Property Management Growth with DoorGrow DGS 66: Predicting Your Rentals Profitability with RentFax
Are you tired of chasing doors? Do you need help to define the areas you’re managing? Do you know how much bandwidth is required for those areas? How do you establish rents? How do you predict rental profits?
Today, I am talking with Scott Abbey of RentFax, which is a tool that helps you figure out the answers to all these questions. It helps you, as a property manager or investor, grow your business.
You'll Learn...[03:25] Each door doesn’t require the same bandwidth, which is a critical metric for determining whether you want a door or not, and how to charge for it. [04:37] RISC Index: Features 15 sub-indices of census data that identify demographics about properties to indicate probability of an income stream and interruptions with it. [08:45] RISC Index weighs comps based on proximity and likeness of the demographic; it considers square footage, number of bathrooms, and other factors to predict rent. [10:05] Cycle of Suck: If you take on bad owners and bad properties, you’re going to get bad tenants and a bad reputation in the market; operational cost is much higher. [12:05] Shift from being a service provider to a consultant to give advice with supportive data that improves customer satisfaction and wins you more deals. [14:09] Areas can change over time; something can happen in the area that materially reduces the demographic forces and causes a decline or absence of improvement. [14:55] RISC Index enhances range of rents that are probable for the address by taking additional algorithms to the data; if the range is too wide, it’s not helpful to you. [15:20] RISC Index is only product that quantifies relative risks of an address for every U.S. neighborhood; when looking at rents, it’s helpful to know the risks. [16:00] Rent affordability is #1 factor for disrupting rents; be sensitive to demographics of the people who are going to be attracted to the property to adjust rents. [17:30] Rent Package includes a risk report, rent analysis, and historic vacancy number. [21:10] RISC Index can be used as an indicator that helps make buying decisions; property manager turns into a deal maker to help existing clients grow their portfolio.
TweetablesEach door doesn’t require the same bandwidth.
Provide consulting with data as support to win more deals.
Cycle of Suck: Loop of high operational cost, not able to scale and grow.
ResourcesCensus Bureau - Year 2000 Results
DoorGrowClub Facebook Group