The Property Management Mastermind Show

I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.

My guest today is a true luminary of the property management world. Bob Walters, who hails from Australia, is the founder and godfather of LPMA (the Leading Property Managers Association). Bob has been in the industry for over four decades, and has been doing conferences in Australia and New Zealand for over a decade. He’s a successful entrepreneur who has built up, sold, and successfully exited three property management companies totaling well over 4,000 units. Thanks to his deep expertise, Bob is also a consultant.

Together, Bob and I will dig deeply into the five S’s of property management: structure, strategy, systems, service, and standards.

In terms of structure, you need to keep in mind that there’s no right or wrong way to structure your business; you just need to delight your clients! When you start out, what you need to figure out about your structure is how many staff you need on your team to delight your clients while still making a profit.

One important aspect of strategy is having a properly documented business plan and a properly prepared budget. Even so, when Bob is working as a consultant, he often finds that property management companies don’t have these sorted out.

Having good systems for everything you do is an easy thing to say, but difficult to execute. Bob will explain how many property management businesses still don’t have properly documented systems, and clarifies that property management is mostly processes and absolutely requires strong systems to be successful.

The standards category covers both personal performance standards and company performance standards. These should be carefully calculated, achievable, and regularly monitored.

If you want to hear about the customer service side of things, tune into the episode! In addition to the important five S’s, we’ll discuss other topics including keeping your books, health checks for property management companies, why policies and procedures manuals are so important, marketing materials, and lots more. Once you’re done listening, if you can’t get enough about property management, join our Facebook group to get in touch with more industry professionals!

Here’s where you can find Bob:

[email protected]

LPMA

Bob Walters

Show Notes

[03:23] - Bob launches off the interview portion of the episode by talking about the five S’s of property management.

[05:26] - We move onto another of the five S’s: systems. Bob explains why systems are so vital to the property management business.

[06:47] - Next, Bob moves onto the topic of strategy, offering some basic examples of how property management companies should use strategies.

[08:15] - Bob talks about the typical goal of a property management business owner in Australia and New Zealand: to grow bigger. They usually start to stumble when Bob asks how they’re going to get there.

[09:41] - We hear about the numbers that Bob recommends planning for in terms of losses every year.

[10:56] - Bob discusses another of the five S’s: standards. Brad then offers an example of how this can function.

[12:35] - Over his career, Bob has built three property management businesses. He talks about the first one he built, which was during the 1980s.

[14:47] - Brad transitions into talking about doing health checks for businesses. Bob discusses what form a health check takes when he does it, mentioning that no two are exactly the same.

[16:39] - We hear more about Bob’s processes. He explains that many of the owners he talks to don’t value their policies and procedures manuals as much as they should.

[19:45] - Bob agrees that there need to be some paper-based forms, and talks about the value of color-coding things.

[21:14] - Bob discusses the importance of keeping proper books, and what exactly he means by the term.

[22:52] - Right now, Brad is on a crusade to develop an accounting standard that property management company owners can all use.

[24:12] - How much the owners take as their own profit can be a wild card, Bob points out.

[27:34] - We move onto the subject of customer service levels. Brad and Bob talk about net promoter scores.

[29:40] - Bob discusses the importance of customer service standards in a property management business.

[32:08] - Another thing to look for in a health check is a company’s marketing materials. Bob digs more deeply into this aspect of the health checks he does.

[34:34] - Bob shares something he discovered at the recent PM Grow Summit.

[36:28] - We hear about some of the top mistakes that Bob has made, and what people can learn from them.

[38:05] - Brad shares a story about a mistake of his own.

[40:11] - Another big mistake that Bob made in his career involved wanting to have the biggest company in town.

[42:18] - Bob shares a quick story related to what he and Brad have been talking about in terms of comparing business sizes.

[43:33] - One of the best metrics that we can eventually use, Brad says, is a profitability-per-door metric.

[44:35] - Bob walks us through another mistake that he has made in his career.

[47:47] - Does Bob have any parting words that he’d like to share with listeners?

[49:33] - Bob shares his email address so listeners can get in touch with him to chat more! You can reach him at [email protected].

Links and Resources:

[email protected]

LPMA

Bob Walters

The 40 Hour Work YEAR by Scott Fritz

NARPM

Net promoter score

PM Grow Summit

I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.

Scott Lewis, today’s guest, has been wildly successful in just a couple of years, and his company eXp Realty is now hitting a viral stage. Its number of agents has grown almost ten times in size in just two years. Now that we’ve partnered with their fantastic company, it’s easy to see why they’ve been so successful!

I want you to hear about the fantastic collaboration between our companies, RentWerx and SaleWerx, and Scott’s company eXp Realty. We have RentWerx on one side focusing on single-family and multifamily property management, and Saleworks on the other side, focusing on residential single-family home sales. Both are powered by eXp Realty, and we couldn’t be happier.

In our conversation today, we’ll dig into why a property management company like RentWerx decided to team up with eXp Realty, and all the good things that have come out of the partnership. Scott will explain why the eXp model is radically different, including why he feels that the franchise model has been unfair to agents. The eXp model, on the other hand, is designed to empower the agent.

At eXp, the model involves having one broker per state working in tandem with other people to assist with questions, paperwork, compliance, transactions, and more. I used to feel like I had to constantly interrupt what I was doing with property management tasks to deal with state or local compliance issues, and now eXp takes care of all of that and let me juggle fewer tasks.

Tune in to hear more! And if you can’t get enough about property management, join our Facebook group to get in touch with more industry professionals!

Here’s where you can find Scott:

eXp Realty

Explode Your Career on YouTube

explodeyourcareer on Instagram

Show Notes

[03:23] - Scott starts things off by explaining how he and his wife, Traci, transitioned from their work with Century 21 and Keller Williams to owning eXp Realty.

[05:27] - What is Scott’s answer to the question “why eXp?”

[06:34] - Brad points out that the empowerment of agents is a big reason why they changed to eXp Realty. He gives some reasons for why this made so much sense for a property management company.

[08:02] - Scott talks about the recurring revenue stream that Brad has been discussing.

[09:01] - Brad steps in to more fully explain the difference between profit-sharing and revenue-sharing, and clarifies what eXp offers.

[12:20] - We hear more from Scott about how eXp has helped Brad be able to focus more on what he’s best at instead of dealing with distractions.

[13:58] - The key thing to look at here, Scott says, is that the only thing at risk with joining eXp is your ego.

[15:04] - Brad expands on what he’s looking for with agents and mentions the option of working with referrals.

[18:30] - We learn about cloud-based support at eXp. It’s something you have to experience for yourself, Scott says.

[20:48] - Scott quantifies eXp’s astonishing growth for the audience. The company went from 800 agents to over 7,000 in a little over two years, and is now in 47 states.

[22:25] - Brad had some losses as a real estate brokerage because there are small fees with eXp, but discovered that the good agents understand the model and don’t have any problem with it.

[25:03] - We hear some reasons why a hypothetical property management company owner in California might want to join eXp, and how it might work.

[27:52] - Brad brings up a few more points about the benefits that eXp offers.

[29:21] - Let’s talk numbers! We hear about the specific percentage of the split, as well as some of the details of the process of working with eXp.

[31:06] - At eXp, there are multiple people who are highly invested in helping you and answering your questions.

[32:21] - Scott talks more about the 80/20 split, where 80% goes to the company but 20% goes to eXp, which is owned by the agents. He then discusses the potential income one can earn with the company.

[36:26] - What made Brad’s decision for him was the realization that he had very little to lose and gigantic potential to do well.

[37:44] - Scott brings up another point, this time involving CRM tools.

[39:07] - We hear more about the costs at eXp.

[40:14] - One of the challenges that Scott and Brad have talked about is onboarding agents, Brad explains. Brad then talks about onboarding.

[42:07] - Brad talks about some of the next steps, and invites listeners to email him at [email protected].

[43:22] - Scott shares his parting thoughts and advice for listeners.

Links and Resources:

eXp Realty

Explode Your Career on YouTube

explodeyourcareer on Instagram

RentWerx San Antonio

Max Grow products

Seacoast Commerce Bank

Century 21

Keller Williams

LeadSimple

I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.

Today’s guest is someone truly special whose work spans just about every industry, not just property management. Mike Michalowicz is the author of the groundbreaking book Profit First, which revolutionized the way that many businesses handle making money. We’ve implemented his system in his business and are already seeing fantastic results.

Imagine this: you run your business solidly, and at the end of the year, you see a nice, fat number for your profit that year. Your bank account, though, doesn’t reflect this. In fact, if you’re like the majority of small business owners in the United States, your business is probably operating from month to month, and paycheck to paycheck. So where, exactly, has that profit gone? The sad fact is that it’s already spent and isn’t truly profit in the sense that we think of it.

Here’s why that happens: we think that the formula is sales - expenses = profit. Logically, that makes sense, but in reality it doesn’t work out that way. Instead, we need to swap the formula into a far more effective one: sales - profits = expenses. In other words, instead of running a business and thinking of everything left after we pay all the expenses as profit, we need to pay ourselves first. Whatever is left after you set aside a designated amount of profit is what you’re allowed to use on expenses.

This doesn’t mean you can jump right into setting aside 25% or 30% of your sales as profit. Instead, think of this profit-first methodology as being like exercise. You wouldn’t go straight from being a complete couch potato to running a full marathon, right? Doing so would just leave you injured and in worse shape than before. Similarly, you need to gradually build up your profit. Start with a very small percentage, and gradually increase from there.

Mike will explain all of this in depth, and I’ll talk about how it relates to the property management industry. We’ll also discuss why it can be a great idea to split your business into different parts if you offer different services. This is going to be a great episode, so tune in to learn all about how to truly see a profit from your property management business!

Here’s where you can find Mike:

Profit First

Mike Michalowicz

@MikeMichalowicz on Twitter

Mike Michalowicz on LinkedIn

Mike Michalowicz on YouTube

Mike Michalowicz on Facebook

Show Notes

[02:22] - Mike shares a bit about his background, explaining that he’s first and foremost an entrepreneur but has been an author for around 10 years.

[03:41] - Brad offers some background on his company and how the payment structure was set up, as well as what implementing profit-first can accomplish.

[04:45] - We hear a story of Mike’s about a moment in which he was confused about where, exactly, the profit was. He then shares the answer, and explains why the traditional formula for profit doesn’t make sense.

[07:58] - Mike explains how his companies function now, which involves setting aside a specific percentage of profit first, then running the business off the remainder.

[09:08] - Brad dives into some of the things that he’s doing now to implement this profit-first strategy. He and a friend are profit-first buddies who help each other stay accountable.

[11:03] - Mike clarifies that he didn’t invent this system; it’s been around for centuries as the “envelope system.”

[14:10] - One of the interesting dynamics of what Brad does involves having both a property management system and a maintenance company.

[16:13] - Mike points out why it was such a good decision for Brad to have his business split into two parts, and gives an example of another company that was far easier to evaluate after breaking it into parts. He also explains why it’s a great idea to face some hard questions today.

[20:57] - We hear about Mike’s great podcast, called The Profit First Podcast. He and Brad then discuss the changing roles of radio and podcasts.

[23:13] - Mike talks about his upcoming speaking gig in San Antonio with Dave Ramsey.

[25:13] - We learn about EO (Entrepreneurs’ Organization), a peer-to-peer group for entrepreneurs in various industries. Brad is applying for membership, and Mike is a member already.

[28:51] - When people ask Mike which of his books they should read next, he responds to the question by asking, “In your business today, what’s the biggest challenge you’re facing?” The answer about which book to read depends on this. He also describes how to get one of his books for free!

[31:45] - For people who are overwhelmed or confused by the process of switching to profit-first methodology, Mike started a company: Profit First Professionals. He also mentions ProfitCON.

[33:27] - We haven’t even scratched the surface on the profit-first system. Mike talks about where to get resources, and gives advice on how to get started.

[35:33] - Mike’s last tip for today involves removing temptation by transferring your profits to a different bank so it’s out of sight and out of mind.

[38:16] - How can listeners reach Mike if they want to learn more or get in touch with him?

Links and Resources:

Profit First

Mike Michalowicz

@MikeMichalowicz on Twitter

Mike Michalowicz on LinkedIn

Mike Michalowicz on YouTube

Mike Michalowicz on Facebook

Profit First by Mike Michalowicz

The Pumpkin Plan by Mike Michalowicz

Surge by Mike Michalowicz

The Toilet Paper Entrepreneur by Mike Michalowicz

Tim Melton

Grace Management & Investment

The Profit First Podcast

Dave Ramsey

EntreLeadership Summit San Antonio 2018

EO

ProfitCON

Seacoast Commerce Bank

I love offering listeners fantastic benefits, such as some great discounts for products. These include the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more, with new offers coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.

Before we dive into this episode, I want to take a moment to give you a quick update. On both of our websites, we’re adding a couple of new tabs. One of these tabs will highlight all the upcoming seminars and conferences through various organizations. The other tab will direct you to our property management mastermind listserv on Google. It’s a great no-holds-barred listserv where anything goes. Check out both of these new tabs to explore more of what we can offer!

My guest today is Scott Brady, a property manager from Southern California. Scott has been in the real estate business for over two decades, and jumped into the property management side of things about six years ago. As he’ll explain in our conversation today, he changed the slant of his company to attract self-managing property owners once he learned that a shockingly high percentage of people self-manage their properties.

Scott will also talk about some fascinating things that he’s doing in his marketplace that are a bit outside the norm. He veers away from the generic cookie-cutter thinking of many property management companies and doesn’t hesitate to think outside the box. As a result, he’s generating several different revenue streams for his business, of which property management is only one.

We’re fortunate enough that Scott isn’t shy to talk about the nitty gritty details and exact numbers. If you’ve been wondering exactly how the financial aspects of these things work, this is the episode for you. Scott will go into detail about how much (or how little) he makes in property management, how he compensates his agents and employees, and much more.

Here’s where you can find Scott:

Progressive Property Management

Scott Brady at Progressive Property Management

Scott Brady on LinkedIn

Show Notes

[03:09] - Scott gives us a quick introduction to who he is and how he got into property management. He explains that when he got started, he had no idea that 80% of people manage their own properties.

[06:16] - Brad backs up a bit to talk about several concepts, including the points of distribution (POD) technique, licensing, and franchising, and points out that what Scott has been describing is a hybrid of all three.

[07:23] - Whether we like it or not, property management is still a hyper-local business, Scott points out.

[09:54] - Scott tells his branch managers that every door they manage is a door they’re going to sell down the road.

[10:34] - We hear how Scott compensates his employees.

[11:40] - How much overhead and support does Scott have to give his employees to earn the 35% that he gets from them?

[12:43] - We learn how Scott finds realtors who want to work within his system.

[15:05] - In general, real estate is about meeting people. If you meet a lot of people, you’ll be successful, Brad explains.

[16:42] - Scott found out early on that most of his agents don’t want to spend their own money, so he spends the money on marketing and then sells the door.

[18:12] - Brad explains that one of the things he put in place when he did the portfolio model was putting the portfolio managers on a very bad split. Scott then addresses the question of whether his agents might be pushing the owners to sell.

[19:55] - How successful has Scott been in scaling up his model?

[21:42] - Brad and Scott dig into the topic of direct mail targeting, including discussing how far Scott generally goes in the process.

[26:13] - What’s the coolest implementation that Scott has done in the last six months to a year?

[27:58] - Brad responds to Scott’s mention of Rently.

[29:48] - Scott basically breaks even on property management, he reveals. He then talks about his other streams of income.

[31:58] - The biggest barrier to investing in real estate in Southern California is coming up with the down payment.

[33:32] - Brad talks about an upcoming seminar that he wants to go to in Dallas.

[35:38] - Scott talks about a program that he offers to local self-managing property owners.

[38:41] - We hear more about exactly what is included in the seminar in a box that Scott and Brad have created together.

[40:08] - What seminars does Scott have lined up for the California area?

[44:16] - If you’re interested in what Scott has been saying and want to get in touch with him or learn more, you can find him on Brad’s website or send him an email.

[47:09] - Scott has noticed a fundamental shift in the general perspective on property management.

Links and Resources:

Progressive Property Management

Scott Brady at Progressive Property Management

Scott Brady on LinkedIn

NARPM

Rently

Tenant Turner

Grant Cardone

BiggerPockets

BRRRR Strategy (and BRRRR calculator)

Local Landlord Seminar

NARPM Broker/Owner Conference

One of the benefits I love to offer is discounts for products and services including the PM Grow Summit, website production through Property Managed Website, showing services through Tenant Turner, and more coming all the time! You can see a complete list of the current offers at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad”.

A little pre-show information about John Bradford who’s here from petscreening.com

One of the things we talked about in the interview that we forgot to mention is that he catches 32% of the assistance animals have disappeared after they were asked for more information. So essentially almost a third of the applicants after they apply through petscreening.com disappear after they get asked a question. In other words he’s weeding out the pets who owners are illegitimately trying to push through as assistance animals.

He’ll offer a discount code to waive the first hour of integration into your software. As usual, use the promo code “Brad” to access this offer! To take advantage of it, you can email [email protected].

Talk about petscreening.com. John’s been putting this out for a few months, saw it at the Orlando conference and was really excited about it. He’s graciously agreed to come on the show today to talk more about pet screening. He’s been on Fox News.

He’s been a property manager for 13 years, so he understands why pet screening is so important. Based in the Charlotte region, has about 30 employees, single family property management. He also has a political career, serves in the North Carolina House of Representatives and has developed a reputation as the go-to-guy not only for real estate and property management issues, but also issues surrounding assistance animals.

His three things for his vision: 1. Pet screening to reduce the liability for property managers and owners. 2. Didn’t want it to cost the housing provider or owner a single penny. 3. Wanted a product that would drive new revenue streams around pets.

He ranks pets on a scale of 1-5 paws based on a complex algorithm. This includes shot records, microchipping, breed, and more.

Here’s where you can find John:

PetScreening

[email protected] Subject Line: Brad - I’m interested in learning more. Free consultation for integration with an IT company to optimize for your company.

Show Notes:

[02:58] - John tells us a bit about his background and how he got into the pet screening field. He explains how his two professional fields intersect to make him particularly qualified to deal with animal screening questions.

[04:14] - We hear about John’s vision when he started petscreening.com, including the three facets of the vision he had in creating it. He also talks about the kind of information that he collects throughout the process.

[07:32] - John talks more about the pet scoring system he created, which ranks pets (and owners) on a 1-5 paw scale. Only about 11% of applicants receive 5 paws; John’s own dog, in fact, only ranks 3 paws.

[08:50] - There is an associated risk with guard dog breeds, but that doesn’t mean that a firm shouldn’t rent to someone who owns one of these breeds.

[10:43] - Everything we’ve talked about so far is for household pets; John now moves on to talking about assistance animals.

[11:56] - Brad interjects to explain that he’s afraid of asking the wrong questions of someone who has a disability. John points out that the questions involved in his service are HUD-permissible questions, so there’s no risk of saying or asking something wrong.

[14:18] - If an applicant answers the first few questions correctly, John’s service moves onto a three-pronged test for the documentation: is it reasonable, credible, and reliable?

[15:19] - What if somebody wants to bring in an assistance animal in the middle of an existing lease?

[16:50] - John talks about how his tool integrates with various other tools and screening companies, listing a few specific examples.

[18:51] - We learn how John’s company generates revenue, which is by charging an application fee to the animal owner for every pet that comes through the tool, which is $20 for the first pet and $15 for each additional pet. This allows them to screen assistance animals without any charge.

[19:35] - John uses Brad (and his dog) as an example to explain how the tool works, and why it’s beneficial for pet owners even aside from property applications.

[21:02] - At the end of the lease agreement, is there any place to leave feedback on the pet? Their database includes two types of incidents: pet bites and property damage. In the future, they’ll be adding a way to indicate unauthorized pets as well.

[22:38] - Brad points out that unauthorized pets are probably the most common issue, more than any sort of dangerous breed incidents. John then gives an example of a potential issue involving a pet death mid-lease.

[25:32] - What kind of feedback has John been getting from applicants and tenants? He answers, then he and Brad discuss the benefits of the privacy that petscreening.com provides for tenants and applicants.

[27:29] - Brad points out that showing favoritism can actually be discriminatory.

[30:16] - John talks about cases in which a cat might not be vaccinated, using the example of a 15-year-old cat.

[31:55] - Has John see anybody integrate different fee structures based on their 1-5 paw score? Lots of firms, he answers, have created a variable pricing matrix based on the pet score.

[33:59] - John talks about how he’s seen this being presented to the owners of the homes. He also explains what information is presented to the owners, some of which is withheld for various reasons.

[37:16] - We hear about John’s integration with Rentscreener (FIND AND LINK THIS), which will become even deeper in the coming months.

[38:52] - Not all pit bulls are bad, and John’s tool is proving it, he explains.

[39:37] - John moves on to talking about renewals. His tool requires the pet owner to answer all the questions every year to make sure nothing significant has changed with their pet.

[40:57] - John shares an offer for listeners! Email [email protected] with “Brad” in the subject line and just say that you want to learn more. If you want to proceed, they will pay for the first hour of the consulting integration with an IT company to make sure that they get the product optimized for your organization. (They’ve never yet had anybody go over an hour, he points out.)

[42:42] - Brad points out that John’s company is currently the coolest thing since sliced bread among property managers.

[43:02] - Will John be at the PM Grow Summit?

Links and Resources

Acutraq

RentScreener

Resident Research

AppFolio

ShowMojo

Tenant Turner

PM Grow Summit

PetScreening

[email protected] Subject Line: Brad - I’m interested in learning more. Free consultation for integration with an IT company to optimize for your company.

Managing the Business Risks of Pets and Service/ Companion Animals

Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!

We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!

As property managers, we know the ins and outs of the rental industry. In fact, we’re so familiar with it that sometimes it’s helpful to step back and look at things from the tenants’ point of view instead. These people are likely moving from one rental property to another. They’re dealing with all the hassle of moving, which is exhausting whether it’s across the country or just across town. They’re also dealing with a heavy onslaught of expenses: renting a moving van, hiring people to help, paying rent and a deposit on a new place, and much more.

When your tenants are already overwhelmed with too much to do and lots of money going out the door, the last thing they want to deal with is setting up the utilities at the new place. This can be doubly true if the utility companies require large deposits, as some do. Going back to our side of things as property managers, we also don’t want to constantly field calls from tenants about which companies they should use, whether they can install a satellite in the roof, and how to set up a security system.

Fortunately, there’s an amazing company that makes things easier for property managers and tenants alike. My guest today is Wes Owens from Citizen Home Solutions, a concierge service for utilities. Wes will explain what his company does, and why it’s a win-win-win for tenants, his company, and the property managers alike. Best of all, he offers a commission that’s a quarterly share of 20% if you use the promo code “Brad” when you sign up!

Right now, Citizen Home Solutions operates in Texas and 13 other states. Don’t worry if you’re outside of their current coverage range, though! They’re happy to expand to new locations, and the process of setting up somewhere new generally takes a week or less.

Here’s where you can find Wes:

Citizen Home Solutions

[email protected]

(214) 493-2010

Wes Owens on LinkedIn

Show Notes

[02:56] - Wes gives us an intro to himself and his company, explaining what Citizen Home Solutions does. Brad then points out some of the reasons for why setting up utilities is a difficult part of moving for tenants.

[03:54] - Wes walks us through the process of how his company works in more detail. He also addresses the topic of deposits in recommending providers to tenants.

[06:33] - Brad gives listeners the background on his use of Wes’ group, which goes back about two years.

[07:13] - The management company gets a quarterly commission for every service that makes Wes’ company money. In other words, Citizen Home Solutions shares their commission with the property management companies that use them.

[08:46] - Implementation is very easy, Wes explains, and walks us through the five-minute process involved in getting things set up.

[10:25] - Citizen Home Solutions is currently all over Texas and in thirteen other states, but they can get up and running in a new location within about a week.

[13:57] - Does Wes have any good examples of specific discounts?

[15:25] - Wes elaborates on the satellites he mentioned previously. They refuse to allow satellites on the roof, instead putting them on pole mounts in the back yard.

[17:23] - Wes moves on to talking about security systems. The system he uses is wireless and doesn’t damage the property, he explains.

[19:16] - Brad returns to the point that Wes can get his service set up in a new area in a week or less.

[21:44] - We learn more about how Brad has implemented Wes’ service into the backend of the system.

[23:40] - Wes talks about reviews. Lots of places ask their customers or clients to go to Google to review their company. Instead of making the customer do this work, Wes uses BirdEye.

[26:27] - BirdEye flags your reviews, Wes explains, and allows you to respond when you get a review below the limit you chose.

[27:42] - How can someone get started with Wes’ company, or get in touch with him? His phone number is (214) 493-2010 and his email address is [email protected]. [29:49] - Wes talks about the promo he’s currently offering for listeners! If you get in touch with him soon using the promo code “Brad,” you’ll get 20% back, which is higher than their norm.

Links and Resources:

Citizen Home Solutions

[email protected]

(214) 493-2010

Wes Owens on LinkedIn

BirdEye

Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!

We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!

Today’s special guest comes all the way from Australia! Ben White is the director of Leading Property Managers Association, or LPMA. He’ll talk a lot about that association, as well as its US expansion efforts, in our conversation today! We’ll also discuss their accounting standard project, which coincides with some of our efforts to standardize accounting practices within the industry.

If you’ve listened to the show, you’ve already heard me talk about the PM Grow Summit, which is one of my favorite conferences. Another of my absolute favorites is the conference put on by LPMA, which goes above and beyond almost anything else you’ll see here. If you want to experience it for yourself, believe me, it’s well worth the flight to Australia or New Zealand. In fact, Ben has even sweetened the deal by waiving the conference fee for property managers or property management company owners who are listening to the show.

In addition to talking about LPMA and its conferences, Ben will offer some fantastic insight into the industry. As we discuss in the episode, despite (or maybe because of) some striking and fascinating differences between the American and Australian markets, we can learn a lot from each other. Ben points out, for example, that your biggest competitor is no longer the best agency in your marketplace. Instead, your biggest competitor (and the one you need to fear) is the worst property management company, because the bad companies are dragging down the industry as a whole. To learn more about this, and other great tips and insights into the industry, tune into this episode!

Here’s where you can find Ben:

[email protected]

lpma.com

Show Notes

[04:05] - Ben gives us a quick intro to who he is and how he got involved in property management.

[06:48] - For listeners who are wondering, Brad talks about why it’s worth listening to Ben even though he’s from Australia, which is a different market.

[08:31] - Ben explains that the infatuation with real estate is greater than that in the United States, in that many more people own investment properties.

[11:45] - We learn about Ben’s books, which he wrote after having been lucky enough to have visited well over a thousand property management companies.

[16:10] - Ben offers a synopsis of what he’s doing during this visit to the United States. He then discusses his affiliate program.

[20:09] - Brad takes a moment to rave about the many available resources on Ben’s site.

[22:09] - We hear about one of Brad’s recent changes, which was switching to Seacoast Bank.

[24:20] - Ben expands on the idea that staff churn can create a negative impact that lasts for years. He walks us through the four possible scenarios that can happen when a property manager leaves.

[29:47] - In Australia, there’s a trend to not give property management staff personalized email addresses, because there’s so much staff turnover.

[33:29] - Brad clarifies that Australian property managers charge weekly instead of monthly.

[35:39] - Ben talks about how the LPMA conferences are run, and offers a discount for listeners who want to come to one of these conferences in the future.

[38:12] - LPMA originally had two brands, both of which are now part of LPMA, Ben explains.

[41:36] - Ben expands on the formula he’s been working on coming up with to produce potential valuations for companies.

[43:46] - You can’t just value a property management company based on its income, Ben explains.

[46:16] - Ben shares a story about one of the first days that he was in property management. He and Brad then dig into specific numbers and percentages within the property management industry.

[50:08] - Brad points out that prioritization shouldn’t be overlooked, because it lets you know exactly where you should be focusing.

[53:08] - Ben talks about trying to develop a membership base for the LPMA in America.

[56:05] - Brad takes a moment to talk about how he and his company use LeadSimple to manage their workflow.

[57:24] - There are three kinds of core property management systems, Ben explains.

[59:33] - Where can people get in touch with Ben if they want to learn more or stay in touch?

Links and Resources:

[email protected]

lpma.com

Numbers Game by Ben White

Seacoast Bank

Xero

Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!

We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!

Before we dive into this week’s episode, I want to take a moment to talk about the recent NARPM National Convention that took place in Orlando, Florida in October 2017. This episode was actually recorded there, and the event is still fresh in my mind. Overall, my family and I had a great time! The weather was fantastic, as were Disney World and golfing!

The conference itself was good too, but a few things bothered me there. As a result, I plan to offer a bit more commentary on the state of the property management and the trade organizations around it in future episodes of this podcast. I want you to be aware of what’s going on so you can make a fully informed decision on how you want to proceed with booking (or not booking) some of these conferences.

This week’s episode features the brilliant Allison DiSarro from Seacoast Commerce Bank. After hearing what she could offer, we’ve decided to switch banks. Our current bank isn’t bad by any means, and we weren’t necessarily looking for a new banking solution, but what Seacoast offers is so phenomenal that we just couldn’t resist switching.

If you’re familiar with this podcast, you know that we tend to speak to people in the property management industry. This interview goes a bit further outside those lines, but is absolutely relevant to all property managers, even those in the four states where Seacoast doesn’t operate. Allison specializes in property management banking, and in this episode I’ll ask her all sorts of questions about banking as it relates specifically to property management. Tune in to learn more!

Here’s where you can find Allison:

[email protected]

(619) 988-6708

Seacoast Commerce Bank

Show Notes

[03:45] - Allison introduces herself briefly. Brad then explains why he has a banker on a property management mastermind.

[04:42] - We hear what Allison does, which is specializing in property management trust accounts.

[06:42] - Brad points out that what Allison has been explaining is kind of scary because a lot of us just assume we’re in trust accounts even when they may not actually apply.

[09:04] - In response to Allison mentioning that they don’t have a physical presence in certain states that they operate in, Brad takes a moment to talk about electronic banking.

[11:38] - Allison talks about debit and credit card solutions. She also explains that they do ATM fee reimbursements since they don’t have an abundance of ATMs.

[14:24] - Brad digs into how Allison convinced him to switch to Seacoast Commerce Bank.

[16:57] - Allison explains more about how their system works for property managers. She then comes up with a specific scenario to explain what she means.

[21:54] - Brad steps in to use his company as an example to show the benefits of Seacoast.

[22:58] - Allison continues to explain Seacoast’s benefits, using the example of AppFolio to illustrate their system.

[26:05] - How does Allison help clients with the pain of switching over to different software?

[29:54] - Brad points out that lots of people want to switch softwares at the end of the year to minimize hassle with sending out 1099s.

[31:51] - Do people need to split trust accounts when they reach over the $250,000 secured by the FDIC?

[35:25] - Allison lists some of the states that they can’t work in for various reasons, including Florida, Nevada, Oregon, and Utah.

[37:47] - Seacoast Commerce Bank is planning to go more national than they already are pretty soon, Allison explains.

[41:26] - Brad talks about managing HOAs and its impact on the banking industry. Allison then explores HOAs in more depth.

[44:55] - Allison talks about safer and less safe ways of paying and conducting transactions.

[46:19] - How can listeners get in touch with Allison? She offers her email address and work number: [email protected] and (619) 988-6708.

Links and Resources:

[email protected]

(619) 988-6708

Seacoast Commerce Bank

AppFolio

Buildium

Propertyware

Rent Manager

Yardi

Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!

We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!

Today, I have the honor of being joined by the remarkable and knowledgeable Tom Sedlack. Tom is a longstanding NARPM member and instructor teaching cash flow analysis. I was lucky enough to have the opportunity to take his class, and found it incredibly valuable. If you want to experience his knowledge firsthand too, don’t miss out on his upcoming speech in Orlando at the NARPM National Convention!

In this episode, we’ll mostly talk about a separate business model that you may want to consider for your management company: HOA management. As Tom explains, he and his wife manage 20 HOA associations with a total of over 1,000 HOA doors. These are spread across two areas: the Twin Cities and Kansas City. (And yes, Tom will also touch on how he handles running a company in two locations.)

Throughout our conversation, we explore the details of HOA management. We’ll talk, for example, about how it’s different from standard property management, how Tom got started in working with HOAs, and what the process is for winning HOA clients. Tom also offers fantastic insight into the details of running this part of his company with recommendations about software, checklists, and much more.

Here’s where you can find Tom:

33rd Company

@33rdCompany on Twitter

33rd Company on YouTube

@33rdCompanyMN on Facebook

Tom Sedlack on LinkedIn

Show Notes

[02:37] - Tom starts things off by introducing himself, talking about his background, and explaining how he and his wife got into property management.

[04:12] - Is Tom running his two offices from a central location, or do they operate independently?

[05:24] - Tom discusses how he and his wife broke into the property management market in Kansas City after already having a business in the Twin Cities.

[08:03] - Tom explains that they knew they needed 40 to 50 doors in the Kansas City area to break even.

[09:57] - We hear about the software that Tom uses specifically for HOA management, and whether it’s different from general property management software.

[12:34] - Did Tom join a trade organization specifically for HOA management?

[15:59] - Tom discusses who is doing the actual in-office work of handling the HOA management side of the company.

[16:53] - What are some of the unique challenges in managing HOAs as opposed to single-family homes?

[18:16] - We hear about Tom’s company is getting leads, which Brad points out is step one. Tom then talks about whether he has a long-term goal in terms of door count.

[20:50] - Tom talks about the next step of the process, which involves talking to the HOA board members.

[24:33] - Tom discusses the challenges of getting people to switch from a developer’s default management system to his company.

[27:57] - We learn that Tom uses an incredibly detailed onboarding checklist to ensure they don’t miss anything.

[29:27] - Does Tom have any leads on where to get a checklist and a draft management agreement?

[31:19] - Tom talks us through some information about the profit potential for HOA management.

[34:08] - Tom’s company uses both flat-fee and percentage-based pricing, but it’s usually a fixed price based on the number of doors.

[34:54] - Brad requests a story about a case in which Tom walked into a bad situation and turned it around.

[37:20] - The average size of his HOA clients is around 50 doors, and so about 20 clients make up the 1000 HOA doors that Tom’s company manages.

[40:03] - What are the best techniques Tom has found to help agents learn about cash-flow analysis?

[42:09] - Tom talks about how he breaks down and illustrates numbers to his investors.

[46:46] - Brad and Tom discuss the fact that property managers are pretty much recession-proof.

[47:15] - What’s the coolest thing Tom has implemented in the past six to 12 months?

[49:15] - Tom shares where listeners can find him and learn more about what he does.

Links and Resources:

33rd Company

@33rdCompany on Twitter

33rd Company on YouTube

@33rdCompanyMN on Facebook

Tom Sedlack on LinkedIn

LeadSimple

Fourandahalf

PM Grow Summit

NARPM

Grace Property Management

PropertyBoss

Rent ManagerCaliber

Seacoast Bank

Today’s show is sponsored by LeadSimple and Fourandahalf. Together, they’ve come up with one of the best conferences for property managers, called the PM Grow Summit. This event is laser-focused on growth strategies and brings together some remarkable thought leaders from around the country. I attended last year and was thoroughly impressed all around -- and that was just their first year! The next conference will be in San Diego in 2018, and I’ve already booked my spot. Go to pmgrowsummit.com to learn more, and enter promo code “Brad” to get a $100 discount on your ticket!

We’re also sponsored by Marc Cunningham of Grace Property Management. Marc has created some amazing products for property management companies, which we can say firsthand as we’ve implemented his systems here. Visit their website and try out their products! To get a 10% discount on any of Marc’s products, use the promo code “Brad”!

One question many of us struggle with regularly is that of service animals. For example, can a pit bull qualify as an assistance animal even though it may be considered dangerous? Can a twelve-foot python be an emotional support animal? What about a chicken, or a pig? Is it a reasonable accommodation to allow a blind tenant to keep a horse on the property if that is his or her primary mode of transportation?

Robert Brown, a local San Antonio attorney licensed here in Texas, joins me on the show today to talk about all this and much more. Before we go any further, let me just take a moment for a quick disclaimer: nothing in this episode should be considered legal advice. But it gives you a starting point for your research and decisions, and conversation points to touch on with your own attorney.

If you’ve ever wondered about questions related to reasonable accommodations for disabilities, service or emotional support animals, or how the process of having a claim filed against you works, tune into this episode. Robert is an expert whose services we use, so I can vouch for his ability to provide value-packed, insightful information!

Here’s where you can find Robert:

Robert Brown Law Firm

Office phone: 210-782-9111

Show Notes

[02:51] - Robert introduces himself. He explains what he does and that he specializes in representing landlords.

[04:05] - Brad asks Robert to define what a service animal is, then talks about an incident in which he couldn’t get a straight answer.

[06:28] - Robert explains that people with service animals may ask for either reasonable accommodation or reasonable modification. He clarifies what the difference is.

[08:27] - What scams are Robert seeing from tenants these days, and how can property managers protect themselves from these scams? Robert answers, then talks about how and when to ask for substantiation of a disability.

[13:38] - Robert discusses determining whether a request for modification is or is not “reasonable,” offering a colleague’s case as an example.

[16:25] - Robert’s suggestion is to have a dialogue about accommodations in writing instead of orally if possible.

[18:00] - We hear Robert’s recommendations on how to push back when you suspect someone’s requests might not be reasonable or justified.

[21:01] - Robert responds to an example of Brad’s about someone bringing in a giant snake and claiming it’s their emotional support animal.

[22:28] - Cats are one of the better emotional support animals, Robert explains. Pot-bellied pigs and chickens are other examples of possible emotional support animals.

[26:41] - Robert talks about the steps of having a claim filed against you, and the options for what to do if your tenant files a discrimination lawsuit.

[29:50] - What kind of insurance covers these sorts of issues?

[32:20] - After a short break, we come back to discuss options for what to do when there’s a case against you.

[34:00] - Brad brings up his first-ever fair housing claim, which occurred a few months ago. Robert talks about how he would work through a case and make a response.

[39:50] - Is there a no-brainer documentation situation in which Robert would always approve a service animal?

[42:15] - Brad jokes that one should never rent to attorneys or realtors. He then brings up a recent case of a new attorney applying and suggesting lease changes.

[45:04] - Robert shares a story of his own about applying for a place to live when he was in law school.

[47:03] - Robert talks about the ability to post negative reviews, which he explains isn’t the same as defamation. He then talks about how the law in question applies to landlords, tenants, and property managers.

[49:45] - What is Robert’s advice for what you should do if you get a bad review online? He and Brad discuss options, and point out that it’s vital to manage your online reviews in today’s world.

[56:18] - How can listeners reach Robert?

Links and Resources:

Robert Brown Law Firm

Robert’s office phone: 210-782-9111

LeadSimple

Fourandahalf

PM Grow Summit

NARPM

The Profitable Property Management Podcast with Jordan Muela

Property Management Podcast with Alex Osenenko

Grace Property Management