Property Management Growth with DoorGrow DGS 35: Using Options to Grow Your Property Management Firm
A lot of people may want to upgrade their home or location, but money is tight and they are tied down. Mike Kalis of Marketplace Homes has a solution for this. Not only does he help people break ties with their existing homes and move into new ones, but he successfully built a business around this practice.
Today we are talking about how to use options to grow your property management firm. Doing things like helping tenants and owners by leveraging rent-to-own options. The goal is to increase revenues and have enough money to provide a high level of service.
You'll Learn...[04:02] Mike's company is close to 3000 doors in 28 states. [04:49] How we will talk about increasing revenues on transactions. [06:54] The biggest benefit is helping owners get out of their homes without having to sell right away with a rent-to-own plan. [08:01] This is also a second chance opportunity for the tenants. [09:09] Pros and cons a tenant could put money down and if they don't purchase they would lose that. The owner could lose out if they set a price that is lower than future market value. [10:32] What an option agreement actually is and selling the option to the tenant for $5000. [12:53] How this method actually helps grow a property management business. [14:01] How accidental investors are the one's property managers make the least from. This method helps make a profit from this group. [21:14] Signing the purchase agreement right out of the gate and list and itemize all expenses. Making sure the tenant understands the fee is non-refundable.
TweetablesNot having enough money to provide high service levels makes us unprofessional.
The better the pricing, the more likely the tenant is to close on the option.
This is a neat thing that offers owners and tenants more than just a service call.
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