Leasing Agent Vs. Property Manager

6 Replies

I recently purchased a package of 28 very well located apartments. (4 buildings) 

This is a text book reposition, however instead of rehabbing one unit at a time like I have done on two other similar projects, I decided to clean house quickly so that I could streamline the rehab process. Since going to market with 10 units, my operationally  solid  property manager has struggled  to convert leads and appointments.

This PM has built a business around being a great manager of property, but not necessarily a great leasing agent. That coupled with me throwing out  10 units at once may be a bad recipe. I am considering bringing in a leasing agent with proven success at our location/ price point to manage all leasing (cost is first month’s rent) and turn over tenant  to my solid PM once contract is signed.

Love to hear feedback.   FYI ,  my pricing on these units is in line with other units I have in the area, where I am not struggling to fill vacancies as they happen. 

Play to his/her strengths. Hire a leasing agent for $10-12/hour + commission. It's a larger upfront cost, but you'll have units filled and paying rent faster than if the PM were to lease it by him/herself. 

Mario,

Think about using local Real Estate agents, they always bring me great leads and help get my units leased faster. The more you pay, the faster you will get them occupied, must agents are hungry and look for higher payouts

@Mario Brown

How about changing the PM?  If they can't convert sales, your business is dead.  I'm sure vacating 10 units hasn't helped, but if you are priced accurately, he needs to perform.

Start compiling KPIs with the PM.

Gino

Originally posted by @Mario Brown :

I recently purchased a package of 28 very well located apartments. (4 buildings) 

This is a text book reposition, however instead of rehabbing one unit at a time like I have done on two other similar projects, I decided to clean house quickly so that I could streamline the rehab process. Since going to market with 10 units, my operationally  solid  property manager has struggled  to convert leads and appointments.

This PM has built a business around being a great manager of property, but not necessarily a great leasing agent. That coupled with me throwing out  10 units at once may be a bad recipe. I am considering bringing in a leasing agent with proven success at our location/ price point to manage all leasing (cost is first month’s rent) and turn over tenant  to my solid PM once contract is signed.

Love to hear feedback.   FYI ,  my pricing on these units is in line with other units I have in the area, where I am not struggling to fill vacancies as they happen. 

 Mario,

Having 10 units available at once sure makes it a little difficult for the PM to be successful when trying to lease 100% of them at once.

That being said, your PM should be taking care of the leasing for you and have the systems in place to market the units and convert leads into tenants.  You shouldn't be incurring on an extra expense (One month's rent on top of the percentage you are paying the PM? What?!) by hiring a leasing agent. 

Consider interviewing other PM companies.

Good luck! And congrats on adding those 28 units to your portfolio.

Congratulations Mario! I think your idea of bringing in that leasing agent will not hurt. Those are two different beasts in itself. Myself as a property manager focus on the management side of things but the leasing agent can focus more on the marketing side. The two goes hand in hand. 

@Mario Brown Have you tried to identify what the real problem is? Are you not getting any potential tenants at all? Or are potential tenants calling, visiting and deciding not to sign a lease? Is you PM advertising where other properties advertise? Is the property listed on all the platforms used by others? (craigslist, Facebook, apartments websites, ...). Think about some of these options and put it all together. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.