Property Management Best Practices: Consistency For All Clients
Are You A Good Fit For The Nexus Property Management® Model?
Nexus Property Management® has spent seven years evolving and improving to help solidify itself as The Property Management Authority® across Rhode Island, Massachusetts, and Southern New England. Now with four offices, 1000s of units under management, growing franchise opportunities, and team members growing their own personal portfolios, our trajectory is exponential and we want you to join us in making the most of the real estate market. That being said, not everyone is a perfect fit for the Nexus Model, in the same way that not every customer is a good customer for any serious business. Vice President of Franchise Sales, Greg Rice, wants to be upfront and honest in the spirit of efficiency, a core principle behind Nexus’ rapid success over the years. Hear more from him directly in the video below:
QUALIFICATION, IN A GENERAL SENSE:
According to Josh Kaufman, the Founder of PersonalMBA.com, qualification is the important process of determining whether or not a prospect will be a good fit for your company. While simple intuition may suggest that the more clients or customers you have the more income you’ll create, this simply isn’t the truth as not all customers are created equal in terms of time and attention that is needed. A perfect example comes from marketing guru Seth Godin, author of 20 Worldwide Bestsellers and 2018 inductee of the American Marketing Association’s Marketing Hall of Fame. As the story goes, Godin is a vegetarian who frequently ate at David Chang’s Momofuku Noodle Bar, well before it was celebrated as one of the world’s top restaurants. More often than not, Godin would order a bacon dish without the bacon, and Chang was happy to comply (why not save on the most costly part of the meal?). Finally the day came when Godin again asked his server to hold the bacon; this time Chang’s team replied that they only serve it “as is” and that this might not be the best restaurant for him to eat at. Rather than take it as an insult, Godin appreciated that Chang had moved toward efficiency, qualification, and (accurately) predicted that Momofuku was going to take off.
NEXUS’ PROCEDURES AND PHILOSOPHIES AS BEST PRACTICE:
Just like a successful restaurant, Nexus has a menu that we stick to so we can ensure maximum efficiency and best value for all of our clients. From time to time, this leads to headaches and conflict with individual clients who have their own procedural ideas in mind. The short of it is this: if you hire a company to manage something for you and then tell them, “I think you should do it this way”, you may need to reconsider paying professionals in the first place.
Under founder and CEO Nick D’Agnillo, Nexus has been built as a solution focused company that creates policy based on getting it right as often as possible. This approach allows for standardization, consistency, and increased value for all clients, not just those who are the loudest. By regularly catering to the concerns and requests of individual clients, we not only take from the majority who trust our judgement, but also reinforce that by complaining enough you can get your way. Micromanagement and response to the squeakiest of wheels is not a recipe for efficiency.
[ Learn More: How Poker Strategy Guides Nexus Procedures and Policy ]
Instead, and for the benefit of all clients and tenants alike, Nexus needs to stick to the time-tested procedures and philosophies that have allowed us to grow quickly and successfully throughout Southern New England. We need to use our resources to maximize value for clients so they can reinvest and continue to grow their real estate portfolios.
MOST COMMON CONFLICTS:
1. RENT COLLECTION: “If the tenant is late in paying rent you need to go collect it in person!”
Sorry, we don’t do that. It is inefficient and driving around New England is not the best way to add value for our clients. When the tenant signed the contract, it was very clear that they could either bring a check or money order in person or they could mail it to the office. It’s not their first month paying so they’ve proven that they can do it...they didn’t forget how. If we were to go to their house and they only have cash, we’re not going to take it anyway as there’s no way to track it / record payment. And finally this action would be reinforcing inefficient behavior as the tenant’s expectations would change dramatically. He or she would have no reason to mail rent on time ever again. And now do we extend this service to all tenants? It could be discriminatory if we do not. Efficiency really is key and it’s so easy for it to unravel if you don’t stay true to your principles and best practices. If you don’t want bacon, maybe you should eat somewhere else.
[ Learn More: All Too Common Rental Payment Scam ]
2. CALL THEM UP: “If the tenant is late in paying rent you need to call them on the phone!”
Sorry, we don’t do that either. It is inefficient and calling tenants who already receive daily email reminders and mailed notices is not the best way to add value for our clients. Tenants have proven computer proficiency by signing documents online, paying in the past, utilizing the online maintenance portal, and any number of other automated options that are common these days with a professional property manager. When we call on the phone, we don’t get money, we get stories. For an owner, it might be more comfortable to accept that a tenant didn’t pay rent and you did everything you could to try to get it, but comfort and efficiency are typically not compatible.
3. INTERIOR INSPECTIONS: “Let’s get in there so we can see if they’re following the lease!”
Sorry, we really try to dissuade clients from doing that. Again, this is an issue where want for comfort can backfire. More often than not, interior inspections while tenants are living in your apartment leads to a spike in maintenance requests and problems from tenants who are now well aware that you don’t trust them. Their way of living may not be what owners would expect for themselves but micromanaging others by invading their privacy adds stress and anxiety to all parties. As a real estate investor, you want to keep your tenants an “arm’s length away”. You want to monitor maintenance requests, address tenant complaints, and address the financial side (paying mortgage, insurance, etc.) so your property can continue to bring you passive income.
JOIN US IN MAKING THE MOST OF THE REAL ESTATE MARKET:
If you’re interested in learning more and think you’d be a strong partner with our Nexus team, contact us. In the subject line you can simply put, “blog response” and then tell us more in the message area provided. Whether you’re interested in our services or are simply interested in learning more from our experiences, we’re excited to bring more and more people closer to the great opportunities that real estate investment brings with it when you do it the right way.
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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