification when it comes to content marketing plans or generating leads. No business will shift overnight. It’s a process, and you need to work through that process.

It’s easy to misunderstand the purpose of marketing efforts.

Marketing is educating your clients. You might spend a year talking to prospective clients before you finally close the deal and take on their rental property.

When is it Time for Professional Property Management Marketing?Every company moves and grows differently, but by the time you’re at 100 or 150 doors, you know you’re suddenly running a different business than you once were.

You might feel like you’re outgrowing things operationally, or maybe your property management website isn’t as impressive as other websites and you want to use it to attract new leads in a more aggressive way. Maybe you’re not getting the reviews you want or you have your eye on certain goals and you’re not quite getting there.

This is a good time to work with a marketing agency. You can expect a property management marketing strategy to get you where you want to go, especially when it comes to attracting new clients.

Once you’re making a profit, you can begin to think bigger. Invest in your property management website. Start hiring staff. Make investments in your business. You’re ready to position yourself as an expert in the property management industry. You’re thinking about paid ads and digital marketing and reaching a target audience.

It’s time to put together a marketing plan.

After years of building your business, you begin to see where your strengths are and how your way of doing business will work for an ideal client. Instead of attracting all the business, start attracting that specific business with good marketing strategies.

There’s understanding property management and there’s understanding how to put a business together. After that, you can think about property management marketing and communicating with new clients.

Figure out your market, and figure out your ideal client fits your company. Then, you’re not throwing money at a marketing plan that isn’t getting results.

Marie’s final words on effective strategies for property management marketing are simple: Rome was not built in a day.

If you’re trying to build a solid, sustainable property management business, please understand that you need to be patient. Resist the urge to cut too many corners.

Thanks to Kathleen for having Marie talk to her PM Tribe. If you have any questions about property management marketing strategies and attracting more clients, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post How to Market a Property Management Company with Marie Tepman appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Scott Brady from Progressive Property Management, a successful property management company in southern California, is back on The Property Management Show, talking to us about an updated Blue Ocean Strategy that a property management company can use for the current market.

You might remember that he joined us in 2015, when he introduced the Blue Ocean Strategy and how it pertains to property managers. It’s the theory that property managers don’t actually have to compete with each other; their own property management company can access a local market that’s wide open because of the overwhelming number of self-managing investment property owners (SMIPOs).

Not much has changed, he tells us today, except instead of targeting only the SMIPOs, there are three pools of potential business that can help you grow your property management business.

A Refresher on Scott BradyScott’s journey to property management began in 2015. He was a top Realtor in the city of Placentia, California, which had a population of about 50,000 people. He ran for city council and won. He served as mayor for a term.

When the recession hit the real estate industry in 2007, like many real estate investors and professionals, he was caught flat-footed. He had been busy buying and selling real estate and building a real estate brokerage. He left the city council in 2008, and spent a couple of years regrouping. He knew that recessions happen every seven to 10 years, and he wanted to be prepared for the next one.

So, he decided to start a property management company.

He wanted to build right away, so in 2012, he launched Progressive Property Management.

Scott started with zero doors and now he and his team manage 1,200 doors.

Association management was added to his company during COVID. There was a good month where every property manager was sure all their tenants would stop paying rent. So, association management seemed like the logical next step to diversify a property management business that may have suffered during the pandemic. He began taking on association clients in 2020, and now serves 85 associations and 5,000 owners.

The lesson he learned is this: You have to think ahead. Get prepared before the other shoe drops.

One of Scott’s favorite quotes is from Jeff Bezos. When he was running Amazon, Bezos said that during quarterly earnings calls, analysts would get excited about a particularly good quarter. They’d try to figure out what they did so differently that quarter. But, if they had a good quarter, it was likely because of something they had done three or four years ago. Nothing happens overnight.

What you’re doing today will benefit you in two or three years, not two or three days.

Residential Property Managers and New BusinessIn 2015, Scott told us that 75 percent of rental property owners in the country were self-managing investors. Given everything that’s happened since then, what do you think that percentage is now, in 2023?

Scott believes it’s about the same.

Real estate investors self-manage their own investment properties because they think they have the time.

Property managers need to tell these self-managing property owners that they’re costing themselves money. Because if you can describe a person’s pain points better than they can, you’re going to earn their business.

By managing on their own, they’re not getting quality renters. They’re not getting lease renewals and high rent payments. They’re not being proactive with maintenance, and they’re not protecting their asset with specific programs. They’re not conducting property inspections or charging tenants appropriate fees.

As an industry, we have to tell them that they actually don’t have the time and the skill to provide their own management services, but more importantly, they’re costing themselves money.

As a property manager, if you’re charging around $150 a month, after they deduct that cost on their taxes, they’re paying you $100 a month, net. So, for $1,200 a year in management fees, they can make a lot more on their investment. An ongoing management fee costs less than vacancy. Lease renewal fees cost less than turnover.

This is the time to for a growing property management company to bring in more business. You might have been successful adding 20 doors a month in the last few years, but you’d also be losing 20 doors a month because everyone was selling. No one is selling now. So when you gain those 20 doors a month, it’s a net gain.

This is a good time to be in the property management business.

3 Blue Ocean Strategies for Property Management Companies TodayA Blue Ocean Strategy keeps the waters blue with opportunity instead of red with competition. We discussed this idea in depth with Scott in 2015, and you might want to refer to our 2015 podcast for background on this strategy. The idea is: other property managers are not your competition. Those self-managing landlords are your competition.

Scott says most property management companies can target three groups for the current Blue Ocean Strategy.

1. Real estate agent. Real estate sales are down 45 percent in southern California. That’s a big hit in real estate income for agents. They love the business and the lifestyle, but how can they do that with the market what it is? Progressive Property Management offers them a business model where they can work as independent contractors and manage residential properties and associations. Scott’s company will provide a way for them to earn $2,000 or $3,000, or $4,000 a month. They even provide the properties to manage. It’s a business structure that works for Progressive and the agents.
2. Residential real estate management. Whether it’s a new property owner or new clients who have been managing their own properties for years, the self-managed rental properties are still a big market for property managers. In 2015, these property owners didn’t feel like they had a lot of margin. They might have been renting out a property for $2,000 a month, and their mortgage was $1,800. Now, that property is renting for $3,000 a month, and if they managed to refinance when rates were low, their mortgage could be down to $1,600 a month. It’s a bigger margin, and they can afford property management fees. Also, that asset in 2015 was maybe worth $500,000. Now, it’s worth $800,000. It’s more valuable, and instead of selling it, they’ll hold onto it while they have a three percent interest rate on their mortgage. They’ll let you rent that house out for them.
3. Associations are potential clients. Association management is another blue ocean of opportunity. In California, the minimum salary for exempt employee is now around $75,000. The large management companies do not want to manage small associations with 20 to 100 property owners. It’s not feasible for them, but it’s perfect for a company like Scott’s because his real estate agents are independent contractors. They are not paid a salary. They get a commission. So he can take an association community and charge $1,200 a month and pay the managing agent $600 a month.

Many property management companies will choose one of these oceans of potential new business. Progressive Property Management is focusing on all three.

Marketing for New Business and Prospective ClientsScott says he is actively going after new business with direct mail, online leads, and networking. He’s willing to try a lot of different things, and then throw real money at whatever seems to be working.

And, remember: the things working now can be attributed to things that were put into place long ago. You cannot try something for a month and expect miracles.

Scott sends 5,000 to 10,000 pieces of direct mail every month. When an investor in Colorado gets that mail, and they have a tenant in Anaheim leaving, they know Scott’s company, and they’ll call. Those new property owners and potential clients have arrived at their pain point. In the property management industry, there are big pain points that ultimately bring in business:

• A tenant is leaving and the rental property will be vacant.
• A tenant needs to be evicted.
• A property needs rehabs.

You want to be in front of that client when the pain point hits and they realize they need a professional property management company.

With associations, you’re marketing your management services to the HOA board. When the board hires a management company, they hear all kinds of promises. But once the hire happens, phone calls drop off and the services don’t match what was promised.

If you can deliver and perform as promised, you’ll keep your association business.

Residential Property Management vs. Association Management There are different ways to manage your rental property business and your association business.

With residential management, you can get lucky. Your tenants generally behave. There are no plumbing issues. You might talk to your owner once a year. Scott says that his 35 branch managers sometimes report months that the phone doesn’t ring at all for the 30+ properties they’re managing. There are no issues.

With association management, that’s not going to happen. You can expect to work every month. The HOA board will need constant communication and problem solving.

More than with residential management, HOA boards will know when you are overpromising and under-delivering. Your systems fall apart. There are no quiet months, but you can make good money doing the things that no one else wants to do.

Generally, property owners are happy with their residential management company. As an industry, property managers do a good job taking care of clients. Maybe three percent are unhappy.

But, Appfolio did a study of HOA boards, and 45 percent of those boards are unhappy with the management company they’re using. Five percent are actively looking for a new property manager. There are 2,500 associations in Scott’s market. Those statistics tell him that 150 HOA boards are looking for new management.

Managing Happiness as a Property Management CompanyScott identifies two things that aren’t being done well in the residential property management industry:

1. Tenants are treated as a necessary evil, and not as residents. If your tenant is leaving next year, why not help them rent somewhere else? You want your tenant programs to make their rental experience better, not simply generate extra income. Show residents more love. Scott likes sending his residents a Christmas gift every year. It shows they value their occupancy.
2. Owners only hear from their property managers when there’s bad news; a plumbing leak or a tenant not paying rent. Transform the owner experience by sharing good news once in a while.

Tighter relationships with property owners and tenants are a good way to build a better business.

Progressive Property Management’s company tagline is: WE MANAGE HAPPINESS.

Scott admits that they manage crazy, too. But, his goal is to make both owners and tenants happy. To do that, the complaint calls and the maintenance requests are handled quickly. They choose vendors who are considerate and kind. They negotiate the best deal and secure the best tenant.

Guarantees are offered on investment properties, too. If a pet damages a property, the company will pay for it.

Here’s why it matters: as a property manager, you’re not competing with other property management companies. Instead, you’re competing with that 70 percent of the population that is self-managing. That’s about 200,000 doors needing management in Scott’s marketplace. So, he’s not competing. He wants to share success and business with other property management companies.

Association management is different. No one is sharing. That’s a zero sum game, and if you gain a client, it usually means you’ve taken that client from someone else. Almost no associations self-manage anymore.

The balance of residential and association management is nice.

Today’s Property Management MarketWe may be on the cusp of a new recession, and a lot of large property management firms are circulating and looking for consolidation and acquisition opportunities. Is that creating anxiety in the property management market?

Scott reminds us that five years ago, everyone feared property management entrepreneurs at Mynd were going to come in and more or less manage properties for free. Everyone in the industry thought they’d undercut the market and drive smaller management companies out of business.

That didn’t work.

Those companies could not grow organically because property management is still a belly to belly business. You’re managing an asset that’s important for someone. Scott says he has never had a potential client call looking for the biggest management company possible. They care about property management services, value, and competitive pricing.

There is a lot of money out there in the large and growing property management firms. PURE Property Management raised 80 million, and Home River wants to acquire as many small companies as they can. These giants don’t want to destroy small companies, they want to acquire them or consolidate resources and expertise in the local market.

Some companies have to sell. Some companies want to. The best decision is up to you.

Over the last five years, the industry has learned how to cut costs while managing properties. A lot of businesses are using virtual assistants and part time employees. Technology is used more and property management software programs have been embraced. There are additional programs in the industry that add revenue.

Margins have moved from what was 0 to 5 percent seven years ago to potentially 25 and 30 percent for some management companies today. That’s a testament to the property management industry and how we’ve been managing properties more efficiently, Scott says. And, we still have a way to go.

The recession will create more doors to be managed in the next three to five years. There are short term rentals opening new opportunities in the industry. There’s commercial property needing to be managed. A lot is happening.

As organized real estate finds itself in trouble these coming years, big brokerages will find themselves losing money and talent. It creates an opportunity for property management companies. Rental properties are the place to be, and it wasn’t always that way.

How will you take advantage of that?

Property Management Services and GoalsScott is excited for this year and next. He sees a lot of growing property management companies, and he has set some growth goals of his own.

For example, he’s put a lot of money back into the business. They’re looking at business structure and new areas and they’re investing in digital marketing. He’s experimenting with lead generation, direct mail, business website improvements, and paying for referrals.

Bono, from U2 talks about the band trying to make an album in 30 days. It actually took 90 days. People asked if it’s because they struggled to create songs, but the problem was the opposite. They came up with 30 additional songs while they were in the studio!

You cannot stop digging for gold until all the gold is discovered.

Put your money and resources towards growth right now because the next five years could be the best five years in the history of property management. You can be proud of owning a successful property management business.

If you have any questions about our recent or past conversations with Scott Brady of Progressive Property Management, or you’d like to talk about your own property management business, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY NameThis field is for validation purposes and should be left unchanged. Contrary to popular belief, Brittany and Marie are actually NOT the same person – despite having a shared bio. Together, they host Fourandhalf’s podcast called “The Property Management Show” where they have fun examining all the nooks and crannies of running a successful property management business in this day and age. When they’re out of the podcast spotlight, their day jobs involve working with the wonderful Fourandhalf team helping property managers grow their business. Brittany and Marie have three shared passions: marketing, helping people win, and most importantly – Harry Potter.The post 3 Blue Ocean Strategies for Growing Property Management Companies with Scott Brady appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The current economic climate is a double-edged sword for property management companies. On the one hand, we are seeing increasingly high demand for rental property as people look to downsize and move away from homeownership. On the other hand, with reduced job security and income levels, tenants may find themselves unable to pay rent or in search of lower cost housing options. This means that property managers must be prepared to weather any economic storms on the horizon – but how? Kim Meredith-Hampton & Scott Hampton have some ideas about how best to recession-proof your property management business.

Lessons Learned from Past RecessionsKim and Scott are no strangers to economic downturn. Their company survived the Great Recession of 2007 to 2009. Before the recession hit, Hampton & Hampton had a large portfolio of rental properties, mostly brand new homes, managed on behalf of various investors. These investors were able to obtain financing from banks with little difficulty. So they were able tobuy homes they couldn’t afford.

The company did not realize the risk of this until tenants began calling with foreclosure notices on their rental properties. Kim and Scott soon discovered that many of their clients had not made mortgage payments for months and were only collecting rent. The banks were approving everybody for everything, and they had unknowingly taken on clients who were in over their heads.

As a result, the company had to adapt quickly. They implemented new procedures, such as checking if owners were in foreclosure before taking on their properties and creating a foreclosure disclosure for tenants. This disclosure would inform the renter that the owner of the house they are renting is in danger of being foreclosed on by a bank. This helps people know if their home could be taken away from them and lets them plan ahead for this possibility.

Eventually, the company was hired to handle foreclosed properties for banks. They would offer tenants cash to vacate the property. This was a win-win for everyone involved – the tenants received a payout to help them move out, and the banks were able to avoid costly and time-consuming eviction proceedings.

Strategies for a Recession-Proof Property Management BusinessThere’s more than one way to create a recession-proof business. As a matter of fact, it’s a good idea to implement multiple different strategies to keep yourself from getting stuck if one proves ineffective. Let’s look at a few of the ways you can make your property management company more recession-resistant.

Diversify Your Portfolio of PropertiesDiversifying your portfolio means investing in different types of properties, such as residential, commercial, and industrial. If you have all your properties invested in one sector, an economic recession that impacts that sector could have a significant impact on your overall income. However, if you have properties in different sectors, the impact of the recession is spread out, reducing the overall risk. Different types of properties may also appeal to different markets, allowing you to access a wider range of tenants or buyers.

Cut Costs Without Sacrificing QualityAs a property manager, you’re always looking for ways to reduce costs without sacrificing the quality of your properties. In today’s economic climate, it’s more important than ever to find ways to save money while still providing a high level of service to your tenants. Here are some strategies that you can use to achieve this:

Energy EfficiencyBy investing in energy-efficient appliances, lighting, and HVAC systems, you can reduce your energy consumption and save on utility bills. This will also improve the comfort and convenience of your residents, which leads to higher tenant satisfaction.

Preventative MaintenanceRegular maintenance is essential to keeping your properties in good condition. However, by focusing on preventative maintenance, you can catch issues before they become costly repairs. For example, scheduling regular inspections of your properties to identify small issues before they turn into major problems that require expensive repairs.

Use TechnologyKim and Scott are always ready to try new things. When hedge funds started getting into real estate, the property management industry began to ramp up quickly. At the time, there wasn’t a lot of great technology available. By being flexible, they were able to discover new systems and improve the efficiency of their team. Ultimately, this is what enabled Kim and Scott to step out of the nitty-gritty, day-to-day operations and work on growing the business.

Technology can be a cost-effective way to improve efficiency and reduce costs. For example, using property management software for leasing, accounting, maintenance, etc, can help you streamline your operations and reduce administrative costs. Smart technology, such as smart thermostats and lighting, can also help you save on energy costs.

Focus on Tenant RetentionVacancies can be costly, so it’s essential to focus on tenant retention. By providing excellent customer service and responding promptly to tenant requests and complaints, you can increase satisfaction and reduce turnover. This can help you save on marketing and advertising to attract new renters.

Be Proactive in Communication with Owners and TenantsEffective communication is an essential component of successful property management. Being proactive in your communication with both property owners and renters can help you build strong relationships, boost retention, and even save money.

During economic downturns, tenants may face financial difficulties that can lead to missed rental payments or even eviction. By proactively communicating with them, you can address potential issues before they become major problems.

Invest in Marketing and NetworkingIn a recession, it can be tempting to cut back on marketing and networking efforts in order to save money. However, investing in these areas is essential for the continued success of any business during an economic downturn. Marketing allows you to reach new customers and maintain relationships with existing ones, while networking gives you access to valuable resources that may help your business during a difficult time. By investing in both marketing and networking before and during a recession, you can ensure long-term financial stability.

Best Practices for Managing Cash Flow During a RecessionIt’s undeniable that a recession can leave businesses across many industries feeling uncertain and overwhelmed when it comes to setting realistic budgets and financial goals. With economic sectors across the board being impacted, property managers need to take stock of their current resources and use strategic planning to best position their organization for ongoing success throughout this period.

Maintain Cash Reserves and Contingency PlansHaving cash reserves can provide a safety net during times of financial uncertainty, allowing a business to continue operating even if revenue decreases significantly. This can help to cover fixed expenses such as rent, salaries, and utilities, ensuring that the business can stay afloat and avoid defaulting on payments. Combined with a good contingency plan detailing potential risks and specific actions to be taken in response, you should be able to weather a recession.

Cash reserves can also provide a business with opportunities to invest in growth during a recession. With many competitors struggling to survive, a business with cash reserves can take advantage of lower prices to acquire new assets or expand its operations, positioning itself for long-term success once the market returns to normal.

Track and Analyze Financial Data RegularlyDon’t get caught unprepared when recession strikes. Keep a close eye on your company’s financial performance. Try to identify potential problems or areas of concern before they become significant issues. Good accounting systems will also help you track spending and ensure that you are operating under budget.

Seek Out Financing OptionsDuring a recession, it may be more challenging to obtain traditional financing options such as bank loans. However, there are other financing options available that can help you navigate a tough economy. The following are some common financing options that property managers may consider:

1. Small Business Administration (SBA) loans: The SBA offers several loan programs designed to help small businesses, including property management companies. These loans typically have lower interest rates and longer repayment terms than traditional bank loans.
2. Bridge loans: Bridge loans are short-term loans designed to provide immediate funding to cover expenses during a transition period. These loans can be used to cover the gap between the end of a current loan or other financing and the start of a new financing option.
3. Private lenders: Private lenders may offer alternative financing options to property managers who do not qualify for traditional bank loans. These lenders may be more flexible in terms of credit requirements and collateral, but typically charge higher interest rates.
4. Line of credit: A line of credit is a flexible financing option that provides access to funds as needed. This can be useful, as it allows you to draw on funds as needed to cover expenses.
5. Factoring: Factoring is a financing option where a property manager sells their accounts receivable to a factoring company at a discount in exchange for immediate funding. This can be a useful option for property managers facing a cash flow crunch during a recession.

Exploring New Avenues For Real Estate Investment Opportunities After experiencing the ’09 recession, Kim and Scott learned the importance of staying ahead so that they don’t get caught off guard like they did with the unexpected foreclosures we went over earlier. Over time, they have diversified the types of properties that they manage so that they are not putting all their eggs in one basket.

Introducing Multi-Purpose Spaces As A Cost-Effective SolutionNow Kim and Scott are working on transitioning from a traditional office to a multi-use space. Essentially, this is a way to reduce overhead expenses by renting out part of the office as a co-working space. As investors themselves, Kim and Scott own the building, which makes this kind of solution possible. It provides a safety net because, if need be, the space could fit up to 4 separate offices, allowing them to earn rent should one of their other income streams dry up.

Looking Forward – What’s Next On The Horizon?Kim and Scott have a lot of things in the works despite a shaky economy. They see themselves as always being a step ahead and they are always looking for the newest idea or innovation. Kim refers to them as “trendsetters” and “guinea pigs” – always willing to be the first to try out the latest tech. We’re excited to see what they have in store.

If you’re a property management company looking to grow your business, we encourage you to get in touch with the Fourandhalf team by filling out the form below.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post Weathering the Storm: How to Recession-Proof A Property Management Business w/ Kim & Scott Hampton appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Greg Crabtree, CPA is back on The Property Management Show to talk about marketing spends and the return on investment (ROI) that property management companies should expect to see on marketing budgets.

If you’re not already familiar with Greg, he’s an accomplished entrepreneur, financial expert, and the author of Simple Numbers, a book that every business owner should have read by now.

When we first had Greg on The Property Management Show, it was at the beginning of the COVID-19 pandemic, and we were talking about managing cash flow for small businesses. He said that although company owners pick marketing as the first thing to cut back on, he didn’t necessarily agree. You can watch/read our previous interview: Managing Hits to Your Property Management Cashflow.

We asked him back on the podcast to talk about why that behavior exists in business, and why he thinks it’s a big costly mistake.

First, let’s talk about the effect of economic trends on marketing spend.

Marketing Spend and Economic TrendsMarketing spending is traditionally seen as a canary in the coal mine for economic slowdowns. The spend may not be cut to zero, but companies don’t want to spend extra money on marketing when they feel like there’s not a customer willing to respond to those marketing efforts. When marketing budgets are cut, it’s an indicator that the economy is softening.

While researching for his next book, Simple Numbers 2.0, Greg created a model that aggregated clients’ data as if it was one big conglomerate. This was across a blend of industries and across geographies. This model focused just on U.S. economic statistics and captured data from 100 companies.

The marketing spend of that model dropped about 60 percent right at the beginning of COVID.

Remember that a lot of businesses closed during the early days of the pandemic. You’re not going to market a business that no longer exists.

On the other side of that trend, some companies saw a huge influx of business because they served the needs of customers during an unprecedented pandemic. Business was coming in faster and faster.

They didn’t need to invest in marketing, either; they had more business than they could respond to.

It took over 12 months for the rate of marketing spending to get back to the pre-COVID level.

Fast forward to today. There have been a lot of wild shifts. Companies have done a lot of different things, but even many of those that suffered are now getting back to the feeling that things are working. The biggest issue for those companies, right now, is labor.

Labor Supply’s Effect on Small Business’ Bottom LineThe biggest issue businesses are facing is the labor issue – they are finding it difficult to find people to do the job at the same price.

It’s not a question about generating new sales. It’s a question of not having the people they need to deliver on the product or service they’re selling. This is a population problem.

This is a problem that had already been set in motion years before now; COVID did not cause it.

In the U.S., we don’t have enough people to do the labor. In 2001, we were at about a 2.4% replacement birth rate. Today, the U.S. is at about a 1.6%. A stable society is a 2.1%. And, we are not willing to fill that birth gap with immigrants at the moment. This is a serious problem globally, and quite a few countries are in what we call an inverted pyramid when it comes to population.

We don’t have enough people.

Marketing Spend is Going Up Despite the Economy TankingThe economy is slowing, but marketing spends have not dropped. Marketing spends are continuing to increase in the current economy. Here’s why Greg things that is:

Your highest production and earnings capacity is the last 10 years that you work.

In 2019 and 2020, a vast majority of the baby boomer generation in this country decided to retire.

And, there aren’t any replacement workers to fill the gap. Those baby boomers retired with more money than previous generations. They also retired with a pretty developed habit of consumption that is breaking the pattern of previous retiree generations that as you get older, you spend less. This generation likes to spend money. That’s creating a demand that doesn’t necessarily get met. There’s an economy of people who are consuming, but not producing.

Businesses have to increase their marketing because new business is not going to show up through an expanding economy. You’ve got to take that business away from someone else, which is why you’ll see more aggressive and more expensive marketing that helps you differentiate what you do against what your competition is doing.

Not only do you have to market better, you have to perform better, too.

How Economic Factors and Marketing Spends Impact Property ManagementWhen COVID first arrived, a lot of property management marketing was suspended. We were at a standstill, waiting to see what would happen.

In the world of property management, Greg sees some distinct cross-currents.

When it comes to residential real estate markets, there are two things for property managers to understand:

1. You need to keep marketing so you can attract new properties to manage. There’s a good chance you’re losing existing customers through acquisition. Good customers have sold or are selling.
2. Rents are at historic levels. Multifamily properties are a great place to deploy a large amount of money because occupancy rates are also high. This could potentially lead to some sort of national rent control, if not legislatively than definitely through bureaucracy.

Property tax increases are another problem for investors in rental real estate.

You may be earning high rents, but you also have a huge property tax bill.

For commercial rental properties, there are different challenges, specifically when we talk about retail spaces. Office spaces, too. We have seen a bit of a return to the office, but not to the point that it was pre-COVID. These commercial properties usually don’t have long-term mortgages, either, so when it’s time to reset their mortgage, expenses will skyrocket.

Rethinking Property Management Marketing SpendIt’s not so much about how much you spend, but understanding what’s effective when it comes to marketing.

Greg tells his property management clients to spend every amount they can on marketing, as long as it’s effective.

It’s more about your return on investment. Are you getting back what you’re investing into marketing your property management business?

Greg calls it launch capital in Simple Numbers 2.0; the idea that for marketing in general to be effective, you want to recover the cost and improve profitability by 50 percent of what you spent.

His example is this: maybe you could have made $100,000 in profit this year. But, you chose to spend $50,000 on a new marketing campaign in an effort to win new business. Your real profit for the year is $100,000, and your launch capital span was $50,000. You need to make sure your new profit covers the $50,000 spend as well as $25,000 more.

In essence, you’ll want to earn back $125,000 of profit. That’s the way Greg looks at it.

But does that mean you can immediately expect that kind of ROI a couple of months into your marketing campaign? Definitely not, according to Greg. He is a believer in a more patient kind of marketing, which we’ll revisit later.

Greg Says Spending on Marketing is Like Playing BlackjackGreg likes to use a blackjack analogy when explaining marketing spend. If you’re playing a blackjack hand and you’re betting $25 on this hand and you win, then you know you’ll get some extra money.

You have a choice on whether you want to keep feeding the hand or not. You assess the odds, and as you keep climbing and having success, you keep feeding the hand.

But if you’re not seeing success, then you aren’t going to keep throwing more money at it when there really isn’t an opportunity for you to win.

Understand the Hand You’ve Been DealtMarketing does not always have a formula. But there are patterns of things that work.

We’re in an interesting time, and you need to ask two questions of the marketplace:

• Is the market allowing you to be profitable at the moment?
• Is the market allowing you to grow at the moment?

If you’re a real estate brokerage selling single-family homes, the market is not allowing you to be profitable right now in 2023.

You can throw in all the marketing dollars you want to try and create a profit, but the market won’t allow it. So, you may want to save that marketing spend and wait. Mortgage lenders are in the same boat.

On the flip side, property managers are well-positioned.

More people are renting because fewer people are buying. People will always need a place to live. So right now, it seems that the property management industry has been dealt a good hand.

Property Management Marketing is about Timing and Providing ValueConsumers get annoyed when they’re over-messaged. Property owners react the same way.

A surge and pause approach to marketing can ensure you’re getting yourself out there without driving away potential customers. Marketing can sometimes come off as desperate, where you’re doing more damage than good.

Good marketing is staying in touch with people who have been identified as a good potential target. You’re not wearing them out; you’re reminding them that you’re there and you’re ready to step in when they have a problem that they need solved. Marketing has to be patient.

Don’t Turn Off Marketing Just Because Times Are GoodProperty managers cannot afford to stop marketing just because they’re profitable and growing. You need to pay attention to the market and you need to have the solutions that owners and investors don’t even realize they need yet.

Those property taxes, for example, are going to be higher because property values are higher. Are you proactive in letting your clients know how this will impact their portfolios? Don’t wait for them to ask, be their source of information.

When you’re spending on property management marketing, you want the fastest ROI. But, that’s not always the best marketing. Take content marketing. You create content that provides value to potential customers, and you’re not pushy. It’s not a sales pitch, it’s providing information that could help your potential customer run their business better.

Some business owners will get impatient with that. But, marketing is an investment.

Offer something of value, and make sure that what you’re offering is something that the marketplace wants.

Your job, when marketing, is to address the pain of the customer. You’re offering a solution. You’re not just trying to beat another company on price.

What Is and Isn’t Marketing Spend?When you’re thinking about how much to spend on property management marketing, you’re assessing your return on investment. How does that look in your books?

Marketing spends will include any marketing professionals you have on staff, as well as agency work that’s done for you, billboard space you might buy, sponsorships, and online ads.

Greg also asks his clients to think about separating the marketing spend from the sales activities.

Sales and marketing go hand in hand a lot of the time, but if you have a business development manager (BDM) on staff who sort of does marketing, are you paying that person from your marketing budget or your sales budget? It’s tempting to bundle sales and marketing together, but that’s not a good practice.

Think about it. One hundred percent of the time, marketing precedes sales. There’s rarely a sale that happens without some kind of marketing. If you’re really effective at marketing, the sales process is pretty smooth.

Greg says that if you’ve used your marketing efforts to communicate the values and benefits your property management company provides, your sales will close easily.

Computing Marketing Spend EffectivenessNo matter the size of your business, understanding the effectiveness of your marketing efforts is critical for success. Calculating marketing effectiveness helps you identify what strategies are working and which ones are not so you can optimize your efforts and make informed decisions. By doing so, you can improve targeting, reach more customers, increase conversions, and maximize the return on investment (ROI) of your campaigns.

Is Customer Lifetime Value a Factor?How does Customer Lifetime Value factor into figuring out how good of a return you got out of your marketing spend? Well, it’s a bit complicated.

Although Greg believes in the value of Customer Lifetime (aka how long your customers stay with you), he doesn’t believe in how Customer Lifetime Value is typically used. You see, a commonly accepted way to compute this metric looks something like this:

Customer Lifetime Value = (Average Contract Value) x (Average Length of Customer Relationship)

Since it’s based on averages, it bundles all customers together into a simple statistic. It also implies that all customers are created equal. However, if you’ve been in business long enough, you know that this doesn’t reflect reality. Not all customers are created equal.

Customer Lifetime Value Is Too Static a MetricGreg believes that each customer’s value ebbs and flows over time. So when it comes to gauging marketing effectiveness, he believes that a simplified thing such as Customer Lifetime Value is not the most ideal metric.

This is because customer behavior is unpredictable, and thus the true value of a given customer can change over time. For example, a customer may be great when they first join but become less reliable later on; or a customer may start off as a poor customer but become increasingly valuable as time goes by.

Because of this, Greg believes that businesses should consider other metrics to measure marketing effectiveness.

Contribution Margin to Marketing Spend RatioGreg Crabtree’s preferred way to measure property management marketing effectiveness is by looking at a specific margin to spend ratio: computing your Contribution Margin (otherwise known as Gross Profit after taking into account fees and labor) and dividing it by the total marketing spend over the last 12 months.

Formula: 12-month Gross Profit / 12-month Marketing Spend

Get that ratio for the last 12 months, and compare it with previous periods to identify the overall trend. Is the trend going up or down? To him, looking at the trend line is a reasonably effective way of saying, am I getting more signal output for the dollar spent?

He goes on to say that even if the trend line is not going up, but the volume of business is increasing, then that can still mean that your marketing strategy is working. However, if both volume and signal rate are going down, then it’s time to go back to the drawing board in terms of marketing strategy.

At the end of the day, Greg says it’s not the dollar amount that matters – it’s the signal-output rate that counts. By paying attention to this ratio and tracking it over time, businesses will be able to assess their marketing strategies and see whether they are effective or not.

Focus on Overall Profitability of Your Property Management BusinessMarketing an unprofitable property management business is not a smart thing to do, yet a lot of business owners make the mistake of investing in owner marketing even before they’ve established profitability for the core business.

You have to ask yourself some difficult questions, and if you find yourself “putting lipstick on a pig”, then you have some foundational work to focus on.

A very important overarching metric Greg likes to look at is this: you need a $2 profit for every dollar of labor that you spend, regardless of what that labor does for you. If you can do that for your property management business, you’re in a good position.

Profitability Per CustomerUnderstanding your profitability per customer by year or by quarter is also important, Greg says. But keep in mind that customer lifetime value is not a constant yield. The profitability of a single customer is never going to be constant.

Expecting to make the same amount of money on a customer every single year is somewhat irresponsible. You might have to fire a long-term customer. If that customer is not profitable any longer, you have to let them go.

Pricing and Customer ChurnAnother factor that affects profitability for a property management company is pricing. What should you charge new customers versus what you currently charge your existing customers? As an example, cable companies will often dangle lower prices in front of new customers, and then they’ll raise the rates six months later.

Do increasing prices contribute to customer churn?

Maybe. But, that in itself does not keep a property management company from growing. You set a price, and that’s what your customers have to pay.

A lot of property management companies worry about adding on fees. Whether they’re fees for owners or tenants, there’s the fear that customers may leave. But if serving those customers at a lower price is not profitable enough for you, then it is actually worse for your business if they stay. So look at the overall profitability of the company, and don’t be blinded by misguided metrics such as door count or unit count.

In conclusion, a property management company’s marketing budget should not be determined simply as a percent of expected revenue. As a CPA, Greg Crabtree’s advice to property managers is to spend every marketing dollar that works. He also emphasizes the importance of treating marketing as an investment – there are risks involved, but if you deploy the right strategy and you are patient, then you will win at the end.

To learn more about Greg Crabtree and his book, Simple Numbers 2.0, you can visit: https://www.simplenumberscri.com/books

If you’re looking to get more property owner leads to grow your business, or you’re interested in boosting your property management company’s presence online, contact the Fourandhalf Marketing team via the form below.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post How to Set a Property Management Marketing Budget According to Greg Crabtree, CPA appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Are you looking to further your company’s reach and get your name in front of more property owners? In today’s digital world, it can be difficult to stand out from the crowd and attract potential clients. One of the best ways to do this is with a Pay-Per-Click (PPC) campaign, otherwise known as Search Engine Marketing (SEM). This allows you to run ads on search engines like Google or Bing.

PPC campaigns can be a great way to reach prospective property owners online quickly and cost-effectively. But did you know that the type of PPC campaign you choose should vary depending on your particular goals or needs?

When it comes to search engine advertising, there are generally two objectives: brand awareness or lead generation. Each approach has its distinct advantages, and understanding which works best for your goals can be complex. In this blog post, we’ll go into detail about the pros and cons of each strategy so that you can decide which makes the most sense for achieving success in growing your property management business!

But first, let’s do a quick refresher on what pay-per-click is, and how it can help you show up on search engine results pages.

Pay-Per-Click Marketing 101 for Property ManagersPay-Per-Click, or PPC for short, is a type of online marketing where you pay each time someone clicks on an advertisement you’ve placed on the search engine. You bid on keywords that potential customers might use to find your business, and your ads will appear when these keywords are searched. This is how Google ads and Bing ads work in a nutshell.

It’s a quick way to show up on a search engine results page, but you only show up as long as you’re willing to pay what it takes to win the ad auction.

An important thing to note is that although search ads can help you get online traffic, they do not have any bearing on your website’s organic search engine rankings. That is done through SEO (Search Engine Optimization). To understand the difference between the two, read our blog about SEO vs. SEM.

Now that we have the basics out of the way, let’s look at the two most common types of PPC campaigns for property managers: brand awareness and lead generation.

What Is a Brand Awareness PPC Campaign?Brand awareness ad campaigns prioritize getting your property management business known by potential customers. The goal is to build up favorable associations with the brand, create top-of-mind awareness among prospective property owners, and drive customer loyalty. This marketing strategy typically focuses on creating positive sentiment about the brand by highlighting its unique features and advantages.

Brand Awareness search ads can help property management companies in the following ways:* Increase visibility and recognition within your target audience. * Foster trust and create legitimacy. * Drive online traffic to your property management website or other landing pages where property owners can learn more about your business.

How Property Managers Succeed with Brand Awareness PPC AdvertisingIn the context of property management marketing, successful PPC campaigns aimed at brand awareness should present the property management company as a thought leader. Ad groups should also be optimized with relevant keywords that resonate with the specific types of owners you want to attract.

For example, investors might resonate more with a property manager who also personally invests in real estate, whereas an accidental landlord may not care as much.

All ad copy should be written with clear messages that demonstrate value and evoke emotion, while also utilizing creative visuals and engaging calls-to-action.

Maximizing Reach for Paid AdsTo maximize reach, a good brand awareness PPC campaign should be designed to capture the attention of potential customers across multiple platforms. This could include utilizing various social media channels such as Facebook and LinkedIn, as well as leveraging search engine optimization (SEO) techniques to ensure that your content is visible in relevant searches.

Additionally, optimizing for mobile devices can help increase visibility on smartphones and tablets. By designing an effective brand awareness PPC campaign with these elements in mind, you will be able to effectively build recognition for your property management business online.

How to Know Your Search Ads are WorkingMeasuring the success of a brand awareness PPC campaign can be done by looking at impressions, reach, and frequency. Impressions are an important metric to track as they provide insight into how many people have seen your ad. Reach gives insight into how many unique people have been exposed to your online ads, while frequency tells you how many times each person saw your paid ads.

Note that the definition of success is different for each market and for each keyword because PPC marketing is driven by supply and demand.

Now that you understand what brand awareness is, let’s dive into lead generation.

What Is a Lead Generation PPC Campaign?Lead generation PPC campaigns are designed to drive customer action and generate leads. These campaigns often aim to convert potential customers into actual customers by showcasing the benefits of the company’s products and services. This type is a lot more competitive than brand awareness because it targets prospects who are much lower down the marketing funnel — i.e. they are almost ready to make a purchase decision.

The main goal here is to reach people who are actively using search engines to look for solutions to their problems. This requires a comprehensive understanding of keyword research, competitor analysis, and user intent.

How Lead Generation PPC Ads Help Your Property Management BusinessLead generation PPC campaigns typically focus on high-intent keywords — phrases that indicate the user is ready to take action. For example, someone searching for “property management in Colorado” could be looking for a local business rather than doing general research about property management companies. By targeting these high-intent keywords, your lead generation ads can appear on search engines whenever someone is actively looking for property management services.

Writing Ad Copy to Attract Property OwnersWhen creating marketing copy to attract owner leads, it’s important to remember that the ad copy should be focused on features and benefits rather than general information. This type of message will be more likely to reach potential customers who are ready to take action. Ultimately, the goal is to use these campaigns to convert leads into paying customers.

Provide some incentives for property owners or real estate investors to take action and make sure to capture their contact information. Showcase the value of working with your property management business and demonstrate how you can help them manage their properties more effectively, efficiently, and profitably. To raise the stakes, you can even showcase the risks of not working with a professional property manager like you.

Defining a Successful Lead Gen CampaignTo measure if your lead generation PPC campaign is successful, look at your conversion rate (how many customers you get from the ad) and cost per acquisition (CPA – what it costs to get one customer). You should also measure your customer lifetime value (CLV) – this is the amount of money you earn from a single owner client over the entire span of your relationship. Knowing your CLV allows you to calculate what a reasonable CPA for your campaign might be.

To understand the importance of CLV to a property management business, read our blog about the relationship between Customer Lifetime and property management marketing.

Which PPC Advertising Strategy is Right for You?To bring it all together, brand awareness campaigns are great for spreading the word about your company, while lead generation campaigns are designed to draw in new leads and convert them into paying customers. When deciding which type of PPC advertising strategy is right for you, it’s important to consider your goals and budget.

Meet Your Prospects Where They Are In the Marketing FunnelDifferent types of PPC campaigns work best at different times in the decision-making process. For example, a brand awareness campaign may be helpful for a person who is early in the buying cycle. You’re simply letting them know that your company exists in the hope that they will remember you when they’re ready to make a decision. Lead generation campaigns work best on those who are later in the buying cycle. They know what they’re looking for and you are showing that you’re the best option.

• Brand awareness campaigns help to warm up leads for lead generation campaigns.
• Lead generation campaigns leverage the brand trust you built for higher conversion rates.

When it comes to digital marketing, it is essential to understand the differences between brand awareness campaigns and lead generation campaigns so that you can ensure that you are running the right kind of campaign to achieve your specific goals.

Take a look at your current marketing efforts and consider whether your strategies are aligned with your goals. If you need some help figuring out the best marketing plan for your property management company, contact us, at Fourandhalf Marketing Agency.

Since 2012, Fourandhalf has helped hundreds of property management companies get more owner leads. Fill out the form below to start a conversation about how we can best help your business grow.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. Madison Lushington is the Marketing Manager at Fourandhalf. With several years of experience in the industry, Madison brings a unique blend of expertise and passion to her role, helping clients increase their online visibility and achieve their business goals. Certified in both Google Ads and Bing Ads, Madison has achieved remarkable success in the diverse world of online advertising, enabling her to develop tailored strategies that resonate with different audiences. Outside of her professional life, Madison is a devoted animal lover and avid volunteer at her local animal shelter. Beyond dedicating her time to ensuring the well-being of rescued animals, she shares her life with three beloved dogs who she always finds time for. Madison’s caring and compassionate nature are reflected in her unwavering dedication to the success of her clients at work.The post PPC Campaigns: Brand Awareness vs. Lead Generation Campaigns appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Dave Gorham is back as our guest on The Property Management Show. He is a co-founder of Realty Solutions in New Jersey, and we’re diving into his philosophy around customers for life, and how it’s important to align a business with the idea that you’re going to serve your customers in some capacity for as long as you can.

Dialing into Customer Lifetime as a Business ModelCustomer lifetime is an important part of Dave’s business. And, it was never intentional.

This focus grew out of the discussion he began having with clients about their financial assets and their exit strategies. It became part of the same conversation. As the company began to grow, Dave was acting as the Business Development Manager (BDM), and he would talk to potential clients about exit strategies. He’d be curious about why they were buying a particular property and what they planned to do with it. Dave found himself wanting to know what the client would do with a property if it became unprofitable and a financial advisor recommended letting it go.

This naturally helped him to create customers for life. He found it was necessary to figure out how to serve a client as a property manager for the lifetime of the relationship.

Curiosity really drove these conversations.

It was Dave, building relationships and being really curious about why his clients wanted a particular property and what they planned to do. If the property didn’t make money, was that his concern as a property manager? Or, did it depend on the owner’s strategy? They might have an equity position where they don’t need the cash flow now, but they know the zip code they’re buying in will lead them to a profitable sale in five years.

For other investors, there has to be cash flow. They invest in properties that will never provide the equity that others are looking for.

Scope of Services and Customer LifetimeA lot of those conversations resulted in owners not necessarily having the answers to those questions.

For Dave, this became an opportunity to build relationships and plan for a lifetime customer. He and his partner built Realty Solutions on just one property. Many of the owners who struggled to answer Dave’s questions about why they were investing or what their exit strategies were could relate to that. They were starting with one property, too.

Initially, these questions were curiosities. Now, Dave sees these questions as part of the conversation. If a potential customer cannot answer the questions, Realty Solutions can provide advice and guidance. If they can answer the questions, they’re getting a glimpse of how Dave’s company can help them succeed. They’re saying:

“This is what the journey can look like.”

This is part of helping new customers and even existing customers understand the scope of services that Realty Solutions can provide.

You don’t want a client looking for services elsewhere when you can provide those services yourself.

When you have the conversations up front, you’re better positioned to provide all the required services, and for life.

Knowing how to talk about what makes you unique is a huge selling point. What is the heart of what you do?

Customer Lifetime from a Sales StandpointThis can be part of your sales process. You’re trying to educate someone on how to think about what would make a good investment. Why one asset instead of another? You cannot just buy a property and wait to make money.

Dave acknowledges that this lengthens the closing cycle. There might be a client eager to sign up for property management services, and Dave sees the value in slowing down and gathering all the information. What if this goes the wrong way and the client decides not to hire them for property management?

Dave says there needs to be a distinction in the company that establishes at what point services start. Before they start, he is willing to give away everything. All the advice. All the information. All the education.

Why?

Because it makes them a better customer for life.

They’re an investor. We’re investors. This makes those clients colleagues.

Realty Solutions wants to put together programs and solutions. They want to build a network. If they give away all the information they have and then a client’s exit strategy changes or they decide to manage the property on their own because they’re more educated, Dave thinks it’s great. They haven’t hurt themselves.

Self-managers are not competition. They’re future clients.

As an investor, you know how overwhelming it is to lease and manage properties. They’ll be looking for help eventually.

Maximizing Customer LifetimeOnce a customer hires you to manage their properties, how can you maximize their lifetime customer value?

The goal is to get your investors to continue growing their portfolios.

The pandemic was a huge detriment to economies. But, Dave says it allowed them to get clear on who they are. They decided that improvements could be made to how they interface and communicate with clients. They also decided they wanted to elevate the subject matter that they were discussing.

At Realty Solutions, there was a rule five years ago that property managers had to talk to five clients a month. They were stressed and busy and had stuff to do every day. They were never thrilled with jumping on a call with an owner and not knowing what the owner wanted to talk about.

Some new efficiencies have been developed. There’s a lead property manager who has one job: to talk to clients. There’s time for critical thinking and a real conversation. The operational efficiencies and structures are in place to allow that property manager to talk to owners like they’re true clients. They talk about what they want to do with particular properties or new properties.

These systems are used for constant conversation.

There’s also been a new development where they’re selling one client’s property to another client. Realty Solutions promotes itself as a brokerage. In the last few years, they have not needed to go on the MLS because they have owners who want to buy the properties being sold by other owners.

That’s a win/win. It’s a double win-win for Realty Solutions, because they’re still managing a property that they already know and serve.

One of the major pitfalls in client retention is the lack of focus on keeping those clients. Property managers put a lot of time and effort into how to get a client. They work hard in getting that contract signed. Then, it’s easy to forget about them. But you have to change the context of the conversation. That’s where you’ll maximize customer lifetime value.

Repurposing Content to Demonstrate ValueOn the business development level, a lot of content is shared to bring in new clients. If someone is searching the web for rent collection information, the BDM at Realty Solutions will share a video or a blog on that subject.

Now, property managers are re-using that content to remind clients that they’ve had for years that they’re doing more than fixing toilets in the middle of the night on a Saturday. They don’t just knock on the door and ask for rent. They’re a valuable partner in the investment process. Any property manager who is not constantly talking to customers about the value they provide is doing themselves a huge disservice.

Another example of describing value is the owner benefit package that Realty Solutions recently introduced. A lot of owners opted out but then didn’t realize that they were getting something really valuable. There was a need to reconnect and re-offer the services. This helped the BDMs at Realty Solution to tweak their message on how to sell it. Talking to existing owners helped.

You cannot assume the message you’re intending is the message that’s landing. Have the conversations that will tell you what owners are hearing.

These conversations also help with conflict resolution.

Most conflicts come from miscommunicating or misinformation.

Investing in excellent software and professional video conferencing can help you leverage the ability to communicate. If there’s a conflict with a client, Realty Solutions will get in the room and have a video conference with the client. It’s like everyone is in the room together. You can look at people eyeball to eyeball. This, Dave says, levels up the relationship. It’s harder to be mad or misunderstood.

There’s also some new email etiquette that triggers in-person conversations. If an email goes out for the third time, the property manager knows that it’s time to stop and make a phone call. Something is being miscommunicated if three emails are required to sort it out.

Tracking Improvements and Customer LifetimeAccording to Dave, the customer lifetime value at Realty Solutions pre-COVID was eight years. A lot of things happened post-COVID and the market is now insane. There was a fear that a lot of clients would sell. Which was true. Except that in order to sell, a buyer is required.

It’s easy to panic about losing a client to a sold investment property. Now, it’s a celebration for Realty Solutions. They’re already talking about exit strategies. Their team can help. They can even keep it in their portfolio by selling the home to another investor.

Dave believes this will improve their customer lifetime value. In a few years, he believes it will be much longer than an average of eight years.

Sometimes, it’s not necessarily customer lifetime value you’re looking at, but property lifetime value. Dave remembers an owner who was in trouble. The owner sold Realty Solutions his entire portfolio, including one property in particular that the team didn’t want. So, they sold the property to an outside buyer.

That buyer then needed property management. After that year of owning the home, he hated the property too, and wanted it sold.

Realty Solutions put it on the market, and one of their clients bought it.

They were left managing a property they never wanted to own.

But, it’s an example of getting a lot of years off a single property.

Customer Lifetime and Business DecisionsFocusing on customer lifetime value will influence the business decisions you make.

For example, it will change how much you spend on marketing versus another acquisition.

Understanding customer lifetime value also impacts the way Realty Solutions approaches shedding clients that are not really working for them. Their clients need to fit their business model and participate in the whole picture. Dave is willing to take risks, but he’ll also make a quick judgment and pull back if he sees money being lost.

Spending on advertising, for example, increased over the last two years. Many companies pulled back on their advertising budgets. Realty Solutions did not. They saw where their revenue was declining, and they took measures to stop it. That included more robust advertising.

Now that they’re in a stronger place, it makes sense to pull back on advertising and sink more money into digital marketing.

Remember that marketing is not just advertising. When you’re thinking about property management marketing, your strategy is not to market in just one way. There’s a whole mix of things you can do. Some of them are foundational and some are advertising. You can shift the dollars in your marketing budget from one thing to another.

This is an important nuance.

A poorly run business does not help your clients. If you’d like to talk more about what you heard Dave discuss with us, please contact us at Fourandhalf. We’d be happy to talk about your lifetime customer value.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. Contrary to popular belief, Brittany and Marie are actually NOT the same person – despite having a shared bio. Together, they host Fourandhalf’s podcast called “The Property Management Show” where they have fun examining all the nooks and crannies of running a successful property management business in this day and age. When they’re out of the podcast spotlight, their day jobs involve working with the wonderful Fourandhalf team helping property managers grow their business. Brittany and Marie have three shared passions: marketing, helping people win, and most importantly – Harry Potter.The post Creating Customers for Life appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Generative AI has taken the world by storm, and every industry (including property management and real estate) is scrambling to figure out how to capitalize on this. It’s a brave new world, and those who can make the most of it will be the ones who come out on top in the end.

Marie Tepman’s Fourandhalf Nails and GenAI Conference Badge

This is exactly why I attended the GenAI Conference in San Francisco hosted by Jasper on February 14, 2023. It was the very first conference ever about Generative AI, and it brought together the leading minds in the field such as the CEO of Stability AI, Emad Mostaque, and the Chief Scientist of GPT-3, Dario Amodei.

Top caliber panelists and speakers included the former CEO of GitHub (Nat Friedman), CEO of Jasper (Dave Rogenmoser), and VP of Product and Partnerships at OpenAI (Peter Welinder).

At this conference, I learned a lot about how this technology works, where it is headed, as well as its impact on marketing any business. But since I specialize in property management marketing, the focus of this blog is how to leverage my learnings about Generative AI for property managers. Here are some of my key takeaways:

Traditional AI vs. Generative AIBefore this conference, I was under the impression that AI was AI. But it turns out, I was wrong. We’ve all heard of the “AI will take over the world” trope, which has been the subject of many sci-fi movies. It’s not exactly new.

According to the article “The History of Artificial Intelligence” published on the Harvard website, Artificial Intelligence (AI) has been around since the mid-1950s. Alan Turning initially explored the possibility of using machines to solve complex problems, but the term “artificial intelligence” wasn’t used until the creation of Logic Theorist, the first AI program, five years later.

Fast forward to the late 1990s, and AI was able to beat Russian chess grandmaster Gary Kasparov in– you guessed it, the game of chess. This type of AI is referred to as traditional AI.

What we refer to as traditional AI, is designed around problem-solving. It takes complex data sets and uses them to make decisions or predictions.

Generative AI, on the other hand, is designed to create content. Whether it be articles, emails or even text messages, generative AI can generate responses based on what it has ‘learned’ from data. So while traditional AI was used mainly for problem-solving tasks, generative AI can be leveraged for creative activities.

How Generative AI WorksAs its name suggests, Generative AI works by taking existing data and using it to generate new information. It does this by analyzing existing pieces of content and then generating new ideas based on the patterns it finds. This technology can use both structured and unstructured data from a variety of sources, including images, audio files, text documents, etc.

One of the most innovative features of Generative AI is its ability to self-correct itself. This means it can adapt quickly to changing requirements and new data sets. It can also produce more accurate results than traditional AI.

The most popular Generative AI interface out there is ChatGPT. It’s an AI language model that was designed to mimic the way humans converse.

Why is ChatGPT So Popular?Although the developers of Generative AI tools can tell you how they work, what’s fascinating is even they don’t fully understand what their tools are capable of. As Peter Welinder from OpenAI said during a panel, they launched their tool with absolutely no expectations. They were shocked by the mass reaction and adoption of ChatGPT. His team had no idea that their chatbot could even code in Python until users started talking about it.

So far, users have reported ChatGPT being able to write poetry or music, make predictions based on data, and generate text that can be used in business and research. The thing that makes this chatbot so revolutionary is its user-friendliness and its ability to understand context within the same conversation. These qualities (and the fact that you can get it for free) have made it accessible to literally anyone — catapulting generative AI into the mainstream.

AI to Streamline Content Creation for Property Management BusinessesGenerative AI is already being used to create content in every industry you can think of. The industries represented at the conference were staggering.

There have been conversations within the property management community about how AI tools are poised to disrupt the property management marketing space. My professional opinion is that they have already disrupted the space.

To understand exactly how it has done so, let’s break it down to the different types of content that property management businesses need to generate regularly:

1. Property Listings ContentGenerative AI can be used to create property listings quickly and efficiently. It can take existing data points such as location, price, square footage, amenities, etc., and generate content for each listing automatically. This saves time by eliminating the need for manual research, writing and editing.

Earlier this month, the Triple Win Podcast by Second Nature put together a panel discussion about AI’s role in property management. During that panel, self-proclaimed property management automation ninja, Wolfgang Croskey, explained how he uses ChatGPT for property marketing.

Before ChatGPT, his team could spend 30 to 45 minutes writing a rental property description that was deemed “really good.” But now, he is using Zapier to push relevant information from his CRM onto ChatGPT, and the AI then writes advertising copy for each rental listing.

He also said that doing this was a no-brainer because property descriptions are necessary, but not impactful. Think about it — when was the last time someone wanted to rent or buy a home because of the listing description you wrote?

2. Social Media and Video ContentGenerative AI can also be a great ally for creating social media and video content. The same tools we mentioned above (ChatGPT, Jasper AI, etc.) can help you easily craft captions for your visuals or come up with funny puns to make your followers laugh.

The first speaker at the GenAI Conference was a very popular content creator and internet personality named Zach King. He shared exactly how he and his team utilize AI tools to spark new ideas, improve their content briefs, and get to the execution phase so much faster.

That talk inspired me to utilize AI more in Fourandhalf’s content creation process. As a result, we were able to slash our internal video creation timeline in half! And even better, we’re working on creative ways to bring those efficiencies to property management companies to help them get more visibility online.

3. Email Marketing Content and Google Ads CopyUtilizing marketing automation and pay-per-click advertising such as Google Ads are good for business, but coming up with the actual content can be daunting and time-consuming.

Generative AI can come to the rescue in this case, as well. For example, ChatGPT can help you create email or ad copy quickly and easily – all it takes is a few clicks. One of the panelists during the conference even shared that he uses ChatGPT to draft emails for him. Although he wouldn’t trust it enough to simply copy-paste directly from the chatbot, he said that he can usually get something that was 90% good enough.

However, writing the copy is only part of the battle. You still have to set up your campaigns and maintain them. Read our blog about what it takes to maintain a Google Ads campaign.

4. Lead MagnetsAI tools can help you create interesting lead magnets such as ebooks and guides. For example, ChatGPT can help you generate ideas for topics to focus on in a lead magnet or even provide content summaries that you can use.

Just note that when Fourandhalf tested how well ChatGPT can write about property management, it skewed more towards tenant-facing content rather than owner-facing content. So if you are trying to create lead magnets to attract owners rather than tenants, make sure you use the right prompts to guide the algorithm.

5. Online Reputation ManagementI know, I know. This one sticks out like a sore thumb. How is online reputation related to content creation? I’m glad you asked.

Think of your business’s online presence as a stage and everything that can be attributed to it as the content that you put on that stage. This includes the online reviews and your clever responses that are publicly available for everyone to see. Remember, potential renters and property owners are watching and consuming all of this content during the Consideration Phase of their buyer’s journey. So, let’s give them a show they won’t forget – one that makes them want to work with you.

AI tools can help you quickly and easily craft review request emails, as well as draft review responses that are professional and custom.

6. Property Management Website Copy and BlogsGenerative AI can also be used to write website content for a property management business in less time than it would traditionally take. We’ve seen several property managers online who are vocal about their use of AI when writing copy for their website or blog pages. The most popular tools of choice are ChatGPT and Jasper AI.

But a word of caution: even though Google does not discriminate against AI-generated content, it does have very high standards on what it deems worthy of indexing on relevant Search Engine Results Pages (SERPs). AI can help you write faster, but you have to pay attention to quality if you want your website copy and your blogs to help with Search Engine Optimization (SEO).

Screenshot of Danny Sullivan Tweet about Google’s Stance on AI generated content

I recently wrote a blog on the Fourandhalf website about this very topic, so be sure to read the post titled “Google Algorithm Updates: How they Impact Property Management Marketing“.

And speaking of Google and SEO, the next section is about to blow your mind.

Bing Chatbot and Google’s BARDBING has already integrated ChatGPT, and Google is working on a similar integration for Google Search that they are calling BARD. What does this have to do with SEO? Well, everything.

It’s really about supply and demand. As of February 2023, the majority of online searches are still done by typing a query on a search bar and then getting a whole page filled with links, images, videos, etc. This page is called a Search Engine Results Page or SERP. It’s riddled with ads, and the user essentially has to pick which pieces of content to consume and which links to click.

But once the two biggest search engines shift their platforms into chat-first, it would change the way humans get their queries answered. Users just need to type in a question, and the chatbot spits out a short, concise answer. No ads, no having to sift through several links and articles to find a source you deem credible. The chatbot will basically analyze and summarize all the relevant articles and deliver that summary to the user.

This means that the way we’ve been optimizing for the current search engines, may not be as relevant in the world of Chat Search. SEO as we know it would be upended.

GPT-4 is Right Around the CornerAs amazing as ChatGPT is right now, it’s about to get better. It’s currently based on the GPT-3 language model, but its developers at OpenAI are already working on GPT-4. This next-level model is scheduled to be released sometime in 2023, so the next several months will be a roller coaster ride for everyone.

Nobody knows for sure what it will be capable of, but it will certainly be lightyears better than what we are seeing now.

Human vs. AI: Who Will Win the Marketing Game?Turning Points Initiated by Technology

This question has haunted me for a while. Are human marketers on the fast lane to becoming obsolete? Surprisingly, attending the GenAI Conference gave me the answer to this question along with some peace of mind.

Let me explain.

The closing keynote speaker was Meghan Keany Anderson, the VP of Marketing for Jasper AI. Her talk was all about this unique time when technology is forcing a turning point in marketing. She said that in the golden age of advertising, big budgets won. In the age of content marketing, higher capacity won. But in the age of Generative AI, the best ideas will win. Because when anyone can create content using AI, unique ideas will be the only way to break through the clutter and noise.

She went on to say that AI relies on patterns and it’s not great at finding new territory. On the other hand, humans are great at finding new angles to things we’ve seen a million times before. When you combine the power of AI and the originality of people, that is where we can come up with truly great things. She urged the marketers in the room to look at AI as a tool that doesn’t come to life until it’s in our hands.

That resonated with me deeply. She made me realize that I shouldn’t look at AI as an adversary. If the world of marketing was the Kentucky Derby: we can’t win the Derby by fighting with the horses, and the horses can’t win without their riders either.

At the end of her talk, I had another realization — Jasper AI has a whole marketing team. The very tool that most people think will replace marketers, has a whole team of humans doing their marketing. That thought made me smile and gave me the peace of mind I needed.

I walked out of the conference hopeful and excited about this turning point in marketing. It’s a time when the best ideas will win and our creativity and ingenuity will be rewarded. It’s a unique time to be alive, and I’m looking forward to seeing what amazing things we can come up with in this new era of Generative AI.

Marie and Ziv at Jasper Art Experience Sign

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. ABOUT MARIE LIAMZON-TEPMAN: As the Director of Marketing for Fourandhalf Marketing Agency, Marie considers herself as a problem solver and storyteller at her core. She’s passionate about giving people the knowledge they need to succeed. She has been in property management marketing since early 2015, and has authored many blogs about the subject. She also hosts the longest running property management podcast called “The Property Management Show” where she and Brittany Stephens have fun examining all the nooks and crannies of running a successful property management business. When she’s out of the podcast spotlight, she works with the wonderful Fourandhalf team helping property managers grow their business and juggles that with being a new mom.The post Applying Generative AI Conference Learnings for Property Management Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

On The Property Management Show today, we’re speaking with Andrew Smallwood, who is the Chief Customer Officer (CCO) at Second Nature and the host of the Triple Win podcast.

We’re diving into the difference between lifetime value and transactional value and how understanding that difference will help you have a successful property management business.

Building Customer Lifetime Value versus Transactional ValueThe conventional thinking around winning is that you have to get the biggest part of the pie. You have to focus on maximizing profits. Andrew is asking us to think about winning in new ways.

Here’s the technical definition of customer lifetime value:

Customer lifetime value is how much revenue you get from a customer over the lifetime of that relationship.

From a revenue perspective, that’s an appropriate way to define lifetime value. It’s a fine metric.

What gets overlooked is that revenue cannot be the only way you look at things. When Andrew thinks about lifetime customer value, he’s not only thinking about how he’s monetizing the relationship. Here’s what he’s thinking about:

• What difference do we make for the customer?
• What value are we bringing the customer?
• How do we expand the difference we’re making and the value we’re delivering?

Increasing the value proposition and creating new value for customers will impact your lifetime customer value. If you make a bigger difference, you reap the rewards. If you start and end with how to monetize your relationship, this might lead to sub-optimal thinking and behavior; and, ultimately counterproductive results.

Lifetime Value: Keeping Customers and Residents and TalentProperty management thrives on recurring revenue. Churn is an acknowledged problem in our industry. We’re excited to see the new benchmark study but from the early results, we know it’s typical for a management company to lose 20 percent or 25 percent of its units. In the hot sales market we had through the pandemic, losing 30 percent or more would not be unheard of.

When customers are leaving at that rate, it becomes difficult to grow a business.

A lot of property managers experience getting stuck. Once you reach 150, 300, 500, or 700 doors, growth comes more slowly. Until you solve for the churn problem and you manage to be more effective with acquisitions, looking at lifetime value is your best way to sustainably grow a business.

Andrew says the question that needs to be asked is: How do we grow a relationship and bring so much value that people have such a great experience they would never leave?

At Second Nature, his team asks how to create a resident experience so good that residents don’t want to leave. They want to create an investor experience so good that investors don’t want to sell properties, they want to buy more. They want to create a team experience so good that the talent within the company wants to stay in the industry.

That drives the Triple Win philosophy.

Creating Retention Experiences While Making MoneyWe want to create experiences so good that people don’t want to leave.

But, we’re all in the business of making money.

Andrew says this takes some nuance and thinking.

Who gets to define what a good experience is?

Ultimately, it’s the customer. Are these experiences that people pay for? Are they experiences that people stay for? Are they experiences they’ll want to tell their friends about?

If the experience isn’t doing one of those three things, is it really relevant?

How can you create a generous market value that grows the value of a customer? This is what you really need to be asking. Often, we think about the economic relationship and the pie. The longer the relationship goes on, the more you can expect the economic pie to grow, but it’s growing at the same scale.

When customers are looking for more value over time, they’ll need a bigger slice of that pie.

For property managers, this means more management for less money. You need to create new value and different values that are not necessarily commoditized. If we grow a bigger pie, everyone will get more from it.

It takes a willingness of the person creating the value to share the value.

This can be challenging for people.

You made something happen, so you should recoup all the spoils of those efforts, right? That’s fair-minded. But ultimately, if you’re trying to build relationships for the long term, you have to be willing to share value and be generous with others. This extends your relationship over time.

Sales and Customer ConnectionsAndrew has been in sales for a large part of his career.

He understands the hyper-focus on closing deals and increasing commission checks.

But, he does not think about sales in a conventional way. Second Nature attracts a different customer to the company because of that.

Here’s what he believes about sales.

Sales should be about how you help people make good decisions. What difference are you making as a salesperson?

It’s not about commission. Everyone has been on the opposite side of someone who works on commission.

What you need to think about, when you’re selling, is how to solve your customer’s problem and whether you can solve it at all. If something your potential customer needs isn’t a solution you have, make a connection and direct them to someone else who can help.

Be clear on your strengths and first make sure that the customer has a problem you can solve.

A lot of decisions lead to success. At Second Nature, Andrew shows potential customers how they can help people make better decisions. They have ridden the rollercoaster hundreds of times, and they have learned some important things.

This is an approach people appreciate more. You can hit your personal income goals, but what you really want to do is help other people reach their goals. As a salesperson, you need to identify the people to whom your skills and products can bring value. Identify them quickly and then support them.

It behooves you to only sell people what they need. But, the sales culture is strong. Think about all those LinkedIn messages you probably get. They’re total strangers sending impersonal messages inviting you to schedule a meeting to talk about lead generation.

That’s throwing a dart and hoping it lands.

This might work for some people. It has not worked for Andrew, and it’s not what he encourages others to do.

Nurture the Relationships You Already HaveThink about getting the first date. Easy enough. But, moving into a long-term commitment takes effort. It’s the same with your customers. Closing the deal is a good first start, but then the relationship keeps changing. How do you determine what needs to be done with each customer?

Andrew says there’s no one right answer, but he does have an answer that may help.

Do you do something small for all customers, or do you do something big for just a few customers? Or, is it a matter of prioritizing your customers? Where do you focus and invest?

This, too, has to be values-driven. And, your business model may inform your decisions.

Andrew wants a great relationship with everyone who wants a great relationship. Not everyone wants the same relationship, however. Many customers are happy to work with and talk to you, but they’re in the relationship to get a specific business outcome. Others will form a legitimate, deep friendship with you.

Practice radical generosity. That’s Andrew’s advice. Be willing to make the first move, and see who is responsive to that first move. Decide how to create more and more value in the relationship, and look for reciprocity.

You don’t want any of your customers to feel left out. But, if you can establish what kind of relationship your customers want to have with you, it’s easy to get a sense of how you’ll need to nurture that relationship and provide ongoing value.

There’s a risk to doing nothing for anyone because you don’t want to offend someone. In that scenario, everyone gets left out.

Creating Customer Relationships that LastAndrew talks with thousands of property management company owners. We asked him what the secret seems to be…how do property management companies create good, lasting relationships with owners, investors, and residents?

Here are the insights Andrew shared:

1. The more tightly you identify your ideal customer, the more success you’ll have with that customer relationship. It’s less about demographics and more about problems. What are the problems that your ideal customers need you to solve? And, how can you solve them passionately? Focus your relationship building there. Create value for specific customer profiles, and you’ll develop great relationships. You’ll add value to those relationships. Instead of casting a broad net to bring in any fish out there, be specific about the fish you want to catch.
2. Focus on culture and hiring. Andrew loves asking, during employee interviews, for a story about when a potential hire made someone’s day. He’s heard incredible stories about what people have been willing to do, and when he hears about someone willing to invest in Moment Making, he knows it’s a good fit. Hire people who can build good relationships.
3. Avoid competitive negotiation. Andrew learned this from FBI Negotiator Chris Voss. Negotiation must be about trust-based influence. It has to be collaborative and empathetic. Tech in the property management industry is exciting, but it doesn’t solve for empathy. Think about how you’re handling interpersonal interactions, especially with difficult people. The team environment matters. If someone is incentivized on how many customer tickets they’ve processed per day, they’ll be as short with a customer as possible. What you need instead is a team member who can create the right experience and produce a good feeling.

Are you thinking that this all makes sense for a large company with a lot of resources, but not for a smaller property management company who feels the need to cast a wide net and bring in as many fish as possible?

Andrew says this takes us back to where we started the podcast today.

It’s not a question of a company’s budget and revenue. For example, a handwritten note costs nothing. A recorded video costs nothing.

At Second Nature, the goal is to be Relentlessly Resourceful. The CEO and VPs share hotel rooms when they travel, for example. The money they save on extra rooms can be invested into their customers. This is a decision they’re willing to make because it matches their values.

Radical generosity for customers is a value. They are not asking what’s the least they can do for their customer so they get the highest return. Instead, they’re asking what’s the most they can do for their customer to build this relationship.

That’s a key thought that we started with. The least we can do versus the most we can do. Many of the best relationship-building things do not cost money, or they cost very little money.

How are you making people feel? What can you do to show your care, passion, interest, and curiosity?

Continue to make an impact and stay close to your customer. Think about how to align your resources so you can bring the most of that to your customers. Do the best work of your life and build the best relationships.

That’s what Andrew and the team want to accomplish at Second Nature, and you can do it too, with a small budget or a large budget.

There’s a lot of good information here. If you have any questions about this show, please contact us at Fourandhalf. And, if you haven’t checked out Andrew’s podcast yet, you should. Look for Triple Win on your podcast provider of choice.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. The post Lifetime Value vs. Transactional Value appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Google continuously updates its algorithm in order to provide the most relevant and useful information to users. By constantly making changes, Google is able to ensure that search engine results pages (SERPs) are up-to-date with content that is both accurate and helpful. With these updates, Google can also limit the amount of spam and low-quality content that can appear on SERPs.

By understanding the changes and what they mean for owner marketing, property managers can stay ahead of their competition and maximize their visibility on Google’s search engine results pages (SERPs). In this article, we will discuss how these recent updates impact property management marketing in 2023 and beyond.

Google’s Role in Property Management MarketingAlthough property management marketing has to do with a lot more than your website’s search ranking on Google, it’s undeniable that it has a significant impact.

According to Statista’s data, as of December 2022, Google held an 84.08% share of the global search market, while Bing accounted for 9% and Yahoo had a 2.55% share. In plain English, this means that the majority of searches done online are done through Google.

Property management websites that show up for relevant search terms on Google can have increased web traffic. This is important for property management companies looking to become more visible to prospects online. The higher you show up when rental property owners search for solutions, the more likely they are to click and learn more about you.

But note that not all keywords are created equal. The more relevant a search term is, the more competition you have to face in order to earn the top spot.

According to Google’s How Search Works site, its algorithms are designed and put through a rigorous evaluation process to ensure that they reward content that displays expertise, experience, authoritativeness, and trustworthiness – otherwise known as E-E-A-T. Such content should be original and of excellent quality in order to rank well in search results.

Most Recent Algorithm Updates as of February 2023Google has recently released two major algorithm updates that property managers and their marketing partners need to be aware of: the Link Spam and Helpful Content Updates. These updates have far-reaching implications for the way residential property management companies market themselves to homeowners online.

Google Search Link Spam Update ExplainedGoogle’s “Link Spam Update” was also released in December 2022 and finished rolling out in January 2023. This update focused on penalizing sites that use link-building tactics that are not considered helpful to users. For residential property management companies, this means that any link-building tactics they use should be aimed at providing useful information and resources to their target audience.

We all get those unsolicited emails about link-building services which claim to be the ticket to the top search rankings on Google. Unfortunately, Google is now cracking down on these services. Businesses that use them could find themselves penalized in the SERPs.

Property managers should stay well away from link-building tactics that are not considered “natural” or helpful to their audience and focus instead on creating quality content to attract organic links from other web pages.

Google’s Helpful Content Update ExplainedSimilar to the “Link Spam Update,” Google’s “Helpful Content Update” was released in December 2022 and finished rolling out in January 2023. This update focused mainly on rewarding sites that provide helpful, accurate content to users while penalizing those with irrelevant or low-quality content. This means that residential property management companies that produce helpful content tailored to their audiences will now have a better chance of ranking higher on SERPs.

But how does Google define what is helpful content and what is not? Well, it gauges the intent of each piece of content to see if it’s created to help people, or simply to manipulate search engines.

People-First vs. Search Engine-First ContentThe top search results on Google are carefully curated to showcase helpful and reliable information that is created with the intention to benefit people, not to increase rankings in the search engine. Automated ranking systems are employed to ensure consistency in the quality of the content displayed.

Gone are the days when you can just insert keywords on your blog or webpage and see results. Today, residential property management companies need to create content that is of excellent quality and provides real value. When crafting such content, property managers should focus on providing helpful information first, followed by optimizing for search engines.

Google even has a whole page dedicated to understanding how to create helpful, reliable, people-first content.

AI-Generated Content on Property Management WebsitesAfter reading the previous section, you might be wondering whether this means that Google prefers only content manually written by humans, for other humans.

The good news is, that’s not the case. But it’s not a simple “yes or no” question either.

In the Google Search Central Blog post dated February 8, 2023, they said that “Appropriate use of AI or automation is not against our guidelines. This means that it is not used to generate content primarily to manipulate search rankings, which is against our spam policies.”

The blog goes on to say that “Our focus on the quality of content, rather than how content is produced, is a useful guide that has helped us deliver reliable, high-quality results to users for years.”

What this means is that, although they won’t penalize the use of AI when creating content, residential property management companies should still make sure that the content created is helpful, accurate, and reliable above all else.

Property managers who want to use AI tools to write their blogs or website copy need to be aware of their limitations and ensure that they don’t rely solely on this technology when crafting content for residents and homeowners.

What Does This Mean for Property Management Marketing?Marketing a property management company online is now much more difficult than it has ever been. Although there are plenty of tools out there that can help, it takes a lot of work and creative thinking to stand out from the competition.

SEO vs. SEMIt’s important to understand the difference between SEO (Search Engine Optimization) and SEM (Search Engine Marketing) in order for a business to use them effectively.

SEO is a long-term marketing strategy, which means it can take a long time to see the fruits of your labor. This is because it involves optimizing content for search engine algorithms, in order to higher on the SERPs. The Google Algorithm updates discussed in this blog impact SEO rather than SEM.

SEM, on the other hand, is a short-term marketing strategy that focuses on leveraging paid ad campaigns to drive more traffic and conversions. While this method can produce quick results, residential property management companies need to be aware of the high cost that comes with this channel.

You can find a more in-depth explanation in our previous blog post that compared SEO and SEM.

In conclusion, property managers must be very strategic when it comes to their online marketing. This means doing research on what people in your area are looking for in a property manager, creating content that appeals to them, and building relationships with potential clients through networking and education.

Fourandhalf Marketing Agency has helped hundreds of property management companies gain more visibility online over the last decade. Contact us if you need any help getting more owner leads from your marketing. Whether you need help with a website, SEO, online reputation, content marketing, pay-per-click ads, or just establishing a marketing plan, our team is here for you. Fill out the form below to start a conversation with us.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. The post Google Algorithm Updates: How They Impact Property Management Marketing in 2023 and Beyond appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Andrea Hardaway from First Property Management is blazing a path of success as she has published her book, Property Management Freedom, and recently gave an inspiring talk on the topic of market consolidation at PM Grow Summit 2022.

Despite hefty acquisition offers by larger management companies coming in their direction, Andrea and company remain determined to move forward with independent operations – something we wanted to explore more about!

Let’s take a deeper look at what makes them so successful.

Property Management Offers versus Property Management ConversationsAndrea and her two partners started First Property Management seven years ago in a Panera Bread. With no prior experience in property management, but a passionate drive to succeed, they steadily built up their portfolio – now managing nearly 1,000 doors! Team members are loyal and talented and they have an ever-growing list of clients and residents who trust them to keep things running smoothly.

With such a successful business, the leadership at First Property Management could probably make a lot of money by accepting one of the many offers they have to sell the business. So, why do they keep turning them down?

Andrea is clear that she’s not turning down conversations. It’s smart to have conversations because there’s always something to learn.

But, selling her property management company is not something she and her partners are ready to do.

There’s a lot that’s happened in the last few years, and a lot that’s still to come.

Here’s why Andrea and her partners aren’t ready to sell:

• They have a great business environment which allows them to be free from the day-to-day operations of the business.
• The portfolio at First Property Management is growing. They’re managing almost a thousand doors and preparing to expand from Chattanooga throughout Tennessee and into Alabama and Georgia.
• A lot of business operations are being streamlined and automated.

There’s more going on that can’t be shared yet. All of those things are increasing the value of their company. They’re also increasing and the value of what they bring to the property management industry.

Andrea and her partners want to see where those things go.

Beyond Customer Retention to Brand AmbassadorsPart of a company’s success is retaining clients and employees. It’s one thing to retain someone by keeping them from leaving. It’s another thing entirely to make them a brand ambassador.

That means something to Andrea’s company.

First Property Management has achieved incredible success without relying on traditional marketing and advertising. Instead, their growth relies entirely on organic relationships.

When your growth and your success is based on relationships, you need a lot of trust, and that trust has to be protected. Their clients refer other clients to them. Several owners on the west coast talk to their colleagues and when those colleagues are ready to invest in Andrea’s market, a referral is made. By building strong bonds with both customers and employees, FPM has managed seven years worth of sustained development – proving how important it is to invest energy into creating meaningful connections when striving for success!

Here’s how Andrea and her team turn owners, residents, and employees into brand ambassadors.

Keeping Property Owners and Investor Clients HappyThe client base is grown from relationships.

Andrea and her partners Brian and Randy also invest in properties themselves. This means they’re not a fee-heavy property management company. They have fees, of course. How else would they stay in business? However, there are certain things they’ll never charge their clients for.

One example is maintenance. A lot of property management companies use maintenance as a profit center. Andrea says she understands this; it’s a great way to make money and sustain a business.

At First Property Management, however, there is never an upcharge for maintenance. The vendor’s invoice is passed on directly to the owners so they can see that they’re paying exactly what the vendor charged.

Their clients trust them and value their commitment to transparency. They’ve built a reputation for effectively managing properties and helping owners and investors build wealth and grow toward greater financial success. As a result, not only do clients stick with them, they’ll even refer others to First Property Management.

Residents, not TenantsAt First Property Management, they understand that a home is more than just four walls and a roof – it’s an essential part of living. That’s why Andrea and the rest refer to their tenants not as renters but rather residents.

This messaging is important in communicating with residents. When a property manager sees a house as a home, there’s a different sort of relationship in place. When property managers understand that a home is just one part of a broader life, the relationship deepens. Property managers at First Property Management believe in moving work orders along and meeting the needs of residents because a home is a foundational part of a person’s life.

When FPM first launched their resident benefit package, there were some mixed reactions from tenants. However, when it was presented as a way to improve their day-to-day living in their home, the majority of them embraced it.

Keeping a Property Management Team Happy and IntactAndrea wants her employees to be so happy about arriving to work that they skip to the front door, but she understands the work isn’t always easy.

Property management is a difficult industry to be in. It’s not super complicated, necessarily, but there’s so much involved in it, and that action never stops. Andrea wants to create an atmosphere where team members are joyful.

To this end, Andrea works closely with the Director of Operations, who oversees the day-to-day business. She is realistic with her expectations. She tells her team when she’s unhappy about something, but she also tells them when she’s excited about something.

There are a few things Andrea believes help her retain her best team members.

First, she offers one on one meetings with each employee. This is their time to talk about whatever they want – things they are happy with, things that they think could be done better, whatever. Any conversation topic stays between her and them unless it’s critical and needs to be shared. In that case, Andrea checks with the employee and makes sure that they are comfortable.

Next, she conducts an internal survey every six months. This allows her to get a pulse about whether people support and rally behind the business or whether they’re detracting from it. Specific questions are asked about the company itself and its performance. She wants her team to know that she’s listening to concerns.

Finally, she has team-building days that take place in the field. Not every person who works in property management gets out there. They work in offices or from homes and they don’t always see the properties that are being managed. She does team building events where the office closes and everyone participates in some group activity. Recently, it was a three-hour cooking class one morning. After class and lunch, they went on a van tour of the homes that they manage. They went inside to tour the homes that are vacant or being turned over.

The point of this? So her employees could see these places not just as an address but as a physical space that someone will call home.

If you’re not already doing something like this, you might want to consider it.

Investing in the CommunityPart of Andrea’s strategic plan is community engagement, but it’s about more than growing her business. Andrea and her partners truly care about the impact that they can make on their community.

Here are some of the things Andrea is working on individually and with her business.

Real Estate Development and Affordable Housing NonprofitsAndrea has joined nonprofit boards related to real estate and development and affordable housing. Chattanooga Neighborhood Enterprise and the Community Foundation of Chattanooga are two such organizations. She’s also on the board of the Chattanooga Design Studio, which focuses on urban design and development.

Eviction Protection InitiativeAndrea is on an advisory committee for Eviction Protection Initiative (EPI). This is a surprise to a lot of people since property managers do most of the evicting. But, she takes no joy in evicting people. Inspired by Dan Heath’s book Upstream, she believes that it is better to get to the root of problems early rather than just solve symptoms one-by-one. She understands there are correlations between factors like late payments and utility shut-offs which can lead to eviction down the road; so with EPI, they’re looking upstream – finding indicators before negative outcomes occur and guiding those affected onto more secure paths towards stability.

Collaborating with Affordable Housing DevelopersBy partnering with private developers, First Property Management is working to address a difficult problem – making affordable housing available in Chattanooga. But it doesn’t stop there – they’re also encouraging their own residents to consider homeownership by providing a robust set of benefits and assistance.

The company is passionate about this, and Andrea wants to see owners and brokers encouraging meaningful action in their local communities too. Why just make real estate deals? Why not make deals that make a difference?

Not only does community involvement benefit those being served, but it also impacts retention. The more they are in the community, the more exposure their company gets.

This community investment shows up in clients and team members, too.

During COVID, many people began having financial issues. They were losing jobs and not getting paid. There was an eviction moratorium and people were getting behind in rent. One of Andrea’s clients paid the rent for some of his residents. He took money out of his pocket and put it towards the rent he would have collected so the property managers and his own company got paid, even if it meant a loss in profit for himself.

He did that because of the way he views people. We are all connected in some way, and that matters to Andrea. These are the clients she and her partners want to attract. If they’re not that type of client now, she hopes they grow into that.

There is an opportunity to do very well financially while doing a whole lot of good in the community. They don’t have to be separate. You can be motivated by money and committed to the community.

Andrea also suspects that one of her employees paid someone’s rent when they fell behind. She’s not supposed to know that (and would never require an employee to do it), but she thinks it’s a beautiful display of care and optimism.

But do not mistake that optimism for naiveté. This is simply the culture Andrea feels responsible for creating.

How to be Profitable in Residential Property ManagementAre you wondering how Andrea remains profitable with all of this in place?

She affirms that profitability is important. It allows her company to stay in business and create new opportunities.

Profitability starts with company structure. She and her partners are living the lives that business owners should live. They don’t have to put in 40 hours at the office. They can leave and come back knowing that everything is running smoothly and they won’t miss a beat.

They have a great team and they have KPIs to manage the business. Along with profitability, they look at client retention each month and make adjustments as needed.

There’s a financial reserve in place, too. The company has a capital reserve in place in case the business gets in trouble. Her team gets paid. The partners get paid. Taxes are paid. There’s an operating margin and a budget that they work to. She recommends reading Profit First by Mike Michalowicz, which gave them the framework for their cash management solutions.

First Property Management is always working towards remaining profitable. You don’t have to choose between making money and doing good. But, as a property management business owner, you also need to recognize when it is time to step back and take of yourself so that you don’t burn out. If you and your team are not burned out, then you can be better advocates for your business, your clients, and your community as a whole.

Andrea literally wrote the book on this – Property Management Freedom: Grow Your Property Management Company without Burning Yourself Out.

If you have any questions about this podcast, contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY NameThis field is for validation purposes and should be left unchanged. The post The Power of Purpose-Driven Property Management appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We’re back on The Property Management Show with Kathleen Richards. In Part I, she shared her story about buying and selling a property management business, and how she introduced herself to her new employees and clients.

We ended the chat talking about toxic owners and how to deal with them while acquiring a business.

Property Management and Customer ServiceGiving bad owners permission to leave is helpful when you acquire a new business. And, if you don’t call people out on their bad behavior, you’re telling them you are okay with it.

Don’t do that.

Make sure you can distinguish the bad owners from those who simply need a new strategy.

In her first six months of taking over the business, Kathleen had to fire a couple of owners that were not working out. Overall, she was committed to being proactive with people and letting them know that she was there to help.

One owner had extremely high expectations. Kathleen is fine with high expectations, but what she didn’t like was his habit of bringing up every mistake that had ever been made with his properties. These are problems that pre-dated Kathleen, but he hammered away at them anyway.

Kathleen told him that she represented a fresh start. She suggested that they tour all of his properties together. They did that, and then they sat down over lunch and discussed what he wanted to do with each property. It was a meeting of the minds.

It delivered a great outcome. Everything was reviewed together and they agreed on a course of action. Moving forward, he agreed to let Kathleen do her work without bringing up past mistakes where everything went wrong.

It was about discussing what could be done together, and the relationship improved dramatically from there. This owner became a favorite client and a dear friend.

Setting expectations is an important part of the acquisition process. Tell the owners who you are and what they’re getting with you. They need to know how you operate.

Communicating with Your Employees While Acquiring a Property Management BusinessBe positive when meeting with employees. Invest in the time it will take to sit down and talk to them. You don’t want to give superficial assurances that everything will be okay. This is new for you, and you’re excited. But, the employees you’re meeting with are likely scared.

Connect with employees by asking a lot of questions.

Listen to what they’re saying.

Get them to understand that you need each other.

Seek their advice.

Ask for ideas.

Find out what their career plans are. There may be room for pay increases. Discuss a performance plan. Show them that you’re looking to work with people who are excited to be contributing to the company. When you come into a new team from a place of compassion, you’ll earn their trust.

Employees leaving is not usually the problem.

The problem is that they’re stuck in how they’ve always done things. “That’s not how we do it” is commonly heard, and there’s often resistance to some of the change that’s coming.

Getting employee buy-in will matter. Performance growth plans will matter.

Find out how to work with your employees. With remote working, you might find out that someone is starting to care for a parent. Why not see if they can work from home for some hours? If you’re willing to work with your people, you’ll see they are bringing a lot to the table.

What can you bring to that table?

Have a meeting of the minds.

When you’re talking to your employees as a new owner, ask more. Tell less.

You also want to make space for emotions. It’s okay to be sad when the company is sold. Be compassionate and acknowledge their grief.

Retaining and Restructuring TenantsHow can you retain good tenants and set boundaries with problem tenants?

Problematic tenants need to be dealt with head-on. Enforce your rental agreement and remind your tenants about what the rental agreement says. You cannot just evict nasty tenants anymore in California. You need just cause.

People skills are necessary when dealing with tenants. Here’s an example Kathleen provided:

A tenant was late with rent every month. She would come in and pay $200 and then $400 the next week. Obviously, the prior owner had allowed this. Kathleen met with her at her home and realized she was living in a three-bedroom home all by herself. It turned out this was the home in which the tenant raised her children. Kathleen suggested finding her a one-bedroom with lower rent. It was less of a financial burden.

She could have said no to partial payments, and she would have been within her rights. Instead, she began asking questions and finding out a better way.

Owners, tenants, and vendors typically want to do the right thing. But maybe the owners you’re working with have had multiple property management companies, and they’re scarred by previous experiences. When you let people know how you can have a successful relationship, they’ll rise to the occasion and be willing to participate.

Another example Kathleen shared is from 2009 when she had a tenant who was downsized from a job in Silicon Valley. Instead of evicting him because he could not pay rent, they put together a plan. He moved out as soon as it was possible, and a new tenant moved in.

There is always a solution as long as you can have a conversation and problem-solve.

Talking and communicating is where it starts.

When you communicate with residents, they feel like you’re there to help them. Remember that you hold a lot of power over your tenants. You are connected to the roof that’s over their head. Try to come to them from a perspective of wanting to help.

Solve problems together, Kathleen advises. This is what has worked for her.

Another example:

A tenant was a nurse working nights and sleeping during the day. He kept calling because other tenants were noisy and he could hear the kids playing all day while he was trying to sleep. They weren’t doing anything that isn’t normal, so Kathleen had to suggest that living in a fourplex might not be the best idea while working nights. She helped him find a unit with a bit more quiet.

Kathleen is simple and straightforward. Honesty and integrity are her two main business values, and she tells all prospective owners that. If they want to get $6,000 a month in rent from a studio apartment, she’s not going to lead them to believe that she can deliver that.

Building up trust is important as a new business owner. You have to elevate your communication.

Scaling the Service Model for Larger Property Management CompaniesThe examples Kathleen has provided are perfect for a small business when it’s possible to reach out to individuals. What if you’re buying a giant business and you can’t really just pick up the phone and have those conversations directly?

If you’re buying 1,000 doors or 2,000 doors, that’s not your role. You shouldn’t be calling every owner.

Understand your position in the company. In a large business, you have departments and teams and an organizational chart (pleasehave an organizational chart).

Basically, you have a more defined structure to your business. The owner communication will be up to your property managers, who you need to trust to speak to their owners the same way you would.

You’ll need to empower your team.

Kathleen doesn’t hire anyone without knowing how they handle conflict and challenges.

In a larger company, make your property managers the experts. Defer to them when it comes to doing what they do best. This empowers them when they need to handle things.

Put together a monthly training session with your staff about expectations and customer service once you’ve been in an ownership position for a while. Find out how they do things. Train them to become leaders.

Very successful companies like Coldwell Banker and Starbucks and In-and-Out Burger all have specific training programs in place for employees. Once you grow from a small business, you have to scale the training and the mentoring. Universities can exist within companies.

Don’t show up as a know-it-all when you’re a new owner. Get down on the ground floor and always be in a place where you’re assessing how you can improve. Make your staff your leaders.

What about the future of property management acquisitions?

Many venture capital companies are buying everything up. But, there’s still a place for smaller companies. In the marketplace, there are always going to be owners who want to work with smaller property management companies. They appreciate the unique service.

Your business model is not going to go away.

If you have any questions about how to acquire a property management company with ease, get in touch with us at Fourandhalf and we’ll talk further about this podcast and how we can support you.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. The post Retention in the Face of Acquisition – Part 2 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you heard about the new shiny piece of technology taking the world by storm?

It’s called ChatGPT.

In case you haven’t heard the buzz yet, here’s a quick overview:

What is ChatGPT?ChatGPT is Artificial Intelligence (AI)-powered chatbot that’s been trained to respond like a human would. It can take a few words or sentences that you type in and use them to write a whole paragraph or even a whole story.

But that’s just scratching the surface.

You can “talk” to it as if you were talking to a person via chat, and the possibilities are endless.

AND it’s free – at least for now.

Since its launch on November 30, 2022, it has been used by over a million people to search for information and write anything from computer code to poetry or music. While it’s controversial, students have been using it to write essays and papers for school.

You might be thinking the same thing we are: can this AI write property management content?

How Does ChatGPT Work?If you’re asking whether it can WRITE a property management blog, the answer is YES.

ChatGPT can write on almost any topic.

How?

Using a technology called Natural Language Processing (NLP) and machine learning, ChatGPT can generate blog text pretty easily. It has read much of the internet up until 2021 as part of its training dataset, so it uses all that information to scrape together something that satisfies whatever prompt you give it.

Keep in mind that this tool has its limitations.

OpenAI, the developer of this tool, is upfront about what doesn’t work:

• Sometimes, the chatbot can provide information that might sound plausible but is simply inaccurate.
• It also sometimes spews out information that is biased or nonsensical.

Think of it this way – when you search for the term “property management” on Google, it generates about 2.1 billion results in half a second (2,130,000,000 results within 0.60 seconds as of Jan. 9). That’s over 2.1 billion pieces of content related to the term “property management.” Of the 2.1 billion pieces of content, would all of those contain 100% accurate and unbiased information?

Probably not.

So, if ChatGPT is referencing an imperfect dataset, it comes as no surprise that it could sometimes come up with information that is inaccurate or biased.

Here’s another thing to consider: If it can write blogs, will the blogs be unique or is there a possibility of content duplication?

To answer that question, I decided to ask the chatbot itself:Will AI-Generated Content Help You Rank Higher on Google?Now you might be thinking, what about using ChatGPT to write content not for humans but plainly for SEO? Isn’t ranking all about the keywords anyway?

That’s a really good question.

Two factors affect output:

1. The prompt or the input text that you provide is fully in your control.
2. The dataset this technology was trained on is not in your control. We have no visibility on where the data is coming from or how the AI is trained.

There is no capability for original thought, and it’s possible to end up with duplicate content when using it to write blogs.

And as Google has said in the past, duplicate content is a no-no.

The text generated by ChatGPT could pass off as human, but it doesn’t necessarily write copy that leaps off the page or stands out. It will never be personalized to your specific property management company and its strengths and services.

There is more to SEO than the actual blog content you post online or the keywords you put in those blogs. In fact, Fourandhalf has covered this topic in our past blog posts. Feel free to check them out.

AI-generated content can HELP you?

Yes.

But, can you simply rely on tools like this to succeed?

No.

In fact, Google’s recent algorithm updates address the topic of AI-generated content in relation to search rankings. We’ll be releasing more on this subject soon, so stay tuned for that.

Will ChatGPT Replace Content Marketers?It’s important to mention that as good as the responses sound, it is still a chatbot.

You still need to figure out the best prompts to give, you still need to spend time checking, rewriting, and then actually posting and sharing that piece of content online.

As a content marketer, I am not opposed to the development of AI technology such as ChatGPT. In fact, I used it to help me create this piece of content, as you can see.

I found though that although it’s a useful tool to help me with ideas, I couldn’t quite get the quality piece I wanted straight out of the chatbot. I still had to spend a lot of time rewriting, fact-checking, and adding to what it gave me.

At the end of the day, it’s not a magic bullet.

Just for fun, I wanted to see if ChatGPT thought it would replace marketers like our team here at Fourandhalf. Here’s what it said:

This response came from the chatbot itself.

And if you’re in need of the creative and strategic thinking from an experienced marketing team, look no further than Fourandhalf Marketing Agency.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. The post Does ChatGPT Really Work for Generating Property Management Marketing Content? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The prospect of acquiring a property management business is very exciting.

The hard part comes when the deal is done. How can you handle the baggage that comes with a book of business? How do you protect yourself from the potential loss of owners and employees?

Our guest on today’s podcast has personal experience with this. We are welcoming Kathleen Richards, also known as The Property Management Coach. She’s also the brain behind PM Made Easy.

There’s so much to talk about with Kathleen that this is a two-part podcast. Let’s jump into the first discussion.

Acquiring a Property Management Company: How Kathleen Did ItIf you’re not aware, before she became The Property Management Coach, Kathleen was a successful property management business owner. She did not start from scratch. In fact, she acquired Portola Property Management before it was even called that. The company she bought was an established business with a decent door count.

Owners did not know that Kathleen had acquired the company right away; she was introduced as a new property manager. It was rolled out as the former owner being semi-retired and pursuing other things.

Kathleen took a few immediate steps:

• She sent out an email introducing herself. She explained she was excited to be part of the team and shared her background and experience.
• She invited any owners to call her directly with questions.
• She began calling owners and personally introducing herself to them.

This portfolio had a lot of clients who had been with the company for 30 years. They were older and the internet in 2005 was not what it is today. These personal phone calls were necessary (We didn’t even have smartphones then).

At the beginning of her ownership, Kathleen did not make any changes to the way the business was run. Continuity was important.

Acquisitions and EmployeesThe person Kathleen bought the business from did not tell his employees there would be a new owner. The secretive nature of the transition made things difficult. She was introduced to the staff as the new owner, and there was some stress.

Kathleen reassured them quickly. In the first week, she let the part-time leasing agent go because that employee had been lying to owners.

The company was structured as a real estate office with a property management division. There were four property managers, each with their own portfolio of business. Most of them were Realtors. One person was a full-time property manager. There was also a full-time assistant who was very valuable to Kathleen as she took over. They discussed her career goals, found money for a pay increase, and Kathleen supported this employee in getting her license and moving forward with the work she wanted to do within the company. This employee knew the owners. She knew how things worked. It was important to keep her on board.

Before buying the business, due diligence was essential. An outside CPA was brought in to look at the books. Kathleen looked at the properties on paper and drove by the homes.

It’s a different situation when you only have a couple of employees. But, even if there are 20 employees, you have to approach the business you are buying with excitement. Take time to talk to each individual employee. Reassure them as a group that you’re going to look to them because they’re the experts.

Cultural fit is critical. If you’re buying the business as your starting point, you have more space to keep things as they are. If you’re buying the business and incorporating that business into your own existing business, you have to make sure there’s a culture fit. If your existing business works in a way that’s 180 degrees different from the new business, you can expect some friction.

When Kathleen ultimately sold her company, she was told the new owner didn’t need a bookkeeper. It was painful for Kathleen to let her own bookkeeper go, but she wanted to be the one to do it so she could offer severance and support.

Employees will want to know where they stand.

Before You Acquire a Property Management Company: What to Look AtKathleen consults with property managers preparing to buy a business. Here’s what she tells them to find out first:

• Look for pending lawsuits.
• Look for recent lawsuits.
• Review all the books. If you’re not an accountant, pay someone to audit them. You don’t want to bring on a business that’s going to cause financial problems for you as a new owner.
• Check the actual files. Are these quality accounts?

Kathleen worked for a property management company for a little while to ensure she liked the business, and she was surprised when the broker bought a whole book of business that turned out to be junk. They were crappy properties with owners who didn’t care. The new owner had to close out every door.

This portfolio was bought from a friend. Deals are often done between property managers, but remember – this is still a business. If you’re buying from a friend or colleague, do your due diligence anyway.

If the company runs well and produces cash and the employees are running it so that you don’t have to be hands-on, you’re in a good position. Compare this to a company that needs a lot. Maybe it’s a sole proprietor who doesn’t want to upgrade their software. Kathleen coached a client who inherited 200 doors when her father passed away. Everything was on paper. It was an old-school ledger and not even an Excel document had been used.

Know what you’re getting.

• Find out if the owner is willing to stay on in some capacity. Is there a clawback clause? If you buy a property management business with 100 doors but by the end of the year, owners leave and you’re left with a business that has 90 or 75 doors, you’ll want to get some of that money back.
• Look at the systems a company has in place. What kind of software do they use? This is going to matter if you’re integrating theirs into yours. It gets tricky if you’re meshing two businesses together.

Minimize Losing Owners During an AcquisitionReach out to owners right away.

You should not be a surprise to them.

You can be proactive. Email the owner-clients and introduce yourself as the new business owner. Or, don’t introduce yourself as the owner. Call yourself the vice president or the property manager. It’s up to you.

Don’t make dramatic changes to the business because it scares people.

When you start doing things that will help – you minimize owner churn.

Improve communication. Owners will like that.

Share ideas for increasing revenue. Owners will love that.

When owners see early improvement with you, they’ll be less likely to leave.

Here’s something that may feel counter-intuitive: invite some of your owners to leave.

Kathleen knew early on that there were simply some owners that she wasn’t going to get along with. They were rude, verbally abusive, or simply difficult. So, she went straight to them and told them that she was the new property manager, and it was okay if they decided to take their property back and either manage it themselves or look for a new property management partner.

She simply asked for 60 days of notice so she could provide a smooth closeout.

Kathleen knew that these problem owners would only find some simple or stupid reason to blow up at her and fire her. She wanted to avoid that, so she gave them the opportunity to leave. She said it was okay. Many of them took her up on that and were relieved they could leave without conflict.

Does it mean losing business? Yes. But, you’re exiting the relationship on a positive note rather than a contentious one.

You won’t say this to everyone. Only the owners that you know won’t work out. It’s okay to close them out.

That’s what we have for Part I of this podcast with Kathleen Richards. Contact us with any questions. And make sure you join us for Part II.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. The post Retention in the Face of Acquisition – Part 1 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Retaining Employees and Clients in a Way that’s Purposeful and Profitable:A Chat with Jan Leasure from Monterey Bay Property ManagementWouldn’t it be nice if you had a team who was in it for the long haul?

How do you define the long haul in property management? Is it 10 years or maybe 20 years?

What about 30 years? Is it possible?

It is. We’re talking to Jan Leasure, the owner of Monterey Bay Property Management. Her company has a great track record for employee retention, and they also do well with client retention and profitability.

Employee Retention – Why Do They Refuse to Leave?Jan has employees who have been with her for decades. Thirty years, even.

What’s the secret?

There are a couple of things that impact this type of retention rate:

• Choosing the right person the first time. When you hire right at the beginning of your work relationship, you can count on longevity. This does not necessarily happen on sites like Indeed and ZipRecruiter. You’ll find great people there, but Jan has noticed that she has better luck hiring people that she knows in other ways. She looks for qualities and personality traits that she believes will match her company culture.

Jan has turned a golf pro into a property manager. She’s also hired a former nail salon owner, a former restaurateur, and a former physical therapist. This doesn’t always make sense, but their professional backgrounds aren’t as important as their fit with the company. It’s been highly successful. Choosing the right person at the beginning is a good way to start.

• Another tip to success is creating the right job for the right person. Over the years, Jan has created positions whether there’s an opening or not. It’s expensive to do that, but it means that when growth came quickly, there was a deep pool of talent to choose from in the company already.

Jan has never had a job opening at Monterey Bay Property Management.

She invests in her team before she has the work, creating opportunities and trusting that the work will show up eventually.

Identifying the Right Employee and PositionFor Jan, there is always wisdom in starting new people at the front desk.

Everyone coming into the company starts there. It works well because they are on the firing line from the very beginning. They’re taught to answer the phone, find out what the person needs, and then ask that caller to hold while the right answer is sought. That shows a new employee how the wheels of the company will turn.

People learn by doing. You can give them a procedure manual or a checklist, but just by listening to the questions and finding the answers, a lot is learned. That’s training.

When Jan meets someone out in the world, what is it about that person that makes her want to hire them?

She hired the woman she saw in the restaurant time and time again because of the person’s sparkling personality. She was always on an even keel no matter what was happening. The temperament was always the same. That’s the attitude that’s so desperately needed in property management. We have to be unflappable. Customer service skills are much the same.

How do you approach someone not even looking to work for a property management company?

One day when Jan was being waited on by this woman, she engaged her in a conversation about how long she had worked there. Jan asked if she had ever thought about doing anything else. She pitched property management and they kept talking about it.

The interview process is different from any other typical job interview. Jan wants to know how they will fit into the company culture. They discuss problem-solving skills and talk about challenges. Once that step is complete, you hire them and you get them to a place where they feel like they can see themselves working there for 20 or 30 years.

Retaining the Employees You’ve HiredOnce you have the right employees in place, you need to lead them to the decision that they want to stay with you for the long term. This is done by understanding what each individual needs.

Before she became a real estate broker and a property manager, Jan was a teacher. One of the skills teachers have is the ability to evaluate each student based on their individual skills and abilities. From there, they can meet their individual needs.

She transferred those skills to her work in property management, and it helps her retain employees.

After someone has been in place for a while, they talk about what they like and what they don’t like. Adjustments are made.

Jan can clearly remember a specific situation where she thought an employee would make a great reservation agent for her vacation rental operation. But, she had no interest or intention to do that. The employee is still with the company, however, as a bookkeeper.

Some people are fine without a periodic check-in and other employees need that ongoing conversation. Instead of having one process for everyone, Jan nurtures and coaches her team individually, depending on their unique needs.

Compensation and Employee RetentionWhen you’re willing to restructure things to meet the needs of your employees, you’re more likely to retain them. People have children while here. They may need to work from home. They may want to bring the baby into the office.

The ProfitCoach team believed Jan over-compensated her employees when it came to salary and money. She agrees that her salaries are probably some of the highest in the country for what they do. She doesn’t mind. She sees it as trading longevity for compensation. It’s a math problem, and she’s willing to work out the math.

Monterey Bay Property Management is very profitable. The balancing act is necessary; if she’s spending on employees, she cannot spend in other places.

What surprised Jan was that when she asked employees what they valued most, she learned that flexibility is more important than money. They want to be able to work from home or from the office. They want to choose their own hours.

Jan rarely says no to any requests for time off. In fact, she wishes her employees would take more time off.

This is good business. When you give people a little bit, they give back a lot. It builds tremendous loyalty.

Employee retention translates into owner retention. The company does not typically leave because they’re dissatisfied or looking for a better deal. When they leave, it’s because they’re selling the property or moving into it themselves.

Outrageous Customer ServiceT. Scott Gross wrote a series of books years ago surrounding the idea of providing positively outrageous service. The idea is that you go the extra mile, do the unexpected, and provide great service as a result.

Here’s an example from Jan:

One year, on Thanksgiving, a tenant’s oven was not working. The tenant was trying to prepare Thanksgiving dinner. Jan was able to send a repair man out to look at the oven, but the part could not be ordered until the following Monday.

That wasn’t going to work for the tenant.

Rather than apologize and do nothing more, Jan had a solution.

She took the tenant’s turkey to her house and cooked the bird for that tenant.

People don’t forget that. It’s an example of positively outrageous customer service, and that story is still being told today by the tenant and anyone else who was involved.

Answering the phone doesn’t seem like it should be outrageous – but in this day and age, it is.

Find your own way of providing positively outrageous customer service. You’ll notice a change in your retention.

Jan also writes a newsletter every month for her owners. It goes out with their statement. The newsletter isn’t fancy; it’s not in a prescribed template. It’s simply information on what’s going on in the market and what she expects to happen. She’s an investor too, so it’s written from that standpoint.

Employees and ProfitabilityHere’s an example of outrageous customer service for her employees: Jan has helped some of her employees establish their own property management businesses.

You might think that in their small market, this cannibalizes her own profit.

Yes, and no.

She did cannibalize her own portfolio to help her employees get started. She leased them some of her accounts, which meant a small fee was still coming in on those properties.

Monterey Bay is a small area, but there’s enough business out there for everyone. Jan wants to help train the next generation of property management leaders. She’s launching them into the market and into their own businesses.

It’s another strategy that supports retention. Employees see Jan supporting their teammates. They know she’ll be there for them when they need help. Employee loyalty is something every business should aspire to.

It’s a question of how fulfilled you want to be.

Jan says she’s fulfilled by this way of doing business. Some people grow for growth’s sake. They want to see how big their business can get. That doesn’t have to be you. Jan wants to grow so she can help others do great things.

There’s not just one way to do things.

Jan acknowledges that her way is not for everyone. She has enough and she’s living the quality of life she wants while facilitating success for others.

If you’d like to talk about managing employee and owner retention or if you have thoughts on today’s podcast, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY CommentsThis field is for validation purposes and should be left unchanged. The post Retaining Employees and Clients in a Way that’s Purposeful and Profitable appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Managing Properties in One of the Country’s Toughest PlacesWhat does it take to get an amazing reputation, not just on Google, but also on Yelp? Our guests on the podcast today are from R.E.M. Residential. It’s one of the highest-rated residential property management companies in all of New York. They have not had a negative review, not even on Yelp, since 2017.

How can they manage in one of the toughest markets in the world while keeping people happy without people-pleasing?

We’re about to find out.

Introducing R.E.M. ResidentialR.E.M. was started in 2000 by Rick Elezi. Rick came from an extensive real estate background. He started out as a porter, and he also worked as a doorman and handyman. Shpresa Elezi met him because her dad was a resident manager next door to the buildings where Rick met. They began doing property management in 1995, and five years later, R.E.M. was born.

Rashaad Middleton is the company’s director of management. He started with R.E.M. about 14 years ago as a broker. Ten years ago, he became the director of management. He’s been a landlord for two years, so he understands both sides of the rental relationship. He’s proud of the retention rate of the company, both with clients and employees. Fourteen years in, he’s happy.

Lara Lapysh has been with R.E.M. for seven years. She started as a broker and has been growing the condo department. She specializes in condos and co-ops. R.E.M., she says, is a family. The industry has a large turnover rate, and she enjoys being an old-timer in the company she’s committed to.

How To Maintain Zero Negative Reviews in a Thankless IndustryWe know the property management industry can be thankless.

The concept of property management is simple but keeping up with the concept is hard. It’s really just about meeting needs and exceeding expectations.

We all have basic needs wherever we happen to live. We want to know that things will work. Doorknobs turn and there aren’t any leaks. When you go to the bathroom, you want to know that the bathroom is going to work the way a bathroom should work.

When clients or tenants approach the team at R.E.M. Residential, the goal is to give them what they want. It’s not just fixing what needs to be fixed. The team helps them solve problems. They’re bringing a better experience to the people they work with.

Property managers cannot control everything. Some situations have no resolution and no one is perfect. But, when the focus is on relationships and innovation, exceptional customer service can be achieved.

One of the main complaints people have is that they cannot get to a live person when they’re making a phone call. When property managers and their teams are willing to talk to people, those clients and tenants will feel updated. They’ll feel taken care of. Sometimes, that’s more important than an instant resolution to a problem. People appreciate a personal touch.

Spresha says she has had disagreements with people, and those people recommended the company to other people anyway. The disagreement is not the problem. As long as you’re communicating and sharing your expertise, even your adversaries will relate to you.

Layers of answering machines and automation do not resolve anything.

There’s a lot of disagreement in property management. It’s part of the job. The team at R.E.M. Residential is dealing with sophisticated, educated, and successful people. They might tell their property managers what they want, and those property managers will respectfully disagree. This is the job.

What makes the relationship work anyway? Communication. Common ground can be found. A perfect record of reviews is more about relationships than resolving management issues.

Keeping Relationships Happy When People Are Not HappyYou cannot make everyone happy all the time.

The key to keeping the relationship happy is getting back to people. Right away. Don’t promise you’ll call back in an hour and then wait two days to call. Even if it’s bad news, communicate immediately. Be respectful. Use soft words. Treat tenants and owners and building board members like humans. Guide people in another direction if they can’t get what they want.

Property managers can establish better relationships with tenants by explaining that they need to implement what their owners require. You’re the liaison between landlords and renters. You have to get to know the people you work with and show them that you’re sticking around when it comes to service. For example, Rashaad has rented apartments in many of the buildings managed by R.E.M. People know him. He showed a lot of his fellow tenants an apartment. They remember he was easy to work with, and they remember when he got them a deal. When those tenants find out he’s also working with the management company, they know that he understands their needs.

Your contract with your tenant does not end when the lease is signed.

The job of a property manager is to advocate for everyone; owners and tenants. A little bit of effort makes a big difference to your tenants. A human element is necessary, even when important things are automated for efficiency and accuracy.

When you work towards tenant retention, remember that you have tenants who love to communicate online and via text but you also have more traditional tenants who want to pick up the phone and have a personal conversation. Be prepared to use the apps but also have the conversations.

Reach everyone.

Automation and Personal Relationships: A Both/And SituationThere’s a place for automation. A need for it.

Specific things can be automated when the human element is not taken away. Tenants can pay rent online and schedule maintenance through an online app, or they can call their property manager and talk about a problem that’s happening in their apartment.

Be flexible. Make sure both options are there and make sure your tenants know that both options are there.

The team at R.E.M. Residential provides their personal phone numbers to owners and tenants. No one has abused that privilege yet.

There’s absolutely a need to automate. You cannot manage properties in 2022 and 2023 without automating. Stay ahead of the tech curve and invest in what you need to run your business better.

Ultimately, however, you have to remember that a property manager’s job is to be a human and to talk to humans. No app will resolve a conflict between seven people in a room.

Balancing the workload at R.E.M. is largely about instinct and knowing how each team member works best. Brittany calls it “a vibe.” No one is overloaded. Personalities are matched to properties and clients. Property managers are asked if they have time to take on another building or another client. They’re not assigned new work without consent.

No one needs to have their time wasted or compromised.

It’s easy not to respond to people who are calling for help or to complain. Most of your clients understand that a large part of your day is putting out fires. You’re a property manager. If you tell them that you’re prioritizing what you need to do, and you’ll get back to them about their situation as soon as possible, they’ll be okay with it. They’ll know they’re going to get what they need.

People want to be heard. They don’t want to feel like they’re sending something into the black hole and they don’t want to give up on ever hearing back from their property manager.

A cheerful response is essential, too. Spresha says she hires receptionists based on how they sound when they answer the phone. Communication goes a very different way if there’s a bad attitude or a voice that sounds rushed and disinterested answering the phone.

Retaining Property Management Clients with ServiceR.E.M. has never lost a client, except for a couple during COVID who could not travel the way they intended and thus decided they did not need a property manager.

Their retention rate when the building isn’t sold is near perfect. A customer may sell the building and that typically means they’ll lose the client, but when a building is in the position it needs to be in that it can be sold, they know they’ve done something good while managing it.

R.E.M. Residential does not want to be the biggest property management company in New York. They want to be the best.

Retention at the employee level is also near-perfect. It’s a family. They’ve been a family for a long time, and sometimes they argue and sometimes they come together. The team socializes outside of work. They have wonderful personal and professional relationships.

Without trying to team-build, they manage to do a lot of team-building.

Rick makes most of the decisions, but when suggestions come up, they’re heard. Sometimes, he has to be worked on and sometimes he listens to their opinions right away.

If someone makes a mistake, there’s an immediate meeting. The management team at R.E.M. Residential knows that everyone they’ve hired is good at what they do. But, mistakes get made. The purpose of talking about the mistake is to make sure it doesn’t happen again. Mistakes are not a problem, but repetitive mistakes are a failure.

There’s also a collaborative vibe to the team. They cover for each other and they contribute to problem-solving and workload issues. This isn’t just to help their co-workers. It’s also to protect their brand. If one person drops a ball, the entire brand suffers. This understanding brings the team together.

Be Obsessed with ReviewsRick admits to being obsessed with reviews. That shift has made the whole team pay more attention. Everyone is checking in on their reputation online.

Everyone monitors reviews at R.E.M. Residential. They also ask for those reviews naturally. And, they suggest that the positive review is not for the company, but the specific person who helped them. Usually, it’s the building super.

If a tenant calls in and says they are moving out after five years, they’ll be asked if they were unhappy. Usually, the answer is no. They simply need a bigger space or a smaller space or they’re interested in living in a new neighborhood. So, the team asks that tenant to go online and leave a five-star review for the building super.

Anyone who calls is asked to provide a five-star review for their super or any team member that contributed to a good experience. This request is always made verbally, on the phone. If one of the property managers sees someone in person, they’ll also ask for a five-star review that way.

Seize the opportunity. Have a conversation about the experience, and then ask for the review. This establishes a commitment.

Secrets to Success: A ReviewNo negative Yelp reviews. Now you see how it’s possible.

The secret to the success R.E.M. Residential has achieved is:

• Having actual people pick up the phone.
• Encouraging property managers to do what they’re supposed to do with support.
• Communicating even if there are disagreements.
• Asking for five-star reviews for specific people, like a building super.
• Hiring people who fit your team immediately.

There’s no formula. Everyone on the podcast admits that. The business works because the people in the business hold the same values and they work well together. Their strategy is to treat people well and go off all the best gut instincts.

Creating a culture of accountability and collaboration translates to better client experience, which contributes to client and employee retention. If you’d like to talk more about this podcast, please contact us at Fourandhalf.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY PhoneThis field is for validation purposes and should be left unchanged. The post Managing Properties in One of the Country’s Toughest Places Without People-Pleasing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Note: The names in the video are swapped. The first guest shown is Tommy Chambers and the second is Chris Harold.

We welcome you back to the Property Management Show with your hosts, Marie Tepman and Brittany Stephens.

In Part 1 of our conversation with Chris and Tommy of Chambers Theory, we talked about how they used data and innovation to expand their customer lifetime value amidst area-specific market forces that tend to shorten it.

Here, in Part 2, we’ll cover how they balance profits, people, and the customer experience.

Retaining Property Management EmployeesA happy property management team will almost always lead to a happy set of property management clients.

How is employee retention encouraged at Chambers Theory?

In a number of ways.

• First, there’s a new role: Director of People and Culture. That role really sprung from fast growth. In four years, they grew to 30 employees and while every employee is moving in a different direction, helping the company succeed is the end goal.
• There’s also a focus on work/life balance. The team is friends outside of work. Many of them have been together for 15 years. When you’re working with fellow humans and not just working in a company, it’s easier to focus on what you do together.
• Committing to a capacity-to-care ratio.
• 8Profit sharing so that a portion of the company’s profits are dispersed among the entire team. Everyone benefits from company growth.

There’s a timeline for reviews with the team where each employee gets to discuss their own plans for career advancement. Tommy and Chris have also borrowed a measure from Navy SEAL Team 6, which is focused on two things: performance and trust. You want high performers who you can really trust. And sometimes, if a particular team member isn’t performing well, they’re worth keeping close because you know you can trust them and their peers can trust them.

Capacity-to-Care RatioThe capacity-to-care ratio began as a look at how many properties per person made sense to keep the team functioning as well as they wanted. Companies that have problems with quality seem to have a higher property per team member ratio. A 100:1 ratio makes it hard for those team members to care about the 100 properties they have to manage.

It doesn’t matter how good you are, if you’re too burdened, you’re losing your capacity to care.

To increase that capacity to care, the ratio has to be lower, and/or more infrastructure is needed to support the team.

Each team member at Chambers Theory is specialized in what they do. And, more experienced hires have more capacity. So, increasing capacity has become a key metric.

Right now, the company is at 24 properties per staff member. They’re investing heavily in the staff ratio, but expect to grow to 30 properties per staff member before too long. They’re skeptical of going any higher than 35 to 1. Even if the team seems capable, they’ll want to hire enough people that the ratio stays closer to 30 properties per staff member.

How to Stay Profitable While Focused on Capacity-to-CareHow do you balance taking care of your team with making money?

Profitability is more likely – even if it’s tighter – when you have better quality of service and higher average rents and lower vacancy rates.

Hire so that you’re prepared for growth and not waiting for it.

And, remember that employee retention increases profitability over time.

Your employees, when they have the capacity to care, will continue to improve their service and be more efficient. You’re not spending money on hiring and training new team members when you have great retention.

Referrals as a Source of GrowthWhen new business is continually coming in the door and current clients are easily retained, there’s little to worry about in terms of profitability. Chambers Theory has a stream of referral business that comes in because most of their clients are Foreign Service and military clients. They have a presence in the community and throughout the Washington, D.C. area.

They like to say that all of their clients become friends and all of their friends become clients. Developing relationships is a huge part of their business model and their plans for growth. They know their capacity to care is higher and that turns into a powerful referral machine. Clients are served well, so it’s easy for them to earn new business based on their reputation.

After four years in the property management business, they have around 700 single-family homes they’re managing in northern Virginia. There’s also a small portfolio of properties in Oregon that make up about 80 doors.

They see the sales market softening eventually and a lot of accidental landlords looking for help when they cannot sell their homes.

Protecting Reputation and Asking for ReviewsIt’s amazing what happens when you ask for a review.

Their team has focused on building relationships, so quickly solving problems when someone is unhappy is almost intuitive. On the other side, when they have done a good job, they’re quick to ask their clients to please put a positive review out there.

People love helping other people. Customer service culture is not just about what you do for your clients. It’s giving them an opportunity to do something for you. They want to help, and you have to accept their willingness to help by sharing a good review.

Reviews are about emotional intelligence and paying attention to communication. Can you pick up on cues of dissatisfaction? Do you know when a client is satisfied?

When you lead with gratitude, you get a good response.

Emotional intelligence prioritizes personal emails over automated emails, for example. Instead of sending an automated email to ask for a review, a dedicated team member writes a personal message that’s gratitude-based.

Growth isn’t without pain, and sometimes you have to decide what you want to sacrifice. Tommy and Chris weren’t willing to sacrifice their services in order to make more money.

Are they profitable? Yes.

Could they be more profitable? Also, yes.

Yet, they were not willing to stretch their team members too thin in order to be more profitable.

As they continue to grow, they’re also looking at automation.

Some things are automated, but never the actual relationships they have with their clients. They could have an automated repairs department, and they could send out an automated email asking for a review every time a problem is solved.

But, they don’t.

There’s only so much that can be automated before that personal relationship and level of service is lost.

There’s a team at Chambers Theory that’s only responsible for calls. They’re trained to use their emotional intelligence to respond to calls and get back to people quickly. Even if the solution is not immediately available, their clients know they’re being heard.

This is Trust Equity.

Imagine you’re going on a long trip and you start with a full gas tank. Every mile of the trip, you’re depleting what’s in your tank. Think about that tank as your relationship with your clients. How far will you go with clients if you don’t fill up the tank?

Automation versus Personal TouchEveryone has shifted to automation. And while the team at Chambers Theory invests heavily in technology, it’s not used for communication or personal relationships. It’s leveraged within the team so that people can provide personal service.

Three areas of automation are working well for them right now.

1. Inspeqt. This is a tool that allows property managers to go into any house and scan bar codes on appliances and systems. It provides an inclusive look at everything in the house, which allows for recommendations on repairs, replacements, and upgrades. If a water filter is broken, the Inspeqt app identifies the exact filter that’s needed and even facilitates a purchase on Amazon that gets it there the next day. This saves so much time. Instead of calling a contractor and waiting days for a new water filter to be installed, the problem is handled on the day it’s reported. This is extra value to owners and tenants.
2. Minut. A Minut device is especially useful for vacant home and second home property management, which is the majority of their portfolio in Oregon. A device similar to a smoke detector is installed and it measures humidity levels, heat, and noise levels. If something is wrong, there’s an immediate notification. If it’s the middle of winter, for example, and the temperature has dropped to 60 degrees and continues to get lower, they know the pipes are in danger and it can be addressed.
3. Collecting data and creating apps. Chambers Theory has a Director of Operations who is a wizard at collecting data and building apps for the team to use. Metrics and performance data can be accessed immediately and everything can be automated that isn’t external facing communication. Repetitive, internal tasks are easily automated and simplified.

A lot of companies talk about their mission and their vision. They have powerful slogans.

It’s one thing to tell people what you believe in, but the real proof is when you show them.

Chambers Theory has managed to do that, and we’re so glad that Tommy and Chris joined us to talk about what they believe in and how it has helped them grow a successful property management company.

If you’re enjoying The Property Management Show, please leave us a rating or review on your listening app of choice. And, contact us at Fourandhalf if you have any questions about this conversation.

First Name(Required)Last Name(Required)Email(Required)Phone(Required)Company NameJob TitleComments or QuestionsHiddenDate MM slash DD slash YYYY EmailThis field is for validation purposes and should be left unchanged. The post Balancing Profit, People, & Customer Experience appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 The Property Management Show is back with Marie Tepman and Brittany Stephens from Fourandhalf, and today we’re talking about customer lifetime value.  When we think about customer lifetime value, the biggest variable that comes to mind is the length of time a customer stays with your company. But what happens when your service area […]

The post Expanding Customer Lifetime appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Customer Lifetime Insights and Marketing Let me ask you a question. When was the last time you made a big purchase? Imagine you realize that you need a new car. What would you do next? If you’re like most people, you would probably head over to Google or your preferred search engine. What would you […]

The post Customer Lifetime Insights and Marketing with Marie appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Customer Analytics with Aurelie Lemmens Today’s guest on The Property Management Show is Aurelie Lemmens, an Associate Professor of Marketing at the Rotterdam School of Management, Erasmus University in The Netherlands, and Academic Director of the Expert Practice on Customer Analytics at the Erasmus Center for Data Analytics. Dr. Lemmens is an expert on the […]

The post Customer Analytics with Aurelie Lemmens appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Welcome back to The Property Management Show. If you joined us on Part 1 of this podcast with Ray Hespen, you learned about why it’s important for property management business owners to pay attention to churn. You need to do more than pay attention – you need to measure it. We’re back to talk […]

The post How to Deal with Owner Churn appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 On The Property Management Show today, we’re talking with Ray Hespen, who has been here before to talk about maintenance, data, his company PropertyMeld, and the dangers of ghost maintenance requests. Today, we asked him to discuss what some of his recent data has been telling him about customer churn in the property management […]

The post What Factors Affect Owner Churn? with Ray Hespen appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Daniel Craig on Why Customer Churn is a Silent Killer Daniel Craig from ProfitCoach is joining us on The Property Management Show today to discuss the problem of churn and the value of retention. Walk down memory lane with us for a bit, and you’ll remember that Daniel’s first benchmarking study led to the NARPM […]

The post Why Customer Churn is a Silent Killer with Daniel Craig appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The post How to Use Negative Reviews to Improve Your Operations appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Meet Ray Hespen! He is the CEO and Co-founder of Property Meld. You might recognize him if you attended PM Grow Summit 2022, where he spoke about maintenance as an owner retention tool. He’ll be on the podcast talking about Owner Churn.

The post Podcast Sneak Peek: Owner Churn with Ray Hespen appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Meet Aurelie Lemmens! She is the Academic Director of the Expert Practice on Customer Analytics at the Erasmus Center for Data Analytics in The Netherlands. She’ll be on the podcast talking about Customer Churn. Check out the video for a sneak peek of our interview with her.

The post Podcast Sneak Peek: Customer Churn with Aurelie Lemmens appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The post Is Content Marketing Still Relevant? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We’re thrilled to announce a new season of The Property Management Show Podcast. Watch the trailer to see what this season will be about!

The post The Property Management Show is Back! appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Ten years ago, if you were a property management company writing your own blog content and filming your own videos, that kind of marketing gave you a competitive advantage within the industry. But now, everyone is doing it. This type of marketing is not only expected – it’s necessary. How do you make your […]

The post The Importance of Long Form Content appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 SEO vs. SEM It’s common for people to be confused about the difference between SEO and SEM, or even to think they’re the same thing. It’s important you understand the difference between these marketing strategies so you’re not leaving valuable leads on the table. Let’s talk about the strengths and challenges of SEO and […]

The post SEO vs. SEM appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Telling Your Story Every business has a story. Being able to tell that story in a way that connects and resonates with your perfect client is a crucial part of your property management marketing strategy. Maybe you think your story isn’t that interesting. Think again. It’s probably not your story…but the way that you’re […]

The post Telling Your Story appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Facebook Ads vs. Boosted Posts If you’ve been on Facebook in the last couple of years, you’ve probably come across some kind of promoted content. There are several different ways in which this content shows up, but it’s always right there in your feed, among posts from the people and companies you already follow. […]

The post Facebook Ads vs. Boosted Posts appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What Should Property Management Marketing Content Be About? Property management marketing doesn’t need to be terribly complex. What you’re doing is pretty simple: demonstrating your expertise in order to attract new business. So what do those prospective owners and investors want to know? How can you structure your property management content to reach the right audience?

Here are some content ideas property management companies should consider. You’ve probably already written the blogs about how to find a great tenant and where to look for qualified vendors. It’s time to get creative and detailed.

Local Property Management Marketing: Address Your Market

Unless you’re a larger company with management companies all across the country, you’re pretty hyper-focused on your local market. The owners and investors looking for help in that market aren’t going to care about broad, high-level information. You need to demonstrate your local leadership, even while establishing yourself as an industry expert.

Here are some good property management content topics that can keep you focused on your local market and establish yourself as the go-to property manager in your region:

• Local laws and ordinances. For example, in San Francisco, you’ll want to talk about rent control while in Austin or Dallas you may want to address changes to the Texas Property Code. Does your city require a license to rent out homes? Talk about it in your content.
• Market trends and forecasts. Reach out to those investors who are wondering what to do with their investment properties now and over the next year. Share what you know about how the rental market is performing, what tenants are looking for, and where you see rental values going.
• General cultural and economic trends affecting the rental market. Think about the pandemic and how every state and city had its own eviction moratoriums.

Keep Some Evergreen Property Management Content

When we talk about evergreen content, we mean information that stays relevant despite the season, the situation, or the specific market. All of that local news and information that you share is important, but you’ll also want your content to include educational and informative pieces that can be re-used and re-purposed for different reasons.

Evergreen content includes information on how to prepare a property for the rental market, why photographs are important in rental property marketing, how to choose a property manager, and tips on avoiding a bad tenant.

This type of information can be written up for blogs, podcasts, videos, articles, and included in eBooks. You can use it when a potential client has a specific pain point that you want to address during your sales process. For example, if you’re talking to an owner who has struggled with high turnover, send them the blog you published on tenant retention. Evergreen content is versatile.

Target Property Management Content to Online Searches

You know what kind of questions that rental property owners and real estate investors are asking. They probably ask you these questions. Use that information to structure your property management marketing. When you answer their questions in a blog or on your property management website, you’re not only providing an answer to that one person. You’re sharing information with an entire network of owners who likely have the same question.

For your property management content to show up in Google searches and other online queries, you need to know what those owners are searching for online when they start typing into their phones or laptops. What questions are they asking? What specific keywords are they using?

This is where a property management marketing company can help. We spend time tracking what owners want and need. We can help you with your content and ensure that content is found by the people who need it – your future clients.

Contact us at Fourandhalf. We can help you identify what your ideal clients need from your property management content.

The post What Should Property Management Marketing Content Be About? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What Should Property Management Marketing Content Be About? Property management marketing doesn’t need to be terribly complex. What you’re doing is pretty simple: demonstrating your expertise in order to attract new business. So what do those prospective owners and investors want to know? How can you structure your property management content to reach the right […]

The post What Should Property Management Marketing Content Be About? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 3 Steps to Profitability with Kathleen Richards On The Property Management Show this week, Kathleen Richards is joining us to talk about profitability. She’s been on the podcast several times, and we’re asking her a pretty simple question: how can property management companies set themselves up to make good money? Kathleen Richards: An Intro […]

The post 3 Steps to Profitability with Kathleen Richards appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 How CPC Has Changed for Property Management Since 2018 Spending on digital advertising has increased over the years. Advertisers have spent more on online ads than television ads since 2017. COVID-19 has only increased demand for online ads, and as more companies adapt to digital marketing, it makes sense that the platforms we use […]

The post How CPC Has Changed for Property Management Since 2018 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Catching Up with NARPM Women’s Council for Property Managers Christina Wade and Kesha Jenkins of the Women’s Council for Property Managers join The Property Management Show to talk about the progress that’s been made since the last time we talked about the launch of this initiative. We’re revisiting the mission of the council and […]

The post Catching Up with the NARPM Women’s Council for Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

So, you’ve invested the necessary time and money marketing your services to property owners. You’ve been running ads, posting blogs, and you even have a shiny new website. That’s great! But, what if you’re not getting the leads you expected you would? Or, what if those leads are coming in, but they’re not sticking around? […]

The post The Cost of Marketing to the Wrong Owner appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Why are ebooks so popular? More importantly, do you need an ebook for your property management company? The short answer is yes, and here are four reasons why you need one. These four reasons will also do a good job of explaining why they’re so popular in attracting new business. 1. Ebooks Allow You […]

The post Why Property Managers Should Have an Ebook appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 This week on the Property Management Show Podcast, Marie and Brittany are joined by Michael Lushington, CEO of Fourandhalf, and Ethan Lieber, CEO of Latchel, to discuss PM Grow Summit 2022. Fourandhalf and Latchel are co-presenting the upcoming conference, which focuses on the future of property management. How is the future of property management […]

The post What to Expect at PM Grow 2022 with Michael Lushington and Ethan Lieber appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Do Guarantees Work? Chuck Hattemer of Poplar Homes is on The Property Management Show today, talking about the property management guarantees his company implemented more than six years ago, and how they’ve helped him build a better property management business. The Idea behind Making Guarantees a Marketing Strategy Chuck and his business partner have been […]

The post Do Guarantees Work? with Chuck Hattemer appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Misconceptions about Property Management Leasing Automation We’re talking about leasing automation today on The Property Management Show, and our specific discussion centers around what it is and what it isn’t. We’re also talking about how it can help property managers save time and improve their reputation. Our guest is Abi Wasserman, sales manager at ShowMojo.

What is Leasing Automation? Simply put, leasing automation is the removal of any manual effort from the leasing process.

With automation, you’re reducing the cost of manual effort that you put into the entire leasing process. From the moment the listing goes on the market to the way the application process begins can be completely automated for property managers. It includes syndicating the listing, screening a potential resident before they even visit the property, and coordinating showings. That’s the scope of leasing automation.

One of the main misconceptions about leasing automation is that it simply means lockboxes or self-showing technology.

Those things can be one component to leasing automation, but there’s more to it.

Automation contains a lot of the self-showing process. It covers the way prospective tenants see a property.

You can also still automate your leasing process without using lockboxes or self-showing technology. For example, for an occupied property a lockbox isn’t going to work. You can’t have prospective tenants showing up to take a tour of a home where your tenant still lives. Not owners want self-showing technology available, either. Showing technology might be part of what you do, but it’s not the entire automation process.

What Leasing Automation is NOT There are some property management companies that have taken steps to implement workflow automation. A lot of sales people use canned responses to emails. That makes your process similar, but it doesn’t mean you’re automating that process.

If you’re still picking up the phone to schedule and reschedule appointments or manually checking your calendar for times that are available to you or your phone is still ringing with inquiries – you’re not using an automated leasing process.

If renters cannot self-screen before scheduling a showing, that’s not leasing automation.

To be fully automated, you need to incorporate an entire process instead of taking one or two steps towards it. From the moment a property is available all the way up to a prospective tenant filling out an application, you can automate the process without any of your own labor.

Once the screening starts and the move-in checklist comes out, you’ll need a high-touch plan to work with your tenants. The tech moves aside to the high-touch property management.

Automation Does Not Mean Artificial Intelligence Maybe you’re worried that automated pre-leasing means people will try to call about a listing and get caught in an automated phone tree that takes forever to navigate and still ends up at someone’s voicemail.

That’s a misconception. It’s also a misconception that robots will take over all of the pre-leasing work if you automate.

According to Abi, you have to set up your process for best practices.

Some property management companies want prospective tenants to be able to schedule their own showing online, without talking to anyone. Others prefer to have interested tenants talk to a live person. The automated process does not take out the human. It’s instead a prospect-driven leasing process that allows the renters to be in the driver’s seat. There’s an immediacy to it that prospective tenants want. A lot of times, tenants aren’t looking at listings during business hours. They’re scrolling through sites at 8pm or 11pm.

When tenants schedule a showing or express an interest in replying, automated systems will still send a personal reply. It won’t be from ShowMojo if you’re a property manager using that software. It will be from a human inviting that tenant to schedule a showing.

Most tenants prefer to schedule online. They’re more likely to use an automated form than they are to call the management company and spend 10 or 15 minutes trying to find a good time to see a property. They’d rather answer the five questions on a pre-screening questionnaire and move on.

Automation Saves Property Managers Time For ShowMojo customers, the average amount of time saved is about four hours per day. That’s how long it takes to answer calls, coordinate showings, respond to voicemails, answer emails, and then reschedule showings. A lot of time can be wasted showing up at a property and having the tenant not be there.

The automated process includes a rigorous confirmation procedure. Those tenants are more likely to show up and there are steps to manage cancellations or notify property managers if a tenant is running late. Less time is wasted.

Instead of an inbox with dozens of emails that say showing requested, property managers using automation will have dozens of emails saying showing confirmed. They don’t have to do anything.

Another misconception is that automation will reduce the need for people. That’s not exactly true if you’re a growing property management company. Take a look at the strength of your team members. Now that they have more time available to you, how can you best use their talents to grow your business?

If you’re a smaller company or you’re doing all of this yourself, you can avoid the need to hire extra people.

Automation and Reputation There’s also an impact on leasing automation and property management reputation. Many times, property managers get negative reviews from prospective tenants who are upset they applied for a property, paid an application fee, and then got rejected. Automation can make expectations more reasonable.

Automating every part of your process provides a better experience for prospective renters. It starts with sharing your criteria and expectations. Each interested tenant will get a pre-screening tenant questionnaire before a showing is scheduled. That questionnaire can candidly lay out the criteria you will require tenants to meet before they’re approved for a home you rent. This can cover:

• Pets
• Income requirements
• Credit score minimums
• Rental history

This information will depend on your standards and even where you are, because you don’t want to ask a question that violates the law.

With this type of self-screening, you’ll have only qualified renters coming to the showing. The people filling out applications will be those who know they’ll meet your standards. This can prevent negative reviews.

Automation also allows you to ask for feedback throughout the process. When a potential renter finishes a showing, you can ask about the property and you can also ask about the showing agent. You’ll get valuable feedback on rental value and you’ll also have some insight about whether your agents are showing the home the way you expect.

Asking for feedback provides an outlet for tenants to vent before they go to a public review site. You can also uncover things you might not know are happening.

Automating your pre-leasing process allows you to save time, improve tenant relationships, and increase your reputation. Those are wins whether you’re a growing property management company or a small business looking to maximize what you can do with the hours available to you and your very small staff.

Questions? Contact us at Fourandhalf.

The post Misconceptions About PM Leasing Automation with Abi Wasserman of Showmojo appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 The podcasts we publish on The Property Management Show usually inspire us to talk about the topics that we cover, long after the guests have left us. On today’s show, we’re sharing some of what we captured when Marie and Brittany were discussing the most common blind spots that property managers miss when it comes to marketing their business and their services.

Two stand out: Positioning and Data.

Most Common Property Management Marketing Blind Spot: Positioning Positioning can be a big blind spot for business owners and property managers. Here’s a question that we often pose to owners of property management companies:

“What makes you different from your competition?”

There are three common answers that we hear a lot:

• I am an investor myself.
• We care for your property like our own.
• We deliver peace of mind.

These are great reasons for an owner to work with you. But these are not competitive advantages. They’re more like value propositions. They’re selling points, but they don’t necessarily set you apart from other companies.

It’s important to communicate that you invest in your own rental homes and provide peace of mind and treat clients’ homes the same way you treat your own. But, you also need a differentiator, and these qualities are not that.

You might be surprised at how many of your competitors claim those same three sales points. If you’re trying to position yourself as being better than your property management competition, you need something else. What does it feel like to work with you? What do you want your owners to feel like when they know you’re taking care of the leasing, management, and maintenance of their investments?

Think about the experience of buying a used car. No one likes to do it because you know an over-aggressive sales person will approach you almost immediately, try to upsell you, and then keep you there for 12 hours while the financing is figured out.

People hate that.

So, you can position yourself as a used car company that offers 0 percent financing (which all of them do), or you can do what CarMax does, and solve the pain of used car buying. They know the process isn’t the best, so they allow you to do everything online and then arrive to pick up your car curbside without ever talking to a sales person.

That’s a differentiator.

Used car companies aren’t going to double their sales by offering 0 percent APR. But they might by positioning themselves based on their truly unique qualities. Property managers aren’t going to double their doors by offering peace of mind.

These are the little things that make a big difference. Think outside the box when it comes to your market and what you can offer.

Two things will help with this blind spot:

• Observe your competition. What are they doing and what aren’t they doing?
• Know your perfect client.

Elevate Your Positioning Beyond Table Stakes This is hard. It takes thinking and creativity and brainstorming. We’re in a time of property managers offering guarantees. We did a whole podcast on that recently that will publish soon. When no one was offering guarantees – that was a competitive advantage. But, now that most management companies offer the same guarantees – it’s become table stakes. In other words, it’s so common now that many property managers feel they have to offer guarantees, just to be on level playing field with their competition.

Sometimes it can seem like you’re running out of ways to make yourself stand out.

What’s interesting is that reputation has a huge impact on whether or not those table stake offerings matter. If you’re a company that has a great reputation, it won’t matter as much if you don’t offer guarantees like other management companies do. People are going to want to work with you because of your reputation. But if you’re suffering from poor reputation management, offering guarantees and following through with them may play a bigger role in lifting your reputation and thus, your ability to grow. (Learn more about reputation management).

These shiny new sales pitches – like guarantees – can help you gain some visibility. But, sooner or later you need something else. We recommend looking inward. It can be harmful for your business if you’re always chasing the next shiny object and the next big thing. You can overextend your team or put your business model at risk.

Don’t lose sight of who you are. Guarantees are accessories for your business. But if you don’t know who you are and you bounce back and forth between what you offer, it’s hard for customers to get to know you. When you keep changing your offerings and they have no connection to each other, and they’re not tied to those core values, then it sounds like a gimmick.

Beating the Positioning Blind Spot When you’re positioning your company, you have to ask yourself some key questions:

• Who are we and why are we here?
• Is this who we want to be?
• What do we already have in place?
• What do we need to stand out?

If you’re positioning yourself in a gimmicky way that includes new and unrelated promotions every month, that’s going to define you. It could hurt your brand. Instead, figure out what makes your company tick.

The way you position your company also influences the type of people you attract to your company. So if you’re positioning as a boutique company, or if you manage luxury estates, the types of clientele who call you will be different from the company that positions itself as property managers who promote affordable housing and Section 8 homes.

Every business is different. Be clear on your strengths.

Get over this blind spot on positioning with branding and messaging. Figure out who you are and figure out what’s important to your perfect client.

Don’t forget to reach out to professional resources when they’re available to you. Collaborating with your team and hiring experts can make things easier as long as you’re willing to do the work to get to the place you want to be.

The Property Management Show is brought to you by:

Another Property Management Marketing Blind Spot: Data Another big blind spot is data, and part of the problem may be that data can be polarizing.

Some people love data and others don’t want to be anywhere near it because they don’t know what to do with it.

A lot of property management companies have access to a wealth of data and they don’t even realize it. That’s a huge blind spot.

There are three specific areas where data can help.

Reputation Management for Property Managers Reputation is a pretty low hanging fruit when it comes to your data. All those online reviews, whether they’re positive, negative, or neutral, are data points.

Data isn’t always a number. It doesn’t have to show up in a chart or graph. It’s any input of information.

Reviews are data, and you need to know how to utilize that data. You can make decisions based on that data that will help your business.

First, make sure you’re asking for reviews so you have access to the data. Lots of software systems will automatically send requests for reviews to owners and tenants. When it’s automated, you’ll always have that data.

Then, use the data to examine your process. If there’s a one or two star review that provides feedback, you can perhaps identify a problem with your process. Don’t assume the negative review is false. Do some research and see if you can use it. You don’t have to blame someone on your team, but take a critical look at the process that led to the bad experience.

We know sometimes those bad reviews can come from difficult tenants or endless complainers. Typically, negative reviews will be maintenance-related or have something to do with the leasing process not meeting an applicant’s expectations. Maybe their application was declined.

Sometimes it’s process and sometimes it’s perception.

If expectations were different from what actually happened, that might tell you that you need to revisit your communication. When multiple people report the same experience, you know you have to look at what’s going on. But look at the single reviews, too. Others could have the same issues but choose not to leave a review.

Book some time in your calendar to read those reviews. They are data points, and your business will be better.

Tenant and Owner Retention Understanding how long you retain owners and how long you retain tenants is not difficult. Most software systems provide statements that show average relationship lengths.

Tenant retention will depend a lot on your market. If you’re in a college town or a city with a lot of digital nomads, you’ll have different tenant retention rates than an area with families who are nesting. Understand the normal length of tenancy for the types of home you manage. Then, compare those numbers to your own numbers. This data will give you insight; are your tenancy numbers where they should be or is there something you can do to increase retention?

Then, you have to look at your owner retention. When someone terminates a contract or doesn’t renew, do you ask them why? A lot of property managers just move forward, but this is valuable data that you want to access. You need to know how long you’re able to keep an owner. More importantly, you need to know why you lose them.

Quantitative data is numerical. Qualitative data is more nuanced. You need both.

Track this information and look at trends. If, five years ago, the average owner stayed for four or five years but recently they’ve only stayed for two years, what has changed? This tells you something.

Evaluating your Owner Lead Volume When it comes to leads and how you use data to evaluate your lead volume, a huge blind spot is quantity versus quality. The number of leads you receive can often be a vanity metric. Of course you want more leads, that’s usually good. But, it’s important to look at your close rate as well. If you’re getting a lot of leads but you’re not closing them, either there’s a sales process issue or a problem with the leads themselves.

Make the analysis and draw the connections.

Maybe you think you need more leads. Just remember that more leads does not necessarily mean more contracts. Dive into your numbers and get an idea for which leads deliver new clients. Quality is far more important than quantity when we’re talking about leads. (Want to know more about identifying different kinds of leads? Check out our interview with Jeremy Pound, “Good vs. Bad Property Management Leads.“)

Data is not as complicated as you think. It’s just information.

These blind spots are common and you may have your own when it comes to property management marketing. If you’d like to talk about any of this, please contact us at Fourandhalf.

The post Blind Spots in Property Management Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Brittany and Marie joined Ethan Lieber on the Latchel podcast to discuss marketing gaps and how property managers can compete in an industry that’s only growing more crowded and more competitive. Ethan wanted to know how a property management company can position itself and build relationships to add the marketing fuel that’s needed to grow.

Here’s what they had to say.

Fourandhalf as Property Management Experts Fourandhalf is a marketing agency that creates and implements owner lead generating plans for property management companies. The main goal is to help property management companies grow through owner acquisition. They partner with their clients to get found online by property owners, which requires marketing strategies that target their ideal owners. Some of the marketing campaigns Fourandhalf manages include blogs and content creation, websites, SEO ads, and reputation management.

Most Fourandhalf clients already have the foundation of their business set up. A good marketing campaign will work best when the operational side of your property management business is ready to go and ready to grow. Marketing and leads need infrastructure to be effective. Even the best marketing plans won’t work if no one is there to answer the phone and engage with leads.

Over the last five years, a lot of people have wanted to get into the property management space to build a monthly recurring revenue model. Fourandhalf can work with people who are starting from scratch, but it’s a challenge because marketing takes time.

Sometimes, newcomers to the industry believe that property management is just managing homes, but there’s a lot more involved, and that’s why Fourandhalf has also served as a connection hub for people in the industry. If you’re not ready for marketing, this company will put you in touch with the people who can help you build your foundation and prepare for the marketing component.

Acquiring a New Client: Close the Holes in Your Funnel Most property management companies can think about their marketing and sales process as a funnel. At the end of the funnel is the client. The top part gathers everything that’s needed for marketing. You’re bringing people into the funnel, and you want to make sure there’s not a hole in that funnel. You want to make sure the funnel goes somewhere. That’s how you get marketing to work.

When people come to Fourandhalf, they’re usually doing some sort of marketing already, even if they don’t realize it’s marketing. Most business owners reach out for help when they realize they aren’t sure of what they’re doing, or they don’t have the time to do it right.

The first step of the onboarding process with Fourandhalf is to look for problems in the process that a property management company already has. It might be an unstructured sales process or a simple training issue with their Business Development Manager.

Trends and Mechanics in Property Management Ethan sees management companies with a demand and appetite for growth. Increasing doors and revenues is a huge topic in the property management industry. Has this led to an investment in property management marketing?

Yes, and for a couple of reasons:

• The real estate market is crazy right now. The higher demand for marketing is partially driven by the fact that house prices are high. With such a hot real estate market, rental property owners are starting to cash out on their investments. While word of mouth and referrals once made up for any natural attrition with a property management company, marketing is necessary now because that attrition is growing. It’s a little bit of panic for some companies.
• Competition is growing. More and more property management companies are arriving in markets every day. Companies have to offer competing prices and services, so that requires a marketing strategy that gets existing and new businesses in front of people.

You cannot control that your clients are selling their home. But, if you’re a property manager who also offers brokerage services, you want to make sure your clients know you can help them sell. That’s part of marketing. The worst case scenario is finding out you’re losing a client after the house is already sold.

It’s easy to forget that providing a service is holistic. It starts with marketing and runs through the entire property management lifecycle. It’s all interconnected. You aren’t going to provide every service for every client by default. You have to let them know what you’re capable of providing, and you have to market yourself all the time.

When property managers think of owner marketing, they often think about marketing as something that happens before the contract is signed.

But, you can’t stop thinking about the owners you already work with.

You continue winning their business throughout the contract period. You can make sure they’re happy with you and you can upsell other services, especially if you have a brokerage. Act as a consultant, not just a property manager. Educate those clients on upgrading properties for better rental values, accessing equity, and other potential wins.

Your marketing should talk to your current clients – not only your prospects.

Find out why they’re in real estate in the first place. Get to know the why and the goals. This makes it easier to communicate with them.

A final reason that marketing is more important than ever is that a lot of property management companies are being more selective about who they work with. They’re choosing to drop clients that aren’t ideal so they can focus on the clients that are going to make them money.

How to Out-Compete the Property Managers in Your Market Property managers have a lot of local market knowledge.

Ethan discussed this with Brittany and Marie on The Property Management Show.

This advantage can be used to their benefit when they’re competing with venture capital companies and other competitors. There are other ways to position yourself to win more business.

• First, look inwards.

Know who you are and what makes you special.

Often, you’ll have a list of things that sound great to you but if you do a bit of research, you’ll see that those same things are listed as benefits for a lot of your competitors. You have to make yourself and your services really unique. It requires a deeper dig into who you are and what you do, and it’s hard.

A lot of property management websites will talk about providing peace of mind, handling tenant relationships, and increasing ROI. You do those things and you should advertise it, but what benefit do you add that’s different than everybody else? Recognize what’s unique to you.

• Example: Realty Solutions

Fourandhalf worked with Dave, from Realty Solutions, on the company’s new website. He’s a smart guy with a marketing background and when he gets a lead, he trains his team to ask that lead about their exit strategy. He wants to know the end goal. That’s pretty unique, so we advertise it on his website. Dave wants his customers to feel like Realty Solutions is on a journey with them. They talk through the end goal, providing a more consultative role than simple property management. That brings in new business.

• Connect branding to a feeling

How do your prospects feel when they leave a meeting with you? Show them how you provide your management services, but make sure you’re letting them know what it feels like to have a property managed by your team.

Explaining all this in your marketing materials is the hard part. It’s a creative process and you have to test and monitor it constantly. It’s important to be flexible, too, and to be willing to test different messages. Fourandhalf uses Unbounce, which is an interesting algorithm that puts one version of a page in front of a test group and allows you to choose the best version based on different test phrases and explanations.

Reviews Can Show You How You’re Different It’s hard to find hacks that help a property manager come up with their unique competitive advantages. It usually takes time. However, you can always put your reviews to good use. If you don’t have a lot of reviews, conduct a survey of your current clients and find out what they like best about you.

It’s easy to feel bad about the negative reviews. But, you should use those, too.

Prospective renters and current tenants can be ruthless, so it’s hard for property managers to look at negative reviews without a bias. But, if you look at them objectively and identify the holes or opportunities in your process to make experiences better, you’re closing a big marketing gap.

Fourandhalf works with someone who invites people to have a conversation with her when they leave a bad review. If an applicant leaves a bad review because they paid an application fee but didn’t get approved for the unit, she calls them in and explains exactly what their application was missing or where it was deficient. This helps them. She’s had people go in and completely change their review. It’s not always reasonable to sit down with everyone who is unhappy, but making time to use those negative reviews can change the experience people are having.

Latchel and other platforms can often protect you from bad reviews. Those reviews are collected before they’re published. But, in some places anything can be written and companies have little control.

This is why it’s important to set expectations early. Let applicants know, in writing, what your criteria are and that application fees are nonrefundable.

How to Evaluate What You Should Spend on Property Management Marketing What you should be spending on marketing is relative. It depends on your business and it largely depends on your area. Marketing a property management business in a state like California is different from some of the markets in the Midwest.

Before labeling your marketing spend as too high or too low, know your business numbers. You need to understand:

• Your annual contract value – how much is a property management contract worth to you?
• Your lifetime customer value – how long do owners stay with you and how much money do you earn from owners over the time period?

These two numbers in particular will give you an idea of what you need to spend. If each owner brings you X dollars over the course of five years, how much should you spend to acquire them?

Go as deep as your data will allow.

If Property Owner A costs $500 to acquire and stays with your company for one year but Property Owner B costs $1,500 and stays with your company for 10 years, you’re working with different marketing spends.

What do you care about more – growing by doors or growing your profit margin?

Most property management companies will care about profits. But, you might be thinking about selling that business in five years, and you want as many doors as possible so you’re acquired at a higher price. Otherwise, the number of doors you have is really a vanity metric. You’d likely rather have higher profits. A lot of management company owners are shifting priorities and seeing this as the ultimate goal.

Here’s some math to help you see how the numbers are so important in establishing what you should spend:

1. You close a contract and, based on the rent you’ll bring in, you can expect to make $10,000 a year on the portfolio.
2. Your operating margin leaves room for a 20 percent profit, which means you earn $2,000 every year on this one contract.
3. You put that money towards marketing.
4. You paid $2,000 to acquire the new client, so you’re not making any money in Year 1. But, in Years 2, 3, 4, and 5, you earn $2,000 every year. That’s a profit of $8,000 on this one client who stays with you for five years.

Property management clients who don’t have this data available to them can request a workbook from Fourandhalf. It’s easy to gather the information and you’ll see what kind of calculations to use.

You may be wondering if there’s a rule of thumb for what your ratio should be.

Here’s what Fourandhalf recommends:

A healthy ratio, in general is 3:1. So, your lifetime customer value would ideally be three times the amount you spend to acquire that customer. You’ll have to adjust for your unique goals. Maybe you want something more aggressive. If your lifetime customer value is five or 10 times what you’re spending to acquire new business, it’s a clue that you could be growing more, and a larger spend might be a good idea. (for more on Lifetime Customer Value and other property management KPI’s, check out our KPI blog series!)

Remember that lifetime value needs to be inclusive of your operating costs. A better operating margin gives you room to increase the acquisition costs and you can spend more on marketing. Ethan stresses this because it explains why and how venture backed companies spend so much on marketing. They’ve invested so much in automation, and they have a higher operating margin.

When Should Property Managers Begin Marketing? It’s never too soon to launch some marketing initiatives because you can start small.

Marketing doesn’t have to be all or nothing. Building your reputation is something you can start right away, and you don’t have to have 5,000 doors to do that. The biggest mistake management companies make is starting too late. They’ve already lost money in client attrition and they’re climbing the wall to dig out of a hole.

Start wherever you are. It’s going to be hard to grow if you’re a property management company without a website or a GoogleMyBusiness page.

Automation isn’t always necessary in the beginning. Foundational pieces can bring in new business as well. Once a company knows who they are and the audience they’re speaking to, they can begin thinking about automating this to do as much as possible with the dollars they have.

Marketing isn’t something you do once and then forget. It’s also not cookie-cutter. Your branding and positioning strategies depend on who you are and your market. Something that works for a business in Florida won’t work for a business that’s in Nebraska.

Property management marketing is a time and financial commitment. Make sure you have the budget to invest long-term instead of starting something and then ending it after a few months. More established businesses understand that better than companies that are brand new and want to hit the ground running.

There is a marketing mindset. If you think you can do marketing for three or six months and that’s all, Fourandhalf will often recommend waiting until you can afford a real commitment. It takes some time for you to reap the benefits of your marketing plans. You can have the best message in the world but if it hits your perfect client at the wrong time, they won’t buy. You cannot think short-term when it comes to marketing because your expectations won’t meet reality.

Sales Cycles and Property Management Marketing The length of a sales cycle really does vary. Lead Simple runs some great reports and one of the metrics is the sales cycle. It’s hard to track when an owner first saw the direct mail you sent out, but understanding your sales cycle has a big impact on marketing results. If your sales cycle is 90 days, you won’t know for 3 months if your marketing is working. It’s a grind and it takes time.

This is even harder in property owner marketing. There isn’t a large pool of data to pull from, so a 90-day cycle is the earliest you’ll see any results. It could be six months or a year, and that’s hard to wait for. It’s why Fourandhalf tracks what’s working in different areas and for different clients.

Outsourcing your marketing is often more effective because experts can go through the analytics with a comb. If your website is getting high traffic numbers, that’s great. But, if owners looking for property managers only make up five percent of that traffic, you need to make an adjustment. You don’t want to attract tenant leads when you’re looking for owners.

Marketing Success Stories: Real Estate Gladiators Real Estate Gladiators is a Fourandhalf client with the correct mindset in terms of thinking about marketing as a holistic thing that’s sustaining and not temporary.

They doubled their portfolio after a one-year marketing strategy. Tracy and Katherine took the advice they received and they were engaged throughout the process. But they didn’t stop at marketing. They also understood the value of a solid sales process.

Fourandhalf was helping with the marketing, and Real Estate Gladiators understood the importance of finding clients that fit. They also put processes into place so that when the leads came in, it was clear who on the team was accountable and who should follow up, and when. There was a smooth transition from the sales team to the operations team.

That seamless onboarding process helped to boost reviews because owners were impressed from start to finish. It fed back into the marketing organically. New business was created based on their great systems and processes as well as the marketing.

It’s hard to trust a company for over a year, but when the business doubles, you can’t really question the results. The lesson of Real Estate Gladiators is to trust the process.

Recently, they’ve been acquiring books of business for less because they know their numbers. If they want to buy a certain number of doors from another property management company, they can show the seller exactly how long it will take them to acquire an equal number of doors, and how much it will cost. That has inspired sellers to drop their prices dramatically.

They have a stellar reputation and Fourandhalf loves using them as an example because it demonstrates that marketing results reflect what you’re willing to put into it. This is a collaborative effort. You can’t throw money at a marketing plan and expect it to work.

If you’d like to talk about property management marketing, contact Fourandhalf. Your journey starts with an initial consultation that’s all about where your business is now, and where you want it to go.

The post Closing Marketing Gaps to Compete in the New Normal appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Establishing and tracking Key Performance Indicators, or KPIs, is the first step to using data to enable the growth and success of your property management business. If you aren’t utilizing KPI’s on a regular basis, it’s hard to know how much you can afford to spend on marketing, and even harder to make informed decisions about how and when your business should grow.

This blog is divided into 5 parts. The first four parts will tackle a different property management KPI:

• Annual Contract Value,
• Customer Lifetime Value,
• Sales Closing Ratio, and
• Customer Acquisition Cost.

In the final part, we’ll take all of these KPI’s and demonstrate how you can use them to create your very own, data-informed, owner marketing budget.

Let’s start with your Annual Contract Value or ACV.

Annual Contract Value (ACV) for Property Managers Your Annual Contract Value is the average amount of money you’ll receive per unit or per door over a period of 12 months. It’s a good way to measure if your business really works.

To determine your ACV, you’ll need:

• The total revenue you’ve earned over the last 12 months, and
• The total # of doors under your management at the end of 12 months

For this example we’ll provide rough estimates of revenue from different markets, namely, the West Coast, the Midwest, and the Southeast. This is because where your property management company is based, and the type of market you’re in, can have a dramatic effect on your KPI’s, and therefore how much you should be spending on owner marketing.

For simplicity’s sake, the estimated revenue we use in the upcoming example is only considering the percentage you make from collected rents — we are not including revenue you might make from maintenance and other services you provide. We’ll also assume that each contract = 1 unit or 1 door.

Calculating ACV Examples In our West Coast example, let’s say your total revenue was 1.512 million and you had 350 doors at the end of 12 months. Divide your revenue by your doors, and you’ll get $4,320. This is your annual contract value per unit managed, or your ACV.

$1.512m / 350 doors = $4,320 (Annual Contract Value)

In our Southeast example, let’s say your revenue with 350 doors is $756,000. This would put your ACV at $2,160.

$756k / 350 doors = $2,160 (Annual Contract Value)

Finally, in our Midwest example, your revenue with 350 doors might be $604,800, making your ACV $1,728.

$604,800 / 350 doors = $1,728 (Annual Contract Value)

Why does this matter? Because knowing the value you can earn on each property can tell you exactly how much to spend on your owner marketing. We’ll get to that in Part 5.

For now, let’s turn our attention to Customer Lifetime Value, or CLV.

 Customer Lifetime Value (CLV) for Property Managers This KPI can provide insight about the health of your business. To find your Customer Lifetime Value (CLV, also known as CLTV, lifetime customer value (LCV) or lifetime value (LTV), take your average annual contract value (ACV) and multiply it by the average number of months your owners stay with you.

Figuring out how long your owners remain with you can be tricky. If you’ve been in business for 5+ years, you may be able to look back at your history with owner clients to find the average number of years they’ve stayed as your client. However, if you’re a younger company, it may be more useful to use a number like 42 months (three and a half years).

Here’s an example you can follow to calculate your own CLV:

Calculating CLV Example (West Coast): 1. Gather the data. You will need: * Time Period: 12 months * Your ACV: $4,320 * Average # of months your owners stay with you: 42 2. DIVIDE: * $4,320 (ACV) / 12 months = $360 (Average Monthly Contract Value) 3. MULTIPLY: * $360 (AMCV) x 42 (ave. # of months owner stay with you) = $15,120 (CLV)

Knowing this is the amount of money that’s left on the table when a lead falls out of your sales funnel can certainly change the optics through which you view your business, doesn’t it?

If doing this work has you scratching your head, or has left you with more questions than answers, don’t hesitate to give us a call at Fourandhalf. We’re more than happy to help you understand your company’s data in order to help you propel your growth.

Alright. Ready to learn the next two KPI’s vital to growing your property management business?

In the first part of our series, we talked about two key KPI’s for property managers: Annual Contract Value and Customer Lifetime Value. With these two “big picture” KPI’s under our belt, we’ll move on to Sales Closing Ratio.

 Sales Closing Ratio (SCR) for Property Managers Your Sales Closing Ratio (SCR) is the number of management contracts signed compared to the number of owner leads you get from various sources. This KPI is important because it can provide you insights on the functionality of your sales funnel, without you trying to guess whether your sales process is working or not.

To calculate your SCR you’ll need:

• The number of management contracts you signed last fiscal year, and
• The number of owner leads you collected last fiscal year.

This brings us to an important question: What do you count as an owner lead? Depending on how you answer this question, your results will vary. We have a whole episode on The Property Management Show Podcast that explores the definition of an owner lead for property managers. Click the link to check it out.

For our purposes, we’ll define an owner lead as anyone you have contact information for that has expressed an interest in your property management services.

Using this definition, let’s say you signed 35 contracts and collected 120 owner leads last fiscal year. Divide your contracts by your owner leads and then multiply this by 100 to get your SCR percentage. For this example, that comes out to be 29%.

Calculating SCR Example: 1. Gather the data. You’ll need: * Time Period: Last Fiscal Year * Total # of Contracts Signed Last Fiscal Year: 35 * # of Owner Leads from Last Fiscal Year: 120 2. DIVIDE: * 35 (# of contracts) / 120 (# of owner leads) = 0.29 3. MULTIPLY to get your SCR percentage: * 0.29 x 100 = 29%

There is no “perfect” sales closing ratio, since every property management business is different. In general if your closing ratio is below 50%, we recommend keeping a close eye on your sales and marketing processes for opportunities to increase your SCR.

So now, your property management KPI toolbox includes: Annual Contract Value, Lifetime Customer Value, and Sales Closing Ratio.

But how much should you spend to acquire a new owner? Is it half your CLV? A third? A quarter? How much are you spending now?

To answer these questions, you’ll need to know your Customer Acquisition Cost.

 Customer Acquisition Cost (CAC) for Property Managers So far in our Property Management KPI series, we’ve talked about Annual Contract Value, Customer Lifetime Value and Sales Closing Ratio. Today, we’ll cover Customer Acquisition Cost.

Customer Acquisition Cost, or CAC, is the backbone of every property management marketing campaign because it tells you what you’re actually paying, on average, per new client. You can calculate this by door or by owner, but we recommend running both metrics. That way, if you increase your average number of doors per owner, you can earn more revenue from each customer.

To calculate your CAC you’ll need:

• Your annual sales expenses,
• Your annual marketing expenses, and
• The number of owners you brought on over the last 12 months

Your sales and marketing expenses should include the salaries of your sales and marketing team, if you have them. Having those staff is a critical part of acquiring customers, so you need to add those numbers in when calculating your Customer Acquisition Cost.

Your CAC will vary widely depending on your market. Let’s break it down by our three example regions again.

Calculating Property Management CAC by Region For our West coast example, let’s say you employ one salesperson, and you pay them $60,000/year. We’ll use that number as your sales expenses. For marketing, let’s assume you’ve got a package with Fourandhalf, as well as a budget for Google Ads. That costs you about $5,000/month, which means your annual marketing expenses are $60,000.

Let’s say you brought on 35 new owners last year. To calculate your CAC, add your sales and marketing expenses, and divide the total by the number of new owners acquired in the last year. This means your CAC will be about $3,429.

If that number looks a bit scary, don’t forget that the CLV of that owner is $15,120! An easy way to benchmark your CAC is to determine its ratio to your CLV. According to Klipfolio, DemandJump, and other sources we found, you should be looking for a 3:1 ratio between your CLV and your CAC. In our West Coast example, the ratio is closer to 4:1, which isn’t too bad, but it indicates you could be spending more on owner marketing to acquire your customers.

Calculating CAC (by owner) West Coast Example:

1. Gather the data.
   • Time Period: 12 months
   • Annual Sales Expenses: $60,000
   • Annual Marketing Expenses: $60,000
   • # of Owners Brought on in the last 12 months: 35
2. ADD:
   • $60,000 (Annual Sales Expenses) + $60,000 (Annual Marketing Expenses) = $120,000
3. DIVIDE:
   • $120,000 (Total Sales + Marketing) / 35 (# of owners brought on) = about $3,429 (CAC)

Now let’s take a look at what the CAC might be for the Midwest and the Southeast:

For our Southeast example, let’s say your Salesperson makes $40,000/year, and your marketing expenses are about $30,000 – enough for Fourandhalf’s Scale marketing package as well as a decent Google Ads budget. Add those two numbers together, and divide by the 35 doors you acquired last year, and that’ll give you a CAC of $2,000. With a CLV of $7,560, your CLV to CAC ratio is about 3:1.

In our Midwest example, let’s say your Salesperson makes $30,000/year and your marketing expenses are $25,000 — still plenty of money for Fourandhalf’s basic Traction package and a decent Google Ads budget. Just like before, add these numbers together and divide by your annual door growth of 35, and you’ll get your CAC of $1,571. With a CLV of $6,048, your CLV to CAC ratio is about 3:1 – just where you want it.

Remember that these are simplified examples intended to provide you with the tools to start thinking about your own KPI’s, and not meant to be a strict and perfect set of rules. There are a wide variety of additional factors you will need to weigh in — for example, revenue you make from other non-rent sources, marketing you do to attract tenants and not owners, etc. We hope these guidelines can serve as a launch pad for you to better understand your business.

With these four KPI’s under your belt, you’re ready to bring everything together.

Using KPI’s to Determine Your Owner Marketing Budget For our final part of our Property Management KPI series, we’ll share how you can use KPI’s to determine an appropriate owner marketing budget for your company.

Please note that the examples provided here are intentionally simplified due to the fact that every company has unique contributing factors influencing how their owner marketing budget will be built and operated. For a fully comprehensive conversation about owner marketing budgets, please call us at Fourandhalf.

To find your owner marketing budget, work backward from how we found your CAC. Multiply your Customer Acquisition Cost by your door growth goal — the number of doors you’d like to grow by in the next year. This will give you your Owner Marketing and Sales Budget. Simply subtract your Sales Budget from this number, and voila! You have your very own owner marketing budget.

Initially, this might seem like a big number, especially if this is the first time you’ve built a marketing budget specifically focused on acquiring owners. However, it’s important to compare this number to your Annual Contract Value and your Customer Lifetime Value to have a better understanding of what you’re receiving by investing in owner marketing.

Let’s take a look at our West coast example: Our West coast CAC from our previous video was $3,429. Let’s say you want to grow by 40 doors. Multiply those together to get your sales and owner marketing budget – $137,160. If your Sales expenses have changed since last year, make the necessary adjustment, but for our purposes we will assume your Sales costs are the same: $60,000. Subtract that, and your new owner marketing budget is $77,160.

Calculating Owner Marketing Budget West Coast Example:

1. Gather the data.

2. • Customer Acquisition Cost: $3,429
   • # of doors you’d like to grow by: 40
3. • Your Sales Expenses Budget: $60,000
4. Multiply.
   • $3,429 (CAC) x 40 doors = $137,160 (Owner Marketing & Sales Budget)
5. Subtract.
   • $137,160 (Owner Marketing & Sales Budget) – $60,000 (Sales Budget) = $77,160 (Owner Marketing Budget)

Our Southeast CAC was $2000. With a 40 door growth goal, that gives us a sales and marketing budget of $80,000. Subtract your Sales budget of $40,000, and your new owner marketing budget is $40,000.

And finally, in our Midwest example, your CAC of $1,571 multiplied by 40 doors is $62,840. Subtract your $30,000 Sales budget, and you have your new owner marketing budget of $32,840.

Now that you have an owner marketing budget, you can really start to shape how you want to spend your owner marketing dollars. A strong, holistic marketing strategy will avoid the pitfalls of putting all your eggs in one basket. This means you are investing your owner marketing budget in both inbound strategies (blogs, videos, social media, etc) AND outbound strategies (Google Ads, Remarketing Campaigns, etc).

To get expert advice on what owner marketing services you should be investing in, contact Fourandhalf. We’ve been assisting property managers like you since 2012, and we’d be thrilled to help you achieve your growth goals.

Subscribe to our newsletter to stay up-to-date on our latest blog posts.

Contact us at Fourandhalf for all of your questions about KPI’s & property management marketing.

The post Property Management KPI’s appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Summary: The Property Management Show is back this week to continue our conversation with Ray Hespen of Property Meld. In the last episode, we talked about property management maintenance trends and increasing costs. Today, we’re mostly talking about how property managers can position themselves to have effective conversations with owners about maintenance.

Key Takeaways: * Talk to owners openly about the fact that maintenance costs are rising. Explain that it’s happening everywhere – not just to them. Communicate. Educate. Don’t leave them to draw their own conclusions. * It’s costly to lose owners, and to keep them your message needs to be that you can help deliver better ROI, even with the property management fee. * Owner engagement has to move beyond a simple monthly accounting statement. It needs to be a live updated and ongoing conversation. * You can prioritize keeping costs down for owners while still making money on maintenance.

Property Management Messaging We learned last week that a 10 percent increase in costs is likely to drive an owner away from property management in an effort to lower costs by doing it on their own.

Like all of us, most owners don’t like to admit when they’re wrong. So, even if they begin managing on their own and realize they can’t keep costs down, they’re unlikely to return to their property managers.

The property management industry needs to pivot when it comes to messaging.

Stop talking about obvious benefits to property management – like peace of mind.

Instead, the constant message needs to be that you can deliver better ROI by managing lower maintenance costs.

Talk to owners openly about the fact that maintenance costs are rising. Explain that it’s happening everywhere – not just to them. Talk about the things you can do that they can’t:

• Increased buying power
• Access to vendors they can’t access on their own
• Long term relationships with vendors and contractors and suppliers.
• Internal maintenance teams

You have to share the right message and you have to make sure your owners believe what you’re telling them. This is all about perception.

Your owners need to believe that even though prices are higher, you’re still doing it for less than they could do it. Communicate. Educate. Don’t leave them to draw their own conclusions.

Stepping Up Your Owner Engagement It’s costly to lose owners, and to keep them your message needs to be that you can help deliver better ROI, even with the property management fee.

The only reason anyone wants to manage their own property is because they believe they can do it cheaper than a property manager. Your job is to change this perception. It has to be the conversation you have with existing owners and new owners.

Selling new owners on peace of mind isn’t wrong. It’s true that you deliver peace of mind and protect their investments. But, you have to tell them what else you do. ROI is what matters, and right now you’re losing clients and not getting new clients because of maintenance costs.

You have to address that.

There’s a huge landlord market in the U.S.

Check out these statistics from Ray:

• 8 million rental homes are professionally managed in the U.S.

• 23 million rental homes are self-managed by landlords.

Retaining clients and acquiring new clients line up together behind messaging. If the industry can show landlords that property managers maintain homes at a cost that’s better than what they’re doing, there won’t be a self-managing landlord left in the U.S.

Messaging includes knowing your audience and their hot button issues.

Throughout 2020, property managers had an opportunity to market themselves as experts in the complex legal situation that the pandemic brought about. Landlords didn’t know if they could collect rent or send a notice, and property managers were relied upon to take care of that for their owners.

Now, we’re coming out of that. Courts are opening and evictions are happening. Rent is more consistent.

Maintenance costs are now front and center. It’s a new fear that property managers have to be prepared to talk about.

How Property Managers Can Position Themselves Hopefully, you caught the podcast with the Real Estate Gladiators. Tracy Minick and Katherine Swanberg talked about how they constantly communicated with their owners everything that they were doing for them, even during an eviction moratorium and a difficult period in rent collection.

Talk to your owners about what you’re doing to save them money – even while costs are going up.

Ray has some additional recommendations on how property management companies need to position themselves right now. Here are his tactical suggestions:

• Explain what’s happening – maintenance costs are rising, and here’s why. Provide education.
• Talk about what you’re doing about it.
• Solicit preventative programs.
• Make this an active conversation at least once a month.

The owner engagement has to move beyond a simple accounting statement every month. It needs to be a live update and an ongoing conversation.

Not all your property owners are going to complain about rising costs. They’re just going to leave without any explanation. Get ahead of these conversations.

Owners need to see you doing things they wouldn’t have done themselves.

A good example is preventative maintenance.

The team at Property Meld is encouraging their customers to solicit for owner approvals to adopt preventative programs.

Maybe you can offer an annual HVAC inspection in March for $99. Explain why that expense is worth it: because the average air conditioning call in the summer is a $500 repair and you want to prevent that expense. This is part of how you keep costs down.

Owners wouldn’t do this on their own. It’s how you show them that you care about their money.

Work-From-Home Tenants and Maintenance Costs With tenants still spending more time at home, appliances are being used more and wear and tear is happening a lot faster. Should owners invest in high-end materials and more expensive systems to avoid frequent replacements and repair costs?

It’s not much of a trend yet, especially among independent landlords. Institutional investors have access to the data that tells them exactly which model of which dishwasher will save them the most money in a rental home. Owners who are worried about costs can’t make it over this hurdle without the same data.

One thing a property management company might consider doing is buying appliances and items in bulk.

For example, if you can buy a stockpile of toilets, you’ll save 30 or 40 percent on what you’d pay to replace toilets one by one. Use your buying power.

Making Money on Maintenance You can prioritize keeping costs down for owners while still making money on maintenance.

Maintenance is a huge cost center – a $75 billion industry.

Property managers who run high-performing maintenance teams make the most money in property management. Property Meld recommends using technician utilization rates as a KPI. If you want to be profitable with in-house maintenance, you need to keep your people busy doing work. Track it.

You don’t want to bring maintenance in-house and hire an arbitrary six people just because you expect that’s how many employees you’ll need. Start incrementally. Hire a handyman. When they’re at an 85 percent utilization rate, hire someone else.

Remember that you can always backfill with outside vendors. A hybrid system of in-house contractors and outside vendors usually works best for most management companies.

Messaging is tactical – that’s the message of today’s podcast. Make sure you’re positioning yourself so that owners know you’re getting them the best returns.

Check out the information Property Meld has on their website and contact us at Fourandhalf if you have any questions.

The post How Remote Work Is Impacting Property Management Maintenance | Part 2 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Summary: It’s been a year since we had Ray Hespen, co-founder and CEO of PropertyMeld on The Property Management Show podcast to talk about COVID-19 and its impact on property management maintenance.

The last time he was with us, we discussed ghost maintenance – the idea that all these tenants were at home with the pandemic and no one wanted maintenance technicians or vendors in their property. So the theory was that a backlog of unfulfilled maintenance would develop in the early days of the pandemic.

We have him back today to find out if that happened.

Key Takeaways: * As predicted, maintenance requests in 2020 dropped off in March and April, and then saw a huge uptick beginning in June. * Maintenance requests in 2021 have stabilized, although Ray has seen a rise in maintenance cost and a rise in the number of requests, which he believes is a result of more folks working remotely from home. * The rise in maintenance costs is due, in part, to the disruption of the supply chain and the fact that vendors and technicians want to be paid more.

Ghost Maintenance and Rental Properties As expected, there was a huge drop off in service requests in the beginning of the pandemic. Then, as vendors and maintenance companies began putting safety protocols in place, the repairs requests began to pick up again.

The 2020 year was not business as usual in property management.

Ray was on the show last year because he saw a significant reduction in the volume of maintenance requests. Requests began to drop off in March and then in April they were at a complete standstill. In May, people began to feel better about reporting those critical repairs and allowing maintenance teams into their homes. By June, there had been a large backlog created, but there was an increase in work that was being completed.

Through the rest of the year, service professionals were working through that backlog. An equilibrium was reached around October, and more maintenance issues were being generated.

The power of data allowed Ray and his team to make these assumptions, which turned out to be completely accurate.

Property Managers and COVID Maintenance Safety protocols for vendors and technicians were a big part of managing maintenance needs during the worst of the pandemic. Property managers were also proactive about soliciting their tenants for any known maintenance needs.

The concept was that even if the tenants didn’t want someone in the property to fix the problem, property managers still wanted to know there was a problem. The goal was to help tenants feel comfortable submitting the requests.

This was helpful in managing the backlog because once things opened up again, they could prioritize the work needed.

Soliciting maintenance request requires a balance. Property managers don’t want to generate extra costs or invite unnecessary maintenance work for their owners. However, maintaining the property is important, so focusing on those preventative issues and making sure small problems can’t become large problems is important. Property managers understood this. Replacing a leaking toilet can cost thousands of dollars while fixing a gasket is relatively cheap. Property managers serve their owners by paying attention to those things that protect them against larger costs.

Shifting from 2020 Maintenance Trends to 2021 Things are stabilizing in 2021 with maintenance requests. Vaccinations are available and infection rates are not as high. Tenants are generally more open to having people in their homes. The changes that were made in 2020 are still in place. Vendors are mindful of safety protocols and property managers are still soliciting if they’re worried a tenant isn’t reporting necessary maintenance.

Comfort levels have changed, and residents are communicating with their property managers and their maintenance providers about scheduling. It’s systematic and these things will likely stay in place even post-pandemic.

Remote Work and Rental Property Maintenance The data shows a couple of interesting points.

First, there is a slight uptick in maintenance and service requests overall. These increased maintenance requests are consistent with a culture that’s increasingly working remotely. Residents are in their homes more, so there are going to be more toilet flushes and door handles turned. Statistics show a six percent year over year increase, which is statistically significant.

Second, the invoice costing is up. Rising costs are a big issue for property managers and their clients.

Invoices for maintenance are around 18 percent higher. This is statistically significant and it’s also something property managers need to pay attention to.

Why?

Because an owner will leave a property management company if there’s a perception that maintenance costs are too high. Any property manager will understand that.

Studies show that if annual maintenance costs exceed 10 percent of the rent roll, the likelihood of customer churn goes up significantly.

Invoices that have increased by 18 percent will lead owners to believe they can do it cheaper. They probably can’t – but they don’t know that yet. This is what has property managers most worried.

Explaining the Higher Maintenance Costs Lumber prices are maybe 300 percent higher right now than they were 12 months ago. Parts costs more. There have been serious disruptions to the supply chain as well that are driving prices higher and creating a spike in invoice costs.

We’re also seeing vendors and technicians who want to be paid more.

These things have created maintenance costs that are 15 to 22 percent higher than they were a year ago.

As an industry, we should be prepared for these higher prices to stay.

The rental industry is nuts right now. Buying rental units as an individual owner right now is nearly impossible. There’s a ton of institutional money coming into markets all across the country. They’re paying for properties in cash without actually seeing them or requiring an inspection.

There’s also a build-to-rent movement that’s gaining steam. They need plumbers and electricians and construction workers, so the competition for labor is also going to keep prices higher.

Property managers cannot just pass these costs off to the owner because they’ll risk losing business. It’s a big deal, and something we all have to be prepared to deal with going forward.

Maybe a blended maintenance team provides property managers with the lowest cost offering. There are constraints, and smaller companies can’t afford to keep a maintenance professional on staff full-time. Driving down the costs of delivered services will be difficult for property managers who provide value to their owners.

We’ve got more to talk about on this subject, so join us for Part II next time. Before then, always feel free to contact us at Fourandhalf with any questions you might have about The Property Management Show podcast or anything pertaining to property management marketing.

The post How Remote Work Is Impacting Property Management Maintenance | Part 1 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Summary: Ethan Lieber from Latchel is our guest on The Property Management Show, and in this podcast we’ll talk about these behemoth venture-backed companies that seem to be entering the property management space in record numbers right now. We want to know why they’re here, what motivates them, and how smaller property management companies can compete.

Key Takeaways: * Venture Capital companies are interested in the business opportunities available in the property management industry, but the industry is difficult to dominate because of its fragmentation. * Local property management companies have a competitive advantage over VC-backed companies because of the trust they hold with their community. * Ethan believes that only three out of ten self-managing landlords are ever going to become your customer. Understanding this concept can help you narrow your focus when it comes to going after leads.

Why Is Property Management Attractive to Venture Capital Companies? At PM Grow 2021, Ethan delivered a fireside chat on the topic of competing with these VC companies. Before we can get into strategies for competing, a lot of property managers may be wondering why. Why do these VC companies want to be in property management at all?

The obvious answer is this: money.

There’s a lot of money in property management. It’s a huge business opportunity. Traditional management services generate hundreds of billions of dollars. When you add in the ancillary services companies can provide, we’re looking at trillions of dollars.

Typically, local businesses have captured most of the market share.

Look at a national scale, and you’ll see where the venture-backed companies began in property management. They funded industry-specific endeavors like Appfolio and Yardley and Buildium and similar platforms. The entrepreneurs that backed those initiatives now want some of the market share that property management companies themselves have been earning.

Here’s an interesting statistic: the top 15 management companies only own 7 percent of multi-family properties in the U.S. No other industry behaves like this. When you take a look at retail, huge companies like Walmart and Amazon can come in and eat everything up. It’s easy. But, property management is one of the remaining industries where it’s hard for VC companies to dominate. That’s because the business is so fragmented.

Winner-Take-All Thinking Isn’t Part of Property Management Generally, venture-backed companies have been drawn to industries with a winner-takes-all playing field. If you figure out what an industry needs, you can dominate the market. Microsoft figured that out early on and the government had to force them to break up and allow competitors.

A lot of VC companies have the goal of getting so big you’re a monopoly. But you don’t want to look like a monopoly because you don’t want to attract the government’s attention.

With property management, it’s hard to see a situation where someone is a monopoly and a winner that takes all. Zillow is never going to become a monopoly where there’s no room for anyone else, for example. Property management is one of the few industries that this will not happen.

The VC companies want in because the industry is so big. They don’t need to take it all. They know that just a fraction of the market will make them a lot of money. So, they want to eat up a lot of the market share, but local property management companies have a lot of competitive advantages. You’re probably not even competing for the same type of business as these VC companies.

Property Management and Industry Disruption Another thing that VC companies look for is this – how ripe is an industry for disruption? Property management is very much a legacy industry. Historically, it’s been very inefficient. There’s a low use of technology and automation and AI. So it creates a space for companies to come in and leverage their technology and software platforms. Meaningfully higher margins are earned.

When you’re competitive, your business is more sustainable and fast growing, even if your acquisition cost is higher than your competitors. You may spend more money to get your next customer, but that customer is also going to be far more profitable. That creates a new playing field in property management.

If your margin is 30 or 40 percent while everyone else is at 6 percent because you can acquire customers at five times the cost they do, you’re going to grow faster.

Does it work for VC companies?

The challenge in property management is that acquisition costs are much higher for national companies. When you want to scale quickly, you have to be willing to pay that higher acquisition cost. If you’re spending $4,000 to acquire one landlord, you need to be sure about your ROI. The payback period will be more than a year. This means client retention is more important than ever. Losing money in the first year is a given, but if you hold that client for six years or more, you’re going to see a massive lifetime value.

Greg Crabtree is an excellent resource for getting a better understanding of your property management costs & cash flow. Check out our episode with him on “Managing Hits to Your Property Management Cashflow During the COVID-19 Pandemic,” as well as his presentation at PM Grow 2021.

VC Companies and Management Company Acquisition Acquiring one door at a time is expensive. So, these VC companies have calculated their growth and decided to acquire property management companies instead of doors.

They’re paying a premium to acquire an entire company, but they’re making five times the profits that the local company was earning. The payback period is often a more efficient way to grow.

To make this effective, a lot of capital is needed. You need cash to buy up management companies. But, if it’s done in the right way, big profits are available. Only VC companies have the capital to compete this way.

The good news is this: local property management companies aren’t competing this way. You don’t want to buy management companies. You want to grow your business by acquiring additional owners, units, and doors.

Trends and Tricks for Local Property Management Companies One trend we are seeing is that smaller property management companies are pooling their resources and consolidating. They believe they need to be bigger to compete.

It looks like a typical David vs. Goliath story. The key factor here is that local property managers are nimble. You also have local knowledge that cannot be replicated.

Some companies will want to consolidate or build some co-branding opportunities. You can join a franchise. So you’ll maybe struggle to maintain operations, but you’ll have the name recognition of the franchise. If you only manage five doors, people aren’t going to care (or even know) because they’ll see that recognizable name with your property management company.

A healthy market is not a monopoly market.

Here are some of the things a local property management company has working in its favor.

• You’ve earned customer trust already.
• People are investing in homes from out-of-state more than ever in this new economy. That means they’re more likely to look for local experts in the market where their investment property is located.
• You can improve your operations with a playbook on how to automate a lot of what you do.
• You can capitalize on collaboration with other property management companies and real estate professionals in your area.

Automation is really your secret weapon. Find better ways to operate because ultimately, it may be the only way you can compete.

Using Tech & Community Trust to Stay Independent Smaller companies who want to stay independent can use technology to intentionally create efficient margins. Technology leads to cash flow. Then, you’ll be able to invest the cash or capital you earned to generate more income and grow the way you want to grow.

Here’s the best opportunity you have to compete with VC companies:

You have the opportunity to become a pillar in your community.

Maybe you belong to NARPM and other professional organizations. Maybe you’re in a leadership role in the local Chamber of Commerce. This is going to provide a better reputation than anyone in a VC-backed management company that works in your market but isn’t really in your market.

There might be a huge competitor buying companies in your area. But, they could be so far separated or removed from the community itself that they don’t know the trends and the way of life. You, however, know the business owners and the residents and you can build a sense of community that actually goes beyond the work you do.

Property management is still a relationship business, and it’s impossible for a VC company to replicate this.

Customer Service and Targeting the Right Landlords At Latchel, Ethan says customer obsession is an important part of the way they do business. You’re building a service, which means you have to respond to what the customer wants. It’s an effort, but starting backwards can help you define your customer. A lot of people miss this.

Here’s an idea that Ethan has been working with lately, and he knows that some people may find it controversial.

There’s a specific psychographic when it comes to the business you target.

Out of 10 self-managing landlords, only three of them will ever be a customer.

Here’s what he means:

When you’re trying to attract new owners, you’re advertising to all 10 of those landlords, but only three are going to be receptive to your marketing. Those three fall into one of these categories:

• The accidental landlord who is not experienced and eager to work with a property manager.
• Landlords who are unhappy with their current property manager and want to look elsewhere.
• Investors who just bought a property in the area and they don’t know the market.

Institutional investors will also be looking for management services, but a lot of VC companies focus on institutional investors, so maybe you won’t want to compete for that business.

Work backwards. What does each of these customers want? The value you offer is that they don’t have to collect rent. They don’t have to spend a single second thinking about how their property is being leased. That’s a higher value you’re providing, and you want to look for the landlord who wants to not think about their asset. (for more on this, check out our interview with Steve Crossland on The Practice of Property Management Profitability.)

Narrow Your Target, Improve Retention, and Compete With VC’s Most of you already know that the owners who think too much about their property are your worst customers. You want someone who trusts you to do it for them.

The owners you attract must match the way you operate. Otherwise, you turn them away.

Optimize your marketing and your services for those owners who are simply looking for peace of mind.

Retention is insanely important when it comes to growth and staying competitive. Keep your tenants and keep your owners. There’s less operational work. If you cannot retain your property owners, you’re probably not doing things right. Everyone has turnover from time to time, but if you’re spending more money to bring in new clients and then you’re losing them, it’s going to be difficult to stay competitive.

VC companies have to deal with turnover and lost clients more than local property management companies. You can plug those leaks faster, and you can also be there to pick up the customers VC companies are losing because you provide a different experience.

There’s so much more to talk about surrounding this issue, and we’d be happy to welcome you into the conversation. Contact us at Fourandhalf for all of your questions around property management marketing.

The post How to Compete with Venture-Backed Property Management Companies appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Our “Spring Sale for Scale!” has officially LAUNCHED!

Don’t wait – this deal is only available through May 31st (Memorial Day).

No catch, no hidden fees, no surprises: just our best-selling marketing package made more accessible to you in these difficult times.

Sign up for our Spring Sale for Scale by filling out the form below, or learn more and see our other packages, here.

Want to hear how our services have “scaled up” our clients? Listen to Katherine and Tracy from Real Estate Gladiators explain how Fourandhalf’s holistic marketing approach has taken them to the next level:

Our Scale Package is specially designed to “scale” your property management business and take you to the next level. We’ve taken the stress out of deciding what marketing services to focus on, and curated a holistic selection of services that will move you out of your piecemeal marketing strategy and into the professional market.

The Scale Package includes:

• A professional, conversion-driven property management website
• 2 text blogs every month
• Continuous website improvement
• Reputation management coaching
• Reputation.com subscription
• Weekly social media posting
• Monthly review requests

In short, everything you need to launch into Spring with your best foot forward!

Review our pricing page to learn more about our Scale Package, add-on services, and custom package options.

If you have any questions, don’t hesitate to set up a chat with Logan.

Warmly,

The Team at Fourandhalf

Get our Spring Sale for Scale deal: Fill out the form below to get our Spring Sale for Scale deal.

Package Inquiry Form

• First Name*
• Last Name*
• Company Name
• Email*
• Phone*
• What is the Best Time to contact you?
• Which package are you most interested in?*Select the package you are most interested inTraction PackageScale PackageElevate PackageCustom Package
• Are you a current client of Enterprise Bank & Trust (formerly Seacoast Commerce Bank)?*Choose yes or no - Are you a client of this bank?YesNoNot Sure
• Have you worked with RentScale?Choose yes or no - Have you worked with RentScale?YesNoNot Sure
• Comments or Questions
• HiddenDate

MM slash DD slash YYYY

The post Our “Spring Sale for Scale!” has officially LAUNCHED! appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: You may recognize today’s guest on The Property Management Show podcast. Steve Crossland is joining us, and he gave a speech at PM Grow Summit 2021 about the ABCs of property selection and portfolio selection. (by the way – if you’d like to watch that talk, and the rest of the recorded content from PM Grow 2021, head over to 2021.pmgrowsummit.com)

Today, he’s talking about the practices, mindsets, and habits that property managers should have to ensure their business is profitable.

Key Takeaways: * Property management profitability is a mindset and a practice, you can cultivate as a property manager * Profitability practice starts with knowing your Financial Freedom Finish Line * Stick to your practice, trust in the strategy you’ve laid out to get to your goal, and live within your means as your wealth grows over time * Steve’s profitability practice is to limit owner decision-making in order to provide better service to his tenants

Property Management Profitability as a Practice Property management profitability is more of a practice than an end result. It’s similar to nutrition in that it has to be part of your day-to-day lifestyle and mindset. We asked Steve to speak about what profitability as a practice means for the property management industry.

It starts with a personal financial goal.

Ask yourself where you want to be in five years, 10 years, or 20 years. At what point do you want to cross what Steve calls the Financial Freedom Finish Line?

The Financial Freedom Finish Line is the point at which you have enough assets and money and rental income to quit working forever and not run out of money. It’s the point where your wealth produces the income you need to live.

Everyone should start with that.

You’re starting with the end in mind, and that’s often a big jump for people.

But, if you’re 25 years old and you know you want to retire at the age of 55, with a net worth of $3 million in today’s dollars, you’ll have to do some math. Compute out into time with inflation what that number needs to be when you’re 55 (or whatever age you pick). Work backwards to figure out how much you have today and how much you have to add each year so that when you do reach the finish line, you’ve done what you set out to do on your financial journey.

That’s where you start.

For Steve, the practice of building wealth is just doing some numbers. It doesn’t have to be complicated. In fact, he first wrote those numbers out for himself on the back of a napkin.

This strategy has informed his property management business. It’s why he never wanted to be a 2,000-door company or a 1,000-door company or even a 500-door company. At 100 doors, he got what he needed to be on that path he had set for himself.

If you’re feeling a financial bottleneck that’s preventing your company from becoming profitable, check out our episode with Daniel Craig about Bottlenecks to Property Management Profitability.

Establishing an Ideology of Profitability Steve remembers listening to a finance guy on AM radio every Saturday when he was younger and driving around, and he absorbed a lot of what the expert said. Steve doesn’t remember who it was, but there was one thing in particular that stuck out. The finance expert said never borrow money to purchase a depreciating asset.

That idea essentially means: it’s a bad idea to borrow money for things like furniture and cars. If you can help it, those things should be paid for in cash. It’s okay to borrow money for things that increase in value, however, namely real estate.

Steve moved forward with this philosophy and never bought a car that wasn’t at least 10 years old and affordable with a cash payment. If you adopt a belief or a principle that informs how you’re going to handle your money, and then you start doing it without breaking your own rules, you’re going to create an ideology for yourself that helps you achieve your property management profitability goals.

A big mistake Steve sees a lot in real estate is people increasing their lifestyle as they increase their income. He never did that. His happiness came from seeing the progress of the wealth he was building over time. You have to be patient because the growth is slow.

Steven never questioned that he could be prosperous and happy. Financial independence simply required a roadmap and a commitment to the property management profitability practice he had laid out for himself.

You can compare this to eating right. There’s no magic bullet or big secret. You know what you have to do to be healthy. The problem is in the execution.

The Gap Between the Practice and the Action When it comes to making your property management business profitable, sometimes you have to reconcile what you know you should do (the practice) with what you’re actually doing (the action).

That can be a struggle. We know what’s good for us, but it’s easy to sabotage ourselves by acting differently. How can property managers work through that?

Steve says we all have to look for whatever it is that lights our fire and motivates us. What gives you those small moments of delight?

It’s going to be different for everyone, but Steve finds delight in simplicity. He references a TedTalk that’s called The Paradox of Choice. The takeaway of that talk is that the more choices we have in life, the less happy we are.

Here’s how that translates into real estate:

Austin, TX is a strong seller’s market, just like many cities across the country. If you list a house today for $695,000, there will likely be 20 to 40 offers on that house, and it will likely sell for $800,000 or more.

The buyer who gets that house will have paid more than it’s worth, but he or she will be a happier buyer than the one who bought a home below market in 2010 when the market was dead and there were hundreds of homes to choose from.

Why? Because when you have a lot of choices, you’re always not getting something.

A buyer with a lot of choices may be paying less, but by acquiring one choice, a lot of other choices are given up.

This may sound silly, but it has merit. Pay attention to what makes you happy and why.

Steve likes minimalism. He likes straight, uncomplicated decisions. He ran his property management business that way because it aligned with his happiness.

Since he only managed a certain kind of property in a certain kind of neighborhood, his tenants were fairly homogenous. Owners accepted that they had to be hands-off if they were going to work with him.

Simplicity. Personal happiness was transferred into business happiness.

Attracting Owners that Make You Happy Steve didn’t want to work with any owners who insisted on playing a major part in the decision-making and management of their properties. So, in order to attract owners that aligned with his property management profitability practice, he communicated his practice using stories that supported his values.

One of his clients was a young couple who were hoping to rent out the home they owned while they moved to Seattle. In Seattle, they planned to rent a home instead of buying one.

Steve asked them to think about what would happen if they were in their rental property and the heat went out. Would they want to wait five days to have that heat repaired while their property manager went back and forth with the property owner, collecting bids and getting permission to do the work? Or would they want the heat fixed right away?

They agreed that the heat should be fixed right away. Steve told them that’s the service he provides. This is a good example of how property managers can translate their profitability practice into collecting more of the types of owner clients they want.

When Steve came across owners who wanted to be involved and make even the smallest decisions, he wouldn’t take on the property. It was easy to say no. These types of owners didn’t fit with his profitability practice. There are other property managers who allow their owners to be more involved, and they’re better suited to owners who are looking for that.

The discipline (or the practice, if you will) was in describing the scenario so the owners understood why he worked the way he did. It allowed him to choose only the owners and properties that were aligned with that business model.

If you’d like to hear more about how to attract more of your ideal client, check out our blog on property management marketing ideas to get the right owner leads.

The Fear of Losing Owner Leads If you’re a property manager who is reading this, you may feel some anxiety about losing potential owners.

But, if you know your numbers and your Financial Freedom Finish Line, and you know how many doors you need to manage to produce the income you need to stay on track, you don’t have to feel desperate for another door. Keep yourself at the right cruising altitude, and there shouldn’t be any anxiety about not having enough doors.

There’s a drumbeat in the property management industry that’s focused on growing, growing, and growing some more. You should know how many properties you want to manage. If you’re short and you need to add more, then growth is important. But, decide what’s non-negotiable in your practice and stick to it. You can grow your income and your wealth without increasing the number of bad doors you’re managing.

Never show up feeling desperate to win the account. That’s when you start making concessions to your own belief system and practice. You take properties you know you shouldn’t take. You work with home warranties when you know that impedes your business. For Steve, home warranties are deal breakers and out of alignment with his property management profitability practice.

If you’re trying to grow, there has to be a rational reason for it. If you don’t know how many more doors you want, you simply know that you want more doors, you’re not going to have a very focused strategy for your property management business.

You need an end goal, otherwise your plan is incomplete.

Profitability as a Practice: Changing the Way You Do Business Are you a property manager who feels their business suffers from owner over-involvement?

Some people think that’s good service, but if you’ve trained and conditioned your owners to be in the loop on everything that happens, it can be too much information and result in poor service to your tenants. You’re creating more work for yourself.

If this feels true to your experience, the disadvantages are plain and clear. But there’s good news! You can adjust your current business practice with one letter. Send a letter to all your owners and say “Effective immediately, here’s how maintenance will be handled: For ordinary and expected repairs, there will be no notification or involvement, it will simply be taken care of. For larger and more expensive urgent repairs such as water heater replacements or air conditioning breakdowns, you’ll initiate what needs to be done immediately.” Let your owners know that you’ll communicate with them about the decisions you’re making, but there will no longer be any back and forth, in order to provide your tenants with the best possible service.

Send that letter out and hit the reset button.

Steve did this, sending that letter to 100 owners and none of them quit. It was, as he calls it, a big Nothing Burger.

Property managers often have a harder time with it than their owners. They’re scared, and that goes back to mindset. It’s easy to fall back into old patterns.

You have to practice doing the scary things.

The COVID pandemic creates an opportunity to make this change. People are really living in their homes like never before. They’re working from home and schooling kids from home. They really depend on the home to function and operate. That’s going to cause extra maintenance. Previously, they may have run the dishwasher twice a week. Now, with everyone home all day and no one going out to eat as much, the dishwasher might run twice a day. Even the thermostat is set differently.

For property managers, this means that a tenant who may have been okay with a three-day turnaround in the past might need a speedy fix otherwise it’s really a negative impact.

Service matters. It’s really important to give good service to your tenants. The most valuable asset you have in your rental property is a good landlord-tenant relationship. If you can get an owner to align with that, the owner will have no reason to be upset with your new way of working.

Re-Directing Owners to the Big Picture Re-directing owners to see the big picture can help you manage those conversations that might be difficult after a decision has been made that they weren’t expecting.

For example, you might have to replace an air conditioning unit for $6,800. That means the next month’s $1,800 in rent will be used to cover that invoice, and the owner will have to write a check for $5,000 to cover the balance.

Ouch.

But, always tell the owner the good news.

The good news is, since you sold that owner the property 10 years ago, it’s already doubled in value.

That gets the owner out of their scarcity mindset and shows them that their wealth is growing. It’s a big expense, but the property is doing well and money has already been earned.

This isn’t a deflection. It’s a method for keeping the owner focused on their own Financial Freedom Finish Line.

Owners who struggle with expenses haven’t been told the truth about what’s required in owning rental property.

Always ask a potential owner how they’re doing on money before you agree to manage their property. Ask if they have six months of rent sitting aside to cover vacancy. Find out if they have access to the cash they may need to make big repairs. If the owner doesn’t have the money that’s needed, start talking about other options. It might be better to sell the property.

You don’t want a client who is anxious about money.

It’s not serving an owner to promise that you’ll keep expenses down. There may be some very large expenses and if they don’t have the money to cover those, everyone is going to have a problem.

Keeping Your Property Management Profitability Practice on Track If you’re trying to eat better or exercise more, you likely have an app that you use to track your progress. Maybe you write down what you eat and how you move in a diary or a notebook.

There’s no such system when it comes to managing properties for profitability, but everything starts with clarity. You may be managing unprofitable properties because you have no way of looking at how unprofitable they actually are.

Here’s what Steve suggests:

Create a spreadsheet with all the doors you manage. Put in your revenue from each door and give it an effort score. Maybe the A units get a 1 and a B unit gets a 2 and a C unit is a 3.

You’ll easily be able to compare the amount of money you’re earning as it relates to the effort you’re making.

When Steve did this, he immediately dumped 100 doors. If you’re spending 80 percent of your effort managing doors that only earn 17 percent of your income, you’re not managing for profitability.

This may be a Day of Reckoning. Hold yourself accountable.

Keep track of your conversion rate on your leads as well. How many of the people you talk to are ready to hire a property manager? What percentage are you converting? If it’s not 70 percent, start figuring out why.

You can get yourself to your Financial Freedom Finish Line once you know what it is. Then, you can:

• Send a letter to your owners letting them know you’ll be managing with less input going forward.
• Put all your units in a spreadsheet and decide which are profitable and which are not.
• Stop managing the unprofitable units.

This is a reliable way to increase your income and decrease your effort.

Property management is a hard business but it’s a great business. If you’re sharpening your saw and reducing your effort while your income goes up and you know your targets and unit counts, you’ll be more confident in what you need to do each day.

Steve loves talking about this, so contact him if you have any questions about increasing your own profitability. If you need help with property management marketing, you can always contact us at Fourandhalf.

The post The Practice of Property Management Profitability appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: During this time of moratorium madness, it’s becoming more and more difficult to enforce leases and do your job as a property manager. Our guests, Tracy Minick and Katherine Swanberg from Real Estate Gladiators know your pain.

In this episode of The Property Management Show, we’ll discuss the way property management’s role has changed over the last year of this pandemic and how to navigate around ever-moving targets, laws, and expectations.

Key Takeaways: * Due to Federal and local eviction moratoriums put in place by the pandemic, large parts of property manager’s lease agreements are unenforceable. This has dramatically changed property manager’s job descriptions. * Property managers like the Real Estate Gladiators are communicating with owners and tenants more, assisting tenants with unemployment & helping tenants seek financial support so that they can afford to pay rent. * Property managers are more valuable to owners than ever. It’s vital that property managers communicate the way that their job has changed to their owners, and demonstrate the amount of work they’re doing to keep their owners compliant.

Property Management During Moratorium Madness The Real Estate Gladiators team has been fighting even harder for their owner clients than they ever did before. We asked Tracy and Katherine to talk about how they’re using this experience to showcase their true value as professional property managers, even though their hands are in many cases tied because of laws and moratoriums.

COVID Legislation and Eviction Moratoriums Current legislation is under consideration to extend the eviction moratorium and to implement other laws that will impact both tenants and owners. While Tracy and Katherine primarily manage homes in Snohomish County, Kings County, and Pierce County in Washington State, they’ve learned that anything done in Seattle usually spreads throughout the state. Often, it motivates other states across the country to enact similar laws.

The legislative session in Washington State will include a tremendous number of bills that will impact business owners and property managers and landlords in many different ways. We could see some huge changes coming.

It’s been almost a year since we began living with COVID. Moratoriums enforced on property managers and owners have required a pivot in the way everything is handled, from late fees to notices to evictions. Most of us likely believed that this was simply a response to a temporary situation. Now, it’s looking like the laws and restrictions put in place could become an additional two-year plan.

You should check out our episode about cashflow during the COVID-19 pandemic if that’s another layer that you’re dealing with right now.

Looking at the Washington State Eviction Moratorium Like many places in the country, Washington State has had an eviction moratorium for a full year. There’s a national moratorium and then there are local extensions of that moratorium. This provides another blanket of restrictions and rules that hold back the eviction process.

In Washington, there are laws in place that impact Real Estate Gladiator’s ability to:

• Collect past due rent
• Terminate tenancies
• Increase rent
• Charge late rent fees
• Charge penalties or NSF fees

Essentially, large parts of their lease agreements are no longer enforceable.

Even asking tenants to pay rent or providing an invoice for the rent that’s due is not allowed.

Property managers and owners in and around Seattle and throughout the state of Washington have been encouraged to ask tenants to pay what they can when they can. Payment plans are also encouraged. This has dramatically changed the job of a property manager.

Before last year, owners would hire a property manager to enforce a contract. Now, owners are relying on property managers to increase the level of communication and negotiation with tenants to an all-time high. Property managers are communicating with tenants 10 times more than they were a year ago. They’re also communicating with owners more frequently.

To be a successful property manager, you have to understand the situation that each tenant is in and how they’re impacted by COVID hardships. Tracy and Katherine have been providing resources to tenants to help them access any support that’s available to them. This is a different job description than it once was.

Coordinating COVID Resources for Tenants and Owners Real Estate Gladiators were always providing resources to their tenants. Now, however, those resources include help in applying for unemployment. They’re educating residents on where to go for help and how to initiate an unemployment claim. In Washington State, you do not have to prove a COVID hardship in order to be protected from eviction. Tenants are simply not required to pay rent right now. That doesn’t mean they won’t be accountable for it at some point.

Communication with tenants has been about support. Tracy and Katherine are working hard to help people and to show them that they understand and care about what they’re going through.

They cannot go as far as applying for assistance on behalf of their tenants. The CARES Act funding does not allow for it. It’s up to the tenants to make the phone calls and go through the interviews and fill out the questionnaires. Determining what part of the stimulus they can qualify for is the first step and then there is follow-up required with various agencies and funding sources. Coordinating all of this has become a part-time job for the entire Real Estate Gladiators office.

There’s also support that’s needed for landlords and property owners. They are in a situation where they have ongoing property expenses that accrue whether the tenant is communicating and working with their property managers or not.

Additional expenses are also sometimes unavoidable. Under the moratorium, if a tenant is not paying rent but the hot water heater goes out, owners are still obligated to provide them with hot water. They have to replace the heater. But if that owner hasn’t received rent in maybe six months and they have to pay for this maintenance issue, it’s very frustrating. Communication with the owners has helped them to understand how proactive they’ve been with their tenants. It’s helpful.

Advocating for Property Management During the Moratorium Crisis Tracy and Katherine have had some clients who left in order to self-manage their properties during the moratorium. They believe that if their property managers cannot collect rent for them, there’s no sense in paying for those services. It’s an understandable reflex. However, property managers are working harder than they’ve ever worked before to make their owners whole during the moratorium.

There’s more work in managing delinquencies and defaults than there is in posting a 14-Day Notice to Pay or Vacate.

Self-managing landlords are dealing with different dynamics than they were a year ago. Treading water is not easy. The tenant and landlord laws are moving targets and the goal posts are now changing quarterly. There are city ordinances and county ordinances and state laws in addition to the federal moratorium. Owners who don’t know what all of those mean for them and their properties are going to expose themselves to a lot of liability.

There is more value than ever in paying for professional property management.

Your owners need to understand that their property managers are plugged into the state agencies and organizations that can provide the most information and help. Property managers understand the legislation and they can share tips with owners about how to advocate for themselves at city hall and in the statehouse. Most owners would not even know about the changes happening on a regular basis with the laws.

If you’re not communicating your value to your owners, you’re doing yourself a disservice.

Owners can’t see how drastically things are happening on a daily basis. Tell your owners everything you can because you’ll always have more information than they do. Check out this episode on how you can use data to guide and communicate to your property owners for more support.

If you aren’t actively engaged in your local real estate associations, you’re missing out on a lot of good and necessary information. It’s not static. The changes are very dynamic and you have to pay attention daily. Most associations have lobbyists with seats at the decision-making tables. They know the state laws and the pending bills and they understand how these pieces of legislation will impact you as a business owner.

Your business will likely never look the same.

Current Legislative Session Concerns Testimony right now involves the eviction moratorium and the possibility of extending it. Lawmakers are deciding what that extension might mean for people with unpaid rent balances for 10 of the last 12 months. No one thinks it’s a good idea for landlords to pay for a person’s housing expenses for the duration of this moratorium. So, how can they recover their properties? These are the current concerns.

Seattle is floating an idea that once the national moratorium is determined to be over, they will then extend it for two years beyond the end of COVID. That’s a little nebulous. When is COVID over? When is that date?

It’s hard to help people forecast what they’ll be able to do with their properties. If an owner can’t give a notice of termination and renewing a lease is required, what are your real available options? No one wants to see mass evictions, but in order to have a rental housing market, you need landlords. The relief cannot be so one-sided.

There have also been discussions about a rent break. In such a situation, rent might be reduced by $500 for six months, and then after those six months, the rental amount returns to its original level. Incentive programs like this can help people pay and it doesn’t leave the landlords completely empty-handed.

Helping tenants and landlords begins with understanding the tenant’s situation.

What you know about your tenant is probably different now than what’s on the application. They might have been qualified when they applied, but circumstances have likely changed. Property managers need to be creative in encouraging people to pay what they can.

There is currently no opportunity to go to court for an eviction. Even when the courts do open up, there’s going to be some kind of arbitration required before you can actually evict a tenant and it’s hard to imagine what that waiting list will look like.

No one has painted a clear picture of what it will look like when owners want to regain possession of their property.

Currently, there are two options: owners can provide a 60 Day Notice because they’re selling the property or they can take the residence back in order to move into it themselves. But, those two options are only available if the lease term has come to an end.

Bringing in New Property Management Business How do you bring in new business when you can’t enforce your lease agreement?

Tracy recently spoke with a new owner who has had a vacant property for two years. It’s in an HOA that has strict regulations on condo rentals. So, she hasn’t had a tenant in two years and has no idea what’s going on in the market. She didn’t know about any of the moratoriums or restrictions.

Tracy shared her sincere desire to qualify tenants to the best of her ability and to increase the level of employment verification and proof of income verification so the best possible tenants will be placed. A lot of regular property management services haven’t stopped, including periodic inspections. If there’s a new roof needed or gutters in need of cleaning, there’s a way to participate in maintaining the home.

Owners appreciate this. They know that property managers are still their boots on the ground, even if collecting rent has become impossible thanks to the eviction moratoriums.

New owners looking for property management understand their own limitations. If a landlord calls the tenant to harass them for rent, they’re going to get in trouble. So, property managers can offer themselves as a separation between landlord and tenant. Owners don’t have to worry about the over-communication that’s currently necessary.

The best advice for property managers right now? Highlight the invisible things you do. Shine through communication. Refocus on the things you can do and that you do all the time. You probably never got credit for them in the past, and it’s about time you do.

As frustrating as the moratoriums are, this is the time to prove to owners that they’re better off with you instead of navigating all of this on their own.

If you have any questions about what you heard on this podcast with Tracy and Katherine, please contact us at Fourandhalf.

The post Property Management During Moratorium Madness appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: We’re talking about Realtor referral programs on The Property Management Show today, specifically, why they fail and what is required to make them successful. Vitaliy Merkulov from Renter, Inc. has joined us to share what he’s learned about referral programs and how to ensure property managers are making the most of these tools.

Key Takeaways: * A Realtor referral program is a tool or system that a property management company uses to collect leads based on referrals from Realtors. * Realtor referral programs can be a great source of generating leads. To make yours successful, you need to be willing to put time into maintaining and managing your program, and your relationships with Realtors. * Realtor referral programs are the most successful when supported by a holistic property management marketing strategy.

Basics of a Realtor Referral Program Everyone has a different idea about what a Realtor referral program is and how it should work. At its most basic, the program is a tool or a system that a property management company sets up to help them with the marketing of their leads. There are typically multiple components involved:

• A website or a web page that explains the program. This site should include information about the referral bonus paid to eligible Realtors who refer clients to the property manager and a list of benefits that the Realtor will enjoy by working with the property manager.
• An automated marketing system where social media outreach is done or a Business Development Manager calls Realtors on a consistent basis.
• Online form asking for referrals

These are the typical components, but that’s not everything your referral program should include.

Creating the Realtor referral program is your first step. Then, you have to make it work for you. That requires marketing and managing your program. There are multiple levels to its success, and it requires ongoing attention.

Check out our step by step guide to creating your own referral program makers

Successful Programs vs. Those That Fail Why do some Realtor referral programs work and others do not?

Vitaliy says it really comes down to effort.

As with any program, you have to put in a lot of work to get the results you want. With referral programs, it’s easy to get discouraged if you don’t see immediate results. But, you have to realize that building successful referral relationships takes time. Programs fail because property managers don’t make the effort. They don’t spend time networking with real estate agents and marketing their services and value. If a lot of traction isn’t made right away, it’s easy to lose interest in the program and begin focusing on other things.

This is a mistake.

Referral programs aren’t easy. Earning those referrals requires time and effort, and it’s not going to happen right away.

Everyone knows that property managers are busy. There’s a lot of talk about property managers working in their business instead of on their business. A referral program sounds like a great idea but it starts with a website and relationships and marketing. Before too long, something else will grab your attention and you’ll go back to getting lost in the day-to-day business needs. If you want your program to work, you have to focus on implementing that program and jumping on Zoom calls and meetings with Realtors. You need to share your expertise and your knowledge while promoting your services. That’s what will bring you the success you’re hoping for with a referral program.

In the property management industry, no two days are ever the same. Things are always coming up. Property managers in Texas, for example, never imagined they’d have to deal with frozen pipes in their properties and mass power outages. You need a plan to push through the daily work and the craziness you encounter from tenants and owners to make time for your referral program.

Research and Statistics: How are Realtor Referrals Used? A lot of research has been done on referral programs and one particular study looked at over 600 professionals across North America. Here are some of the interesting things that were found:

• 84 percent of decision makers start with a referral.
• 82 percent of respondents said referrals are their biggest leads.

Those are big numbers. The best leads come from referrals because they convert at a higher rate. It’s cost effective, too. You’ll close deals faster which means you can spend your marketing dollars elsewhere.

Another important statistic: Only 30 percent of companies have a formalized referral program.

When you call a lead that you got off a Google Ads campaign, the conversation is going to be more challenging than the lead you call from a referral.

We know referrals are an excellent source of marketing leads. So, why do only 30 percent of companies have a formal program?

Out of the 30 percent of companies that use referral programs, 86 percent of those companies have grown in last two years.

We know they work.

How Can You Make Your Realtor Referral Program Work? Different markets are going to have different results. For many of the most successful Realtor referral programs, five to seven leads per week is the result. Some companies can get up to 10 or 15 per week. These numbers are above average. If you can go from 0 referral leads to 60 referral leads in one year, you’ve got a successful program.

One or two referrals a week are going to increase your business and set you up to grow.

Give yourself some time for the program to yield results. When your program and your marketing are in place and your BDM is building relationships with Realtors, you may not have any new business today. But, in six months, you may see leads start to come in.

You have to keep yourself and your company in front of those Realtors. Maybe you’ll present your program to a meeting of real estate agents and they’ll send you a referral that they happen to have, collect their referral fee, and then forget that you’re available. You have to keep reminding them of who you are and what you can provide.

You have to keep asking for referrals. It’s an important part of maintaining your value and your relationship.

Here are some other things to remember:

• Make sure you have a property management website set up that specifically speaks to your referral program. If people can’t find you or don’t know about the program, they’re not going to make referrals.
• Don’t just dangle the fees in front of Realtors and expect them to respond. $200 or $300 isn’t a lot of money when you consider the commissions that real estate agents earn on sales. Focus less on the fee and more on the value of your program.
• Incentivize your referral. Realtors care about ongoing business more than they care about a one-time referral fee. Talk about how you return the clients to them and help them grow their own business.
• Introduce a contract and the details that limit their risk. Most real estate agents will worry you’re going to steal their client. Be specific about the details of your program, and be transparent so everyone feels better.

This is not a transaction. This is a relationship-building program with long term benefits.

Setting Yourself Apart from Other Property Management Companies How do you keep your property management brand on the minds of Realtors when so many other companies are doing the same thing?

Competing for attention is nothing new to property managers. You have to be in front of Realtors when one of their clients is looking for property management.

The study we referenced earlier showed that 91 percent of people are willing to give a referral but only 29 percent do.

We need to figure out how to get that number up. People are willing to refer business to you. You have to make sure it’s easy for them to remember you.

Keep your company in front of Realtors who may refer business to you. There are a couple of good ways to do that:

• Automated online marketing programs can ensure Realtors are aware of who you are and what you do.
• Social media posts can be routinely made to demonstrate successful results.
• Your BDM can call Realtors every Friday.

The marketing needs to be intentional. Instead of calling every Friday to ask for referrals, contact your agents to find out if there’s anything they need. Maybe you can share a new law with them and what it means for their clients. Talk about eviction updates. There are a lot of things they should know but probably don’t. If you’re an educational resource, they’ll know who to call when they need help.

Relationships aren’t only about referrals. They’re about sharing information.

They’re about building trust.

Talk to Realtors about the help you can provide when their clients are looking to buy an investment property. If you can help them choose between a fourplex and a single-family home or you can provide a rental analysis or some ideas for improvements that will make the property cash flow better, you’re going to earn that investor’s business when management services are needed.

Present yourself as a partner.

Tracking Your Realtor Referrals Your system has to include tracking. It’s very easy to get disorganized when referrals start rolling in.

It should be more than making a note that a particular Realtor referred the new client. You want to track every step of the referral process. Note when the referral was contacted, when you scheduled a meeting, when you evaluated the property, when the management contract was signed, when you listed the home, when it was leased, etc.

Track the movement of your referred client and communicate the steps to the agent who made the referral.

Some people think there can be too much communication and you should keep your business to yourself. But, those who communicate more often have better results. Keep your referring agent informed. It helps you retain their trust. No one will want to refer a client to a company that can’t keep track of where their clients are coming from.

PM Referral App Vitaliy and his team at Renter, Inc. developed a unique tool that property managers can use to manage their referral program.

The PM Referral App is a tracking system for property management companies to gather all their referrals. The system has a web dashboard and it integrates with your CRM, whether that’s Lead Simple or something else.

More importantly, there’s a mobile app that’s branded to your property management company. You can give that app to the Realtors who can submit referrals through the app. With a simple swipe, they can ask you for a rental analysis or send you a client’s information. You get a notification right away that there’s a referral waiting. Both you and the referring agent can see each stage of the process.

You can also provide content on the app. This is a great way to demonstrate your expertise in the local property management industry and the rental market.

This tool helps property managers automate their communication. But the tool isn’t going to magically deliver referrals. You have to use it to make it successful, and providing quality content will help.

Before you can get Realtors to download your app, you have to get them interested in your company and your services. Explain the benefits and how you can help.

Once you’ve established that communication, you can set up your automated marketing system or your drip campaign. This provides you with a regular method for providing information and asking for referrals. You get to deliver informative and interesting content, and Realtors have an easy way to get in touch with you.

The system alone isn’t going to increase referrals. Your job as a property manager is to engage with Realtors and keep yourself at the top of their minds.

If you have any questions about referral programs or how companies like Vitaliy’s can help you, please contact us at Fourandhalf.

The post Why Your Realtor Referral Program Isn’t Working (& How to Make it Work) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

One of Fourandhalf’s latest offerings is property management remarketing campaigns. But what exactly is Google remarketing? Why is it important for property managers? And what’s the risk for property managers that aren’t using remarketing campaigns?

Maddie joins our blog today to answer these questions.

What is remarketing? Remarketing is a paid ad campaign that utilizes images (or videos) along with copy to build brand awareness and bring traffic to your website or landing page! This makes potential customers familiar with your company, and while it is not intended for direct lead generation (like our Search campaigns are), it’s a great way to reach new audiences that might not have discovered you otherwise.

Google gathers a lot of data about internet habits, so you can market to relevant audiences while they’re on other sites with ease! In addition to bringing in new potential customers, your remarketing ads are a great way to remind people who have previously been to your site or seen your search ads but yet haven’t converted that you exist! We recommend that remarketing campaigns be paired with a search campaign as remarketing ads can be set to “follow” people around who have previously interacted with your company. This is a great way to keep you top of mind.

Learn more about our additional inbound and outbound marketing services here.

Why is remarketing important for property managers? Property management remarketing campaigns can level up your marketing strategy. The more times you’re able to get your message in front of a potential customer, the more likely they are to think of you when they need your services! It often takes a lot of time to generate the trust that’s needed to convert a potential customer, and remarketing will give you an important headstart over your competition.

In a nutshell, remarketing is important for property managers because it helps cast a wider net than just using a Search campaign and helps to remind warm leads to move through your marketing funnel.

What’s the risk of not utilizing remarketing campaigns? This is where internet marketing is going. If you’re relying solely on search ads, you’re leaving money on the table by not targeting the wider audience available with remarketing and not giving your warm leads a gentle reminder that your company is ready and waiting to solve their problems.

Don’t get left behind! Take advantage of this unique opportunity to set yourself apart from your competition, who may not be using remarketing yet.

Wondering how to set up your own remarketing campaign? Luckily, Fourandhalf is here to help you set everything up, step by step. Send an email or give us a call, and we can walk you through how to get started.

The post The Power of Remarketing Campaigns for Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

How is your property management reputation these days? As you’re shopping for goodies to share with your loved ones this Valentine’s Day, be sure to remember that you’ve got relationships to tend with your clients, too.

And when your customers love you, well, the 5 star ratings aren’t that far behind, right?

Strategies to Improve Property Management Customer Relationships Today, Marie will share some strategies for improving your property management customer relationships.

#1: Ask for Feedback Asking for feedback, especially in the property management industry, is hard, and it can make you feel vulnerable. But if you never ask, you’ll never know how you’re doing! You won’t know what’s causing people to leave or causing friction with your owners and tenants.

You’ll end up making growth decisions based on stories in your head, instead of real, actual data about what’s affecting your property management reputation and relationships.

Heart Tip! Send Emails and/or Set Office Hours

You can always send out emails asking for feedback – or, if you prefer talking on the phone or in person, you could set up a day and time every week where your clients can approach you about any issues they’re having. Think of it as your “Office Hours” for conflict resolution. For example, you could let your clients know that every Friday between 10-12p, they can call to speak with you directly about issues they’re having.

Asking for feedback is just the beginning. Now that you’ve put yourself out there, you’re ready for the next one which is…

#2: Identify the real problems in your property management relationships Review feedback with your property management team.

Schedule a meeting with at least one other person on your team to review feedback together. Having someone else with you to provide support and wisdom can help you really hear what your owners and tenants are saying, and then make clear-headed decisions on how to take the feedback and grow from it.

We did a blog called “What Our Data Shows About Negative Property Management Reviews (& What to Do About Them)” that takes an in-depth look at some of the most common complaints property managers deal with, and what to do about them! That’s a good place to start to get a sense of how your complaints measure against our data.

Get to the Root.

Don’t dismiss clients expressing their emotion. At the root of what they’re feeling is potentially valuable feedback for your company, and an opportunity for your client to feel truly heard and supported by you. Use reflective listening to get to the heart of their issue.

Heart Tip! Use Reflective Listening.

Reflective listening is a technique you can use to ensure that you’re understanding the other person correctly and make them feel truly heard. How can you do this? Well, once the other person has spoken, take a breath and start with “So what I hear you saying is…” then use your own words to summarize what they just said to you. This gives the other person the opportunity to clarify what they said and it minimizes any misunderstandings on both ends.

Once you’re clear on what the problems are, it’s time to do something about them!

#3: Take Action Tweak your processes and procedures so that the root problems can get resolved and never come back. When you implement your new strategies and policies based on feedback — stick to them! Being consistent is key here.

Put controls in place and get your entire team on board to ensure things don’t just go back to how they used to be. Demonstrating to your clients that you not only hear feedback but are willing to make real changes based on it builds trust and improves your property management reputation.

But before you deep dive on every review you’ve ever received, be sure that they’re real. Check out “How to Manage Inauthentic Property Management Reviews in a Reputation-Driven Market” for some tips on what to look for in determining whether a review you’ve received is authentic or not.

#4: Communicate Once you’ve addressed the problems, the work isn’t quite done! You have to communicate, because good communication is key to healthy relationships in property management (and elsewhere!).

Let your clients know what changes you are making based on their feedback. Doing this not only makes them feel heard, it also builds and strengthens trust in the relationship.

And at the end of the day, don’t we all want an excellent property management reputation based on great trust in our relationships?

Here at Fourandhalf, we’ve helped hundreds of property managers take control of their online reputation and grow their business in the process. We’ve been doing this since 2012, and we can help in all aspects of owner marketing — from creating a conversion-driven website, nurturing leads, content creation, online ads, you name it.

Just give us a call or send us an email, and together let’s make this year your best one yet.

The post Trading Hearts for Stars: Strategies to Improve Property Management Customer Relationships appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: In Part 1 and Part 2 of our Property Management Marketing series, we discussed various aspects of property management tenant marketing. Today, we’ve invited our own John Bykowski, CEO at Fourandhalf to discuss some of the big changes he’s seen in owner marketing.

We’re talking about how property management companies can keep up with the times and attract more property owner clients.

Key Takeaways: * Internet marketing has exploded in the last nine years for the property management industry. * Google Ads, websites and content marketing are crucial for owner marketing these days. * Changes in consumer behavior are affecting owner marketing strategies. * There are more things vying for our attention these days – your job is to capture owner’s attention, and provide value to them once you have it.

Catch our full Property Management Marketing series:

Property Management Marketing | Part 1 | The Rise of Zumper & Facebook Marketplace

Property Management Marketing | Part 2 | Building Waitlists & Pre-Marketing

Remembering Property Management Owner Marketing in 2012 John started in internet marketing about nine years ago, when it wasn’t really a thing.

There were websites and homepages, but they were little more than a placeholder or calling card. Think of a glorified Yellow Pages ad for a company, with the addition of a few pages. Most property managers were getting their websites from their software companies. It was still more common to spend marketing dollars on print ads in the Yellow Pages or on billboards or bus seats. Maybe a property manager would purchase a radio ad or a television ad if there was money and ability.

The internet was not the primary marketing platform for property managers when John got started and Fourandhalf was arriving. He remembers his first NARPM National meeting, which was in Washington, D.C. in 2012, and he had to explain to people that you can get business from the internet. Some people understood this but a lot had not thought about it.

Leading an Industry Towards Different Thinking The world at large began to change and a huge part of life moved online. YouTube was around and that’s where people went to watch videos. Netflix had just started streaming but it wasn’t very popular yet. More information could be found online and eventually, there was no reason to explain to property managers that it was a good idea to advertise on the internet.

The number of ways to advertise had grown more sophisticated. When Fourandhalf started, content marketing and video blogs were very new. The best ways to market your property management services to owners were through content marketing, social media marketing, and reputation management. These were the products Fourandhalf focused on and they looked nothing like they look today. With reputation management for example, John was simply teaching people how to respond to reviews. There were no automated systems in place and Yelp was far more popular than Google. In some markets, Yelp wasn’t even used yet. Now, things have evolved and Google stars are far more important than Yelp reviews.

As marketing moved online, banner ads were available but it didn’t take long for marketers to realize that no one was clicking on banner ads. Pop up ads weren’t working either. It was time to learn how to leverage the data that could be gathered by a person’s online presence.

Valuable Owner Marketing Tools Today AdWords AdWords started slowly and before everyone started using it, you could launch an AdWords campaign for cheap. Now, we’re at the point where so many people are using it that it’s actually an auction site. The price keeps going up and that’s not going to stop. Early in the AdWords days, a Bay Area property management company could spend $2 per click. Now, it’s about $65 per click in the same market.

There was also a huge gap in knowledge about how to use AdWords. We encountered a lot of property managers who hired a generic AdWords company that didn’t understand the difference between owner clicks and tenant clicks. Our industry has gotten smarter and property managers are careful not to waste money. We’ve learned how to track return on the marketing dollars that are spent.

AdWords can still work today, but plan to spend some money.

There aren’t any magic bullets when it comes to owner marketing for property managers. In the past, implementing a marketing strategy would put you ahead of your competitors. Now, everyone is using those strategies so not implementing them will put you well behind other management companies in your market.

Websites Websites are more important than they were even a few years ago.

This has become the base of internet marketing. Your website is a lead source, not just a place to post information about who you are.

Everyone is researching everything online. Before a new owner gets in touch with you, that lead is going to be pretty well-educated thanks to what they’ve found online.

Consumers hardly have to interview people and companies anymore. You don’t have to call and talk to 10 people before you make a buying decision. You can go online and look at reviews. You can see how many times tenants have complained.

Your website is powerful. It’s more than where you are and what you do.

Think about Coca Cola. That brand has created an image for itself based on emotion. Their website says nothing about what it’s like to drink sugary carbonated water. Instead, it’s telling a story about how it feels to enjoy a Coke and it’s inviting visitors to engage with the brand.

This has to happen for smaller companies, too.

People are going to expect to see why you’re a property manager and why they should work with you.

Content Marketing Content marketing is now all about targeting pain points. When a potential owner goes online, they’re not typing ‘property manager Richmond’ into the search box. They’re typing how do I find a good tenant or how do I maintain my rental property.

Instead of looking for a service online, they’re trying to solve a problem using online resources.

Consumer Behavior Changes and What it Means for Marketing Big changes in consumer behavior are requiring property management companies to catch up. No one is calling or faxing or looking for plumbers in the Yellow Pages. Google My Business has taken the place of the Yellow Pages. It’s where people can go to look up general information about a company. You need to make sure it’s accurate. Make sure your hours reflect your opening and closing times because people are using that and if you’re not open when you say you’re open, you can probably expect a complaint or a negative review.

Social media has changed to reflect the same trends in consumer behavior. Facebook was around in 2012, but people weren’t interfacing with it in the same way they are now. What you can and cannot do with Facebook is different, and that’s largely due to the general backlash against privacy invasions. Cambridge Analytics did some shady things with the data it collected on people, and when Facebook pulled away from that, limits were put into place on the kind of data you could use to target people.

Previously, a real estate agent could create a campaign that targeted people who were six months away from buying a house. There was data gathered based on a person’s online activity that told us they were six months away from that purchasing decision.

Now, there’s a larger push for re-marketing and re-targeting. Think about those banner ads people hated. While no one ever clicked on them, people were still seeing them. The same concept is being used now. Facebook might not know you’re going to buy a house in six months anymore. But, if you visit my real estate sales page on my website, it’s going to trigger Google ads and social media sites to put real estate advertising content in front of you. No one expects you to click on it. But, you’re going to see it. The image and the information is there.

Competitive Owner Marketing Property managers have to know the competitive alternatives to what they’re currently doing.

Competition now includes doing nothing. Or, it means an owner is managing on their own. So when you advertise your property management services to owners, don’t just compare yourself to the company down the road. You also have to make a case for why property management is needed. This is a problem that not all industries have.

On your website, it’s important to include messages to different audiences who show up for different reasons.

In the past, people would get to the homepage first. Now, there are better search options. You can direct people to subpages, which are more specific to what a person is searching for. With the right website content, you can have an answer for each competitive alternative. You’ll tailor your pages to the problems of particular consumers.

Google is now a verb. I’m going to Google ____. It has shifted the way we live and when you can Google anything, there’s a sense that professional help may not be needed.

• You’re targeting property owners who can Google how to find a tenant.
• You’re targeting property owners who can Google how to fix a toilet.

Self-management has always been a fact. But now, people may find they are more emboldened to manage on their own because of all the information that’s so easy to find.

Your job is to reinforce the fact that property management is more than collecting rent and fixing toilets.

Twenty years ago, property owners didn’t even know property management existed. John owned a home in Las Vegas and when he moved to Silicon Valley, he rented out the property to a friend and had his Dad take care of anything the house needed. If he had known he could hire a property manager to take care of everything, he might still have that investment property today. Eventually he sold it because managing from out of state was just too much.

Industry education now means explaining to rental property owners why professional management is valuable.

Owner Marketing Plans for 2021 and Beyond When it comes to property management marketing and your plans to attract more owners, things have changed and they will continue changing.

Here’s what you can do to keep up:

You need a systematic reputation management process in place. Good reviews aren’t just nice to have – they’re necessary. Not all of your reviews are going to be good of course, but you need to work on increasing your stars on Google. Be attentive to that. It’s what people are looking at. We have a process for reputation management at Fourandhalf, and you can also do it manually. One way or another, make sure you’re not avoiding your online reputation. You can have 50 five-star reviews, but you still have to stay on top of it.

Make your website more than it was. Once upon a time, you could rank just for being a property management company and having a page dedicated to services. Now, you need content that will attract visitors and keep them on your site. Google is always changing its algorithms. Now, it’s looking at your content.

Be suspicious of SEO companies. No one knows exactly what kind of magic Google is using to rank sites. SEO companies can lead you to bad decisions. People who spammed keyword tags and backlinks are now suffering. Don’t take shady shortcuts. Adding content to your site will increase your ranking. There are no shortcuts.

Look at what you’re doing and make sure it’s working. Marketing changes don’t happen on a monthly basis, so don’t check your numbers month to month. Remember, too, that property management is a seasonal industry. You’re going to have fewer people looking for you in January than you do in the late spring. Don’t make immediate changes because it looks like your marketing plans aren’t delivering any action right now. Look at how much business you’re doing this year compared to last year. Make changes based on that kind of timeline.

Some of the metrics you should use include:

• How many leads do I have?
• What are the quality of those leads?
• How long does it take me to close a lead?
• What am I doing to convert the most leads?

Attention Management is Part of Property Management Owner Marketing Everyone is familiar with terms like multitasking and time management.

Now, attention management is the thing you need to focus on. There are so many things competing for your attention. Your phones and your tablets and your Apple Watch are trying to steal your attention. Every time you subscribe to something and start getting notifications – you’re giving away your attention.

When you’re marketing your services to owners, your job is to get their attention.

Once you have that attention, you need to know what to do with it. You can’t give them a blurb or a sales pitch. You have to make a connection.

This is what we can boil it all down to. The biggest change in marketing is that there are more forces trying to steal your attention online. Tik Tok videos. Pinterest pictures. So much is happening out there, that you have to show your value once you have someone’s attention. Get them to your website and start interacting.

People are interested in what you will mean to them. Luckily, you can share this message better online now than you could before.

If you have any questions about what John had to say on today’s podcast, please contact us at Fourandhalf, a marketing agency for property management companies.

The post Property Management Marketing | Part 3 | How Owner Marketing Has Changed appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Create a Property Management Marketing Plan Step by Step If you haven’t been thinking about your marketing strategy for 2021, it’s time.

Luckily, the Fourandhalf team is here to walk you through creating a property management marketing plan, step by step.

Step 1: Determine the Types of Owners You Want to Attract Before you jump to budget and goals and contracts, you need to know your ideal client: what types of owners do you want to bring into your business?

Think carefully about this, because if you’ve already done this work and identified your “ideal owner client,” COVID may have had an impact on that demographic. How has COVID affected your target market? Have their needs changed? How can you provide solutions specific to the new problems they’re facing? Or does the onset of COVID mean that your ideal client has shifted entirely?

These are the questions you want to bring to your team. Get detailed about who your new ideal owner client is. Once you’ve got that in place, you’re ready for step 2.

Step 2: Decide How Many New Owners You Want This Year Next, you need to decide how many new owner accounts you want over the next 12 months. Getting to this number is easier if you have some data from the last year that you can use to make a more educated guess at how you will grow next year. How did COVID affect your new owner client rate this past year?

Do not assume that COVID will magically disappear — but don’t assume that your business is doomed, either. We recommend coming up with two numbers: 1) Your most optimistic goal, and 2) Your least optimistic goal. Underneath each of these goals, write down some of the scenarios that would affect these numbers. Putting this information into writing creates clarity around what you’re going after, what the circumstances are that are out of your control, and what the circumstances are that are in your control.

Break down your annual goal into achievable chunks: 90 days, 30 days, and weekly targets. Make sure your salespeople have these numbers in their minds.

Step 3: Determine How Much to Spend on Acquiring Owners Here are three important factors to keep in mind as you determine how much to spend on your marketing budget:

Location, Competition & Value Your location makes a difference and it varies for each city with your property management firm. For example, areas like Phoenix and Atlanta are expensive places to acquire a customer. Whereas Albuquerque is quite reasonable, and Portland is somewhere in the middle.

You also need to look at your competition. Take a peek at how aggressively they are marketing their services and what kind of money they’re spending. The activity among your competitors can vary; you might have large franchises spending a lot or there might be very little marketing involved.

Finally, what’s the LCV (lifetime customer value) of the contracts you want? Knowing this number affects how much you spend on acquiring that customer. Owner clients with a high LCV may require you to spend a little more, whereas you should only be spending a moderate amount on clients with a lower LCV.

Plug Your Numbers Into This Property Management Marketing Formula Because of the variability in different markets, the size of a property management company, and if, for example, your company also provides maintenance services, there isn’t a single formula that works for all property management companies.

But in our blog 5 Ways To Get More Property Management Leads, we broke down a general framework that can be useful for thinking about how much to spend. Here’s a quick snippet from that blog:

For every $3 you want to earn, you can expect to spend $1.

Let’s say you want to grow by 36 doors in a year, and you make $500 in profit per door. That means you’re hoping to make $18,000 in profitable growth.

36 doors x $500 profit per door = $18,000 in profitable growth

If we apply the 1:3 ratio to this number, you should be looking at spending at least $6,000 over the course of the year on sales and marketing.

Using this framework, and adjusting the numbers based on what you know about your area and the value of your contracts, you should be able to come up with a budget for owner marketing in 2021.

Step 4: Create an Action Plan You’ve got goals, and now you know how much money you have to achieve them. It’s time to put a plan in place so that you and your team know how to get there. You should have both inbound and outbound marketing strategies as part of your action plan for 2021.

Inbound Marketing Strategies In terms of inbound marketing, use these three questions as a jumping-off point for building your action plan:

• What educational content are we creating to answer our ideal client’s pain points?
• How frequently are we posting that content?
• Where is that educational content getting posted?

Outbound Marketing Strategies In terms of outbound marketing, use these three questions as a jumping-off point for building your action plan:

• What consistent message are we sharing to address our ideal client’s pain points?
• How frequently is that message being advertised?
• Where is that message being advertised?

With this information in place, determine how much money you will allocate to your inbound and outbound marketing strategies.

Step 5: Execute Your Plan With your strategy in place, it’s time to execute it. Call your team together and decide how you will work toward implementing your plan and achieving your goals.

Key to this part of the process is setting up a method of evaluating your progress. What KPI’s (key performance indicators) will you use to measure your progress toward your goal? How often will you review those KPI’s? What steps will you take if you notice you are not on track?

Finally, it’s important to remember that none of your marketing efforts will pay off if you don’t have a flawless sales process in place. When phone calls go unanswered or messages are left on voicemail, and you’re not paying the right attention to leads, your marketing plan isn’t going to work. If you cannot close the deals, there’s no plan that can help you.

Contact us at Fourandhalf if you need any help with your marketing budget or your planning process for 2021.

The post How to Create a Property Management Marketing Plan for 2021 (Step by Step) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: On today’s episode of The Property Management Show, we’ve asked the experts in property management and HOA banking to join us. Allison DiSarro and Ken Carteron from Enterprise Bank and Trust, formerly Seacoast Commerce Bank, are on the podcast to talk about the differences in banking for property managers and banking for HOAs.

Whether you’re already doing both property management and HOA management or you’re thinking about expanding into one or the other, today’s episode is for you.

Introducing Ken and Allison – The Faces of HOA and Property Management Banking Ken Carteron has been an HOA banking professional since 1992, and he’s been in the general banking industry since 1980. His 40th anniversary in the field has come and gone, and one association manager he works with once said that Ken has forgotten more about HOA banking than anyone else will learn in their lifetime. It’s what he does and he’s good at it. His clients would agree.

Allison DiSarro has been with us on The Property Management Show before (check out Property Management Banking & Trust Accounts). She’s an expert in property management banking and introduced to us the concept of analysis credits for property managers before Seacoast joined Enterprise Bank and Trust. Allison says she was skeptical of the merger at first, but now she’s excited about the growth of opportunity available for the property managers she works with.

The Merger: Seacoast Commerce Bank Joins Enterprise Bank and Trust If you’re not already aware of the merger between Seacoast Commerce Bank and Enterprise Bank and Trust, we want to talk about what that will mean for customers of the bank.

Prior to the change, Seacoast had been successful in becoming the face of property management banking. Growth was never a problem, but there were some things missing.

The benefits were the analysis credit program, the high rates, and the compliance. Those were always the driving factors. What was missing, however, was a solid product provider. The online capabilities and flexibility of the bank was hampered by the system they were using, and investing in a new software system wasn’t possible.

Customers of Seacoast needed the tools and support to do online banking more effectively. Relationship managers were advocating for that, and the system that Enterprise Bank and Trust uses is exactly the one they wanted.

What Seacoast Clients Can Expect with the Merger Property managers who have been working with Seacoast will notice a positive impact. The system is sophisticated and easy to use. On February 12, everything will convert to the online banking system used by Enterprise.

Beyond the new technology, everything property managers loved about their relationship with Seacoast is the same. The merger has felt less like being absorbed into another company and more like a collaborative move forward. Most importantly, the specialty deposit team is getting what has been needed.

Ken has been in banking for a long time, and this is hardly his first merger. He says he’s been through some terrible ones, and is impressed that this has been handled so well. Enterprise has been good about coming to Seacoast for guidance in moving forward. That doesn’t usually happen.

Another major benefit to the merger is the flexibility that comes with having onsite programmers. They can build integrations into existing software programs and expand the product that’s already provided.

There’s also a larger lending product for HOAs. The lending limits with Enterprise Bank and Trust are a lot different than they were before Seacoast merged. Ken can now present a package on behalf of an HOA client who needs a $10 million loan and expect it to be accepted. That allows him to provide more value to his clients.

One thing they both mourn is the loss of the Seacoast Commerce name. It was a security blanket that’s hard to let go of, even if it’s a normal process.

But this is a new bank with a new executive team and new owners. There’s been a merger into a bigger bank and it’s creating new opportunities for property manager and HOA clients.

How Has HOA Banking Changed? Long ago, an HOA would have a trust account. That’s not the case any longer, and in the reserve accounts that are used instead, Ken works with HOA management companies to set up insured money market accounts.

Here’s why that matters:

The FDIC covers $250,000 per Tax ID number. An HOA will have two accounts; an operating account and a reserve account. To keep that money safe, those accounts should not go over the $250,000 limit. But they can and they do because operating funds go up and down throughout the month.

It’s Ken’s job to find a place for the rest of the funds – those that exceed the $250,000 limit.

Many HOAs will have millions of dollars, and that money needs to be scattered into different accounts so they can maintain FDIC protection. The ICS program helps them. It allows Ken to place all excess funds into one set of accounts which are split up into $250,000 increments, but deposited and consolidated onto one bank statement. This allows the management company, when they’re doing their financials, to deal with one statement only. Other banks use products similar to this. It blends everything together and acts like a normal money market account and the funds are still easy to access. It acts as a broker account, with all the funds in one location but split up into several different accounts to stay insured.

Imagine that you’re a banker with $750,000 for one HOA. At the bank, you’ll hold $250,000, and then you’ll disperse the rest into two other accounts. Those accounts will be at other banks, but the initial bank will manage those accounts through the ICS program.

HOA vs. Property Management Banking Banking as a property manager and as an HOA management company is different.

As a property management company dealing with residential homes, funds are held in trust and insured to $250,000, as long as your bank has set up your accounts correctly. Each beneficiary in that account is insured up to $250,000. With an HOA, however, homeowners are not considered trustees.

Property managers aren’t going to use the ICS product because they don’t have the same concerns as an HOA. It’s rare that one account will hold over $250,000 for a single owner.

A lot of property management companies are thinking about getting into HOA management. You have to understand the big differences in the way funds are managed for each. You aren’t going to put HOA funds into a trust account.

It’s also important to remember that each state has its own laws when it comes to HOAs. For example, in California and Nevada, property managers cannot be designated signers for reserve accounts. They can’t even be secondary signers. It has to be an association board member. Often, board members serve only one term. With annual turnover, it can be difficult to get those signature cards done every time there’s a transition. Don’t open your HOA reserve account and forget about it.

A lot of education is necessary. If you’re a property manager who is thinking about HOA management, make sure you talk to your banking manager so you know what to expect.

How to Choose a Property Management or HOA Bank It’s common to choose a bank based on the rates they offer. The industry is rate sensitive, especially for HOAs. But, you want to look past the introductory rates when you’re choosing your banking partner.

Analysis accounts give you credits, not interest, so you have to do your homework. That one percent rate may sound great when we’re talking about interest. But for analysis accounts, your credits first need to offset your transaction fees, which can vary from $100 to $1,000 depending on the bank. So what does that mean for you? Gross rate doesn’t matter as much as what you’ll net at the end of every month. So make sure the bank analyzes your transactions and is able to give you a realistic idea of your net return before you make a decision.

Banks are known to offer very good rates when they need an influx of deposits. Those high rates aren’t always sustainable, and while the rate you’re receiving is an important thing to consider, overall it’s always better to choose a banker who specializes in your industry. You’ll have an experienced professional who understands your needs and your compliance structure.

Take a look at the associations that the bank belongs to. The HOA industry and the property management industry has specific professional organizations that every management company belongs to. The bank offering you a great rate may not be a member of that organization, which means they’re not going to know the products and services you really need.

Branch Banking vs. Remote Banking for HOAs and Property Managers Historically, homeowners association managers have preferred banking with a local bank where they can walk right into a branch and talk to someone who knows them and do their business. That may have been necessary when daily deposits had to be made, but it’s not so critical anymore. While it’s nice to see a familiar face, you want to know you’re working with someone who can do a lot more than small talk.

You should be aware that the people you know at your local bank can’t make a lot of decisions for you. You may have a polite relationship, but the level of expertise and the direct access to decisions is more important. You might know one of the tellers at your local Wells Fargo branch, but you probably don’t know the branch manager or the bankers. When it comes to specialized needs of businesses like property management and homeowners association (HOA) management, you likely won’t get efficiency or expertise in the local branch of your big bank.

HOA Lockbox Services Lockboxes are a big part of HOA banking. With a lockbox, you don’t have to go through the hassle of going into the bank. You do everything electronically or remotely. Payments are mailed to the lock box and they can also accept credit cards, debit cards, and electronic payments. It’s safer and more secure than dropping off a check in a local bank branch office.

Ask Allison & Ken Your Questions at PM Grow Summit 2021 Enterprise Bank & Trust is the conference partner for the upcoming Virtual PM Grow Summit. Allison and Ken will be there, and this will be the first time that the HOA division is introduced to our property managers and partners. You’ll want to make sure you drop in and say hello.

We hope to see you there, too. If you have any questions about today’s podcast, be sure to contact us at Fourandhalf.

Get These Exclusive Fourandhalf Coupons ONLY at PM Grow! The following coupons will only be valid for PM Grow attendees between January 20th – 22nd:

50% off set up fees for any marketing product!

100% off set up fees for a Scale Website when you sign up for any marketing package!

Click here to learn more and register for PM Grow Summit 2021

The post HOA vs. Property Management Banking appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

It’s a new year, a new world, and to keep your property management business thriving, you need to know the latest insights, trends and resources in the industry. Luckily, you have the opportunity to access all of that in one place: PM Grow Summit 2021.

This year’s virtual PM Grow will feature 12 experts speaking on leadership, hiring, positioning, growth, acquisition, and more. You can hear more about our virtual platform and what to expect from the conference this year in our podcast episode about PM Grow. In the meantime, here’s a sneak peek at our headlining professionals.

Keynote Speakers at PM Grow Summit 2021 We are very excited to announce our three Keynote Speakers at PM Grow this year:

• Executive coach and leadership expert Libby Gill
• Best-selling business author and wold-renowned business advisor Chuck Blakeman
• Entrepreneur and financial expert Greg Crabtree

Learn more about their presentation and their bios in the descriptions below, or by visiting pmgrowsummit.com.

“How to Lead People Through Change, Challenge, and Chaos” with Libby Gill This year has had no shortage of change, challenge, and chaos… and we’re still not quite out of the woods yet.

As we begin the new year, executive coach and leadership expert, Libby Gill, will help leaders like you to inspire purpose and drive performance within your teams in the face of uncertainty and fear. She will also talk about how to make 2021 a good year, despite what life decides to throw at us.

Libby is a former Senior Vice President for Universal Studios, and a former Vice President at Sony Pictures and Turner Broadcasting.

The author of five books, Libby’s latest book is “The Hope-Driven Leader: Harness the Power of Positivity.”

More about Libby Gill: Libby Gill knows change. She grew up on two continents and went to eight different schools before putting herself through college waiting tables. Starting her career as an assistant at Embassy Communications, a television company founded by the legendary Norman Lear, Libby survived three mergers to emerge as head of publicity, advertising, and promotion for Sony’s worldwide television group in just five years.

After a decade at Sony, Libby went on to lead public relations and corporate communications at media giants Universal and Turner Broadcasting. She exited the corporate world after nearly twenty years in leadership roles to become a first-time entrepreneur. In her mid-forties (when many people are slowing down), Libby founded Libby Gill & Company, an executive coaching and leadership consulting firm based in Los Angeles. For more than 15 years, Libby has guided clients to lead their teams through change.

The author of five books, Libby’s latest book is “The Hope-Driven Leader: Harness the Power of Positivity.”

“How to Get Off the Treadmill – Make More Money with Less Time” with Chuck Blakeman Does it feel like you’re working too hard, yet you still haven’t achieved what you were hoping for?

Chuck knows exactly how you feel because he has been there. But after building twelve businesses in eight industries across four continents, he has learned a thing or two about getting off that dreaded treadmill and reigniting that passion that got you into business to begin with. His talk will help you regain focus on what matters most, and equip you with practical advice so you can win the Business Owner’s Game.

Deep Dive: 12 Tools to Manage Your Business And Gain Your Freedom This session is a follow-up to Chuck’s talk “How to Get Off the Treadmill – Make More Money with Less Time.” Now that you’ve learned how to refocus on what matters most as a business owner, he’ll go into a deep dive about how you can ensure that your business gives you personal freedom. Because at the end of the day, isn’t freedom the reason why you decided to be an entrepreneur?

More about Chuck Blakeman: Chuck Blakeman is a serial entrepreneur, international speaker, best-selling business author and world-renowned business advisor who built ten businesses in seven industries on four continents, and now uses his experience to advise others.

His company, Crankset Group, provides outcome-based mentoring and peer advisory for business leaders worldwide. Chuck sold one of his businesses to the largest consumer fulfillment company in America and led three other $10-$100 million companies. He presently leads the Crankset Group and a for-profit business based in Africa, focused on developing local economies to solve poverty. Chuck is a results leader with decades of experience leading companies in marketing, import/export, fulfillment, call centers, website development, printing and direct mail processing.

Chuck is the author of “Making Money is Killing Your Business,” which was rated as #1 Business Book of the Year by NFIB, the largest business owner association in America.

At PM Grow Summit, attendees will receive Chuck’s newest book for 2020, “Humanizing the Workplace.”

“Simple Numbers 2.0 Rules for Smart Scaling” with Greg Crabtree What are the key success factors of a property management company? What are the pitfalls in terms of finances, and how can you avoid them?

Greg Crabtree is a speaker, author, entrepreneur, and financial expert. You may also know him from the contributions he’s made with the NARPM Accounting Standards.

In his talk, Greg will share with us his Three Simple Rules for Business Success, the Five Forces of Cash Flow, and explains how to turn a profit in the simplest way. These tools and concepts will help you identify how well your business is doing so far, and how you can ensure profitable growth in 2021.

More About Greg Crabtree: Greg Crabtree is a speaker, author, entrepreneur and financial expert. Crabtree has used his entrepreneurial skills to develop Crabtree, Rowe & Berger, PC, a CPA firm focused solely on the needs of entrepreneurs, helping them build the economic engine of their businesses. Working with entrepreneurs all over the country in a broad range of industries, Crabtree has simplified financial reporting and empowered all entrepreneurs to take ownership of their finances. He has pioneered a revolutionary metric for driving business profitability: measuring labor efficiency and developing simple benchmarks for company, team and individual performance.

In 2011, Crabtree published his first book “Simple Numbers, Straight Talk, Big Profits,” in which he shares his core principles of how to turn your business into a wealth building engine. He is currently working on his second book, “Simple Numbers 2.0.”

Industry Speakers at PM Grow Summit 2021 Besides our three keynote speakers, we have 9 additional experts who will present invaluable resources at PM Grow. Learn more about their presentation and their bios in the descriptions below, or by visiting pmgrowsummit.com.

“Visionary vs. Integrator: The Good, The Bad, and The Ugly” with Lisa Wise and Grace Langham The concept behind each role is straightforward, but how does it feel to be in those shoes? Visionaries always get the spotlight due to the nature of their role, but the Integrator is the one turning ideas into reality. What does that relationship look like, and how can you make it harmonious and successful?

Join us as for our Fireside Chat with Lisa and Grace, collaborators of Flock(n.), Nest, Roost, and Starling.

More about Lisa Wise: Lisa is the founder and owner of Nest DC. The success of Nest was something she wanted to share fully with her team. To that end, Roost DC, LLC was established to offer employees the opportunity to own part of a company while meeting a need in the management field. Roost is modeled after Nest, and pairs well with the mission while creating exceptional opportunities for all involved.

In her role as Chief Rooster, Lisa oversees the strategic direction of the company. She establishes partnerships with vendors and suppliers, works to ensure Roost adheres to best practices and maintains a standard of excellence in all interactions. She directly oversees the field department, finance and governance staff to ensure all three work in harmony to deliver excellent building management.

More about Grace Langham: With an early education background, orienting tenants and owners to the world of boutique property management and juggling dozens of tasks at a time is a talent Lisa believes was developed while leading a classroom of first graders for years.

Since joining Nest DC almost 10 years ago, Grace now leads the effort to keep their leasing team running smoothly with a focus on client services, and baseline finesse of all the moving parts that go into managing successfully. Lisa is also a member of the senior management team and works to direct the strategic direction of both Nest and Roost.

“The Grinder Hiring Process” with Matthew Whitaker Could your hiring process be your company’s Achilles’ heel? Matthew shares his proven hiring methodology built for scaling a property management company. It’s called “The Grinder” because there is rigor to this structured process.

Hire to help scale. This methodology is called “The Grinder” because there is rigor to the structured process. You can learn every trick in the book – from the latest sales techniques, to the newest property management systems and processes – But, if you don’t have the right people to run them, then it will all be for naught. Matthew walks through how GK has gone from 15 people 3 years ago to 75 today using his system for hiring. He’ll take you through it step-by-step and include what to look for and what to avoid when meeting with candidates.

More about Matthew Whitaker Matthew is a student of the book Good To Great and is passionate about building gkhouses to become the best property management company on the planet; and maybe even the universe if Elon Musk will hurry up. To do that, he spent the first seven years of gkhouses in the trenches but now focuses most of his time facilitating growth in other markets.

“Reactive vs. Proactive Growth” with Kathleen Richards When you think about growing your business, how clear does that end goal look? A common pitfall for business owners is growing for the sake of growth.

Kathleen will talk about how to be intentional with your growth rather than being reactive, and she’ll teach us how to set a growth plan in place.

More about Kathleen Richards Kathleen has a MS degree in Business/Organizational Development and a BA in International Studies and Economics. She is a nationally recognized speaker, instructor, author, and thought leader for the last 30 years focusing on business, organizational/leadership development, culture and specifically the field of property management. She has worked with corporate, government and academia (US and International). As a former Broker/Owner of a two time award winning property management company she knows first hand the highs and lows of being a business owner.

Workshop: “Resident Benefits Packages” with Todd Ortscheid Not maximizing revenue opportunities could be holding your business back. Todd has developed these packages as a great way to improve tenant satisfaction while boosting your company revenue and profits. This workshop will teach you how to put your package together, what benefits to include, and how to implement it at your company.

Resident Benefits Packages are a great way to improve tenant satisfaction while boosting your company revenue and profits. This workshop will teach you how to put your package together, what benefits to include, and how to implement it at your company. You will leave the course with a Resident Benefits Package ready to go when you return to the office!

More about Todd Ortscheid Todd has held a real estate sales license in Georgia since 2008. Born in Charleston, West Virginia in 1982, he has also lived in Florida and Ohio. He majored in professional aviation at Embry Riddle University. Prior to joining GTL Property Management & Sales, he worked as an airline pilot for a major airline based in Atlanta, and also served as an Executive Vice President of the Air Line Pilots Association, Int’l.

“After the Acquisition” with Mike Catalano Everyone wants more doors, and you won’t find a shortage of property managers who believe acquiring companies is the best way to grow.

But a lot of issues still come up after acquiring a company or a new book of business, especially if you are not ready to handle the load. The journey does stop at just acquiring. In order to break even, Property Managers lose 5% to 15% of the portfolio due to a number of issues. When acquiring a company, you need a way to add the same number of doors you lose… sometimes in excess of what you lose. You don’t get to keep all the doors you acquire, either. You also have to figure out if you want to manage all the doors you acquire. What should you do if 500 of those doors are bad properties? This talk will uncover all these things, and propose ways to navigate all the uncertainties.

More about Mike Catalano Mike has over 20 years of leadership experience in developing real estate firms. He is currently the CEO of Real Estate Connections and CEO of NextGen Property Ventures, real estate investment and property management firms based in Los Gatos (REC), Santa Cruz (Portola PM), & Roseville (Sunburst Properties), California. He is a Board member for Fourandhalf, an internet marketing company specializing in property managers. He also sits on the board of HappyCo, a mobile platform for inspections and operations. He is a recognized thought leader and regular industry speaker on the topics of property management firm acquisitions, real estate investments, and real estate marketing best practices. He is a member of NAR (National Association of Realtors) and CAR (California Association of Realtors). Mike holds a Real Estate Broker’s license in California.

“Dealing with Local Government” with Keith T. Becker. It’s not a surprise that the local government can have an impact on any small business — but more so for an industry such as property management. If you aren’t involved with local government, then tenants control where legislation is going. Keith explains how being involved with the community gives property management a voice in a tenant centric world. Examples of issues to get involved with: New Rent Control Laws, Fair Housing Requirements, Community Outreach, and Eviction Moratoriums.

More about Keith T. Becker With over a quarter century of unparalleled experience as a real estate professional concentrating on all aspects of property management, Keith’s mission – both individually and with his team at DeDe’s Rentals – is to solve challenges. Whether calculating comparative property valuation, creative marketing, tenant acquisition, contract negotiations, administrating large-scale rehab projects, or navigating the minefields of the landlord/tenant relationship, DeDe’s has provided the most effective solution for any challenge. Keith applies knowledge, skills, and customer service developed over many decades, along with being able to rely on a dedicated team, reputable vendors, knowledgeable legal experts, and a continuing commitment to education in order to remain the recognized leader in professional property management throughout Santa Rosa and Sonoma County.

“The ABC’s of Property Selection” with Steve Crossland. Not all doors are created equal, and understanding how to select the right properties/units is key to growing a successful and profitable property management business.

Steve will lay out a framework for how to define the three “buckets” that each unit falls into: A, B, or C. He’ll talk about how these buckets impact your bottom line, and how to be more productive and less stressed by transforming into an Authorized Fiduciary rather than a Subordinate Functionary.

More about Steve Crossland Steve is a Graduate of the McCombs School of Business at the University of Texas at Austin with a BBA in Management Information Systems. He is an active member and longtime volunteer in the Austin Realtor and Property Management communities, and is a regular national speaker and instructor on real estate, property management and business related topics.

A former computer programmer and business analyst, Steve brings analytical skills and attention to detail paired with a laid back common sense approach that makes him easy to work with.

“Positioned to Win: How Positioning Can Help or Hurt a Property Management Company” with John Bykowski. Sometimes, you don’t appear to be getting leads – or the right kinds of leads – no matter how much you spend on marketing. And, the leads you do get result in clients who aren’t happy, no matter what you do for them. The problem can be in a less familiar area of marketing: Positioning.

This talk will define positioning, explain the positioning process, and show examples of good and bad positioning with a specific focus on PM companies.

More about John Bykowski John Bykowski is the Co-Founder and CEO of Fourandhalf, Inc., a Marketing Agency that works exclusively with the Property Management industry. John has spent the last 9 years helping Property Management companies utilize the latest technology to thrive. He is an experienced speaker and an author of the Property Management strategy blog.

You can learn more about our PM Grow speakers and events at PMGrowSummit.com.

In addition to gathering the latest ideas from these industry experts, you’ll also have the opportunity to engage in workshops where you can ask questions, network, and brainstorm with like-minded property managers and industry professionals.

Plus, attendees at PM Grow will get access to exclusive conference-only discounts on ALL Fourandhalf marketing products.

So don’t wait! PM Grow Summit is less than two weeks away. If you have any questions about PM Grow or Fourandhalf, contact us!

Register now at PMGrowSummit.com.

Get These Exclusive Fourandhalf Coupons ONLY at PM Grow!

The following coupons will only be valid for PM Grow attendees between January 20th – 22nd.

The post Featured Speakers at PM Grow Summit 2021 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Jordan Bennett is from the National Automated Clearinghouse Association, which is most easily identifiable to us as ACH. We’re talking about the role of the association and why it’s necessary to follow the carefully curated best practices that they’ve put together.

Property management companies are often third-party senders, since you collect rent and pay it to your owners.property

We asked Jordan to join us on The Property Management Show to talk about how Nacha affects property management companies and what you need to know.

Key Takeaways: * Nacha is the National Automated Clearinghouse Association, which oversees the ACH Network, the backbone for the electronic movement of money and data in the U.S. * Property managers have responsibilities and can be held liable as third-party senders. * Property managers can undergo Nacha Certification, which establishes them as a trustworthy company that has taken steps to ensure money is handled correctly.

Understanding the National Automated Clearinghouse Association Nacha essentially manages the ACH network.

The association makes the rules and educates all participants. When property managers collect rent from tenants and pay that rent to owners, it means they’re participating. There are responsibilities that come with that participation, and understanding the different roles will help keep everyone happy.

Nacha has direct members, which are banks and other financial institutions.

There are also third-party senders, and those are payment providers. Most property managers fall into this classification. Nacha has rules in place that benefit everyone who participates. They help banks work with third-party senders. They maintain the high level of trust that’s necessary when payments are made and received electronically. The money has to continue flowing properly.

All of the direct members and third party senders on the ACH network are subject to the large rulebook that Nacha keeps to detail and interpret all the rules. They can break down what each rule means and how they are defined.

Property Management Companies as Third-Party Senders Property managers wear many hats. Being a payment provider or a third-party sender in the ACH network is only one of your roles. You probably don’t give it a lot of thought. But, you need the protections that are in place when your tenant originates a payment and that money comes to you and then you pay your owners using your own financial institution. You expect things to go smoothly – but will they always?

Many property management companies handle their rent collections and disbursements through their property management software. This doesn’t release you from the responsibilities of a third-party sender, however. You’re still the one collecting account numbers and routing numbers and banking information.

If you’re collecting rent and paying owners without involving your own bank, the property management software would qualify as the third-party sender. But most property management companies do have money moving in and out of their accounts.

The flow of payments is your responsibility.

What Can Happen During the Payment Flow? Something that has happened more than once is a property management company going bankrupt. If tenants pay rent before the property management declares bankruptcy but those rents aren’t paid to the owners because of the bankruptcy, there’s going to be a wild disconnect.

The funds will be held in different ways depending on the bankruptcy laws in your state. The ACH rules are in place to protect the incomplete transaction. There will be a lot of owners who are upset and a lot of tenants who are insisting they did pay their rent, and the commotion will be messy. Consumers – or tenants and owners – are not going to know the ACH process. There are protections in place for them, but it’s going to be complicated.

Fraud is another issue that can cause problems for property managers as third-party senders.

If you’re not following good quality control and you don’t have strict processes in place, it’s easy to be a victim of fraud. Someone could call you claiming to be one of your owners. He could say he’d like to change his bank account information so that all future payments are routed into the new account.

Are you going to take his word for it and make the change over the phone, or do you have controls in place where you’ll call him back at the number you have on file to verify the request?

As a property manager, you can think you’re providing great customer service while at the same time handing over rents to a fraudster. You need risk management and checks and balances.

Property managers can think of Nacha standards the same way they think of NARPM standards.

Nacha has a certification program, which can be beneficial to property management companies.

Nacha Certified The Nacha Certified program lays out compliance expectations for third-party senders such as property managers. The program was designed to try and help providers do what they’re supposed to do. It’s a place for best practices, recommendations, and process reviews.

There’s a full rulebook that’s condensed into a single document, which is thorough. Property managers can access that document at nachacertified.org.

As a third-party sender, the Nacha Certified program will recommend an audit. A risk assessment can be a critical and important tool. It’s simple in concept and you don’t have to pay for it within this program. You can evaluate your risks and decide where most of your challenges currently exist. Maybe you create a payment file and send it off without having dual controls. Will two people look at something before it’s changed? This audit or risk assessment tool is a good example of how the certification program can provide extra protection and risk management.

Why Property Managers Should Get Nacha Certified The Nacha certification will establish you as a trustworthy company that has taken steps to ensure money is handled correctly.

Banks and auditors you already work with may find this information helpful. In some states, property managers are required to apply for money transmitter licenses. This certification will help you prepare for that.

When you demonstrate your commitment to protecting consumers, you increase your credibility.

Property management companies can also look for software that’s Nacha Certified. They currently have nine companies that have achieved certification and they’re looking to add more. Some of them do payments processing for rental properties and property managers.

Companies such as banks who look at a Nacha Certified business know that a lot of their own criteria have already been met. They’ll do their own due diligence, but moving through their screening process will be a lot easier for a company that’s already been certified by Nacha.

The list of companies who are certified can be found at Nachacertified.org. And if you have any questions on this process, you can get in touch with Jordan at jbennett@nacha.org. Follow them on Facebook, LinkedIn and Twitter.

If you have any questions about the podcast, contact our team at Fourandhalf.

The post Why Property Managers Should Know About Nacha appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Summary: Jeremy Tallman is the President and Managing Broker for T&H Realty Services in Indianapolis. He is talking with us on The Property Management Show today about pre-marketing and the success he’s had in building waitlists for properties that are soon to be available in his portfolio of rental homes.

While this isn’t a new concept in the property management and real estate industries, it has come to mean different things to different people.

We’re looking at how it impacts the industry and what it might mean for you in limiting vacancy rates and marketing your rental homes more efficiently.

Key Takeaways: * Pre-marketing is the process of marketing a rental home and generating interest before it is officially available for showings. * Property managers should take advantage of software that allows them to build waitlists with interested tenants * Pre-marketing & building waitlists can save property managers time and money, but only if you have the proper internal processes in place to support your pre-marketing system.

Catch our full Property Management Marketing series:

Property Management Marketing | Part 1 | The Rise of Zumper & Facebook Marketplace

Property Management Marketing | Part 3 | How Owner Marketing Has Changed

Pre-Marketing in Property Management: The Baseline Jeremy does not show any homes while tenants are still living there. This was something he did before embracing the pre-marketing platform he currently uses, but now all showings commence after a property is turned and made ready.

The right systems must be in place for effective pre-marketing. Technology plays a big role.

What pre-marketing means to Jeremy is giving the property the best chance to be leased quickly as soon as showings can occur.

Rently is a valuable tool in this process. Like other showing services and lockbox resources, it provides a waitlist that helps with pre-marketing.

Previously, if a home was coming onto the rental market sometime in the future, you could simply say “Coming Soon.” A lot of property managers found that difficult to manage, however. People would call about availability and information. That’s hard to administer and scale. Keeping track of all the follow up can be overwhelming.

With Rently, Jeremy and his team put homes in waitlist mode. This is the pre-marketing and pre-leasing sweet spot. People can register for the waitlist and they’re immediately informed when it’s live and ready to be seen.

Staying on top of expectations is a big part of this. If you say your property will be available on October 15, people on that waitlist will expect it to be ready for viewings on October 15. Otherwise, you can create a lot of frustration.

The software allows property managers and marketing professionals to see who is on the waitlist. They know how many people are interested and they know when those prospective tenants joined the waitlist. The data is valuable in setting a final rental price, collecting applications, and scheduling showings.

What Does the Waitlist Show Renters? On the waitlist, prospective renters have access to the same pictures and descriptions that they’d see on any normal listing.

With brand new properties that have never been leased and are occupied by an inherited tenant, Jeremy’s team will have to get whatever pictures they can, at least of the property’s exterior. If the home has been marketed in the past, those older photos will be used so people can get a general sense of what it looks like inside.

When the listing goes live, there’s an accurate portrayal of the home. New photos can be taken with any updates that have been made during the turnover. As most property managers know, turnovers can take two days or two months, depending on the work that’s done. Sometimes, the floors have to be replaced and the walls re-painted. Other times, it’s a simple cleaning and lock change.

Internal Property Management Processes Required for Pre-Marketing It’s not just having access to great technology – it’s how you use it.

Internally, you need processes in place to ensure the availability date is accurate.

Technology is often slow moving in property management, and a lot of different people are trying a lot of different things. Some of the new technology is exciting and some of it is cumbersome. Rently and products like it are some of the biggest game changers the industry has seen in years, Jeremy believes.

The Challenges Pre-Marketing Can Solve Before adopting this strategy of pre-marketing, sales managers at Jeremy’s company were responsible for visiting rental homes as soon as a tenant gave notice that they were leaving. They’d take a look around and determine whether the property could be shown in its current condition.

Showing occupied homes was difficult due to all the scheduling that had to be done around the existing tenant. Today, it would be impossible with COVID. Even before the pandemic, it was a frustrating process for future tenants, current tenants, and property managers. No one wants to see other people’s furniture in the home they’re hoping to rent.

Expectations were also hard to meet. Prospective tenants didn’t know what Jeremy’s team was planning to do during the turnover. They’d ask about new paint and clean carpet and whether the blinds would be replaced. Promising those things required that the management company delivered.

The New Challenges Pre-Marketing Creates With the pre-marketing strategy, expectations are clear and easy to meet. When a tenant goes in to see the property, they do it on their own schedule and they know that this is the home they’re going to get. The end result is minimal vacancy times, even while waiting until the property is empty.

The new challenge is making sure the property is available on the date that it has been advertised as available. Jeremy is careful to include a couple of weeks of lead time to ensure he doesn’t list an availability date that’s too soon. The two-week window has worked well. Property managers are responsible for the turnovers, so they’re in place, at the property, coordinating with owners and contractors.

Property management is a push and pull industry. Every day of vacancy costs money and communication has to be tight.

Tighter Systems and Fewer Days on Market Days on market are extremely important, and most property managers closely watch that data.

It’s difficult to know whether the pre-marketing system and the waitlist has any impact the number of days a home is listed on the market. That’s because the market in central Indiana has changed so dramatically over the last few years. There’s a lot more supply but not a huge difference in demand.

Typically, the rental season in Indianapolis begins in January and ends in July, when schools are preparing to go back. However, COVID has changed that.

There’s no question that Jeremy’s pre-marketing plans have impacted the daily marketing. However, the market is always going to drive how many days a home is on the market. Currently, there’s an average of five days that a home Jeremy is leasing is on the market. He can’t say that’s because of the pre-marketing because everything is so different now.

The real benefit has been to his staff and his ability to meet the needs of prospective tenants. Homes can be shown seven days a week and 12 hours a day now. He’s gone from managing six full-time rental agents to one full-time rental marketing manager. Staffing is leaner and there’s a lot less frustration for his team members.

Syndication and Rental Property Marketing Zillow is a hot topic lately, and a lot of property managers who once loved marketing homes through Zillow now hate it because it’s gone from a free platform to one in which property managers have to pay for listings.

Jeremy isn’t a hater.

Zillow and their network of rental sites, he says, has always been the best marketing channel he uses.

Even with the volume Jeremy has in their system and the costs that they’re now incurring, it still makes sense. He wasn’t going to take away the best marketing platform for his owners.

No one is happy that a once-free product is now charging for its services. But, you have to remember they provide an excellent service. Property managers are paying for something they need and benefit from.

Using a paid service requires more strategic marketing.

Jeremy says paying to list on Zillow has required his company to become smarter with how they syndicate. When it costs nothing, it’s easy to market everything everywhere. When you’re paying, you want to be careful with timing. You want to be intentional about when you release your listing for syndication.

With the waitlist he has in place, he’ll go to full syndication with a property when he sees it gaining traction. This is to drive interest before it goes live.

Jeremy knows that a lot of his competitors did not stick with Zillow, and they’re noticing a big difference in traction and interaction. Those property managers will probably come back to the Zillow suite of rental sites. It’s going to be difficult to market a property without them.

Know Your Numbers: Pre-Marketing Takeaways Every property management company is different, but if you know your numbers you know whether cutting off Zillow will hurt more than it helps. Knowing your numbers allows you to be flexible when it comes to pre-marketing a property. It allows you to know how many people on a property’s waitlist means you can probably raise the rental price.

You’re helping your owners rent properties faster, and you’re helping your staff work with less stress and more efficiency.

Self-service is what every consumer is looking for today, including renters. No one wants to call on the phone to schedule a showing. We order our food online and we do our shopping online. We should also be able to register for showings and join a waitlist online when we find a property we like.

The pre-marketing concept is an excellent selling point when Jeremy is talking to prospective clients. It’s a differentiator for his company.

With Jeremy’s help, we’ve learned the basics of starting a pre-marketing system. If you’re not already focused on getting your rental properties onto the market at the right time, you might want to study this way of creating waitlists and generating interest.

If you have any questions about this podcast or anything pertaining to property management marketing, contact us at Fourandhalf.

P.S. Be sure to catch our full Property Management Marketing series:

Property Management Marketing Pt. 1: The Rise of Zumper & Facebook Marketplace

Property Management Marketing Pt. 2: Building Waitlists & Pre-Marketing

The post Property Management Marketing | Part 2 | Building Waitlists & Pre-Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

This week we’re taking a pause to find some moments of gratitude for the little things that keep us grounded and connected. Happy Thanksgiving everybody!

Some of our team’s favorite “small gratitudes” include:

• Taking a walk
• Gardening
• A puppy eating from a peanut butter jar
• A cat playing with a toy
• A baby waving at the camera
• Photos of our loved ones
• A fully-stocked wine fridge
• Chocolate chip cookies and milk
• Hot chocolate with the appropriate number of marshmallows (a fistful!)

To say that this year has been hard is a radical understatement. So we wanted to share with you the small joys that keep us going, because ultimately it’s those small moments of delight, all strung together, that give us hope and open our eyes to how many things we can be grateful for.

This Thanksgiving, wherever the holiday finds you, we hope you are warm, safe, and healthy. Take a deep breath and find a tiny moment of joy to be grateful for, and please feel free to share with us your moments of joy, so that we can celebrate (separately) together!

From our hearts to yours,

The Fourandhalf Family

P.S. Next week, keep an eye out for Part 2 in our Property Management Marketing series on The Property Management Show podcast! Get caught up on Part 1: The Rise of Zumper & Facebook Marketplace, here.

The post Small Gratitudes: Thanksgiving 2020 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Advertising your vacant rental units online has changed, and that’s due to some acquisitions and partnerships that we’re discussing today with James Barrett, CEO and Director of Business Development at Tenant Turner. On this episode of The Property Management Show, we’re taking a look at property management marketing and how the online marketplace has shifted.

Key Takeaways: * Market consolidation of rental advertising platforms has driven big changes in the industry. * You need both Zumper/Facebook Marketplace and Zillow to reach the largest pool of tenants. * Use these two KPI’s to make rental advertising spending decisions: the number of leads you’re getting from each source and which of those leads get signed. * Property managers should leverage automation and technology wherever possible.

Catch our full Property Management Marketing series:

Property Management Marketing | Part 2 | Building Waitlists & Pre-Marketing

Property Management Marketing | Part 3 | How Owner Marketing Has Changed

Craigslist is Out and Market Consolidations are In Generally, there’s been a transition away from Craigslist. Back in the day, anyone who ever advertised a home for rent in any market had probably used Craigslist. It was free and easy. When Zillow came along, it was a better alternative, especially once they acquired HotPads and Trulia. New features were available for marketing your properties, and individual landlords joined property managers in spending more time advertising their homes on those platforms.

The latest Craigslist killer is Facebook Marketplace, which has partnered with Zumper and Apartment List. The rental feeds on those sites have been directly integrated onto Facebook Marketplace, which is a huge disrupter in the industry.

Market consolidation has driven a lot of changes. Rent Path is a key player. They own Rentals.com and RentalHouses.com. Recently, they were acquired by CoStar, a huge company that’s further bulking up to compete with Zillow and Zumper. These are the players who will shape the rental advertising industry over the next few years.

Some of these consolidations are financially motivated. CoStar has a lot of money and a large collection of commercial data assets. Taking over a company like Rent Path which was struggling to maintain their competitive edge makes sense.

For more on the state of the rental property market, check out our conversation with Dave Spooner.

Platform Usability: The Costs to Market Rental Properties What does this mean for usability?

Through market aggregation there are fewer players, which means less competition. Zillow’s inclusion model said that if you were renting out a single-family home or a condo or any residential rental property with no more than 50 units, you didn’t have to pay to advertise on their platform. That was a Utopian time, and it no longer exists.

Zillow realized that to compete with these new consolidations, they’d have to start charging. Each player is looking for dominance and exclusivity. Everyone wants to be the Amazon of rental advertising, and with Facebook getting involved, it’s going to be easy for them to emerge as a major force. They’re a tech company and they already have a lot of eyeballs coming to their site.

Another benefit to the Zumper/Facebook Marketplace partnership is credibility. Facebook Marketplace might seem like a dubious place where people go to sell their Harry Potter DVDs. It’s not that. There’s now a serious interface for rental properties, and it’s generating a lot of leads and a lot of leases.

There’s a big difference between individually contributed content and the feed that’s integrated from professional rental advertising domains. Facebook, as we know now, has a lot of scammers. Not every account on Facebook is real. But, the filter comes with the Zumper partnership. Everything that’s contributed has already been verified. You’re getting polished, professional rental listings.

Which Platform Provides More Rental Leads? Tenant Turner has collected some data on the volume of rental leads coming in from both Zumper and Zillow. This is the million dollar question for landlords and property managers who are wondering where to advertise their rental properties, especially now that Zillow is charging for the privilege.

Zillow was on top for a long time and would account for 75 percent of leads through Tenant Turner. Remember that when we talk about Zillow, we’re including Trulia and HotPads and all the smaller sites that are syndicated. This Zillow platform represented three out of four tenant leads in Tenant Turner.

This has steadily declined, and the number of leads increasing through Zumper is directly related to the partnership with Facebook Marketplace. Zumper has been around for a long time. They’re established, but they never had the market share they needed and wanted until they got together with Facebook.

Now, Zumper is neck and neck with Zillow in terms of leads. That happened over two years.

Zumper also benefited from a lot of venture capital money. The return is starting to pay off now. There’s a huge acceptance rate with Zumper. Those leads are turning into leases pretty reliably. If you’re a property manager who isn’t yet leveraging this tool, it’s time to jump on board.

This doesn’t mean you should turn off Zillow and throw everything at Zumper. You need both.

Probability impacts priority. Property managers want to advertise on both platforms. Zumper is still free right now, so that might make sense as your starting point. But, don’t let Zillow go completely.

Key Performance Indicators for Rental Advertising James recommends two specific KPIs for property managers when they’re making advertising spending decisions.

• Track the number of leads you’re getting from each lead source.
• Track which of those leads ultimately results in a signed lease.

It doesn’t make sense to pay Zillow for a bunch of leads if those leads don’t convert. However, if you only get a few leads but every single one of those leads does convert to a lease – you should make the investment.

Here are the numbers from Tenant Turner. Remember – these are nationwide numbers and each market is different.

• Number of Tenant Turner leads through Zillow Group: 28 percent
• Number of Tenant Turner leads through Zumper/FB: 26 percent

The quality of leads are about similar, too. You might be concerned that Facebook Marketplace attracts a different demographic than Zillow. That may be true, but they end up converting the same number of leases. This was surprising, and it’s always hard to quantify the seriousness of leads. However, both platforms are successfully converting.

This data is a tool that property managers need to decide how and where to market their rentals.

The Move to Self Showings in 2020 To say there have been a lot of changes this year would be a dramatic understatement.

The pandemic has led to more virtual showings and contactless move-in processes. Technology is being adopted faster than ever before. For Tenant Turner, all these self-showings and electronic lockboxes have required them to emphasize scam prevention.

A lot of people moved quickly into a self-showing model without being prepared for it. Tenant Turner has always embraced self-showing technology because it’s effective. However, if you’re a property manager who never used it before and didn’t entirely understand it, you might have opened yourself up to problems and liability.

Contactless entry showing systems require protections. At Tenant Turner, there’s been a lot of work with machine learning and artificial intelligence (AI). There’s been accelerated learning about scammer behavior. It’s easy to identify and then, once a scam has been noticed, the AI at Tenant Turner follows what they’re doing so they can learn from it. Monitoring systems are critical.

Getting an owner on board with self-showings is usually the first impediment for property managers. The pandemic has helped them become more comfortable with the concept. No one wants to wander around an open house with 10 other people right now.

James says he expects a lot of this technology to stick around even once the pandemic passes, but that the Tenant Turner data shows that half of all showings are still being done in person. For a while, in the height of the pandemic, contactless showings were up to 80 percent. Now that people have started to get back to some version of their normal lives, in-person showings are back. Some people simply prefer having someone there to show the home.

The biggest piece of advice James has for 2021 is to leverage automation wherever possible. Posting manually on Facebook Marketplace is cumbersome and it will work better if it’s automated. People are leaning into technology, and that’s ultimately going to be good for the property management industry.

If you have any questions about this podcast or how to automate the marketing of your vacant rental homes, contact us at Fourandhalf.

The post Property Management Marketing | Part 1 | The Rise of Zumper & Facebook Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 Today’s guest speaks Danish, is an adventurous wine-drinker, and has 29 years of experience within the tradeshow industry. He also happens to be the CEO of Fourandhalf and PM Grow Summit.

That’s right, it’s our very own John Bykowski!

John joins Marie and Brittany today on the Property Management Show podcast to discuss PM Grow Summit 2021, which will take place January 20th – 22nd. They talk about this year’s concept and theme for the Summit, the decision to go virtual for 2021, and why this virtual conference is unlike any other you’ve attended.

Lean forward, listen in, and get excited — we can’t wait to unveil what we’ve been planning.

What’s PM Grow Summit? PM Grow Summit is a property management conference designed from the beginning to focus on how property managers can run their business more effectively. NARPM is a great resource for getting the nuts and bolts of property management, but if you want to get exposed to the latest innovations and ideas on running and growing a business, you want to be at PM Grow. PM Grow brings in the best ideas for business growth from outside property management, and then teaches business owners, marketers and sales teams how to leverage those ideas within the industry.

In the first year of PM Grow, using video content in your marketing was a new and novel idea, so that became the focus of the conference that year. In later years, PM Grow tackled company structure and the importance of hiring a BDM for your business. PM Grow also helped put EOS into the mainstream within the property management industry.

For 2021, PM Grow’s theme is: Removing Barriers to Growth.

There’s been feedback from previous years that some property managers have trouble implementing all the ideas that they get from PM Grow. Learning the latest trends in the industry won’t help your business grow if you can’t implement them. Between this feedback and the obvious barriers to growth being presented from COVID-19 this year, “removing barriers to growth” felt like an extremely relevant and timely topic.

You may be wondering what some of these barriers are that will be covered at the conference? Here are our main Keynote Speakers:

• Keynote Speaker – Greg Crabtree: Will speak about financial barriers to growth, with a Q&A to follow.
• Keynote Speaker – Libby Gill: Will speak about how to overcome mindset as a barrier to growth and how you can lead people through change, challenge and chaos.
• Keynote Speaker – Chuck Blakeman: Will speak about how to get off the treadmill and how to overcome time as a barrier to business growth and making money.

There will also be a variety of workshops you can attend to get more individualized attention and answers to your questions. Visit the website for more information.

To Go Virtual or Not to Go Virtual? John says there isn’t a 100% satisfying replacement for in-person conferences. The energy, the hugs, the atmosphere: those things will never be replaced in a virtual platform.

But John still felt that PM Grow had value to offer property managers, especially in a world dramatically altered by COVID-19. The best way to overcome the hurdles that property managers are facing right now is for the industry to come together and share ideas with each other.

So, PM Grow was definitely happening. But with COVID cases rising and laws prohibiting large gatherings, an in-person conference was impossible.

A survey sent out to property managers had mixed reactions — the overwhelming majority wanted PM Grow to happen, but many were concerned about the health risks of an in-person event.

Frequently Asked Questions About the Virtual PM Grow Summit All these factors meant that PM Grow had to go virtual. But there were several concerns about putting on a virtual conference. We’ll tackle them one by one.

Do I have to be on a screen for three full days? Nope, you won’t be forced to be in front of a screen for three full days. The conference will have a mixture of on-demand content and live events, so that you have flexibility to juggle both the conference content and your day to day responsibilities.

We did this because we understand that screen fatigue is very real. You are free to log in to the virtual world outside conference hours to catch up on on-demand content you missed during the day. The recorded content will also be available to all attendees after the conference.

We want you to be able to maximize your time during conference hours engaging with other people, attending live sessions, and connecting with fellow property managers as well as vendors.

Is this amounting to a glorified Zoom meeting? Definitely not! When you log on to the online platform, you will create a personal avatar that you’ll control, and who will serve as your “virtual representative” as you walk the 3D world of the conference. You will see and be able to interact with other attendees’ avatars — shake hands, talk to people as you approach them, play games, ride speedboats with your friends, etc. John said it felt like playing a video game, in some respects!

When you want to talk to someone and see their actual face rather than their avatar, you’ll also have the ability to connect your camera to designated screens within the virtual world. Choose your own adventure so to speak!

One of my favorite parts of PM Grow is getting to network and hang out with people. Will I still be able to do that? Absolutely! This is one of our favorite parts of the platform. As your avatar wanders the conference, let’s say, the Exhibit Hall for example, you’ll pass by other attendees’ avatars. If they’re engaged in conversation, you’ll hear their audio get louder as you approach, and softer as you walk by them, just like in real life! You can even pause to listen in, and ask to join the conversation.

If you want to have a private conversation with someone, look for the blue halos circling groups of tables and chairs. When you step inside one of those blue halos, your conversation becomes private. No one walking by will be able to hear what you’re saying.

My computer isn’t built for fancy technology. Will I still be able to experience the conference? Yes! You do not need to have a high-powered computer in order to attend the conference. However, we do recommend that you log in on a desktop computer or a laptop, rather than a tablet or cell phone. The virtual platform runs smoothest on a computer setting.

I’m not tech-savvy. Am I going to be overwhelmed by learning a new piece of technology? Not at all, because you’re in good hands. Staff from both Fourandhalf and from the virtual platform provider will be on-call during the conference in case you have any questions or concerns. When you first log on to the virtual space, you will be greeted by a staff member who is there to help you get familiar with the software and answer any questions.

We can say from experience that the software is extremely user-friendly and intuitive to use. If you’re comfortable using your keyboard arrows to move your avatar, you can do that. If not, you can use your mouse to walk around by clicking on where you want your avatar to go. There will also be a menu on the left which will allow you to instantly go to certain rooms/areas without having to walk all the way from point A to point B.

We’ll also be opening up the platform a little early before the conference begins, so that you have time to get acquainted with the software.

What happens if I miss an event? No biggie. If you miss one of the live events, it will be recorded and made available to you to watch on your own time once the conference is over.

Attending a conference from home will be difficult because I have kids / responsibilities I need to attend to. Is it worth it for me to attend if I can only be available for short periods of time?

Absolutely. You can tailor your experience of the conference to whatever your at-home needs are. Feel free to pick and choose the live events that you’re most interested in, tune in for those, and watch the recordings of the ones you missed. Or, if you want to use conference time to catch up with old friends or make new acquaintances, use the conference to expand your network. We want this to be as accessible to you as possible.

How much does it cost to attend the virtual PM Grow Summit 2021 conference? The virtual PM Grow Summit 2021 is just $450 per person. That’s more than half off the regular in-person price! We’re so excited for the possibilities this opens up. Smaller property management companies that may not have been able to afford attending the in-person conference may be able to attend the virtual one. If you’re accustomed to sending just one or two members of your team, perhaps this is the year that the entire team is able to come, and reap the benefits of being in a room with like-minded entrepreneurs.

As a bonus, we’re giving away free copies of Chuck Blakeman’s much-awaited book titled “Rehumanizing The Workplace By Giving Everybody Their Brain Back” to the first two hundred (200) people to register for our virtual property management conference.

How do I register for PM Grow Summit 2021? Learn more and get tickets at pmgrowsummit.com.

The Future of PM Grow Summit Is PM Grow Summit going to be virtual forever? No, definitely not. We all miss in-person events, and just because our current circumstances have necessitated a virtual platform for this year’s event, doesn’t mean that PM Grow won’t be back in full swing sometime in the future.

So stay healthy, stay tuned, and get registered for PM Grow Summit 2021! The conference is January 20th through the 22nd.

We can’t wait to see you in our virtual world.

The post PM Grow Summit 2021: A Whole New (Virtual) World appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Over the last few months, there’s been a new development at the National Association of Residential Property Managers (NARPM). The Women’s Leadership Council has been formed, and it’s growing. This group is still new and a work in progress, but their first event is coming up, and we asked Kellie Tollifson (NARPM President) and Chrissy Wade (Wellspring Property Management) to join us and talk about why this group is so necessary and what it aims to achieve.

Key Takeaways: * The Women’s Leadership Council is a group that was formed with the intention of providing women in property management with more confidence and strong public speaking skills * Kellie & Chrissy are hoping to eventually host quarterly events and make this organization a new committee at NARPM. * This is a new group that is in the process of growing and evolving. The founders’ goal is to make this group as inclusive as possible. * Their first event is “Elevate your Game & Take the Fear Out of Public Speaking” on November 12, 2020 at 11:00 a.m. PST and 2:00 pm. EST

Meeting a Need in Property Management Leadership Women often don’t feel represented at industry events, and that’s not unique to the property management industry. When Chrissy began talking to other women about this, the response was incredible. She received a lot of feedback and private messages from women who wanted to do more and expressed a desire to be speakers at different events and conferences.

One of the problems that Chrissy ran into was that many of these women who wanted to speak, didn’t have a huge portfolio of past speaking engagements or leadership roles. So the first step seemed to be to prepare women for those public speaking engagements. Chrissy felt strongly about not putting an inexperienced woman on a major stage if she’s never had that experience.

So, Chrissy and Kellie began talking and recognized the interest in and importance of building confidence and developing public speaking skills for women in the property management industry. A lack of experience in public speaking is a huge barrier to leadership positions for women. The group’s first event is aimed at removing a lot of the fear and uncertainty about speaking in public and sharing your voice.

Encouraging Women to Speak Up The first event is called Elevate your Game & Take the Fear Out of Public Speaking. The keynote speaker is Dr. Michelle Mazur, who runs Communication Rebel and has made a business out of developing speakers. She’s going to talk about removing a lot of the barriers that women feel, which will empower them to have their voices heard, whether that’s in the boardroom, in small group meetings, or in large conferences.

Participants will come away with tools to fortify their ability to speak up. Our society has set up and reinforced expectations of women that make it difficult for them to feel safe and confident speaking their mind. There will be practical tips on preparing to speak and accessing the confidence needed to move forward professionally and personally.

Historically, women haven’t been encouraged to speak up. Women have been raised for generations to be supportive and nurturing — and quiet. Women need the tools to trust themselves and navigate an industry that historically has favored men’s voices over women’s.

A lot of women in leadership know that one of the first steps in taking the initiative in the business world is accessing confidence in their own thoughts and ideas.

Communication is where everything starts.

Events like this will give women with diverse backgrounds extra tools and resources to lead them towards communication, leadership, and success.

Empowering Everyone to Do New Things This event encourages participation from all genders. The panel will include men and women speakers and there is a broad spectrum of topics. The main goal of the event is to empower people to do something that they felt like they couldn’t do before.

The current working name is the Women’s Leadership Council, but this group isn’t only for women. The council was formed with the idea that every voice matters. It’s open to all genders.

The idea is that everyone can learn from one another and elevate the property management industry and each other. Anyone who wants to be a better business person is invited to participate.

Want some advice for feeling confident with being on camera in your video blogs? Check out our marketing manager Marie’s 5 tips for being on camera.

NARPM and The Women’s Leadership Council The Executive Committee and Board of NARPM had been thinking about building roles for more women and putting together a group that focuses on women’s challenges and concerns when Chrissy approached the organization with this idea. In December, this concept will go to the Board of Directors and be proposed as a new committee at NARPM.

For the last few years, NARPM has been doing leadership training in local chapters. It’s a two-day event where chapter leaders come together and spend time talking about how to lead a local chapter. It’s been very effective, and developing leaders within NARPM has been an ongoing priority.

Kellie has been working to bring the Leadership University to NARPM, as a leadership series where people can develop their own skills. The Women’s Leadership Council fits into this beautifully. There are different purposes, missions, and visions, but talking about leadership issues unique to women is something that the entire NARPM leadership series can embrace.

Gender Obstacles in Property Management In addition to offering concrete tools and resources, this group aims to give women a chance to share the obstacles that they’ve overcome.

Kellie shared that she still has owners who prefer to talk to her husband instead of her. When Chrissy was managing a commercial building, she was fired because they thought a man could do it better. It’s inspired both of them to educate others about this type of bias in the industry and encourage other women to share their experiences.

Often, a woman’s expression of something is given a different label than a man’s expression of something, even when they are expressing the same thing. Women who are confident when they speak are often labeled ‘aggressive’ while confident men are labeled ‘assertive.’ Leveling the playing field starts with sharing these experiences and acknowledging the gender biases and prejudices at play. Learning to see and identify this kind of bias paves the way for dismantling it and creating a truly inclusive industry where every voice is heard.

Another obstacle is the way women have to carefully present their thoughts and opinions in the workplace in order to avoid the judgements coming from the gender biases we mentioned above. Women expressing too much emotion can be labeled as “hysterical” while expressing too little may come off as “cold.”

Kellie talked about feeling emotional during the awards ceremony at the recent NARPM convention. As she was giving out awards to people who had worked really hard, she kept telling herself not to cry. It felt embarrassing, but having feelings in a professional environment is okay. She spent a lot of time thinking about that, and then realized that most men probably wouldn’t spend that much time agonizing over a few minutes of human, emotional connection.

In order to “fit in” and succeed in a male-dominated industry like property management, women often feel forced to confine themselves to gender stereotypes and/or become “one of the boys.” Pigeon-holing women in this way is a detriment to the industry as a whole. It silences valuable insights, experience, and ideas that could propel the industry to new heights.

Being vulnerable, and bringing your whole self to the table, is a vital part of being a leader.

Inclusivity and Growing Diversity Change is a slow process. It happens over time, and it requires intentional steps and education. The Women’s Leadership Council is brand new, but it’s already thinking about what it can do better.

For example, everyone on the panel at the upcoming event identifies as white. This isn’t by design, but it’s an outcome from working quickly to get people who were able to jump on board right away. Endless panels of white men and women is not where the group plans to go. Every voice matters, and incorporating women of color, people with disabilities, members of other genders and identities is a huge part of the future. There’s a strong desire to have a more diverse group.

One of the best ways to increase diversity is to spread the word. Chrissy and Kellie are asking everyone to talk to their business contacts and professional partners to grow this group.

The Call to Action here is pretty simple: Share your experience. Get involved.

If you ever felt like your voice didn’t matter, or it seemed like you weren’t represented in your industry, contact this council.

The first event is “Elevate your Game & Take the Fear Out of Public Speaking” on November 12, 2020 at 11:00 a.m. PST and 2:00 pm. EST. It’s free to NARPM members and $25 for anyone outside of NARPM who would like to join.

If you have any questions, contact us at Fourandhalf and we’ll put you in touch with the right people.

The post Introducing the NARPM Women’s Leadership Council appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Growing your property management business requires that you use several different marketing strategies. If you put all of your marketing dollars in one basket, you’ll reach the same potential audience over and over again, leaving a large number of prospective landlords and investors completely unaware of who you are, what you do, and how you can solve their problems.

3 Marketing Strategies for Property Managers In this three-part video series, we want to show you how important it is to approach your marketing plans from a number of different angles.

 Part 1: Making Your Website A Marketing Magnet Here at Fourandhalf, our team has spent a LOT of time researching, creating, and coming up with new ideas for great property management websites that attract and convert leads. When considering whether your website is operating at its fullest capacity, ask yourself these three things:

1. Does my website make a great first impression?
2. Am I answering my client’s pain points with thoughtful, researched blogs?
3. And is it easy for my potential leads to get in touch with me?

If there is any uncertainty in your answers to these questions, it’s time to update your website and boost the quality of your content. Right now Fourandhalf is offering $3,000 off a brand-new property management website when you sign up by November 15th, 2020! To get this limited time offer, set up a 1/2 hr chat with Logan by clicking here.

With a solid website in place, it’s time for you to turn your attention to Part 2: Pay-Per-Click Ads.

 Part 2: Pay-Per-Click (PPC) Now that you’ve got a conversion-driven website in place, let’s talk about PPC, or pay-per-click ads.

PPC ads can help you generate owner leads, especially if you’re not showing up on the first page of search engines in organic or local searches. While “Google Ads” are certainly the most well known, you should also consider placing ads on Bing, Yahoo, and social media. Use these five questions to set up and evaluate your PPC campaign:

1. 1. Does your PPC campaign have a great “hook” that speaks to the types of owners you want to attract, as well as a great “call to action” when they click on the ad?
   2. Are you using keywords and phrases that your leads are searching for, and are you monitoring their performance?
   3. Have you created a trackable phone number to keep tabs on which calls you’re receiving are directly related to your PPC campaign?
   4. Is there a landing page linked to your ad, with one specific call to action aimed at converting leads?
   5. Does your PPC budget allow you to compete with your competition?

PPC is a useful tool for generating and capturing owner leads – if you’ve taken the time to answer these questions and utilize your PPC budget effectively. Our team has been working with PPC for years, and we can help you navigate the complexities of running an PPC campaign. Dive deeper into paid ads and PPC with our 3-part blog.

Now that you’ve got a conversion driven website and an effective PPC campaign running, let’s talk about Lead Nurturing.

 Part 3: Lead Nurturing Generating leads won’t mean anything for your business if you don’t have a way to nurture them until they become clients.

So, what exactly IS lead nurturing? Lead Nurturing is a process through which you can warm up and move leads further down your sales funnel. This can include email campaigns, phone calls, and other marketing strategies.

When considering whether your lead nurturing process is working for you, think about these 4 questions:

1. What does a sales-qualified lead vs a marketing-qualified lead look like for your company?
2. How have you tailored your lead nurturing process to each type of lead?
3. Is someone in charge of your lead nurturing process?
4. Do you repeat your lead nurturing process for every lead you have?

These are the types of questions your marketing team should be using to regularly assess the effectiveness of your lead nurturing. Regularly monitoring your lead nurturing in this way will let you know if your process is boosting the percentage of leads you’re converting, or not, and if not, why that might be. Operating without a lead nurturing process is like leaving your prospects in the middle of the woods, and then hoping they find their way to you eventually.

For a more in-depth look at various kinds of property management leads, listen to our podcast with Jeremy Pound of RentScale.

Key Takeaways If after watching all three of our “Marketing Strategies” videos you’re thinking, “Ah! This is a lot!” — we get it. Creating a holistic, consistent and effective marketing strategy takes time and patience, and we’d never expect you to do everything all at once. But understanding where your current strategy is succeeding, and where it needs extra support, is the first step toward reaching your growth goals.

So, give us a call. You can send us a message, or set up a half-hour chat with a member of our team. We’d be happy to answer your questions and get you on the path to success.

The post Websites. PPC. Lead Nurturing. 3 Marketing Strategies for Property Management Growth appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

 This week, something a little different.

The annual NARPM Convention is just a few days away, and although it will look different this year with everything online, we are still providing opportunities for attendees to interact with our team members, ask questions, learn about our services, and even receive a free, live assessment of their existing website!

We are also excited to introduce three new innovations that the Fourandhalf team has been cooking up while we’ve all been stuck at home during the pandemic.

Here’s a sneak peek:

Motion Graphic Blogs First, we’re excited to introduce a new way to mix up your video blogs, and that’s Motion Graphic blogs! If you’re wondering what that those are, well, watch the video above!

Video blogs are by far the most eye-catching content you can produce, but not everyone is comfortable in front of the camera.

With our Motion Graphic blogs, we’ll write a script, record it as a voiceover, create the graphics, and all you have to do is approve the narrative! Voila – visually appealing, top-notch professional video content, without any of the hassle of doing your hair.

Want us to make you some? Send us a message and let us know.

Remarketing Campaigns Second, we’re now offering Remarketing Campaigns! Get your ads in front of warm leads that have already researched you, and gently push them further down your sales funnel!

After visiting your website, these leads will see your business appear in ads as they browse the internet – keeping your brand top of mind and reminding them of what you have to offer.

Want us to get a remarketing campaign going for your property management company? Send us a message and let’s chat.

The Fourandhalf Rewards Program Finally, we’re proud to introduce the Fourandhalf Rewards Program.

You’ve entrusted us with your website and marketing strategy for years and stayed loyal — and now we have better ways to reward you for it. Every three years, eligible website clients will get a brand-new website, on the house! Talk to us for more info.

Got questions about your eligibility? Send us a message and we’ll walk you through it.

Fourandhalf at The 2020 Virtual NARPM Convention We strongly encourage you to join us at the very first virtual NARPM National conference this October 20-22, 2020. And while you’re there, be sure to drop by the Fourandhalf booth. Our live, video conference events are as follows:

Submit Your Website For Live Marketing Advice Wednesday & Thursday, October 21 – 22nd @ 2p (EST)

Wondering how well your website is working for your business? Send us your existing website, and have the opportunity to get it reviewed, live, by members of our team! We’ll talk about the ways in which your property management website is serving your marketing strategy, and where it may be holding you back. Attendees are also welcome to join the video call to listen but not necessarily submit a website. Not all websites submitted will be guaranteed the opportunity to be reviewed.

Submit your website with the subject line “Website Assessment Submission” to marketing@fourandhalf.com.

We look forward to seeing you at the conference!

The post 3 New Fourandhalf Innovations & the 2020 Virtual NARPM Convention appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Dave Spooner from Innago joins The Property Management Show to talk about rent payments, whether delinquencies are as bad as we expected them to be in a time of COVID, and what the pandemic has meant for the rental property market and accelerating the embrace of property management technology.

Key Takeaways: * The number of delinquent rent payments during the pandemic isn’t as high as expected. * Occupancy is down in most major cities. * Worst case scenario is a spike in COVID-19 cases and another shut down of the economy coupled with no relief package from the government. * Best case scenario is existing trends continue and digital property management tech integration accelerates. * There are fewer barriers to setting up an online rent payment system & now is the time for property managers to implement it.

The Rental Property Market: Rent Payments and COVID-19 To gain insight on the current rental property market, we invited Dave Spooner to join us on the show. Dave is with Innago, a property management software company that helps with the automation of functions like communication and rental payments so property managers can focus on the more complex parts of their business.

Despite what nearly everyone in the property management field predicted, the data coming from Innago and other sources show that nationwide, the number of delinquent rent payments isn’t as high as expected.

For the most part, rent is getting paid, and it’s getting paid on time.

People are suffering economically from the pandemic and the shutdowns, so what’s happening to allow for this?

Two things, according to Dave: owner concessions and government help.

Why The Rent Delinquency Rate Isn’t As High As Expected Owner Concessions: First, landlords and property managers have chosen to make a lot of concessions. It has become important to collect whatever rent they can. There’s an eviction moratorium in place nationwide through the CDC, which views evictions as a public health crisis.

Landlords know they don’t have a lot of recourse, so they’re collecting whatever they can and working with tenants to avoid larger problems.

Some owners have reduced the total rent that tenants are paying or spreading out the missed payments over the next several months or offering credits. Landlords and property managers are working together with tenants to get some rent coming in.

Net rent may be down, which means the total amount that’s collected is likely lower than it was last year. But, it’s not as bad as everyone feared. The delinquencies are not up in any meaningful way. The market has adapted rapidly to this.

Property managers have largely initiated the concessions that are necessary to keep rent coming in. Good managers have been able to successfully navigate their owners through these unchartered waters. If you caught our podcast with Anna Myers on using data to navigate delinquency and economic uncertainty, her tips are an excellent resource.

Government Help: Second, government aid has contributed to helping people pay their rent. Payments are still coming in because those programs have worked.

Most renters received a $1,200 stimulus. Those who lost their jobs were eligible for unemployment and received a bonus. Those programs did assist with living costs and rent payments. Those landlords who took action to try and offset the economic challenges of their tenants and had renters receiving those supports are in good shape.

Geographic Nuances with COVID and Rent Payments Real estate is a local business and each market is unique. Some areas in the rental property market are more impacted by COVID-19 than others. Large cities have traditionally been magnets for people seeking employment, but cities were the hardest hit. Their COVID numbers have been much higher than other markets.

Occupancy is down about five percent, which is significant in a market like San Jose, San Francisco, Boston or New York. Why spend money on an expensive apartment in the city if there’s no demand to go into the city-based office? The shift to working from home has driven renters to seek less expensive housing outside of larger cities.

Younger people who don’t have partners or children may be moving in with parents or friends, which is also contributing to a lower occupancy rate. Renters may break leases or not renew their leases during the pandemic.

From an occupancy standpoint, the larger and more expensive markets are seeing decreases. Renters are finding other places to live for six to 12 months.

For a thorough look at property management market trends, check out our conversation with Jeff Hacker.

Tenant Retention While Occupancy Falls Ongoing concessions are necessary to avoid vacancies in the rental property market right now.

Not a lot of renters are trying to move into a new place during the pandemic. Of the folks that are moving, very few of them want to attend multiple showings or hire movers to come into their homes. There’s a trend towards avoiding that exposure. There’s less transition right now, and most people are staying put.

Data from a recent Transunion conference shows that there’s a sharp reduction in the number of showings that are going on, but a higher percentage in lease signings after a showing.

This tells us people are seeing fewer apartments and signing a lease as soon as they see something they like. Tenants only want to see one or two homes and they’ll take what they like. They’re not going to shop around as much and they’ve reduced the amount of searching they’re willing to do.

Showing software has become more popular and more necessary than ever before. More property managers are beginning to invest in technology that allows for digital showings and 3-D tours. There’s less physical interaction, and the landscape has shifted dramatically in this way.

One of the main takeaways from the pandemic is that shocks like the COVID-19 pandemic will accelerate trends. Things have to happen faster in order to keep up with the running of your business. Digital showing software always existed, but now it’s being sought by landlords and property managers who may have hesitated before the pandemic.

Predictions for the 2020/2021 Rental Property Market Worst case is that COVID rears up in a significant way and the economy shuts down and people get hurt economically all over again, even before they’ve fully recovered. That, coupled with no relief package from the government will make things very difficult for renters and the people who own their properties. We weathered this storm because of the relief package and if there isn’t more help but there is more virus, a sharp increase in delinquencies is certainly possible and eventually – evictions. That’s the worst case scenario.

Best case scenario is that the positive trends continue to accelerate. Digital showings and digital software for lease signings and online rental payments and tenant screenings can help. There’s an upward trend in that direction, which is exciting. If we can get the market back to normal in terms of dollars and cents and then accelerate the digital revolution, we’ll be in good shape.

Unfortunately, aggressive concessions may be the only way to keep rent coming in right now. Landlords and real estate investors didn’t get a lot of direct assistance with the CARES Act. They received indirect help because their tenants were able to pay all or some of their rent. What owners are likely figuring out now is how low they can go before they start to feel real cash flow problems.

Property Management Lessons Learned Property managers have a lot to learn from the COVID experience and smart managers are taking this opportunity to grow their businesses more intelligently in the future.

Here are the takeaways as we see them:

• Know your bottom line.
• Don’t take on a door just because it’s a door. You don’t want to work with owners who are over-leveraged and unwilling to make concessions when necessary. Embrace that ideal client – the one who earns you the most money for the least amount of stress.
• This will protect you when huge events like a pandemic occur.
• Move everything online.

Moving everything online is ideal, especially when you’re trying to make your entire process as contact-free as possible.

We know a lot of property managers worry about the cost of upgrading all their technology to meet these demands.

But Dave has some good news: there are fewer barriers to entry now.

Removing Barriers to Online Rental Payment Tech The market is shifting, and adopting automated technology for your property management business doesn’t require the same investment that it once did. Giants like Appfolio and Yardi are great programs that work really well, and in the past they were very expensive. Not only did you have to dedicate a lot of dollars – you had to dedicate a lot of time integrating those systems with your own.

Now, the digital revolution in rental management software has made it less difficult. You don’t have to worry about the resources and the barriers to entry that were once real hindrances to upgrading technology. A very small investment is required to see a pretty huge return.

You can also think about passing some costs onto tenants. Charging them a $5 fee to pay rent online, for example, will offset what you have to pay as a property manager. It can easily be rolled into the rent you charge when you have a new tenant signing a lease. With existing tenants, this might be a concession you make. You can offer the online payment and tell them you’ll be covering the $5 monthly fee for the first six months. After those six months, they’ll see the value in online rental payments, and they’ll be willing to absorb that $5 fee for the convenience of paying online.

Final Thoughts We covered a lot in this podcast, and hopefully you’re taking away the importance of staying diligent about your business. Stay focused and creative during these strange times and remember the people on the other side of your business decisions. Tenants are stressed. Your empathy will help you get through this pandemic and whatever comes next.

Property managers were typically hired by landlords to be the “bad guy.” You don’t have to be the “bad guy.” Be warm and empathetic while remaining consistent and on your path towards better business.

If you have any questions about what we’ve discussed with Dave, or about the state of the rental property market, please contact us at Fourandhalf.

The post The State of the Rental Property Market appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: We explain exactly what SEO is, why it matters for property managers, and what you can do to improve your own property management SEO.

Key Takeaways: * SEO stands for Search Engine Optimization. * SEO is the process of improving your website so it will rank higher on search engines. * Property managers need to monitor and improve their SEO in order to have their websites rank higher, be more visible to searchers, and attract more leads. * Some of the improvements property managers can make to their SEO include posting consistent, relevant content to their blog, ensuring their website copy is optimized for the keywords/phrases they want to rank for, and managing their online reputation. * SEO is a process, not a product, and takes time and effort to improve.

A lot of our clients get contacted by companies claiming their website needs “better SEO,” and they offer to fix it – for a price. But what exactly IS SEO? Why does it matter for property managers? And how can you improve yours?

We want to explain what property management SEO really is, what it isn’t, and what it means to you.

What Is SEO? SEO stands for Search Engine Optimization. It’s the process of improving your website so that it will rank higher and get more traffic from search engines like Google, Yahoo and Bing.

A search engine wants to find the most relevant information for its searchers. For example, if a searcher is looking for “San Francisco property management,” the search engine is looking for the most qualified, trustworthy and reputable companies to list first. But it can’t talk to you directly, so it uses clues on your website to determine how high your website or page should rank.

Property management SEO clues can include things like:

• How closely the content on your website matches the searcher’s keyphrase,
• How highly your company is rated/reviewed,
• How many other websites/pages have linked to your website,
• If your company has supportive pages on social media, and
• How recently your website was updated with the most relevant information

Images, videos, sound, and standard English are not easily parsed by the programs that the search engines use to decide what your page is all about. Most website design companies design for beauty and user interaction, and often neglect the background processes that cause their sites to be found in the first place.

Property Management SEO Ranking Factors Like we said in the beginning, SEO is a process, not a product, so no one can guarantee moving your website to #1 on Google. BUT, you do have control over many factors that influence SEO, and through careful research and effort, you can improve your ranking over time. Let’s briefly break down some of those important factors.

Keywords & Headings In the old days of property management SEO, there was a practice called “keyword stuffing”, where website builders would add a particular keyword that they wanted the website to rank for as many times as possible onto a page. The result was a webpage that was difficult to read for website visitors, but favorable to search engines like Google.

As search engine algorithms improve, “keyword stuffing” has become a thing of the past, and has even started hurting website ranking.

Think of the way that Google reads your website now as a newspaper. Google bots want to scan the headings of your content first, to get the gist of what the page is about. And then Google scans your paragraphs for keywords and phrases to make sure that it supports those headers.

Fresh Content and Blogs Search engines want to present the most relevant, recent information to its searchers.

They are on the lookout for websites with consistently fresh content. A great way to do this is with consistent blog posts about topics that your clients are searching for — for example, “What Does a Property Management Company Do?”, or for your tenants, “How to Pay Your Rent Online.” Regularly putting up relevant content like this is a great way of continuously improving your property management SEO.

For more on creating great property management website content, check out this blog!

Backlinks, Internal links and Social Media If you are shouting your content into the void, but no one is backing you up as a legitimate business, you’re much less likely to rank.

Creating social media accounts with links back to your website is an easy way to start to build that supportive network.

Search engines also look at how long users stay on your website — if users are jumping on, but immediately jumping off, that’s a red flag.

Internally linking between your pages is a good way of keeping users on your website, for a longer period of time.

Reviews & Online Reputation Search engines also look at your reviews to determine your ranking — how many do you have? And how highly ranked are you? This is why incorporating your online reviews onto your website is so important for property management SEO. We did a blog about online reviews and SEO recently if you’d like more info on that.

Image Tags & Titles “Reading” an image, for search engines, is tricky — so they rely on image alt tags and titles with the keywords you’re hoping to rank for to determine whether the image is relevant to the content you’ve posted around it.

Adding image tags and titles also improves your website accessibility, which can’t hurt your ranking.

How Long a Property Management Website Has Been Live One of the crucial factors for SEO is time. How long a particular URL has been around to be crawled by search engines can play a role in how you are ranked. This doesn’t necessarily mean that brand-new URLs won’t rank as well as older URLs – remember, this is just one factor of many – but it’s important to keep time as a ranking factor in mind when you are making decisions about updating your website.

We go into further detail about SEO, time and property management websites in this blog.

Why Does SEO Matter for Property Managers? For property managers, SEO is crucial. Your searchers are typically looking for property management based on their location. This means that it’s very important that your website is optimized for the area, or areas, that you are targeting.

For example, imagine Google has a user looking for “Santa Cruz property management”. One website has great content, excellent reviews, but hardly mentions “Santa Cruz” at all. Another website might have comparable content and reviews, but is very clearly placed in Santa Cruz. It’s much more likely that this website will rank higher than the other.

How To Improve Property Management SEO Improving your property management SEO takes time and patience. There are actions you can take to improve your SEO right now, but because one of the crucial SEO factors is time, it can take a while — 6 months, or longer — for the results of your labor to be seen.

This is why SEO is an ongoing task that you should be dedicating time to on a consistent basis.

Fourandhalf has spent years researching and creating search engine optimized websites for property managers. Browse our blogs for SEO tips you can start today, or give us a call to find out how we can help you with an SEO overhaul.

Final Takeaways If you remember nothing else from today’s blog, remember that property management SEO is a process, not a product.

It’s the process of improving your website so it will rank higher on search engines. And this is vital for property managers, so that you gain more visibility and traction in your area.

SEO is not an end goal. It is a means to an end, not the end itself. Your goal should be related to growing your business, like having more tenants paying rent online, getting more prospects visiting your website, increasing your lead generation, etc.

In our opinion, the most important function of SEO for property management companies is to attract more leads and contracts to your business. It doesn’t begin and end with being ranked Number 1 in property management search results. Being Number 1 doesn’t automatically mean you’ll get more contracts than Number 2 or 3, etc.

A lot of the companies that show up as Number 1 on search do not have websites that engage, so they have trouble attracting and closing new business, despite their search position. Keep your eyes on the prize, and don’t get distracted by SEO companies’ promises of higher ranking.

Got SEO questions? Send us an email, or give us a call.

The post Property Management SEO Explained appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Getting more property management leads takes more than just increasing your marketing budget. If you can understand how your reputation, budget, strategy, team and sales process work together, you can successfully reach your lead generation goals.

Key Takeaways: * Before you look at adjusting your marketing to get more leads, you need to be managing your online reputation. * Create a marketing budget based on the value of your management contracts, your growth goals, and the competitiveness of your area. * Build a holistic marketing strategy with both inbound and outbound marketing. * Involve your team in your company’s marketing efforts. * Establish a thorough and efficient sales and nurturing process.

As a marketing agency for property managers, we get asked these two questions all the time: How can I generate more property management leads, and when will I see the results of my marketing efforts?

Today, we answer those questions.

1) Manage Your Online Reputation Before you even start to think about property management marketing – how’s your online reputation?

Spending big bucks on marketing won’t mean a thing if you have a terrible rating. Even after you’ve got a lead – and paid for it – you can still lose the lead if your property management company’s online reputation isn’t up to snuff. When faced with the choice between a property manager with good reviews and a property manager with poor reviews, who are they going to choose? Why would a prospect call you instead of the 4-star management company down the street?

That’s why our first tip for getting leads, is to get a good reputation management solution in place. You could be requesting, reviewing, and responding to reviews internally, or you might outsource your reputation management to a company or software that can keep an eye on that for you. Just remember that you won’t be increasing your property management leads, if you haven’t managed your reputation, first.

With a solid online reputation in place, now you can start looking at your marketing budget.

2) Analyze Your Marketing Budget & Adjust Accordingly How much you spend on marketing depends on a number of factors, including the value of your management contracts, what type of market you’re in, how competitive your area is, the size of your company, and your growth goals.

Because of this high variability, there isn’t one number or a single formula that will work for all property management companies — however, it can be useful to think about how much to spend on property management marketing with this framework:

For every $3 you want to earn, you can expect to spend $1.

Let’s say you want to grow by 36 doors in a year, and you make $500 in profit per door. That means you’re hoping to make $18,000 in profitable growth.

36 doors x $500 profit per door = $18,000 in profitable growth

If we apply the 1:3 ratio to this number, you should be looking at spending at least $6,000 over the course of the year on sales and marketing.

Once you’ve got your number, start to break down how that amount will be spent. How much will you dedicate to sales, to owner marketing, and to tenant marketing? These numbers will be determined by your specific growth goals and by how competitive your market is. We gave a breakdown you can use as a guideline for determining how your owner marketing dollars are spent in this blog.

In general, the more you spend on marketing, the better your property management lead generation results will be. However, this doesn’t necessarily guarantee that the leads you’re getting are actually quality leads — and this is where marketing strategy comes in.

3) Build a Holistic Property Management Marketing Strategy It’s not enough to throw money at your marketing and hope some leads come in that stick. Being strategic about how and where you spend your marketing dollars, and what your specific goals are, will help you get the most qualified and best property management leads for your buck. You can start by building both inbound and outbound marketing strategies.

Inbound Marketing Inbound Marketing means you’ve got content that addresses your leads’ pain points, and they’re finding you through online searches. Are you posting regular blog content to your website? Do you have a FAQ page? What are you sharing on social media? Inbound marketing is all about establishing trust and expertise. This strategy will have initial higher costs as you are building your content, but over time, inbound marketing will deliver results with a dramatic reduction in per-lead costs.

Outbound Marketing Outbound Marketing means you’re paying for ads that are putting you directly in front of your ideal audience. Google Ads, Pay-Per-Click, and Data Driven Mail are all part of outbound marketing efforts. Outbound marketing is about getting in front of leads that are ready to sign with you. The cost of outbound advertising increases as more people compete with and bid for the same leads.

Below, we have a graph representing inbound and outbound marketing over time. The y-axis on the graph represents the money you would pay per contract while the x-axis represents the results a company would expect to see as time goes on. The main difference between the two strategies is the effect on the client acquisition cost after each method matures.

The key here is to find a balance between the two. For owners that are ready to sign, you need to have marketing material that’s landing right in front of them, but for owners who aren’t ready to sign yet, you need to be establishing your company as an authority in your local area. Attention paid to both will ensure you’re reaching the best property management leads. To determine where the holes in your marketing strategy might be, start with our free marketing diagnostic.

4) Get the Whole Team Involved in Marketing In our experience, hands-on owners and managers show much better marketing results compared to owners who are unresponsive and generally unavailable. This doesn’t mean you need to be micromanaging your marketing process, but you should understand each part of your marketing strategy, what the goal is, and whether you are meeting that goal or not.

Our suggestion is to set aside time regularly that you and your team meet to look at your marketing. It doesn’t have to be hours and hours, but meeting regularly will ensure that you’re on track with your marketing goals, and if you’re not, you can analyze the data to determine why that might be, and course correct if necessary. In the end, making marketing a regular part of your routine will save you time and money.

5) Establish an Effective Sales Process To Capture More Property Management Leads None of your marketing efforts or money put into it will mean anything if you don’t have an effective sales process. Someone from your company should be contacting any leads you get in 10 minutes or less. After that, you need both a consistent follow-up process and a lead-tracking process.

Follow-up at least 3 times after making initial contact. Just because they’re not ready to talk to you now, doesn’t mean they won’t be later.

And create a tracking system for all of your leads, so that none of them fall through the cracks. It could be as simple as a spreadsheet, or a more in-depth tool like LeadSimple.

We’ve got a great in-depth podcast episode on identifying, analyzing and fixing leaky sales funnels. This is a great place to start looking at your own sales process and collecting ideas for improvement.

Better Marketing = More Property Management Leads If you’re feeling overwhelmed by this lead-generation to-do list, relax. You’re not going to transform your lead generation in a day. It takes time and strategy and planning to create change.

The good news is, you CAN increase your property management lead generation! Improving your reputation, your marketing and your sales process is entirely within your control, and there are actionable steps you can take as soon as today. In property management, like every other business, you are either growing or shrinking. An average portfolio turnover can be as high as 30% per year. It’s important to keep renewing your client base, spending money in the right places and investing in marketing to grow your property management business.

First step? Reach out to Fourandhalf Marketing Agency for Property Managers. Tell us your growth goals and we’ll help you get closer to achieving them.

The post 5 Ways to Get More Property Management Leads appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: Facebook’s updates in August 2020 provide more opportunities to property managers to engage with their community, generate trust, and build their network.

Key Takeaways: * Posts & comments in Facebook Groups have more newsfeed visibility than Page posts & comments * Creating a Facebook Group as a property manager can nurture leads, improve tenant communication and encourage investors to work with you * Facebook’s improved accessibility updates broaden the reach of your posts * Users now have more control over how much of your content they see – you can use the data on this to create more content that’s performing better * Property managers can use Facebook’s online events for additional revenue & to increase engagement in their community

2020 Facebook Updates Property Managers Should Know About You may have noticed that Facebook is looking different these days – a LOT different! Between its cleaner, brighter design, its stronger emphasis on groups, improved accessibility, new page follow settings, paid online events, and more, there’s a lot to take in.

So we’ve picked out the updates that we think will be most relevant to property managers, and highlighted how you can make the most of them.

How Property Managers Can Utilize Facebook Groups The first Facebook update property managers need to have on their radar is Facebook Groups. Facebook is making Groups more important than ever. But what does that mean exactly?

Facebook Groups are becoming prioritized in newsfeeds. You may have noticed already that posts to your Page are showing up less and less in newsfeeds. This move actually started in 2018 with a new Facebook algorithm called Facebook Zero. We won’t go crazy into detail about that now (you can read more here), but what you need to know is that the intention behind Facebook Zero was to foster more tighter-knit communities on the app.

This explains why posts made in the Facebook Groups you’re a part of, are now all over your newsfeed.

So how does this affect property managers?

Well, you should keep in mind that organic posts on your Page aren’t reaching as far as they did before.

And we would strongly recommend that you consider building a Facebook Group associated with your Page.

What Kinds of Groups Property Managers Can Create We’ve come up with several ideas for groups that property managers can create on Facebook to grow their network, generate trust, and ultimately, increase their business:

Property Managers & Vendors in Your Area: Do a quick search on Facebook to see if there’s already a Facebook group that’s been created for your local area. If not, this is your time to shine! By creating and facilitating a place for local property managers and vendors to connect, share ideas and ask questions, you will position yourself as the authority in your area.

Property Owners & Investors: Start a group for both your current owners, and interested investors. If you’ve been creating content for your website blog, you can share that content in your group as well. Use this content to prompt discussions, Q&A’s, etc. Existing owners will appreciate learning from you and seeing how knowledgeable you are in the industry. New investors will like this opportunity to learn more about your company without having to commit quite yet. This is a perfect “incubating” space for new investors, where you can nurture your relationship with them and demonstrate your expertise.

Current Tenants: Use a Facebook group to create a community for your current tenants! You can post great educational content that will help them maintain their rental, and quickly send out relevant information. Establish yourself as a proactive and caring property manager by posting weather, traffic or event updates that could affect your tenants. Make your group “private” so that tenants feel more comfortable asking questions, and to protect their privacy.

Ultimately, the power of Facebook Groups is to build community and trust. Before you quickly come up with a name and throw up a Group, spend some time with your team talking about the purpose behind the Group, who will facilitate it, what content you’ll share, and how frequently you’ll check on it. A poorly managed Group can backfire, so be sure you have the resources, time, and clear vision of how the Group will operate before you get started.

Facebook is Becoming More Accessible It shouldn’t be a surprise that in 2020 part of the Facebook update includes accessibility improvements. These include but are not limited to:

• Scalable font sizes (improves reading accessibility)
• Contextual headings implemented in the correct, descending order (assists folks using a screen reader to navigate the page)
• Full keyboard navigation (for folks who can’t use a mouse)

To read more about the new accessibility improvements, see the update posted on Facebook Engineering.

Why is this important for you to know, as a property manager?

More accessibility on social media means that your content is able to reach a broader scope of people. This means a bigger pool of leads, owners, tenants and investors.

It also means that if you’ve been late to the game in terms of ensuring that your website is accessible, it’s time to step up! Check out our recent podcast episode and blog post about website accessibility, and reach out to us if you have any questions.

Facebook’s New Page Follow Settings As of August 2020, Facebook is testing out new page follow settings. Their test seems to include some users being able to control what posts they see from a page based on whether the post is a post, video, live video or offer, according to this article. If this update gets rolled out to everyone, your followers can now choose whether they want to just receive highlights, or all content you post related to each of the categories mentioned above.

There are two ways property managers can use this to their advantage:

1) Make sure your followers know about these new options so that they can opt-in to receive more of your content if they want to, and

2) Watch the analytics of your posts to find out what kinds of content your followers are subscribing to.

If your videos are getting much better engagement than photo-only or text-only posts, your followers may be specifically subscribing to that content. Focus your time and energy on the type of content that your followers are already engaging with.

If you’re not sure how to track these analytics, reach out to us at Fourandhalf — we’re happy to help you craft a content and data-driven social media strategy.

A NOTE FROM US: When we looked for these new settings on our Facebook page in September, we didn’t see quite this range of options — yet. But we did notice a “Follow Settings” option which allowed users to have more control over how a Page’s posts appeared on their newsfeed, and whether they were receiving notifications for every post, or just the highlights. Stay tuned for updates!

How Property Managers Can Use Facebook’s New Paid Online Events The world was already moving more and more online before COVID-19, and now, we’re online more than ever. In light of this, another Facebook update property managers should know about is the creation of “Online Events.”

These are different from Facebook’s regular “Events” option in two important ways:

1) They provide attendees easy access to video engagement with messenger rooms, Facebook Live or an external link, and

2) Attendees can pay for the event directly through Facebook, without any additional fees from Facebook for the next year.

This is a great opportunity for property managers to build community, share educational content and make a little extra revenue. Off the top of our heads, here are three webinar-style ideas that you could turn into paid online events on Facebook:

• Investors: What To Look For In A Property Management Company
• Owners: How to Identify Great Rental Properties To Purchase
• Tenants: 3 Quick & Easy Maintenance Fixes You Can Do Without Calling Us

Want more ideas? Give us a call, and let’s talk about how you can step up your social media marketing game.

Get The Most Out of Facebook in 2020 If you remember nothing else from our blog today, remember that Facebook Groups are getting the spotlight right now, front and center. Whether you’re making them or joining them, as a property manager, this is a great time for you to engage with your online community and demonstrate your expertise.

You should know the latest trends, so that your marketing is reaching its fullest potential.

The Fourandhalf Team is here to support you and your property management business, crafting holistic marketing strategies that can shift with our rapidly growing and changing world. Send us a quick note if you’d like to schedule a call.

The post How the 2020 Updates to Facebook Impact Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Summary: In this week’s episode of “The Property Management Show,” Marie and Brittany sit down with Faizan Ali Khan, the CEO and Founder of LetHub, to learn more about what artificial intelligence (AI) really is, and what property managers should know about its applications in their industry.

Key Takeaways: * Artificial Intelligence can automate communication between renters and landlords and property managers. * There are three main types of AI – Narrow, General and Super, and we are still developing General AI. * AI can be used by property managers to answer common questions from renters, automatically send emails, save money on utility bills, process maintenance requests and more. * There are two ways that AI can learn: Supervised and Self-Learning. Property managers are encouraged to use Supervised AI, in which their AI system has been trained by a company like LetHub. * Implementing AI doesn’t have to remove the “human touch” from property management – it is meant to streamline operations and save time on monotonous tasks. * If you’re a property manager interested in integrating AI, do your research to know what kind of AI you are signing up for and how much it will actually save you time.

 Transcript: Marie Liamzon-Tepman (00:00):

Welcome to The Property Management Show brought to you by Fourandhalf Marketing Agency for Property Managers.

Brittany Stephens (00:05):

Today’s topic is artificial intelligence and how to properly use it in the world of property management. Our guest is going to go over some key concepts of AI so that property managers can make better technology decisions for their business.

Marie Liamzon-Tepman (00:21):

That guest is none other than Faizan Khan, who is the CEO and founder of LetHub, an AI platform for property management companies. Happy listening!

Meet Your Artificial Intelligence Guide, Faizan Ali Khan Marie Liamzon-Tepman (00:38):

Faizan, thank you so much for joining us on the podcast today. Since it’s your first time ever on the show, can you please let our audience know who you are and what’s your relationship to the property management industry?

Faizan Khan (00:53):

Yeah, thanks for giving me the time and the opportunity to share what we’re doing. So I’m the founder at LetHub. Lethub is an AI communications platform for rental property managers that automates the communication between renters and landlords and property managers. So nobody has to pick up the phone and, you know, pre-qualify people and book tours. So that’s all handled by River, which is our AI. And it’s in a constant learning phase where it improves with time, just like humans.

What is Artificial Intelligence?

Brittany Stephens (01:27):

Awesome. So to start off, could you define AI, define Artificial Intelligence for us common folk?

Faizan Khan (01:42):

Sure. So I think to put it in a nutshell, because it’s a very complex field and I guess the media portrays it in a very different way, anything that automates any kind of task that humans perform in a faster way or better way, that can be considered artificial intelligence.

Brittany Stephens (02:14):

So if we’re talking about different stages of AI, what are some of those?

Faizan Khan (02:20):

So again, it’s very complex. There are seven different different stages of AI, but to put it in simple terms, we can classify it in three stages. So there’s Narrow AI and then there’s General AI, and then there’s Super Intelligent.

Narrow AI is something that has very limited sort of memory and that can outperform humans in some robotic tasks. And then General AI, I would say is just your general intelligence which is not really good these days. We’re not there yet. It’s something that understands a lot of the things that we do in everyday life. So a domain-specific AI would only understand a few things that they’re really good with. General AI just understands everything because it learns really fast.

And then the last one is Super Intelligence AI, that’s the AI that produces other AI’s. The bot that can make other bots.

Marie Liamzon-Tepman (03:39):

That’s gonna take over the world. Yeah.

Faizan Khan (03:42):

If you’ve seen the Avenger movies, that’s what we’re talking about.

How Can Artificial Intelligence Be Used In The Property Management Industry? Marie Liamzon-Tepman (03:47):

And so given that General AI is where we are right now, and even then we haven’t even mastered it, right? What kinds of applications of artificial intelligence can we see in the property management industry?

Faizan Khan (04:01):

Yeah, no, that’s a good question. Any task that you can automate, that can definitely be done by AI because if you can train a machine to do a certain job, then you can implement AI in that piece. So an example is, if you don’t really want to communicate with renters and there’s a pattern to you communicating with renters, that pattern can be picked up by the AI and then sort of mimic what you would do. It’s as simple as a bot or it could be a smarter bot that could respond to inquiries or share information that you would.

There’s different levels to it. So another example would be, you can tell people to do a few steps, like complete a few steps, and then, and that’s like a simple bot, but then you can also build something conversational that actually understands how you type or how you chat with people. It learns your style. So that’s one – Yeah. So it’s like when it learns your stuff –

Marie Liamzon-Tepman (05:30):

So if I’m a slow typer, it can mimic like that slow typing.

Brittany Stephens (05:35):

Or if you say ‘like’ every five minutes, like me, it’s gonna probably put a bunch of ‘likes’ and a bunch of ‘hella’s’ in there somewhere and smiley faces, if you’re a super smiley face writer.

A concept like this is really intriguing to me when I think of not necessarily like the day to day operations of a property management business, but if you can have a BDM or a salesperson, not having to write their own emails to follow up with a person, like, how cool is that? Or if you have a chat box on your website that can act like it is a sales person, but be AI that would obviously save time, but give you more time to spend on other things like face to face things.

[If you’d like to learn more about property management and automation, check out our podcast episode with Propertyware’s Inaas Arabi.]

AI, Emails and Utility Bills Faizan Khan (06:23):

Yeah. Yeah. And I think that’s what we’re trying to do as well, right? So we’re trying to cut that time. If you look at an average property management shop, they get hundreds of emails, right? So if they have 10 vacant properties on average, they get 10 to 15 emails a day. So their leasing team has 150, 200 emails in their inbox. And then if they spend a couple of minutes for every email, they’re spending like hours writing emails.

Once someone has found the place, and they’ve moved in, I think a lot of companies are doing it, but AI can also be used in terms of lowering your bills, right. Your utility bills, whether it’s your internet bills or any kind of other things that you think are too high, AI can sort of only switch it on and off when you’re using it just by learning by your habits.

AI and Chatbots Marie Liamzon-Tepman (07:32):

When we talk about artificial intelligence for property management the first thing that comes to mind in terms of application would be the chat bot. Right? Cause we’ve seen a surge of all these chat bots in the industry. And so you’re saying that like, yeah, that’s definitely a low hanging fruit, but then there are other applications of AI within the industry.

Faizan Khan (07:55):

Yeah. Yeah. I think in terms of chatbots, there’s different types. We’re talking about rule-based chatbots that are just, you feed them a bunch of information. It’s just like a form, but in a chat format. And then there’s a bunch of hybrid – I don’t know if hybrid is the right word, but that’s the word that comes to my mind – there’s a few hybrid bots that use both a combination of a rule-based approach and some pre-made questions that can be answered. So I can go inside and feed some questions into the bot that I think renters would ask. And then there’s the true AI approach – which is what we’re trying to do with River, our AI – whenever there’s an opportunity to learn about what people are asking, it will be taught to the AI in a very supervised fashion.

So in simple terms, what that means is if I say, “Are pets allowed?” Or something like that. And then, you know, there’s a response, “No pets are not allowed in this apartment building” or whatever. But then I, as a human, I’ll just say, “Hey, well, a small dog, be okay?” Like, you know, just to see if it would respond. Then the second question is based on the first question, which is called context building.

So you as a human would understand that, but a dumb bot or a rule-based bot will not understand that. But a bot that is built on AI would understand that the next statement is based on the previous question. It will learn with time.

It would understand the difference between a discount and an offer, it would understand any kind of marketing material that you’re trying to push so that it can push it to people.

It would understand differences between different synonyms. Sometimes, you know, when you type something wrong on Google, it says, “Do you mean..” You know, when it says that, the reason it says that is because it knows that this type of mistake is done by other humans as well, and those humans clicked on this particular link, they meant this thing. The more renters interact with it, the better it gets, the better it will respond and improve with time.

Marie Liamzon-Tepman (10:58):

So basically there are two layers that you’re talking about, right. The first is like, you can automate the question and answer portion of communication with renters. So if they ask legit the question, “Are pets allowed in this address?” A simple bot you can automate the answer to, you know, if it says anywhere “pets allowed,” then the bot knows to say, “No pets allowed” or like, “Yes, pets are allowed up to like this weight,”

Brittany Stephens (11:25):

Almost like a script.

Brittany Stephens (11:26):

Yeah. But the second layer is – so that automation is just like the base layer, right? And then the second layer is if you have a machine learning component, if I were to ask the question as like, “I have a Pitbull, is that cool?”

Faizan Khan (11:44):

Yeah.

Marie Liamzon-Tepman (11:46):

An automated like question and answer technology wouldn’t understand them asking about a pet ’cause I never said “pet”, but machine-learning type of technology would understand like, “Oh, the context is like, this person has a pet and wants to know if pets are allowed.”

Who Feeds The Property Management Data to the AI? So if you’re saying that it’s like learning, right, from a set of data, who’s in charge of pulling that data? Do you have to feed it the data or do you, you know, put it in your software and it learns everything you’ve ever sent in the past five years? Like, how does it work?

Faizan Khan (12:32):

There’s two ways: there’s supervised learning, and then there’s self-learning. Just like how Tesla is, Tesla is self-learning, right? So if you’re driving a Tesla, if you crash it, it’s going to learn that next time I’m not gonna do that. So that’s, self-learning.

Supervised learning is, I feed the data to the AI and I would either crowdsource it or my team would do it. We will tell the the AI that, yes, this is a particular object or a question, or it means this.

Let’s say, if you look at a guitar and a ukulele, but the AI cannot understand what’s a guitar because it pretty much looks the same, it’s the size that’s different. So the AI would ask me, “Hey, is this a guitar? Yes or no?” I’ll say no. “Is this a guitar?” Yes. So when I say yes, it will associate that “yes” with that particular instrument, if that makes sense.

Brittany Stephens (13:37):

Interesting. The self-learning versus what did you call it? Controlled learning, supervised learning. I feel like, especially in our industry, I mean, it sounds like supervised learning at least right now is the way to go especially for property management. Cause when it comes to fair housing and things like that, I feel like if you have self learning AI, it could just learn to give the answers that people want. Or I don’t know, it could go rogue, anything like that. I feel like the self-learning would be super beneficial. It’s like, “is this a pet? Is this a dog that’s allowed?” Like, I really liked that.

Faizan Khan (14:25):

Yeah. Yeah. And I think to your point about pre-qualification, it has to be very customized. We could have built it in a way where we just don’t let you put the questions in. We’ll let the AI ask the questions. But the problem with that is if it’s self-learning, then it will only ask questions that it thinks helps you make decisions better. And then it will disqualify people who it thinks did not qualify in the past. If you know what I mean, like it will recognize patterns that you only like certain kind of people. And then the human rights problem comes in and it will only qualify people who are within that criteria. And that is scary. And that’s why there’s a human element involved where you set your criteria first. You just tell the AI to ask these questions and don’t let the AI ask questions because it will ask some strange questions. Yeah, yeah.

Marie Liamzon-Tepman (15:43):

Yeah. Especially when we’re talking about law, right. Especially for fair housing, fair housing regulation. Fair housing law, it’s created by humans, right? And so a lot of times there are sections there that’s kind of up to interpretation and as human beings, there’s this concept of following the spirit of the law. And it’s kind of scary to trust a machine to know what the spirit of the law is. I’m not sure if we’re there yet. So I feel like it makes sense for the property management industry, if property managers are using artificial intelligence they need to make sure that the owners or the operators are holding the reins of their machine.

And so wouldn’t you say that on one hand you are automating things to make things better, but the fact that someone always has to have their hands on the reins is still work. So like, doesn’t it just cancel out? Cause now this person who used to be able to just answer the questions that the renters ask and everything, now has to learn a new way of working, which is figuring out how to interact with this machine and make sure it’s not saying weird stuff to the renters?

Faizan Khan (17:07):

I don’t know about other other ones, but ours is very simple. Like you just set it and you forget it. There’s no involvement of the staff to teach anything to it. It’s already trained. So if there’s any involvement of training in AI, I would advise people to have a deep look into it, ’cause it’s not AI then.

Brittany Stephens (17:36):

If we’re talking about AI and supervised learning, it wouldn’t be like, if we’re talking about a property management company, it’s not like the property manager or the leasing agent or whoever, is supervising that learning. They’re creating, they might provide the list of initial criteria, but the company that is the AI is the one that’s going to be controlling and supervising that a little bit more. I think that’s kind of what you’re referring to Marie, right?

Marie Liamzon-Tepman (18:05):

Yeah.

Faizan Khan (18:06):

Yeah. Essentially. Yes. Because if you have to do the job, then why are you like – you’re essentially crowdsourcing – like, it doesn’t make sense for a property company to train it. It has to come pre-trained.

Brittany Stephens (18:21):

So you need to partner with a company that understands the property management industry that can help pre-train their machine so you don’t have to worry about all of – I mean, that makes sense.

Does Adding Artificial Intelligence Remove the “Human Touch” from Property Management? Marie Liamzon-Tepman (18:35):

If a property management company were to use artificial intelligence for the the process of selecting tenants, how does it work? Like when does the ‘gut feel’ come? Does it just pre-screen and give the human being a short list of the pre-qualified renters and then the property management company team members never see the rest of the applications? At what point does the human element come back in?

Cause right now in a traditional property management company, it’s all about the human connection. And so when you insert the machine, like how much of it can be taken over by a machine and how much of it stays through the human being?

Faizan Khan (19:25):

Right. I think what the AI should do is speed up the process. Any AI that can speed up the process of questions, booking a tour and get people to the door, that’s what it should be doing. The goal is to take in as many leads as you can, pre-qualify them, and get the best people to the door.

Now, the ones who get disqualified, the ones that you were talking about, that are never seen, I think they should get to see them. Because every person who has a certain credit score or a certain budget, or if they like pets and, you know, they couldn’t find that there, those people should be kept in your database, and then be contacted whenever something matching their criteria is available.

And I think that’s the part where it’s going to be easily automated without AI. We don’t even need AI for that. If you have a database and if you have a matching criteria, and if you have some sort of tech person on your team, ask them to build a matching platform and send out an email saying, “Hey, we have a new apartment available. It has pets and it’s within your budget, please book a tour.”

So again, we’re not taking or anything, we’re speeding up the process. And a lot of these leads that are after hours or on weekends and when you don’t have staff or you have to hire a virtual assistant, AI can definitely do that.

How AI Has Been Misrepresented Brittany Stephens (21:06):

What about, you know, it obviously depends on your communication style or maybe the generation you’re a part of or maybe the technology itself, but I don’t like talking to people on the phone. I definitely just want to submit a form or fill out whatever. But then you have these frustrations with chat boxes or automated phone systems, things like that, that probably give AI a bad rep. There are other platforms out there that use the system. And like you talked about earlier they don’t understand the questions that you’re asking. And I feel like that’s a lot of people’s experience with these types of automations. So how do we move on from that type of perception to actually get people excited about these types of tools?

Faizan Khan (22:11):

Yeah. I think in the next five years, you’ll see a lot of improvement in this sector. The unfortunate thing about AI is that, not just in property management, but in other industries, there was never an actual true AI built by startups. Maybe I shouldn’t say never, but very unlikely. A lot of it is like tech jargon or like some kind of jargon to get customers excited. And then once they signed up, they were disappointed. And that is what’s harming companies who are actually working on making that thing happen. And that’s just unfortunate.

Brittany Stephens (23:08):

It’s misrepresentation in the past a little bit, like as a marketing tactic, probably like, “Oh, we have AI,” but really they’re just calling it AI to make it seem more appealing.

Faizan Khan (23:20):

Yeah. Yeah. Because AI is like, it’s so vast that you can implement a simple step in your code, in your tech stack, and you can call it AI because there’s some small element of AI that is involved. I can give you an example, if type a sentence saying “Hey, can I have I can have a pizza with fries.” A decent coder can train the engine or any engine to understand that someone’s asking for a pizza with fries. And then they can call it AI. But what happens is, a smart AI would be, “Do you want pizza with fries as a side, or fries on top?”

Brittany Stephens (24:26):

Right.

Faizan Khan (24:26):

So now comes the part where like, okay, now we’re talking. Right? Same thing with any other thing. I’m just, I was just trying to give you an example.

Brittany Stephens (24:39):

That totally makes sense. Cause it’s going back to what you said about making it a conversation instead of just like an auto response, because a lot of these systems do kind of feel like a copied and pasted response that might not really be the answer I was looking for, or the guidance I was looking for. So to have it provide a response actually in context.

Faizan Khan (25:07):

Yeah. Very few AI’s have actually passed the Turing tests. What that means is that you will be unable to tell if it’s a human or a bot. We’re not there yet. So it’s always going to feel a bit robotic. I’ll be honest with you, even River feels robotic, but it does the job, right. As long as it does the job and answers those questions, it’s good enough for the property management industry.

AI: The Future of Property Management Tech Marie Liamzon-Tepman (25:32):

Yeah. It’s an exciting time for the property management industry, because there is a lot of attention now in this industry that used to be kind of like set aside. Right? And so now there’s like new technologies coming in, you know, and AI is here, it’s not there yet, but it is starting. And so to your point, right? Like, because AI is so vast it’s hard to wrap your head around it, which is why we have you here to kind of help our listeners and help us understand what does make sense in terms of AI for the industry and like you mentioned, it’s like a life cycle, there’s infancy, then preteen, you know, adults and so on, so forth. And like you said, you can call a thing AI but it could be like the embryo type of AI versus, you know, preteen AI.

I feel like the lesson here is that if a property management company owner is looking for some kind of AI solution for the company to really do their research, right? And make sure they know what they’re going to get, and that actually matches the need for the company.

Brittany Stephens (26:39):

Yeah. And understand that it’s not going to be perfect or 100%.

Faizan Khan (26:44):

I mean, yeah. At the end of the day, if it does the job, whether it’s AI or not AI, if it’s saving your team four hours a day, and if it’s driving those big vacancy rates down, you should definitely look into it rather than staying away. Like try it, test it, see if it works, if it doesn’t, it doesn’t, but there’s different ways to make it work. And I think this is going to be the new wave of technology in property management.

[To learn more about property management technology innovations, check out our podcast episode with Home365.]

Artificial Intelligence & Property Management Maintenance Marie Liamzon-Tepman (27:18):

You know maintenance is another big area in property management that could benefit from implementation of AI.

Faizan Khan (27:27):

But you cannot give it solely to AI, very similar to the leasing process. Right? There’s still a human element. Cause I can totally see a situation where if it’s all text based and the tenant goes like, “Hey, my heater’s broken.” And the AI is like, let me send, you know, the HVAC person or the heating person, and then turns out it’s the water heater,

Faizan Khan (27:49):

The water heater – yeah.

Marie Liamzon-Tepman (27:53):

But a more intelligent kind of system would ask follow up questions like, “Hey, is it your heating, like air? Or is it your water?”

Faizan Khan (28:03):

And you know, all that information needs to be learned by the AI. And it’s going to take at least a million to 2 million data points. What I mean is that you need to train it, to understand those things. And 2 million data points takes a lot of time. It’s going to take some time for someone to do it. Maybe we will be the ones to do it. I don’t know. But if it’s a high demand and people keep emailing me, then I’m happy to dedicate a team member to work on that one. Yeah.

Advice From Faizan for Property Managers Interested in Artificial Intelligence Brittany Stephens (28:40):

Well Faizan do you have any other like final pieces of information that you think are really important to mention that you want to share with our viewers, listeners?

Faizan Khan (28:52):

Just my general advice to people is that don’t be scared of AI. I think the media has overplayed it. There’s multiple different applications of AI and and it’s not taking over anything. At the end of the day, it’s helping you be better at your business. It’s a simple tool that works like a human would do and it learns like a human does.

So yeah, I would recommend people, you know, reading more about it and what sort of companies are out there. They’re trying to help you be more efficient and be more profitable. Right? At the end of the day, everyone wants to be profitable and keep their owners happy. And there’s tons of smarter ways to do that rather than just doing it manually. Yeah. That’s my message to people.

Brittany Stephens (29:49):

Well, thank you so much for joining us. Marie, did you have anything else that you wanted to say?

Marie Liamzon-Tepman (29:54):

No. I’m good. I think I’ve asked all my questions.

Faizan Khan (30:01):

All right. Thank you. Thanks for your time. I appreciate you taking the time and the amazing questions.

If you have any questions about this topic or about property management marketing in general, give us a call.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post Understanding Artificial Intelligence in Property Management appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

If you already have a perfectly good real estate website, do you really need a separate property management website? Can you get away with just building a page to host your property management information?

Maybe you’re just getting started in property management, or your business primarily sells real estate and you’re wondering if you should spend the extra money, time, and effort creating a second website.

The short answer is: yes, you need a separate website. But it’s important that you understand why.

Today on the Fourandhalf blog, John will walk you through the benefits your separate website will bring, plus a couple of “pro tips” to keep in mind as you’re building it.

Having a Separate Property Management Website Avoids Confusion You are talking to two different sets of clients. There are people who want to buy or sell a house, and people who want to rent or rent out a house. There may be a little bit of overlap in these audiences, but the majority of your customers have one thing or the other in mind. You don’t want to confuse them when they arrive at your home page.

It’s important not to mix your messages. For instance, on a real estate website, you might want to include “For Sale” listings. You don’t want a visitor to confuse those with “Vacancy” listings you might have with the property management side of your business. Each site should be pushing one specific service, whether it’s real estate sales or property management. The content that is front and center when someone hits your site should speak to one service or the other. You don’t want people to have to dig around to find what they are looking for. If they’re looking for one thing, and the front page is pushing the other, a percentage of your visitors are just going to go back to Google and look at the next company.

Real estate and property management have a lot in common, but to a person who is not intimately involved in the industry, they are two separate things. You want to give website visitors exactly what they are looking for instead of a lot of information that won’t be valuable to them.

A Website Will Improve Your Property Management SEO Your site needs to rank well if you want people to be able to find it. When you’re trying to rank well for sales, you’re not going to rank well for rentals. Your goal is to rank well in both areas, which is another great reason to have two separate sites. You can put a page on your real estate site that has property management services listed there, and that might help you show up for “property management,” but an entire site dedicated to property management will perform much better, and be seen by more potential customers.

If you have only one website, the front page of that site will likely push one specialty over the other, and that means you could lose a portion of your customers that you worked so hard to attract with SEO. Google is not going to rank you very high if you aren’t getting a lot of property management traffic to your real estate site.

Pro Tips for Building Your Property Management Website Avoiding confusion and SEO are two big reasons to have separate websites, but they don’t have to both be complex, expensive sites. As you consider how you will build your property management website, keep these quick “pro tips” in mind.

Keep Your Website Simple Perhaps the task of building an entire website from the ground up feels daunting – especially if you have a complex website for your real estate business, and you’re imagining building a property management website to match. But there’s no need to go over the top with your property management website. It might just have a few simple pages – a home page, a services page, a vacancy page, and an about page will suffice. In some cases having a simpler website will actually rank better than some property management websites with dozens of pages. Plus, keep in mind that you can always add to your website over time, as your property management business grows.

You don’t need a lot of flash, but you do need to be found. The best way to be found is to have a full website dedicated to property management.

Separate Your Businesses Finally, if possible, think about having a separate name for your property management company. This is especially important if you’re just getting into property management as a real estate professional. Property managers tend to get bad reviews just for doing their jobs. If you are doing property management under the same name as your real estate company, those bad reviews will affect the reputation of the real estate side of your business.

You don’t want that.

Separate your websites, separate your Google+ pages and separate your Yelp pages. Make it obvious that there are two distinct sides to your business. Or even make it look like two businesses – it helps even more to have a completely different name so people don’t confuse one with the other.

Don’t use your real name for property management if you use it for real estate. For example, if your real estate sales company is called John Smith Real Estate, choose a more generic name for your property management company. Otherwise, you’ll be seeing a lot of reviews that say. “John Smith sucks.” This is not an exaggeration.

We Can Help You Build Your PM Website Our last pro tip is to chat with us and ask us all your marketing questions. We’ve built many property management websites over the years and we will work with you to create a sleek, user-friendly and content-driven site that you and those that work with you will love. You can learn more about our property management websites here.

If you have any other questions about property management marketing, send us a quick message.

Fourandhalf helps property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post Should You Have Separate Websites for Your Real Estate and Property Management Businesses? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What Property Management Business Plan is Best? Property management business plans and systems are more important than ever, whether you’re trying to grow your company or simply manage the new normal of this pandemic. But which one is best for your business?

On today’s Property Management Show podcast, we’re talking to Deb Newell and Andy Moore about their expertise in both property management and coaching/consulting. We’re discussing property management business plans and systems and how to choose a path to better operations within your own company.

Introducing Deb and Andy Deb Newell owns a property management company and has also grown her own consulting business. Real-Time Consulting Services is based in St. Paul, Minnesota. She helps her property management clients focus on three core principles established for businesses: People, Process, and Technology. The mission of Deb’s company is to help businesses see the deficits they have and to find ways to fix some of the gaps and miscommunications. Basically, she dives in as a company’s temporary COO to look at the operations and make them more efficient. She works with companies that are just starting out and have been in business for many years.

Andy Moore owns Gulf Coast Property Management in Sarasota, Florida. As a property management business owner, he realized where the operational challenges were coming from in his own company and in the industry, so he became involved in business consulting. Now he works part time with property management companies to reorganize and focus.

Often, Andy has seen professionals in the property management world start off as technicians. Maybe they were property managers or real estate agents or maybe they worked in maintenance, and then they came into the management or ownership of a company without any real idea for how to run the business. In these scenarios, business plans and systems can give people a better idea of how to properly run a business and guide them through key concepts like hiring, firing, and managing. It helps entrepreneurs set expectations and deliver a quality service.

Note: Andy Moore is no longer an EOS Implementer® as of July 6, 2020. For information about the Entrepreneurial Operating System (EOS) or to find an official EOS Implementer®, please visit www.eosworldwide.com.

Six Sigma and Other Management Frameworks Deb’s approach in consulting is taking elements from various management frameworks like Six Sigma to help her clients. Her focus is on the lean management side and the idea of eliminating the defects within a business.

Her process is to go through the core principles and evaluate the business in such a way that the company can focus on the customer. By understanding how everything really works, looking at processes and how they flow, concentrating on the value of the business, and removing any blocks or defects, the company is brought to a better result.

An important part of the work is also getting buy-in from the team throughout the process. Every effort has to be systematic where a roadmap is presented. You might think one employee is an issue to your company’s success, but you have to dig deeper. Maybe that employee is struggling because of a lack of training or the absence of clear expectations. There’s always a root cause, and to execute any plan in the right manner, those root causes have to be identified and solved efficiently.

Different Management Systems Fit Different Companies Deb likes to use her company as a sandbox for her clients; owning her own property management business allows her to test things out. But, it’s important to remember that there’s no one right way to implement a management system. There’s no wrong way to do things. Everyone runs their business differently. There are many variables, from size to region to property type.

You cannot completely copy one successful model that you see elsewhere. It might not work for you.

Andy says he runs into the same challenge. He has to make an effort not to impose his management style and the way he is structured on the others that he coaches. Every business is nuanced, and the dynamics from company to company always change.

He has learned to put up guardrails to guide other property management entrepreneurs rather than simply telling a them how he himself would solve a problem in his own business.

There is always a temptation to copy what successful property management companies do. But, if you’re in a different market and you don’t understand why the company you want to copy is doing what they’re doing, you may be missing some key insights.

There’s always a new shiny concept or idea that promises to change everything. There are visionaries in the field, but not everyone is going to be able to implement those visions. Find the change agent in your company to drive what you want. If there’s not a person ready to do that, think about how to develop someone who can lead the path towards the larger goals.

How to Choose a Management Framework for Your Property Management Company There are two things to keep in mind when choosing a management framework for your company:

• Are you big enough in terms of staff, revenue, or doors managed?
• Does your company operate using a portfolio structure rather than a departmental structure?

In Andy’s personal experience, there are systems that tend to not work for a portfolio-based company where one property manager is performing all of the tasks associated with a property. In a portfolio-based company, the doors tend to slam shut when it comes to accountability and communication, which can render some systems ineffective. Meanwhile, being too small of a company could mean you don’t have enough resources and staff to create necessary boundaries critical to the system you are trying to implement.

Simply deciding to adopt a new process, a new plan, or a new system is not going to magically fix your company either. Some property management businesses have larger problems that need to be solved first before turning to any system. Hiring a consultant or implementing a management system will not erase some of the root problems or the lack of foundation that may be holding you back. It’s not a light switch. Management systems require work – hard work – and they also require a commitment. You’ll be working within their framework for years and once you reach your initial goals, it will be time to set new goals, and that will require additional change management.

Problems take time to solve. As a property manager, you likely have new clients calling when they need a tenant evicted. They’re in emergency mode and they just want to hand off their problem and let it be your problem. But, with change management, you have to be invested yourself, and you have to be committed to the process.

For more about standardized systems in property management, check out our two-part series with Dave Gorham.

Portfolio vs Departmental Property Management Systems The difference in department-based management companies and portfolio-based companies is often regional. And, companies shift. They go back and forth between the two models depending on where they are and where they’re going.

The best system and structure depends on your company.

It depends on how you manage owners and how accountability is measured and respected in your team. If you’re going to move from a portfolio based system to a departmental system, it’s going to involve more than shuffling around boxes on your organizational chart.

While a departmental system may make sense, most owners you work with will prefer to talk to one person. They don’t want to call five different people to get a report on their property.

At Andy’s property management company, things have evolved from portfolio to departmental to a hybrid where he has realized the value of an account manager who serves as that one contact person that owners can go to. They’re in charge of the portfolio, but they’re supported by different departments within the company.

You can only get to a structure like that with experience and systems.

If you own a property management company, you’re probably managing more than properties. You’re managing people. It’s easy to forget that you have to manage people as well as real estate. There’s an owner and a tenant and employees. When you establish a property management company, your job is to manage many people. Not everyone is equipped to do that.

You can get yourself familiar with structuring your organization with our 3-part series on workflows.

Blind Spots When Managing Your Company Budgeting can be a big blind spot. Maintenance is as well. Most property managers would agree it’s the bane of their existence. Maintenance is something that has to be addressed and taken care of and if you don’t – that will be your company’s demise.

The lack of any operational systems will always be a blind spot. There’s training and strategic planning – all blind spots.

Those blind spots impact reputation. It’s hard enough to maintain a positive reputation in property management. This is a difficult profession to be in – property managers are required to be experts in several different things in order to successfully and effectively manage a rental property. There’s little recognition.

A number of tools are now available in the industry that can help companies avoid and manage those blind spots.

But, those tools aren’t free. Property managers aren’t charging enough for the work that they do. This is true. It’s also true that owners think property managers charge too much money.

Deb uses a babysitting analogy. The two most important and valuable assets people have are real estate and their children. Why are the services associated with real estate and children so devalued? No one wants to pay property managers more than $100 a month and no one wants to pay babysitters more than $10 an hour. It doesn’t make sense.

With companies and individuals entering the property management marketplace and offering to do the work for almost nothing, it further devalues the work that real professionals are doing. But, it doesn’t take long for those low-cost management structures to crumble.

Pandemic Property Management: How to Survive The world has changed, and property management companies have been required to change, too. No one saw this pandemic coming. But, it’s easy to see which companies were prepared to pivot in a way that they had to and which companies are still scrambling to make it work.

Andy says his company hasn’t missed a beat because remote workers, Key Performance Indicators (KPIs), and clear expectations have always been in place. Policies and procedures are not sexy. They’re not fun. But they’re important, especially when it comes to managing staff and properties through this pandemic.

You may have staff members who are working from home, and you’ll have to be flexible. They may be homeschooling their children. They may be balancing work and home, and parenting with spouses or partners who are also working remotely.

Companies will survive if plans are in place. Companies that were struggling with organization and systems before the pandemic are going to find themselves in trouble.

Good things can come out of this, and if you’re interested in talking to Andy or Deb about their coaching and consulting businesses or you want to learn more about how our structured marketing plans can help your business, contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post A Conversation with Two Experts in Property Management Business Plans appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

If you’ve been in the property management industry for a while, you know that negative reviews can really hurt your business. But we’ve got data about negative property management reviews that will help you be proactive about implementing policies & practices to prevent them. Today, Fourandhalf’s Director of Product Delivery (nicknamed our “Reputation Queen”) Theresa Barnes will break down the top negative reviews property managers get, and what you can do about it.

What Our Data Shows About Negative Property Management Reviews We analyzed data from over 2,600 negative reviews submitted from January 2019 to August 7, 2020 and here’s what we found:

Who Submits the Most Negative Reviews About Property Management Companies? You’re not going to be surprised that tenants submit more negative reviews than owners do, but how big is that difference? Well, the data we studied show that over 90% of negative reviews come from tenants, which makes perfect sense given that property management companies interact with more renters than with owners in their day to day operations.

Think about it this way:

What is your average number of units per owner? It’s very unlikely that you have 1 owner per unit you manage, but for the sake of argument let’s assume you have a 1:1 ratio (by the way, if you have a 1:1 owner to door ratio, your business is likely not scalable!).

Now, what is your average number of residents per unit? It’s very likely 2 or more per unit, but for the sake of argument, let’s low ball the ratio and settle with 2:1 (2 residents per unit on average). Side note, if you’re managing mostly single family homes, your ratio will be much higher.

With this quick math, you’ll see why there is such a big tenant footprint when it comes to reviews.

What Are the Most Common Issues Mentioned in Negative Tenant Reviews? Note that a lot of these negative reviews bring up multiple issues, and so we identified the top 3 issues or themes from the actual reviews and then looked at how often certain issues/themes came up.

The top issue that kept showing up in the negative tenant reviews we analyzed is by far Maintenance, which shows up around 48% of the time. This is followed by Communication, Customer Service/ Experience, and Move Ins.

Notice that we didn’t combine move ins with move outs. We wanted to see which one had a greater impact on negative reviews, and it turned out that Move Ins ended up getting more mentions in the negative reviews we analyzed.

The types of complaints about maintenance tend to be related to the speed of issues getting resolved, work/repairs not being done properly, poor coordination with vendors/ vendors not honoring appointments, and work orders being closed even before the issue was fixed.

If you’re concerned that reviews you’re receiving are inauthentic, read up on what you should do in “How to Manage Inauthentic Property Management Reviews in a Reputation-Driven Market.”

What Are the Common Complaints From Negative Property Owner Reviews? Negative owner reviews also tend to have multiple themes in each one, so we followed the same methodology and here are the results:

1. The top two complaints we found coming from owners are: Communication (which shows up over 50% of the time) as well as Customer Service/ Experience (which shows up over 40% of the time).
2. These are followed by Owner Disbursements, Fees/ Charges, Property Condition, and Maintenance.

The owner reviews that complain about poor communication tend to mention lack of transparency about what is going on in the property, not being able to get anyone from the company on the phone, and not getting followed up on after they have sent emails or left voicemails.

On the Customer Service/ Experience side, they mention rude/ unprofessional staff and not feeling like the PM company cares.

Issues with owner disbursements is a clear pain point, but tend to go hand in hand with complaints about poor communication from the property manager. Setting expectations and promptly notifying owners about any unforeseen issues related to disbursements is definitely a great thing to do.

On the Fees/ Charges side, reviews mention unreasonable fees and charges that do not have supporting documentation.

The Overlap Between Negative Tenant and Owner Reviews What’s interesting is if we look at the issues each group mentions in their negative reviews, we start seeing some overlap.

Communication, Customer Service, and Maintenance are the top themes that overlap for both groups. So generally speaking, looking into improving these 3 areas of your business could greatly improve your reputation. It might be tempting to just focus on those three things and call it a day. But that may not be enough for certain businesses.

How to Improve Your Property Management Online Reputation If you truly want to improve your online reputation, we recommend a three-step process:

Step 1: Analyze your existing negative reviews and identify root causes You may find that your negative reviews may skew a bit differently from the average, and that’s okay. Remember that negative reviews that are specific to your company are better indicators of what you can do to improve since they are direct feedback from your own customers.

Then, it’s very important to work with your team in identifying the root cause of these complaints. Write down what you think are the root causes, and then keep digging deeper until you can’t go any further.

Step 2: Fix the root causes of those complaints (aka stop the bleeding!) Be diligent but patient with this one, coz much like a weed, if you don’t pull up the roots they’re just gonna keep coming back.

Step 3: Time to repair your Online Reputation (aka start the healing!) Once the root causes are addressed, it’s time to start asking for reviews again. Be patient during this time, and keep your eyes on any new negative reviews that may come up. Identify the root cause so you can nip it in the bud before it gets out of control. And yes, we’re basically going back to step 1!

If you’re curious about ways you can incentivize online reviews, check out our blog, “Incentivizing Your Online Property Management Reviews: What to Do and What Not to Do.”

Key to Getting a Better Average Star Rating The reality is, online reputation is a numbers game. Your average star rating is directly impacted by each review, whether it’s from an owner or a tenant. The less total reviews you have, the more your average rating can swing with each negative review.

Just asking for more reviews without fixing the root causes can just amplify the problem.

The recipes for positive tenant reviews and positive owner reviews have similar ingredients:

• Efficient & transparent communication
• Showing empathy and putting yourself in your client’s shoes
• Clear processes and accountability when dealing with issues or complaints from clients

If you need any help improving your property management company’s online reputation, or have more questions about our data and negative property management reviews, contact us at Fourandhalf Marketing Agency. We’ve been helping property managers with reputation management since 2014, and helping them market to owners since 2012. Give us a call or send us an email. Thanks for watching and/or reading!

The post What Our Data Shows About Negative Property Management Reviews (& What to Do About Them) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Last week, we heard from a property manager and a Realtor on The Property Management Show about building referral relationships. They’ve built a powerful relationship that’s resulted in better business for both of them. Strong relationships = more referrals = better business.

Now, we want to narrow the focus, and talk about how you can start to implement a referral program for your property management company, and how you can spread “referral mindset” to the rest of your company.

Just for clarity’s sake: As we talk about referrals today, we’re talking about anyone referring you a potential owner lead. Realtors, vendors, tenants, other owners, and even your neighbor could line you up with your next owner client.

But before you start asking for everyone to send referrals your way, make sure you’re ready to nurture, implement, and give back.

Build Relationships with Everyone No doubt you’ve got clients that LOVE working with you. So make it easy for them to talk you up. This applies with anyone you work with – owners, tenants, vendors, etc – and frankly, anyone you encounter in your day-to-day life.

You never know where your next owner lead is coming from. Sure, tenants might not be looking for a property manager for their own rental properties, but their friend or co-worker might be looking. Don’t forget your vendors either. Your vendors are in rental properties and interacting with folks in the industry all the time. They’re already incentivized to bring referrals to you – so long as you’ve built a strong and trusting relationship – because they know that, if you get another owner lead, you’re likely to ask them to take care of the maintenance work. It’s a win-win situation, so make sure they know you’re looking for, and would be very appreciative of, any referrals they bring your way.

Bonus Content: How to Get Vendors to Grow Your Owner Portfolio

Leads you get from referrals tend to have a better chance of closing. This is because there’s already a more personal element to the relationship you’re building with them. They trust the person who referred them to you, so they’re already looking on you favorably. In addition, referral leads tend to stick with you longer – again, due to the fact that some of the “leg work” of the relationship-building has already been done by the time they find you.

We go into depth regarding building referral relationships in our Property Management Show episode, “Building & Maintaining Successful Referral Relationships”, so for more info on that, head over there.

The Referral Mindset Having a Referral Mindset doesn’t mean you’re emailing everyone you know and begging them to send you the names of all the property owners they know.

It means you recognize that your next lead could come from anywhere and anyone. You’re invested in building strong, honest relationships with everyone you meet.

You can share this mindset with your team. Make time to explain this principle to your company members and provide examples of how their positive interactions with your vendors, tenants, and other clients make your company the one they think of when their friend asks if they know any good property management companies.

Not only will this mindset help your business – it will enrich your life with positive relationships and people that want to help you succeed.

To Incentivize or Not to Incentivize? Should you be incentivizing your network to bring you referrals? Should you be incentivizing your staff to encourage referrals?

It’s a good question, and the answer will depend on whether offering an incentive is a standard practice in your local area.

Do some research on your competitors in your local area, and take note of their referral programs. If it’s common practice to pay a referral fee in your area, your referral program won’t be very competitive without a fee incentive. On the other hand, if no one is offering a fee incentive, you might be able to get away with a referral program that’s more based on the quality of your relationships. Be sure to check in with your competitors from time to time, and note any changes in their referral programs so that your business remains competitive with other property managers in the area. Also, take note of any local laws/regulations that might prohibit paying referral fees or finders fees to specific individuals.

If you feel that including an incentive for referrals could be a positive addition to your company, think carefully about how much you want to pay for each referral. And then, start building your referral process.

Creating a Successful Referral Process So you’ve started building some relationships, had a conversation with your team about Referral Mindset, and you’ve decided whether you want to use incentives or not. You’re ready to build your referral process.

1. Asking – There are plenty of ways you and your team can start to ask for referrals, both formally and informally. Come up with guided language for making referral asks at the end of positive phone conversations with owners and tenants. Listen for opportunities to ask more informally when you’re checking in with your vendors. Finally, set up a page on your website where visitors can refer you owners without you having to ask at all.

2. Collecting – With referrals coming from so many different places, you need one place to collect and track them. An easy way to start doing this is to set up a webpage with a form that visitors can fill out to send referral information to you. Provide areas for the person making the referral to put their contact info, company, and property description, as well as the contact information for the referral themselves and a place to mark whether they have permission from the referral for you to contact them.

You can set up your webpage form to add all submissions immediately to a spreadsheet where you can keep track of all your referrals. If you have a CRM, make sure you have a consistent system to record which individuals referred which owners to you. Sales CRMs like LeadSimple make this very easy to do.

3. Nurturing – Once you have referrals waiting for you to call them, decide what your process will be for contacting and nurturing them. Will you reach out once a week? For how long? Who does the reaching out? Is it you, or a member of your team? Meet with your staff and decide on a flowchart of what you will do once you receive a referral, so that nothing falls through the cracks.

Tip: Before you start creating your flowchart, make sure to check out these blogs which specifically cover key aspects of creating workflows and flowcharts for your property management business.

Part 1: Get in Touch with Your Property Management Company Through Workflows

Part 2: Elements of a Good Workflow for Property Managers

Part 3: Implementing Workflows without Being a Micro Manager

4. Rewarding – You’ve followed up with a referral, and they’ve signed! Terrific! Always thank individuals in your network after every successful referral. This is to underscore the value they bring to your business, and further deepens your connection. Part of this thank-you process may be sending them the incentive or the reward you decided on earlier, or perhaps a simple handwritten card to show your appreciation.

Also, don’t forget that it’s a two-way street. Keep them in mind the next time you come across a potential referral for their business, as well. We don’t just mean referring those same rental owners back to them once it’s time to sell or buy real estate. What we’re talking about is to keep your eyes and ears open for other opportunities you can send their way. Rewarding referrals with your own referrals is a great win-win strategy.

Final Takeaways Referrals are one of the best ways to grow your property management business. The leads you collect from having already created a positive relationship with someone else can be warmer and longer-lasting.

But in order to get the most out of each referral, you need to have a system in place to ask, collect, nurture, and reward. Taking the time to set up your referral process will ensure that nothing falls through the cracks.

If you need help getting more owner referrals, or just getting more owner leads in general, contact us at Fourandhalf Marketing Agency for Property Managers. We’ve helped many business owners like you attract better quality owners online.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post How to Create a Property Management Referral Program: Step by Step appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

How do you build successful referral relationships in property management?

Your property management company depends on relationships, and on today’s episode of The Property Management Show, we’ve asked Paul Boudier and Terri Alcala to join us. They have a unique professional relationship in place, and they’ve been referring business to each other for years.

Today, we’re diving into how their relationship was built and how they manage to sustain it so that each of them can attract more business.

Introducing Paul and Terri Paul (BRE# 01179722) heads the Paul Boudier Team at Keller Williams Realty in Placer County. He’s lived in California for more than 50 years, and he’s been a Realtor for 25 of those years. He feels passionate about his opportunity to help thousands of families in the tri-county area find a home or an investment property that works for them.

Terri Alcala (DRE# 01168555) is a property manager who owns Action Properties in Roseville. She’s been managing properties for 30 years, and Action has been in business for 20 years.

Terri’s mother gets the credit for introducing the two. She was a real estate agent working with Paul in 1994, and she immediately grew to appreciate Paul’s work ethic and the way he presented himself. Since Action Properties is one of the few management companies in the market that doesn’t also do real estate sales, the partnership has been invaluable.

Paul and Terri agree that their relationship works because they make each other look good to their clients. That’s the foundation of a strong referral relationship program.

Referral Relationships in Property Management Use Your Network Terri and Paul were introduced to one another, and you also have a network of people who can introduce you to partners that may help you build a stronger property management business. Look for people you can work with and build relationships with. It’s difficult to call a random Realtor or property manager who you don’t know, so focus on the relationships that are already in place and see what else they can do for you.

With a relationship like the one Terri and Paul have, they refer new business to each other first. But they have other referral sources, too. Terri specializes in specific parts of Sacramento, for example, so when Paul has a client who is in an outlying area, he relies on other relationships in those regions.

Building additional relationships is its own form of lead generation.

Trust Drives Business Neither Terri nor Paul rely on formal contracts when it comes to working with each other or with any other professionals in real estate and property management. They trust the people they partner with – which may seem old school, but is vital in their industries.

Terri says she still trusts that people will do what they say. There’s an understanding, and the people she works with are committed to that.

For Paul, communication works hand in hand with trust. He uses client experience to know that each party is holding up their own end of the bargain. When his clients are happy with the services Terri is providing, he knows the relationship is working.

Every agent and property manager handles their referral relationships differently. A lot of property managers also sell real estate, and, in that case, it’s important to track who is referring business to you. You’ll want to take care of the management of that property and then offer the business back to the referring agent when the client wants to buy or sell. This is all based on trust.

Property managers and real estate agents who are focused on good customer service will end up winning business and building both trust and relationships.

Seeking Out the Experts Instead of sheltering in and keeping all the business you possibly can to yourself, rely on the expertise of others in your network. The relationships you build will bring in better business.

Terri shares an example of 1031 exchanges. As a property manager, she knows enough about 1031 exchanges to be able to have a conversation with a client. But, when a client wants to sell a property and perform a 1031 exchange, she calls Paul. She knows he is an expert in this area and can help her client get a better result.

This is about educating your clients and making connections. Terri probably could have fumbled her way through a 1031 exchange, but why do that? Connecting her clients with Paul makes her look good. It demonstrates her commitment to service and to people.

At Fourandhalf, we’re always struggling against the idea that people are afraid to share information for free. They don’t want to educate people because they’re afraid those people won’t need them. That’s not true at all. You’re building trust, and you’re building a relationship when you educate and share information and make referrals. Even if the person you’re helping doesn’t use you in that moment, they will likely come back to you in the future because they’ll remember how helpful and resourceful you were.

Challenges in Referral Relationships Terri establishes personal relationships with the people she works for and with. Creating partnerships and relationships feels very natural. Her clients have known her for decades and they send birthday cards to her kids.

There are a lot of success stories. There are challenges, too.

While Terri and Paul have not run into any issues in their own relationship, Terri has had some issues with expectations while sharing clients. An agent had referred a client to her for property management, and when that client was about to close on an investment property, Terri conducted an inspection of the property. It was not in rent-ready condition, and she knew that the owner would have to spend at least $6,000 or $7,000 on paint and carpet cleaning and other repairs.

The referring Realtor took these comments to be negative and suggested she mind her own business.

People are going to get defensive and they’re going to misinterpret what you do. This is why working with experts is so critical. The real estate agent probably had an idea of what a rent-ready property would look like, but didn’t have the expertise to know that the home they were about to close on was not ready to be rented.

Knowing a little bit about something doesn’t cut it. Reaching out for help is good business because it serves your clients better and it helps you develop and strengthen relationships and partnerships.

Referral Culture and Focusing on a Good Fit When we’re talking about referral relationships in property management, the burden of networking doesn’t fall on you alone. Neither Terri nor Paul are sole proprietors. They have teams, and it’s important that their teams are on board with building their referral relationships in property management and beyond. Terri has trained her staff to provide clients with two or three agent names when they want to sell or buy property. The team recommends their clients call each of the agents to talk and see if their personalities fit.

A good fit is important to you and your clients.

Even when people call Terri looking for property management, she recommends they call at least two other management companies. Feeling comfortable is important when you enter into a relationship with a property manager or a real estate agent. She works with people who want everything to be automated and she works with people who don’t own a computer. She works with owners who live overseas and haven’t seen their properties in years. She works with local owners who want to get inside and look around during every turnover.

In order to have good referral relationships, you have to have good client relationships.

Paul has found that earning respect through good experiences has helped build business. He knows that when a client needs painting done or gutters cleaned, Terri will have a great list of vendors. She has resources and contacts, and that provides a big opportunity.

The opportunity is more than providing good service to existing clients. It’s about broadening the relationship net. When Terri refers a contractor, Paul has served the needs of his client. He has also been given the opportunity to create a new relationship with that contractor. When he refers that contractor to 12 people throughout a year, it’s not unreasonable to believe he’ll get at least two referrals of his own from the contractor. They’re working together and helping each other grow their businesses.

It’s a conversation Paul calls “The Promise”. When a client of his is happy because they’ve found the right home, Paul wants that client to be a raving fan. To Paul, this means that the client had a good experience and can refer at least two people who are thinking about real-estate.

Terri knows that doing good work for an owner or a tenant can circle back around years later. She had a former tenant refer a co-worker to her management company two years after the tenant moved out. These relationships matter.

How to Grow Your Referral Network This is something you’ve heard before – every business owner is in the lead generation business. You’re making contact with people every day, and every person you meet is a potential lead. Paul has an ambitious goal, which is to make 20 new contacts every day. He leads a team of five agents and every morning they have a huddle where each agent shares:

• What they did the day before
• What they’re focusing on today
• What their affirmation for the day will be

Terri tries to make one or two new contacts a day. It’s often more, and it happens organically. She’ll be talking to her painter, and the painter will know someone renting out a house. Some days, she makes five or six or seven new contacts and other days she doesn’t make any. Her goal is to reach 15 to 20 new leads every month.

We covered getting more owner referrals in a previous blog, but even if you’re not setting out to consciously earn new business, the number of contacts you make and relationships you begin will average out over the course of a month. You’re doing it all the time, even if you don’t realize it.

Paul’s positive energy every morning in his huddle sets a tone for the day, and Terri has learned from that. When her team comes to work every morning, there’s already a lot of negativity because they’ll have after-hours phone calls and maintenance issues to deal with. She brings in Paul’s tactics and also reminds her team to smile when they’re on the phone. People can sense the negativity during a conversation.

If you’re looking for rules to live by while developing your referral relationships in property management, this team has some:

1. Get involved with NARPM. Stick with the industry standards and go to meetings.
2. Network with everyone, from plumbers to staff to family and friends.
3. Sustain curiosity and don’t judge. You never know who needs you.
4. Dig deeper and learn more when you’re talking to people. Get to know their pain points.
5. Read some of these books:
   • A More Beautiful Question by Warren Berger
   • The One Thing by Gary Keller and Jay Papasan
   • The Millionaire Real Estate Agent by Gary Keller, Jay Papasan, and Dave Jenks

If you have any questions, Terri and Paul would be happy to talk to you. We can help too, so contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post Building & Maintaining Successful Referral Relationships in Property Management appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What differentiates a good property management website from a great one?

Back in 2018, we wrote about four of the most important aspects of a great property management website which still ring true to this day: user experience, customer-focused content, SEO, and lead conversion.

Today, we will dive deeper and give you an updated, in-depth look at what it takes to stay ahead of the competition.

Having a strong property management website is a key strategic component of having a successful property management company.

But, how is this achieved?

There are several important things to keep in mind if you want to transform your website from good to great.

1. Pay Attention to Your Site’s User Experience Your website might look nice and modern, but that doesn’t automatically mean that it has good user experience.

To provide good user experience, it must be easy for your audience to navigate.

By audience, we mean your owners and your tenants. Your content should be relevant to them, and they should be able to find exactly what they need when they are on your website. It should look professional and it should represent your business well.

When your site includes videos and images, owners and tenants can visualize how it would be to work with you. This helps develop an instant sense of trust and familiarity.

Website Accessibility Another important piece of user experience on your website is accessibility. Do your images have alt text? Does your website have an accessible color scheme? Do the research and create regular check-ups for your website so that you can ensure on an on-going basis that everyone has access to your information. You can get started by checking out our website accessibility blog, or listening to our interview with web accessibility expert and lawyer, Kris Rivenburgh.

2. Website Content Should Answer the Questions That Matter Anytime you write content for your website, remember the actual person who will end up reading it. What sounds good to you may not make sense to a property owner or a potential tenant.

What Owner Leads Really Want to Know When a prospective owner client arrives on your website, these three questions will immediately enter that person’s mind:

1. Does this company have the property management services that I need?
2. How much will it cost me to do business with this company?
3. Can I really trust this company with my property or properties?

Your website content should answer all of these questions in an easily accessible manner. That means that your copy is easy to read, your pages have clear navigation, and the information on your site is properly organized.

Professional photos are a great way to support what you’re writing about (as long as they include alt text!), but don’t rely on them to get critical information to your users.

3. Treat SEO as a Continuous Process In addition, you also need to continually update and add content to your website to keep up with ever-changing SEO best practices.

Focus on making sure the content and information on your website is meeting the needs of all your users. Fresh pictures, fresh information, and new twists and ideas to make it stand out are essential. You want to make sure your website changes with the right internet trends so your company isn’t left behind.

Blogs are a great way of continually adding up-to-date new content to your website. Research the questions your potential leads are searching for, and then work on creating content that answers those questions. Your visitors will be grateful for finding a solution, and they’ll see you as the expert in your area.

No Such Thing as a Quick SEO Fix Improving your website’s SEO takes time, expertise, and regular updates. There is no such thing as a “quick SEO fix”. But the good news is that you absolutely can take it upon yourself to boost your website’s SEO, as long as you’re willing to invest the time and effort.

Or, you can always get the Fourandhalf team to take this off your plate!

4. Your Website Should Be Converting Owner Leads Perhaps the most important measure to determine if a website is great comes from the amount of business you get from it. Think about your website ROI. You spend money building and launching your website, and you have to ask if you’re really getting anything back.

Tracking Website Conversions How can you determine if your website is delivering you leads? In its most basic form, website conversion (converting a website visitor into a lead) happens through web-form submissions. How many form submissions are you receiving from your website every month? If you’re not sure, start counting.

As you start to track conversions, remember that not all form submissions have equal weight when it comes to monitoring how your website is helping you grow. Separate form submissions from owners and tenants. Without knowing which is which, you won’t have a good sense of whether your website is collecting additional owner leads, or just stacking up tenants and maintenance requests.

Once you start tracking, give your data 6 months to accumulate. Then, schedule a time to look at the numbers and understand how well your website is converting owner leads for you.

Trash Leads vs. Valid Owner Leads If you’ve got someone’s name, email or phone number – anyone’s – you’ve got a lead.

But not all leads are valid owner leads.

As you’re collecting leads from your website form submissions, come up with a process for identifying each of them, and where they’re at in your sales funnel. Some owners may be a sales-qualified lead looking for you to contact them, but some might be marketing-qualified – interested in your content, but not yet ready to bite.

For more on identifying different types of leads, check out The Property Management Show Episode #91 – Good vs. Bad Property Management Leads: Where to Draw the Line.

How Many Owner Leads Should You Get From Your Website? There is no singular answer to this question because it depends on a lot of factors like your target owners, how competitive your area is, how well your website ranks, etc.

But a more important question to ask is, “How many owner leads do you currently get from your website?”

If you can’t answer that question, you need to measure your current performance so you can understand your baseline. Then, come up with a plan on how to improve your current numbers. Try experimenting until you figure out what gets the attention of your ideal clients.

If you need help getting more owner leads to convert on your site, reach out to us at Fourandhalf. Our team has years of experience helping property managers get more owners to notice them online.

Conclusion At the end of the day, you want a website that brings in business, and it should be a tool that helps you reach your goals and grow.

Independently, SEO user experience and content are each critical parts of your site. Don’t get stuck on just one part. Some people become obsessed with getting the first spot on Google for a narrow set of search terms, and lose sight of the fact that website rank is a means to an end.

But consider this: would you rather have a non-converting website that is ranked number one on Google, or would you rather have a website that actually helps you grow your business?

You be the judge.

If you’re ready for a great property management website with a better return on investment, set up a half-hour chat with Logan. We’ll not only take a look at your website, but chat with you about your marketing plan as a whole.

Let’s get you to where you want to be.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post 4 Keys to a Great Property Management Website: Attracting New Business with User Experience, Content and SEO appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

If you saw our recent blog post and video on ADA compliance myths, you know that ‘website accessibility’ is a big buzzword these days. But, what is it and how you can you prevent one of those lawsuits aimed at your property management company, accusing your website of not being accessible?

Kris Rivenburgh is an attorney and founder of Accessible.org. He’s here to talk with us about what accessibility really means for your website and how you can avoid getting a demand letter from an attorney who claims you’re violating the law.

Introduction to Kris Rivenburgh Kris is an attorney who became interested in website accessibility when he noticed people were being sued. It’s a brand new area for many lawyers, and as he began researching what these lawsuits were about, he developed a specialty in a subject that many lawyers and other professionals hadn’t encountered before. Everything written on the subject was vague and ambiguous. None of the information he could find was helpful to people targeted by a lawsuit. He continued his research and began writing about it. Now, he’s a resource for people who need help distilling the legal and technical jargon that keeps them from really understanding website accessibility.

Website Accessibility: An Explanation You want to make sure that everyone visiting your property management website gets the information they need.

That’s website accessibility in its most basic form; you’re making your website flexible enough that everyone can access and engage with the content. You run into accessibility issues when the code and the structure is inflexible.

Potential Accessibility Issues on Your Website There are several things happening on your website that you may not even think could be potential issues for people with disabilities. Kris provided a couple of examples:

• Images. You need alternative text to describe any meaningful images on your website because someone using a screen reader won’t know what the images are.
• Form fields. These need to be labeled correctly or not everyone will understand what information the fields are requesting.

Fair Housing Act and Americans with Disabilities Act: Places of Access There’s a reason that the surge in lawsuits is especially targeted to the property management and real estate industries. Fair housing laws have to be followed. While the ADA was a civil rights law that was written before websites were even a part of doing business, the law addresses all physical places of access. Websites aren’t physical, but they are high traffic places.

Title III in the ADA is where this issue lands when we talk about website accessibility. Places of public accommodation, according to the law, have typically included hotels, restaurants, gyms, and schools. Websites are different, and the courts have come to see that websites are an integral part of daily life. Some judges see them as a nexus with a physical place and others believe that websites stand alone as a place of public accommodation. Technically, the ADA does not talk about websites but you don’t want to argue that technicality in court. If you’ve received a demand letter, you’ve already lost your lawsuit.

The Fair Housing Act requires that everything is accessible, including advertisements. That’s how it applies to your property management or real estate website. Everyone needs access to the properties being advertised on your site.

Lawsuits are Driven by Serial Litigants and Plaintiff Attorneys Something to consider is that 98 percent of these lawsuits are being driven by serial litigants in law firms that are looking for opportunities. There isn’t always a plaintiff who genuinely wants to file a lawsuit because your site and your content could not be accessed. It’s often because there’s an attorney who is testing your website and making claims over and over again when they find sites they believe are non-compliant.

This has nothing to do with actual accessibility or someone being prohibited from reaching content.

There are a lot of great advocates for people who have disabilities. They’re doing good, legitimate work trying to help more people access more information online. Those advocates are not likely to serve you with a lawsuit. Instead, you’re hearing from a lawyer who is making a money grab.

They know that it costs money for a company to defend against a lawsuit. So, they’ll send a demand letter pointing to a particular part of your lawsuit that they can prove is inaccessible. You’ll be offered a settlement that’s less than the cost of your defense. Businesses settle to save time and money. The plaintiff attorneys have nothing to lose. If you receive a demand letter, you’ll lose a few thousand dollars in attorney fees and settlements.

Avoiding Lawsuits: Is ADA Compliance Really What this Is? There’s a lot of confusion over who is regulating what and how to follow the law. Many people are calling website accessibility ‘ADA compliance’, but that’s not entirely what we’re talking about. While we’re looking to the courts to determine what makes a website accessible, we need to pay attention to the web content accessibility guidelines, or WCAG. These are the technical standards from the World Wide Web Consortium. They’ve developed a web accessibility initiative.

Within those guidelines, the WCAG 2.0 is commonly referenced by the courts. There are 38 different bullet points with which you want to conform. WCAG 2.1 is an update and includes 12 additional bullet points.

Theoretically, if you can put all those bullet points into place on your website, you can be comfortable knowing your website is accessible.

This is the best way to prevent lawsuits.

Most of the serial litigants who are sending demand letters are using an automated scan to find the easy areas in which your website is not accessible. When you are meeting the WCAG requirements, the scan will leave your site alone.

Website Accessibility: Start with the Basics The easiest way to tip off an automated scan is by not having alternative text available with your images, keyboard navigability, and accessible form fields.

• All images on your site need to have alt text included with them. Avoid decorative images that don’t have meaning – focus on only using images that support the content on your site. If an attorney finds images on your website without alt text, this is called a gateway claim because it’s an easy violation for them to get a grip on. Then, they’ll start looking for other things throughout your site.
• A user must be able to navigate a website with a keyboard only. A mouse should not be required.
• Form fields have to be accessible for screen readers and all the headings have to be in order and easy to spot, with adequate color contrast.
• Make sure you have a navigation bar.
• Focus indicators are needed for anything interactive, including links, controls, buttons, etc.

Stay away from slide shows. They are often great for marketing and you can add more content to them, but from an accessibility standpoint, they can be a problem. Simple is better.

Avoid what you don’t need on your website. A lot of problems arise with third party widgets and scripts. The social feed widget that you downloaded may not be accessible. Pop-ups are huge problems from an accessibility standpoint. They’re also annoying for all your users. Leave them out.

The plaintiff attorneys are looking for easy cases. They aren’t going to send a demand letter if there’s one color contrast issue in a footer. They’re looking for the obvious. We still don’t know their methodology or their formula, but we know they aren’t going to send a lawsuit over something that can be argued. It has to be obvious and it has to lead them to look for other accessibility issues.

Train Yourself to Upload and Update Content with Accessibility in Mind This may leave you worried about how you make changes to your website. Will adding a blog post throw off your website accessibility?

Kris says no. As long as you’re making an effort and being proactive, you’ll be okay with a blog post.

You can train yourself to upload content accessibly. The danger comes in constantly reinventing your website because that means you’re always going to have to check for accessibility issues. In a blog post, you need to be aware of your headings and any ambiguous links that might be there. Make sure video and audio content can be opened easily by everyone on the site.

Don’t Fall for the Free Website Check Yes, there are automatic tools that claim to scan your website, catch any red flags, and instantly make your site accessible.

Maybe you’ve received an offer from a company that will perform this scan for you and give you an idea of how accessible your site is.

Kris doesn’t recommend you use them. They promise to fix your site accessibility with a line of code which an icon on your site. When the icon is clicked, it will add an overlay that mimics a screen reader, and they claim this will instantly make your site accessible.

This might make you feel better, but it doesn’t mean your website is actually accessible. Instead, it asks people with disabilities to use an overlay to get to your content. That’s not accessibility. It’s forcing users to do something different and it’s insufficient.

Your website cannot be made accessible simply and overnight. You aren’t actually reducing your risk of a lawsuit.

Accessibility is a process. It doesn’t have to be a big ugly thing that’s too hard to do and it doesn’t come with an endless cost. But, you do have to make an effort. It has to be addressed and it has to be monitored.

Be wary of anything or anyone that offers immediate accessibility. You can either risk a lawsuit or do the work. The demand letters will keep going out with or without your action.

Be Proactive With Your Property Management Website In the real estate and property management community, you are especially at risk for receiving one of these demand letters. If you’re hearing about colleagues who have received them, you can safely assume that you’re next.

Take down the things you don’t need on your website right now and work on making it accessible. Be proactive and be aware. The website owner is always ultimately responsible for the website. You are responsible for what you own and control. You can blame your developers and designers, but this is still new and the industry is still working through best practices and defenses. The nice looking website you paid for five years ago needs some things changed. Be prepared for that.

What’s most frustrating is that there are no explicit laws or mandates that say private businesses must have accessible websites. There was no notice that this would be coming. The government and regulators need to step up because no one is against accessibility, but companies shouldn’t be held accountable to laws that they didn’t know would pertain to their sites.

Don’t wait for the government or the regulatory agencies, however. Take the necessary steps now.

You can reach Kris at Accessible.org and if you have any questions about how to make your website more accessible, you can always contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post Website Accessibility 101 for Property Managers with Attorney Kris Rivenburgh appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Myths About ADA Compliance for Property Management Websites As the owner of a property management company, you know that compliance with the Americans with Disabilities Act (ADA) is critical. Lately, there’s been a lot of talk about ADA compliance and property management website accessibility. But, what does that really mean?

We’re seeing an increase in lawsuits filed against property management companies and real estate agents, and while the concept of website accessibility is widely known, there’s still a lot that can be misunderstood, especially when it comes to property management websites.

That’s why we’re here today: to talk about some of the common myths around this subject.

Myth 1: Property Management Companies are Sued When Their Sites aren’t ADA Compliant This statement doesn’t really give you the full picture.

At Fourandhalf, we’ve seen samples of these lawsuits, and they reference the Fair Housing Act far more frequently than they mention the ADA. As a property manager or a real estate agent, your company provides access to housing via your websites. So, if your website isn’t accessible to someone with a disability, it could be viewed as discrimination.

The ADA doesn’t have specific rules surrounding websites. There’s no formula for you to follow, but those who are bringing lawsuits and targeting housing-related websites because fair housing lawsuits are easy to file, and they’re out there looking for potential violations.

Myth 2: You Can Make Your Website 100 Percent ADA Compliant This myth is FALSE.

Saying that your website is “100 percent compliant” gives the impression that you’re safe from any potential lawsuits. But, that’s a dangerous misconception because the accessibility guidelines are always changing. The guidelines in place right now are not law – they’re guidelines. So, you can never feel like you’re 100 percent compliant with any part of the ADA guidelines. You don’t know when they’ll be changed.

There’s also a problem with the term “ADA Compliance.” This is misleading because when it comes to your website, the complaints and lawsuits are likely to be fair housing related, not ADA related. To reduce any confusion, the better term is “Website Accessibility.” That’s really what this boils down to.

Myth 3: The Company I Hired to Host My Website is Responsible for Website Accessibility This myth is also FALSE.

Start by checking your agreements. Website accessibility is a moving target. It’s similar to SEO; this isn’t a fix it and forget it one-time adjustment. It’s an ongoing process. You need continuous monitoring and analysis to keep up with all the changes to best practices.

At Fourandhalf, we recently completed a review of a number of these website accessibility lawsuits, and our team is updating our current accessibility standards accordingly.

If you’re one of our website clients with a continuous improvement agreement with us, you can expect our accessibility improvements in your upcoming review cycles.

Myth 4: My High Accessibility Score with Online Checker Tools like Wave Means I’m Safe That’s another FALSE.

Like we have said, accessibility is a fluid and moving concept, and getting a high score doesn’t make you immune to potential lawsuits. We have seen websites with high scores that are still being sued. A good score on Wave doesn’t guarantee you’re safe.

Myth 5: If You Get Sued and Settle, You Won’t Get Sued Again Sadly, this isn’t entirely true. Each jurisdiction is different, and highly dependent on the judge within the jurisdiction. But it is possible to get sued again. Settling one lawsuit does not make you immune to future lawsuits.

Accessibility for property management websites is an important topic. It is something everybody needs to be educated on, and although no one wants to be sued, avoiding lawsuits should not be the end goal.

The end goal should ultimately be accessibility.

We know this issue is complicated. On our next Property Management Show podcast, we’re interviewing a lawyer with expertise on website accessibility. If you didn’t get this blog through our newsletter, make sure you subscribe so you won’t miss that important episode.

If you have any questions about ADA compliance and property management websites, or anything related to your property management marketing, please contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Click the image below to get a free marketing assessment and find out how to start getting better clients into your portfolio.

The post ADA Compliance Myths for Property Management Websites appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We’ve encountered a few strange email messages and social media posts recently, and that has led us to think about phishing and the dangers it poses to your property management company. A few months ago, we talked to you about email spam, and this blog today is a follow-up.

Spam is unwanted communication, which is usually delivered by email. It’s annoying, but it’s technically legal.

Phishing is a criminal activity that involves fraudulent communication designed to get confidential information from you. It’s usually an email or a phone call or a response to a form on your website. The perpetrators will steal your credit card information and take your money, or they’ll sell the information taken from you to other criminals.

You need to know how to identify it and what you can do about it.

Property Management & Phishing: Identifying and Avoiding Phishing Emails Unfortunately, there’s not much you can do to avoid this sort of phishing. There are bad people all over the world, and thanks to the internet, they’re now as close as your backyard.

The golden rule is this: Be Suspicious.

Just last week, I got an email that claimed to be from Quickbooks/Intuit. The email said that our last payment didn’t go through correctly. This stood out as strange because at Fourandhalf, we don’t pay directly for Quickbooks. It’s provided to us by our accountant. So, I questioned why I was getting the email. It could have been possible that the accountant forgot to pay our Quickbooks bill, but I knew it wasn’t likely.

Here’s what I did to determine this was a phishing email:

1. Who did they send the email to?

They sent it to hello @ Fourandhalf. That’s suspicious because it’s the email address dedicated to our incoming marketing messages. Half a dozen staff members receive those emails, so it likely wouldn’t be used for the company’s financial information. That was the first clue. 2. Who is the email from?

The email didn’t come from Intuit or Quickbooks. It came from billingintuit.com. That’s suspicious.

Normally, these two things would have been good enough for me to determine that the email was shady. Another thing I noticed is that the email just didn’t look right. There was odd formatting. The spelling was correct, which is unusual, but the message didn’t seem to take up the right amount of space in the window. Some lines of text were bold and others weren’t. Different sections had different fonts. There was also a Fix It Now button. It wasn’t the best quality and I don’t think Intuit or Quickbooks would have put this out themselves.

This email wasn’t asking me to click on a link or go to another site where I would put in my information. Usually, that’s what phishing companies do to gather the information they need. This email asked the recipient to call. That’s also dangerous; people on the other line could be collecting your information by voice. Don’t think you’re safe just because the email isn’t asking you to click on something.

Phishing Messages from Websites Another example came to us from someone on Facebook. This company had a form on their website that people could fill out for more information. They received a message through that form from someone claiming to be a photographer and an illustrator. The individual claimed that the images used on the website belonged to him and he held the copyright on them. The message asked the company to contact him.

Again – suspicion is good.

First of all, this came in on the website contact form. That’s not how anyone with a copyright issue would normally get in touch with a company. You’d get an email or a letter. You’d probably get a registered letter from a copyright attorney.

If the photos were improperly used and violated the Digital Millennium Copyright Act of 1998, it’s the website host who would be contacted. So, if your site is run by Go Daddy and you’re using someone else’s pictures, Go Daddy would be contacted and asked to take the photos down. You’d be hearing from your hosting company, not the individual themselves.

There were also misspellings and we noticed a lot of bad English.

What Can Property Management Companies Do About Phishing? This isn’t something you can stop, unfortunately. The best thing to do is to be suspicious. If you’re not sure whether the email or the message you’ve received is legitimate, ask around. Talk to other people in your office. Don’t click on links and don’t call the phone numbers. Never reply to these emails because that simply tells them that your email is real, and that’s valuable.

If you’re a Fourandhalf customer, send anything suspicious over to us. We’re happy to take a look and do a little investigating.

Technology does a lot of great things for us, but it also opens us up to extra risks. Contact us at Fourandhalf if you have any questions about spam, phishing, or any of the other suspicious information online that may threaten your property management business.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Don’t Take The Bait: Protect Your Property Management Business from Phishing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Ever heard of the saying, “Your reputation precedes you?” When it comes to property management online reviews, this saying is even more true. Lots of people have opinions and the internet has made it easier for them to share it.

You can harness this to your advantage by using online reviews to boost SEO as part of including it in your property management marketing strategy.

Property Management Online Reviews & SEO: Why Bother With Online Reviews? Imagine that your cousins from Canada are coming to visit. They ask you where to eat and you recommend the little bistro you always go to because they make the pasta in-house and the staff’s extremely friendly. It’s a no-brainer, right?

Now imagine if you take your Canadian cousins on a road trip to a place you’ve never been to before. How would you know where the best places are?

It would be reasonable to ask the locals for their favorite restaurants. They’ve been to those eateries before, tried the products, and experienced the service. Their personal recommendations would be more unbiased and trustworthy than any ads you might see in town.

Google and other search engines trust personal recommendations, too. In fact, Google relies on the opinions of the people that have used your business so much, that it’s a factor in ranking your website for SEO.

Quick aside: If you’re scratching your head thinking, ‘what’s SEO again?’ Don’t worry, we’ve got you covered. Check out our blog on SEO basics for a refresher.

So, how exactly does Google choose which website to send your potential clients to?

How Online Reviews Improve Your SEO The more your online reputation improves, the more SEO-friendly your site becomes. But why?

First, if you syndicate online reviews to your website, search engines will consider new ratings as fresh content. Syndicating just means you’ve installed a widget on your site that’s connected to Google or another reputation source, and that when a new user writes you a review, it automatically appears on your website. You get new testimonials from happy clients without having to put in extra work.

Second, online reviews help with your click-through rate. Click-Through Rate (or CTR) is the number of clicks you get on a link per the number of people who view it. The more clicks you have, the more trustworthy you are to Google. SEO for property management websites has definitely come a long way from the days of just adding random keywords to the end of your webpage and hoping someone finds you.

We Can Help Property Managers With Online Reputation Need help managing your online reputation? Reach out to us at Fourandhalf. We’re an experienced marketing agency for property managers and we can make sure that your reviews are syndicated properly to your website so that you get more value out of each click from potential clients.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Do Online Reviews Help SEO for Property Management Websites? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What if we told you that the property management sales process starts long before you make a pitch? And what if we told you that you’re already selling even before you realize that you’re doing it? This revelation is why we’ve titled today’s episode “How We Sell…” instead of “How To Sell…”.

Today on The Property Management Show, we’ve invited Todd Cohen to tell us what this means and how you can use this knowledge to change the way your team thinks about sales.

Introducing Todd Cohen Todd Cohen is a keynote speaker and a workshop leader who is passionate beyond words about showing people how every one of us are in sales every day. He works hard to dispel the negative stereotypes that are often attached to the idea of sales. Those stereotypes hold us back professionally and personally.

Since leaving his last corporate job 12 years ago, spreading the word about sales has been Todd’s mission. Before COVID, he was doing 90 appearances a year, and he’s still delivering online speeches and workshops about his thesis that everyone, no matter who they are and what they do, is in sales.

Your Sales Process Starts Before You Say a Word In traditional sales training, there is a nuts and bolts methodology that says the first sales call is the most important moment in the process. It leads to getting the contract signed and the product delivered. That’s a very 1990s way to think about sales.

Really, property management sales, and all sales, begin before you even say a word.

We are all consumers. We all make decisions the minute we see something or somebody. When you encounter a human, you immediately form an opinion.

Either you will feel good and you will feel like you’re in the right place, or something about the situation or the person will tell you that this isn’t the right place for you. It depends on how the person doing the selling shows up.

This is what most people miss, and it’s to the detriment of organizations.

Today, people have shorter attention spans and they’re making decisions quickly. Humans are disconnected from each other and busy with their phones and computers and moving on to the next thing. There’s a narrow window to start the sales process. Missing that window makes everything harder.

The moment you show up to a person is where the sales process starts. It’s the most important moment.

Readers form opinions. Podcast listeners make decisions. There’s an inherent bias that comes with your buying decisions, and that has to inform how you show up and how your team approaches every interaction with current and potential customers. The reality is that people make a buying decision initially and in a split second.

If you’ve read the Malcolm Gladwell book, “Blink,” you know that there’s a moment when the buyer unconsciously realizes that they need to buy something. Everyone sells in all interactions.

Sales People: Born or Bred? Trained or Talented? Are property management sales people are born or bred? Do they fall into those roles naturally or is it a product of their experience and mentors?

Todd says yes and yes.

More important is the question of how we define sales people.

Some people chose a profession in sales. And then there’s the rest of us. Everyone has to sell themselves and make a decision about how to show up. We try to sell ourselves so people will build relationships with us. We try to influence others. Every human being does that.

Choosing sales as a profession is a little different, and it’s not for everyone. People have a sense of not wanting to be in sales because they fear rejection or they have a hard time asking for things.

There’s no such thing as rejection. It’s a myth.

Rejection is personal, and in sales it doesn’t happen that often.

Proposing to a spouse is one of the hardest sales calls in the world. So is convincing your toddler to eat peas or asking someone to move their car because you’re blocked in. All of those situations involve sales. The stereotype of selling is negative, and self-identifying sales people deal with it every day.

Words to Never Say: “I’m Just The…” “I’m just the ____” are the three most damaging words to an organization or a career. Don’t say this to a tenant or a client or an employer. Explaining why you can’t help or be responsive because you’re just the receptionist or just the assistant is going to shut down the sales process very quickly. It sends two negative messages:

• The person asking for help should go elsewhere.
• The person responding doesn’t value themselves.

People would rather do anything than understand they’re selling.

Everything is sales, and everything influences how people think. Decide how you want to show up.

Property Management Sales Process The Business Development Manager at your property management company is the initial point of contact and the professional who first speaks to a property owner about why they should hire your company to manage an investment.

The property manager who receives that new client once the deal is signed is also selling, and it’s very important that your property managers realize that.

Sales is a mindset.

Sales is a behavior.

When you look at sales as a mindset and a behavior, you can train people in your organization to understand that when they’re engaging with anyone, they’re selling. They don’t have to do anything differently, but they do have to think differently about what they’re doing. It will impact the next email that’s sent and the next greeting they make.

Training your people in good customer service isn’t enough. You have to make sure that every employee is looking at every interaction as meaningful. It has a systemic and profound downstream effect on a prospective client signing a deal and staying with you at renewal time. It has an impact on how that client will react when they get upset during the lease period.

Consumers make buying decisions based on interactions, and then all future sales process validate their decision.

If everyone on your property management team doesn’t embrace the notion that they’re in sales every day, and they don’t see that how they show up matters, there will be a crack in your culture, potentially a leak in your sales funnel, and someone will send a message that tells a customer they’re in the wrong place. That’s the essence of your sales culture. It takes a lot of courage to think differently about each interaction.

Not every company is up to it.

You don’t have to change the processes or the manuals; you have to change the mindset. Then, the actions will follow.

Recovering from the COVID Climate: All Hands on Deck When you’re thinking about how to strengthen your property management sales process post-COVID, the message to adopt is that everyone’s in sales. You need all hands on deck if you want to recover and move forward. Todd believes this has never meant more than it does now.

People are terrified from the economic fallout of this pandemic. They’re worried they may have overextended themselves on their lease. Companies aren’t sure if they have the right people in place. You can’t miss a single opportunity. The profound mindset shift is not optional; it’s more important than ever.

Having the right people will make a difference in your organization. One of the critical points Todd makes in his keynotes and presentations is that it no longer matters what you charge or what your services are or how efficiently you deliver those services. People are looking for the difference maker.

When you’re looking to hire a new team member, ask this question during the interview:

Tell me about something that you’ve sold in your life.

If they can’t tell you that they’ve influenced someone to achieve a goal, then this is not someone you want to hire. They should at least be able to recognize that they are selling themselves in that moment, at the interview.

Everyone is in sales. It’s a mindset, and it’s mandatory. It’s also a critical cultural shift for your company’s recovery post-COVID. It doesn’t cost anything to change your team’s mindset. It simply requires your time to point out to people that what they do matters.

Looking at Everything through a Sales Lens People can feel you smiling when you answer the phone. You’re selling just by doing the things you do every day. It’s about taking the time to appear the right way and send the right message.

Getting your people on board with this type of thinking is the secret sauce of Todd’s workshops and keynotes. He says you can’t make it a gigantic mountain to scale. It can be as simple as pointing out examples of how what people do every day is essentially sales.

Consider the HR person who has a property manager come to the office and ask to hire a new landscaping contractor.

When the HR person writes a better job description and gets the right person hired faster, that sales function quickly makes its way down the road through the company. It led to better candidates and quicker decisions, which will later lead to better marketing and tenant placements because when prospects come to the building and see a well-landscaped community, they want to live there.

By hiring a landscaper, the HR person did not think they were selling anything. But, it was part of the sales process. It’s big thinking and it’s a huge concept.

You don’t have to provide sales training. You don’t have to teach your employees how to sell.

Instead, you have to show them how what they’re doing right now is sales. They’re already doing it.

Everyone’s in Sales – So Every Team Member Matters No one wakes up in the morning saying they’re proud to be overhead. No one wants to feel like they don’t matter at their job. When you can show people that the things they do every day leads to revenue coming in the doors, they’ll see themselves as part of the sales team. People want to make a difference.

Encourage your staff to create relationships. Make your team members feel like advocates.

Todd had an experience living in a planned community where he owned a home and had a great experience with the maintenance staff there. The maintenance chief greeted him by name every time they spoke, and this is a sales tool. Using a person’s name demonstrates for one second that the person you’re addressing is important. It creates buying decisions.

The maintenance chief in this community was responsive when he didn’t need to be. Todd’s water heater exploded and he couldn’t find a plumber. Within five minutes, the maintenance person was at the door with a bucket and a mop. It was a priority. If Todd had told this person that he was a great sales person, the maintenance chief would have argued that he wasn’t in sales – he was just the maintenance chief. But, he’s actually in sales too because he influenced Todd’s behavior and reinforced that he made a good decision by buying a home in the community.

Typically, when anyone thinks about the property management sales process, it looks like a straight line. It starts and ends. But, with a recurring revenue businesses, you’re making a sale every month that someone pays. That buying decision has to be reinforced over and over again.

How Approachability Affects Sales Todd suggests looking at the Boeing Company because this sales mindset applies to small companies and large corporations. When all those plane crashes were occurring and Boeing was called to Congress, the company did not do itself any favors. The CEO showed up and did a terrible job. He missed the opportunity to sell his company. People were holding up signs saying their kids were killed in plane crashes. There was a lot of hurt and anger. At that point, Boeing should have begun with vulnerability and humility and humanity. Those are all sales tools available to everyone, regardless of the industry.

If you’re approachable then you’re profitable.

Showing humanity now is especially important. There’s a lot of chaos, and people aren’t at their best.

The lesson Todd says we’re learning with COVID is that there’s a recovery mindset, which is actually the same as the sales mindset. First and foremost, you have to shut up and listen. People want to share their pain, and it’s a good way to build a relationship. It’s also a selling tool. No one wants to hear push back. People need you to understand where they are and how they feel. Those who understand that will do a great job with sales.

Listening is something so many people just don’t value. But the first thing you should do as part of any process is listen. Listen to the people talking to you.

Todd shared that between March 19 and March 23, he lost 80 percent of his business. All his events were canceled and the work just evaporated. He had a choice. Todd could have been difficult with the people who had booked him. He could have insisted on collecting cancelation fees and anything else that was in the contract, or he could have been a jerk, but it’s not to anyone’s benefit to be a jerk.

The first thing he said to the people who called him was that he was sorry. He was sorry for what they were going through, and he knew it must have been a difficult call for them to make. This created longer and deeper conversations that were more meaningful.

Todd knows that most of this business at some point will come back. He also knows that customers aren’t going to like you if they feel your desperation. It scares people off.

The Takeaways for Property Managers The main takeaway that property managers and their teams can gain from this podcast is:

Never waste an interaction.

Everyone is in sales. Not because we’re knocking on doors and selling products and services. Adopt the mindset that every interaction leaves a mark. It leads people towards buying your property management services or renting a home from you.

This is a huge topic, and if you’d like to learn more about Todd and his workshops, check out his two books: “Everyone’s In Sales” and “Stop Apologizing and Start Selling.” You can also visit his website at toddcohen.com.

You can always contact us at Fourandhalf as well. Thanks for joining us.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post How Property Managers Sell Before Saying a Word appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Guess who’s back? (back again!)

That’s right, Google reviews. The day has finally come and the suspension of Google reviews during COVID19 has been lifted.

But what does this mean for your property management reputation? What will happen to the reviews submitted during the suspension? Does this mean that things are back to normal now?

We’re answering all those questions for you today.

Google Reviews During COVID19 Update: Publication of Suspended Property Management Reviews Has Begun Several weeks ago, we talked about the updates Google and Yelp had rolled out in relation to COVID-19. As you probably remember, there was no clear guidance from Google about what would happen to the reviews that were submitted during the suspension.

Now, we know.

According to Google, the reviews and photos submitted during the suspension will gradually be published online. Those reviews will reflect the original date of submission and not the date of publication.

At Fourandhalf, we checked our reputation management software in late April, and we found that none of our clients had received any new Google My Business reviews because of the suspension. But, this week we found reviews that date back as far as April 1. So, they’re starting to pop up on your Google My Business page, which means the property management industry is feeling the effects of the change right now.

New Reviews and Instant Publishing So, what about brand new reviews?

According to Google, this functionality will return gradually based on country and industry.

We don’t like to wait, so we did a little testing for our property management clients.

Marie reviewed the property management company that oversees her apartment building. While she still received a warning message from Google that her review might be delayed, she checked with an incognito browser a little bit later, and the review was published right away.

It seems that property management company reviews are back to normal with Google.

Tips on Optimizing Your Online Reputation With reviews open for business again, you want to make sure you’re doing the best you can to maintain or improve your online reputation. We have some tips.

• Make sure you’re managing the expectations of your owners and residents. You also want to think about the would-be tenants who are online. There’s potential for a lot of frustration from missed communications and misunderstandings. Don’t let those frustrations turn into permanent negative reviews on your page for everyone to see.
  • If you have any policy changes or you’re doing things a little bit differently due to the pandemic, make sure you’re communicating that on your website, in your emails, on your statements, and even on your Google My Business page. COVID-19 posts need to be identified within Google My Business so you can communicate relevant information. COVID posts are going to the top of search results when people use Google. You can and should still publish normal posts, but if there’s a policy change or something to be communicated related to the coronavirus, you want it to be seen everywhere.
• Make sure you’re getting notified when a new review is submitted to Google My Business. Maybe you have an old email address and no one checks it anymore or all your notification emails are going to staff members or through a filter. You want to know when reviews show up.
  • Once you’re sure you’re getting notifications, block time in your calendar to read each review that comes in, and decide whether the review merits a response. When responding, don’t do it in your feelings. Be objective. Things can get out of hand easily. Don’t stoop to the level of a negative reviewer no matter how tempting it might be.

Essentially, things are back to normal with Google. But, managing the online reputation of your property management company does not end there. Your main goal is to generate authentic, positive, and consistent customer reviews.

If you need help improving or maintaining your online reputation, or have questions about managing your Google reviews during COVID19 and beyond, remember that’s we’re here to help you do. Contact us at Fourandhalf.

Fourandhalf helps property managers strategize and implement marketing plans. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Google Reviews Are Back: Take Control of Your Online Reputation During & Beyond COVID-19 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Bob Abbott from Alarca Realty in North Carolina used to be a work-from-home skeptic. Now, he’s an advocate, and we asked him to join The Property Management Show to talk about how to establish a virtual property management team and what you can do to keep your team members productive and accountable. We asked him to talk about the tools he uses to make this work for him and his company.

Introducing Bob Abbott and Alarca Realty Alarca Realty handles properties in the Charlotte, North Carolina market. They’ve been in business since 2005, and Bob got started in real estate because he wanted to flip houses. Then, he moved into property management and was comfortably building that business when the last economic storm arrived. He and his company have been focused on property management since 2010.

Transition from Brick and Mortar Office to Virtual Property Management Team Turning your property management company into a remote business doesn’t happen overnight. Baby steps are best. Bob started by talking to people at conferences. He planned and mapped this out three years before taking any concrete steps.

Then, he turned some of his invoicing over to a company that provided virtual assistants. It was working well, so he hired another company called Virtually Incredible to help with processing applications.

As this continued to work, he began to hire virtual assistants on his own, without the help of a third-party company. Remote assistants and virtual team members began doing marketing and now they also talk to clients and tenants.

Cost was a factor in this decision; remote labor is cheaper. But for Bob, even more important was keeping his core team happy. His local employees were feeling overwhelmed, and as he slowly began to take things off their plates and advertise for the jobs they didn’t want to do, everybody began doing better work. It was a win for the company, the current team members, and the new remote workers.

This began in 2014, when Alarca Realty had three full-time employees and about 140 doors under management.

So: how remote can you take your property management business? For Bob, anyone who needs to set foot on the property obviously has to be a local employee. Everything else is done remotely. Bob has a separate maintenance company and the maintenance crews handling repairs and turnovers need to be in the local area.

Keeping the Company at a Comfortable Size With his virtual property management team making growth easy, the company grew to managing 250 properties. Then, there was an epiphany about work/life balance, and Alarca Realty slowly began to shed the clients who weren’t fun to work with. Bob focused on keeping the happy clients and culling those who were never happy or who were difficult for the team to manage.

If you’re like most property managers, you probably remember the early days of signing every owner who wanted to hire you.

It doesn’t have to be that way. Alarca Realty is in a place where it’s okay to be selective, and they’re managing about 150 doors. The upside for Bob, he says, is that he can spend his summers with his family while working two to four hours a day.

Working with clients who align with the company’s vision has made a big difference, just as remote workers have. Any owner who didn’t want to perform necessary maintenance on their property was cut. Any owner who was abrasive and rude to Alarca’s team members was also cut. There was a bit of a financial hit initially, but the company is more productive now, and happier.

Checklists and Workflows and Process: More Important than Ever It’s easy to think you’ve thought out an entire process before you implement it.

The basics can easily get lost when you’re planning to move your entire team remote. For example, new remote workers had to be trained on logging into PropertyWare. The training has to be specific, and Bob put together checklists and made videos.

He also used a tool called Screen CastOMatic, where he could film himself doing something. He’d share that link with his virtual assistants so they could see exactly how things were done. It’s an ongoing process because software changes and so do technologies. As you grow, more people are using your checklists, and you have to begin relying on those team members to update the checklists.

They don’t always do that.

Bob’s solution is pretty brilliant. In his market, the slowest months of the year are November and December. So, every Wednesday in November and December, the company closes for process improvement days. No one answers the phone or handles regular business. Instead, they focus on tightening up checklists and improving workflows and procedures.

It takes this part of the process out of the day-to-day work for Bob’s virtual property management company. It’s not an interruption.

Accountability: Helping Team Members Own the Process All accountability starts at the top. If you are being asked questions, you have to answer them. But, that only trains your employees to keep coming back to you with questions.

When one of Bob’s team members asks him a question, he answers by:

• Asking what the checklist says.
• Asking whether what the checklist says is wrong, and why.
• Asking the employee’s suggestions for changing the checklist.

This has minimized the questions that his team asks. They solve the problems on their own and they can usually find their answers in those checklists. They no longer need the validation from the company’s owner that they’re doing the right thing.

The daily huddle is another way that everyone stays accountable and on task. If you have a traditional office, you can show up in the morning and people are grabbing coffee and talking intrinsically about what’s happening in the day. So for a remote team, you may need a 15-minute chat about the red flags for the day. Cover what’s going on during the day so the whole team is aware of any potential issues.

Maintaining Morale with Remote Team Members When you are working remotely, maintaining positive morale is important. The daily huddle helps with this as well.

Bob’s team uses Slack, where people post random photos from their weekends or share jokes and conversations. This is a good way for Bob to give his team personal attention. The online community that’s established allows him to show his team members that they’re important and valued.

Listen to your virtual assistants when you’re looking for ways to improve morale. Most of them have done remote work for other companies. They can tell you what works and what doesn’t.

It’s hard to find a downside to remote workers, particularly in this environment. Alarca Realty’s business has not missed a beat during this crisis. Everything is moving along the same way that it always has. It takes time to establish the right systems, and you have to have the right personality to manage this successfully. You also need great documentation.

This is the opportunity many property management company owners have been waiting for; it’s a chance to let go of the tasks they don’t want to do. It optimizes your team. Remember also that you don’t have to create full time jobs for every remote worker you hire. If you have 20 hours of work a week and you can outsource to Planet Synergy, that’s a great way to start.

This won’t work for everyone. Some people love going to the office. They like going in and being with their employees. They like to see their team and have their tenants come in and pay rent.

Shared work spaces are still used by Bob and Alarca. If a tenant wants to see a human face or hand over a rent check, they can do that. He’s also using a mailing service where the company’s mail is picked up and opened, then scanned. It goes to one of the virtual assistants and no one even has to open any mail. It’s called Anytime Mailbox, and not only is this a time saver, it also eliminates junk mail.

Productivity and Accountability: Setting Standards Bob was once skeptical of people working remotely because he expected they’d screw off all day and get no work done. You have to trust people. You know that there are people who don’t pull their weight; most company owners know who those people are, and you’re going to have them whether you’ve got a remote team or an in-person office staff.

There’s a tool called Time Doctor, which takes a screen shot every nine minutes that reflects what the team members are doing. They also have to record what they’re working on. The keystrokes of the mouse are recorded as well, so it’s easy to see what each employee is doing. It tracks productivity.

This may sound invasive and terrifying, but it’s not meant to be something that you’re watching all day long. Bob uses it only to verify any suspicions he has about a team member who may not be working the way they should be. He doesn’t monitor his team and reprimand them for watching a YouTube video once in a while.

Remote workers are accustomed to this. It’s not uncommon.

Hiring Remote Workers for Specific Jobs Bob hires very specifically. He has one person who is a client service representative, and her job is to talk to everyone. She’s not doing any marketing or work orders; she’s talking to owners and tenants. Her job description is to pretend she’s the client so she can be responsive and provide an excellent service.

If your bookkeeper leaves your property management company, you can probably hire two or three remote workers for what you were paying your bookkeeper. That allows them to work better and to focus on specific parts of the bookkeeping job. It’s specialization that leads to better service.

Culture is every bit as important with your remote team. You have to hire for the right fit and position. No two people are in the same place at the same time. You’re still a team.

When COVID first hit the country, Alarca Realty sent out a bulk email to all tenants inviting them to get in touch if they needed help or if they were struggling with rent payments. The remote team was nervous about calling the tenants; they didn’t know what to expect from people who were stressed and financially unstable. So, Bob made the first four calls. He recorded himself talking to those tenants, and the team could use those videos as trainings. Now, they know how to handle these calls.

When you’re training people, it’s tempting to teach one instance. But, there are always going to be unique situations and stipulations. Providing multiple examples is extremely helpful.

Bob is quick to admit that employee onboarding is not his strongest skill. He’s working on getting the first 30 days really lined up for his new hires.

Nick Cook in Portland did a fantastic job on his onboarding manual. He has quizzes and links to videos and articles, and Bob has realized he can take those videos he made for the phone calls and make it part of his onboarding process.

Bob’s Four-Hour Remote Work Day Bob’s work day is dramatically different than it once was. He does the huddles every day for both Alarca and his maintenance company. Then, he puts in about four hours a day. He can work more if he wants; there’s always something to do. But, the day-to-day tasks are in the capable hands of his remote team.

Two team members have been with the company for over three years. They have access to credit cards and are able to pay the bills. They pay utility bills and reconcile bank accounts. With remote work, the opportunity for fraud has actually disappeared. There are no paper checks and nothing to steal. The risk is low.

As the owner of a virtual property management company, Bob’s day now is spent managing and troubleshooting. He uses Help Scout, which is an email box that everyone can access to see what’s going on and what needs to be done. It shows previous emails and provides a summary that helps Bob with process improvement and business development.

He’s also doing business development and talking to potential owners. The next hire will likely be a BDM and an onboarding specialist.

Tools and Checklists for Virtual Property Management Teams In addition to implementing EOS, the best tools Bob is using to keep his remote team accountable and productive are:

• Daily huddles
• Process improvement days
• Slack
• Google Hangouts
• Time Doctor
• Help Scout
• Process Street
• Tenant Turner
• Anytime Mailbox
• Transferwise

These things can help you keep a culture and a team together even while everyone is apart.

The checklist system will be your most important asset, and Process Street is a good place to start. A remote showing service like Tenant Turner or Rently is critical. Allow tenants to pay rent in cash at Walmart with a Rent Money or a Pay Near Me system.

Treat your remote workers like your team. They’re not different because they’re elsewhere.

We’re happy Bob was able to talk with us about his virtual property management team today. If you have any questions, contact him at Alarca Realty, or get in touch with our team at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post How to Keep a Virtual Property Management Team Accountable and Productive appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

This week, we thought we’d change up the pace a bit.

We know there’s a LOT of content coming out right now about COVID-19 and how to protect your business. Over the last few months, we’ve tried to put together resources for property managers like you, to help you stay afloat and weather the pandemic as smoothly as possible. It’s valuable information, of course, and if you need some quick access links, we’ve included them below. But no one benefits from stewing in that all of the time.

A Break from the Heaviness of COVID-19 Every once in a while, it’s good to remember that there are good things happening, too.

Like seeing your friends and family, even if it is through a screen.

And musicals. And parodies of musicals.

After many weeks of social distancing and isolation, we were feeling a need for some levity ourselves. So we gathered together the team and put together a musical parody of Frozen’s “Love is an Open Door,” – we’re calling it “Zoom is an Open Door” – which we hope will lift your spirits and bring a smile to your face.

A Message From Fourandhalf Leadership To wrap up this week, here’s a message from CEO John Bykowski and COO Michael Lushington:

“During these difficult times, it’s hard to be apart from people, but it’s important to find a way to be together. Find ways to connect with your team, your family and your friends. And don’t forget that the Fourandhalf Marketing team is just a phone call or a video call away.”

We hope you and your family are safe, healthy, and finding moments to connect with each other. From all of us at the Fourandhalf team, have a lovely rest of your week.

Did you miss any of these blogs or episodes of The Property Management Show?

• Using Data to Guide Owners Through Delinquency & Economic Uncertainty
• Property Management Do’s and Don’ts During a Crisis
• Handling Property Management Maintenance During and After a Crisis
• COVID-19 Updates from Google & Yelp
• Managing Hits to Your Property Management Cashflow During the COVID-19 Pandemic

Fourandhalf helps property managers strategize and implement marketing plans. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post “Zoom is an Open Door”: A Musical Parody by the Fourandhalf Team appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

As a property manager, you are likely communicating with owners and real estate investors more than usual, and your clients are probably more than a little nervous during this time of economic uncertainty. How should you guide owners through rent delinquency?

To answer this question, we’ve asked Anna Myers, the Vice President and Asset Manager at Grocapitus Investment to talk to us today about how you can work with your property owners and your residents during a crisis like COVID.

While this isn’t a housing crisis, it is a public health crisis, and it’s affecting almost everyone nationwide. Anna is in a unique position to tell us how she’s using data to plan for economic shifts and new housing trends.

Introducing Anna Myers and Grocapitus Grocapitus is a syndication company based in the San Francisco area. The company has acquired 13 properties across the United States in the last 18 months, which includes 1,800 units. These are mostly multifamily residential units, and they are now getting into self-storage properties.

Anna and the company invests alongside their investors. Her team finds the deals, sources the deals, and lines them up for purchase. Then, the properties are co-purchased through a syndication, and Grocapitus manages the project. This makes Anna the asset manager who works closely with property managers at each building to execute the business plan associated with that deal.

These investment properties are spread throughout the United States, which means they’re working with property managers in different states and cities. Anna isn’t a property manager herself, but as the asset manager of these buildings, she’s been able to experience a lot of different property management styles. It’s given her a unique insight into how the industry works and what’s required to succeed, and it’s why we turned to her for advice on guiding rental property owners and investors through delinquency and economic uncertainty.

Asset Management vs. Property Management As an asset manager, Anna is concerned with her investors and the residents living inside her units. The property managers she works with are her boots on the ground. They facilitate all engagement and communication with residents, and they make sure local laws and regulations are followed. Those property managers are showing the apartments and executing the business plan that’s in place.

The business plan is what dictates the action of each property manager. Maybe there’s a plan in place for a building constructed in 1985. It may need some renovations and updates and the business plan will reflect those intentions and project the money that’s spent and the returns that are earned. These things can’t happen from Anna’s office in California; she counts on her property managers to execute the plan.

Using Data for Property Management Decisions Grocapitus is very data-oriented. Their background is in technology and they apply data science to real estate. You can’t manage what you can’t measure, and the company uses specific spreadsheets called Trackers. The property managers working with them fill those Trackers out every week so that asset managers can stay on top of the data.

The Trackers expose trends and inform decisions. It’s an easy and all-inclusive way of looking across the portfolio to recognize trends and see where things are going right and wrong.

Two Trackers in particular are essential to how property managers and asset managers work together:

• Monday Morning Report. This is a specific sheet that’s related to occupancy and rental collections. It tracks economic data and leads that are coming in that influence occupancy. They track notices to vacate and tenants who are moving. They project their exposure four weeks down the line. The report reflects collections and delinquencies, bad debt, and eviction numbers. It’s a Tracker that the team is watching all the time.
• Capex Tracker. The Capex Tracker follows the renovations that are ongoing at their value added properties. There is data that reflects classic turns (basic turnovers that often include cleaning the carpet and touching up the paint) all the way to premium turns (improvements that push the property to the top of the market). This report also tracks every turn in between the classic and the premium. Premium renovations can only be done if rent is going to be pushed up by $250 or more. These reports show whether the budget in the business plan was accurate. They can check the rent bumps against the expenditures and have discussions about where they are spending too much and where they might want to invest more.

Data is numbers and numbers tell the truth.

Guiding Owners Through Rent Delinquency It’s early in May, and as a property manager during COVID-19, you may not have collected as much rent as you normally do. Anna’s data shows that rent collection depends on property class and communication.

In the early days of the pandemic, Anna asked her property managers for a list of their tenants’ employers. This was done to determine what type of exposure they’d be facing if businesses started to close. They categorized the tenants according to business type, whether it was retail or service or medical. This is an important data point because understanding where your tenants work can tell you what kind of impact the virus will have on them economically.

If you’re in a metro area like Las Vegas or Reno, rent collection is going to be tough. Those are a lot of service industry tenants. So the challenge will be different than in other parts of the country and economy.

Shifts in Rent Collection and How to Handle Delinquencies Tenants in Class C properties are having a harder time than tenants in Class A properties. Most of the tenants in those Class A units have reserves and they haven’t had much of a slowdown in terms of income. Those tenants in Class C units are more impacted by layoffs and business closures. As a property manager, you have to consider this when you’re collecting rent.

Higher delinquencies will be normal, but things may not be as bad as you expected – at least not right now. The stimulus checks and the unemployment benefits are helping people come through with their rental payments when they can. For those who are struggling, Anna and her property managers have worked out a promise-to-pay program.

Communication between property managers and residents has been critical. A lot of tenants may have been thinking that they don’t have to pay rent because they can’t be evicted. It’s important that managers provide clear and accurate information. For Anna, in order to work out a promise-to-pay agreement, tenants have to document that they have been impacted economically by the coronavirus. If a tenant’s employment situation has not changed, rent is still due.

A lot of communication is important right now, as most property managers know. There’s some misinformation in the media and online, which means it’s up to you to communicate accurately and openly to your residents.

Providing local resources is another way to ensure your tenants remain solvent and able to continue paying rent. Provide a document with all the tools and resources and funding streams that can be accessed in your local, county, state, and federal agencies. Property managers can provide resources for food and utility help. Provide a full list with URLs so you can help your tenants get their needs met.

Messaging and Incentives When Collecting Rent The National Multifamily Housing Council has put out some great content about how to talk to tenants, and they even provided downloadable templates and other documents. Anna sent some of this information to the property managers she works with, and trusted them to tailor the wording and the message in a way that made sense for each community.

Every community is different, and as a property manager you know your tenants better than your owners do. You’ll know whether incentives are going to work in getting rent paid on time. You know how they’ll react to an offer of assistance.

Last month, some of the property managers Anna works with gave a $50 gift card to every tenant who paid rent on or before April 1. This was super-effective in certain buildings. In other buildings, it wasn’t necessary to give out gift cards to everyone and instead, people who paid on time had their names put into a drawing for the gift cards.

You have to know your audience.

In one building, 100 percent of the rent was collected without any incentives. Zero delinquency is difficult to achieve even when there isn’t an economic downturn. It reflects the relationship that the property manager has with her tenants. She has been working at the building and with those residents for 20 years.

Whether you’re using incentives or not, communication is the key to getting rent paid. Especially now.

There should be a continuous discussion these days to get a handle on collections. Know where your tenants are financially. Find out if anyone is sick. You need to know what kinds of problems your residents are having.

Sharing Data with Rental Property Owners and Investors Anna and her company have the benefit of having their property managers’ complete attention. She has each property manager on-site at the buildings, allowing her unfettered access. Those managers are completely focused on the community.

If you’re a property manager working with 50 or 250 owners, you have a lot of phone calls to field and communications to manage.

When it comes to guiding your owners through the possibility of rent delinquency, you have some valuable information to share. If you’re gathering data like Anna does, you can bring those numbers to your owners. This doesn’t have to be an individual note, but it can be a mass email to all your owners that shows rent collection trends and other important information. This will validate the trust they’ve put into you to manage their assets through this crisis.

As the asset manager and co-owner, Anna has to communicate with her investors as well as her property managers. They want to know how the property is running, how many units have turned, what the occupancy rates look like, and how the special projects are turning out.

She provides a monthly investor update and with the COVID-19 pandemic, there has been a lot of extra communication, including additional videos and information on risks in each market. The normal market update has been expanded. There’s also a quarterly webinar where investors can ask questions. It requires a lot of preparation, but it’s extremely important in keeping everyone informed.

When there’s a crisis like this one, communicating more frequently with investors than you normally do is critical. If things are potentially getting worse, you don’t want to pull back and avoid communicating the bad news. You want to provide more information instead of less. Transparency leads to trust.

People are calmer when there is regular communication. That’s the truth for investors, property managers, and tenants.

Facing Economic Uncertainty: What Property Managers Should be Doing Rents generally aren’t being raised right now. The job for Anna and her team now is not so much to create wealth for investors but instead to focus on capital preservation. That’s your job as a property manager, too.

When you’re communicating with and guiding owners through a crisis, keep in mind that no one knows what’s around the corner. Many investors are cutting expenses and delaying distributions. Investors want to hold onto capital so the mortgages can keep getting paid. The forbearance program is really sticky. No one wants to take advantage of that if they don’t have to because it’s not a friendly situation for consumers and borrowers.

It’s a hard position to be in if you own investment property. Tenants aren’t paying rent, but you do want to pay your mortgage. Your job as a property manager has changed during this crisis, just like Anna’s job as an asset manager has changed.

Hopefully, you have applied for the Payroll Protection Program (PPP), and followed the recommendations made in our managing cash-flow during COVID-19 episode. It’s a process, but it’s worth it to access those PPP funds. You’ll have eight weeks of payroll covered, and that will be helpful if there’s less rent coming in for May and June. Anna’s team needs the property management staffing to stay in place. These aren’t her employees, they are employees of the management company that she uses. So, the PPP has been instrumental in keeping her properties managed.

Mitigating the Worst-Case-Scenario Risk It’s easier to mitigate risk when you’re tracking data and staying on trend. That’s how property managers can best avoid the risk. During a crisis like this, you should look at the data from the last time you faced a worst case scenario. In 2008, for example, the recession brought a vacancy high of 8.1 percent to multifamily properties. That’s not good news, but it’s also not devastating. There’s no need to expect a 50 percent vacancy in every building.

You can plan for your risk based on data. Rent growth will probably decrease. You can expect rents to go down 5.5 to 6.5 percent, based on the data that’s available. It’s not good news, but it’s something you can plan for. You know that rent growth will be negative, but it won’t be negative by 25 percent. Look at the data to prepare for the worst.

Think about other ways to succeed when you’re planning on a loss. For example, can you increase your occupancy? This is where Anna has found some stabilizing success during the crisis. Leads are still coming in, and she’s running advertisements to get new units renting.

With the help of virtual assistants, hundreds of ads are being placed on different platforms right now. They’re using SEO techniques to keep those ads on the top of every page, and their virtual team is booking virtual appointments and showings to bring more leases into each building. This is contributing to a better bottom line for investors, even when rents are stalled and dropping.

It’s hard to know what to expect. Anna says that she’s seen projections the GDP could contract another 30 percent. That’s a huge number. There may be a protracted recession through the end of 2021.

The Silver Lining When Communicating with Owners About Rent Delinquency The silver lining is that investing in real estate is once again proving to be much safer and more risk-averse than other types of investments. The stock market is not a great place to be right now. Owning hotels also isn’t lucrative. You may have lost some money, but you’re not going to lose your asset.

People will always need a place to live. That’s not going to change, no matter what the crisis.

The next few months will be scary, but as an investor and a property manager, remember that this is happening nationwide. All other industries aside, property management and real estate will always be here. A lot of business owners have been turned upside down. If our biggest problem is less rent growth, that’s going to be okay.

We’re here to talk more about the things Anna has discussed, so contact us at Fourandhalf if you have any questions about guiding owners through rent delinquency and economic uncertainty, or if you want to talk through any problems you’re having during the COVID-19 crisis.

The Property Management Show is a podcast brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Using Data to Guide Property Owners Through Delinquency & Economic Uncertainty appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What’s your plan for property management branding during a crisis?

Branding your property management company and marketing your services in a time of crisis requires a sense of who your audience is and what they may be going through.

All of us at Fourandhalf are working from home during the COVID-19 lockdown time, and today we are talking about what you should do and what you shouldn’t do when you’re marketing and branding in the middle of a global pandemic or any other emergency that may be affecting your work.

Show Empathy and Be Transparent You do want to show that you understand what your clients are going through, and you don’t want to be tone deaf. Everyone is sensitive during a crisis, and everyone is going through their own tough times. It’s important to be extra-aware of the way you sound.

If you work in property management, you know that some people will be offended no matter what you say and when you say it. During times like these, more people than normal will be offended by any kind of language or content that doesn’t reflect empathy and compassion.

Don’t Put Incriminating Content on Social Media Everyone is entitled to their own social media language, but remember that you’re running a business, and your brand relies heavily on how you present yourself publicly. Don’t put something on social media that you wouldn’t want all of your current and potential customers to see. You even have to be careful in private forums because guess what? Those forums aren’t that private.

Be Strategic with Marketing Channels and Content You have to be mindful of the marketing channels you’re choosing, and you have to make sure you’re publishing topical content. The crisis is capturing a lot of attention right now, but every crisis has a short shelf life. When you post about the crisis using a slower marketing method, you won’t reach people in time. You want this information to be seen quickly, and then you want it to go away.

Don’t publish a blog that will be buried somewhere. No one will see it and it won’t rank for six months. YouTube is great, but it takes months to gain traction. A direct mail campaign will not work quickly.

Instead, put your crisis-related content on your website’s homepage. You can put it out there for everyone to see, and then you can take it down when it’s no longer relevant. Post your information on Facebook, Instagram, and other social platforms. Use email and texts. That’s good for immediate content and reach.

On a related note – have you thought about your online reputation during the COVID19 pandemic? Head over to our blog on the latest updates from Google and Yelp for more information about reviews being posted during this time.

Don’t Overdo the Crisis Content Some people are posting about the coronavirus every single day. First, people get tired of it. Then, it feels like you’re capitalizing on the crisis. You should be talking about the impact it’s having on your customers, but remember to put evergreen content out, too.

Branding during a crisis doesn’t have to be specific to the crisis. You can provide helpful information on all topics that your audience will find educational and valuable. Remember that there’s always a crisis, unfortunately. In California, we have to worry about fires and earthquakes. In Florida and the southeastern states, you’re always worried about hurricanes.

No matter what the crisis happens to be today, you still have to stay in business and you still have to get leads in. Marketing must remain a necessity.

Create Aftermath Content You want content that helps people prepare for when things will get better. Because they will get better. We’re all looking forward to that time, so let’s keep things up and running until we get there.

We’re wishing you the best of luck, and if you want to talk through your property management branding and marketing ideas, please contact us at Fourandhalf.

Fourandhalf helps property managers strategize and implement marketing plans. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Property Management Branding Do’s and Don’ts During a Crisis appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

On this week’s episode of The Property Management Show, we have invited the co-founder and CEO of Property Meld to talk to us about the subject everyone’s talking about – COVID-19. Ray Hespen is specifically discussing what’s happening with property management maintenance right now and what we can expect and prepare for once this pandemic is contained and we are all moving on.

Property Management Maintenance During and After a Crisis: Introducing Ray Hespen and Property Meld Property Meld is focused on property management maintenance. The company provides a platform to automate a lot of steps that help property managers follow-up with maintenance work, verify what’s been done, and communicate with residents, owners, and vendors.

Ray and his team work with management companies to improve quality, create efficiency, and keep costs down.

Since the entire industry is in a weird situation right now, he’s the obvious expert to talk about what this means for maintaining rental properties. He’s also going to shed some light on what property managers can expect maintenance to look like after this crisis passes.

Rental Property Maintenance and COVID-19: The Big Picture Property Meld has analyzed data to look for changes in behavior. They’ve found a few key things:

• Renters are concerned about submitting repair issues and having people come into their homes.
• Not all landlords and management companies want to send techs out to complete repair issues.
• There have been some big shifts in behavior. The drop-off has actually been about 25 percent fewer maintenance requests than the normal curve this time of year.

That’s pretty significant.

An Absence of Repair Requests Leads to Ghost Issues This is the “COVID effect” on maintenance. When renters don’t submit the requests for repairs that are needed, ghost service issues are created. These are things that exist, but as a property manager, you don’t know about them.

People are at home more, so a higher number of repair requests would normally be expected. But, the 25 percent drop tells us that a lot of repairs are needed but not noted.

Some property management companies have told tenants that if the repair is not an emergency, they shouldn’t submit it. That’s one way to do it. But, as more information has come out, the better recommendation may be to encourage your tenants to submit the repair request, and then prioritize what really needs to be done. That will reduce the number of ghost service issues that are floating around out there.

If you don’t have tenants submitting their necessary repairs, you’re not going to be able to prepare for what you need to fix.

After the crisis subsides, there’s going to be a huge influx of maintenance work that needs to be done. It will likely be overwhelming for property managers and their maintenance teams. So, you need to have a sense of what kind of work you’ll be looking at.

Property management companies are generally taking the requests that they currently have and prioritizing those that absolutely need to be done. The completion rate is 56 percent lower than the normal completion rate. This tells you that only half the work is getting done.

With these two contributing elements and a backlog that’s growing every day, there’s going to be some deferred maintenance. The work that’s needed will pile up. Assuming that the social distancing requirements ease up a bit in May, there’s still going to be a large backlog that takes you right into summer, which is the busiest time of the year for most property managers and their maintenance teams.

Renters aren’t submitting but they will at some point. Their property issues are not going to fix themselves. When people are comfortable submitting maintenance requests again, things may get a bit chaotic.

Examples of Cautious Renters There may be a tenant who has a broken refrigerator. That’s an emergency since no one is going out to eat. The tenant needs a working fridge, and vendors who are sent into that home will need to be careful and sanitize everything. It’s about balancing the need of the tenant with the safety of the tenant and the repair worker.

Marie shared two examples of work that she has recently needed done in her rental property. First, there was a window that started leaking during heavy rain. She did everything she could to minimize the damage by using towels and keeping the area dry. She let her management company know that the window was leaking, but she also instructed them not to make the repair if they didn’t have to, because she didn’t want anyone in her home. This is pretty typical of how most tenants are feeling right now.

Marie’s second repair need involved a garbage disposal. She tried her best to fix it and troubleshoot it herself. When she couldn’t, she submitted the request and removed the disposal herself, leaving it outside her door for the repair person to fix. Then, she re-installed it herself. That’s probably over-cautious, and Marie says she knew there were a lot of risks involved in this strategy. But, those risks were tolerable compared to the risk of having someone come into her home and possibly increase the risk of exposure to the virus.

The Automatic Pause Before Submitting a Repair Request These anecdotes highlight the automatic pause renters experience about whether to submit or not submit a repair request.

A good way for property managers to help tenants feel more at east is to send an automatic notification when a repair request is submitted. You can tell tenants how you are preventatively protecting them and the vendors and service technicians. As a property manager, you can advise tenants not to be in the home when the workers arrive. You can assure them that masks, gloves, booties, and other protective equipment is being worn, and that everything will be wiped down.

The alternative is this hesitancy, which is creating the ghost service issues.

Removing the mystery of how repairs are handled will help tenants feel safe about reporting them. The Property Meld feature that sends an automatic notice of procedures can help tenants feel supported. In other industries, you see a lot of talk about how they’re ensuring people are kept safe. The property management industry can do the same. If you tell tenants exactly what you’re doing during a repair to prevent exposure, you’re a step ahead of most other property management companies.

Communication and Over-Communication Regarding Maintenance Communication is always important, but it’s more important now. In fact, you should be over-communicating with everyone – tenants, vendors, owners. Focus on positive communication. It’s the only thing that will allow you to manage going forward. Don’t share any kind of negativity or fear because a lot of this crisis is out of your control.

It’s also very tactical to communicate. People need to feel comfortable to submit service requests, and you’re not going to lead them to comfort if you’re not communicating your process and your safeguards.

As the property manager, you want to be in control. Property managers should decide what’s critical and what isn’t when it comes to repairs. You don’t want the renters deciding what needs to be done. Encourage them to make the request and allow the property manager to decide. It’s important.

Property Managers and Their Vendor Relationships The Property Meld data has shown that most property management companies are maximizing the use of their in-house maintenance teams and minimizing the work they send over to outside vendors and contractors.

As you probably know, vendors only get paid when they’re doing work. They may be anxious to accept new work and potentially less cautious. If you send a vendor to a property, make sure you know what they’re doing to protect their workers and your tenants. Ray has heard that rubber gloves are standard, as are masks and booties. Most technicians are trained to stay six feet from other people. Many companies are using goggles as well.

There’s a strong sense that this is not business as usual.

Financial Stress for Property Management Companies As a property manager, you’re now aware of the ghost issues that may be lurking and you know you’re going to have a huge backlog of maintenance requests to work through once the stay-at-home orders are lifted.

What other risks are out there?

The obvious risk is financial. If you run a maintenance company as part of your property management company, you’ve likely seen a huge drop in service requests. That could be half of your income as a company, and you may be wondering how long you can survive. It creates serious financial stress, but it also puts you in a competitive position going forward. It will be even harder than it is now to find good vendors.

Property Meld has done some math on what the backlog will actually look like.

If things get back to some version of normal, and you can increase your maintenance output by 20 percent in June, it would still take you until October to clean up all the backlog. This is going to impact resident retention and client satisfaction.

It’s going to get complicated.

This makes it even more critical to empower your techs and vendors to get the work done. The further away completion rates become, the more massive your backlog. This will cause serious problems for property management and maintenance companies.

Maintenance is a huge part of tenant retention. Just improving the time it takes to complete a maintenance request is a big part of a company’s online reputation. The industry is in a weird spot where online reputations are on hold because reviews can be submitted but won’t be posted right away. The sense is that Google reviews will start showing up again as soon as businesses like restaurants can open, but we don’t know what will happen to the reviews that are being written now, but not posted.

Set Expectations with Communication Setting expectations is the only way to protect your reputation and keep your tenants happy even while maintenance may take longer. Ray talked about a cabinet he ordered for a kitchen remodel. They apologized and told him it would take nine to 12 weeks to be delivered. Normally, this would only be a two-week delivery window. There’s a difference between knowing it may take 12 weeks and not being told about the delay. If the company had not communicated about the delay, Ray would have been waiting and angry by week three. But, he knows now what to expect, and that makes the wait tolerable.

Communication is absolutely critical, and so is working through those backlogs systematically.

Here is your to-do list as a property management company:

• Empower the tenants to submit requests.
• Empower the vendors and technicians to fulfill any requests they can safely.
• Prioritize the service issues.
• Communicate to everyone.

During all this, don’t forget empathy. Everyone is going through something pretty traumatic right now. You’re running a business, and you can come out winning by being empathetic and transparent.

This is an opportunity for smart property managers to up the game and elevate the industry. You can separate yourself from those terrible landlords who give owners and property managers a really bad name. It’s an excellent opportunity to tell the story of WHY people need a property manager like you.

Shifting Towards Property Management Technology There’s going to be a massive shift towards technology when this is over. People who have been planning to upgrade their tech in a year or so are finding a new sense of urgency now. Five-year plans have become one-week plans.

The technology in the property management industry will be more important than ever. That’s one of the biggest shifts Ray sees for the future. Technology is a lasting trend, not a temporary fix.

It’s easy to worry about whether or not you can afford technology. There’s an investment of time and money to learn a new platform or incorporate a new system. Each business has to survive, but remember that technology exists to solve problems. That’s its purpose. We have new problems, and we need new technology to solve them.

Being a problem solver is the only way you can sell your services, especially now.

Landlords are wondering who they can turn to, to navigate the legalities of eviction moratoriums. That’s a new problem. As a property management company, you need to be there with a solution. If you can meet the challenge and be a solution, you can keep selling – even during a global crisis.

Key Takeaways from Property Management Maintenance During and After a Crisis: Your final insights are probably the same as Ray’s:

• Find a way to get your renters to submit service requests.
• Come up with systematic ways to address and prioritize those issues.
• Over-communicate with everyone.

If you do these three things right, you’ll be at the top of the property management and maintenance food chain.

Thanks to Ray and Property Meld for talking about property management maintenance during and after a crisis today. If you have any questions about what you’ve heard, please contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Handling Property Management Maintenance During and After a Crisis appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What’s your definition of “good” property management owner leads? How do you determine which leads are “bad” ones? And if everyone has a slightly different definitions, then are we just comparing apples to oranges?

Jeremy Pound is the CEO and founder of RentScale. He’s joining us on The Property Management Show to talk about the difference between various types of leads. He’s going to give us standard definitions for things like market-qualified leads, sales-qualified leads, and prospects. Then, he’s going to explain how to set up a basic sales process.

This information will provide you with an industry standard for determining your cost per acquisition, which will ultimately help you close more doors.

Introduction to Jeremy Pound Jeremy founded RentScale with Jordan Muela of LeadSimple. The goal of RentScale is to bring a professional level of sales and sales management to the residential property management industry. Property managers are operationally-minded. You would probably agree that most companies have their customer services dialed in and their maintenance policies and accounting practices where they need to be.

But, a lot of management companies are winging it when it comes to growth. RentScale aims to bring professionalism to the sales side the same way Fourandhalf brings a higher standard to property management marketing.

What is a Lead? Property management owner leads can be great, and they can also be a source of friction.

Not everyone even knows what a lead is.

Part of professionalizing and operationalizing any process includes creating labels and boundaries. You need a framework for communicating about things. Leads can sometimes feel like magic. But magic isn’t an operation. It’s not a process. Instead of trusting some magical sales process, you need labels and buckets and guidelines.

At its most basic definition, a lead is simply contact information.

If you have a name and a phone number, or an email address, or a LinkedIn profile, you have a lead.

Even just a name is a lead. You have discovered someone who may have an interest in what you do. That’s a lead.

What are Property Management Owner Leads? Now that we know how simple it is to identify and define a lead, let’s talk about what property management owner leads look like.

A lead might be someone who fills out a form on your website. It might be an owner who has a question. It could be a landlord who wants to know how much you charge. It might be a referral.

These are inbound leads and it’s what most property management companies wait for.

All those listings that are managed by owners are also leads. If someone is renting out a property in a building where you’re already managing three units, you have a lead.

Prioritizing Hot and Cold Leads: Developing a Pipeline “Pipeline is life.” Remember that. If you don’t have a pipeline, you don’t have the opportunity to sell. You want to talk to people who will potentially do business with you. So, in your sales pipeline, you want to move your leads into the prospect category.

Prospect is another vocabulary term. A prospect is a lead who is in your sales pipeline.

Your lead is the name or the contact information. That lead becomes a prospect if you call them and talk to them and find out two things:

• Are they qualified to do business with me?
• Would they be interested in doing business with me?

How you qualify a lead depends on your business model. You probably want them to have the financial stamina that’s required to own investment properties. You want them to have maintenance reserves and maybe you want them to be hands-off and not calling you every day.

If the lead is qualified and interested, they convert to a prospect.

Prospects deserve more of your time and energy.

Everyone has to be on the same page with how you define a lead and a prospect. Then, you have to understand the difference between a marketing-qualified lead and a sales-qualified lead.

Marketing-Qualified Lead vs. Sales-Qualified Lead LeadSimple really revolutionized the idea of automation for property managers, and if you use another CRM system, you probably have similar capabilities in that you can use drip campaigns to follow up and do content marketing.

When someone comes to your website and reads your blog about Three Questions to Ask a Property Manager, they might provide an email address to get another piece of content that addresses the same topic. So, you know they are interested in that information. You know it’s a landlord or a potential landlord or someone to whom you can market your services.

That’s a marketing-qualified lead.

A sales-qualified lead is a bit different. It’s someone who fills out a form or reaches out to you and asks to be contacted. That’s a lead who is raising his or her hand and asking to be called on. Their intent is to be contacted.

A marketing-qualified lead is not interested in being sold to yet. They’ve indicated interest, but they’ve not asked to be contacted. A sales-qualified lead has provided contact information and said they want to hear from you.

A prospecting lead is that landlord who is renting out a home in the building where you manage a handful of other homes. If you call him up and introduce yourself and the idea of professional property management for his rental home, you’ll find out if you have a marketing-qualified lead or a sales lead.

Your messaging needs to match the lead.

If you call a marketing-qualified lead and launch into a sales pitch, you’re going to lose that lead. If you call your marketing-qualified lead to confirm she received the white paper download that she clicked on, you’re doing okay.

Here’s a secret about your sales process: it’s what allows owners to test drive your service. Your sales process shows them what it would be like to work with you. So, it has to be bullet proof. This is your free trial and your test drive.

How to Prioritize Your Property Management Owner Leads Prioritizing your property management owner leads depends on your lead flow.

One particular client of Jeremy’s spends a lot of resources marketing. They’re on the radio and the internet and they have an amazing reputation. This company is generating so many leads that their number one concern is how to follow up with inbound leads. They’re getting 80 to 100 leads a month, and when you have that many inbound leads per month, the main problem is follow-up. How do you call everyone back? Calling back the first time is easy, but can you keep going and call back three, four, even seven times?

Jeremy had a marketing agency that was successful buying satellite advertising for radio. He offered a guaranteed SEO program, and ran ads on Bloomberg and CNBC, which resulted in 90 new phone calls every time an ad ran. But, they couldn’t close any sales. They got great leads but didn’t close any.

That’s because there were 90 new leads coming in every week, and the staff could only respond to those new calls. They were unable to follow up and nurture the existing leads. So, with a four to six week sales cycle, it became clear that they could only run those ads the first week of every month. It helped them to close more business.

That’s one end of the spectrum. At the other end, maybe you’re a small company getting two leads per week. If you’re not investing a lot of money in marketing and you’re relying heavily on your reputation and good reviews, you might only get two leads a month. In this case, you need to prioritize your time around prospecting. Ask for referrals. Call those For Rent by Owner leads.

The way you prioritize your leads will change as your business changes.

The default temptation is to spend all your time with the people who are about to buy. You have agreements that are ready to sign, and those are the phone calls you want to return.

You should return those phone calls. That’s important business. It’s harder to call the people who are new leads. But you have to fill the top of the sales funnel because the pipeline is life.

Protect your time so you can call your new leads. You’re building relationships. Spend the time and make the effort that’s necessary to build those relationships. You have to be vigilant and follow up or you’ll lose that lead to someone who is better at building the relationship.

The Risks of Not Understanding Qualified Leads What happens if you don’t have consistent labels for your property management owner leads and you don’t have an operationalized sales process for marketing-qualified leads and sales-qualified leads?

Think about why most personal trainers and nutritionists require their clients to keep a food journal. Because it’s easy to forget about the cookies you eat and the beers you drink. Our situational awareness is troublesome; it’s a human condition. We have preconceptions about what things are like, but usually those notions are not true. We are actually terrible judges of how things are going, and everything becomes anecdotal.

This is why we label and track things.

The biggest risk of not understanding how to define leads is that you will make bad decisions. You’ll make subjective decisions based on instinct instead of smart decisions based on data.

Avoiding Unqualified Property Management Owner Leads You’re not trying to attract more tenants to your business; you want owners and investors. So, beware of marketing ideas and channels that are delivering more leads but unqualified leads. That’s a time and resource waster.

This is a long game. You’re not going to call vendors and tenants who fill out your online forms.

Spend your time calling the qualified leads, even if they aren’t ready to say yes right now.

Maybe you went on vacation for a week so you didn’t call a new lead back right away. When you come back to work, you do make the call and it turns out that lead signed with another management company. Does this become an unqualified lead?

No.

Why? Because anything can happen with that property management company, and you have an opportunity to check in with the owner after a few months and make sure they’re happy with the services they’re receiving.

With this lead, you could explain you were on vacation. Tell them you had a great time, and it’s the only reason you would wait a week to return a phone call. Then wish them luck with their rental property and keep their contact information close. This is a qualified lead.

If you’re the owner of your property management company, Jeremy recommends replacing yourself with a sales person or a BDM as soon as possible. Outsourcing or delegating sales is last thing most property management owners will do. You need a dedicated sales person who can put in the time and the effort to follow up with that lead who is currently working with another management company.

Managing an Active Pipeline An active pipeline helps you forecast.

Anyone in your active pipeline is someone with whom you have a dated next step. By that we mean a prospect who has scheduled something with you, whether it’s a phone call or a meeting at the property or some kind of interaction. That’s a dated next step, and it’s a prospect who belongs in an active pipeline.

If you have a prospect who is interested and has talked to you but does not have a dated next step, you’re moving them to a drip campaign that allows for passive nurturing. You’re not thinking about that person as much as you’re thinking about your active nurtures. These are the building blocks to an active pipeline that yields results.

Your passive nurture list is still made up of important contacts. These are the people that may keep saying no, but you want to stay in front of them. If a new rental law is passed in your state, send them the information you have about it. These are the building blocks of an operationalized sales process.

Absolutely Necessary vs. Nice to Have: When Does your Property Management Company Need This? The need to have this operationalized sales process in place comes earlier than you think.

You need definitions. You need a system in place. Determine what success looks like for each person in your company, even if there’s only one person or two people.

If you’re still in start-up mentality where you or you and one other person are doing everything, you want to standardize everything before you begin replacing yourself with other staff members. You’ll have more awareness of what works and what doesn’t.

Cost Per Lead vs. Cost Per Acquisition This leads us to a discussion about cost per lead, and while that may require a separate podcast altogether, Jeremy advises thinking about cost per acquisition instead. To be able to use your cost per lead as a metric, you need a sophisticated business that’s making more than a million dollars. Otherwise, it’s better to break down your cost per acquisition.

Really good sales and marketing is multi-pronged. When your company is small, managing your online reputation is important, and buying a pay-per-click campaign is important, and you’re always prospecting and using a nurture program. These are things that, when aligned, drive down your cost per acquisition. If you’re spending $5,000 per month and converting 10 clients, your question is how to make that 15 clients. It changes your business model.

Operationalizing things is a common theme on The Property Management Show. We believe that it’s always process or people that will lead to property management growth for your company and the industry as a whole.

What We’ve Learned: Property Management Owner Leads Jeremy’s final words are this: remember your middle school science class where you learned about the scientific process. That’s what will make sense here. You have a hypothesis. You write it down, you track the data, and you stay open about being wrong or right.

The scientific method is underutilized in property management.

If you have any questions about anything you’ve heard Jeremy discuss today, please contact us at Fourandhalf, and we thank you for listening.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Good vs. Bad Property Management Leads: Where to Draw the Line appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you heard the latest COVID-19 Google and Yelp reviews update?

No doubt you’re aware of the unusual circumstances we find ourselves in during this COVID-19/Coronavirus pandemic. One of the fears that you may currently be grappling with is that your online reputation might tank during this unprecedented time.

Today, we’re sharing the announcements that Yelp and Google have made regarding their review platforms. This information may alleviate some of the fears that you and other property managers are currently facing.

COVID-19 Google & Yelp Reviews Update: Updated Yelp Review Guidelines Apart from the many programs Yelp is implementing to help small businesses, they have also released new review guidelines to protect small, local businesses from reputational harm during these extraordinary circumstances.

Some examples they gave include:

• Zero tolerance for any reviews that claim a reviewer contracted the virus from a business or a business’s employees.
• Zero tolerance for negative reviews and complaints based on business hours.
• Human content moderators are checking any reviews flagged by the community to check with compliance.

If you are a property management company that pays close attention to your online reputation and you see unreasonable reviews given these unique circumstances, make sure you flag that review so the appropriate action is taken.

Changes to Google My Business and Google Reviews Now, let’s talk about Google.

There has been a recent announcement that a number of Google My Business functionalities will take a hit at this time.

What does this mean for your property management marketing plan? It will impact:

• Google My Business information edits.
• Creation, claiming, and verification of brand new listings.
• New reviews and review responses will be temporarily unavailable at this time.

If you saw Hope’s recent blog on Google My Business fundamentals, you might have been busy updating your information or claiming your Google My Business page. You’ll need to expect some disruptions and delays, so be prepared for those.

Why is Google Temporarily Suspending Reviews? You might already know that online reputations and reviews matter a lot.

Reviews can actually impact your SEO.

Google knows that local businesses don’t need to suffer any more than they are in this business climate, so they’re putting a hold on any reviews until things get closer to normal.

What This Means for Reputation Management If your knee-jerk reaction is to cancel your reputation management service at this time, we can understand the rush to judgment and panic. But, you want to think about your long-term business needs and the critical importance of positive reviews, especially positive reviews about how you handled your relationship with owners, tenants, and partners during this pandemic.

We strongly advise against suspending or canceling the work you’re doing to manage your reputation. You can still get reviews published when you work with Fourandhalf’s reputation management service. The reviews are published to your reputation widget on your website, and Google can still see and use those reviews.

While Google isn’t making new reviews available, users can still submit the reviews to the site. We don’t know yet when or if they’ll be published, but it’s good to have them in case they do show up once things go back to normal.

Reputation is always important, and your property management company needs a solid reputation plan in place. We are here to help you with this if you have too much on your plate.

We hope that you and your team are safe and well during these difficult times. Have you listened to our podcast episode about managing hits to your cashflow during the pandemic? If not, take a listen.

If you have any additional questions about these COVID-19 updates on Google & Yelp reviews, or need any help related to your property management marketing, please contact us at Fourandhalf.

Fourandhalf helps property managers strategize and implement marketing plans. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post COVID-19 Updates from Google & Yelp: How it’s Impacting Property Management Reviews appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Feeling anxious about how to manage your property management cashflow during COVID19? We got you.

Hopefully you’re safe and at home during these crazy times. If you own a property management company and you’re worried about your cash flow and your business operations during this unprecedented pandemic, this episode of The Property Management Show is exactly what you need.

Greg Crabtree is with us today, and he’s the author behind the book: Simple Numbers, Straight Talk, Big Profit. We’re discussing how to manage cash flow and ease the stress that your business may be feeling.

Introduction to Greg Crabtree Greg has owned a CPA firm for 33 years, and in January he merged with one of the Top 20 Accounting Firms, Carr, Riggs & Ingram (CRI). This has perhaps turned out to be one of the timeliest mergers in history because he now has access to 2,000 professionals who can help businesses with consulting and expertise in times of crisis like we’re experiencing now.

The consulting Greg provides is based on the Simple Numbers book. There’s a COVID19 task force set up to help you, so if you need additional resources, be sure to check out cricpa.com and look for the resource link. You’ll find additional information that applies to your property management company that includes:

• Loans available to companies like yours
• Business interruption insurance and whether it applies
• Employment benefits and extended sick leave requirements

The Simple Numbers book helps entrepreneurs understand their financials in a clear way. It also provides guiding principles. Companies that have followed the guidance provided in this book are not in a state of panic right now. They were prepared for the crisis and they’ve avoided a lot of the pitfalls that other companies are experiencing right now.

This is why Greg is on the show today. He has a lot of experience working with accounting in property management firms, and he’s going to help with your cash flow.

How to Manage Your Property Management Cashflow During COVID19: 1. Payroll Protection Plan: Apply Now At the top of the list of things you have to do right now is to prepare to apply for the Payroll Protection Plan (PPP).

Every property management company that has employees and 1099 contractors can benefit from this loan. The information on applying for this loan has been changing day to day, and finally we have a base for how to do it. You’ll need to use calendar year 2019 wages when you apply for this loan. Now that we know this, you can start preparing what you’ll need to access PPP funds.

This is not hard to do:

• Look at your 2019 wages paid that do not exceed $100,000 for your highest paid people.
• Add those wages and divide the number by 12.
• Multiply that number by 2.5.

There’s the amount you’ll be working with for your PPP application.

Here’s an example: If you paid $600,000 in qualified wages in calendar year 2019, that divides into $50,000 per month. Multiply that by 2.5 and you get $125,000.

You need to be in line today with a lender to apply for a loan to cover that $125,000.

If you visit SBA.gov, you’ll find application forms that you can download. That’s not the application itself; you’ll get that from your lender, but it’s the information that you need to start gathering.

Funding is expected to come through at the end of April or the first week of May. The eight weeks after you get funded is your evaluation period, in which you determine how you’ll spend the money.

This loan is potentially forgivable.

This is important because we will never see another forgivable loan in our lifetime from the SBA. It’s huge, and you need to apply for this money. Even if you’re not experiencing a loss right now, all you have to do is certify that there’s enough economic uncertainty in the next three or four months that you need the money.

We can’t think of a single business that won’t be able to certify that.

Spend the money on paper. Show the plan for how you’ll use it to meet payroll, pay rent and utilities, and make the interest payments on any business debt. You want to maximize the forgiveness potential on this loan.

Most of you have a payroll that you know you have to meet, and those numbers will be easy to factor into your calculations.

But don’t forget the maintenance guys and that one contractor who does the landscaping or the cleaning. Those 1099 employees count in your wage base. The individual bookkeeper you might hire that you pay on a 1099 has to be counted. If these are individuals and not companies, you can count them. The government has recognized the necessity of gig economy workers, and they know that your contractors need to be paid.

2. Conduct a Sensitivity Analysis The next step to managing your property management cashflow during COVID19? Prepare to do a sensitivity analysis.

If you aren’t familiar with this term, you’re basically studying how much uncertainty your business can handle. For property managers, this means how much can rents go down without your management fee before you break even?

Greg has studied the property management industry extensively and he believes companies should run at a 15 percent profitability rate. As an example, he has recently modeled out a 20 percent decline in rents with a client. Some people can’t pay rent, plus there are pre-existing vacancies. That’s his client’s sensitivity. He is cash flow positive down to 20 percent reduction. After the 20 percent, there are difficult decisions to be made.

There is hope that the drop in rents needn’t be as severe as you might fear. With the next four months of federal supplemental unemployment insurance on top of the state-provided unemployment benefits, anyone who has been laid off is getting the equivalent of $23 per hour to stay at home.

That might change. Greg has been warning that this bill was rushed through to get some kind of stimulus in place, and it’s possible Congress will come back and modify those benefits. But for right now, if someone is laid off there isn’t a reason they shouldn’t be able to continue paying their rent. Are they scared to death and perhaps not paying rent because of the uncertainty of things? That’s absolutely possible. But, it’s a different discussion.

You’ll need a strategy. Maybe you’re giving an extended grace period and adding the missed rent payments to the back end of the lease agreement. Maybe you’re letting them stay there without paying rent, hoping their jobs will come back.

The number of people needing a home has not changed. There might be more shared housing going forward, and that could impact the marketplace. A five to 10 percent contraction in the market may be due to people walking out on leases and moving in with others.

The courthouse is closed, so if you’re going to hold firm on rent, how will you file for eviction? You can, you just can’t get into the building. Things are slower and you’ll have to deal with those things as an industry.

There are state and local mandates you also need to watch that are providing legal coverage for people with a contract to pay rent. Be prepared. Some people will play the system, but again – that’s a different discussion. If property managers stick together as an industry, all these things can be worked through. Greg’s advice is to model your own business for the potential impact of this, and adjust for it.

3. Economic Injury Disaster Loans The PPP loan will get you through June and can keep you going with no real staff cuts.

But, post-June is where you can expect some ripple effects. How do you manage your property management cashflow as COVID19 continues to affect the economy after June?

After the PPP loan, you can apply for an Economic Injury Disaster Loan (EIDL).

Many people will say you can’t have both. That’s not true. You can have both, but you can’t apply for both loans to cover the same loss.

Apply for the PPP first so you know how much you qualify to receive. Then, you can apply for the EIDL and factor in the receipt of your PPP proceeds and its forgiveness. The application has been streamlined, but that loan will still take 60 to 90 days to process.

Eventually, money for PPP loans will run out. Everyone expects the government will continue to fund that program, but you don’t want to be in the second line of businesses waiting for funding. Get yourself in the first line. Talk to your preferred lender right now if they haven’t reached out to you already.

Details, Qualifications, and Exclusions Remember that these are unprecedented times – the solutions presented for property management cashflow during COVID19 are based on best guesses, not certainty. So no one knows how each detail of these programs will settle. There are interesting circumstances of who qualifies for these loans. Greg and his team have asked some outstanding questions, such as:

• If a contractor is an LLC but a single member LLC filing as a sole proprietor, are they a contractor who can be included in your company’s wages or do they have to apply on their own for a loan?
• Can contractors apply for their own PPP loans? We know two people can’t apply for the same loss.

Ultimately, the lender will have to certify some things and make final decisions about your application. Be prepared – things won’t be 100 percent consistent and that’s not anyone’s fault.

You can probably guess who this rewards.

It rewards the companies that have been doing things the right way. If you have payroll tax returns and W2s for your employees and your books are in order and you’ve filed 1099s, this is going to be a lot easier for you. If you’ve been paying people under the table and taking money out of your business instead of paying yourself a salary and looking for a cheaper way to run your business, you’re not going to benefit from this program.

Opportunities Still Exist in Real Estate and Property Management There are still a lot of people working.

The people who are working the necessary businesses and can maintain their income will look at this as an opportunity. Real estate agents and property managers are still showing homes, but it’s being done virtually. It’s not as robust, but many parts of the country will do just fine for a while.

The news is sobering. Everyone is in place for another 30 days and that certainly means slower business. The high rate of death will hurt. But, if you’re going to stay optimistic (which we recommend), you’ll see that someone is going to figure out how to slow or eliminate the mortality rate of this virus, and we will all learn how to live with it. It may take some time, but the biotech advances will be substantial, and we will see an improvement.

The death rate downturn will indicate a return to economic health.

To take advantage of opportunities, you need to find a good source of truth. There’s a lot of information out there, and not all of it is trustworthy. As a business owner, Greg recommends you find three or four sources that you return to every day, and ignore everything else.

• Greg’s firm, for example, has great information. You can visit simplenumbers.me and look for templates and downloads available on his crisis management page.
• The SBA is also doing a good job of providing information.
• Check out the U.S. Chamber of Commerce, too. They had some great info about the PPP loan and then it changed just yesterday. Otherwise, their information has been reliable.

Pick three or four key sources of info rather than reading every email chain that comes through.

Spending Your PPP Money: Making Business Decisions and Getting Paid If you go to the simplenumbers.me website, you’ll see a sample cash flow model for a restaurant. What does a restaurant have to do with your property management business? More than you think, especially from a capitalization standpoint. Cash is your capital requirement.

Your projected losses are the same as cash, so you need to know your loan support based on your cash loss. Understand your business model so you can calculate your losses and decide how much you can fund with PPP.

Don’t borrow money if you don’t think you’ll need it.

In some situations, business owners are finding it’s a better idea to go dark and start another business on another day. If you have no sales and no employees and you have nothing but rent to pay, you might not to close and start over.

But, for a property management company, you’re not going to go to zero. Unless your properties themselves fail, you’re going to have to plan for a revenue reduction that’s 20 to 25 percent. You’re managing the same properties and the same tenants, but revenue will go down.

Think about how you communicate with your property owners.

It’s not a comfortable conversation to imagine, but you might want to ask them to pay a management fee even if rent isn’t being collected. You can’t kick the tenant out, and you’re still managing the property.

A lot of lenders are postponing debt. You might have a lot of owners who won’t have to make mortgage payments for a while. There is no reason for them not to be able to absorb a loss of rent right now. It also makes it easier for you to ask for your fee to continue being paid.

No businesses are following their stated agreements during this time. Everyone is in this together, and we need to ask each other to be reasonable.

Perhaps this informs a future policy for your property management company. Maybe you’ll have a minimum payment requirement in all your future management contracts.

These are unprecedented times and the common theme of advice is to save cash wherever you can.

Tenants are taking advantage of rent deferrals because owners are taking advantage of their loans getting deferred. If your lender offers you a three month deferral, take it. Why wouldn’t you? But if you’re working with an owner who is accepting a loan deferral but still insisting that rent be paid despite widespread unemployment and fear; that might not be someone you want to work with. It really reveals the character of a person who is getting a payment deferral but not passing it on to tenants.

Mitigating Property Management Cashflow in COVID19: Staff Cuts Your initial instinct may be to cut people. That’s where property management companies will struggle. If you have already laid someone off and you get the PPP loan and want to hire them back, they may say no thanks if they’re earning more on unemployment.

So, another hidden benefit is that there are plenty of people who don’t care about unemployment and would prefer to work.

That means you can upgrade your staff.

Upgrade Your Team It’s a good time to look at your staff and let anyone go who isn’t a performer. You’re going to find a larger pool of better people to choose from. The PPP forgiveness loan does not require the same bodies, just the same FTE count.

Everyone in the property management industry has been working so hard to build good teams. A situation like this will expose anyone who doesn’t add anything to your business.

Greg says that sales people don’t like to hear it, but the first thing that comes to mind is the money most property management companies may be spending on sales commissions.

Greg prefers using marketing methodology to build leads. It essentially creates a team approach to sales. A marketing and customer acquisition process should not be dependent on one person. It’s a coordinated activity.

Sales commissions can also pay for unintended successes rather than level of effort. A sales person right now can be working overtime trying to bring in new business, but the market won’t allow it. In a strong market, sales leads could land in a sales person’s lap without any effort, and the big commission will still be paid.

Greg prefers the model of paying people according to the value of what they do every day. If you have a good strategy and you offer a good product or service and your team executes, you’ll be successful. When you create lazy compensation plans that say you’ll only pay a person if they’re successful, it’s a false structure. They may not be successful because of what they’re doing. They may get handed a deal they had nothing to do with. Then, you’ve wasted a big wad of compensation on someone.

Pay Attention to Marketing Effectiveness Expenditures If you do good marketing, sales is just an operational process. If your marketing is terrible, it’s because you can’t tell your story about why you’re special. You shouldn’t be selling features and benefits, you should be telling stories. Why do investors love you?

The marketing effectiveness expenditure is important. You should keep spending money on marketing AS LONG AS IT’S EFFECTIVE.

How much should you spend on marketing? Greg says you should spend every dollar that’s effective.

Property management cashflow during COVID19 is tricky to manage: companies are feeling cash strapped. But, the smart companies are spending money on their advertising because they see the opportunity. Their competitors are pulling back, creating a larger space for them to pick up new properties and new owners.

Picking up just one or two new customers will replace the 20 percent decline the industry is expecting.

If you’re well-positioned, the money you invest in marketing now will really take off next year. Companies that can spend a little extra money on message and story will absolutely come out ahead. Can you tell customers why you’re surviving this and your competitors aren’t? That’s going to bring in a lot of new business.

The financial stress is creating an intersection of opportunity and need. Be there for it.

A property management client we recently spoke to signed up four new properties this week because he continues to push the value of his services. If you can do it financially, marketing now is very beneficial. Landlords who are self-managing have no idea what to do with their tenants who can’t pay rent. They need a support system, and that system starts with professional property management.

Show the DIY landlords that you’re more than a rent collector. Those landlords are right now feeling how hard it is to navigate these difficult times.

Comparing the Market Downturns: A Decade Ago vs. Now When thinking about managing your property management cashflow while COVID19 is making history, it’s helpful to look back and review similar events that have already happened.

Take 2008, for example: When the market crashed over a decade ago, a lot of landlords were going on Google and typing in things like: how to rent a home or how to screen a tenant and the property managers that built the foundation of their companies with content and educational videos and blogs really capitalized on those searches.

The same thing is happening now. Make some videos. Be the educational resource landlords need. Look at Greg and his company and the resources they’re providing on the financial side. People need help, and you can be successful by supporting them.

Not everything will repeat, and that’s the good news. Greg believes monetary policy is being better managed through this crisis than in 2008. The mistakes made in 2008 are not being repeated. But, it’s still an unwritten story. We are much closer to the beginning than the end.

Well-built, better performing business have opportunities. The herd will be thinned and those without good practices will no longer be in the race.

Greg expects the economy and the industry can recover into where we were. If the shutdowns extends significantly beyond June, there may be a different set of challenges that will be more disruptive.

The lengthening of A/R days and the shortening of A/P days is the most urgent danger. It creates a higher capital requirement to run a business. If we can get back to normal A/R payment days, the underlying power of the private U.S. business economy will prevail.

Greg points out that the biggest difference between third world economies and first world economies is the speed of cash from service by provider to payment by customer.

The more you shorten that time frame, the less capital is required to run a business. This disruption puts pressure on that.

Jack Stack is a business leader who said open book management is important. One of the things Jack really touts is the idea of reforecasting. If there was ever a time that you needed to get into your numbers and not look in the rearview mirror, it’s now. You have to learn to forecast and reforecast.

You can reforecast every week. If you don’t have your March books closed yet, you need to get them closed so you can forecast April. Next week, you’ll know more than you know now, so it will be time to reforecast. Then, look at May and June. Keep reforecasting and you’ll stay balanced. It will make you a better business owner than what you are today.

What You Should Remember About Managing Property Management Cashflow During COVID19: 1. Apply for the Payroll Protection Plan (PPP) 2. Conduct a Sensitivity Analysis 3. Apply for the Economic Injury Disaster Loan (EIDL)

A huge thank you to Greg Crabtree and our listeners. If you have any other questions about managing your property management cashflow during COVID19, or the effects of the pandemic on other aspects of your property management marketing, contact us at Fourandhalf.

Stay well and be well and apply for your PPP loan right now.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out how to start getting better clients into your portfolio.

The post Managing Hits to Your Property Management Cashflow During the COVID-19 Pandemic appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Ever thought about what it would take to expand your property management services?

Our guest on The Property Management Show today is from our own backyard. Based in Oakland, we’re talking to Carlos Veliz, the CEO of Vision Property Management. Carlos shares how to branch out from your traditional property management services to create new lines of business, revenue, and most importantly – service.

Introducing Carlos Veliz of Vision Property Management Carlos has a pretty great story. Vision Property Management went live in November of 2017. They now manage 700 units and they’re currently negotiating for an additional 150 units. Most of their accounts are local; they serve properties that are within 20 to 25 miles of Oakland.

Most three-year-old management companies would build their business organically or by buying up companies and portfolios. Carlos followed a bit of a different path.

He comes from a property management background, but had been doing construction. Carlos was renovating an apartment complex in early 2016, and one of his construction clients had purchased a portfolio of 25 units around Oakland. This client was having a terrible time finding a good Oakland property management company. His complaints were:

• They didn’t know what they were doing.
• They didn’t provide any reports or updates.
• They spent money without trying to save it.

Property management had been something Carlos had wanted to get back to; he had been thinking about opening his own property management company at some point. So, he asked this client for three months to prepare and get licensed and up to speed. Then, he would be ready to manage those units for him. The client agreed immediately.

How to Expand Your Property Management Services With The Triangle Effect: Building Better Businesses “The Triangle” is what Carlos calls his business model; from his property management company, he developed a construction company and a maintenance company. His goal has been to find recurring income streams so he could make all of his companies stable.

When Vision was started, they were using maintenance vendors just like everyone else. It was really difficult to find a good, reliable maintenance vendor. Results were inconsistent; sometimes, the quality was there, and sometimes it wasn’t. The vendors he used could not be counted on to fix their errors. If something went wrong, getting them back was almost impossible. They had already moved onto a new job and a new client.

In order to control the level of maintenance service he was delivering to his clients, Carlos realized he had to open his own company. So, he did that – and now all the work orders for Vision Property Management are done within 72 hours, and they’re handled professionally and responsively.

It has increased accountability and it has fostered trust.

In property management, 90 percent of the complaints you get are maintenance-related. If you can control and limit those complaints, it’s easy to run a great business.

Speaking of complaints, you may have seen our blog on incentivizing online reviews – which will frequently revolve around maintenance issues. If not, check it out!

The construction company, of course, already existed, and it fit seamlessly into the other two businesses. They’re being invited to do turnovers and remodels and major repairs. Carlos encourages his property management clients to gather other bids, but he has a relationship with his clients that makes it instinctual for them to choose his company. They’re more comfortable because they know him, they know his company, and they know his work ethic.

So the Triangle, or the Trifecta, for Carlos and Vision’s success is maintenance, construction, and property management.

Triangle Benefits: Accountability and Service We have talked to other people in the property management industry who say it’s a conflict of interest to blend all these services. But, there is a simple benefit. At the end of the day, the accountability lies with one entity. A lot of the bad reviews around property management start with maintenance. So, if you have the bandwidth and capacity to own the maintenance piece, why leave that opportunity hanging?

You can control the experience for renters and owners.

Everyone is familiar with the tenants who don’t want to wait for anything. They want their repairs now, and instead of calling a vendor and going back and forth, Carlos and his team can send their own maintenance crew immediately. This is especially effective during emergencies.

It also helps for any owners who are paying too much for good maintenance. Emergency or after-hours work can cost three times the normal amount. You’re paying much more for the same work, and having a dedicated maintenance team attached to your property manager can solve that.

Carlos is committed to charging market rates for hourly labor and materials. Then, there’s a 10 percent mark-up for hourly rates, which he is transparent about with his clients. He’s a Certified Property Manager and accountable to a code of ethics. Conflict of interest is a big phrase for him and his team. He is careful to disclose everything and be upfront. All of their clients know who they are, how their business model works, and why it’s successful. It makes sense to a lot of people.

Trials, Errors, and Challenges Trial and error is essential in building a new business model, and Carlos is comfortable with it. He’s willing to try what he thinks will work and then try something else if it doesn’t.

Finding loyal employees was the first challenge for Carlos to face. He’s 43 years old and he’s had four jobs in his life, so loyalty is important. With a strong economy and everyone wanting to make more money and do new things, it was hard to hold onto staff.

He came to learn that good employees work for good companies. He stopped hiring from a place of desperation and started to be intentional about the new team members he brought on board. One of his mentors advised him to hire slow and fire quick. It took some time for him to pay attention to that, but he eventually saw the importance of it. It was one of his challenges, but now he’s doing a better job with it.

At Vision, mistakes and failures are never about pointing fingers. The team talks through things. Maybe something wasn’t advertised correctly or the wrong tenant was selected or the accounting got messed up. Instead of pointing fingers, there’s a group hug and a big discussion. Everyone learns from the mistake.

Three of the Vision Property Management employees have been with the company from the beginning. Problems are less scary now; they’re usually a reason to laugh.

Communication is Critical with Three Companies Communication and structure is important in keeping everyone on the same page. There’s a handbook with all the company’s policies and procedures which started at three pages and is now 25 pages. More things are consistently added to make sure everything is working.

With separate maintenance and construction companies, Carlos can make sure his property managers are dedicated to tenants and clients. That freed up a lot of time and increased service levels.

All three companies work well together because they all work from the same office. It’s a communal space that allows for the free flow of communication. Carlos jokes that everyone is nosy and always listening. But, this is valuable to keeping each company and team member informed. They have solved problems and shared ideas together.

As an example, one of Vision’s properties had a water leak. It happened at 7:00 at night, and the maintenance team took the call and dealt with the problem. In the morning, the whole office talked about it and received an update. The tenant called while it was being discussed and it was easy to work that tenant into the conversation that was already happening.

Preparing to Create a Triangle Carlos knew he was going to start with a 25-unit portfolio, so he went on Yelp and Google and looked at other companies. He was surprised that he couldn’t find a single company with more than three stars. As he analyzed the reviews, he got to know the leasing and maintenance clients who were leaving those reviews. Most of those bad reviews were maintenance-related. He was busy with construction and thinking about property management, but maintenance seemed like an obvious place to go.

Starting a maintenance company wasn’t the best idea for ROI. It didn’t bring in a lot of money early on. The reason Carlos did it was because it was such a perfect fit. He knew that if the maintenance services went well, Vision Property Management would do well. It was security.

Client feedback was also important. He began talking to his property management clients and offering his maintenance services. He was hoping for cooperation, and they were actually surprised he hadn’t asked sooner. It seemed like a natural progression.

This is a big mindset shift for you if you own a property management company and you’re thinking about opening a new line of business. Making money isn’t the only reason to do it. It’s a long term investment because it turbocharges your whole business.

Tracking the Success of Vision Vision Property Management has 4.5 stars. So, the vision is working.

Carlos keeps a big spreadsheet because numbers never lie. He organizes all the data he needs to see what kind of success he’s having. He can check the spreadsheet to see how many new clients he has, how many vacancies are coming up, and how many tenants are delinquent on rent.

After three years of doing business, Vision has finally broken even. So now, Carlos also has a profit spreadsheet.

Building a Supportive Team Culture Fosters a Supportive Client Relationship Vision Property Management has a good culture and they’re having fun.

Carlos checks in with his teams all the time. They have lunches, coffee breaks, and one-on-one sit-downs from time to time. He’s an entrepreneur who likes to have the pulse of his business at all times. Carlos is detail-oriented when it comes to customer surveys and he’s involved in automating processes. He loves to listen and observe and he always asks his staff to teach him something.

This company culture can be seen in the way they care for clients.

Carlos is intuitive and attentive to what people need. He recently interviewed a new client, a young couple, who were upfront with Carlos about seeking a property management company that they could rely on, while they pursued their lives and careers. Carlos knew that if Vision landed the business, he would want to check in with them frequently. He knew from that first interview they wanted to feel cared about. As a result of Carlos’ attentiveness, the couple agreed to work with Vision.

Carlos also sends a personal introduction email to all new clients. He tells them who he is and he provides his personal cell number. Clients can call him directly if they can’t get in touch with their leasing agent or property manager. It’s more than an account; it’s a personal relationship. He thinks it’s special.

Alarm bells might be going off at the idea of giving clients your personal cell phone number. The good news is, clients rarely need to use it because the management team is so accessible. Still, it gives those new clients an extra feeling of security.

It’s easy to have automated solutions. But, human interaction shouldn’t be taken for granted. It’s more impactful now than ever. People want to work with a company that offers more than a button on a website.

Carlos says he likes automation and Vision will always work for volume and fight for big accounts. But, he wants to make sure that clients feel they can connect with his company. There is a middle ground to what’s automated and what needs to be communicated in person.

Risk Management: Controlling What May Fall Through the Cracks Many things fell through the cracks as this whole thing was starting. Risk management is one of the best ways Carlos stays ahead of things. Controlling risk is important.

There’s a weekly meeting where the whole team gets together and takes responsibility for the agenda. It’s a 30-minute meeting that relies on bullet points, but anything that pertains to risk management is written in big red letters. All these issues get raised.

Keeping Up with Industry Changes Given that Carlos is basically in three connected but still separate businesses, there’s a lot to keep up with when it comes to laws and best practices.

Oakland and Hayward and Alameda and the surrounding areas are always updating their laws. The best way Carlos has found to stay current is through association memberships and subscriptions. They update him and his team. He also believes strongly in ongoing and continuing education. It prepares his team for new challenges.

We hope this discussion on how to expand your property management services was insightful. If you’d like to hear more or you have any questions for us or for Carlos, please contact us at Fourandhalf.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out what you need to supercharge your marketing and unlock your company’s growth potential.

The post Branching Out From Traditional Property Management Services appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Are you having a hard time finding your Google My Business profile? In need of some quick Google My Business property management fundamentals? This is an important part of marketing your property management business, so it’s important that your profile is active and easy to find.

Today, we’re talking about the basics of Google My Business so you can be sure to maximize your online presence.

Google My Business Fundamentals for Property Managers: 1. Own Your Google My Business Page Make sure you’re actually the owner of your Google My Business page. This is the first and most obvious step. If you’re not the owner of record, you will need to take the necessary steps to claim it and verify it.

Once you know you’re the owner of the page, take a look at the information that’s already included there. Some of it may be out of date or inaccurate or blank. You’ll want to bring this information up to date so it reflects your current business.

Everything needs to be completely filled out.

2. Update Your Property Management Business Information The bare minimum in making sure you can maximize the visibility of your property management company includes a few key things.

First, you need to check your hours of operation. It’s important that the listing is accurate. Make sure those hours reflect any variations during weekends and holidays. Keep them accurate. It’s extremely frustrating to call a business and learn that they’re closed even though the hours they’ve posted online indicate that they’re open. It’s not a good way to represent yourself to current and potential clients.

Your company address is also important. Take a look at it and make sure it reflects where you really are. This has to be precise, especially as a property management company working in local markets and regions. You need your actual location to be part of your page. Google will not accept virtual locations or fake addresses or P.O. Box listings

Finally, make sure your page includes the services you provide and your business description. Obviously, you’ll want people who see your page to know what you do and who you are. Spend some time ensuring that the listing is accurate and useful.

3. Include Some Photos on Google My Business To make sure you’re providing users with the best possible experience, it’s important to include some great photos. You want to have pictures of the exterior of your business, the interior operations, and perhaps even your logo. This makes you easily identifiable and puts a face to the name of your business.

4. What to Post on Google My Business Once you have some photos in place, make sure you’re taking advantage of the post feature. Maybe you can advertise some of the promotions you’re currently running or specials you may have for new property management clients.

This is also a great place to include some blog content or a list of events you’re hosting for owners, investors, and other community partners. Placing these things in the post section will deliver some extra information to users that will be useful to them and beneficial to you if they decide they want to learn more.

5. Manage Your Reviews & Reputation on Google My Business Finally, don’t forget your reviews. We’re always surprised when reviews are still so overlooked. Create a strategy for requesting reviews and responding to them. This helps a user who is on your page and it also increases your ranking on Google.

Our next marketing blog for property managers will go into detail on the importance of those reviews, so stick around and be looking for that one. In the meantime, if you have any questions about Google My Business property management fundamentals or you want to know that you’re really doing the best you can with Google My Business, contact us at Fourandhalf.

Fourandhalf helps property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out what you need to supercharge your marketing and unlock your company’s growth potential.

The post GoogleMyBusiness Fundamentals for Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The last time we were together on The Property Management Show, you learned why having standardized systems and processes is so important to your property management company. This week, we’re digging a little deeper into that: we’re talking about how to implement standardized systems and what to do first.

This can really be transformative for your property management business, and we’re joined by Dave Gorham, who makes this a living and breathing part of the way he does business at Realty Solutions.

How to Implement Standardized Systems in Property Management: Job Descriptions and Organizational Flow In Part 1, we discussed the importance of standardizing your processes and what kind of obstacles and benefits you can expect when you use them in your property management company.

Now, let’s take a look at the process behind standardized processes: how do you implement standardized systems?

Realty Solutions is a New Jersey-based property management company that is successful now because they embraced a sense of organization. Dave was an early adopter of job descriptions and putting together an organizational flow.

You have your own assumption or expectation about what each person on your team does. It’s important that those team members have the same expectations and assumptions. Unless you have something written down, you cannot talk about why you may be out of sync.

Don’t keep your job description in your head. Write it down.

If you’re the president of the management company, you have some expectations about what your bookkeeper should do. But, your bookkeeper might have different ideas about what her job is and what your job is. That’s why you have to write down every job description. It allows everyone to know your true responsibilities and the responsibilities of others.

Titles and jobs have different meanings from industry to industry and even from company to company. At Fourandhalf, our job description for an account manager is very different from what an account manager does at a bank or a cable company.

Each business defines it for themselves.

If you don’t have each role defined, everyone will have different expectations. So your first step in getting an organizational flow in place and systems standardized is to define every role in your property management company.

Contracts and Agreements Lead to Accountability If you don’t spell out what you’re doing, it’s easy to get out of scope.

Identify your roles and relationships. You can customize things as needed, but make sure it’s written down for everyone to see and understand. You wouldn’t take on a property management client without a contract. Make sure your employees have a job description – or a contract – as well. That’s a precursor to a compensation package, and from there you can move to KPIs and improvement plans.

Agreements need to be in place as well. They can be put into place by two people. Those agreements have to be described in writing. They also have to have consequences which are good or bad, and there has to be a way to clean up the agreement if it stops working.

Things do not happen magically. You need a collective mindset that agrees to this, and it has to come from a leader within the company who sets up guard rails or boundaries and then allows every employee to use their creative and critical thinking to follow the processes and commit to the agreements.

Developing an Organizational Flow (Chart) How should you implement standardized systems like organizational charts or flows? At Realty Solutions, Dave developed an organizational chart for the company, but he doesn’t want you to embrace all the negative connotations that come with the term ‘organizational chart.’

Don’t see it as a superiority scale or a picture of who is most important in the organization. It’s better to make it an organizational flow rather than an organizational chart. This is important in getting rid of the idea that if someone’s name is above you, it’s in a superior or authoritative aspect.

What the organizational flow should show is where you go for support or questions. The person in the box above you knows what you do and how you function. You’re the one keeping yourself accountable – not the person in the next box up.

This turns into a decision-making and operating structure.

You may remember the Fourandhalf blogs Michael Lushington did a couple of months ago on work flow. This is similar. Before Michael came to Fourandhalf, everyone had an idea about who did what, and how they should respond if something went wrong. But, nothing had been written down. Nothing was on paper. There wasn’t any standardization. We were successful, but as we grew and added new people to the team, things were bound to break. Those ideas in our heads had to be put into a work flow.

Workflows Are Not One-Size Fits All Dave is not a micro-manager at Realty Solutions. His job is to create policies and procedures based on what works well. That’s an ongoing conversation with everyone on the team. Each best practice is put into a policy, and that’s something every team member (they changed the language from employee to team member) has available to them. If a property manager is struggling with rent collection or a fair housing issue, there’s a policy in place that provides the guard rails or the boundaries of what should be done.

The goal is to have all this in place so your company can move on without you.

We want our companies to survive without us. It’s what Scott Fritz talked about last year at PM Grow, and it’s something every property management company owner should be prepared for.

Your organizational flow has to have meaning. If you’re a huge national company with a large organizational chart, it may feel too big and every team member feels like an ant in an overwhelming system. Organizational charts can be big – but, they have to mean something.

PM Grow Summit Sponsorship

Providing Support for Team Members Whether the organizational chart is operational or hierarchal, it delivers creative license and support to your team members. You’re encouraging people to think critically and make their jobs their own.

This is a culture you need to create inside your property management company because it expands out to your owners and your residents and your vendors. It provides you with a natural litmus test when you’re screening or talking to a potential new owner. You’ll know right away if you’re talking with a bad resident or an owner who isn’t your target client or a vendor who might not be a great fit.

This is one of the ancillary benefits provided by solid organizational flow.

When you’re responsible for a team, you shouldn’t be telling them what to do. Instead, they should be telling you what they need to do their jobs. You need to support your team members, and that’s got to align with methodology. If you choose to micromanage, you’re taking away the creative license and critical thinking abilities of your team.

Dave says his company was in a position last year where the whole business felt dumbed down and team members were not thinking critically. They were pushing buttons and sending things out but not really investing themselves in anything.

He wants his team members to manage as if they owned the property themselves or as if they were the residents moving into the home. He wants them to consider whether they’d be happy with the decisions they are making for the client or the resident.

How did the company get to the point where people were not critically thinking?

Partly, it was due to what we always talk about. Property management companies want to grow, but they’re not always prepared for that growth. The way you work at 150 units is not going to be the same way you work at 1,000 units. It’s a different business. You have to recognize when the business changes.

Your team members need systems and structure, and they also need creative license within those systems so they’re not just pushing buttons and nothing more.

Responding to Questions: Noise vs. Solutions Every management company has high maintenance clients and residents with constant issues and problems. This is frustrating for a property management question, and you have to make sure you’re responding to the question or the problem, and not the noise.

Figure out the real question. When a client or a tenant or even a team member brings you noise, simplify what’s being asked. The noise is at an emotional level. Logical solutions are at a higher level.

To solve a problem, you need the facts. If the facts aren’t clear, ask for clarification and keep going.

Think if it as a disease. The noise represents the symptoms of the illness. If you keep treating the symptoms, they’ll come back over and over. If you get to the actual cause of the illness, you can cure it completely.

Limit the noise so you can be more compassionate. Even if there’s a decision that one party will find to be negative or not what they wanted, your willingness to show compassion allows people to accept the negative decision.

Don’t be afraid to include that need for compassion in the job description. You might think of a job description as being a list of tasks a person has to manage. But, it could include how those tasks are managed. You have to tie the job back to the overall organization. They why is just as important as the what.

Empathy vs. Compassion in Property Management The difference between empathy and compassion is huge. Dave held a class on it for his team members and he coaches people to realize that empathy has no business in property manager. Compassion does belong in the way you manage your business, but empathy is not the skill you want to bring to the office. When you have empathy for someone, you’re putting yourself in that person’s place. You’re getting noisy with them. That prevents you from seeing a path to solve their problem. When you’re compassionate, you’re outside of the noise and you can see a clear black and white answer.

Being compassionate is more beneficial to all parties when you’re a property manager or managing a property management business. You get through the noise and you move on.

With your systems standardized, all the answers are right there within your company’s structure. If you have a situation with a tenant or an owner, you’re going to be able to respond to it. There’s a lease and a contract and an agreement within your company that shows your team members what to do. No one should have any expectations that are out of alignment.

Ritz Carlton understands compassion. They use the terms “ladies” and “gentlemen” instead of employees or customers. They help people without hesitation and without asking why they should. Dave once needed a ride back to the hotel he was staying at in Orlando after having dinner at the Ritz Carlton. They had a car take him back without any questions asked. The hotel chain didn’t know who he was, and they didn’t ask if he was a hotel guest; they simply responded to the need. Everything is yes, whether they were hotel guests or not.

This is compassion, and Ritz Carlton trains their team members on compassion.

It’s not dissimilar to treating people like residents instead of tenants.

Mapping Out Your Operational Flows How can you map out your operational flow?

Start with the organizational chart that reflects every role in the organization. Then, fit in the tone, the idea of the job, and a key question – are they compensated properly for the job? You need a separate compensation document.

You also need an agreement at each level. The property managers should have their agreements and bookkeeping has another and sales has their own agreements. You can keep diving in to decide how far you want to go.

Once your organizational chart and your job descriptions and compensation documents are in place, you can move on to performance improvement plans and key performance indicators.

Dave uses organizational flow to understand when something needs to change for his team members. He currently has a property manager who didn’t get the training she needed when she was first hired. She had to figure everything out on her own, and she pushed ahead without anyone supporting her. Now that Dave is looking at the work she does, he’s worried that it will be hard to scale with the way she is working. So, they’re working together to help her be better as her job changes.

What to Remember When You Implement Standardized Systems in Your Property Management Company Policies. Procedures. Best practices. You can use those terms interchangeably. Make them public on your website, as PDFs, whatever you have to do to make them real and accessible.

You should have a process and a procedure for each thing, whether it’s eviction or move-in inspections or rent collection. That doesn’t mean the property manager doesn’t have to think. You’re still leaving room for creativity because you don’t want to get too standardized.

Four years ago, Buildium went into a partnership with Happy Inspector. It was supposed to be the perfect way to conduct inspections. Most people loved it, but it didn’t work for Realty Solutions. They felt it took away all the critical thinking and made the process too standardized. So, Dave and his team developed their own inspection process, but now the company is outgrowing that, so they’re giving the Happy Inspector platform another look.

Your biggest takeaway should be this:

Don’t have a process just to have a process. It has to have meaning. It has to live and breathe.

Thanks for joining us for both segments of this podcast with Dave. If you have any questions about how to implement standardized systems into your property management marketing, contact us at Fourandhalf. And, we hope to see you at PM Grow in Austin this May.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get afree marketing assessment to find out what you need to supercharge your marketing and unlock your company’s growth potential.

The post Part 2: Reimagining How Standardization is Implemented in Property Management Companies appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Setting up a search engine marketing or google ads campaign is pretty easy, but maintaining it is a different animal.

We’re talking to you today about search engine marketing and what it takes to maintain the digital advertising campaign that’s going to help you grow your property management business.

Basics and Benefits of Search Engine Marketing The types of ads we are talking about will be seen on search engines like Google and Bing. There are two main benefits of search engine marketing:

You can show your ads directly to people who are interested in property management and real estate services. You won’t waste your time and money advertising to people who are never going to use one of your services.

Your ad can show up on the first page of search results. This is especially important if you’re not appearing there organically.

Managing Your Google Ads Campaign: Statistics Several statistics can be evaluated to know if your ad is performing well.

The first one to look at is your Cost per Lead. To get this, you simply the divide the total amount you spend on Google Ads by the number of leads you get. The cost per lead will vary by location. If you’re in a market with a lot of ad competition, you’re going to have a higher cost per lead. If you’re in a market with less competition, you won’t have to spend as much to get those leads.

Determine the amount of what you’ll spend by looking at the Customer Lifetime Value you receive from each lead.

The next statistic that’s important is your Click Through Rate. This is the number of times someone clicked on your ad out of all the times it was shown to people conducting online searches. An average Click Through Rate in the property management industry is between three and four percent. So, anything above that means your ad is performing well.

Finally, make sure you’re checking your Search Impression Share. You may remember the past blog where I discussed this in detail, so if you want to review it or learn more, click on the link here to re-visit that.

Keywords Help You Build a Better Ad Keywords are the most important part of your Google Ad campaign. The keywords you select will determine which searches your ads show for and what they don’t show for.

It’s also important to keep track of your keyword bids. The goal is to keep your bids competitive so your ads show up frequently on search results and higher in the pecking order.

Don’t forget the importance of your ad copy and your landing page.

To have successful Google Ad campaigns, you need copy that’s highly relevant to the keywords you’re using and enticing enough to get people to click on your ad. Once they arrive on the landing page, it needs to be visually appealing and easy to navigate.

We have just scratched the service with this discussion of how to manage your search engine marketing plans. If you need any help planning and implementing your property management marketing strategy, you know we’re here for you. Contact us at Fourandhalf.

The post What It Takes to Maintain a Search Engine Marketing or Google Ads Campaign appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Our next big topic on The Property Management Show is the importance of standardized systems when you’re starting, growing, or even preparing an exit strategy for your property management company.

This is such an essential topic that we’re breaking it into two parts.

Today is Part I, and we’ve asked Dave Gorham to join us because he’s a systems and standardization success story.

Introducing Dave Gorham of Realty Solutions Dave Gorham is the broker-of-record and owner of Realty Solutions, a New Jersey-based real estate management company. Realty Solutions is more than a property management company; they look at the full lifecycle of an investor and an investment property. In addition to managing properties, the company does community association management and operates a law firm. They’ve been in business for more than 20 years.

With over 30 years of real estate experience himself, Dave can also approach his work from a place of personal experience because he’s an investor, too. He’s also a Mind-Set Coach for Frame of Mind Coaching, and loves building leaders.

Defining a Standardized System in Property Management: What it Is and What it Isn’t Anything that makes what you do repeatable and easy to track is a standardized system. It could be a calendar. It could be a history of events. It could be a list you keep with a paper and a pen. The idea is to track what you do and measure results.

It’s that simple.

When you really start to build your standardized systems, you’ll start thinking about property management software and accounting software.

A standardized system is not a rigid set of rules. It’s a consistent plan to leave people more space and energy to be creative and work their own way.

This is an important distinction. The systems provide enough guidance so that when things happen, there are warning signs to show you what might be coming or what area of your business might be affected.

The successful standardized system will have rigid processes but will give the user freedom to do their job better.

In a property management company, your standardized systems might cover how internal communication is tracked or what happens when someone signs up for your services or where you start when one of your clients wants to sell a property.

PM Grow Summit Sponsorship

How to Manage the Fear of Standardized Systems People get nervous about standardized systems because people fear they won’t be nimble enough in their job.

It creates fear in an organization sometimes, especially when people believe that they should do things according to their own best judgment. You have to demonstrate the benefits of a standardized system against the risks of doing everything on a case by cases basis.

Fears are usually dissipated as soon as people start using the system. With the right standardized and consistent process in place, you don’t have to figure out what you’re going to do next. You know what the next step is, and you’re prepared to take it. But now you can use your critical thinking and your creativity to do a better job with those steps.

A property manager can do a better job working with a vendor who has been a challenge when she is working within a standardized system. Everything is tracked, so that property manager is not only working better – her work can be repeated and measured because she’s documented what she’s done.

Sometimes You Need a Better System Everyone uses some sort of system. The question you need to ask is – how do you know if your system isn’t working?

Consider your sales process. You may have a process and you know how to go through the motions. But, is it repeatable? Can anyone follow that process and have the same successful results? If it’s not scalable and another team member cannot follow the system, then you need a better system.

As you grow your property management company, you’re going to continue hiring people and bringing on new team members. If the standardized systems you’re using don’t make sense to new people or can’t be used by someone else, they’re not working for you.

Why You Need a System: An Example (or Two) Dave is working with a business owner who is re-starting his brokerage company. It’s a small business and the owner has always had a lot of freedom with how it’s run.

The business is five years old, but it’s also brand new, as if he’s starting over. Why?

It’s a new business now because he decided he wanted to grow and move the business forward. So, he needed what he didn’t have yesterday, which was a set of systems that include software. Now, he can track what he’s doing and see where his greatest successes and challenges are. He has a small team that’s going to grow as he scales.

A second example is a new client Dave just began working with, who he has known for years. Five years ago, this client was self-managing 20 rental properties. That required systems, and the owner had some in place that worked for his 20-unit business.

Then, he found himself managing 50 homes and then 90. Essentially, this owner was running his own property management business because he owned so much real estate and he wasn’t using an outside company.

The problem is this: the business changed, but the systems didn’t.

At 150 properties, this client was feeling like he was in some hot water. He needed better systems, but he didn’t know what those were, and his entire portfolio was in jeopardy. It wasn’t being mismanaged out of malice or because there was some lack of understanding about how the real estate and property management industries work. He was still making money, but he didn’t have the systems in place to track the moving parts. How could he know he was profitable?

Let Your Systems Breathe It is very easy to feel like a system isn’t working on day one.

But, you have to trust the system and let it breathe a little bit. Think of it like opening a bottle of wine. The system needs some air. It needs to settle.

When your team trusts the system, it will work. The implementation process will take a lot longer if the team fights it or struggles against it. When the team adapts, there’s an “a-ha” moment and immediate buy-in. But, sometimes you have to break a lot of bad habits to get there.

To effectively get your team on board with a standardized system, you have to accept feedback about positive and negative experiences. The system itself is not good or bad, and it doesn’t care what people are saying about it.

How Communication Helps System Implementation Communication helps you and your team adapt to new systems faster and more completely.

Dave’s company is big on communication. They talk about things and they trust one another. Recently, a new system went into place where nine agreements were proposed and everyone had to agree to them. One such agreement was that cell phones and computers would no longer be allowed in update meetings.

That was frustrating for some people who never want to be without their phones. So, they talked about it. These conversations include everyone from the leadership team to the individuals at the secretary level. Everyone agreeing to the new systems has changed the culture at Realty Solutions dramatically. The secretaries in the office have the same weight as the founders when it comes to making changes.

Communication fosters accountability. You all agree to this standardized system, so you are accountable to yourself for following it.

Another one of the agreements Dave’s team came to was that three people had to be in a room in order for something to be changed. Whether it’s a system or something involving a client or a vendor or a tenant, the two people discussing the change has to bring in one more person from the leadership team. At that point, with those three people in the room, it can be adopted and then brought up to the full group. This isn’t a debate that everyone will be involved in; it’s the unveiling of a new system that was agreed upon by at least three people.

Standardized systems provide integrity within your property management company. It’s integral and closed and whole. You have the opportunity to put it all together.

Impact: How Standardized Systems Help Businesses The client who finally asked for help with his 150 doors to manage is a success story. Things were working before, but they were working badly. Now, he can track things. He can show his profits with some reliable documentation, and his banks are happy. He may not be bringing in the money he wanted to, but his business is stable and next year he’ll earn more. That’s a big deal.

Realty Solutions has grown dramatically as well, thanks to its set of standardized systems. They currently have 600 doors they’re managing, plus a number of law clients, plus a number of sales transactions, plus 20 community management contracts, all totaling about 3,000 doors.

Five years ago, this would have been hard to imagine. But, a business can grow from 150 to 300 to 500 to 1,000 units with the right systems in place. When everything is standardized, you’re prepared. You can react quickly to anything that isn’t working, and you can fix what is broken.

At the end of 2019, Realty Solutions bought a huge batch of contracts and a community management company. Integrating those staff members and those clients would not have gone well if strong systems were not in place already.

What to Do When Your Employees Are Uncomfortable With Change Fear and ego are the two things that get in the way when people are joining your team from the outside and integrating into your way of doing things. Those new people at the table had their own systems, and they might be protective of them.

Transparency helps. If you can be open and transparent, and the new people you’re working with can be open and transparent, you’ll have a win/win situation. This should be your intention.

Dave admits that one of his favorite sayings is “I told you so.” He even loves saying it out loud.

This is because the consequences are pretty high. He cannot have everybody doing things in different ways when he’s running a successful company.

While he might enjoy the “I told you so” moments, things rarely get to that point because he’s good at educating people and talking about the business and how it operates. He and Rob consider what they have a democratic dictatorship. What they say as the company owners will be the way things are done at the end of the day. But, the team is encouraged to talk about it and figure out how those standardized systems can work for them.

Most property managers are in this business to serve and make money. So, if you’re going to fail – fail forward. That means you have to correct your mistakes. The transparency you have with your systems requires faith and trust.

Faith is blind. If Dave can provide his team with faith, he’s a good leader. Trust requires evidence. People will trust your systems because they’ll see the evidence that they work.

Takeaways from Part 1: The Power of Standardized Systems in Property Management Everything can be standardized. If you think of systems as rails that you should stay within, you’ll find that you’re better protected against risk. Going outside those rails elevates your risk. Establish those boundaries and stick to them.

In Part Two of this podcast, we’ll talk about how you do this – how you can implement your standardized systems, and what you should look for when you’re putting them together. Make sure you join us for the continuation of our discussion on this important topic.

Standardization is not what you think it is. We hope you’ve learned that and a lot of other things today. Please contact us at Fourandhalf or Dave at Realty Solutions if you have any questions about how standardized systems in property management can help you grow your business.

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get a free marketing diagnostic to find out what you need to supercharge your marketing and unlock your company’s growth potential.

The post Part 1: The Power of Standardized Systems in Property Management Companies appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

What’s the difference between organic results vs paid ads vs local listings?

Let’s follow up on the Fourandhalf blog Daniel presented last week, where he discussed SERPs (Search Engine Results Pages) and why they’re important for your property management marketing plans. Today, we’re diving in a little deeper and talking about the differences between paid advertising, organic ranking, and local ranking.

Organic Results vs Paid Ads vs Local Listings: Paid Advertising for Property Management Paid advertising or search engine marketing (for example, Google Ads) is an important part of any online strategy, and we’re actually going to have Amanda talk about the topic further in our next blog. Until then, there’s one important thing you need to know about paid advertising online:

You have to pay to play.

This is a bidding system. What you pay and the results that are produced will depend on where you’re located and who your competitors are. The amount you have to bid to get your ad on the first page of Google will change from month to month and year to year.

Organic Results vs Paid Ads One of the main and most important differences between paid advertising and organic search is the results that are produced. When people are searching and they see paid advertising, most of the time these results are short-tail searches. They already know what they are looking for and they already know they want to buy the service. They just need to decide on which service provider that’s going to be.

With organic searches, the people searching are not really sure what they need yet. Perhaps they’re wondering what property managers are or if they even need a property manager. It is still kind of up in the air for them. That’s when you show up organically in their search results based on the keywords they’ve used and even the questions they’ve asked. It’s an opportunity for you to take them on that journey to help them discover what they actually need.

Be the Search Result that Educates and Builds Trust By educating your leads, you are building trust with them.

This relates to online searching because most of the time, online searches are long-tail questions. Things like:

• How do I screen tenants?
• How do I perform an eviction?

These types of questions will show up on Google all the time, and when your blog or article on the subject shows up, it demonstrates that you’re in their corner and you have their back. You are providing them with the answers they are looking for, and that builds trust with them over time.

Understanding Local Property Management Searches Now we know how paid advertising and organic searches work, so let’s talk a bit about local searches.

The main difference with a local search is that you’re only going to show up if you’re located in the specific area that’s being searched. For example, if you’re trying to rank for “San Francisco property management” and you are not located in San Francisco, you won’t show up in those local searches.

There are pros and cons to local searches for property management companies. One pro is that you’ll be easier to reach for people in your community. You’ll show up in any searches that local owners and landlords are conducting for property management services. However, if you have a wide service area and your office is not located within the main city you’re trying to target, then it may be impossible for you to rank in those local searches.

As you think about the differences in organic results vs paid ads vs local searches, you have hopefully come to the conclusion that you really need all three to put together a property management marketing plan that captures as many leads as possible in your area.

Look for our next blog on paid advertising, and if you have any questions about marketing and growing your property management company, please contact us at Fourandhalf.

The post How Are Google Ads, Organic Results, and Local Listings Different in Property Management Marketing? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Do you know what a Search Engine Results Page (SERP) is, and what it means for your property management company?

It’s quite likely you’ve already seen it on your mobile device or your desktop.

Most SERPs will be ordered like this:

1. First three pay-per-click ads.
2. Map and local results.
3. Around 10 organic search results.
4. Final three paid ads.

That’s the basic overlay of any SERP – but what comprises each of those elements? Let’s dive in and see what each of these categories actually consist of and why they matter to property management marketing.

Anatomy of a Search Engine Results Page (SERP): Paid Ads Come First on SERP This may seem obvious, but you’ll know you’re looking at a paid ad because on the left side, you’ll see the word ad. But, what goes into a paid ad?

First, you’ll see the business information followed by the URL. Somewhere in between that or below that will be a star rating, which represents a company’s reviews. All this information is grabbed by Google My Business; you don’t have to manually include any of it.

If you’re looking at your own paid ad results, you’ll next notice a better description of what your company does. You can control what you want viewers to see. Then you have an additional option below that description, where you can choose to include ad extensions. These could be anything – maybe an offer for a free rental analysis.

Got other questions about Google ads? Check out our blog series on paid ads.

Location-Specific Results and Maps If your search has a location-specific term in it, the next thing you might see is a map.

Below that map, you’ll see three results with businesses that are pulling information from their respective Google My Business accounts. You don’t have to worry about Google My Business just yet. We’re planning to talk about that in a later video, so for now, just notice that you have an option to click on the local map results, which leads to an expanded map with additional results on the left side.

Exploring the Organic Searches Next, you will see 10 different organic search results. These are basically pages that Google thinks are relevant to what you searched for.

Notice these are pages. Google ranks the pages and not the entire website. This is why it’s so tremendously important to optimize your content. The text on your webpages needs to be relevant and search-worthy.

Not everyone knows what an organic result even looks like. The first thing you are going to see is the title of the page. The URL will be right below it followed by a longer description pertaining to what the page actually is. If you are not number one on the page, don’t worry. If you can answer the questions that people are searching for, everything else will follow. Traffic will begin to arrive on your page and consistently remain on your website.

Paid Ads Complete Search Results Following the 10 search results, you’ll find three additional paid ads. Then, you’ll see a brief excerpt that describes what people are searching for. These are related topics and similar terms that match the original search.

With the right content strategy, you can actually leverage these to drive more traffic to your website.

To go deeper into the differences between paid ads, organic results and local listings, check out our deep-dive.

If you’re not sure whether your current content strategy is set up to take advantage of how a Search Engine Results Page functions, contact us at Fourandhalf. We’re here to help with content, website optimization, and all your property management marketing needs.

The post Anatomy of a Search Engine Results Page (SERP) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Looking for an summary of AB 1482? Look no further.

If you’re managing properties in California, it’s hard to avoid discussing AB 1482. This new law has probably taken center stage as you help the landlords and investors you’re working with comply with it’s requirements.

We asked Keith Becker (DRE License #01201067) of DeDe’s Rentals & Property Management to help us understand what’s happening in California with rent control, and what other markets and states are thinking as we implement new standards here.

Keith is heavily involved in the National Association of Residential Property Managers (NARPM) and extremely active in property management legislation.

When it comes to managing homes in California, Keith gets around. So, his insights are worth listening to.

Keith Becker: A Brief Bio We’d be very surprised if you don’t know Keith already, but in case you don’t, here are a few things you should know about him:

• Keith has been managing residential rental homes for 25 years.
• DeDe’s Rentals in Santa Rosa has been around for nearly 50 years.
• Keith has been the president of the California state chapter of NARPM.
• He’s been NARPM’s regional vice president for Hawaii and California.
• Presently, Keith is on the NARPM board for the North Bay area and he’s also on the board of the California Apartment Association.

Keith still loves when he does, and when he’s not running DeDe’s, he spends his free time focused on property management. He loves this industry, and he follows everything that happens in it.

A Summary of AB 1482 and Getting Good Advice AB 1482 is also known as the California Tenant Protection Act. If you own a property management company – even outside of California – you need to know what this law is and why it’s considered the minimum standard right now.

This is rent control. There are two things to think about right away:

We are discussing some heavily legal information today. Like most of you paying attention to this podcast, Keith is a property manager not an attorney. A lot of information surrounding this topic has legal implications, especially when you execute the laws.

If you have a legal question, talk to an attorney who specializes in landlord-tenant law. It’s complicated, and we expect it will only get more complicated.

Politics has shaped much of what’s going on in California and with rent control. We aren’t going to get into politics. We’re talking today about process. This has already happened. While there’s always a threat that Costa Hawkins, one of the primary rental housing laws in California, will be overturned in the future, we’re not dealing with that today. We’re dealing with the current law and what it means for you, the properties you manage, and the tenants you work with.

PM Grow Summit Sponsorship

Baseline Rent Control: California State Law and Local Laws This statewide rent control law is the baseline for any rent control ordinances throughout California. What you need to know when we’re balancing the state law against rent control laws in cities throughout California is that whichever law is more onerous to the owner and more favorable to the tenants will always apply.

Some cities already have rent control laws in place that are more arduous than AB 1482. Their stricter laws apply.

For example, let’s look at Richmond.

In Richmond, landlords cannot raise the rent on their tenants any more than the Consumer Price Index, or CPI. The new law, AB 1482, says you cannot raise the rent more than five percent plus the CPI.

This does not mean that Richmond owners can now raise the rent five percent plus CPI. The Richmond law is more onerous for landlords, so that law applies.

But – the rent control law in Richmond only applies to properties that were built before 1995.

With AB 1482, the only properties that are exempt are those have been built in the last 15 years. So, you may have a property that was exempt from the Richmond local law but is now pulled in through this statewide law.

It’s very much a situation of “if this, then that.”

You must know AB 1482 but you also need to know your local laws. If you have a portfolio of 100 properties, you’ll need to look at each property individually and determine how the law applies.

Exemptions to AB 1482 There are a few automatic exemptions to AB 1482:

• Commercial properties
• Tourist or hotel accommodations
• Hospitals
• Religious facilities
• Extended care or residential care facilities
• Dorms owned and operated by colleges or schools
• Deed restricted low or moderate income and affordable housing
• Housing already subject to stricter rent control laws.

These properties are automatically, by statute, excluded from AB 1482.

If any of your properties fall under those categories, set them aside. But, these are probably not what you manage.

Next in the exclusion algorithm is the age of your property.

The law is written with an expiration date of 2030, so it’s only going to last 10 years. There were some concerns that no one would build in California with this law hanging around. So, the bill includes an exclusion for the first 15 years of a property’s life.

The rent control law does not apply to any residence that was constructed in the last 15 years. It doesn’t matter what type of property it is or who owns it. Buildings younger than 15 are exempt.

Costa Hawkins said rent control only applies to buildings constructed before 1995. But now, AB 1482 says it applies to buildings older than 15 years, and the exclusion has a rolling date. The problems get complicated when owners cannot establish what their property’s starting date is.

According to the law, it depends on the date the initial certificate of occupancy was registered. You’ll have to pull the assessment and find out when your property was granted the certificate of occupancy. This will tell you if and when you’re subject to the rent control in AB 1482.

If you own a property that was built in 2010, it’s exempt now, but it won’t be in 2025.

Exemption Examples for the California Tenant Protection Act Writing contracts will only get more complicated, and when we run into situations that aren’t clear, those questions are going to be answered by litigation.

Let’s presume your property has been around for more than 15 years. The next question in the exemption algorithm is this: is your property a single-family home or a multi-family property? Condos are treated as single-family.

If you have a single-family property, the next question is – who owns it? If it’s owned by a REIT or a corporation or an LLC in which one of the members is a corporation, the rent control law will apply to you. If you’re an independent landlord or an individual or even a family trust, then your single-family property is exempt.

Why would that matter?

Well, when the market collapsed in 2008, giant companies like Homes for America and Blue Mountain and other large corporations swept through California and bought up a lot of single-family homes for pennies on the dollar. These investment firms now own a lot of rental real estate, and they’re making big money. So, AB 1482 was written to say that those corporations and investment firms don’t get the benefit of exemption.

But, individual landlords renting out a property can benefit from the single-family home exemption.

If you’re not renting out a single-family residence, your next question is – does the owner reside in one of the units in a duplex or a multi-family property? If the answer is yes, that property is also exempt from AB 1482. This applies to duplexes and main homes with another unit in the back.

Everything that remains is non-exempt.

AB1482 Rent Control Exemption Questions: Navigating through the intricate exemption guidelines can be a lot of work. To help you with this process, Keith created the questionnaire below that should make this more manageable.

1.) Is your property classified as a long-term residential (domicile) rental?

Examples of properties that do NOT classify as domiciles: commercial property; transient and tourist hotel rooms; hospitals; religious facilities; care homes; college or boarding school dormitories.

If answer to #1 is “no,” the unit is exempt by statute.

If YES, continue to question 2.

2.) Has it been significantly LESS THAN fifteen years since the first “certificate of occupancy” was granted for the building, no matter how many units it may include or how ownership is held?

If answer to #2 is “yes”, property is statutorily exempt ONLY through the fifteenth anniversary of certificate of occupancy.

If answer is “no,” continue to question 3. (See NOTE below.)

3.) Is the building a single-family residence or a condominium (“separately alienable unit”)?

NOTE: The property is identified as a duplex, whether it’s a single-family residence (SFR) with an in-law, two separate units of somewhat similar size, or an SFR with an Accessory Dwelling Unit (ADU) or junior ADU on premises.

If answer to #3 is “yes,” continue to question 4.

If “no,” continue to question 5.

4.) Is the single-family residence or condo owned by a corporation, an REIT, or an LLC where one or more members of the LLC is a corporation?

If answer to #4 is “yes,” PROPERTY IS NOT EXEMPT.

If answer is “no,” continue to ADVISORY below.

5.) Does the property have three (3) or more residential units on one parcel?

If answer to #5 is “yes,” PROPERTY IS NOT EXEMPT.

If answer is “no, continue to question 6.

6.) Does legal owner maintain one of the two units as their primary residence, did they do so at the commencement of the other unit’s tenancy, and does the owner maintain their primary residence at this location throughout the entirety of tenant’s residency?

NOTE: The property is identified as a duplex, whether it’s an SFR with an in-law, two separate units of somewhat similar size, or an SFR with an ADU or junior ADU on premises.

If answer to ANY of these questions is “no,” PROPERTY IS NOT EXEMPT.

If answer is yes, continue to ADVISORY below.

Specific Lease Agreement Verbiage Protects Your Exemption Did you know that you can lose your exemption? Yes, you read that right.

According to AB 1482, properties that are exempt must be identified as such. You must notify your resident. If you have someone new moving in, put that exemption in the new lease. If you have an existing resident, the law indicates the exact verbiage you need to provide, and it gets so specific that it instructs you to use 12-point font in the notice.

Required Disclosure for AB 1482 Exempt Properties: ADVISORY: Even for properties that are nominally exempt, the Housing Provider can LOSE that exemption by lack of action. To protect exemption, Lessor must provide to Residents the following written disclosure, in no less than 12-point type:

“This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (d)(5) and 1946.2 (e)(8) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

All new EXEMPT rental contracts and renewals occurring on or after July 1, 2020 MUST include this disclosure. For tenancies existent BEFORE July 1, 2020, this disclosure must be provided as a written addendum no later than August 1, 2020.

IMPORTANT NOTE: Question #2 above asks whether certificate of occupancy was “significantly less” than fifteen years. This is likely to be an immediate issue for properties constructed in the mid-2000s. Nominally, the age-related exemption ceases AS OF THE EXACT ANNIVERSARY of the date of permit sign off.

Accordingly, Housing Providers will need to be able to obtain that information, even if it’s not presently easily available. City Building and Permit Departments will likely need to make this information available with a reasonable degree of accuracy. During the first 14 years or so, the “non-exempt” disclosure is not applicable – but potentially, neither is the EXEMPT notice itself, since the very last portion of the disclosure MIGHT NOT BE ACCURATE: “the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

Once your property reaches the fifteen year mark – or anywhere close to it – restart the questionnaire at #3 above.

How to Keep Your AB 1482 Exemption To stay exempt, you have to put the exemption in your lease.

The tenant has to sign to acknowledge having received it or you can document that it was provided to them. Keith and DeDe’s Rentals handles it the same way they handle the service of a Three Day Notice. They mail it and tape it to the door with a proof of service so everything’s documented.

If you don’t provide this notice, your tenant can come back in eight years and say they never got that disclosure. If you can’t provide proof that you made the disclosure, every rent increase since then can theoretically be scrutinized and limited.

This is the one warning Keith wants to broadcast far and wide. Just because a property is exempt, doesn’t mean no action is required. Make sure you’re sending out those disclosures, and make sure you can prove you sent them. Also, the owners you work with may not be knowledgeable about this matter, and so it’s important to educate them on what is happening and where their property stands.

Understanding the Look Back Implications Most of us knew this was coming, and some owners might have tried making a large rental increase before the law went into effect.

If an owner increased rent by 30 percent before AB 1482 went into effect, there’s a “look back” provision that requires the owner to comply.

The look back is March 15, 2019. If you increased rent by more than what the law currently allows on or after March 15, you need to dial back the increase so that it’s in compliance with current rent control law. You don’t have to give the money back, but you do have to reduce the increase to the allowable levels.

Do not let your owners ignore this.

Be honest and ethical and let them know that if they try to ignore any part of this law, their lives are only going to become more difficult.

Align yourself with the NARPM code of ethics and standards of professionalism. These standards are pretty clear about being ruthless with clients and owners who misbehave.

What AB 1482 Means for Other States Owners and property managers in Georgia and New Jersey and Kansas are watching California carefully and getting nervous about what’s possible in their own markets. California is not unique. Big tenant protections are in place or moving towards law in states like Washington, Oregon, Colorado, and even Florida.

Some states have constitutions that emphatically void any type of rent control laws. In 23 states, rent control is unconstitutional. So owners in those states are feeling pretty relieved. But, what we do in California often trickles outward to the rest of the country. There’s a lot of dialogue in other states and tenant advocacy groups have been more and more energized. Even in states where rent control is voided, advocacy groups are examining what they can do to make renting out a home harder for landlords and easier for tenants.

These regulations are bad for owners and ultimately bad for tenants. In 2019, the average rental increase in California was 3 percent. Now, it will be 8 percent when you include CPI. So, tenants will pay the price for bad laws as much as landlords.

The one shining light here is that this makes rental property owners less capable of managing their own homes. A good property management company can really stand out as an important ally and a necessary service.

What You Can Do To Affect Rent Control Laws It’s a good time to remind property managers that you have to get involved. These laws happen at a state, county, and city level. The California Apartment Association is very active politically. Make sure you’re a member. At NARPM, there’s a lot of talk about how to be politically active and energized and motivated to be able to influence the decisions that are being made locally and on a state level.

NARPM is good at many things, but as fee-based single-family residence property managers, you have unique priorities and constituencies. You’ll need to be much more politically active within NARPM to be able to create the influence you need.

One of the challenges of being a property manager is that it can feel very lonely.

But, there’s a whole tribe of property managers out there who understand the frustrations and the challenges of dealing with these complex situations. The industry is stronger when property managers are reaching out to one another.

This has been a very basic summary of AB 1482, and you can expect us to do a deeper dive in the future with Keith. We have a lot more to talk about.

As Keith mentioned at the start of our discussion, he is not an attorney. These are complicated issues we are dealing with, so he strongly advises that property managers reach out to lawyers who specialize in Landlord-Tenant Law. He says that if Prop 10 2.0 comes to pass next November, it will only get worse.

As a final note, Keith says, “Whenever you have the opportunity to do so, VOTE. And tell your owner-clients to do the same.”

While you wait for our deeper dive into this topic with Keith, check out some of his own videos on AB 1482:

• Property Age Exemptions
• Rent Caps and Vacancy Decontrol
• Single Family Home Exemptions
• No Fault Just Cause Notices & Tenant

The Property Management Show is brought to you by Fourandhalf. We help property managers strategize and implement marketing plans that bring in owner leads. Get a free marketing diagnostic to find out what you need to supercharge your marketing and unlock your company’s growth potential.

The post An Overview of AB 1482 with Guest Keith Becker appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

How familiar are you with Google’s 2020 updates?

Not too long ago, Google announced some big changes to its algorithm. If you’re wondering what these changes mean for your property management marketing, we have some good information for you today.

Google’s 2020 Updates It’s no surprise that Google updates its algorithm from time to time.

In fact, they update the algorithm multiple times a year. They do this to continue staying one step ahead of bad actors out there in the digital space and because they want to continuously improve the way they deliver search results to users like you and me.

Most of the time, Google doesn’t announce the updates that they make, but if they’re big enough, they will let us know what’s coming.

Bidirectional Encoder Representations from Transformers – or, BERT One of the updates was announced and in October or 2019, it was implemented. This has been called BERT, which is an acronym for bidirectional encoder representations from transformers.

In plain English, this is basically a way for Google to better understand the context of search queries rather than simply absorbing the keywords.

When Google first announced BERT, they said it was the biggest change in the last five years. It will affect one in 10 searches.

Before BERT was implemented, the search engine had a hard time understanding context clues and prepositions like at, with, and for. These are words that actually change the meaning of sentences for humans. When BERT was created and launched, it made the search algorithm understand the word relationships and allow them to do more than look at keywords. Now, the search function can read a sentence as a whole and provide better search results.

What Google Saw Before BERT:

What Google Sees After BERT:

The purpose of this is to help Google understand the intent of the searcher without taking only the keyword at face value.

Neural Matching for Google Local Search Results A month after rolling out BERT, Google announced that it would roll out neural matching for Google local search results. Think of neural matching as a super synonym system. It’s meant to help Google connect words to concepts better.

What does this mean in real life?

Before this update, there were some cases where a business might have an unfair advantage in local Google search because they happened to have keywords in their business name. That severely impacted the types of results that users would get because of the system flaw. Now that Google has made it easier for the algorithm to understand the concept being searched rather than a specific keyword, it can deliver search results that are most relevant to the search query instead of matching keyword to keyword.

Google can now do a better job of going beyond the literal name and actual words in a description of a Google My Business page when looking at whether or not to rank it for a certain search term.

January 2020 Core Update The latest update from Google just happened a couple weeks ago, and they are calling it the January 2020 Core Update. When they update the core algorithm, it means worldwide for all searches. They don’t really give a lot of information about what they changed, but it’s very likely related to the first two updates that were mentioned earlier.

How Property Managers Should Respond to These Changes So, what do property managers have to do after hearing about these updates?

Google has said to anticipate it taking a few weeks for the “dust to settle,” so to speak. Some volatility in search rankings is normal. The important thing to remember is to be cautious when making changes – you don’t want to fall into the trap of fixing the wrong things.

Google has repeatedly mentioned the way to success, in light of all the changes, is to focus on the basics. We have an upcoming blog series on Google marketing fundamentals that will help you do just that, so stay tuned!

If you’re an existing client of Fourandhalf and you are unsure about how these new changes will affect you, let’s take a look at where you stand. If you do not have anyone taking care of this for you, contact us at Fourandhalf with any questions you may have. We’d be happy to help you set up a superior marketing strategy with Google’s 2020 updates in mind.

The post How Will The Latest Google Updates Affect Property Management Marketing? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Our topic on The Property Management Show podcast today is something that’s really interesting, especially if you own a property management company. Today, we’re diving into property management market trends.

The guest who’s joining us is Jeff Hacker, owner of Bayside Property Management. He’s finding that a lot of the investors he works with are feeling priced out of the market in California’s Bay Area, and that’s only one of the property management market trends we’re going to talk about on today’s show.

Jeff Hacker and Property Management Market Trends He’s Noticed Bayside Property Management has been in the Bay Area for more than 30 years, and Jeff has been at the helm for the last 15 years. He works with a lot of small investors who are feeling priced out of the local market, so he’s been helping them invest in other markets. Consulting with local investors who don’t have the budget to invest in San Francisco and the surrounding markets has given him some keen insight into what’s going on in the property management industry all over the country.

Defining the Three Market Tiers Jeff’s work is taking him through three different levels of property management markets, which we’re identifying as primary markets, secondary markets, and tertiary markets.

How are those defined? Primary markets are also called ‘gateway markets’, and after those, we have secondary and tertiary markets to buy property. Most people define these markets on population numbers, but that isn’t always the best way to do it. Usually, a primary market has at least five or six million people and then secondary markets have between a million and five million residents, and tertiary markets have fewer than one million people living there.

But from an investment point of view, there are more important factors than population numbers. Jeff suggests that you look at other things. Investors may care less about population and more about:

• Job growth
• Economic strength
• Whether there’s a university or professional sports teams
• Airports
• Access to shopping, restaurants, and culture

You’ll want to know what kinds of real estate transactions happened over last 10 or 12 years. Research the volume, sales numbers, and what’s going on with the cap rate. All of this plays into how you define each market and decide whether it’s a viable place to invest.

Bakersfield, California is a good example. If you’re looking simply at population, it might not seem like a great place to invest. But, the indicators listed above will show you that even though it’s a small market, Bakersfield is a good spot right now for real estate.

Reno is another good example. Tesla is there now and a lot of people are moving out of California and into Nevada areas like Reno, Henderson, and even parts of Las Vegas to enjoy better tax rates.

PM Grow Summit Sponsorship

Property Management Market Trends: Shifting Demographics The biggest change has been in population demographics.

Fifteen years ago, the number of college-educated renters was small. They tended to buy homes. But, when the recession hit in 2008 to 2010, there was a real shift in home ownership. People became disillusioned with owning property, and there was suddenly a fast growing segment of renters who had college educations. They are largely still in the market, and they tend to prefer urban and suburban environments, where they can find single-family homes in quiet and safe family neighborhoods.

Single-family homes made up about 30 percent of the market 10 or 15 years ago, and now they make up 35 percent of the market, and that number is rising.

Other demographics have changed. The Gen-Z renters we’re working with were born in 1997, or they’re a bit younger. The millennial age group covers people born from 1980 to 1997, and Gen-X tenants were born from 1965 to 1980. Finally, we have a large population of Baby Boomer tenants. They were once homeowners, but now they’re renters. They are downsizing and giving up their homes to move into urban areas with walkable neighborhoods. These renters are looking for amenities and access to healthcare and shopping and theaters.

Boomers no longer want the hassle of homeownership. They are simplifying their lives and if they’re not in urban areas, they want suburban areas and planned communities. Retirement communities are growing in popularity.

Younger generations are tech-friendly and they want everything to be electronic, automated, and online. The Gen-Z and Millennial tenants you rent to will expect WiFi in their homes, and they’ll want to sign everything electronically and communicate with texts. They are hoping to build credit and establish themselves in a rental property. They’re also more laid back and casual.

New Challenges in the Property Management Industry The challenges are significant.

Jeff identifies the three biggest challenges for property management companies as:

• Tenant retention
• Portfolio loss
• Affordability

Tenant Retention Tenant retention is significant for property managers. You want to retain good tenants, and that was fairly easy over the last 10 years, when occupancy rates were high. They were at 50 or 60 percent pretty consistently, but we’re expecting the occupancy rate to fall to 40 percent over the next few years.

To retain modern tenants, property managers need to be responsive and empathetic.

Tenants want to know they’ve been heard and that their needs have been taken into consideration.

Tenant retention is also related to job growth. With tenants getting new jobs and moving closer to work, retention will be difficult.

Portfolio Loss Portfolio loss is another huge and recent challenge. A lot of larger institutions and well-funded investors are buying up a lot of the available rental property. Most of these companies have their own management staff, so when a property or a building is purchased, the property manager who was managing the asset will not be managing any longer.

The boom in technology has helped property managers, but it’s also helping landlords manage their own homes. They can use a lot of the available platforms to manage their properties without the headaches they had in the past. Property managers may be losing doors because of this trend.

Affordability Finally, the challenge of affordability is hard to overcome. Jeff has seen a lot of investors in the Bay Area selling their single-family homes and putting their money into smaller markets where there’s a higher yield.

This is one of the reasons there’s an increase in renters. Homeownership is dropping off in a lot of markets because even though rents are high, it’s still more affordable than buying a home. This is especially true in primary markets like San Francisco, Boston, New York, Los Angeles, and Chicago. Tenants are paying more than 30 percent of their income for rent, and there’s an increase in roommate situations. Property managers must prepare for this trend.

Technology Trends Change the Marketplace While a lot of tenant retention is faltering because tenants are moving for jobs, you also have renters who don’t have to move because they’re working remotely. Someone can work for a company that’s based in San Francisco, but live in a more affordable and more remote community because they work from home. The internet is reliable, and software has kept up with demand. Cloud computing and video conferencing make everything possible.

Technology also helps investors search for secondary or tertiary markets when the primary markets seem out of reach. People are comfortable buying property they’ve never laid eyes on because with a good partner in the local market, they can see photos and read inspection reports.

People can live where they want. Millennials who want to live in New York or San Francisco can do so by renting their home there. Then, they can buy in other markets like Portland or Austin or Omaha if they want to start building wealth with real estate investments.

Indianapolis, for example, has properties for less than $150,000. The city has a great airport, a good economy, and a professional sports team. It’s an excellent investment idea.

The Changing Market: Then vs. Now People think of real estate in a different way now than 10 or 15 years ago. The American dream has changed. A house with a white picket fence was once the dream, but now, people want to pursue their passions. This has led to specific changes around how people approach the markets.

Everyone now has the opportunity to live where they want to live. Most people are comfortable renting as long as they’re in the city or the town where they want to be.

In primary markets, Baby Boomers are looking to exchange their homes for convenience. They are usually more affluent than other generations, so they’re living in high priced rentals in larger markets with every amenity. They want to be close to airports and museums and restaurants.

In secondary markets, younger generations are looking for good neighborhoods. They still want convenience and shopping and restaurants, but they have less to spend than the Boomer generation.

Economics are changing in every market. Previously, most businesses and companies tended to congregate in big metro areas. Now, businesses are moving out of large cities for many reasons. Markets like Sacramento are getting large companies because they offer lower rents and a business can find better office space for less money. There’s also a large population of qualified labor in secondary markets. There’s a large demand for good workers in San Francisco, but how many of those good workers can afford to live there? Companies are moving to the cities where there’s more affordable housing and a higher quality of life. It helps them retain workers.

Dallas and Austin are now just as big as Silicon Valley when it comes to tech companies.

How to Approach the Real Estate and Property Management Markets With all these changes, how can your property management company keep pace?

Jeff has a few ways to address that.

First, develop strong relationships with owners and tenants. You want to know what their needs are. Then, you want to address those needs. When you’re constantly communicating with your owners and your tenants, you can keep a pulse on what’s happening.

Stay up to date with market and industry trends. Plenty of publications offer subscriptions and you should be working with groups like NARPM and IREM to stay up to date.

Go to conferences. Find out what kind of events your local NARPM group is holding. Go to growth summits like PM Grow.

All of these things will help you know your marketplace.

Empower Your Team and Share Responsibility Don’t forget that you can’t move your property management company through these changing trends on your own. You need the support and the expertise of your team.

Jeff holds monthly staff meetings with his team, where they discuss changes and assign responsibilities. If a new issue comes up, one team member is assigned to research it and share their findings. This allows people to become experts in specific areas, and thus resources for the rest of the company.

Everything is always changing. Jeff’s best advice for keeping up with this is to be empathy-driven and technology-enabled.

If you have any additional questions about property management market trends, contact us at Fourandhalf. We’d love to discuss the changing trends in property management and how a good marketing plan can help you keep up.

The post Property Management Market Trends with Jeff Hacker appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

We got a great response from our last Fourandhalf blog, when Michael talked about maximizing your data and avoiding data paralysis when evaluating your property management marketing performance.

You asked us to dig a little deeper, and here we are – ready to talk about how our continuous improvement reviews help you learn more about what’s working and what isn’t.

What Does Continuous Improvement Mean? We can’t take credit for the term “continuous improvement.” Fourandhalf did not come up with that term. It’s actually famous thanks to Imai’s 1986 book “Kaizen: The Key to Japan’s Competitive Success”. Kai means change and Zen means for the better.

We love this model because it relates directly to the process we use to help your property management company do better business:

• Listen – We want to hear what you have to say. Who do you want to service? What are you goals? What’s your story?
• Collaborate – Then, we take that information, and together we build the strategy for your marketing campaigns.
• Deliver – Next, we implement that strategy.
• Measure – After 90 days, we take a close look at the data collected from your marketing campaign.
• Improve – Finally, we share that data with you, and together, we make decisions about what your next marketing strategy should look like.

Our continuous improvement process is what drives all the work we do for our clients, whether we’re focused on growing your property management company or helping you understand the digital marketing tools available to you.

Data Analysis and Improving Property Management Marketing Performance As Michael told you in our last blog, all of our programs and campaigns and evaluation tools start with you. We can’t help you succeed until we listen to your goals, look at your performance over the previous quarter, review what we discussed previously, and pull the data that tells us whether we’re helping you reach your goals for the future.

Once we’ve had our conversation and discussed where you are and where you’re going, we have our data analysis team gather the information we need to improve. We measure this against our own baseline data. At Fourandhalf, we specialize in creating successful property management websites, and over the years we have meticulously studied, adapted, and implemented everything we’ve learned about what’s most important and what drives results. We make decisions based on this data and how it reflects the goals and growth of your property management company.

Reviewing Our Performance Finally, we schedule a meeting so we can go over your performance together. We know we could simply hand over the data and let you do whatever you want with it. But, we believe you get more value when we make this a collaborative experience that allows you to share your thoughts on how you feel about working with us. We want to know what you think about the marketing results we’re achieving for you and how our marketing plans are performing against your expectations.

We are here to listen, and we use data to drive our recommendations moving forward.

Then, we get to the best part – based on what we know, we discuss the action items moving forward.

At Fourandhalf, our continuous improvement review is pretty simple. We look at your business, evaluate it, and decide where to improve it.

Try implementing continuous improvement reports into your marketing strategy. Or, if you have any questions about this process, or anything that concerns marketing your property management company, please contact us at Fourandhalf. Otherwise, we look forward to seeing you at our next continuous improvement meeting.

The post What Continuous Improvement Means For Property Management Marketing appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Risk management isn’t a sexy topic, but it’s something that you need to think about as the owner of a property management company. Making mistakes while managing – or not managing – your risk will keep you up at night. It could also result in lawsuits, huge fines, and even the loss of your business.

We asked Kathleen Richards of PM Made Easy and The Property Management Coach to talk through this topic with us.

If you haven’t thought about risk management before, this information is for you.

If risk management has been in your back burner for a while, this information is also for you.

Introducing Kathleen Richards Most of you probably know Kathleen, but we asked her for an update on what she’s doing now.

Kathleen sold her property management company in 2017, and before doing that she became a certified business coach. She launched Property Management Coach and then bought LandlordSource, which has recently been re-branded and newly launched at PM Made Easy. She helps property management business owners figure out what they need, and one of the things they always need is risk management.

What Does Risk Management Mean for Property Managers? Risk management means covering all your bases. The property management industry is very litigious. So, you need to manage the risk that’s present in the properties you’re managing, and you also need to manage your own risk as a business owner.

As a property manager, you have risks associated with accounting, hiring employees, and how you do business. Mitigating as much risk as possible is crucial to the success of your property management business.

Common Property Management Risks 1. Regulatory Compliance Would you believe that some property managers start a business in states where licensure is required, without being licensed?

Often, they don’t even know that they need the license.

So, your first risk could be this simple. Do you need to be licensed as a property manager in the state you’re in? Find out, and if necessary, get licensed. Moreover, make sure you read up on the laws and regulations related to property management in your area. Each state can have different rules, and these regional or state specific rules are subject to change by the regulatory bodies. So make sure you are always up to date with new laws and any changes.

2. Risks associated with owners, tenants, and vendors You have to screen owners as carefully as you screen tenants. Working with bad owners is a huge risk. You don’t want to work with owners who don’t care about their own risk, because that only increases your risk. Perhaps a new owner who wants to work with your company has a vendor who they’ve been working with for years. But, the vendor isn’t licensed or insured. You shouldn’t use that vendor, no matter how confident your new owner is in the work. It introduces too much risk.

Kathleen was once an expert witness in a court case where a tenant asked an owner if the tenant’s friend could trim some trees on the property. The owner agreed and the tenant’s friend fell off the ladder, shattering a hip. That friend had no insurance and sued the owner. The property owner absolutely should have known better than to let that tenant’s friend climb on a ladder while at the property. This was a huge and unnecessary risk that cost the owner a lot more than it would have cost him to hire a professional company.

Another example from Kathleen’s personal experience involves marijuana. It’s legal in California but it’s not legal federally. So, when she discovered a tenant was growing marijuana, she discussed the risks involved with the property owner. The property owner didn’t really care, but Kathleen didn’t want to take on the risk of what could happen with drugs – even legal drugs – growing in the back of the property. The tenant had kids living in the property as well, and Kathleen could not live with herself if anything happened to those kids because of the drugs being grown in the property. So, she ended her contract with that owner and invited him to manage the property himself.

There are a lot of risks associated with your owners and your tenants and your vendors. You have to think about the potential consequences and weigh the risk.

3. Fair Housing Risks In property management, the risk of violating fair housing laws is always present. Your employees need to understand every detail of the fair housing laws. Make sure they read policies and sign off that they’re understood. Send employees to trainings. Give them reading material. Continually train them on fair housing. From service animals to discrimination, fair housing can be scary. There’s so much that can happen.

Here’s an example. A property management company didn’t have a receptionist; property managers were responsible for answering the phones. A prospect called to ask about the various properties that were available for rent, and the property manager who happened to pick up the phone spent a lot of time discussing the available homes. The phone call ended. That caller was a tester, or an attorney who makes calls like this to try and find property managers who violate fair housing laws. So the tester called back, this time speaking with a foreign accent. A different property manager answered the phone and instead of spending time discussing the properties as the other manager had, directed the caller to check out the available homes on the website.

This resulted in a lawsuit. It doesn’t matter if there was discrimination or not; two presumably different tenants were not treated consistently, and that’s a problem. Now, that management company has a receptionist who handles all incoming tenant phone calls.

Another extreme situation occurred when someone asked a property manager if 10 people could move into a two-bedroom property. The property manager advised that 10 people were too many. She used the guidelines of two people per bedroom plus one extra person. But, a discrimination lawsuit was filed and that property manager lost her business. Not only did she lose her business, she now has this complaint on her record with the Department of Real Estate.

A well-trained staff is required to manage your fair housing risk.

PM Grow Summit Sponsorship

Risk Management Issues You May Not be Thinking About You’re running a business, and many of your biggest risks will be accounting and employees.

1. Internal Risk Management Issue: Accounting If you’re not comfortable with accounting and all the financial risks that are present, hire a good bookkeeper. Get someone who understands property management software. Hire a virtual assistant who can specialize in accounting. Make sure there are checks and balances in place that protect you from things like embezzlement.

2. Internal Risk Management Issue: Employees Employees come with risks, too. Make sure you have a manual of policies and procedures that documents your expectations and the requirements of your company. You can’t have an employee who drinks alcohol while at work because what if that employee is in an accident?

Kathleen knew a real estate agent who did property management for a company that didn’t allow family members, vendors, or employees to rent the homes that the company managed. That makes sense. But, the real estate agent went ahead and rented a home to himself and his family. Then, they stopped paying rent. So, the employer had to evict those tenants and it took two years of court appearances and lawsuits.

Be mindful of the internal risks as well as the external risks.

A Framework for Mitigating Risk in a Property Management Business Step 1: Identify your risks Maybe you’re doing a property assessment and you notice a cracked driveway where it would be easy for a tenant to trip and fall. Or, the plants outside the front windows are so high that it would be easy for a predator to hide there. You’re going to check the property for carbon monoxide detectors and other things that increase or reduce risk. Then, you’ll present these risks to your owner, and let them know what actions they need to take.

Identify the risks in every aspect of your business.

Step 2: Analyze the risks Your next step is to analyze the size and strength of the risk. How often will this risk potentially happen? Maybe you require your owners to carry at least half a million dollars in liability insurance. If you have an owner who refuses to have a policy that large, will you continue to work with the owner? You need to analyze the risk. Or, perhaps an owner won’t want to add you as an additional insured to their policy. Analyze the size of this risk and the severity of what would happen if something went wrong. You need to know how much of a risk you’re working with.

Step 3: Create a plan of action Then, based on your evaluation of the risk, you need a plan of action that will allow you to move forward.

You’ll have to document everything, and you’ll need a process in place to address each risk. Once you have that process in place and everything is documented, review your risk management system and plans. You may need to make adjustments. You may need to add processes. Update and renew your risk management system constantly. It has to be current.

Assess and balance the risk. Remember what’s at stake: fines are severe and you can lose your business.

Risk Management Blind Spots and Accountability for Property Management Companies Small property management companies have a lot of operational risks to deal with. There is an urgency to set up the accounting and employment systems properly to protect themselves. Larger companies with 1,000 doors or more, or companies that have been around for a long time have different challenges when it comes to risk management. They can become complacent. If they’ve done something a certain way for 10 years and nothing bad has happened, they’ll have a hard time seeing why they should change things.

But, if you’re using a lease from 10 years ago, there might be terminology in there that’s actually illegal today. As your company grows, you start delegating more. Make sure your employees are following the standards you’ve set and the processes that are in place to keep you safe from risk. Audit your risk management systems every year.

Many brokers don’t realize that they’re ultimately responsible for everything happening in the company. They need to be signing off on a lot of forms. If an employee forgets to hand a tenant the lead disclosure booklet, the broker will be the one who answers for that mistake. You need a process. You need a checklist. You need to check everything off that list.

This is a blind spot for big companies. Make sure everyone follows your policies and procedures and protections.

If you’re a corporation, make sure you’re doing your minutes and reporting them with your taxes. Don’t open yourself up to additional risk. Your property management company is a business, so act like a business.

Large companies have entire departments dedicated to risk management. You may not have those resources, but you can take the risk management process just as seriously. Increase your insurance products. Buy cyber security insurance. Take out a bond on your bookkeeper so all your cash balances are covered. Get a rider on your E&O insurance that covers fair housing. Increase your insurance for vehicles or buildings.

It’s a cost. But, you have to protect yourself.

Waiting until something goes wrong is stressful and expensive. In property management, 99 percent of what we do is fully anticipated. You know you’ll collect rent every month. You know you’ll have to perform maintenance on your property. You know there’s a potential for people to get hurt there.

Anticipate the risk and put processes in place that define how the situations are to be handled. Think about first responders who go charging into burning buildings. They do it calmly and professionally. Why? Because they practice these situations all the time. They have a Plan A and a Plan B and a Plan C. If something happens, they have a process.

This is risk management.

Don’t lose sleep and don’t find yourself in reaction mode. It’s easier to invest your time and energy on the front end.

The key takeaways you can do right now:

• Prepare yourself.
• Do a complete risk management audit.
• Be curious and ask questions.
• Think about what a judge would say in every situation you find yourself.

Thanks to Kathleen and to our listeners. If you have any questions about what you’ve heard about property management risk on our podcast this week, contact us at Fourandhalf. We can put you in touch with Kathleen and help you grow your property management company.

The post Risk Management Mistakes That Keep Property Managers up at Night with Guest Kathleen Richards appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Feeling overwhelmed by property management marketing data analysis? It’s a mouthful.

There are literally hundreds of data analysis reporting tools designed to help you get smarter about your property management business and how it’s performing. All of them say that they will provide you with key information that you need to know right now.

The reality is, they’re probably right, and they probably can get you the information you need.

BUT, if you’re using even half of this tool sweep, the amount of data that you’re swimming in is probably overwhelming. It might be difficult to understand which data elements are the most important points to help you make actionable decisions for your business.

So, the real question is: What data is the most important to you right now when you’re growing your property management business?

At Fourandhalf, we are big believers in using data to understand and drive your business. Having data at your fingertips is great, but really analyzing that data and synthesizing it into something that’s meaningful and actionable can quickly become a nightmare. To help you sift through that large pool of data, we’re offering three rules that will help you find the information that you really need to drive your decision making.

Property Management Marketing Data Analysis: 1. Consider the Outcomes and Intentions Ask yourself what outcome you’re looking for, and think about the specific clients you’re trying to attract.

If you’re trying to be all things to all people, you may find that you’re attracting clients from locations that you’re not interested in serving. As a result, you could find that the benefits of your data collection are going south. Alternatively, once you’ve narrowed down who your “ideal client” is, you can focus on data that provides you information on that specific demographic.

You want to use data that speaks to your performance in exact locations and with specific pools of clients.

2. Identify the Ideal Client’s Pain Points Next you need to determine which pain points you’re hoping to address for the clients you want to attract.

If the clients you’re hoping to bring in are primarily concerned with trust and making sure tenants aren’t going to trash their homes, then you need to focus on the data that speaks to your reputation. How is your website performing on matters that pertain to trust? Are you managing your reviews?

3. Keywords and Search Terms You need to look into what combination of data elements will provide the best information that you want to zone in on.

Look at keywords and search term results.

You want to be aware of where your leads are coming from on your website. If you are performing well for certain keywords, you need to know what page those are being channeled from for website leads. In addition, check your form submission data and how it relates to keywords. This will tell you a lot more than you would learn by simply looking at one or the other. Sometimes, the power and effectiveness of your search terms working together with other factors on your website influence your results.

How Fourandhalf Helps You Analyze Property Management Data Those are three ways of looking at data while sifting through all the information you have. The goal is to make connections. When you can look at the questions you want to answer and not just jump into the sea of data you have in front of you, it’s easier to find meaningful connections.

Put together the questions and the outcomes you are looking for, and then look at the data that will address those outcomes.

Another way to maximize your data and its meaning is by working with someone who knows how to analyze data. At FourandHalf, our account managers put together a continuous improvement report based on the data that tells your story.

Have questions about how this could work for your business? We’d be happy to tell you more, so don’t hesitate to contact us at Fourandhalf.

The post How Property Managers Can Avoid Data Analysis Paralysis appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

2019 Year-End Property Management Blog Outtakes How crazy is it that it’s already the end of the year?

We can’t believe how fast time has flown…which, if the old saying is anything to go by, must mean we’ve been having fun!

As you settle in for the holidays, we wanted to add a little extra cheer by sharing some of our favorite outtakes over the last year. Between PM Grow, The Property Management Show and Fourandhalf, there were some very fun goofs that happened behind the scenes, as we worked hard to create engaging, helpful content that would help you grow your property management business.

Marie almost falls over, Brittany puts on an accent, and our clients ask for a bit of Scotch to help the ol’ filming-a-blog nerves…

We’ve also picked a handful of our favorite blogs and Property Management Show episodes from the last year, and provided those links to you below, just in case you’re itching to get going on your property management growth in 2020!

2019 Blog & Podcast Episode Highlights:

Property Management Banking & Trust Accounts (Explained by a Banker)

Property Management Marketing Ideas to Get the Right Owner Leads

Property Management Bottlenecks to Profitability Series

Property Management Marketing Paid Ads Series

Debunking Privacy Myths for Small to Medium Property Management Companies

Property Management Workflows Series

And now, sit back, relax, and enjoy this blooper reel from a year’s worth of laughter and growth.

We wish the very same to you in the New Year.

Happiest of Holidays, and a Happy New Year!

The post PM Grow, Fourandhalf and Our Clients Walked into a Blog…(Year-End Outtakes!) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

How big is your property management marketing budget?

Whether it’s big or small, wouldn’t it be nice to stretch that budget a little bit?

Today, we want to talk about some creative ways to get more out of the marketing dollars you’re spending to grow your property management company.

Property Management Marketing Budget Tips: Embrace the Reach of Content Marketing One of the best and most creative ways to make your marketing budget work harder is through aggressive content marketing.

If you have already done some educational videos or blogs, then you can use that content to continue attracting new business. Turn those blogs into eBooks or email nurturing campaigns.

Maybe you don’t have any content yet. If that’s the case, then right now is a really good time to get started.

Creating educational content for your property management company is relatively inexpensive, and it brings your company ongoing value even long after it’s published.

Maximize your Credit Card Points Credit cards aren’t just for making big purchases.

Another creative way to stretch your marketing budget is to use your credit card points towards something that will help you grow. Maybe you can utilize those points to buy the filming equipment you’ve been wanting to finally get that content marketing going. With higher-quality content, you’ll have a better chance of driving in more leads.

Look for Great Opportunities with your Bank and Other Vendors Sometimes, there are opportunities with the companies you use every day.

For example, if you’re a client of Seacoast Commerce Bank, did you know that you can use your banking credits to pay for Fourandhalf marketing? That’s basically free marketing just for using a bank – which you have to do, anyway.

If you don’t know what I’m talking about because you aren’t a Seacoast Bank client, be sure you check them out and see if you qualify.

Review Subscriptions and Resources Review all your subscriptions and the tools that you’re paying for.

Are you actually using them? And, are you using them to the fullest?

If not, ask yourself why. Maybe you don’t have the time, and maybe you don’t know how. As a business owner, you need to focus on what works and what doesn’t. If the tools you’re paying for aren’t serving your needs, think about other ways to do things. Maybe it’s time to consider outsourcing your marketing to an agency you can trust. Your time is worth a lot, and as a business owner, you can probably spend it doing things other than marketing your property management business.

Marketing is not something that should happen occasionally. If you want to see results, marketing needs to happen daily throughout the entire year.

Take your Tax Deductions There’s one more thing that we want to remind you about.

Marketing expenses are tax deductible. So, when you increase your marketing budget, you’ll grow your business a little bit more. You’ll also enjoy a tax deduction, which always helps.

Building Your Property Management Marketing Budget? Consider Fourandhalf. Remember that marketing is an ongoing investment, and something that requires a comprehensive, holistic, and professional approach. We’re here to help you create and execute successful property management marketing strategies. If you have any questions, contact us at Fourandhalf.

The post Creative Ways to Get More Out of Your Marketing Budget appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

UPDATE:

As of November 2020, Seacoast Commerce Bank has merged with Enterprise Bank & Trust. Allison DiSarro and her property management banking team from Seacoast remain intact and run the whole property management banking division within Enterprise Bank & Trust. If you would like to learn more about the merger, watch this recent episode of the podcast where we interview Allison DiSarro and Ken Carteron about the merger as well as Property Management vs. HOA Banking: https://fourandhalf.com/hoa-vs-property-management-banking/

Allison DiSarro from Enterprise Bank & Trust (formerly Seacoast Commerce Bank) joins us today on The Property Management Show to discuss property management banking and trust accounts.

Maybe you think you’re fine when it comes to this topic: you’ve done a great job of separating all the funds that need to be separate, and you understand the importance of trust accounts.

The problem, however, is not necessarily in what you don’t know. The problem could be in what your banker doesn’t know.

Allison worries that your trust account might just be a business account that the bank calls a trust account.

If it worries Allison, it should worry you, too.

Introduction to Property Management Banking and Allison DiSarro from Enterprise Bank & Trust Allison started out with Seacoast Commerce Bank over 10 years ago. She worked for a branch in Massachusetts and she noticed a lot of property management accounts coming into the bank where she began as a business development officer. This led to a focus and an expertise on serving property management companies and their unique banking needs.

All banks look for what’s called a “sticky deposit”.

This is money that’s deposited and sticks around. The rents that property managers deposit aren’t sticky; the money moves right back out of the account so owners can be paid. Trust accounts, however, are sticky. The bank holds security deposits and reserve funds. Since property management business was already at Seacoast Commerce Bank and the company’s CEO was dedicated to hiring industry experts for their business banking division, Allison quickly developed an expertise of her own.

She has spent years diving deep into trust accounts to find out what makes them special and how to keep them compliant.

The question she asked herself was: who are we afraid of? Most property managers are afraid of the Department of Real Estate. If you own a property management company, your main concern is likely that you’d pass an audit if the DRE showed up at the doors of your business.

Allison met with auditors and attorneys and became acquainted with FDIC rules and regulations to figure out how to build a division within Seacoast related to property management. She would later on bring this same knowledge and expertise as the head of the property management banking division within Enterprise Bank & Trust (formerly Seacoast Commerce Bank).

Now, she’s here to tell us that the DRE audit isn’t necessarily the biggest threat.

Trust Account Terminology: What are We Really Talking About? A trust account holds other peoples’ money.

The money is held there until a trigger of some kind releases it.

When people hear the term trust account, they probably think about family trusts. You might set one up at the bank for your own family. It puts money away for other people, who are your beneficiaries. When we think about property management trust accounts, the beneficiaries are the property manager’s customers who are actually entitled to the money being held there.

As the owner of a property management company, you can walk into any bank and open up an account. You have to take some steps to make sure you’re having the right account opened. Your business operating account is easy enough. But, for a trust account, you want a bank that understands the property management industry and the needs of businesses within that industry.

The most common mistake in the industry is that bankers aren’t aware of the legal and regulatory complexities involved in a property management trust account. They’re actually opening up a general business account and they’re calling it a trust account. That might be the account’s nickname the same way another business account would have an “operating expenses” nickname or “payroll account” nickname.

So, you’re walking away from the bank thinking you opened a property management trust account, but you really only have a business account that’s called a trust account. There’s no protection, and that’s dangerous.

PM Grow Summit Sponsorship

What to Ask your Business Banker Most bankers aren’t trained on how to open a trust account that’s specific to property management companies. It’s not part of the traditional banker training.

Find out if you have a trust account or if what you think is a trust account is actually just a business account. Put these questions and requests in writing.

• Email your banker with your account number and the name of the account.
• Ask your banker what would happen if the bank went under tomorrow. How much are you insured for?
• If there was a lien put on your accounts from a governing entity or a lawsuit or a judgment, would the trust account have its assets frozen?

If your trust account is only insured for $250,000, and those funds can be frozen if there’s a lien or a lawsuit, you might not actually have a trust account.

These are the most common risks. The money in the trust account doesn’t belong to you. But if you’re sued and those funds are frozen, you’re going to be in a lot of trouble.

Switching banks isn’t as scary as it seems to be. If you are in the position where you have to educate your banker on how to set up a proper trust account for your property management company, you might want to consider finding a new bank. If they’re willing to look into it and learn what they have to do themselves, you can probably safely stay. Otherwise, start looking for a bank that can serve your business better.

You want someone who knows this inside and out.

Trust Accounts and Regulations Almost everyone is afraid of audits.

If you pass an audit, you probably feel like you’re completely covered. But, there are some risks that are worse than an audit.

Liens and lawsuits will be a problem if your account isn’t a true trust account.

You can also find yourself having money taken out of your trust account if it’s not a true trust account. Perhaps your operating account will not have enough funds to cover something, and the bank will take money out of what you think is your trust account to cover the charge. That will create problems.

Funds can be frozen because it’s an account under your tax ID number.

Allison knew someone who had owed back taxes. When they didn’t pay those taxes, the franchise tax court froze the company’s trust accounts. They didn’t put a hold on all the money, but they did freeze a lot of the money. This was a big problem, and it was due to the fact that the account had not been set up properly with the necessary protections.

That property manager was able to rectify the problem, but it was detrimental to the business. Not only are you risking other peoples’ money; you’re risking the loss of your business.

This is more common than a failed audit.

Understanding FDIC Insurance and Your Trust Accounts Another risk to having an improper trust account is a lack of adequate FDIC insurance.

The FDIC insures a tax ID number at the bank. All of your accounts at the bank are set up under one ID number. That ID number is insured up to $250,000. So, if your property management company has accounts with a total value of $1,250,000, the funds beyond $250,000 are essentially lost if that bank collapses.

This is unfortunate in any way that you look at it, but it’s especially dangerous if most of that money isn’t even yours.

If the trust accounts are set up right, each beneficiary in the trust is insured up to $250,000.

But, the account has to be set up correctly. If you have a trust account with a million dollars in it, you want to be sure there are at least four beneficiaries disclosed on the account to have all those funds protected.

This is important and yet so misunderstood. You can’t embrace a false sense of security just because you passed an audit. The audit is not the biggest risk.

State Trust Account Laws In Delaware, there are no legal requirements associated with trust accounts.

That doesn’t mean property management companies have a free pass. It doesn’t matter what your state requires. If the funds you’re holding for your clients aren’t in a bank account that’s been set up properly, the money is not protected.

It doesn’t matter what your state laws say – those laws aren’t the standards against which your trust accounts should be held. You are acting as fiduciary for someone else’s money. You have to protect it.

Audits protect an industry. State and federal laws protect the consumers within that industry. But, you are a responsible business owner and your reputation is on the line. Don’t make the mistake of shrugging off implementing a proper trust account just because you’re passing audits and following the minimum legal standards.

Moving to a New Bank Allison is aware that changing banks seems easy to her; she helps property management companies do it every day.

It’s not as complex as changing your software system. If you’ve decided that you want a bank with a property management specialist who understands the industry, make your plans to move.

First, you’ll collect a proposal from the bank you might decide to work with.

Then, you and your banker will come up with a timeline.

The timeline is important, and you don’t want to rush. It has to follow the rent cycle, and again – working with a bank that specializes in property management will help you ensure that everything will move over in time for rent to be collected and owners to be paid.

Decide on the day that everything will transition, and then work backwards. Your bank will provide documentation and signature cards and set up the accounts. Most of the work will be with them. You’ll need to communicate with your software company and make sure everything on that end transitions smoothly for accounting purposes.

Your switch to the right bank needs a timeline. A bank shouldn’t just hand over your new account number and that’s it.

You do very specific things on very specific days. You don’t want to transition from one bank to another, alone. You need someone who knows all this.

Most of the new property management customers at Enterprise Bank & Trust (formerly Seacoast Commerce Bank) are grateful for the smooth transition that Allison manages from their old bank to their new bank.

Analysis Banking and Credits Since Allison is here to talk about trust accounts and compliance, we also asked her to discuss another benefit to property management companies, and that’s analysis banking. If you’ve never heard of analysis banking, it’s possibly because most banks don’t promote it very much. At Enterprise Bank & Trust (formerly Seacoast Commerce Bank), however, it works really well for their property management clients.

With analysis banking, a company earns a number of credits based on the amount of money they have in all their accounts at the bank.

This already puts property management companies at an advantage because with trust accounts, they have a high monthly average.

Interest rates are often calculated based on the amount of money you have. So, in a traditional bank account you might earn one percent interest off your million dollars that’s in all your accounts. These credits are calculated the same way. The amount in your accounts dictates the number of credits you have.

At specialty banks like Enterprise Bank & Trust (formerly Seacoast Commerce Bank), those credits are used to pay bank fees first.

If you’re currently banking with a financial institution that offers free small business banking, you might bristle at the idea of paying bank fees. If you love your bank and your business checking account is free and they don’t offer analysis banking, you should stay where you are.

But, with analysis banking, your fees are quickly offset. You can earn more with analysis banking than you would with free banking.

After your bank fees are paid with your credits, you can use the remaining credits to pay a third-party invoice. That might be an invoice from your CPA or your software company. It may even be your Fourandhalf marketing invoice.

There are a lot of reasons why your property management bank cannot and should not pay interest. Instead of interest, you’re getting credits through analysis banking, and some of your bills are being paid.

Almost every state allows analysis banking, and in California you simply have to disclose that you’re doing it. Allison works closely with property managers and the DRE to ensure the program is compliant and the disclosures are transparent.

As you think about your property management banking, be vigilant with your trust accounts. Get educated, and take this more seriously regardless of your state laws and your audit scores.

If you have specific questions about property management trust accounts and the benefits of working with a bank that specializes in your industry, contact Allison DiSarro (adisarro@enterprisebank.com).

Remember to subscribe to our newsletter so you don’t miss our latest blogs and podcasts: https://fourandhalf.com/subscribe/.

The post Property Management Banking and Trust Accounts (Explained by a Banker) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Before we could get John’s recent blog about property management websites posted, we were reminded of a question that our clients ask us all the time: what’s with those weird emails from random companies about SEO? Are these property management SEO spam emails? Or are they legit?

You may have noticed that these emails that tell you your website is not ranking for important keywords. They’ll ask you to call them for help.

A lot of people ask us if these are spam emails, and the answer is yes – they are absolutely spam.

The companies trying to get your attention have not done a lot of research on your company and your website, and they actually have no idea if you’re ranking or if you really do need help.

What to Know About Property Management SEO Spam Emails: Predatory SEO Companies are Risky How do we know these are spam emails?

Because John gets them too. And John’s not the only one getting them; everyone here at Fourandhalf gets these emails.

These spam emails are coming from black hat or shady SEO companies that are trying to prey on the lack of knowledge that a lot of companies have when it comes to how you successfully rank in online searches.

This is a shame because we have seen some of our clients use these companies. Initially, they get a quick SEO hit out of it. But, the end result is not good. Every time, Google either figures out what they’re trying to do, or a change is made to the algorithms and the company gets penalized for it in the long term.

It’s more expensive and time-consuming to get yourself out of this kind of trouble than it is to get into trouble in the first place.

SEO Best Practices are Always Evolving It hurts, when you get these emails that say you’re missing keywords and not ranking as well as you could be. But the truth is – everyone has missing keywords that can help them rank better.

John runs a digital marketing company, and even we have keywords that aren’t being utilized in the best ways. Why? Because things are always changing when it comes to SEO and online marketing.

This is why we take the time at Fourandhalf to do the ongoing maintenance and improvement of your website. Our program helps our clients keep up with these changes and make smart decisions about keywords and marketing strategy.

Generally, these spam emails will promise that you’ll rank in the top spot for a specific keyword. They’ll always choose some keyword that’s easy and useless to prove their point. They might even choose your property management company name as the keyword. Yes, you should be ranking for that, but it’s not the most important thing your marketing efforts should focus on.

There are ways to improve your SEO, keywords, and search ranking without doing shady things.

Adding Value to Your Website and Content Instead, look for a reliable, long-term marketing program that won’t require a devastating recovery process. True SEO success is built on adding value to your website and your brand on an ongoing basis. You need to approach this by utilizing a number of different fronts over the course of many years. Good SEO is an investment. There is no quick fix for this, and there are especially no solutions to be found through some company that randomly reaches out to you.

So, if you get those emails, feel free to do what John does: Read them. Laugh at them. Trash them.

If you have any questions about this, please contact us at Fourandhalf.

The post SEO Spam Emails: What Property Managers Should Look For appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Happy Thanksgiving! Today, Marie and Brittany are taking a break from the podcast this week to observe the holiday. Happy Thanksgiving, everyone!

Catch Up On Our Recent Podcast Episodes: If you’re not all caught up with our podcast, you can use this time to catch up! For example, have you checked out:

How 1031 Exchanges Can Grow a Property Management Business (even if you don’t do real estate sales!)

Our Bottlenecks to Profitability Series, including:

• Getting stuck in Maintenance Limbo
• Solving your Leaky Sales Funnel
• The problem with Poor Accounting, and
• What happens when you’re Focusing on the Wrong Activities

If not, throw that turkey in the oven, put on some headphones and press play!

In the meantime, we wanted to take a moment to thank all of our Fourandhalf clients and podcast listeners for a truly incredible year. Thank you so much for being such phenomenal people to work with, and for all your amazing contributions to the property management industry. We are so grateful, in fact, that we thought we’d say it in as many ways as we could think of:

Salamat! (Tagalog)

Spasiba! (Russian)

Danke Shoen! (German)

Gracias! (Spanish)

THANK YOU!

And have a very happy Thanksgiving, from all of us at Fourandhalf.

The post Happy Thanksgiving! From All of Us at Fourandhalf appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

When you think about building a website for property management, what do you want it to accomplish? And once it’s up and running, how do you tell if it’s doing its job?

Your property management website works for you, so it’s reasonable to take a moment and think about it as being an employee of your company.

If your website was an employee, would you fire it?

This isn’t as crazy as it sounds.

Processes and Tasks in a Property Management Company

Your property management company could be described as a collection of processes that need to get done. Those processes are made up of tasks, and those tasks are handled by roles.

Those roles are filled by classic job descriptions, and it’s possible that they’re not just employees, but also a vendor or an outside organization or a computer program. A role can be filled by a website, too.

A website does jobs that are easily done by people, but they operate online.

Building a Website for Property Management: Your Website’s Job Description Let’s track that website back to the specific jobs that it has to do. What jobs would those be?

• Your website needs to be a Receptionist. You want to greet people efficiently and pleasantly and get them to where they are going.
• Your website needs to provide Sales Support. It should help your sales people close business.
• Your website is responsible for Marketing. It helps you bring the right people into the company.
• Your website is even a Leasing Agent. The vacancy page could be thought of as doing the work of an actual leasing agent.

So, if your website is responsible for these tasks, then how do you judge that the website is doing its job?

Establishing Website Key Performance Indicators (KPIs) You can evaluate the website’s work in the same way you judge an employee. You use KPIs.

For instance, you expect a receptionist to be efficient and pleasant. You can track your website’s performance with Google Analytics. Two particular statistics will tell you what you need to know:

Bounces. This reflects the number of people that go to the front page or any page of the website and then just go away again. There will be a certain amount of these because some people are just looking for your address or some particular piece of information. But, tracking the number of bounces from your website is a good way to see if your “receptionist” is getting the job done.

Behavior Flow. You also want to look at what people are doing when they get to your site. Where did a particular visitor go when they arrived on your site? Are they easily finding the right pages? Is your “receptionist” directing them where they need to go?

What about sales support? How do you know if the sales portion of your website is doing its job effectively? Well, if your sales team is receiving a lot of calls, and you’re gathering a lot of information from website forms, you can judge the quality of those potential customers. You can decide if your website is marketing to the right people.

Another KPI for your website is – how long are people staying on the site? Are they there for a while because they are engaged with the content? If you have a vacancy page, is this online version of your “leasing agent” finding you potential tenants? How long are people spending on that vacancy page? Are these potential tenants getting the information they need, and are they filling out forms and making calls to you?

These are all good ways to judge whether your website is doing its job.

The job of your website is not simply to be a website. It’s not just there to look pretty.

And remember, it can’t do all this work alone. You cannot rely on a website to get all your marketing done. It needs to be supported by products, services, and all those unique things you do inside your company to have a complete marketing program. You want to attract new people who are just learning about property management, and reach those owners who are ready to hire a management company, and they need to know why they should choose you rather than your competition.

If you have any questions about building a website for property management or anything pertaining to digital marketing for property managers, please contact us at Fourandhalf.

The post If Your Property Management Website Was an Employee, Would You Fire It? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Today we’re joined by Eric P. Hoglund, Broker (DRE #01420325) with Estey Real Estate & Property Management. He explains the benefit of understanding 1031 exchanges for property management companies, even if your company doesn’t do real estate.

After doing a lot of traveling with the Navy, Eric decided he wanted to be closer to home so he could raise his kids and be with his family. His wife’s family had owned a property management company since 1946, and he began learning everything he could about the real estate and property management industry.

Eric knows that getting your real estate license doesn’t mean you know anything really important about real estate. Terms like ‘escrow’ sound scary, even to professional agents, and there are lots of acronyms.

When he closed on his first home, he was a licensed agent but still felt outside of the loop. The entire process made him nervous, and that allowed him to think about how his clients and his owners felt during this process.

He sees his mission as demystifying things for his clients. Currently, he’s managing around 300 properties and his company does between 15 and 20 million in sales.

Why do we have Eric here today as a guest on The Property Management Show? Because we’re talking about 1031 Exchanges, and that’s one of those terms that might need to be demystified. It’s a term that gets thrown around a lot. Everyone is aware that it exists, but not everyone is clear on what it is.

Defining a 1031 Exchange The tax code scares people right away. But, a 1031 Exchange is not as complicated as people think. It’s simply a way to defer taxes.

This exchange is a way to move gains that you’ve earned on one property into a new property that you’d like to purchase.

Here’s an example. Let’s say you bought a home years ago for $100,000, and you just sold it for $200,000. That’s a gain of $100,000, and it’s taxable.

But, if you take that $100,000 and put it into another property, you can defer those taxes.

You need to buy a like property, but that isn’t as restrictive as you might think. It simply means you have to buy another income-producing property. So, you can sell a condo and buy a fourplex. For a while, everyone wanted to own a winery. It’s possible to sell a rental property to buy a vineyard.

One thing you need to know is that you never actually see that gain from the property you sold. The money immediately goes into an exchange holding company, and you’ll pay some fees. So, it moves from one escrow account to another.

Many investors find this is a great way to do business, especially when you don’t overcomplicate it. Some investors, for example, want to take their $100,000 gain and only roll $70,000 into the next property while keeping $30,000. It’s possible to do that, but you’ll have to pay your tax on that $30,000.

The 1031 Exchange isn’t mystical, but if you don’t know the rules, it’s easy to get into trouble. There are some timelines that are important:

1. From the time you close on escrow with the house you’re selling, you have 45 days to designate up to three different properties for your next purchase. You don’t have to close on those; you simply have to demonstrate that you’re moving towards a purchase.

2. You have 180 days after your first sale to close escrow on your purchase. So that’s six months. After that, you cannot leave the money there indefinitely. If it looks like you’re not going to close within those 180 days, get your tax expert involved.

When you finally liquidate and get out of the income producing property business, you’ll have to pay those taxes. But, the 1031 Exchange is a great way to stay in the business even when you’re ready to sell an investment.

It’s hard to escape taxes forever, but you can minimize what you pay. This is similar to what happens when someone inherits a property. If your parents bought a fourplex in 1962 for $40,000, and you inherit it when they die while it’s worth $1 million, that will seem like a big tax bill. But, you get a step-up adjustment, which means your tax clock starts ticking at $1 million. If you sell that property in two years for $1.2 million, you don’t have to pay a tax on the gain from the original $40,000 value. You pay on the $200,000 gain your property has earned.

This doesn’t always make sense. If you’re selling a property and you only make a few thousand dollars, the capital gains tax will be equal to or even less than the fees you’ll need to pay to the exchange company. It might not be worth it, but at least run the numbers to find out.

PM Grow Summit Sponsorship

Buying and Holding Real Estate Investments Investors always grumble about how rich they’d be if they had just purchased a lot of Apple stock back in the day. Here’s something most people don’t realize: that house you inherited from grandma is actually your Apple stock. If you hold onto it, you stand to make a lot of money.

Real estate is one of those things that provides some great returns if you buy and hold. The richest people you meet will be rich because they bought a home and paid it off. Then, they bought a rental property and paid it off. Then, they bought two more rental properties – and so on.

The 1031 Exchange allows a lot of investors to hold onto the value that they’ve accrued in properties.

1031 Exchanges for Property Management: What if Your Property Management Company Doesn’t Do Real Estate? A lot of property management companies are 100 percent focused on management and they don’t do real estate sales. If that sounds like you, there’s still a lot that you can do to benefit from 1031 Exchanges.

A property manager has one of the more unique positions in the customer/client relationship. There’s a lot of trust between owners and managers; or there should be. It’s not an easy job to manage property. You need to understand a slice of the market that’s even larger than what real estate agents are doing. So if part of your business model is not to sell real estate, you still have a unique ability to have the owner’s ear. You can build in some value and some services.

Imagine this. Maybe you’re having a lot of trouble with an owner’s fourplex. There are problems with the roof and the foundation has some issues, and the market is good, so it might make sense to sell it. If you can get your owner thinking about selling that property, you don’t necessarily have to lose the business of those four units.

You can suggest your owner do a 1031 Exchange and buy a multi-family building with eight units. You can run the numbers on estimated rental values and occupancy rates. Your owner’s Realtor can take care of the sale and the purchase. You can look at deferred maintenance issues and help the owner decide whether the investment makes sense.

First, you’ve provided a valuable service to a client.

Second, you’ve developed a deeper relationship with a local real estate agent who just closed a sale.

Third, you’ve grown your own portfolio. Instead of managing four units for this owner, you’re now managing eight.

Everybody wins, and the win happened not because you were looking at your own bottom line – but because you were looking at your client’s bottom line. You’re the expert.

When Does a 1031 Exchange Make Sense? Maintenance issues can tell you it’s time to look for a new investment property. There are other triggers.

First, it might make sense for your investment goals. Before any investor buys a property, he or she has to decide if the purchase is for cash flow or for equity. The beauty of real estate is if you hold the investment long enough, lines cross and you get both goals met.

But, your first question should be whether you’re buying for cash flow or equity. As long as the numbers work for you, an exchange is a good idea.

You should also consider a 1031 Exchange if you have an opportunity to buy in an area that’s growing. You’re looking for growth in both economy and population. Make sure you understand the market. This is another area where property managers are extremely valuable. An opportunity might look great in a specific market, but if there are a bunch of homes and no tenants to fill them – your investment will not perform.

Finally, know how long you’re planning to invest in rental real estate. You want to know your exit strategy so you make a smart decision when exchanging one property for another.

Seacoast Commerce Bank Sponsorship

Property Managers Complete an Essential 1031 Exchange Team Before investing or engaging in a 1031 Exchange, investors at every level will need to call in some experts. They need a real estate broker and a property manager. They need a tax person and an attorney. The team has to expand.

It’s tempting to focus entirely on property management, or to get comfortable managing properties and not understanding the benefits of selling homes or facilitating exchanges. But, investors and homeowners need a team to make the right decisions. Position yourself as a collaborator who will make people successful, and you’ll notice that the business will come. You may not do the buying and selling, but if you know how it works, the owner is more comfortable reaching out to you and including you on the team.

Relationships are everything.

A sin of almost every property manager is that they don’t reach out to their clients unless there’s a problem. Check in with your owners from time to time to tell them that everything is going well. Ask them if they’ve thought about selling any property or if they’re interested in picking up additional units. Maybe they’re not. But, they’ll know you’re thinking about their future and their opportunities.

Property managers are natural team builders. You’re required to wear a thousand hats every single day, and you have to talk to a lot of experts. You need to know a little bit about plumbing without being a plumber, and you need to know how a 1031 Exchange works, even if you’re not a real estate agent.

Different Types of 1031 Exchanges Now that you understand the basic 1031 Exchange, you should know that there are other, more complex exchanges.

For example, there’s a Reverse Exchange where you already bought something and now you’re going backwards. It can be done, but it has to be done a certain way because you’ve already bought and sold.

For years, there was a trend where people wanted to shield themselves from the tax burden of selling rental property by moving into it. Maybe you have a rental and it’s never been your home. But, once you move into it for two to five years, it becomes a primary residents, and you can defer taxes without doing the exchange. You don’t even have to live there for consecutive years.

There’s flexibility. You can sell one rental home and buy another with the 1031 Exchange. There’s no limit on how long it has to be a rental, but your tax expert will probably say at least five years. You can move into it yourself to avoid the taxes, but you’ll have to live there for five out of five years.

Make sure you know the tax code or you work with someone who really knows the tax code. Things change all the time.

Property managers can utilize 1031 Exchanges by helping their existing owner and investor clients get more properties or better properties. Upgrade your portfolio by increasing your doors and the quality of those doors.

Stop looking at your bottom line. Look at your client’s bottom line. And, don’t discount yourself. You are a smart and intelligent property manager. You know what a good property looks like.

We hope you feel more comfortable with 1031 Exchanges, and that you know how it can help you build your property management business. If you have any questions for us or for Eric, please contact us at Fourandhalf.

The post How 1031 Exchanges Can Grow a Property Management Business (Even if You Don’t Do Real Estate Sales) appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you been looking for more marketing ideas for your property management company? Is your current strategy not getting you the kinds of owner leads you’d like?

Let’s start with this: Property management marketing shouldn’t just get you owner leads. It should get you the right kind of owner leads. That means, owner leads that will thrive working with your property management company. If they thrive, you’ll thrive.

Why waste your time and money chasing leads that aren’t a good match for your company’s structure and speciality? Instead, create a marketing strategy that collects better and longer-lasting leads, and filter out the rest.

To get started, here’s ten property management marketing ideas to attract the right owner leads for your property management company:

Property Management Marketing Ideas: 1. Identify Your Property Management Company’s Ideal Owner The first step is to figure out the right kind of owner. At Fourandhalf, we like to call this the ideal client. We talk to a lot of property managers who tell us their ideal client is anyone with a rental property within their service area.

Now, that may sound like a reasonable response. But if you think about it, do you really want to:

• Manage a property that is falling apart?
• Take on a property that’s in a bad neighborhood?
• Work with an owner who was nickel and diming you?

A lot of property managers can easily rattle off the qualities of their ideal tenant, but only a few can identify their ideal owner client. Defining your ideal owner client can be challenging, and one useful tip is to look at your existing portfolio:

• Which property owners give you the most profit without driving you and your staff crazy?
• What types of rental properties do they own? Where are they located?

At Fourandhalf, we believe that understanding a company’s ideal client creates a strong foundation for property management marketing.

2. Content Marketing Connected to Property Owner Pain Points Now that you know who you want to target, the next step is to create content that is related to the owner’s pain points.

You’ll want to create written blogs, videos and eBooks. Provide website content that deals with the problems that you know your ideal owner is having. This helps your SEO by putting your website in front of owners who are searching for solutions to those problems. The more you’re helping owners understand their problems, the more trustworthy and show-worthy you look to Google.

If you’re scared about giving too much information, just think about this — with the power of the internet, property owners and investors can easily find answers with a click of a button. Wouldn’t it be nice if they found those answers on your website and see you as a trustworthy property manager with nothing to hide? Once they reach a point where they can’t handle it themselves anymore, who do you think they will call for help?

3. Create Frequently Asked Questions for Owner Leads Create a frequently asked questions list, which you can provide to owner leads and include on your website. This is different from your blogs because each owner you’re reaching is in their own stage of the buying cycle. Some owners may be going after generic information, so they want a quick answer. Other owners may be more serious about it, and they’ll want a deep dive on a particular topic.

You want to cater to both audiences.

The questions that need answers are actually in your email inbox. You get a lot of emails from existing owners and owner leads with questions that come up again and again. If a question comes up over and over during the sales process, then it’s something that future owner leads will be asking. Answer it on your website.

4. Make your Property Management Website User-Focused Your property management website must be user-friendly. When they visit your website, both owners and tenants want to find information or perform an action. When they cannot find the information or perform the action they want, they will jump to another website.

A frictionless website will draw new leads in rather than push them out. This makes it more likely that they’ll stay with you and convert.

5. Comprehensive Search Engine Optimization (SEO) Another key component of property management marketing is your website’s search engine optimization. If your website doesn’t have the right keywords, owners will have a hard time finding it when they search online for property management.

Remember, search engine optimization isn’t just about one thing. It’s a combination of many things like your website copy, your blogs, and your videos. Other things matter like page titles and descriptions. Everything works together to bring you to the top of search results. It is very important to find a marketing agency that understands the industry so that they know what to look for when they are crafting your website copy.

6. Review your Property Management Packages & Pricing This may not be as obvious, but you need to review your packages and pricing. Whether you are a brand-new property management company or a mature company that has been in the industry for decades, it is still a healthy exercise to re-examine pricing time and time again. Make sure that what you offer is tied into the needs and the wants of the types of owners that you want to attract.

Pretend that you’re that property owner. Go through your packages, services list, pricing, etc, and see if they make sense as solutions to the property owner’s needs and problems. Remember that although you know what’s included in a management fee, a typical owner does not.

Your website needs to include this information, and make sure it’s easy to find.

7. Take Charge of your Property Management Company’s Online Reputation Property management marketing will attract owner clients if you manage your online reviews properly. Remember this famous quote: “It takes a lifetime to build and only a second to destroy.” That describes your reputation. So, make sure you have a plan on how to deal with negative reviews and take control of your overall reputation.

Not all negative reviews will destroy your business. It’s all about how you frame your experience when you are dealing with owners. Also, negative reviews can be used to improve your business if it helps you realize that some of your vendors or staff members are creating issues. Flip the script and think about your online reputation in different way. Use it to your advantage.

8. Use Email Marketing to Warm Up Your Owner Leads Email marketing can warm up your leads. You probably have leads that aren’t quite ready to close yet, but don’t throw them into the lost leads pile. You don’t have to give up hope so fast. Choosing a property management company is a very big decision for property owners. Help them make up their minds by providing information they can use to figure out the needs they didn’t know they had. You can show them what will help their rental property. You’ll address their questions and answer their fears, and you’ll also position yourself as a supportive resource who is on their side.

9. Owner Referral Programs for Existing Owner Clients, Realtors, and Vendors This is good old word of mouth marketing — tried and true.

Create referral programs for existing owners. Those owners know other owners, and they may have friends and family members who know owners.

You can also offer realtor referral programs. Having good relationships with local realtors can be powerful. It can be a huge win-win for all parties involved!

Referral programs that reward your vendors can also be a great way of getting new owner leads. Unless you have an internal maintenance department, you probably use a lot of local vendors and contractors. Chances are they service other houses that you do not manage.

If you communicate your ideal client to those parties, there’s a high likelihood that they will identify and refer those owners.

10. Have a Property Management Marketing Plan Stay focused and on track with a property management marketing plan. It keeps your messaging consistent. It doesn’t matter how fast you are growing; if you are going in the wrong direction or you don’t know which direction you’re running in, you’ll never get to your destination.

If you need any help implementing these property management marketing ideas or you’d like to start with a marketing plan, contact us at Fourandhalf. We are passionate about helping property managers like you win at every stage of marketing and growth.

Want more marketing ideas for property management? You might also enjoy: * SEO Blogging for Property Managers * How Many Blogs Should Property Managers Create? * Keys to a Great Property Management Website * Rethinking Paid Advertising for Property Managers

The post Property Management Marketing Ideas to Get the Right Owner Leads appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

On The Property Management Show today, we’re talking to John Bykowski, CEO at Fourandhalf as well as Matt Simons, general manager of Abodea. Our topic is maintenance for property management companies.

How can maintenance be a bottleneck to profitability, and what can property management company owners do to mitigate that risk?

By the way — have you caught our other episodes on Bottlenecks to Property Management Profitability? If not, be sure to check out our episodes on: Focusing on the Wrong Activities, Poor Accounting and Leaky Sales Funnels.

Alright, let’s dive in!

Introducing Matt and Abodea Matt is responsible for building the customer service component of what Abodea does, and if you’re not familiar with Abodea, you might have known them as SuperTenders, which was founded as NightTenders. They were the first company in their space to provide after-hours maintenance support to property managers.

Now, the company coordinates maintenance support for property management companies at all hours of the day and night.

If the power goes out or the bathroom is flooding or it’s 105 degrees and the air conditioning doesn’t work, you can use Abodea to respond to the tenant, diagnose the problem, and take the appropriate action. The company was created by a property management veteran who recognized that maintenance is a major pain point for property management companies.

John and Matt met at a sales conference in Nashville recently and got to talking about how maintenance can really be a bottleneck for property management companies that are trying to grow.

How Maintenance in Property Management Can Hold Your Company Back A company’s scale of operations can create a bottleneck when it comes to maintenance and profitability. Abodea discovered that customers who were smaller or start-up companies were dedicating a lot of time and resources to maintenance, and not getting anything back.

Maintenance is unpredictable. It’s not like collecting rent or paying owners. You can go months without any maintenance needs or have three properties need something major in one month. So, it’s hard to allocate resources to efficiently manage the repair issues and dispatch vendors.

Maintenance is a delicate part of your property management business. Each maintenance call is different in its importance and urgency. A repair that’s handled the wrong way can cause long-term, sustained damage to your owner’s property. It can deplete the quality of life for your tenant. So when it’s 3:00 in the morning and you have to make a quick decision, your judgment can be difficult to trust, no matter how long you’ve been in the business.

This can create customer churn.

There’s also the matter of finding and retaining good vendors. You have to build a vendor list that includes professionals you can trust. It’s a good idea to have three or four vendors you can call in each specialty so you have the confidence that you’ll be able to get someone on the phone immediately when necessary.

Building and maintaining a vendor list takes a lot of time and resources. Doing maintenance correctly can be an overwhelming cost, even for large property management companies.

PM Grow Summit Sponsorship

Building Maintenance in Property Management as a Revenue Stream On the flip side, there are revenue streams associated with rental property maintenance.

That revenue can offset the cost of maintenance, and sometimes significantly. So, the entire maintenance experience for property managers is on a spectrum. It can be a big cost center or just a big cost. And, if you’re not appropriately scaled or you haven’t allocated your maintenance resources correctly, you can lose customers and create damage to properties.

Usually, maintenance is separate from general property managers. A lot of companies have upcharges that are included in maintenance invoices. That’s because maintenance is unexpected and unpredictable. Each maintenance issue is a single event, so you’re being compensated for the time it takes to diagnose the problem and dispatch the appropriate professionals.

If that cost isn’t property communicated to property owners, there will be issues. The upcharge has to be aligned with the market and easy to explain. Property managers face bottlenecks here if they can’t communicate the value of proper maintenance response to their customers.

Moving from Big Cost to Cost Center with Maintenance: Know Your Numbers Know your numbers and your ratios if you want to move from losing money on maintenance to turning it into a profit center.

Understand the costs you incur on maintenance, separate from the costs you incur on the business overall.

Calculate your revenues too. These need to be separate and the only way to avoid cost creep is by staying on top of what your maintenance services are costing you and what they’re earning you.

It won’t take long to find inefficiencies.

Matt recommends thinking in terms of 400 units to one maintenance coordinator.

If you have one staff person managing maintenance for 200 units, you’re probably not utilizing your staff in the best possible way. If your maintenance coordinator is responsible for 600 units, you may notice that details are being missed and mistakes are being made. There are bound to be distractions. If you’re not sure of your numbers or how to analyze what you’re spending or earning with maintenance, find some software or utilize a company like Profit Coach.

Taking Ownership of Property Management Maintenance: Customer Service It’s not uncommon for company owners to be too involved in maintenance decisions. This can distract you from growing your business. It also leads to a poor customer experience. If a tenant is waiting for a repair because the property management company’s owner has to approve it before anyone can do anything, you can expect a damaging Yelp review before too long.

As the owner, you have to be in tune with the quality of the customer experience. You don’t have to approve a sink repair. Make sure your maintenance process is confident and competent.

Operationalizing maintenance is important and a good way to remove the bottleneck. You need clearly defined policies, practices, preferences, and expectations. Training, obviously, is critical. The maintenance coordinators at Abodea undergo a process of knowing how to troubleshoot and support the tenants who are calling. They need to know how to distinguish an emergency from a general repair. Your staff has to be able to do the same thing.

The onboarding process that Matt uses involves 147 different questions for each customer. So, if you’re a property management company that’s going to start working with Abodea, they want to be sure they respond to each maintenance issue in accordance with your policies, plans, and priorities. So, you’ll answer 147 questions about how maintenance responses should be handled.

While 80 percent of those questions often have default answers that are consistent from all property managers, the idea is to create a completely customized experience. No one gets the same exact service. Each property management company can also provide a prioritized vendor list. Responses can be consistent across a management company’s portfolio or dependent on each property within that portfolio.

This sounds like a decision tree, and most property management companies have a decision tree in place when it comes to maintenance – but the maturity of that tree varies dramatically.

Seacoast Commerce Bank Sponsorship

Safeguard Your Maintenance Revenue Center As you’ve seen, eliminating the maintenance bottleneck requires you to know your numbers and standardize your practice.

It’s also critical that you safeguard your revenue center.

Every opportunity to mitigate your maintenance cost is important to pursue. Make sure you’re safeguarding the revenues that are due to you as a property manager. If you understand your market, you know what’s acceptable for maintenance charges. Find out if the standard maintenance upcharge is 15 percent or 20 percent. Make sure you’re where you need to be.

Understand where your revenue can and does come from. Make sure you can explain to owners where the costs are. They won’t mind paying a maintenance upcharge only when they need it if it means keeping the overall monthly management fee lower. Know what your vendors are charging you. If you have great relationships and you’re receiving a 30 percent discount from your contractors, you can work that into a great profit margin. You have to know where your revenue is coming from just like you have to know where your costs are.

Maintenance Myths: It Doesn’t Have to Be a Headache Maintenance doesn’t have to be as terrible as property managers seem to think it is.

Whether your company is a start-up or very large or in the process of scaling, you can have a maintenance system that’s wired tight. Matt has seen it and he knows it doesn’t depend on business size. It depends on effort and strategy.

Every successful maintenance department is different. Some property managers keep it all in-house and it works. Some companies outsource everything and it works. Sometimes, there are platforms or automations that work wonders and other companies keep it 100 percent human and that works too. You can find and maintain a positive maintenance margin.

Scope of service and customer service will drive how you structure your maintenance department. At Abodea, they have done the math and with their 400:1 ratio for units to maintenance coordinators, it turns out that after taxes and payroll and recruiting fees and other hiring costs, your maintenance coordinator will likely cost you an average of $52,000 or $53,000 per year. Are you using that bucket of money effectively with an in-house maintenance coordinator?

Maybe you are. Or, maybe you want to outsource it for less. Operate within the boundaries that you have. If you’re managing 25 doors, you’re probably managing the maintenance yourself. Make sure you have planned for what you’ll do when you have those 400 doors.

Matt’s company handles a lot of maintenance calls. The statistics on maintenance vary wildly depending on market, tenant training, and maintenance delivery method. He does know that on average it takes about half an hour to diagnose the problem at a rental property. He also knows that about 50 percent of the maintenance requests that come through his company are emergencies.

Tenant Training Reduces Maintenance Bottlenecks If your tenants are trained in how the property works and they’re aware of their responsibilities and expectations, you’ll have a lot fewer maintenance headaches.

Abodea has presented a tenant training module because they know that it’s an important part of effective maintenance support. It brings down the number of maintenance calls that require a response. Not only are there fewer calls, but there are shorter calls.

This enforces the idea that you can control more of your maintenance costs than you think you can. Tenant training helps.

Get a better handle on your maintenance costs by reducing the time you have to spend responding to issues that tenants can take care of themselves.

Matt has some ideas for this:

• Print up something for the fridge that walks tenants through the maintenance process.
• Create a separate document outside of the lease that lists the tenants’ responsibilities and where they’ll be held accountable. Have them sign it when they sign the lease.
• Create videos on how to handle sprinklers or garbage disposals. Make sure the tenants acknowledge that they watched the videos and understand the repair process.

If the tenants know that replacing the batteries in the thermostat is their responsibility, you won’t have a call in the middle of the summer that the air conditioning isn’t working. It will save you time and it will save your owner the cost of sending a vendor out to the property to replace thermostat batteries.

Don’t just promote tenant accountability – insist on it.

Here’s what Matt and John want you to remember about today’s podcast: you can really remove the property management maintenance bottleneck to your productivity if you know your times. Find the wasted time and money in your maintenance process and do better so you can grow your property management business.

If you have any questions, reach out to Matt at Abodea or contact our team at Fourandhalf.

The post Bottlenecks to Profitability Part 4: Maintenance Limbo appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you wondered how a property management privacy policy can benefit your business? Consider this scenario:

A friend of mine wants to purchase investment property in Texas, so I’ve been checking out property management websites. It’s always great when I find an investor’s page, but as soon as a pop-up box blinks onto my screen asking for my personal information, I wonder what the company is going to do with it.

So, I look for a privacy policy that tells me what they’re collecting and why.

If they don’t have a privacy policy, I get concerned. And, I move onto the next property management website.

This scenario could be happening to you if you don’t have a privacy policy. So today, we’re explaining the importance of having a privacy policy on your website and why there’s a super-cool benefit to how you attract owner leads.

What is a Property Management Privacy Policy? A privacy policy is documentation that tells your website visitors what type of information you’re collecting from them, and what you intend to do with that information. In some states, there are privacy laws in place. These don’t exist to protect you as a business; they exist to protect the Personal Identifiable Information (or PII) of the people who visit your site.

A Big Privacy Policy Benefit Here’s a not-so-secret secret about how privacy policies can help your property management company: They actually help you rank better on Google.

How? Well, when Google looks at your site, they’re scanning pages for any indication that you’re trustworthy. They want to know you’re credible, so when they see things like a Terms of Use or Terms and Conditions or a Privacy Policy, they know how to index you as a credible site, and your results can go up in search.

Obviously, this one thing won’t take you from Page 10 to Page 1; you need to have all of your SEO best practices in place. But, it can be a bit of a boost to how you rank.

Bringing Transparency to Your Website A privacy policy provides transparency and trust. If a potential lead is visiting your website and they don’t know what that site is going to do with their PII, or even with just their name and phone number, it’s easy to get nervous. You want to be as transparent as possible. Let people know why you want to collect their details. Tell them if you’re selling the information and what you’ll do if there’s a data breach.

Creating Your Property Management Privacy Policy: Talk to a Privacy Attorney If you’re ready to include a privacy policy on your website, make sure you work with an attorney who practices privacy law and contract law. Don’t go to your eviction attorney for a privacy policy. You can ask your eviction attorney for a referral, but make sure you have a specialist drafting your privacy policy.

Something you should know is that at Fourandhalf, we have a partnership with Termageddon. One of the co-owners over there is an attorney, and her practice is in privacy and contract law. It’s her job to keep up with state laws and all the changes around privacy policy. She shares what she knows with us at Fourandhalf, and we can help you make sure your privacy policy is up to date and compliant.

If you’d like to know more, check out our podcast — we recently interviewed Donata Kalnenaite of Termageddon on our episode that debunked some privacy policy myths.

Remember that a property management privacy policy is only part of your big picture when you’re expanding your business. You need a marketing plan too, so if you’re ready to grow contact us at Fourandhalf.

The post Can Privacy Policies Help Property Management Websites Get More Investor Leads? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Does Your Property Management Company Have A Leaky Sales Funnel? This week’s episode of The Property Management Show continues our series on removing bottlenecks to encourage profitability in your property management company. We’re joined by two superstars from RentScale, Berit Elizabeth and Milissa Miller. No matter how outstanding your property management marketing is, if your sales process isn’t airtight, you will lose business. Milissa and Berit are going to tell us the damage to property management that a leaky sales funnel can do to your profitability, and they’re going to share a couple of secrets that can ensure you’re not losing opportunities.

By the way – if you’ve missed our previous episodes on bottlenecks to property management profitability, including focusing on the wrong activities, and poor accounting, you can catch up by clicking on the links.

Alright, let’s introduce these sales experts, and kick off our topic.

Introducing Milissa and Berit Both Milissa and Berit are consultants with RentScale, where they work with property management companies across the country on improving sales processes. They are both passionate about optimizing the sales process. They have worked in sales and in training throughout many different industries, and they are happy to be working with property managers because of the unique business model that comes with recurring income streams.

What is a Leaky Sales Funnel in Property Management? Even if you’re new to sales, you probably have some idea of what a sales funnel is. You’re putting all your leads and potential business into the top of the funnel, and on the bottom of the funnel, you’re producing customers.

When lots of leads are dropping into the funnel but few customers are coming out, your conversion rate is smaller than you expected, and you need to know where those leads are dropping off. This is what Berit and Milissa refer to as a leaky sales funnel. You have leaks in the funnel where those leads are falling out. You need to identify them and fix them so you don’t lose that business.

Visualize a bucket. It would be great if all your water stayed in the bucket. But, if there are holes in that bucket, you’re never going to keep all the water. That’s what a leaky sales funnel looks like.

A leaky sales funnel can break the bottom line of a property management business.

You’re probably paying for leads every month. If you’re putting a budget towards those leads, you want to know how much money you’re spending on leads compared to the money you’re earning on signed contracts. That means you have to look at the sales process itself. There are many stages to that process, and you need to evaluate each stage to find out where your sales funnel is leaking.

Are You Closing Enough of Those Leads? Maybe you’re not even looking at your sales funnel because you’re closing a handful of great business every month, so you assume everything is working just fine.

Why go looking for problems?

But, you have to know your sales funnel so you can avoid lost opportunities.

Look at the bigger picture of how many leads you have coming in versus what you are closing. Does it make sense? You need to make sure you’re maximizing the leads that are coming in. If you’re not looking at your sales funnel, you’re not going to know what to fix.

Make your sales process visual. You want to take a look at the definitive steps you take, and you want to see how people move through the process. It won’t take long to identify where they’re dropping off.

PM Grow Summit Sponsorship

How to Fix a Property Management Leaky Sales Funnel: Identify Your Ideal Client You need to attract the leads you want.

Maybe you want to focus on attracting investors who are hands-off, or your company specializes in accidental landlords who never planned to rent out a home.

The way you approach those leads will be different.

You have to speak the right language through your marketing, otherwise there will be tremendous leaks in that funnel.

One of the biggest leaks is not knowing who your ideal client is.

Imagine for a moment that you decide your property management company is only going to work with yellow houses that have two stories and one front door and three windows. You’d probably be more profitable than a company working with all sorts of houses. Why? Because in your marketing, you’d be putting out specific criteria for who you were willing to work with, and every owner of a yellow two-story house would likely get in touch with you.

If you know exactly who you want to work with, you’ll have an easier time keeping leaks out of your sales funnel.

When you’re clear on your ideal client, it’s not only easier to attract clients. It’s easier to keep them. You’re setting an expectation, and that will lower your churn. Everyone will be happier. Customers will get the services they want and property managers will be happy because they know exactly what they’re doing and why.

Fixing this one leak solves a lot of problems.

Systemize Your Sales Process Once you’ve identified your ideal client, you have an entire sales process that needs to be systemized and evaluated. It probably starts with a phone conversation. After the initial phone call, you may move into an onsite consultation. Then, there’s the follow-up. How many steps are between the initial contact and the closed contract?

It’s hard to pinpoint where that process is breaking down if you don’t actually have a system. Can you picture that bucket where all your leads go? You need a consistent process that’s followed for every potential new customer. If you don’t have that consistent process, there will be leaks springing from everywhere, and you won’t know where they started or how to stop them.

Hope is not a strategy. A lot of property managers have excellent systems for operations. There’s a process in place for maintenance, rent collection, leasing, and accounting. But when it comes to the sales side, it’s easy to overlook the value of operationalizing your sales system. Maybe you’ve hired a BDM and they are taking calls but just winging it. That’s not effective. You need a predictable system.

The system you put into place needs to be teachable and repeatable. As a company owner, you might not be doing the sales work, but you do know who your ideal client is and you do know what needs to happen to bring those clients into your funnel. So, you need to be part of operationalizing the sales process. You have the vision. You know what you want for your company. Get that process down on paper and make sure everyone in a sales role follows it.

The sales process has to match your vision.

If you want to attract a great sales person or a top notice BDM who maybe isn’t familiar with the property management industry but is an expert at sales, you absolutely need a process ready for them. They will bring the sales skills you need. But, the infrastructure is essential. A CRM system needs to be there already. The job of your BDM is to execute that process, not create it.

Establishing Conversion Standards If you’re just starting to build your sales funnel, you’ll have lower conversion rates. It’s hard to say what your conversion rate should be. There are so many variables, including your market and the types of leads you’re bringing in.

Remember that not all leads are equal. A referral from a Realtor who has an investor client ready to rent out a property is a much warmer lead that one you get from a lead generator like All Property Management. High conversions with colder leads means you’re doing something right.

Each situation is different. You know what kind of numbers make you feel good. If you’re curious about the industry average, it might be a conversion rate of about 30 percent. But it’s tough to rely on that number because there’s so much more involved. Even if you’re converting 30 percent of your leads – are you satisfied with that, or do you want to close more?

Here’s something to remember, however: Don’t put resources into lead attraction until you’re confident you can close them with a consistent sales system.

Lost Opportunities and Unasked Questions There are a lot of other problems that lead to leaks in the funnel. Response time is huge, for example. If a lead comes in and sits in the funnel too long, they’re going to leak right out.

Maybe you’ll have a great first call but then you can’t get that lead back on the phone to follow up. What went wrong?

Are you making it easy for people to sign a management agreement when they’re ready?

It all comes back to systems.

A big part of the process is asking the right questions. You have to identify the questions that aren’t being asked.

You need to listen for that one pain point that the owner is asking about but maybe not really asking. If you can identify the real struggle, you’re going to be more effective at moving that lead forward than if you simply dump a bunch of information on your lead about your company.

Respond intentionally and make sure you’re tracking each interaction. Use that one pain point or that important question in all of your follow ups.

Tracking your process is critical. Whether you’re using a spreadsheet or a program like LeadSimple, make sure you’re clicking off each milestone that’s reached in your sales process. It will show you exactly where things may be leaking or getting stuck.

Use this information to nurture the lead back into contact with you. If you can see where they’re falling off or which stage is leaking, you can plug that leak. We call it active nurturing.

Sales Process and Staff There’s a trend lately where different stages of the sales process are farmed out to different people. Maybe the introductory call will be made by a junior sales person, and then it goes off to the closer. Or, the most experienced person will start the process and then hand it off to a person with less sales experience once it looks like it’s really going to close. Is this effective?

There are different theories on this, and there can be leaks whether there are several people involved in the sales process or just one. It is important to have the BDM fully engaged throughout the whole sales process. If you have someone dedicated to this role, they should be present from the first conversation to the end. If you have more than one person working the sales process, however, it’s even more important that your system is crystal clear and followed.

In an attempt to prevent leaks, you can create more leaks if your process isn’t in place.

If you’re a property management company without a sales department yet, your first step is to build the process. Systems are important. It doesn’t have to be perfect. You’ll learn as you go. But, you need a system in place that you can follow so you know what should happen and when.

Make sure you have CRM as well. There’s too much to keep in your head. If your goal is to scale, you want to have a teachable and traceable process.

Final Takeaway to Stop Your Property Management Leaky Sales Funnel What you’ve learned today is that to prevent a leaky sales funnel or to minimize the impact of a leaky sales funnel on your property management growth, you need to look at your process and you need to think big.

For more information on how to identify holes in your sales process, contact the team at RentScale. And if you have any questions about this podcast episode or your property management marketing, contact us at Fourandhalf.

The post Bottlenecks to Property Management Profitability Part 3: Leaky Sales Funnel appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Wondering whether your property management company should be implementing inbound or outbound marketing? Not sure what the difference is? Never fear, Brittany clears it all up for you in this week’s Fourandhalf blog. It’s more than marketing magic; it’s a strategic separation of how new customers reach you and what you can do to reach them.

Inbound vs Outbound Property Management Marketing Understanding Inbound Marketing Strategies When we talk about inbound marketing, we’re talking about methods that allow property owners and investors to find you. They have a need, and they’re out there looking for a solution to that need.

Maybe you’re hearing from owners who know they want professional property management, so they go to Google and type in property management in your area. If they find your company and they visit your website or get in touch with you, they’ve arrived via inbound marketing channels.

There are also landlords and property owners with specific rental property issues that they’re dealing with, and they want a solution. So, they go to Google and they type in eviction process or pet policy or rental inspections and they look for answers to that question.

With inbound marketing, you get in front of people through your website, your content marketing, social media channels, and all the educational materials you put out to get found online.

Understanding Outbound Marketing Strategies With outbound marketing, owners aren’t finding you; you’re putting yourself out in front of them. It’s the opposite of inbound marketing because you’re interrupting people to market to them. You can reach these owners through prospecting, using the MLS, sending out direct mail, or just walking down the street looking for rental property owners.

Outbound marketing isn’t used as often as it should be. A lot of business owners hesitate to do outbound marketing. These days, there is so much noise in the digital world and the real world; you don’t want to be the interrupter. You may find you’d prefer to be the educator so people can come to you when they need something.

Finding a Good Balance with Inbound and Outbound Marketing A good balance is the way to go. Inbound leads will be warmer because they’re coming to you. Outbound leads are likely to be colder. But typically, the number of warm leads who are aware of their needs will be much fewer than the number of people not knowing they have such needs to begin with. The latter group needs help uncovering these needs before they spur into action.

Inbound marketing is great. But, if you’re not doing outbound marketing as well, you could be missing opportunities to get your name out and get people familiar with your brand. You could be missing out on potential customers who do need you but don’t know it.

At Fourandhalf, we recommend that you adopt a strategy that uses both inbound and outbound marketing. You want to continue doing your content marketing, but also have your BDM reach out to new people and get potential customers familiar with your company and what you do. Consider starting some social media ads so you have a good chance of popping up in their news feed.

Use a combination of both marketing practices so you have the most marketing opportunity.

If you have any questions about this or any topic surrounding property management marketing, please contact us at Fourandhalf. We’d be happy to have a discussion that’s a bit more in-depth.

The post Inbound vs. Outbound Property Management Marketing: Which One Is Better? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Welcome to The Property Management Show’s second episode in our multi-episode series entitled Bottlenecks to Property Management Profitability. Today, we’re talking about property management accounting.

We’re joined by Daniel Craig from Profit Coach. He is sharing some juicy details on property management accounting and how it impacts profitability. There’s a lot that can go wrong for property management companies when it comes to accounting, and we’re talking about what you should be doing to get to profitability, and the tools you need to get there.

Most of you probably know Daniel. But if you’re a new listener, let’s hear a bit about why his opinions on accounting matter so much.

Property Management Accounting: Introducing Daniel Craig and Profit Coach Daniel came from a traditional accounting background. He has always done business with the intent of owning outcomes for the entrepreneurs he works with. Daniel understands that entrepreneurs are in business because they want to be free. They’re seeking freedom in finances, time, relationships, and purpose. Most entrepreneurs think of accounting as a simple way to file taxes and comply with the IRS.

But, accounting is so much more than that, and Daniel’s passion is to show entrepreneurs how accounting can help you know if you’re achieving your goals. It can help you measure financial performance, get clear on where you want to take your business, and achieve your goals. Daniel and his company want to help you use your resources to achieve your purpose.

He soon realized the property management industry is a great business to be in, and a lot of companies were doing great. But, he also noticed a trend where a lot of property management owners were working hard and not making a lot of money.

His goal is to help the industry rise and break through to larger profits.

Daniel worked with Lead Simple to do a financial benchmarking study for the property management industry, and NARPM noticed. They enlisted Daniel’s help to write national accounting standards for the property management industry.

The Purpose of Property Management Accounting A lot of people find accounting to be less than exciting. As the owner of a property management company, you might think of it as dirty work that someone else in the company is responsible for doing. You just want to know your financial statements will keep you out of trouble and appease the IRS.

But, the primary purpose of accounting is to measure financial performance. You’ve probably heard the phrase ‘what gets measured gets managed.’ Daniel believes that anything which gets measured, also gets improved.

You’re in business to make a profit. Accounting measures that goal and gets you clear on your company’s financial performance.

Bad accounting creates bottlenecks to profitability and prevents clarity. You need that clarity.

Remember this: Clarity Drives Commitment and Commitment Drives Change.

If you have goals but you’re not clear about where you are today, then you can’t possibly know what it will take for you to achieve those goals. You cannot allow yourself or your company to stay in a financial fog. It leads to uncertainty and keeps you noncommittal. If accurate accounting can deliver clarity, you will be able to make a commitment and reach the change that’s necessary for you to achieve the outcomes that you want.

People think either they’re profitable or they’re not. But, it’s not black and white. There are degrees of profitability.

If you’re not making money – that’s an obvious bottleneck. But, if you’re not making as much as you could be, that’s another bottleneck and you might not know how to solve it.

PM Grow Summit Sponsorship

Assessing Your Need for Accounting Clarity It’s possible your property management company isn’t making any money on management services but you don’t know it because your brokerage division or maintenance division is bringing in all the profits. You need to know the performance of each division. If you’re not making good money managing properties, why aren’t you?

Assess where you are with your accounting by answering these three questions:

1. What is your average profitability over the last 12 months? If you don’t know the answer, you have a bottleneck to profitability. Or, you’re not paying attention or calculating your metrics. This is a number you need to know. Having money in the bank doesn’t mean you’re profitable.
2. Do you know the relative profitability of the various divisions in your company? You should. It’s important to separate the profits coming in from management, brokerage, maintenance, and any other ancillary businesses. You need to know what each division is doing and if you don’t, there are reporting issues causing bottlenecks.
3. Do you regularly review your financial statements and gain insights that change how you do business? If you don’t change as a result of looking at your financials and the statements aren’t clear, you have an accounting problem. Those statements should drive change in your organization.

Average Profitability in Property Management The benchmarking study last year demonstrated that the average profitability shown on the books for property management companies was 10 percent. That’s okay for a small business. When a second level of analysis was conducted and owners were asked how they compensate themselves as owners, it was discovered that not all owners pay themselves a market-based wage. This can affect the reliability of your financial statements.

A lot of owners pay themselves sub-par wages, if they pay themselves at all. The results of the benchmarking study were adjusted to show an average profitability of six percent. That’s not great, and if you listen to a lot of small business experts, you’ll know that five percent profitability is necessary just to cash flow.

So, a lot of you are probably working off the belief that you’re making a great profit when you actually aren’t.

Far too many people aren’t making enough money.

Don’t forgo taking a salary just because you think you’re fine with the leftovers. As an entrepreneur, ask yourself if that’s why you’re in business. Salaries compensate owners for their time. Beyond that, you want to build an asset that accrues value outside of what you’re putting into the business. Pay yourself a salary so you don’t distort your financial picture.

Baseline Mechanics: Adopting the NARPM Accounting Standards The most practical thing you can do to achieve more clarity is to adopt the NARPM accounting standards in your business. This is going to be the framework to provide a common language for property management entrepreneurs. You can get clarity on the performance of your business and compare it to the way other companies are performing.

The accounting standards have four components. We’ll discuss three of them here, and the fourth will come later.

1. You need a standard chart of accounts. This is the baseline. You need to organize the data and transactions of your company into a framework. Organizing financials this way will help you get clear on your business performance. It helps you to see the forests from the trees. Your financial statements may have 50 accounts or they may have 400 accounts. In any case, you need to see high level categories. There should be five to six key categories and expenses. Look at how those are tracking over time and then drill down into specific accounts when you need to see what drives any noteworthy variances.
2. Attach a set of metrics to those standards. This is critical. Specific definitions are used so you can build off your chart of accounts. Do you know your revenue per unit? When you start to peel back the onion layers, you can calculate your metrics in a consistent way. It facilitates these true apple-to-apple comparisons between you and the benchmarks.
3. The third component is a set of standardized benchmarks which are used to see how your company is performing compared to others. You can see how much is being spent on rent and how that compares to national averages or other property management companies. You can absolutely get clarity by comparing.

Those are three primary components of the NARPM accounting standards. It’s a high level overview of the system that helps you establish financial clarity and accountability. Every residential property management company should implement them, and you can share them with your accountant. You can get the accounting standards free as a NARPM member and once you have them, you can start the initial steps of adopting a chart of accounts, using metrics definitions, and then comparing where you are.

Customizing the Chart of Accounts for Your Company Part of adopting the NARPM standards is the freedom to customize your own chart of accounts.

Everyone needs different levels of granularity. You can add details or not use all of them. Sometimes people look at a chart of accounts and it’s not what they want. That’s okay; you’re only going to use the structure. You don’t need all the granular accounts. Some people want them, but not everyone. Follow the customization procedure.

Key Property Management Accounting Pitfalls to Avoid Whether you’re just starting a property management company or you’ve been doing this for a long time, there are several key pitfalls that are fairly common.

First, there’s tolerating a lack of clarity.

Don’t tolerate it. You need the clarity, so don’t let yourself stay in a financial fog. Hold your finance team accountable for delivering accurate, timely, trustworthy, and clear statements.

It’s also a big mistake to not pay attention to your numbers. As the entrepreneur, you don’t have better things to do. Have you listened to our episode “Bottlenecks to Profitability: Focusing on the Wrong Activities”? In that episode, Kasey McDonald breaks down how to get clarity on tasks that truly need your attention. Your financial statements are the most important use of your time. Dial into your finances and see what the numbers are telling you. Then, use that message to enact change.

The biggest mistake is not holding yourself accountable to your numbers.

During Daniel’s presentation at PM Grow in Austin, he asked a few questions:

First, he asked how many people wanted to grow the number of doors they managed. Everybody raised their hands. Then, he asked who wanted to grow profits. Again, every hand was raised.

Then, he asked how many people had a financial game plan articulating specific and measurable growth and profit goals for the end of 2019 that mapped out monthly door commits, anticipated churn, and financial implications month by month.

Perhaps 10 percent of the room raised their hands.

That’s because we think we have better things to do. But, we don’t. Hold yourself and your team accountable to your financial numbers. Bring leadership to those goals and make this something you engage the whole team with.

Seacoast Commerce Bank Sponsorship

Accurate Bookkeeping Standards You must be doing accurate bookkeeping. The standards will only work if everything is coded appropriately. So, a few things to note:

Understand the cadence of financial reporting for your company. Define the timeframe. How many days after month-end do you want books closed out? Define it and organize all the planning and the meetings that should come once the reports are available.

Reconcile the bank accounts. Your bookkeeper should be doing this so your books are reconciled to your bank accounts. It seems like a no-brainer, but reconciliations are important on both the trust and corporate side. If you’re not reconciling, you don’t know if statements are accurate. It’s critical that someone is doing a check.

Make sure there’s a hollow assessment of transaction coding. From time to time an owner or someone in a high level finance position should print out detailed Profit and Loss statements and review the details. Make sure it’s accurate.

Risks of Bad Accounting Low profitability is the main risk to doing things the wrong way with accounting. But, that’s not the only risk.

One of the more dire risks is that you’re exposing yourself to significant losses. This leads us to the fourth component of the NARPM accounting standards which we did not address earlier: a financial controls guide. This is the proper flow of money. It’s your checks and balances. Internal financial controls are critical. You don’t want to wake up one day and realize you’ve lost a lot of money.

Remember that as a management company, you’re not responsible for your own money; you also have millions of dollars of trust funds that you’re managing for your clients. If you don’t have checks and balances in place thanks to great accounting, you could expose yourself to a serious nightmare.

Daniel has talked to a former owner who lost almost a million dollars due to fraud and internal errors. He had to shut down.

This is horrible and sad. If you’re not paying attention to financial controls, you’re not doing yourself a favor. You’re exposed and unprotected.

The biggest risk to bad accounting might be this: you’ll find you’ve been working hard for years and years without ever realizing your entrepreneurial dreams. That’s the biggest risk.

Often, entrepreneurs don’t slow down and revisit the big picture.

Revisit your why. Why are you in business?

Get clarity about what your goals are and what kind of changes are needed to achieve your why. There’s a role for accounting to play. Map your progress and celebrate your gains.

If you have questions about the NARPM standards or anything Daniel discussed today, contact him at the Profit Coach. You can always reach us at Fourandhalf with any questions as well.

The post Bottlenecks to Property Management Profitability Part 2: Poor Accounting appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you heard about the most recent Google Ads update? Google has announced a major change that will affect your Google Ads, search results, and ad performance reporting. Today, we want to walk through what that means for your property management marketing campaigns.

Google Ad’s Update: The Average Position Metric On September 30, 2019, Google will remove its average position metric. This metric has been widely used by advertisers when they’re optimizing their campaigns on Google Ads.

If you have been working hard to boost your visibility through Google Ads, you probably recognize the term average position metric. You might also recognize it from any results or reports that you receive from your property management marketing company. It is fairly common and most companies that use Google Ads have found it to be a reliable metric.

Understanding the Ad Campaign Metric It’s on its way out, but it’s important to understand the average position metric and what it does. This metric shows where on the search results page your ads are showing up.

As you surely know, it’s best to be in the top one or two positions when you buy an ad, because it places you strongly ahead of the organic search results. There are a lot of metrics to look at when you’re evaluating your Google Ad campaigns, but this one has been especially effective because it tells you where you might want to increase your bids and where you should leave things as they are.

If your property management advertisement is showing up below the second ad position on the search results page, not as many people will see it, and you’ll lose out on a lot of those potential clicks.

Optimizing Google Ad Campaigns in 2020 and Beyond So, without the average position metric, how can we optimize your property management ad campaigns going forward?

Google is replacing the average position metric with a top impression share metric and an absolute top impression share metric.

What does this mean?

Imagine total impressions as a cake. Top impressions are the slices of the cake that get the most icing. They’re the sweetest part of the cake, the top part, where all the goodness can be found.

Your top impression share represents the number of the best and most delicious cake slices that you get.

So, now you’re going to see a top impression share metric popping up on your campaign reports when you’re reviewing your marketing results. If you’re wondering what to look for, we can tell you that a top impression share of 80 percent or greater overall is healthy.

But, these top impression share numbers are not everything. Think about the lifetime customer value you’re gaining from all of the owners who are visiting your property management company because of your Google Ads. There’s no need to get too caught up in the report numbers.

Top impression share gives us more information than average position ever did. We don’t need to bore you with the data-driven details right here and now, but you can be assured that this Google Ads update is a good one, and will allow us to help you get more from your property management marketing dollars.

If you have any questions or want more information, please contact us at Fourandhalf.

The post Property Management Marketing Update: New Google Ad Metrics Effective Sept. 30, 2019 appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

The latest series on The Property Management Show podcast is going to focus on the bottlenecks that keep property managers from becoming profitable, growing and increasing their productivity. To kick off this series, we have invited Kasey McDonald to talk to us about the activities a business owner needs to focus on to start or grow a property management business.

Kasey is the director of the Property Management Training Academy, and she’s been in the real estate industry for 20 years, focused on property management. She began her own property management company where she organically grew the business to 227 doors in three years. Now, she’s doing what she really loves – focusing on the education and knowledge side of the industry. Her job is to help businesses be better businesses, especially if they don’t understand property management as well as they should.

The discussion of the day?

Removing the bottlenecks that inhibit your growth.

Why Are There so Many Bottlenecks to Property Management Profitability? It’s easy to focus on the wrong activity for your market. It’s easy to misunderstand the activities that are involved in generating leads and building a sales pipeline.

Before you can grow, you have to understand where you are and what’s happening in your market. There are probably 50 things you can do to grow your business in your particular market. To be effective, narrow that down to the five best things, and focus on those.

It’s important to commit to a growth activity and to be consistent. A common bottleneck to property management profitability is giving something a try for a short period of time and then stopping if you don’t get immediate results. Some activities in prospecting and sales will take a lot longer. Be consistent for a long period of time. If it feels like something isn’t working, keep going. All of a sudden, the flood gates will open up and you’ll wonder why. The “why” is that you stuck with it, and you didn’t give up a month earlier.

Focusing on the wrong things while you plan and build your business is common. If you know how to avoid this mistake, you’ll have a more productive time growing.

Look at Your Foundation: What Works and What Doesn’t? Your foundation is your systems and your processes. Here are some good questions to ask about your foundation:

• What have you been doing to grow?
• What results have you had?
• What do you need to do to get the results you want?

Maybe you’re making calls to prospects in your database, but you’re only making those calls once a week. To achieve what you want, you might need to increase the amount of time that you spend on that activity. You can’t do the calls once a week and then push the activity to the side when you decide it’s not working. Break it down and decide how frequently you should make these calls, how many calls you should make, and who those calls should reach. When you invest in the activity, you will get the results you want. Those results may not be immediate, however. Property management profitability takes time and consistency.

In Kasey’s practice, she helps owners identify what’s not working. Usually, the problem is lack of effort.

Formula for Growth: Consistency Be consistent with your time and your activities. Block out the time you need in your calendar to complete your tasks, and always leave room for growth activities. You don’t want to be multi-tasking while you try to grow. You don’t want your attention pulled towards several things at once.

Any property manager who says “I’m too busy” to focus on growth is simply making bad choices about how their time is spent. You can find an hour in every day to work on generating leads. If you can’t, your day needs some restructuring.

It’s easy to get distracted and stuck in the day-to-day, even when you begin bringing on team members. Delegating is hard. But, if you devote one hour every day consistently to a couple of growth activities, you’ll see the results coming in and you’ll understand the process.

There is a lot of noise in your office, and if you start the day not knowing what needs to be done, you’ll be reacting all day long. So, understand your key tasks. Put everything that needs to be done into your calendar until it becomes a to-do list. Then, find the hour you can dedicate to growth activities.

Property Management Profitability: Five Growth Activities Every Owner Can Try The growth activities that work best depend on your market and your goals. But, these five can help you with property management profitability, no matter who you are or where you operate.

1. Organize your database of clientele. This should include past, present, and potential clients. Make phone calls and send emails. Keep your brand awareness in front of the people in this database. Kasey recommends a minimum of 10 calls per day.
2. Distribute door hangers. The door hangers in your community can tell people who you are and what you do. Showcase recently rented homes in the neighborhood on your hanger, and invite people to contact you if they’d like to know how much rent their home could earn.
3. Spend time on network referrals. Connect on Facebook and visit community forums where you can answer questions and establish yourself as an authority. Be an expert. Talk to people. Find out what they need. Showcase yourself as the resource that can help them.
4. Build Business to Business relationships. LinkedIn is great, but face to face relationship-building is even better. You have business to discuss with tax accountants, attorneys, real estate agents, brokers, and even your vendors. A lot of property managers don’t invest the time here because they don’t get anything from it right away. But, the trust and relationships you build will ultimately end up with more business.
5. Think about your vendor relationships. It can be easy to think about your carpet vendor as the guy who cleans your carpets. But, he’s surely talking to homeowners, landlords and tenants that aren’t yours, but might be thinking about buying a home. Kasey started inviting her vendors to a picnic every three months. It became a big event and she began offering referral bonuses to vendors who brought her new business. This is an area of growth that’s right in front of you. Your vendors can do more for you than clean the carpets and fix the toilets.

Example: How Personal Videos Can Work Respond to the desire for a personal touch. People want something personal, so send a message on social media or provide a picture or a video. Educational content is valuable, but a funny video or a personal message counts, too. It leads to a better relationship.

Kasey was working with a property management client who was struggling with ways to show that inspections were actually being completed. These inspection reports are often sent electronically, and owners rarely had any way to know that the property manager was at the house, doing the work.

So, Kasey’s client began making brief 25-second videos while at the property that could immediately be texted to clients. When one such message was sent to an owner who happened to be in California, Kasey’s client earned five new clients because that initial client happened to be with five friends who had investment properties of their own.

Property managers don’t always think like this. Open your mind and try new things. Show people what you do. Send a video text message after showing a property and let your owner know how it went.

You will struggle to get to this place if you don’t have the mind space. Another good reason not to get stuck in the day to day.

Setting Goals and Managing Expectations Goal setting and result tracking will depend largely on your market. You need to first understand your potential opportunities for property management profitability. How many doors are out there for you to grab?

Look at what you can do and look at the activities you can implement. Then, break it down.

For example, if you made 10 calls and spoke to 10 people, you might get half of those people willing to continue talking to you. Then, maybe 50 percent of those people will sign up for some sort of service with you. So, getting two new relationships out of 10 phone calls is a pretty good success rate. Out of those two relationships, if one of them gets into your pipeline, you’ve really done well.

Maybe you’ll set a goal for 30 new leads a month. Break down what that means. Out of those 30 leads, if five of them sign up for an appraisal, how are you doing? If you engage in a face-to-face discussion with 10 people every day, you could end up with 10-15 new doors in a three-month period. Is this achievable for you?

Once you’re meeting the initial goal you’ve set and it’s consistent success, you can raise the expectations.

Find out what works and be consistent. If you’re not able to meet the goals you have set, it’s either a marketplace issue or the activity isn’t being done correctly. Sometimes, the owner can be a bottleneck if the goal that’s being set is too high. Don’t de-motivate your people.

Bottlenecks in Results: What Blocks Success? Sometimes, the wrong individual is performing the wrong job. Make sure you have the right person doing your business development or your sales. If the activities are faithfully being performed and you’re focused on those top five growth activities but there are no results, it could be a person problem.

Either you have the wrong person doing the job or as an owner, you have set the target too high or you’re not providing the tools and resources to support the position. Make sure you’re spending money on marketing. Make sure you’re committed to the growth practices. Make sure you’re not micromanaging.

A huge bottleneck to growth is the owner who has to approve everything. Kasey worked for a business where she had to get the owner’s sign-off before she made a social media post or sent out a newsletter. It led to missed deadlines and late messages.

Create a guideline and empower your people. Then, get out of the way.

Make sure you understand the strengths and weaknesses in your own business. If your weakness is sales, employ someone who has the right skill set and empower them to do their job. Don’t break their hands, and don’t say no all the time. Let them flourish in the job and your business will grow.

This can plague established property management companies as well as new companies. Young companies can sometimes grow faster because they’re starting out with the latest technology and the newest tools. More established companies often have to be convinced to embrace those things.

What to Do Once Property Management Profitability Bottlenecks Are Identified As bottlenecks are identified, the best thing you can do is to work through them. Sit down with your whiteboard or your notepad or whatever works. Dive into your business and revisit what is working well and what isn’t working at all. Make some allowances for changes in the marketplace. Ask questions and identify priorities. Be open.

Flow charts and work flows are a great way to see what you could be doing more efficiently. Writing it all down forces you to look at things objectively. If you can do things more efficiently, you’ll notice where and how when you have it written out in a flow chart.

It’s also easy to turn negatives into positives when you’re writing everything out. If you don’t close a lead, put the process into a work flow and see where things broke down. Maybe you need a 24-hour contact period instead of a 48-contact period. Maybe a personal note in the mailbox as you’re leaving the home after visiting a prospect will help.

Not having a work flow in place is a bottleneck.

Myths can also be bottlenecks. Have you heard that a great sales person can sell anything?

It’s a myth. Your sales person needs to know what he or she is selling. Make sure our people have the training they need before they make even one call.

Here’s what you should take away from this conversation with Kasey: If you are an existing property management company and you starting to see bottlenecks in your growth, sit back and analyze what you have been doing. Work through it. Are you still on plan or do you need to revisit and make some modifications? The, map it out.

If you’re a start-up property management company, do the same thing. You aren’t revisiting a plan, but you are writing and implementing one.

Today’s podcast listeners can get a free 30-minute consultation with Kasey, so contact her at The Property Management Training Academy. Contact us at Fourandhalf if you have any questions, and make sure you stay tuned for more episodes in our Bottlenecks to Profitability series.

The post Bottlenecks to Property Management Profitability: Focusing on the Wrong Activities appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you dismissed using Bing Ads for your property management marketing? When it comes to pay-per-click advertising, almost everyone thinks of Google. That’s understandable; Google definitely owns the majority of the market when it comes to online search.

But, there’s a bit of a secret weapon out there that property managers can use to reach a different – and perhaps more qualified – audience. That secret weapon is Bing, and today we’re talking about why you should advertise on Bing.

Why Use Bing Ads for Property Management Marketing: Who or What is Bing? Bing is an online search engine that’s owned and operated by Microsoft. Like Google and other search engines, it allows users to search for web, video, image, and map content. It’s one of three search engines owned by Microsoft. They also own AOL and Yahoo, so when you advertise on Bing, you’re actually gaining access to all three platforms.

Take a Look at These Bing Statistics It’s not Google, but Bing holds a pretty strong position when it comes to online search. In fact, it has 34 percent of the search engine market worldwide. Here are some other statistics that will catch your attention. According to our data:

• There are 5.4 billion searches on Bing.
• Bing has 136 million unique users.
• When you advertise on Bing, you are in front of 63 million searches that are not being reached with Google Ads.

If you aren’t advertising on Bing, it’s time to start thinking about those lost opportunities. Your property management company, regardless of its size and market, has a lot to gain by being in front of Bing users.

Who is Using Bing? Bing users are a little different than the average Google user. In fact, when you advertise on Bing, you’re reaching an older and more educated audience. Take a look at the results of some recent research:

• 40 percent of Bing users are between 35 and 54 years old.
• Half of the Bing audience is over 35 years of age.
• About one-third of the Bing network has an annual household income of $100,000 or more.
• Almost half of the Bing network has an income of $75,000 or more.

This is pretty significant, especially when you consider the demographics of your average landlord or real estate investor. You want to make sure your advertising content is reaching the right audience. You can probably find a large part of that audience searching for content on Bing.

But wait, there’s more.

Based on recent research, we know that Bing users spend more time on pay-per-click websites and on landing pages. They also convert at a higher rate than the visitors using other search engine platforms.

This is important. You want to attract potential customers for your property management company, and you want them to spend as much time on your site and your landing pages. This leads to more business.

Using Bing Ads for Property Management: Conclusions So, rather than thinking that you should advertise either through Google Ads or Bing ads, think of a strategy that includes both platforms. Google still has the majority of the search engine market. But, there’s a lot to gain from Bing, and you should consider what you can achieve while you’re growing your property management company.

However, it’s important to note that pay-per-click advertising is not the be-all, end-all. If you’re truly interested in expanding your business, pay-per-click should be part of a larger property management marketing plan that is comprehensive and is tied to your goals as a company.

If you have any questions about online advertising or any other type of property management marketing, please contact us at Fourandhalf. We can help.

The post Paid Ads Part 3: Do Bing Ads Work for Property Management Marketing? appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Privacy is suddenly something everyone is talking about, and as a small or medium-sized property management company, you might not think you have to worry too much about it. After all, you’re not Facebook. You’re not Google. Why would privacy for property management companies be important for you?

But, you do collect information from people, and those people deserve to know what you’re doing with that information.

Our guests today are privacy policy experts from Termageddon. They’re here to give us some information on what you need to do in terms of addressing privacy concerns and data collection.

Introducing Atty. Donata Kalnenaite and Hans Skillrud Atty. Donata Kalnenaite and Hans Skillrud can be trusted to talk about privacy policies on websites.

As the company’s president, Donata is an attorney who practices privacy law and contract law. She’s a Certified Information Privacy Professional through the International Association of Privacy Professionals, and she wrote Termageddon’s policies to keep them up to date with the current and coming laws. Her job is to follow the different laws in each state and analyze what they’re proposing and what they’re passing. She’s also an expert in federal and international privacy laws.

Hans is the Vice President and co-founder of Termageddon, and works in sales and marketing. With a background in software and website creation, he has a unique ability to translate some of the complex legal content that people need to know when they’re thinking about online privacy statements.

Privacy for Property Management Companies: Why Should Property Managers Care About Privacy Laws? Privacy can be a confusing topic. It’s easy to see why large companies like Google and Apple and Facebook have to be careful about privacy, but why does it matter to a small or mid-sized property management company?

Most privacy bills and laws don’t have a revenue cap, which means you’re bound to the same rules and laws as companies that earn hundreds of millions in revenue. It doesn’t matter how much information you collect on people or how many people are sharing their information.

If you have a contact form on your website, you’re gathering personal data. That means these laws will apply to you.

Think about your tenants. You know where they live. You know how much money they earn. You probably have their bank account information, and you know if they have a dog.

This is sensitive information. So, you need to take privacy seriously.

Additionally, property management is a service-based industry. People care about privacy. Your tenants care and your owners care, and that means you need to care.

Personally identifiable information includes names, email addresses, and phone numbers. Laws protect people from taking that information from others without the proper disclosures. With all of the inquiries you’re getting from people all over the country and even all over the world, you need to disclose what kind of data you’re collecting and what you’re going to do with it.

You want your website to be viewed by a lot of people. So, you need a strategy for staying up to date with website privacy laws.

Privacy Policies and Different State Laws You might have been on a website where you notice there’s a different privacy policy stated for residents in different states. It’s hard to combine the privacy laws and requirements from different states into one blanket policy. Consumers from different states currently have different rights.

There’s a lot of debate about how to word everything. Your privacy policy has to make sense and it has to include all the required disclosures, and that can take some time to put together. It takes time and training.

A lot of people want to know when they need to begin including a privacy policy on their website.

According to Hans and Donata, you need to have one as soon as your website has a contact form. When you’re inviting people to share their information, you need to disclose what you’re doing with it.

Maybe you’re a property manager with contact forms on your website, but you never sell that information to third parties. You need to disclose that. You need to disclose whether or not you’re tracking people who land on your website. There are several disclosures that you may not realize you need to include on your property management website.

Are you offering a free rental analysis on your website, and asking for names and emails? You need a disclosure for that, too.

Privacy, Companies, and Consumers A number of bills have been proposed to allow individual consumers to sue companies for not disclosing what they are doing or not doing with data.

These laws are not on the books yet, but they are under consideration in several states. People will likely be able to sue companies for violating their privacy rights. Currently, a consumer would need to go the state’s attorney general and file a complaint. The attorney general would then decide whether or not to pursue a case. The Federal Trade Commission can also get involved if the privacy violation crosses state lines.

Think about the security certificates you expect websites to have. Five years ago, no one cared about those SSL certificates. Now, if you’re on a website that isn’t secure, it feels pretty bizarre.

Privacy issues are moving in the same direction.

Privacy Myths: What You Need to Know Some of the most common privacy myths that the Termageddon team members hear include the following:

• My website is secure, so I’m fine.
• My company is too small, it doesn’t matter.
• My customers really don’t care whether I have a privacy policy or not.
• No one will enforce these privacy laws.
• No one reads privacy policies.
• I’ll just copy and paste a privacy template from my competitor.

The myth that’s really alarming is the tendency to believe you can simply copy and paste any privacy policy that you see anywhere on the internet. You don’t know what criteria were used and what was left out.

There are plenty of online templates for privacy policies as well.

But, it’s not so easy. Property managers often caution landlords against downloading any lease template they find on the internet. They don’t know if it’s legally compliant in their own state, and they can’t be sure all the necessary information is included.

The same risk exists with online privacy policy templates.

They can also be deceptive if they’re trying to convince you they’re “free.”

Copying and pasting any template you find on other sites is problematic for more than one reason.

First, it’s a copyright infringement.

Next, it could have been written by anyone. When it’s a policy that’s on your website, you are responsible for it.

With the power of the internet, anyone can research anything with enough time. But, there are a lot of privacy laws that are different from state to state. Your website’s privacy policy has to accurately reflect them.

Get expert advice. You can certainly ask your eviction lawyer for some advice about privacy policies, but make sure you seek out an expert before you adopt a policy for your company and your website. Look for someone who studies privacy legislation and case law. Most divorce attorneys don’t do eviction law. And, most landlord/tenant lawyers aren’t experts in privacy law.

Are You In a State that Doesn’t Require Privacy Policies? You still need one.

Here’s why: the privacy laws protect the consumers in each state, and not the businesses in the state. So, if you have a consumer from another state using your website and providing their contact information, you are accountable for protecting that person’s information. Even if your own state doesn’t require you to.

About a dozen states currently have strict privacy laws. You’re bound to have website visitors from at least one of them.

One of the other myths we mentioned is that if a website is secure, a privacy policy isn’t needed.

Security and privacy are two different things. Even if your site is built well and fiercely protected, you still need to explain what your company is doing with data.

Consumers care about their privacy.

Additional Benefits to Privacy Policies for Property Management Companies Having a privacy policy raises your credibility.

It also helps your search ranking. Google likes to see privacy policies; they’re a ranking factor because Google looks for trustworthy websites, and privacy is a factor in trust.

As a property manager, you probably talk a lot about transparency. You’re transparent with pricing and you’re transparent with the services you offer. If this is a value that you offer your clients, a privacy policy needs to be part of the transparency you provide.

Vocabulary and Definitions You probably see these terms all the time. But, what do they mean?

Privacy Policy A privacy policy is a statement that talks about what data your website collects, what is done with it, and who it’s shared with. Those are the three main points that everyone wants to know. Those are the things you need in your privacy policy.

Terms of service and terms of condition Your terms of service should talk about the rules of using a website and the limits to a website owner’s liability. It may answer questions about refunds and cancellations. The terms of service can offer protection for you if you include a Facebook link. You don’t want to be liable for Facebook’s data sharing policy. This generally helps limit your liability if something goes wrong. If you’re hacked or if someone loses their information or gets a virus, the terms of service will cover you.

Privacy and terms of service are needed for almost every website.

Disclaimer Disclaimers limit the scope of rights and obligations for site owner and user. If you have an educational page where you talk about things like eviction, you might want to include a disclaimer that you’re not a lawyer and the information that’s being provided is not legal advice.

There isn’t a single place to find all the information you need on privacy, which is one of the reasons that the topic in general is so confusing. Donata recommends a few resources that she uses:

• Federal Trade Commission
• Information Commissioner’s Office (for EU)
• UK Data Protection Authority
• International Association of Privacy Professionals
• California Attorney General’s Office

Upcoming Laws and Legislation Privacy policies don’t have a shelf life, exactly, but the law is always changing, which means your privacy policy needs to continue evolving.

Two new laws are expected in the next six months, and after that, perhaps 10 proposed bills will be debated. Five of them are federal.

The problem with trying to write a policy that covers all the potential issues in every possible state is that you cannot possibly predict what will be required. For example, to exercise your rights as a consumer, you have to contact a company and say don’t sell my data. So, perhaps you want to follow this law no matter what state it happens to be in, so you let all your website visitors know that by sending an email or clicking a box, you will agree not to sell their data.

You might think you solved the problem. Until one state passes a law saying all companies must provide a toll-free telephone number for people to call if they don’t want their data shared.

Now, you have some re-writing to do.

We’re fortunate that we had Hans and Donata to talk to us about what we need to think about with privacy. The things they’d like you to remember are:

• When a website collects a name and an email address and a phone number, you’re collecting personally identifiable information.
• You have to care about privacy. Regardless of your company size, you’re never too small to afford your users the respect they want and deserve.
• Have questions about privacy for property management? Talk to a specialized attorney about privacy, or use a program like Termageddon to protect your company and your users.

We can help you find the right solution. Contact us at Fourandhalf, and we’ll tell you how to meet your privacy obligations.

The post Debunking Privacy Myths for Property Management Companies with Hans Skillrud and Donata Kalnenaite of Termageddon appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

After watching our blog on rethinking paid advertising for property managers, do you have questions about Google Ads? We know that some property managers feel Google Ads is getting more expensive. If that’s you, you’re not alone. Today, we’re talking about why it seems like you have to spend more money to market your property management business with Google Ads, and what you can do about it.

Property Managers and Google Ads: Pricing Depends on Competition Google Advertising works like an auction. You pick the maximum amount you’re willing to pay for clicks, and your competition does the same. Then, Google takes a look at your bid, your quality score, and the bids and quality scores of your competition, to determine who places highest in search results and who comes in second, third, and so forth.

The bids are not the only things that matter. Your quality score is made up of a number of things, including:

• Expected click through rate.
• Landing page experience.
• Ad relevance to the user’s search terms.

So, improving your quality score will improve your ranking without spending more on Google Ads. To improve your quality score, you need a better landing page and better ads.

Improve Your Quality Score You can always increase your bids and pay more money to beat your competition and rank higher.

But, you may not want to increase your financial investment. So, you need to improve your quality score and become more relevant to Google and its users.

It’s important to remember that Google is acting like a referral service. They want to provide the best possible information to the people who are searching the site and they want to provide the most relevant search results.

You can help Google by knowing your ideal client’s pain points, and providing the most relevant ad copy that addresses those pain points. Think about what you offer that your competition doesn’t offer. Those are the things you should focus on in your ad.

What will make the people searching for property management help click on your ad? If you give them something interesting to follow, you’ll draw their attention to your landing page, and drive up your quality score. Google will notice.

Instead of paying more, you can provide more.

Evaluate Your Landing Page After someone clicks on your ad, they’re directed to a landing page. This landing page should address all the same pain points that your ad mentioned. Your landing page might be the most beautiful page out there, but if the information isn’t useful, you’ll lose visitors before they can leave their contact information. You want the landing page to look nice, but it’s more important to provide the details of why and how you’re going to help the people who have clicked on it. Make sure it’s easy to see what your services are and how they help.

The Right Strategy For Property Managers Using Google Ads While Google Ads is getting more expensive, you can still get a lot out of a Google Ads campaign, especially if you can focus on having the right marketing strategy. Make yourself stand out from your competitors, and you’ll be successful on Google.

If you need any help with pay-per-click advertising or any type of digital marketing for your property management company, please contact us at Fourandhalf.

The post Paid Ads Part 2: Why Google Ads is Expensive and What Property Managers Can Do About It appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Today we have a pretty cool guest on The Property Management Show Podcast. Shawn Johnson of Independence Capital Property Management is an investor and property manager, and he shares a lot of golden nuggets that will help property managers attract investors, and work better with investor clients.

Our focus is on the relationship between investors and property managers, and how the two worlds come together. There are a lot of misconceptions that keep investors from working well with property managers, and there are also misconceptions that keep property managers from offering more value to their investor clients.

We’re talking about solutions to all of that with Shawn.

Introducing Shawn Johnson Shawn bought his first house in 2002 when he was 20 years old. The market was taking off, so he lived in the house as his primary residence for two years and then sold it, netting $65,000 in profit. That experience gave him the real estate investing bug.

His goal was to have three income-producing properties by the time he was 27 years old. That didn’t happen. He bought a car wash instead.

After that great first experience, he bought a property to flip. But he broke even and didn’t make any money on it. This was disappointing, but it didn’t stop him from becoming a smarter investor. He decided to forget flipping and invested in long-term rental homes instead.

The entrepreneurial bug took over and Shawn decided to make things happen.

He began acquiring more properties, and the first few rentals he managed himself. But, as soon as he brought staff onto his property management company, he was happy to hand over the management of those properties to the team of qualified property managers he had hired. Now, he has a portfolio of properties local to Farmington, New Mexico, and he also owns rental homes in Indianapolis. Those investments are also in the care of an experienced property manager.

How Property Managers Can Attract Investors: Being an Investor Makes you a Better Property Manager Being an investor yourself shapes the way you run your property management company.

Investors want three things:

• • The best tenant.
  • The fastest tenant placement process.
  • The highest rent.

Knowing this on a personal level has helped Shawn serve his investor clients better. It informs the leasing process at his company, and it allows him to share a different perspective for how to maximize investor gains.

If you’re a property manager who also invests in rental properties, you should position yourself as an investor-minded property management company. This is a shift that Shawn has made in his business over the last couple of years.

When current clients are asking to leverage their existing property to buy more rentals, you’re providing more value and growing your business. You can help clients with self-directed IRAs if they want to convert their 401k plan to buy investment property.

Make yourself available to investors as an investor.

Growing Your Business with Current Clients Knowing your pool of existing clients can help property managers attract investors. When you decide to grow your business, you can go after new clients, but you can also see how you might be able to help your current clients.

Shawn noticed that his current investors were telling him they’d been thinking about selling their properties. Instead of putting those properties out on the open market, Shawn considered two things – did he want to buy the property himself? And, did he have other investor clients who might be interested in the opportunity?

When the property your investor is selling seems like a good fit for your own portfolio, you can probably work out favorable terms. If it’s not the right investment opportunity for you, set up a pocket listing program for your other clients. This is an excellent way to grow your business with your existing pool of clients.

Sometimes, owners learn quickly that they don’t like being landlords.

Shawn had a situation where he took over an owner’s property with a $30,000 down payment. That gave him two homes worth $350,000 that immediately cash flowed because the seller offered zero percent financing for two years.

These opportunities are available to you. Know how to find them and be prepared to take them.

Did you catch our blog on capturing more investor leads on your property management website? If not, that’s a great place to start building your investor clientele.

Changing Your Mindset to Avoid Short-Term Thinking Real estate can sometimes be a short-sighted industry. It’s hard to look at the long term because this is a sales market, and every broker or Realtor is chasing that next commission. But, if you take the $10,000 commission you earn on the next property you sell and buy a rental property with it, you’ll eventually turn that money into $300,000.

Not a lot of property managers and real estate agents are willing to think this way.

But, Shawn says it’s the only way he thinks.

There’s a big misconception that you need a lot of cash to buy property. Shawn says he has bought a lot of houses with no money.

It could be a mindset problem and it could be a priority problem. Do you want to use your money to buy a nice car now, or do you want to invest it in a rental property in which you will accomplish two things:

• You’ll earn a lot more than that new car will ever be worth; and,
• You’ll be able to provide better property management as an investor yourself.

You can buy houses with zero money down. As long as you have a little bit set aside for the furnace that might break down, you can own an investment home yourself. You should own an investment home yourself.

It’s important to understand compound interest and the way it can create generational wealth. Work out the numbers so you can see how well rentals perform and cash flow over time. If you invest $10,000 to buy a home and you’re earning $300 in cash every month, it might seem discouraging for a while. But, when you think about the $300 per month over the span of 40 years, you realize how much money your property is actually earning. And, that doesn’t even include the appreciation of the home.

You also have a tenant who is paying your mortgage and your expenses. When you don’t have any debt, you can use your cash flow to buy additional rental properties and then you’re really leveraging what you have and what you earn.

Don’t miss these opportunities to create generational wealth.

Relationship Issues: Property Managers and Investors There are some misconceptions between property managers and investors that can damage relationships.

Sometimes, property managers get into a trap where you assume all investors have a lot of money. So, when the furnace needs to be replaced, you expect the investor to simply make it happen.

But, life happens to investors, too. There can be personal problems and divorces and health issues. So they might have some financial struggles of their own. They’re not trying to be bad landlords; they’re just in a tough situation.

Shawn tells all of his investor clients to take at least their first year or two of cash flow and put it into an account for savings. If they don’t touch it and they save $4,000 or $5,000, they’ll be protected if an expensive repair is needed and they don’t have the money.

Property managers need to stop thinking all investors are rich.

On the investor side, they usually think all property managers are the same. They assume your only role as a property manager is to find a tenant and collect rent.

You know that’s not true.

Investors also may have the misconception that property managers just collect their management fees and don’t really care about the properties or their clients.

You know that’s also not true. Most property managers are stacking nickels to make a dollar in this industry. Even if you’re fee-maximized, it takes a lot to turn a profit in the property management industry. This is a DIY culture. It’s sometimes hard to explain your value to investors unless they have 10 or more properties and they can’t keep up.

Understanding the perspective of both sides can help property managers attract investors.

Encouraging Accidental Landlords to Continue Investing A best-case-scenario for a property manager might be having one of your accidental landlords decide to invest in another property, and then another one.

This strategy depends on their success with the first property they’re renting out. If they’re upside down with their existing rental, meaning the amount they collect in rent doesn’t cover their expenses, they aren’t going to be very enthusiastic about buying another rental.

But, if they see the benefits of investing with their own rental home, you should absolutely encourage them to buy additional properties, and to show them how to do it. This is another reason that you need to have investment experience of your own.

When Investor Clients Push Back Perhaps your investors aren’t interested in new opportunities and properties, and they tell you they just want you to focus on finding a tenant and collecting rent.

How should you respond?

Shawn suggests you explain that you have many processes in place to ensure you’re maximizing your investor’s long term returns. You should also explain that you want to minimize the risks involved in owning a rental property.

At Independence Capital Property Management, there are various programs including:

• Rent Loss Protection
• Property Protection
• Eviction Protection

While these protection programs are generally geared towards reluctant landlords who aren’t prepared for bad situations, many investors hesitate. So, Shawn or his BDM has to explain the rationale behind them. With these plans, investors don’t have to worry if a tenant loses a job.

Something property managers might not know – credit score rarely reflects the likelihood of eviction. He looked at all of his application data, and none of the evictions he ever did were on people with low credit scores. There’s no relation. People get evicted because they lose their jobs, and that can happen to someone with a 780 credit score.

It’s not just the packaging that works. It’s how you present the package to those investors who are skeptical or who think your only job is to find a tenant and collect rent. Presenting the package with all the right information will help property managers attract investors.

When You Want to Invest but Can’t Go All-In There cannot be any bias or any perception of bias when Shawn’s team manages his properties as well as client properties. That expectation is set with staff from the very beginning. And, there are staff members who also own rental homes. They are not permitted to manage their own properties. This is important in maintaining objectivity and the best possible service standards.

Currently, Shawn is talking about a program where more of his staff members can become investors. He loves helping to build wealth for others, and it’s a great incentive for his employees. When someone cannot put in a lot of money but wants to own a property, they can pool it with others and then everyone owns a share of the investment. It’s received positive feedback from the company so far.

If you’re in a similar situation and you want to invest a little bit in rental properties but not take on all the risk, Shawn recommends you participate in syndication or a Real Estate Investment Trust (REIT). You’re still risking your capital, but the chances of the investment not performing are far less.

Property Managers Becoming Investors: 3 Things to Remember Choose credible investment partners. Buy properties in LLCs and make sure you have an operating agreement.

Remember that real estate is the best possible investment because you won’t ever see a zero dollar value asset. Even if the house burns down, there’s insurance. Stocks can go to zero. Or, they can turn into penny stocks and lose serious value. Real estate will always be worth something.

Don’t invest if you don’t have the finances to support the home and provide a safe and functioning rental for tenants. That can get you into a sticky situation. If you have $100,000 to invest, don’t buy a $100,000 house. Buy an $80,000 house instead so you have some money in reserves. If nothing happens and you don’t need those reserves, great. You can buy another property.

How to Help Investors if You’re 100% Property Management If you’re a property manager who also sells real estate, helping investors buy and sell homes is a no-brainer. But, if you’re a property manager with a company that focuses solely on property management, how can you offer more to your investment clients?

Shawn suggests two things. First, educate yourself. This is easy to do with all of the real estate investing podcasts, websites, and books that are available. Second, do an event or some kind of investor gathering. When investors find out you’re a professional property manager, you’ll be the expert in what types of properties are best and how well they’ll cash flow. Get your message out there, and you’ll attract investors who want your help.

You should also build relationships with the Realtors who are investor-minded. Take them out for coffee or dinner and explain your interest. Show them you’re not a competitor and offer to talk about throwing business to each other.

Today’s biggest take away: Stop thinking short-term and start thinking long-term.

Other things to take with you:

• You can create your own wealth.
• You need to understand compounding interest.
• Investing in rental property reduces your tax liability.
• If you’re a real estate agent, talk to your CPA about the real estate professional’s deduction.

You can create your own wealth. We hope these tips will help our property managers attract investors. If you have any questions about this, reach out to Shawn Johnson at Independence Capital Property Management or give us a call at Fourandhalf.

The post Investment Inception: How to Get Investor Owners to Trust Property Managers, with guest Shawn Johnson appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

When people think about paid advertising for property managers, otherwise known as online advertising, the first thing that comes to mind is Google AdWords (now Google Ads), and sometimes the term PPC or Pay Per Click comes up.

But is this all there is to online advertising for property management companies?ann

Today, Fourandhalf’s Director of Product Development and Marketing, Marie Liamzon, will help you rethink what paid online advertising means for property management companies.

Paid Advertising for Property Managers Many property managers we talk to have either tried Google Ads on their own, or had a local company do it for them. Sometimes their ads are a success, sometimes they aren’t. There are many factors that play into the success or failure of a campaign, which we will talk about in an upcoming blog.

Even if you’ve run successful Google Ad campaigns, you may have noticed that advertising on Google is becoming very expensive. Check out our upcoming blog with one of our Digital Ad Specialists, Amanda, who will explain why this is happening, and give you some practical tips on optimizing your campaign to get more bang for your buck.

Should Property Managers Give Up Google Ads? Now, if you’re a property manager who has not found success using Google Ads, don’t reject all online advertising just yet.

You may have heard of multi-channel marketing, or using several different mediums and platforms to market your services — for example, using digital ads, direct mail and billboards to reach different audience segments. Similarly, your digital ad strategy should include several platforms — don’t put all your eggs in one basket, such as Google Ads.

Types of Digital Ad Platforms Other online advertising platforms include Bing (now rebranded as Microsoft Advertising), and even Facebook.

Facebook A word about Facebook — when we talk about Facebook advertising, we don’t mean boosting posts. We mean creating ads on Facebook that actually get you leads. We’ll dive deeper into this topic in a future blog post. But in the mean time, make sure to read about what a Facebook “Like” really means to your property management business.

Bing/Microsoft Ads Bing/Microsoft Ads is often overlooked because it’s a less popular search engine. However, using this platform puts your company in front of different sets of eyes. People who use Bing or Yahoo as their default search engine typically don’t use Google, which means if all you’ve been doing is advertising on Google, this subset of people have not yet seen your ads, and may not have even heard of you.

In a few weeks we’ll put out a more detailed blog post with Marina, our Digital Ads Team Lead, in which she will discuss Bing Ads in detail.

Conclusions about Paid Advertising for Property Managers It’s important to note that what might work in one market might not work in another, due to differences in population, impression share, average cost per click relative to budget, and so forth.

This is why it’s better to think of online advertising not as Google Ads PPC, but as a multi-faceted section of your overall marketing strategy.

If you have any questions about online advertising for property managers, or need help coming up with a marketing plan, contact us at Fourandhalf.

The post Paid Ads Part 1: Rethinking Paid Advertising for Property Managers appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Eric Wetherington from New Heights Property Management has more than 25 years of experience starting, acquiring, and managing dozens of companies. He is joining The Property Management Show today to discuss responsible property management growth. We talk about what that is, and how to maintain it when you’re growing a property management company.

Introduction to Eric Wetherington Eric is the director and broker in charge of New Heights Property Management, which he started 10 and a half years ago in partnership with a large real estate firm in the Charleston area. The real estate agents realized they didn’t have a solution for the homeowners who couldn’t sell their houses during the last recession. So, he began the property management company and it quickly grew.

In addition to starting and growing New Heights Property Management, Eric has helped to develop and grow other companies. He got into the real estate services industry 25 years ago, and he has helped to build business entities like joint ventures and title companies, giving him a lot of start-up experience. He likes to see growth happen and he’s learned to think on his feet.

Defining Responsible Property Management Growth Responsible growth requires three things: * An engaged team. * Great services offered to clients. * Profitability.

This is what responsible growth looks like.

If all of these things are happening in your company, then you’re growing. It starts with your great team, and that team has to provide valuable services that keep your customers happy.

Profit is also important. If you think you have a business but it’s not making any money, then what you really have is a hobby.

You might seem to be growing year over year, or month over month, but if no profit is increasing the bottom line, you don’t fit the definition of responsible growth.

If your team members hate what they’re doing and they don’t enjoy coming to work every day, you’re not embracing responsible growth. Check out our episode on how to build a great property management team with Melissa Prandi for more information on this.

Property management is a service industry, so if you’re not providing value to your clients and they aren’t happy or they’re in a hurry to leave you, then you’re not growing.

Team, service, and profit. These are the things that define responsible property management growth.

How to Balance and Master the Responsible Property Management Growth Elements Every entrepreneur makes mistakes, and one of the things Eric learned from his mistakes is that your business and your team will only grow to the level that you’re growing as a leader. You’re the cap of your business. So, whether you learn best by reading books or listening to podcasts or attending conferences – get comfortable with the three growth elements (team, service and profit), and learn how to balance them.

Much of your understanding as a business leader will come to you through trial and error. You learn and grow by making mistakes. Don’t be afraid of that, and don’t be afraid to shift perspectives and make responsible growth a priority for your property management business.

Leading a Team Towards Responsible Property Management Growth Every good leader knows that the team has to come first. You have to hire the right people and put them in the right seats on the bus. If you put your team first, your team will take care of your customers. When your customers are well cared for, you naturally become more profitable.

Everyone is accountable for responsible growth, but the leader of the company is ultimately responsible for it. A good leader will ensure the team has bought into this growth plan. Standing up in front of the team to say “we’re going to double sales this year” is not a great way to lead. If you want to set that goal, you need to be prepared to have a plan that will support it. More importantly, you’ll need to show your team members where they fit into that goal and how it benefits them.

Show your team what winning looks like and how it’s going to benefit them. When your team members are being asked to put in the time and energy that’s required to reach a certain goal, they want to know why the company is going in that direction. And, they want to know why it’s good for them individually. A good leader will cover all of that and be ready to personalize the goal for each team member’s level. Let them know how they’re impacted. That will build engagement.

In the staff meeting Eric recently held, his Business Development Managers (BDMs) were sharing how easy it has become to sell their property management services. Most of the potential clients they’re calling on have already read the great reviews that the company has received online. Those prospective owners feel like they know the company already, so the BDMs don’t have to spend a lot of time making a hard sell.

Those reviews are achieved by the team that’s delivering great service.

You see how this is working? Everyone understands their role in producing happy customers. That makes the growth a lot easier.

Think of your team as a pyramid.

Each part of the pyramid is critical to its balance. You can’t remove the middle piece of the pyramid without it collapsing, and you cannot take a piece from the side without it toppling. Each team member must understand his or her unique role in creating and maintaining a stable company.

Everything Starts with a Plan The planning process takes a lot of work. Leaders cannot unleash an idea and then leave the team to plan and execute it. You’ll need to have conversations and you’ll need to map out the goals and how to reach them. You’ll need large meetings, small meetings, and one-on-one meetings. You’ll need to provide constant reinforcement. In business, you have to say things seven times before people really start to hear it and understand it and buy into it.

You also have to say it in different ways. Whatever the growth or the goal you’re trying to accomplish, be sure it’s a consistent message. Your team needs to hear the same thing in meetings, company newsletters, internal video messages, or whatever you’re doing to communicate. Keep the message consistent so everyone understands its value.

As a leader, you need to understand the highest and best use of your time. Unless you’re the only person in the company, someone else can probably be responding to tenant complaints and calling back owners. You need to create space in your schedule to think and plan.

Not a lot of property management leaders are good at this.

They don’t go into that quiet room and set aside the devices and shut down the potential interruptions. Eric gets out of the office to make time for his planning, thinking, and strategizing. Leaders need to protect this planning time whether you’re thinking through growth opportunities or defining the best way to maintain your current business.

Put yourself in a position where you won’t be distracted. Brainstorm. Think about the best ways to accomplish an objective. This is one of the most important uses of your time as a leader. So make the space.

Eric dedicates one afternoon a week to this practice. He also has a monthly and quarterly practice where he’ll go somewhere quiet and catch up on industry reading and spend time thinking and planning. This is a critical part of his success. He’ll look at numbers and analyze metrics and determine what seems to be working and what needs help. It’s a mini strategic review.

Customer Happiness (or Unhappiness) is a Red Flag During your planning and thinking time, you need to be sensitive to any red flags that might show you that things need to be re-worked.

For Eric, the most important example of this is customer happiness. If there are complaints from customers that calls aren’t being returned, it’s an indicator that something is wrong.

First, he’ll evaluate whether it’s a problem with a system. Perhaps there’s a technical reason that customers aren’t getting what they need.

Then, he’ll take a look at the process to determine whether there’s a problem with time management or workflow. Perhaps property managers are spending too much time out of the office and cannot be responsive to their clients.

If it’s not the system or the process, there may be a problem with people. Perhaps someone on the team doesn’t understand the importance of getting back to owners and tenants with a sense of urgency. Or, maybe they’re burned out and overworked. They could be struggling with issues in their personal lives and are therefore distracted.

This is one example of a red flag – but customer complaints is a pretty big flag, and one you should respond to immediately as a leader.

Practice Explaining Your “Why” Not all companies are run by one decision-maker.

Perhaps you have a partner and you are usually aligned but one of you wants to pursue fast growth and the other wants to maintain the business where it currently is.

The important thing here is to communicate and to understand why you and your partner feel the way that you do.

The growth-oriented person might see new opportunities. The maintenance-focused person might want to enjoy the freedom and the success of a successful business.

Partnerships can be great, but they can also be challenging. Ultimately, someone has to make the final decision and once that decision is made – it needs to come from a unified leadership presence. You cannot have your team feeling the division in opinions.

Some partners work with a rotating presidency. Maybe there are three or four decision-makers, and each of them will have a year where they serve as president and their role is to make these final and difficult decisions about the direction of the company. With the right people, this can work well.

You don’t have to be on the same page, always. Disagreement and debate among company leaders is healthy and it’s good. But, once you take something to the full team, all of you need to be behind it. You need one voice, saying one thing.

Growing to the Point of Leadership Every business situation is different. Some owners are merely investors and they have a person in charge of the day-to-day business operations. That’s okay, and it can work.

When Eric started his company, he was the only one working the business and after six months, he was already slammed with referrals and a lot of business. He knew he wouldn’t be able to manage it for very long. He was going crazy with all the work, and he knew he didn’t want to spend his time hanging signs and putting lockboxes on doors.

His plan was to grow enough that he could hire someone to do all of the things he didn’t want to do. His idea was to surround himself with people who did want to do that work. Then, he could focus on strategic planning and business growth. He had to put in the work to get to the point where he could make those hires, but it was motivational.

If you’re still in the beginning stages of where Eric once was, you can make some time for your long-term thinking and business planning by hiring virtual assistants and taking advantage of technology. When you can offload or automate some of those tasks, you can get yourself closer to bringing on full-time staff.

Before you begin to build your staff, you need to have a good idea of what you want. Those new employees will not be able to read your mind. They’ll need the handbook. They’ll need the procedures. Give them the policy manual, and invest the time and resources to train them.

Otherwise, it’s a disaster. Smart people can figure things out, but that takes time. Save time by being prepared for them to work with you.

When it comes to growing your team, there’s a five-step process.

• Hire the right people.
• Provide training.
• Provide tools.
• Provide clear expectations.
• Get out of the way.

You don’t have to micromanage the right people. Just make sure they have what they need to do their job.

If something is not working with one person, you need to have the difficult conversations.

Talk to your employee about what’s not working. Don’t listen to the first answer; dig and dig until you get to the root of the problem. Maybe they simply didn’t know something critical to their job. Maybe they haven’t had enough training. Maybe they’re doing the wrong job.

Or, maybe they don’t belong in your company.

If you notice that someone isn’t a good fit, don’t prolong the firing process. That’s not fair to you, your company, your other employees, or the person who you aren’t interested in working with any longer. That person who isn’t working well at your company can probably find something that’s a better fit. Don’t keep him or her from pursuing a better opportunity.

Have the difficult discussion. Tell that employee that things aren’t working out, and why they are not likely to get better. Decide together that it’s best to shake hands and walk away as friends. That employee will find something more fulfilling and you can find someone who meets your needs.

Growing a Business Means Growing a Team When property managers hear the word growth, they inevitably think of growing more doors.

But, to grow responsibly and sustainably, you have to grow your team.

Growing your team comes before growing your doors. This is why you have to invest in their training and their professional development. Encourage your team members to get better at what they do. Sometimes, leaders will worry that they’ll spend all this money training and improving their employees, and then those employees will leave in two years and go work for a competing company.

But, what if they stay with you for 10 years? What’s worse – losing a well-trained employee or retaining an employee who isn’t trained and improving professionally?

Invest in your team. Coach them. Provide opportunities to attend classes and do more.

Let them follow their own path. If Eric hires a team member who really wants to be a rocket scientist one day, that’s okay. Eric’s company is never going to do rocket science. But if he supports that employee’s ultimate goals, he’s going to get the best possible work out of that team member while they are with New Heights Property Management.

Responsible property management growth comes back to investing in your team. It leads to service and profitability.

You don’t have to be a huge property management company. When it comes to growth, too much emphasis is often put on being in multiple markets or managing 1,000 doors. You don’t have to do all that.

Don’t compare yourself to other companies and other entrepreneurs. Look at where you are and why you want to grow. Things change rapidly in the property management industry. A five-year plan used to be standard, but now you can really only plan for the next 24 months. That’s how quickly things can change.

If you have any questions about responsible property management growth, please contact us at Fourandhalf. We’d love to talk to you more about what we’ve discussed today with Eric or what we can do for your company.

The post Understanding Responsible Property Management Growth with Eric Wetherington appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Why Create Property Management Video Blogs? We have worked with hundreds of property management companies over the years, and we’re always encouraging them to create content that can help them grow their business. Usually, this includes a property management video blog.

The number one pushback we get is that it’s really hard to do video blogging. You know it’s important for your business — they demonstrate your expertise, put a face to your company name, and help your website’s SEO — but maybe you just don’t feel comfortable in front of the camera.

We get it. And if this sounds like you, we have five tips that make it easier for you to be on camera, and feel confident creating your property management video blog.

Property Management Video Blog Tips #1: Start With the End in Mind The first tip is to start with the end in mind. It’s very important to identify the key takeaways that you want your audience to know when they’re finished watching your blog. This will make it easier for you to plan what you want to say and develop talking points. Introducing your topics will feel more natural, and you’ll have the advantage of knowing what your call to action will be at the end of the blog.

#2: Write an Outline, not an Essay Your outline does not need to be a full write-up of what you want to post or discuss in your property management video blog. Instead, start with some brief bullet points and quick topics that you want to cover. If you’re already nervous about being in front of the camera, you’ll only add to the pressure when you have a full essay written out and you want to remember the perfect word or phrase.

Do yourself a favor and write out basic bullet points that will just jog your memory while you’re speaking. If it’s absolutely necessary for you to write out your blog first, do not pressure yourself with having to say the exact words you’ve written down. Paraphrase as much as you can. A lot of the time what looks good on paper or on your computer screen may not roll off the tongue very easily, or sound conversational. Your video does not have to match the write-up word for word.

#3: Breathe Deeply and Smile Studies have actually shown that deep breathing exercises relax you. Right before starting your blog, remember to take a deep breath and smile. You have no idea how helpful that is in setting the right tone for your blog. Always start and end your property management video blog with a smile.

#4: Pretend You’re Giving a TED Talk This is the technique that Marie uses when she records blogs. It helps you take yourself seriously, and it allows you to envision yourself in a setting where you’re providing important information to an engaged audience.

#5: Finally – Have Fun with Your Property Management Video Blog! Always have fun with your property management video blog. Although the main reason to do video blogs is for property owners to find you, it’s also an opportunity to show viewers your authentic passion for property management. Consumers prefer brands that are authentic and real. You want to make sure you are letting your personality show so they know who they’re talking to when they pick up the phone and call your company.

Good luck with filming your blogs, and if you need any help, please don’t hesitate to reach out to your digital marketing team at Fourandhalf.

The post 5 Tips to Feel Comfortable on Camera appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Direct mail marketing for property management is making a comeback, and we have asked Brian Pavek from SmartZip to join us on the podcast to discuss the role data plays in this space.

Over the past several years, the team behind SmartZip developed a scoring metric for the real estate industry that’s able to predict which homeowners will sell their home in the next year. Recently, they’ve expanded their data aggregation and analytics to serve property management companies. This is why Fourandhalf works with them to provide a data-driven direct mail marketing solution to property management companies.

But before we dive into direct mail, let’s first talk about the basics.

What is Data-Driven Marketing? In a nutshell, data-driven marketing means working smarter, not harder. It involves using collected information about a group of people and strategically targeting those who are qualified to work with you. Here’s an example: If the total population in a town is 5,000, how do you know which of those people actually own rental properties that you could potentially manage? The answer is data. Would you rather market to the whole town, or only to those who own the types of properties your company can manage?

Data-driven direct mail marketing for property management companies helps you reach the right prospects. If you’re looking at a target market with 5,000 homes, you can take one of two approaches:

The first approach is when you have a smaller budget. So using data-driven direct mail marketing as an example, you’ll send out 500 pieces of mail to homes in that market. Those are blind samples. You don’t know which 500 households will receive your direct mail, but you know that’s the number you can afford to reach.

The second approach is when you can afford to reach every one of the 5,000 homes. You send your direct mail marketing to every address. This is still pretty blind; out of those 5,000 homes perhaps only 1,800 of them are investor properties.

Data will help you decide who gets your direct mail. Would you rather send out 500 mailers blindly or send out 500 mailers to people who you know may need property management services?

The data removes the blind targeting in direct mail.

You need three things for an effective direct mail marketing campaign:

• The right message
• The right recipients
• The right timing

The data is valuable and it provides a greater opportunity.

Consistency and Commitment: Direct Mail for Property Management is Part of a Larger Strategy By now, you know that effective property management marketing requires a multi-channel strategy. Your direct mail marketing for property management should fit into the rest of your marketing, and you have to commit to tracking results for a few months. If you try it in one month, you could get great results. But, you might not. This doesn’t mean it’s working or not working. Sometimes, it’s just not the right time for people to receive your piece of mail. You can always be on-point with message, and the data will ensure you’re reaching the right people. Timing is always variable. That’s why a long-term commitment is needed.

Most consumers require eight touches to respond to branding. You need repetition in order to be successful.

Why is Direct Mail for Property Management Cool Again? For a long time, direct mail marketing for property management got lost in the shuffle because online advertising arrived and it had a tremendous impact. Online advertising is still important, but a lot of people are using ad blockers because they’re annoyed by the constant online ads they see. Almost everyone has that one email account they never check but use for spam emails from companies trying to sell them stuff.

Direct mail either provides people with information or triggers a desire.

In either case, the goal is to get in front of potential customers.

Direct mail never stopped working, it just became really tedious. Now, companies like SmartZip are helping to make it cheaper and automated. It’s making a difference.

Instead of four or five steps, there’s one step. You pretty much click a button and you’re sending a beautiful piece of direct mail to a targeted audience.

Consumers aren’t going to respond to your direct mail unless you are making their lives easier or providing some type of advantage.

The automation has made direct mail more affordable. You know you’re only sending mail to addresses that can receive it, and your targets are relevant. Working with a data analytics company will allow you to access data that has been gathered and digested. You’ll have access to street addresses as well as email addresses and phone numbers, providing a comprehensive platform from which to build your multi-channel marketing strategy.

Data is what makes direct mail worthwhile. Don’t move forward with direct mail unless your data is reliable, otherwise you won’t get much value.

How to Measure Success with Direct Mail Success starts early. If you’re sending your direct mail to a more reliable list of people – that’s success. Even if you’re not closing more sales in the first month, you’ve still succeeded by sending the direct mail only to the people who will benefit from it.

Reducing your cost is also a success. When you market to 300 people who are definitely potential clients, it’s cheaper than marketing to 5,000 people who may not have any need for property management. That’s a success measurement.

The data is making you smarter when you market through direct mail. That’s a success.

Success looks like two things when you’re launching a direct mail campaign: getting what you need from your vendor, and having a plan to convert the people you’re reaching into customers.

Direct Mail Trends are Rarely Consistent It’s hard to know where and when direct mail works the best. It’s that timing piece that no amount of data can predict. Perhaps your direct mail piece is landing in the mailbox of a landlord who already has a property manager. So your postcard will not get much attention. But, three months later that property manager has done something to irritate the landlord you’ve been sending mail to. Now, he or she may be ready to give you a call.

This inconsistency is almost like a false positive on a test. You need to keep sending out your direct mail because you never know when the right time will be. You already know you’re reaching the right people. But you don’t know when the message will resonate the most.

Think about billboards. Everyone drives past billboards, but no one calls while they’re in the car, looking at the billboard. It’s something that you remember. Repetition works. It eventually delivers a response. Familiarity matters. Your favorite restaurant may not be the best market in your city. But, it’s the one you know. So you keep going back.

Another good analogy is the mp3 player. When they first came out, everyone called it an iPod. Not every mp3 player was made by Apple. But, they had established themselves as the brand that delivered music digitally.

Message Matters: You Need a Clear Call to Action You need a follow up plan for after your direct mail goes out, and you need to make sure it has a clear Call to Action (CTA). Tell your potential customers what you’re offering and what they need to do.

Make sure all of your property management marketing is consistent, too. They might not go to the landing page that you’ve created to go with the postcard you mail. They might Google you instead. If they see information that has nothing to do with the direct mail they’ve received, there will be confusion.

Your message must:

• • Address paint points
  • Provide a CTA
  • Align with your other marketing and branding

You need to reach the right people with the right message at the right time.

What are you doing that no one else does? Where can they go to learn more about you?

Why should these customers talk to you? If you can’t answer that question, you should not be sending out any direct mail. People get marketed to so much – even subliminally – that they need a really good reason to reach out to you.

Timing: When Do You Know Direct Mail Marketing for Property Management is Working? The amount of time you need for direct mail to work depends on the scale and scope of your strategy. If you’re working on a larger scale, it will take less time for you to see results because you’re working with a wider sample. Three or four months of direct mail should really provide some great opportunities. If you’re marketing to 500 customers instead of 5,000, you will need an extra month or two to see the same results.

You may get a great response after your first mailer. But, you should plan on tracking the response rate for at least six months to a year to know that the data is really working for you.

Sample size is a big factor and you have to invest more than a month. People have short term memory. If you send something every two or three months, it’s like you’re making a first impression every time. Send your direct mail every month and follow up with emails and ads. Then, you’re building a brand.

Thanks to Brian for talking to us about the innovation of using data to drive your direct mail marketing campaign. If you have any questions about this topic, or you’re unsure about whether you should consider direct mail as part of your marketing strategy, please contact us at Fourandhalf – Marketing Solutions for Property Managers.

The post Deep Dive into Data-Driven Direct Marketing for Property Management Companies appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Are you getting ready for a property management website build, or a fresh redesign?

For most businesses, building a solid online presence starts with a website. Property management companies are no different. You can think of your property management website as a centralized place where people can interact with your content. They might visit your site to learn more about your business, or about the services you provide. Property management websites will also need to provide a way for visitors to contact you.

Today on our property management blog, we’re going to talk about how to prepare for a property management website build or redesign.

When planning out a new website, there are three components you want to keep in mind:

• The type of website you need
• The website framework
• The content

WHAT’S YOUR WEBSITE’S OBJECTIVE? When it comes to what type of website you need, think about your site’s objective. Your website might be an informational site, an e-commerce shop, providing a service, or something else entirely. Every website serves a different purpose and your website’s purpose will dictate the design of your website.

HOW WILL USERS INTERACT WITH YOUR SITE? Once you determine the type of website you need, you have to determine the type of users that will be coming to your website. How will users will interact with your site? Ultimately, the answer to that question will influence your site’s navigation framework and page structure.

YOUR PROPERTY MANAGEMENT WEBSITE BUILD & CONTENT STRATEGY Once you have your framework, you need to come up with content. Content is king when it comes to a successful website. Content consists of everything that will be on the site, including images, copy, videos, property management lead magnets and more. It’s very important to have a clear content strategy. You want to make sure the content speaks to your target audience, because they will ultimately drive your website conversion. Learn more about creating purpose-driven website content here.

We hope this helps you get started on your property management website build or redesign. If you have any questions, please contact us at Fourandhalf.

The post How to Prepare for a Property Management Website Redesign or Build appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Do you know any successful, married property managers? We do.

Hoffman Realty is one of the most successful property management companies in the country, and as you’ll soon learn, the owners of that company have a marriage that most of us would envy.

Why is everything working so well?

We’re going to find out on today’s episode of The Property Management Show.

Our guests are MaryAnn Hoffman and Andrew Dougill from Hoffman Realty, a Tampa property management and real estate company. MaryAnn founded the company in 1998, right after she graduated from the University of South Florida. There were a lot of investors who wanted her to manage their properties, so she started the company. Later, she met Andrew and got married.

Now, these married property managers work together and they’re going to share some tips for success. If you’re a listener who is thinking about going into business with your partner or spouse, you’ll want to pay attention. The advice you hear will help you decide if it’s the right time. It will also help you plan for the potential rewards and challenges.

How Did These Married Property Managers Get Started? MaryAnn was already in real estate when they got married, and Andrew was working for a large corporation as an engineer. He had a nice corner office downtown and even his own parking spot. Then, he got laid off in 2000, during the burst of the dot-com bubble. This was scary for MaryAnn who wondered if her business could support the both of them while he looked for a new job in his field.

They created something good from a bad situation.

MaryAnn needed a website and a lot of technical support. So, she suggested that Andrew work for her company while he looked for his next job.

She was concerned that he was giving up some huge potential career opportunities, but after 20 years as an engineer, Andrew stopped looking for a new job and really became involved in Hoffman Realty.

They realized they were having fun working together. So, they took the plunge and officially went into business together.

Establishing a Routine and Setting Boundaries as Married Property Managers In his former job, Andrew did a lot of traveling and when he would return home, it was difficult for him and MaryAnn to fall back into the routine of being together. Now that they work together, there’s a lot more harmony around the house. The couple is really in sync and everything runs a lot smoother.

There’s more of a connection within their professional and personal relationship. If MaryAnn is having a bad day, Andrew gets it. There’s a lot more intimacy when you know what each person is going through and what they’re dealing with on a daily basis. They help each other, and they rely on their own individual strengths to keep the company – and the relationship – on track.

Setting boundaries is also important. Married property managers bringing in their spouse to work with them might be concerned that their partner will try to take over and change everything.

That’s not what you want.

Andrew and MaryAnn decided that they would separate which parts of the company they were each responsible for running. MaryAnn is the people person and makes routine decisions about the business. Andrew handles the technology and the high level decisions and everything related to their marketing systems and processes.

In 20 years, these married property managers haven’t stumbled, and it’s largely because of those clear boundaries.

MaryAnn says she admires Andrew’s ability to handle what he handles, and she loves managing her end of the business. She doesn’t flinch when angry owners yell, but she has no interest in figuring out why a computer isn’t working.

Their strengths are much different, and they use those differences to make their company run better.

An organizational chart is more important than ever when you’re married property managers, even if you’re the only two people in the company. Write your name in each box that represents your responsibilities, and make sure you’re not both in the same box.

That’s where conflicts can arise.

If you listened to our recent podcast with Melissa Prandi, you’ll remember what she said about putting together a great property management team. She said make sure you hire people with different strengths. At Hoffman Realty, Andrew and MaryAnn value the separate things that they each do best.

When you decide to work with a spouse or a partner, make sure you can identify which jobs you are each responsible for, and then don’t creep over into each other’s areas. If you have the same strengths and weaknesses at your spouse, maybe you shouldn’t work together. Or, you should be prepared to hire people who can fill in those blanks.

Do These Married Property Managers Ever Get Tired of Each Other? Working as married property managers doesn’t necessarily mean that you’re together 24 hours a day and seven days a week. While there may be challenges to sharing both a home and a business, you can make it work.

MaryAnn and Andrew think it’s fun to be together. They like laughing about work things at home. They enjoy opening a bottle of wine when necessary to talk about challenges or issues that are happening at the office.

It’s also important to maintain separate identities outside of work. You each need your own passions and hobbies. For example, Andrew loves sports. He’s always at football games or watching hockey. MaryAnn has a great circle of her own friends and is very involved with her children.

You can’t be together all the time. MaryAnn and Andrew have managed not to bring work home unless they want to work on something together. They respect each other’s private time and passions.

When you have other interests, you’re not in danger of getting tired of each other at home or at the office.

Working together makes both of them happy. They have a good relationship in the workplace and romantically. Part of the reason is that they have their own separate identities when they’re not working or together.

Time Management and Work/Life Balance Working together also allows MaryAnn and Andrew to balance their time better. When she was doing real estate and property management but Andrew was working his corporate job, he would rarely understand why she had to take work calls on the weekends. He didn’t understand then what he understands now. If an owner calls at 7:30 in the morning and is ready to sign a management agreement, MaryAnn is ready to get over to the property, and while Andrew might have once suggested that it wait – he now understands the urgency.

Andrew says that when they had separate careers, it was difficult to understand the work/life balance challenges of the other person. Now, they understand each other completely.

They can also be as flexible as they want with their schedules. Sometimes they’ll take a few days off where they check their emails and handle urgent business early in the day and then spend time bike riding or swimming.

When One Manages the Other In the beginning, MaryAnn was Andrew’s boss. He didn’t know the industry, and he had to learn a lot.

For example, Andrew has a need to fix things right away. MaryAnn had to coach him in and show him that sometimes people just want to be heard. If they’re upset and complaining, you need to let them keep talking because the problem they’ve called to complain about isn’t always the real problem. You need to give it time and dig a little deeper.

It’s possible to give feedback without being negative and critical. This is something you should set up as a rule. They give each other structured feedback in a way that doesn’t blame or accuse. They adopted the same practice with their employees. It’s effective and it’s kind. It also helps their employees. They can understand things from many different sides and attack a problem without feeling defensive.

MaryAnn, who has a psychology degree, says it’s important to say:

“When you do ______, I feel _______.”

People you disagree with aren’t necessarily doing something wrong. They may just do things differently.

Figuring out the Financials One of the most important things for married property managers to think about when they go into business together isn’t necessarily the company or the relationship – it’s financial security. When both of you are in one industry and there’s a downturn, you’re both going to be affected.

This happened from 2007 to 2009 when things became difficult in the real estate world. Andrew and MaryAnn had a nest egg, but they were concerned about keeping the company afloat, and they stopped spending money that they didn’t have to spend.

The couple had just completed construction on a house that they planned to move into, but MaryAnn had a gut feeling that they should sell it. So, they did, and they made a great profit. That profit saw them through the hard times of the real estate downturn.

When you work together, you don’t have any diversity of income. That can be a risk, and you might not realize how likely it is to happen.

A lot of this will be completely out of your control. In 2017, it looked like Tampa was going to sustain a direct hit from Hurricane Irma as a category 5 storm. The hurricane turned and the Tampa area got soaked but they were spared the damage they were expecting. It would have been devastating to Hoffman Realty and many of the properties they manage. A lot of property managers in Tampa were wondering if they would be out of business after that hurricane.

The lesson? Plan for what will happen if and when both incomes are lost.

Things to Consider Before you Work Together Andrew and MaryAnn have some things for couples to think about before they go into a property management business together.

• Do you get along now?
• Do you enjoy working long hours?
• Are you ready to hire more people?
• Do you have insurance?
• Are you financially secured for this risk?

You have to get along already. If you don’t, this isn’t going to fix your relationship.

Andrew suggests putting your foot in the water before you take the plunge. He helped out in the business while he was still looking for other work. So try it out if you can. Have a Plan B if it turns out you’re not meant to do this together.

The insurance is a big deal. When Andrew worked as an engineer, they enjoyed his corporate benefits. When he joined Hoffman Realty, they had to find health insurance and other benefits. Make sure your company is profitable enough to offer strong salaries and good benefits. What will you do for retirement? Think about the long term.

MaryAnn recommends having enough money saved to get through at least two years of an industry downturn. When they suffered through the slow period, they wanted to preserve the business. They cared about paying their employees even when business was lacking. Make sure you’re in a strong position personally and as a company.

Making a Family Business Attractive to Owners Another benefit to working together is that owners love the idea of working with a family business.

They feel better about leaving their biggest asset in the hands of a locally owned and family-run company. Everyone tells Andrew and MaryAnn that they want local management, not a huge national company.

Most owners know that a family business is going to care about their reputation within the community. When Hoffman Realty selects vendors, they always look for mom and pop businesses instead of huge companies where the customer seems to matter less.

While Andrew is often the face that potential owners see in the blogs and marketing videos created by Hoffman Realty, they are moving to a new, larger space and the plan is to have MaryAnn more visible as well. They also want to have their employees contribute to future blogs and marketing materials.

It’s hard, though, because Andrew’s British accent makes him sound like he knows what he’s talking about.

Of course he does know what he’s talking about, and so does MaryAnn. If you have any questions about how to work with your spouse or run a successful business while maintaining a successful marriage, these two are the people to speak with. You can contact them at Hoffman Realty.

Thanks for joining us. Be sure to contact us at Fourandhalf if you have any questions about growing and marketing your property management business.

The post So You Married a Property Manager? How to Run a Property Management Business with Your Partner or Spouse appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

If you’re interested in capturing more investor leads, we have some exciting news.

Fourandhalf is partnering with INVESTimate® because our mission is to help you grow your property management business, and this online software platform is pretty powerful.

Think of it as an investment-focused Zillow.

INVESTimate® Delivers Qualified Buyers and Sellers INVESTimate® makes it easy for your investors to search for investment properties directly from your website. The goal of this platform is to expand your business by bringing in more qualified rental property owners and rental property buyers.

INVESTimate® predicts an investment property’s value in three ways:

• Examining the purchase price.
• Factoring the potential rental income.
• Estimating a property’s operating expenses.

How INVESTimate® Works for Property Management Companies Your clients and leads can use INVESTimate® to identify rental properties that they’d like to add to their portfolio. Or, if they want to sell, they can sell directly to another investor, which reduces your churn. Implementing this on your website is a win for you and for the investors you’re currently working with or hoping to work with.

If an investor is on your website and wants to purchase a property, they can do so through this platform, and then they will naturally look to you to manage that property for them. You get a link through INVESTimate® that private-labels this service to your brand and your property management company.

Investors can spend time on your website searching investment properties for sale. They’ll be redirected to the INVESTimate® platform, where they will use specific and targeted search criteria to look at and evaluate available properties based on location, the amount of money they want to spend, and filters that separate whether the buyer will finance the investment property or use cash.

If they’re looking for income-producing properties, they can search by that field, and if they’re looking for high-growth properties, they can search that way. Maybe they want an investment that’s in-between; there’s an intelligent recommendation engine that drives the options your investor clients will see.

Based on the search results that are produced, your investor will be able to do a deep dive into one or two properties at a time. There’s going to be a lot of rich financial data available for each property, including:

• Cash flow
• Down payment required
• Out-of-pocket expense
• Yield
• Rental forecast
• Listing price
• Neighborhood stats including school scores and tenant demographics
• Comparable data to other properties

This will be a unique service for local investors as well as remote investors who may not know your market. They’ll get all the information they need about schools, locations, and the tenant pool.

When you have an investor who wants to sell a property, it’s easy to do so through INVESTimate®. They can sell it as a rental property with a tenant in place to other investors. There’s no need to get the tenant out; it’s sold as-is to another investor.

This is a one-stop shop for all of your investor’s needs, whether they are purchasing an asset or selling one.

Implementing INVESTimate® on your Website If your website is with Fourandhalf, this partnership will make implementation a breeze. We can integrate the INVESTimate® platform on your site, and you can immediately begin providing value to potential investor clients.

If you don’t have a website with our team but you’re interested in adopting this on your own site, please contact us at Fourandhalf today. We’d be happy to help you reach this new market of potential property management clients.

The post How to Capture More Investor Leads on Your Property Management Website appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Michael Lushington, the COO of Fourandhalf, joins Brittany and Marie on this week’s episode of The Property Management Show podcast. The guest is Will Gunadi of nextCoder, and the subject is workflow automation for property management companies.

You might have read or watched Michael’s blogs about workflow and how to use it as a business owner when you’re growing your property management company. If you haven’t seen them yet, be sure to check them out:

• Workflows Part 1: Get in Touch with Your Property Management Company Through Workflows
• Workflows Part 2: Elements of a Good Workflow for Property Managers
• Workflows Part 3: Implementing Property Management Workflows without Being a Micro Manager

Will is an expert on workflow automation, and we asked him to explain in simple terms what it is, and how it works.

Understanding Workflow Automation Workflows are a series of steps. Those steps are repeated again and again. That’s why this particular process is so relevant to property management. If you think about it, your whole property management operation is full of workflows. Things are repeated. For example, tenants are always moving out. Each time that happens, you have to repeat the same steps. So, it makes sense for property managers to put an effort into automating the workflow. It’s natural.

You might have heard about business process management or even robotic process automation. Those are big terms, and they’re related, but workflow management is a discipline in itself.

Workflow automation is a combination of business process management and robotic process automation. There are smaller programs that are written to contribute to the overall automation process. Will jokingly calls those programs “minions.” So, with a robotic process automation, the “minions” are executing and overseeing the workflow steps. The diagram is what ties business process management into the whole scheme. If you search online for business process management, you’ll see a workflow diagram.

The diagram is a big part of automation. Workflows are not useful to you as a company owner if you cannot see them visually. So, combining business process management with robotic process automation is really what we’re talking about when we discuss workflows.

Automation: What it Is and What it Isn’t There’s work that cannot be automated. Sometimes, people will have a vision of automating everything. They imagine they’ll just be able to press play and that’s it.

But, this isn’t the real purpose or function of automation.

Automation does not mean hitting play and sitting back. That might work when you’re listening to music, but when you’re managing 400 houses or even 1,000 houses; it’s not going to work. There are two types of automation:

• Automate the steps of your workflow where it makes sense.
• Automate the notifications and alerts. You can broadcast steps to people executing.

Forget the idea that automation means computerized. That makes no sense. For property management companies, the workflow has some steps that have to be done by a real human. That’s how you think about automation – it’s still a human function.

In property management, you can automate triggers to remind you to execute things. You can automate the steps of your workflow and the orchestration of the teams involved.

Is Your Property Management Company Ready for Automation? If implemented correctly, automation will help a property management company scale up and grow. If you’re currently managing 100 or 200 properties, this is the time to start thinking about the workflow process. Start documenting what needs to happen. If you wait and start at 500 or 600 properties, you’ll find you’re too busy to put out fires and manage processes. So, start early.

Workflow automation is applicable to any property management company as long as it’s understood and acknowledged that it doesn’t mean computers take over everything. The steps are still extremely human.

Here’s an example: locks will always need to be changed on apartments or houses between tenants. No matter how good a computer program you have, it’s still going to be a person who goes to the property and changes the lock. It has to be documented. Automation can send you reminders and notifications when those locks need to be changed. But a human being has to go there and re-key the property.

Building relationships with your owners and tenants is also something that cannot be automated. You can automate the way that relationship is orchestrated. You can make sure your owners get the right information at the right time. You can automate alerts and accounting statements. That’s the value of workflow automation for property management companies.

Automation is not a Magic Bullet The technology behind automation is excellent, but there’s often a gap between what the company knows about how it works and the automation the company wants to put in place. You cannot decide to implement workflow automation if you don’t first understand how your work is moving around.

This is not a magic bullet.

You need the support of the toolmakers. When Will talks to property managers about his automated workflow process, he asks if there is any documentation of the workflow. The answer is either yes or not really, and the not really response usually comes with a lot of hesitation.

Will shows the graphical representation of the workflow that his automation product can provide. There’s something very serious that he has to explain about that diagram: It’s living.

The workflow will change as your business changes. If your business isn’t moving, it’s dead. So the diagram will never be static. It’s the toolmaker who needs to show you how it is maintained and how it is evaluated. As a property manager, you can really benefit from the expertise and the help of the toolmaker who designs your automation process.

If you’re going to embrace workflows and workflow automation, you need to understand your process. Put those processes down, and understand how they move. These are living tools that will shift the outcomes you desire.

Workflow automation helps you identify which parts of the process aren’t working. Make sure you have the tools that can identify when you hit a snag in your process.

Think of it as an audit. You’ll have a visual log that you can go back to look at. You want a workflow that presents your property management team with an idea of what has happened when the outcomes aren’t measuring up with the expectations.

Do You Understand Your Information? Make sure the automation tool you’re using speaks your language.

If what you’re looking at makes no sense to you, it’s going to be difficult to glean any useful information from your dashboard or your workflow. If you don’t understand what you’re reading in your reports or on your screen, talk to your toolmaker. You can only keep track of things if you recognize the language. You’re entitled to something that’s customized for the way you work.

Property managers are busy. You are managing hundreds of properties and whatever comes with those properties. So, there’s very little time or capacity or energy to manage the automation itself. A client of Will’s recently asked him why there aren’t more people in the property management community managing workflow automation processes.

It requires a completely separate discipline.

To manage the workflow process, you have to know the system and understand business process management. You have to understand efficiencies and how to achieve them. These skill sets may not be possessed by property managers. Even if you do have the right skills and personality, there are only 24 hours in a day. Both workflow management and property management take time. You cannot run a property management company and a software company.

Profile of a Property Management Company Ready for Workflow Automation A property management company that’s ready for this automation process understands who is accountable for which tasks within the company. They have documented those processes. This isn’t a requirement to get started, but it helps.

When Will begins working with a property management company, he’ll ask about who is responsible for which tasks:

• How many departments do you have?
• Who handles sales?
• Who handles marketing?
• Who works with tenants?
• Who works with owners?

Sometimes, it’s one person who does all of that.

The profile provides a good recipe. You’ll start by establishing who is responsible for a tenant moving in. Who is responsible for a tenant moving out? How does the accounting work? Create a visual of your team and their responsibilities. Understand the accountability.

This is the best way to begin documenting your workflow. When you have a good idea about who is doing what, you can see which steps belong in each box, and then you’ll draw lines between the boxes.

Even here at Fourandhalf, we have identified what could be automated or passed on to other people.

It’s separating each task by outcome.

It’s achieving accountability by outcome.

After you create the workflow diagram, you may start to see six different departments that are handing off tasks and steps to each other. Even if you have one person doing all of this in the short duration, you’ll have a clear picture. It doesn’t mean you have to go out and hire six people for each department. But with the process in place, when you do start hiring people, they’ll be able to come in and do the pieces of what that one person did. There’s a training benefit, too. With workflow automation, people can come and go within the process and the process still moves along efficiently.

Profile of a Property Management Company NOT Ready for Workflow Automation The property management company that isn’t ready for automated workflows is the company that thinks this is a magic sauce. If you’re an owner who just wants to sit back and hand everything over and think that it’s all going to flow through some system that you didn’t have a part in creating yourself, you need to re-think this.

As a property management company owner or operator, you need to be ready to commit.

You might think that automation looks and sounds great. But, if you’re not willing to play a large part in making this work, it’s not the right time. Automation isn’t something that happens outside of you. It includes you. It has to.

If you want an outcome, you have to make an effort.

You need to be invested, and your team needs to be invested.

If your team is broken and no one in your company communicates well with each other, there is no amount of automation that’s going to fix things.

Investment. Passion. Commitment.

Those things are needed for workflow automation to succeed in your property management company.

Getting Your Property Management Team on Board Adopting workflow automation is easier in the property management industry than in other industries. That’s because things happen daily. You’ll know immediately when your system is being neglected. Things move a little slower in other industries. Property management is well-suited to workflow automation.

Sometimes, your team members who don’t yet understand automation worry that your new workflow will replace them.

It’s important to educate them about workflow automation and how it can help them complete their tasks. They can look forward to shorter meetings and automated notifications and reminders. The purpose of workflow automation in property management companies isn’t to replace team members, but to replace the grunt work and the menial tasks that hold them back from the valued work that they really need to do.

Change management is a big part of workflow automation. Some jobs will shift and so will tasks and eventually, it will become intuitive. A lot of explaining will need to happen, but if you can get your team members attached to the outcome, you’ll have success getting them on board.

Make sure you’re automating what you should and not what you shouldn’t. You don’t want to be that property manager who is on the phone with a prospect at the same time that prospect is getting an automated email from you apologizing that you weren’t able to connect.

Removing the human element is not the goal of automation. Workflow automation allows the human element to shine.

If you’re at the point where you want your operation to grow, or you see that it’s growing on its own, join this trajectory and start thinking about workflow automation.

Find out more about what Will does for property managers by visiting Bionicpm.com. If you have any questions or you’d like to share some thoughts about this or any topic related to property management marketing, contact us at Fourandhalf.

The post Understanding Workflow Automation for Property Management Companies: When it Works and When it Fails appeared first on Fourandhalf Marketing Agency for Property Managers.

View Details

Have you been listening to our blog series on workflows? If you have joined us for the last two, then by now you have designed a fantastic and efficient workflow process, and you’re ready to implement it.

So, how do you know that everyone will follow the process you’ve so carefully outlined with your team?

In today’s discussion, we’ll show you how NOT to be a micro manager while still making sure your workflow process is working.

Be an Implementer, not a Micro Manager No one likes having a micro manager looking over their shoulder every second to make sure the job is getting done exactly the way it should be done. As managers, we might feel compelled to do that to make sure there’s execution.

With workflows, you’re discovering ways of doing things that weren’t efficient or getting the job done. You’re making changes to the way things were running and as a business owner, you’ve invested a lot of time to develop a new process, review it with your team, and ensure everyone is clear on the objectives and tasks.

Once the workflow process is implemented, you want to make sure that the time you spent is not wasted.

How to be Sure Your Process is Implemented Here’s a truth you probably know by now: no matter what you do with your workflow process, you have to have a great team in place to implement it. If you have any doubts or second thoughts about the strength of your team or how to build one, we’ve done a lot of blogs and podcasts about finding and retaining great employees. You could take a look at the podcast we just did with Melissa Prandi, for example.

With an exceptional team in place, there’s a three-step process to ensuring your workflow can be implemented:

• Step One: Accountability

You can make sure accountability is completely clear to everyone involved in the process. Go through the whole flow one time and make sure you know who owns what tasks. You need to know that everyone understands that they’re accountable for the success of the entire process. * Step Two: Clarity

Make sure you have clarity around each task. Does everyone understand at a detailed level what the specifics are of each task? You could have written procedures for each task and task owner. Put any measures into place that are necessary to show you that everyone understands. * Step Three: Measure Results

The last and best way to make sure your process is getting done will involve clear measureables associated with your checkpoints throughout the workflow. Then, you know that everything is getting done the way you expect it to, and you’re seeing improvement over time.

Fine-Tune your Tracking Process Measuring your outcomes is critical. It’s tracking the process objectively without your interpretation of what is working. You know whether you’re hitting the mark or not.

Track the time it takes to execute each task and the time between each task. That shows you the total time required to complete the entire process. When you track these times and look at them through several instances of the process, you know if you’re on target or below target. You know what is or isn’t getting completed.

Finishing early doesn’t always indicate that everything is working. Maybe something is being skipped. Maybe there’s an extra task that people didn’t identify when you were planning.

When you’re tracking the process, you need some understanding of how long things are taking. Track it over time so you know if the process is or isn’t working.

Track Early and Then Let it Work You’ll track these individual tasks early on, just to make sure all the effort you’ve put in up front is paying off. Make sure it’s on track. Then, you won’t have to track it all the time. You’ll only need to revisit it if things get off track from a delivery standpoint.

Everyone with an individual task should be keeping track on their own for how long things are taking them. When you add it up at the end of the week, you have a KPI for how the process is doing. You don’t have to do this for weeks and weeks. Just do it until you understand how long the process takes and to see if there is room for improvement.