Wrapping Up Season 3 with The Wisdom of Marc Cunningham
Nov 6, 2023
auto_awesome
Experienced property manager and entrepreneur Marc Cunningham joins the podcast. They discuss Marc's journey in property management, deciding which opportunities to pursue, common mistakes from property managers, filtering out bad clients, onboarding new clients, thoughts on churn, and making problems go away quickly.
Property managers should establish clear processes and set expectations for clients to align with their business model.
A hybrid model where property managers have autonomy in managing a specific range of units ensures workload management and growth opportunities.
Property managers should vet owner clients based on financial stability and alignment of expectations to avoid working with difficult clients.
Deep dives
The Importance of Consistency and Process in Property Management
One of the common mistakes property managers make is lacking consistency and a defined process when it comes to managing owner clients. Desperation for business often leads property managers to ignore red flags and take on clients with varying demands and expectations. This chaotic approach makes it difficult to streamline operations and provide a consistent level of service. To ensure smart and sustainable growth, property managers should establish clear processes and set expectations for clients to align with their business model.
Balancing Workload and Lead Distribution
Managing workload and distributing leads effectively is crucial for property managers. To address these challenges, the podcast discusses a hybrid model where property managers are given autonomy in managing a portfolio within a specific range, typically between 50 to 100 units. Leads are distributed based on factors such as geography, portfolio availability, and performance evaluations. This model ensures property managers have the capacity and focus to provide excellent service to their clients while offering opportunities for growth and scalability.
Vetting Owner Clients for Mutual Fit
When it comes to vetting owner clients, one key factor is understanding the client's financial stability. Property managers should prioritize working with clients who are financially stable and capable of meeting their financial obligations, such as mortgage payments, even if there are delays in rent collection. Additionally, understanding the client's expectations and mindset is crucial to ensure alignment with the property manager's expertise and approach. By evaluating potential clients and their financial stability, property managers can build successful partnerships and avoid issues down the line.
Filtering out Owner Clients and Setting Expectations
The podcast episode discusses the importance of filtering out owner clients before signing a management agreement and setting clear expectations with them. The speaker emphasizes the need to ask four key questions: (1) Is the owner client financially stable? (2) Is the owner client emotionally stable? (3) Are they realistic in their expectations? (4) Are they willing to trust the property manager as the expert? By evaluating owner clients based on these criteria, property managers can avoid working with difficult clients and ensure a better fit for their services.
Making Problems Go Away and Minimizing Churn
The podcast episode highlights the importance of making problems go away quickly and effectively as a property manager. The speaker argues that the ultimate goal is to resolve issues fast, even if it means giving concessions or accepting fault. By focusing on problem-solving and avoiding unnecessary conflicts, property managers can build trust with their clients and reduce churn. Additionally, the episode mentions that having a significant number of large owner clients can be risky, and advises property managers to prefer smaller clients to maintain stability and avoid losing a significant portion of their business.
