How often does your Property Manager suggest/advise income opportunities?

Question

Hey Team,

First post here, so I really appreciate the patience!

I'm curious to know how often property managers actively suggest value-add activities for properties (ie, building an ADU, remodeling, buy-fix-hold opportunities etc etc).

Any feedback here would be super helpful!

Cheers,

Marshall

Adam Bartomeo · Answer

One of the best times to implement value add is when there is turnover so that is typically when the owners hear from us. We often give owners advice before the turnover letting them know that if we turned over the tenant, how we could improve the property, at what cost, and what the rents would improve to. We only do this when we see opportunity, not when the property is already maxed out.

Peter Mckernan · Answer

I would say that 95% of PMs will not talk about adding value to properties are adding more to your bottomline/top line. These are people that are property managers not asset managers. Asset manager role would be to give advice on property that could be value added and increase the income on a property by small or big tweaks. It's like a syndication operator verse a money manager. These people are built to value add deals, you would have to look hard for these people in your market and probably pay them top end pricing to get your properties performing amazingly well!

Kevin Epp · Answer

Good question to ask when screening a PM is if they are real estate investors themselves.

If you want a PM to be proactive or knowledgeable on where/when to add value (asset management assistance), find one that is an investor. Then ask them specifically if they help with this sort of thing.

Oftentimes owners of businesses want their employees to "think like an owner." That's a common phrase.

Real estate investors can get more bang for their buck from their PMs when these folks "think like an investor."

Nathan Gesner · Answer

Interesting question. I've been managing for 15 years and have helped a couple owners change/expand their portfolio. One of my clients has added about 50 doors through me. However, I haven't been deliberate or proactive.

That's all changing today! I now monitor the owner's equity, return on investment, and other factors and then proactively reach out when they are ripe for selling, exchanging, or adding doors.

Peter Tverdov · Answer

I email our entire portfolio each year and offer to know what their goals are and how we can get them there. I work with a handful of clients each year on the acquisition and construction side and help them make an enormous amount of wealth on top of managing their properties here in NJ.

If you treat your PM like a company that just unclogs a toilet then you're really short changing yourself.

John Williams · Answer

I invite my clients to meet with me at quarterly to discuss their investment goals and strategies to grow their portfolios.

Marshall Robins · Answer

Happy to hear you're leaning into a more proactive role - with a single portfolio that large I'd imagine your insight will be appreciated.

How often does your Property Manager suggest/advise income opportunities?

How often does your Property Manager suggest/advise income opportunities?

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