Hi Seattle community- any comments/feedback about Renters Warehouse? I'm considering testing their marketing & property management services in one of my properties. Looking specifically for comments about their fee structure (hidden fees that are not disclosed on the website) and quality/effectiveness of their property managers over the course of a lease. Thanks in advance!
@Marcelo Bellinaso this is a service for unsophisticated buyers. Worse pricing. In this sellers market I would say you would be losing money as soon as there is weakness in the economy. But still it's better than not doing anything.
@Marcelo Bellinaso just curious what drew you to Renters Warehouse? In my market they are a flat fee provider who sells on low price and high volume and they do a crap load of advertising. Always interested in what the end consumer was drawn to initially. Was it price, perceived value by company being a national franchise, etc?
@Robert Gilstrap 2 things attracted me to Renters Warehouse: fixed monthly fee for property management and fixed fee for lease renewal. If they are able to deliver with quality, this fee structure would help me improve the cash flow situation in my portfolio.
@Marcelo Bellinaso So you can help me with some feedback. My response to fixed fee providers is typically: What incentive does the fixed fee provider have to get the owner maximum market rent if they are only getting a fixed amount vs. a percentage of rent?
Equally so, what incentive does the fixed fee provider have to spend time and resources doing annual market analyses and negotiating to get consistent rent increases at renewal if they are only getting a small renewal fee?
@Robert Gilstrap This is a fascinating discussion and I really appreciate your insights. In my view, the assumption that % of rent alone can ensure a property manager will do their job well is flawed. I'm far from an expert in real estate but my observation is that the real estate industry is being disrupted and new business models are emerging. Scale can change any game (Amazon is an example) and some providers will to bring to market things that were unthinkable a few years ago just to reach enough scale and market share to disrupt their competitors. The question for me is 'can they fulfill their promises and build trust in order to get the chance to and continue playing the game?' That's what I'm trying to learn about Renters Warehouse.
@Marcelo Bellinaso Agreed on market disruption and I certainly am not stuck on the old model of percentage based except to the degree of me realizing that it's hard to build an effective profit model that goes against human nature. The whole thing of "the more you make the more I make" is a powerful motivator. I think the question is what are the "unthinkable things" that they or others are bringing to market? I haven't seen much yet but I don't discount someone will. I know for our company we're constantly trying to innovate in how things are done and transform how rental management works.
@Robert Gilstrap I'm curious to know if you ended up using Renters Warehouse, and if so what has been your experience?
Oops, you are right Robert - I meant @Marcelo Bellinaso (that's what happens when you late-night on the forums!).
@Tal Simpson @Robert Gilstrap Renters warehouse managed 4 units of my WA portfolio for 12 months. Overall the experience was positive and their their low, fixed monthly PM fee saved me quite a bit of money in 2018 (~89/house/month vs. ~230/house/month). In my experience, the main difference in their approach is that they split the traditional functions of a property manager across different individuals/teams and invest heavily in self-service platforms and technology to ensure information flows timely and correctly across all parties involved. While this was OK with me I did have to pay close attention to how maintenance issues were handled to avoid execution problems. I also noticed that some my tenants were not very happy with the need to interact with different actors required to get their requests resolved. They have an opportunity to super-charge their model by improving internal communications as separation of functions have the potential to create disconnects if the right tools are not in place or employees are not training well. I decided to transition back to a more traditional PM approach (one point of contact for all things PM) for 2019 as my new job will be demanding and require travel but if nothing had changed I would probably have stay with Renters for the foreseeable future. I hope this help... let me know if you have any questions.
@Marcelo Bellinaso just curious, even though Renters Warehouse manages properties with a flat fee of $89/unit/mo, don't you also need to take into account the 1mo lease fee? While I still think there are cost savings with RW, I think this additional cost would need to be applied to arrive at the effective month management fee. Thoughts?
Sorry this may be a bit delayed, but I recently opened up my own Property Management company called: A6 Urban Properties, LLC. Happy to help if you are still in need of PM services. I already have 12 units in West Seattle and a SFR in Burien. One point of contact, with great communication skills. Even with bad news!Happy to help!
A6 Urban Properties, LLC