Growing Your Property Management Company


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This presentation was a panel at the 2011 CA Association of Realtors with Melissa Prandi, Tom Fanelli, Michelle Horneff-Cohen, John Bowen, and Andrea Caldwell.

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  • RealtorsExisting ClientsHOAs/Community AssociationInvestor Groups
  • Lead: Tom
  • Key point here is that this is a revenue number, but since companies are setup differently the profit will vary wildlyThis is the luxury that we have had as Propertyware observing businessesThe best companies I have seen manage to the ROI on this spend, while incredibly profitable with the accounts they manage
  •*Experian Hitwise
  • Growing Your Property Management Company

    1. 1. How to Profit in <br />Property Management<br />Moderated by Melissa Prandi, RMP®, MPM®with John Bowen, Andrea Caldwell, RMP®, MPM®, MichelleHorneff-Cohen, RMP®, MPM® and Tom Fanelli<br />
    2. 2. Goals For Today's Session<br />Where to Start to Make Money<br />Ways to Acquire clients<br />Referral Programs<br />What’s Cost of a Lead?<br />Property Management Profit Formula<br />The Right Web Presence<br />Maximizing Leads with Search Engines<br />Differentiate From the Competition<br />
    3. 3. Where to Begin Making Moneyin Property Management?<br />
    4. 4. Fees, Fees, Fees<br />Notice Posting Fees<br />Annual Administrative Fees<br />Management Fees<br />Application/Processing Fees<br />Special Services<br />Lease Only Fees<br />Application Fees<br />Lease Preparation Fees<br />Annual Walk Inspection Fees<br />Set-Up Fees<br />Leasing Fees<br />Pet Application Fees<br />Lease Re-Write Fees<br />Real Estate Sale Referral Fees<br />Marketing/Advertising Fees<br />Pet Rent<br />
    5. 5. Expert Panel<br />Proper way to charge fees?<br />DRE Regulations regarding fees?<br />What are some other fees you can charge?<br />What is your source of your Management Contract are you using? <br />Terms?<br />
    6. 6. Ways to get started…<br /><ul><li> Purchase a company/Acquisition
    7. 7. Organic Growth (one at a time)</li></ul>Expert Panel—<br />How did you get started? <br />
    8. 8. Source of New Business…to actually earn those fees!<br /><ul><li>Establish a program
    9. 9. Make sure you can track it
    10. 10. Consider reference selling
    11. 11. Video Testimonials
    12. 12. Case Studies
    13. 13. Speaking Opportunities
    14. 14. Networking
    15. 15. Trade Associations</li></li></ul><li>Cost of Customer Acquisitions: Referrals<br /><ul><li>½ to 1 months rent
    16. 16. Pay-per-lead
    17. 17. Appreciation expenditures
    18. 18. Time spent maintaining these relationships</li></li></ul><li>Expert Panel<br />How do you generate referrals?<br />Are you paying referral fees?<br />For tenant leads?<br />For new client leads?<br />For lease only business?<br />Other gifts/recognition ideas?<br />
    19. 19. Tom Fanelli,Marketing & Online Presence Guru<br />Thomas M FanelliVP Product MarketingSMB Division/RealPage<br />Over 15 Years of Internet Marketing<br />Business Marketing Coach/SBA<br />5 Years Running Interactive Agency<br />Specialized Focus on Local Search<br />Focused on Property Management Last 6 Years<br />
    20. 20. Clearly Define Your Goals<br /><ul><li>Lead Generation
    21. 21. Quantity
    22. 22. Reporting
    23. 23. Goals
    24. 24. Branding/Awareness
    25. 25. Experimentation/Testing
    26. 26. Target Metrics
    27. 27. Website Traffic
    28. 28. Facebook Fans
    29. 29. Twitter Friends
    30. 30. Referrals
    31. 31. Testimonials</li></li></ul><li>The Profit Formula<br />Generate traffic through paid/natural search optimization and auto listing syndication<br />Prospect can search rentals or browse content on hosted website<br />Leads captured through a web form or call tracking and recording<br />Campaign tracking to measure marketing ROI<br />Track activities and sales process<br />Convert to customer and track effectiveness of entire process<br />
    32. 32. What Are You Willing to Pay for a New Owner?<br />$200<br />$300<br />$400<br />$500<br />$600<br />
    33. 33. Marketing Cost Per Lead<br />
    34. 34. Cost of Acquisition: Online Marketing<br />Other associated costs: Software, Marketing Materials, Events <br />$500/Owner<br />
    35. 35. Even More Hidden Costs<br /><ul><li>Proper tracking of leads
    36. 36. Analyzing profitable lead sources
    37. 37. Ensuring your staff follows up
    38. 38. Time Spent Educating Prospective Clients
    39. 39. Start up costs
    40. 40. Data Input
    41. 41. Initial Marketing versus Second Lease</li></li></ul><li>Expert Panel<br />How do you measure the value of a lead?<br />Do you calculate your ROI?<br />What are some other marketing expenses?<br />What is an acceptable lead to close ratio?<br />
    42. 42. Online Marketing<br />
    43. 43. Your Website<br />
    44. 44. Conversion Goals<br />Average Site <br />Conversion = 1.5%<br />Quick Contact<br />Conversion = 4.5% +<br />MicroSites<br />Conversion = 9% +<br />
    45. 45. Website Essentials<br /><ul><li>Easy Searching
    46. 46. Map & List Views
    47. 47. View Photos & Video
    48. 48. Read Information
    49. 49. Share on Social Media
    50. 50. Contact Agent</li></li></ul><li>Optimizing Your Profits with Software<br />
    51. 51. Website Action Items<br />Invest In Visual Design<br />Hire a Professional Writer<br />Have Professional Photos Taken<br />Publish Rental Listings*<br />** Go on your website now….act like you’ve never been there before—if you’re a client is information easy to find? Are there phone and emails present on your landing page? What are your first impressions of your company? **<br />
    52. 52. Expert Panel<br />How often should you update your website?<br />Where do you post your rentals online?<br />Should I use video on my site?<br />
    53. 53. 3 Facts About Email Marketing<br />1<br />2<br />3<br />
    54. 54. Email Essentials<br /><ul><li>Design Clean, Professional, Branded Templates
    55. 55. Check Compatibility with Email Client
    56. 56. Use Compelling Calls to Action
    57. 57. Promote Social Media in Template
    58. 58. Comply with Spam Laws</li></li></ul><li>Expert Panel<br />What is the biggest time saver when automating your business?<br />What did you do to increase the amount of customers paying online?<br />What tools have you found the most valuable?<br />
    59. 59. Differentiating From the Competition<br />How Enhanced Marketing Service Can Pay<br />
    60. 60. Premium Services Plan<br />
    61. 61. Productize Your Business<br />
    62. 62. Expert Panel<br />How to you differentiate your services from your competition?<br />What is your “secret sauce”?<br />Have you thought of or do you “un-bundle” your services?<br />Do you target a specific niche of properties or type of clientele?<br />
    63. 63. Final Thoughts?<br />Any Questions?<br />