Adam Rich, President at Criterium-Liszkay Engineers, shares insights from his military background and engineering expertise. He delves into the challenges of running an engineering company versus property management, emphasizing the importance of cost savings and revenue growth. Rich discusses the shift in risk appetite in business and the value of structured documentation for operational efficiency. He highlights how effective maintenance management can transform property management practices and underscores the critical need to recognize one’s worth in the market.
Adam Rich emphasizes the importance of documenting company processes, drawing on military and engineering backgrounds to enhance operational efficiency and employee training.
A balanced focus between property management and real estate investment is crucial, as an overemphasis on one can inhibit exploring new opportunities.
Valuing time and establishing appropriate pricing strategies have been vital for business success, reinforcing the importance of recognizing one's worth in the marketplace.
Deep dives
Understanding the Rental Real Estate Business
Owning rental real estate provides a steady revenue stream as tenants in need of shelter pay rent. The operational aspect of managing these properties is comparatively straightforward, allowing for easy systemization and process orientation. In contrast, property management encompasses significantly more complexities, including multifaceted revenue sources and expense management. This structural distinction highlights the straightforward nature of property ownership compared to the intricate challenges faced in property management.
Founding and Growing the Business
The journey of starting and managing RL Property Management began in 2013, brought together by a shared goal of real estate investment. The co-founders transitioned from engineering roles to fully focusing on the property management business while juggling various consulting projects initially. The partnership emphasized the importance of patient growth and adaptation as they navigated the competing demands of managing their emerging property management company and their investment aspirations. Reflecting on their early decision-making processes, it became clear that defining roles and setting boundaries was fundamental to their success.
The Importance of Documenting Processes
Documenting company processes emerged as a crucial practice early in the business, inspired by experiences from the military and engineering backgrounds. This documentation served multiple purposes: it clarified operational procedures, facilitated employee training, and ensured alignment between actual practices and established standards. The act of documenting not only clarified tasks for new employees but also allowed for evaluations of how workflows evolved over time. By regularly revising and updating documents, the leadership could ensure that their operational approaches remained relevant and effective.
Shifts in Business Priorities and Focus
The intense focus on growing the property management business often came at the expense of seeking new real estate investment opportunities. Reflecting on this, the co-founders recognized that an overemphasis on property management may have diverted their attention from potentially lucrative investments. They acknowledge the importance of maintaining a balanced focus on both managing operations and exploring new ventures to maximize opportunities. This realization highlighted the need for strategic focus in their entrepreneurial journey moving forward.
Valuing Time and Setting Pricing Strategies
From the outset, valuing time and setting appropriate pricing strategies were foundational elements of the business approach. Establishing high hourly rates and service fees reinforced the significant value offered to clients, despite initial fears about losing customers. This belief in charging for expertise ensured early profitability, which in turn fostered a positive feedback loop of confidence and financial success. The emphasis on valuing their services paved the way for sustained growth and an acknowledgment of the importance of recognizing one's worth in the marketplace.
The content of this podcast is for informational purposes only and does not constitute professional advice. I may have consulting agreements with, or financial interests in, companies mentioned in this podcast. Additionally, some of the links included may be affiliate links, meaning I may earn a commission if you purchase through these links. Always perform your own due diligence before making any financial or business decisions.
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