How to Make Money Flipping Property in This Market
Communication
The Relationship "Shift"
Typically there is a lot of communication that happens between the PM and the Client / Property Owner in the early stages of the relationship. There is a great deal of expectations to live up to in these early stages and these rules only exist in the mind of the Client. There's a component of trust to be handed over however, as one client said when asked if she "trusted me", trust is earned. Sometimes we think that because we feel we can be trusted that we are, so I'm glad that this client said that to me because it reminded me my work was not done after the contract was signed, good tenants were located, and our relationship was successful. The PM / Client relationship is on-going and one small slip could destroy a lot of built-up trust.
To begin with we spend a huge amount of time with the client to clarify their expectations, explore their financial position, learn about the property, determine rents based on the market and owner expectations, transition the property to a solid rental, etc. During this process we are slowly peeling back the emotional layer that they have in relation to their property. Because we specialize in high caliber and furnished rentals these properties are usually owner occupied when they arrive in our portfolio and walking away leaving it in a strangers hands to manage is a hard thing to do. This is the ultimate goal, to help the client understand that the property is only an investment from now on and to essentially leave it behind them in mind and energy - at least day-to-day. When they can let go enough to let us do our job then things go smoothly.
We're believers that your time & energy is finite. This is why, after the tenants have been located for the property, 90% of our energy is transferred to them. The Client sometimes starts to wonder why they aren't getting as much love but that's when we explain that all the time I was giving them to transition their property into the rental market we now have to focus on the new relationship that we have - the people living in their home and taking care of their investment. The tenants want to know that their landlord is attentive, willing to process the application & lease quickly and professionally, solve problems in a timely manor and, above all, that they have little to no emotional attachment to the property.
Due to the Freedom Of Information and Privacy Act in Canada once we have entered into a contract with the Client and the Tenant separately they shall not know about one another other than in broad terms. Therefore we are now the go-between to ensure the Client's interests are met and the emotional factor to renting a home to Tenants is removed and the relationship is handled in a professional business-like manor. This is not to say that we're not friendly with the Tenant, however, I've found it's better to keep my friends assigned to my personal life. This causes less discomfort when tough situations arise which I will talk about in a later section.
It's a level of mutual respect that is expected from both parties & this is communicated to the Tenant through a document that they receive just after move which welcomes them to the home as well as regular communication going forward in the form of phone calls, and newsletters. Communication is key to a smooth tenancy. It allows us drop in on the property when we're "in the neighborhood". Most people are happy to see a friendly face; if they aren't then we start looking a little closer at why.
The Client/PM relationship is important to foster to be a trusting one, however it's the Landlord (PM) / Tenant relationship that effects how the investment is cared for day-to-day which is paramount to maximize growth over time. That's the best result we can give a client and how Assurance continues to grow through referrals.
Reporting & Newsletters
Another stage of our communication is through regular newsletters to both the tenants and the clients. Newsletters help the clients by letting them know they are still on the radar and promotes effective management by preparing them with seasonal maintenance requirements to be budgeted for or changes in the local rental market place. They help the tenants by reassuring a continuing level of communication and reminding them of things that they should expect to happen like routine inspections and maintenance or be responsible for as a tenant like pointing down spouts away from the house during the wet spring thaw.
Owners receive monthly statement reports which outline rental income, management fees, maintenance costs and advertising costs as well as a short detail on any new developments concerning the property or tenants. At the end of each calendar year owners receive a yearly report which contains graphs of income vs. expenses and copies of all the receipts associated to the property. This makes tax time a cinch for owners who are required to file rental income with their taxes.
The Relationship "Shift"
Typically there is a lot of communication that happens between the PM and the Client / Property Owner in the early stages of the relationship. There is a great deal of expectations to live up to in these early stages and these rules only exist in the mind of the Client. There's a component of trust to be handed over however, as one client said when asked if she "trusted me", trust is earned. Sometimes we think that because we feel we can be trusted that we are, so I'm glad that this client said that to me because it reminded me my work was not done after the contract was signed, good tenants were located, and our relationship was successful. The PM / Client relationship is on-going and one small slip could destroy a lot of built-up trust.
To begin with we spend a huge amount of time with the client to clarify their expectations, explore their financial position, learn about the property, determine rents based on the market and owner expectations, transition the property to a solid rental, etc. During this process we are slowly peeling back the emotional layer that they have in relation to their property. Because we specialize in high caliber and furnished rentals these properties are usually owner occupied when they arrive in our portfolio and walking away leaving it in a strangers hands to manage is a hard thing to do. This is the ultimate goal, to help the client understand that the property is only an investment from now on and to essentially leave it behind them in mind and energy - at least day-to-day. When they can let go enough to let us do our job then things go smoothly.
We're believers that your time & energy is finite. This is why, after the tenants have been located for the property, 90% of our energy is transferred to them. The Client sometimes starts to wonder why they aren't getting as much love but that's when we explain that all the time I was giving them to transition their property into the rental market we now have to focus on the new relationship that we have - the people living in their home and taking care of their investment. The tenants want to know that their landlord is attentive, willing to process the application & lease quickly and professionally, solve problems in a timely manor and, above all, that they have little to no emotional attachment to the property.
Due to the Freedom Of Information and Privacy Act in Canada once we have entered into a contract with the Client and the Tenant separately they shall not know about one another other than in broad terms. Therefore we are now the go-between to ensure the Client's interests are met and the emotional factor to renting a home to Tenants is removed and the relationship is handled in a professional business-like manor. This is not to say that we're not friendly with the Tenant, however, I've found it's better to keep my friends assigned to my personal life. This causes less discomfort when tough situations arise which I will talk about in a later section.
It's a level of mutual respect that is expected from both parties & this is communicated to the Tenant through a document that they receive just after move which welcomes them to the home as well as regular communication going forward in the form of phone calls, and newsletters. Communication is key to a smooth tenancy. It allows us drop in on the property when we're "in the neighborhood". Most people are happy to see a friendly face; if they aren't then we start looking a little closer at why.
The Client/PM relationship is important to foster to be a trusting one, however it's the Landlord (PM) / Tenant relationship that effects how the investment is cared for day-to-day which is paramount to maximize growth over time. That's the best result we can give a client and how Assurance continues to grow through referrals.
Reporting & Newsletters
Another stage of our communication is through regular newsletters to both the tenants and the clients. Newsletters help the clients by letting them know they are still on the radar and promotes effective management by preparing them with seasonal maintenance requirements to be budgeted for or changes in the local rental market place. They help the tenants by reassuring a continuing level of communication and reminding them of things that they should expect to happen like routine inspections and maintenance or be responsible for as a tenant like pointing down spouts away from the house during the wet spring thaw.
Owners receive monthly statement reports which outline rental income, management fees, maintenance costs and advertising costs as well as a short detail on any new developments concerning the property or tenants. At the end of each calendar year owners receive a yearly report which contains graphs of income vs. expenses and copies of all the receipts associated to the property. This makes tax time a cinch for owners who are required to file rental income with their taxes.
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