How to expand my property management company.

Question

Any thoughts on how to expand my property management company in Chicago, IL? I currently manage nine properties for 5% of the gross rent. I am looking to build that to at least thirty multi unit buildings to manage.

Nathan Gesner · Answer

You manage nine properties and they rent for $95,000 a month? You have a full-time handyman? How many units are you managing?

I'll tell you this right now: you will never survive on a 5% management fee. Just do some research on discount PM companies. You'll see they either have add-on fees out the wazoo or they go belly up within five years.

Sajjad R. · Answer

@Alden Doolittle1. Social Media Marketing2. GMB optimization3. SEO of your website4. Word of mouth is a special sauce in some cases. So make sure your circle knows what you are doing and planning on to scale fast.5. Answer Calls in a timely manner. As per research, only 2 out of 10 property management companies answer calls in a timely manner. I personally have worked with investors in choosing a property management company. And it sucks, they are bad as answering calls.6. As you build your portfolio, make sure you scale as a team. If you try to do all yourself, your growth rate would suck.Feel free to DM if you have any questions or want to hear more.

Bob S. · Answer

Yes advertise, and network not really sure what more to say. I went from zero to 500++ in 3 years, Will have 250 more this year,

Mark Ainley · Answer

@Alden Doolittle we have a local Chicago meet up for third-party property managers that we meet monthly to discuss the best practices amongst the group. I will DM you over the link so you can check it out.

Alden Doolittle · Answer

Hey Eudith,

I manage properties in Logan Square, Wrigleyville and Ukrainian Village. I manage the crm ,Buildium, tenant relations, leasing, and basic property upkeep. There is a full time handyman who bills the properties directly for repair work. Properties monthly gross is around 95K. My plan is to triple my management portfolio. Would love to hear more about your work in Chicago!

Serena Ivaldi · Answer

Hi, I have a question. How do you procure a sponsored broker to sponsor your license for property management?

Thank you in advance!

Zack Oberlies · Answer

Hey Alden - I did this a few years ago in Chicago before moving to Austin...I've got a lot to say. Send me a message and lets hop on the phone this week.

Alden Doolittle · Answer

Thank you everyone! I appreciate the advice.

Beth Bannor · Answer

+1 for attending in person real estate meetings. Being a guest speaker would be a great way to extend your efforts.

Jonathan Klemm · Answer

Hi @Alden Doolittle - Sounds like you have a pretty good process in place as far as management goes. I'd update your signature here on BP so everyone knows what you do and start posting daily looking for the keyword Chicago.

Also, I'd suggest heading to as many in-person meetups as possible.

Lastly, consider connecting with @Mark Ainley or @Jared Kott they have both scaled their property management businesses significantly.

How to expand my property management company.

How to expand my property management company.

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