My name is Evan Bloom. I have run a small property management company in Kansas City for two years. I currently manage six single family residential properties in the Brookside/Waldo area for local investors.
I want to grow our current operation and was curious about the best practices on how people have done that. Outside of the usual networking opportunities both online and in person, what are ways that people have found helpful to scale a small property management company? Are there particular groups/events in the Kansas City area that could help with this? What are good ways to get potential leads for new business?
Congrats on two years, @Evan Bloom. Six doors in one neighborhood is a great base to build on.
A few things that have worked for other small PMs: own your niche. Being the go-to manager for Brookside/Waldo single-families is easier to market than being "a PM in KC." Your current owners are also your best lead source, since they know other investors, and a small perk like a discounted month of fees can encourage referrals.
Agents, lenders, contractors and CPAs get asked "who manages rentals?" all the time, so build relationships with them. Burned-out landlords, like out-of-town owners, inherited properties and self-managers tired of the calls, are great leads too. Keep your Google Business Profile current and collect reviews so they can find you.
Before you add a lot of doors, tighten up onboarding, vendors and reporting so growth doesn't turn into chaos. Local investor groups (REIAs) and a NARPM chapter are also worth checking out. Keep going, you're building something good!
Build referral relationships with investor-friendly agents, lenders, and attorneys (and join MAREI to meet them), keep your six owners so happy they send you more, and don't add a hire until your systems can handle 20+ doors.
Clean Accounting and contractors. When i was at your scale, i did everything i could to win over good contractors, so they went the extra mile for me. Pay them fast, and don't nickel and dime.
The accounting quickly becomes a massive task. Find the right software and get a bookkeeper. Use the time saved to sell.
Evan, congrats on two years. Six doors in one neighborhood is a real base. One thing I’d add to the great advice here: speed to lead. Landlords who are ready to hand off are usually frustrated, and the first manager who calls back tends to win. Before spending more on marketing, make sure every inquiry (phone, web form, Google profile) gets a reply within minutes, even after hours, plus a simple follow-up for the ones who aren’t ready yet. Most small PMs lose more owners to slow follow-up than to competitors. What happens today when an owner reaches out to you?
Evan, six doors in two years while keeping owners happy is a solid start, so be kind to yourself. From all my years in property management, the owners who stayed were the ones who got calls back fast and never felt surprised, so your best leads may already be your current owners telling a friend....
Evan, before adding more lead sources, I would write down what a good-fit owner and property look like for your current operation.
Six homes concentrated in Brookside and Waldo can be a real advantage. The wrong 20 additional doors can erase it if the properties carry heavy deferred maintenance, the owners resist reserves or approval limits, or their communication expectations do not match your service model.
A short intake can cover condition, current tenants, open repairs, reserve expectations, approval authority, reporting preferences, and why they are changing managers. That gives you a way to qualify new business instead of measuring growth only by door count.
The marketing ideas here can create more conversations. A clear fit standard helps make sure those conversations produce a healthier portfolio.
Evan, the replies on referrals and speed to lead are good. One thing I'd do before chasing growth is make sure the back office scales. At six homes you can keep it in your head. At 20 or 30, what owners notice is whether their monthly statement shows up on time and matches their deposit, and whether a repair got approved and finished without them chasing you. If you get those two things running the same way every time now, every new owner is easier to take on, and your current owners turn into referrals. What are you using today for owner statements and work orders?
I would target Realtors that work with investors, get to know them, offer to run property analysis on the property and come up with a guarantee that you refer the client back to them when the time comes to sell.
Six doors in one neighborhood is a great base. The advice here is right, but here's the boring part that decides whether growth sticks: get the back office tight before you add doors, not after. At six doors you can wing the trust account in your head. Around 20, owners start comparing notes, and one late distribution costs you a client you worked hard to win. My company sees that break all the time. Lock in three habits now: reconcile the trust account every month, no exceptions. Statements out the same date each month. And a written month-end checklist so the close doesn't depend on whoever's free that week. Leads are the fun part. Clean books are what keep the doors.
@Evan Bloom your post is not crystal clear on what exactly you are looking for. Not to be rude, but managing 6 units for two years is a Tuesday morning for a full time PM. If you are managing your own, yes, that is an accomplishment to acquire the properties, especially if you are holding down a full time job, but managing for others is quite different. First, as @Drew Sygit pointed out, you do need to be properly licensed to carry out real estate activities based on local law. Along with that comes proper insurance, bonding, and whatever requirements your state has for handling those funds...usually a Trust account that is entirely separate from your own operating or personal funds. Even if you do have a sales license, and are working for a Broker, you generally need explicit authority from the Broker, since their license is at risk for anything RE related that you do.
Aside from all that, unless you already have, solid systems for marketing, screening, tenant management, your move in/move out processes, rental prep, house rules/pet/no pet policies, and all the documents that meet local, State, and Federal laws to carry out the various processes, it will not take long to reach a critical level of chaos when you do acquire more clients. Certainly you must have vendors identified for the trades you will need, but to be clear, rolling the dice by using improperly licensed or insured contractors on other peoples property, places huge liability directly on you. You need to establish business accounts with multiple preferred vendors to be effective handling service requests and emergencies.