Self-Managing A Property Management Company

Well, I’ll use the word discipline. We treat our property management company like a third party, as much as we can, it’s tempting to go downstairs where they are on the first floor and we’re on the fourth floor. We’ll walk on property with them and give some directive to the managers and we just don’t do that. It’s a slippery slope and you can get cross-eyed if you would on both businesses but I think having that experience doing the asset management role for the third party. Really helped us understood that you can’t just walk on property and just start stirring the pot. I mean, we’re picking battle that’s really insignificant or bust them up on a $70 charge on the GL. Having that awareness and tell anybody out there to start your third party, if you can kind of draw those lines and stay in your lane. I think the third party is probably something that might work for you and that’s how we do it.

Listen to full episode:https://lifebridgecapital.com/2019/08/ws293-self-managing-a-property-management-company-with-jacob-garza/

We probably run about 15% leaner expense per unit and it certainly has helped us but I think it’s an overall strategy is the same in I think for the investors out there. We’re first and foremost an investment firm. That’s what we do. We take people’s money and put in our money and we make it grow and we’re stewards of that. With that, I think comes the asset management role and if you can become a good asset manager and communicate your 10 KPI’s and put the overall vision of the property and drive that through the regional director and drive that through the employees on each property, you're going to do just fine. I think you’ll pay a little more for it maybe with a third party but again, those elements, all the syndicators who are out there will be just fine and do really well.

KPI’S are reporting points or they’re data and every syndicator has their set and it’s more than just N.O.I., it’s more than just total income, an I’ll take for example, delinquency. My belief is there are some things that control delinquency well before the fifth or the 10th a month. There are things that happen on the leasing end, on the property walk that help that delinquency number. Well we had a set of KPI’s that make sure our properties are doing these things so on the fifth, you know, we’re collected, on the tenths, we’re collected. It is not, “Oh my gosh it is 28th of the month and you guys are 10% delinquency. It is the wrong time to look at that number. So we look at data points along the way just to make sure that come the tenth, we are in a really good shape and we are in the class worst housing and we may not get everything from the third or the second. So we watch those very carefully and there are really no surprises when those dates come around and we find that we are at 95% productivity on these KPI’s.

Listen to full episode: https://lifebridgecapital.com/2019/08/ws293-self-managing-a-property-management-company-with-jacob-garza/