A Property Manager You Can Trust Specializes and Stays Focused On Your Goals:
With the housing market as out of control as it is right now, it’s a perfect time to step back and recalibrate. Whether you’re an experienced real estate investor or someone relatively new to rental property ownership, it is important to stay focused on your long term goals and the reasons you first ventured into real estate. It’s also a very telling time for real estate professionals: everyone from real estate agents, to property managers, to maintenance vendors, have really had to reexamine their best practices and business models due to the pandemic and the impacts it’s had. As many in the business have decided to make some changes to increase profits or make up for lost income, now is the perfect time for you, the savvy real estate investor, to reevaluate whether or not the company you work with is really the best choice for you.
NEXUS’ CHANGES POST-PANDEMIC:
Nexus Property Management® has spent over seven years working to become The Property Management Authority® across Rhode Island, Massachusetts, and Southern New England...and nothing has changed since the world turned upside down last March. Because our policies are consistently solution-focused and crafted with long term success in mind, we were able to provide as much value as possible to our clients during the quarantine/lockdown period just as we continue to deliver that value now.
[ Learn More: Choosing The Right Property Manager ]
LOCAL COMPETITORS’ CHANGES POST-PANDEMIC:
Since COVID threw a wrench into the real estate world, we’ve seen several real estate professionals getting “creative” so to speak. Right out of the gates, in an effort to lure inexperienced owners, we saw all inclusive, super low (a.k.a. unsustainable) pricing from property managers popping up. Now we’re starting to see property management companies adding additional services, such as real estate sales, to augment their inability to deliver on management alone. If your property manager is employing these tactics, be sure to ask yourself whether or not the company’s new direction still aligns with your goals.
[ Learn More: The Hidden Costs Of Unprofessional Property Managers ]
THE VALUE OF ALIGNED GOALS:
It is important when choosing a property manager, or any representative or agent, to ensure that their primary interests are aligned with yours. If they have interests that are not aligned with yours it’s difficult to fully trust them with your investments. At Nexus’ we specialize in property management with 24/7 leasing and in-house maintenance teams. They exist to ensure the best possible value for our clients. We also offer Investment Realty Buyer’s Agency Services [ Nexus’ Nvest® Program ] for those clients who are so happy with the value we provide that they want to expand the quantity of their Nexus managed properties. In this way, all that we do is aligned with what is best for our property owners. Ensuring and valuing aligned goals and interests is what successful and trustworthy companies do.
[ Learn More: Benefits of Buyer’s Agency, Especially These Days ]
CAN YOU BE A REALTOR AND A PROPERTY MANAGER AT THE SAME TIME?
You might know some people who have sold a couple houses and also decide to manage those properties. It’s a solid idea if you can sustain it, but there’s no real opportunity for growth, if that is one of their goals. The fact of the matter is that it is just not a scalable enterprise, unless they’ve got a team around them, and if they do, they likely need more properties to be able to offset those paychecks. It can be done at the amateur level, but more often than not it becomes sloppy, inefficient, and well-intentioned individuals end up spreading themselves too thin.
But what if a property management company wants to break into realty so they can take advantage of this sellers’ market? There are two main concerns that arise right away:
- How will this impact their incentives and dedication to your objectives?
OK...so let’s break this down a bit. As a property manager, the company should be doing it’s best to take care of your property so you’ll have a hassle-free experience with long-term tenancy, and a comfortably passive income for years to come (typical commercial lease is 25 years). That’s the name of the game: take care of the property so it is profitable, stays in your clients’ hands long term, and they can reap the massive benefits that come with real estate investment when the time comes. But...if the company has made the systemic decision to also sell properties (likely client’s properties that aren’t profitable any longer) are they still as likely to go above and beyond when it comes to maintaining and managing your property? It sounds like they’ve ditched the goal of long-term value in exchange for trying to make a quicker profit. In short, the money manager handling your 401K might start dabbling in day trading. Is this how you want your real estate investment managed?
And before moving on, it’s worth really drilling down on how backwards this seems...The company tasked with adding value to your property is now offering services so you can sell it if you don’t want it anymore??? It’s like choosing:
- a tattoo parlor for your first tattoo… who is best known for their tattoo removal…
- or bringing your luxury vehicle to a mechanic... known for selling the best used car parts…
- or maybe going with the best marriage counselor in the state... who also doubles as a divorce lawyer.
Just be sure to step back and make sure your property manager is fully dedicated to your goals as an investor.
- Will they still be able to provide the same value as a property manager?
The simple answer is no. When companies go into two different directions it’s nearly impossible for them to provide the same value in either arena. There’s some reason that adding another piece to their puzzle was necessary, but instead of addressing it and trying to find a solution, they’re going to cover it up with a secondary stream of revenue. Even if the property management piece were spot on, you need to work with someone who is focused and who specializes in exactly what you’re looking for.
When clients ask us to help them sell a property we say ‘no’. Do we know their property better than anyone else? Of course we do, but it’s in the interest of all of our clients that we instead provide references to trusted realtors, rather than handling it ourselves. Often Nexus is asked to remodel kitchens or bathrooms, because clients are extremely pleased with the work of our maintenance team. Again, we tell them ‘no’. Is there big money in it? Absolutely...but we want our team to stay focused and efficient. We specialize in quickly remedying any issues that arise for the benefit of all clients. To indulge in a lengthy maintenance request, or to dedicate ourselves to the direct involvement needed to sell a home is just not fair to the clients who have trusted us to take care of their properties for years to come.
WHAT IF I WORK WITH ONE OF THOSE COMPANIES THAT ARE CHANGING FOR THE WORSE:
Step 1: Ask your company about how their goals align with yours. As a client, you’ve established a relationship and you should be able to count on that to advocate for your own needs and interests. Don’t hesitate to ask how COVID has affected their business and their outlook. As property managers, it is important that we are all transparent to ensure maximum value is being provided. Hopefully, that conversation provides the answers and confidence you were hoping for and that “reevaluation” we’d recommended in the first paragraph was successful.
Step 2: If you’re not pleased with the direction your property manager is taking, reach out to Nexus for further advice or to gather more information. The whole team is here working tirelessly to elevate the place real estate investment holds across the investment world. One day, just as many people will own investment property as do contribute to a 401K. Contact us to find out more.
Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.
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