1 Property Management As a Prospecting Tool to Increase Sales

2 What it is? Why it works? Where’s the $$$?

3 Tito Velasco Property manager since 1986 I don’t sell real estate – I refer I manage residential and commercial properties My clients are owners, investors, real estate brokers and agents My purpose today is to introduce property management as a prospecting tool

4 Slide #’s located at lower right corner

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6 Property Management As a Prospecting Tool to Increase Sales What is it?

7 Property Management As a Prospecting Tool to Increase Sales The goal … “New business can be as easy as picking up the phone.”

8 Property Management As a Prospecting Tool to Increase Sales

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10 Property Management As a Prospecting Tool to Increase Sales

11 Property Management As a Prospecting Tool to Increase Sales To create opportunities to make contact with prospective clients To build relationships today for tomorrow’s transactions By servicing their rental properties with little or no interruption of your real estate activities

12 Property Management As a Prospecting Tool to Increase Sales Not new Common in commercial real estate Big enough commission to justify the cost and dedicate time, people and other resources

13 Property Management As a Prospecting Tool to Increase Sales Not common in residential real estate –Due to technical expertise needed –Due to liability –Needed time, people and other resources

14 Property Management As a Prospecting Tool to Increase Sales

15 Property Management As a Prospecting Tool to Increase Sales What you need to know? Listing agreement Leases and rental agreements How to choose tenants Move-in and move-out Rent Rules and Security Deposits Collecting Rents 3 Day Notices Raising Rents Changing Terms of Tenancy Landlord’s Duty to Repair Software and Automation Trust Accounting Management Reports Financial Reports Discrimination Cotenants, Subtenants and Guests Landlord’s Right of Entry Tenant’s Privacy Tenancy Termination Property Abandonment Dangerous Conditions in Property Criminal Acts Environmental Health Hazards And many more … Continuing education Legislation Etc.

16 Property Management As a Prospecting Tool to Increase Sales To bring commercial real estate strategy into residential real estate to increase sales

17 Property Management As a Prospecting Tool to Increase Sales What you need to do? Everything you do already … Add two more questions: –Do you own any rentals? … Income properties? –Can I give you a no obligation quote to manage your rentals? We will do the rest

18 “Your” Property Management Company We will … –Make you look great to your clients by providing great service in your behalf –Create contact opportunities for you to establish rapport with your clients

19 Property Management As a Prospecting Tool to Increase Sales We do the analysis for you … and present you ideas … You talk to your client(s) …

20 Property Management As a Prospecting Tool to Increase Sales Your clients are your clients. We could be invisible and work only in the background

21 Sample Statement

22 Property Management As a Prospecting Tool to Increase Sales Why it works?

23 Property Management As a Prospecting Tool to Increase Sales Why it works? You have reasons to call them They will listen They will remember You can establish yourself as their real estate expert You can skip prospecting Start building relationships immediately

24 Property Management As a Prospecting Tool to Increase Sales Where is the $$$?

25 Property Management As a Prospecting Tool to Increase Sales Charge a property management fee 6%-12% houses and condos

26 Property Management As a Prospecting Tool to Increase Sales Charge a property management fee 2-15 unit apartments 4%-6%

27 Property Management As a Prospecting Tool to Increase Sales Charge a property management fee commercial properties 2%-6%

28 Property Management As a Prospecting Tool to Increase Sales Where is the $$$? Charge a property management fee* –6%-12% for houses and condos –4%-6% for 2-15 unit apartments** –2%-6% for commercial properties** * Based on collected rent ** Higher $$$ volume *** Your results will vary

29 Property Management As a Prospecting Tool to Increase Sales Strategy … Referral We do everything You do nothing We pay you the whole PM fee collected less $49 per door (residential) as referral fee We deduct $60 per hour from your referral fee if we need to travel out of the office Monthly payout

30 Property Management As a Prospecting Tool to Increase Sales Strategy … Referral * Your results will vary.

31 Property Management As a Prospecting Tool to Increase Sales Strategy … Leasing * Your results will vary.

32 Property Management As a Prospecting Tool to Increase Sales Strategy … Buy and/or Sell * Your results will vary.

33 Property Management As a Prospecting Tool to Increase Sales Strategy… 1031 Exchanges (up to 4X the commission) * Your results will vary.

34 Property Management As a Prospecting Tool to Increase Sales Strategy… 1031 Exchanges (up to 4X the commission) * Your results will vary.

35 Property Management As a Prospecting Tool to Increase Sales Strategy … Turnkey Rehabs

36 Property Management As a Prospecting Tool to Increase Sales Strategy … Offer property management fee credits towards future sale of the property if they list with you.

37 Property Management As a Prospecting Tool to Increase Sales Strategy … property management fee credits 6480 = 180*3* = =23520/2* Your results will vary.

38 Property Management As a Prospecting Tool to Increase Sales Summary One of the best practices to establish client rapport Prospecting is already done Build relationships immediately Establish your credibility Gain client loyalty You are in control (see next slides)

39 Property Management As a Prospecting Tool to Increase Sales You are an insider Property performance Property details (selling points) Gain insight Recognize opportunities for transactions Make recommendations to buyers and sellers

40 About landlords … True landlords are always in the market to buy and sell If the profit (ROI) is enough, they will take action Landlords are well funded Landlords are sophisticated real estate investors Landlords want to make money. Landlords make money when they buy and cash-in when they sell They do not want to be bothered No headaches Size of landlord’s investment portfolio is proportional to their ability to solve property management issues

41 Property Management As a Prospecting Tool to Increase Sales Your next step … Add two more questions: –Do you own any rentals? –Can I give you a no obligation quote to manage your rentals? We do the analysis for you … and present you ideas … You talk to your client(s) …