Property Managers: Where Did Your Last 10 Clients Come From?

Question

I'm trying to better understand where property management business is actually being generated today.

For those who manage residential rentals, where did your last 10 clients come from?

• -Realtor referrals?
• -Existing client referrals?
• -BiggerPockets?
• -Other?

I'd love to hear real-world experiences and what has provided the highest return on your time and marketing efforts.

Stephen Delahoussaye · Answer

Great question Eric. I run a PM shop in Nashville managing about two dozen doors and I can break down exactly where our last 10 came from.

Realtor referrals are our biggest channel by far. I am also a licensed broker so I have natural relationships with agents who run into owners that need management. When an agent closes a deal for an investor who lives out of state the handoff to a trusted PM is seamless. We probably get 4 out of every 10 new doors this way.

Existing client referrals are number two. This is where the weekly owner report pays for itself ten times over. When you are proactively communicating with owners every single week they feel taken care of and they tell their investor friends. We had one owner refer three separate colleagues to us last year alone.

BNI and local networking groups are number three. I am in a BNI chapter here in Nashville and the referral pipeline from that group has been steady. The key is being the only PM in the room so every time someone mentions a landlord who is overwhelmed you are the obvious recommendation.

BiggerPockets has been a slower burn but the quality is high. The people who find you through forums tend to be more educated investors who understand the value of professional management and are not just shopping on price.

Google and organic search round it out. We invested in a clean website that ranks for Nashville property management and that brings in a steady trickle of inbound leads.

The one thing I would add is that retention matters more than acquisition. We run an 8% management fee with transparent reporting and our owner churn is almost zero. That compounds over time and means you do not have to constantly replace doors just to stay even.

Jimmy Lieu · Answer

Hey Eric, from what I’ve seen, referrals still dominate by a pretty wide margin once a PM company gets established. Most of the successful operators I know get the majority of their new clients from existing client referrals and Realtor relationships. Realtors especially tend to be a strong long-term source because they constantly run into accidental landlords or investors buying new properties who need management right away. BiggerPockets can definitely generate leads too, but usually more through consistently being helpful and active rather than direct advertising. I’ve also seen a lot of PM companies get traction from local investor meetups, Facebook groups, vendor relationships, and just answering questions online without pitching services. The common theme seems to be trust and visibility over time. A lot of owners are nervous handing over a property, so they tend to go with whoever they’ve seen repeatedly provide solid advice or whoever was recommended by another investor they trust.