Getting Past the Bad Property Management Company Break Up

Written by Posted On Monday, 16 November 2020 08:10

Getting Past the Bad Property Management Company Break Up

 

Sometimes landlords get extremely frustrated with property management companies.  But to be honest, some property management companies do not act in the best interest of their clients. 

Don't get me wrong, it's not all of them.  In fact, the vast majority of property management companies are trying to do their best.  

There are some key differences between a good property management company experience and a bad property management company experience:

 

  • Good property management companies work to ensure the clients (landlords), and customers (tenants) are satisfied. 
  • Good property management companies care about the landlords and property owners they represent.
  • Good property management companies fully understand the fiduciary duty they have to the landlords and property investors.
  • Good property management companies understand that a productive relationship with the tenant and landlords are beneficial for all parties. 
  • The good property management companies understand that it is a win-win for everyone, if all parties operated in a synergistic manner. 

 

These are just a few examples of the things the best property management companies do, in order to maintain  a healthy relationship with landlords and property investors. 

What must be understood, however, is that a deviation from what is expected of a good property management company can lead to irreversible scars for the landlord, and lead to a bad property management break up. 

The aftermath of this break up is landlord mistrust of the property management profession, and an apprehension about hiring a property management company in the future. 

And subsequent property management companies will bare the burden of attempting to help the landlord rebound. 

Let me explain the issue.

 

Scars of a Bad Property Mangement Relationship

 

Simply put, a bad property managment experience causes the landlord to experince the cascading effects of emotional distress, and other property management companies are left with the tasks of trying to correct these issues. 

I’m not referring to bad tenants from improper screenings. Or tenants that must be evicted. What we are referring to is when the business relationship with the previous property management company has deteriorated.

The hope that landlords will get over the experience because the new property management company offers a better product is not only naive, it also fails to address the landlord's pain points. 

This might happen, but it’s not always that simple.

What the previous property management company has done is sour the landlord. Turned the landlord off of rental management companies, and at the end of the day the property management company has made the landlord skeptical about hiring another company in the future.

This causes any relationship with a subsequent property management company to start off on the wrong foot. There WILL be a sense of hostility in the landlord towards your company. They don’t want to get burned again. The landlord is in a heightened state of awareness.

Trust is lost, and the landlord is looking for everything possible not to trust you. It doesn’t matter if your property management company is the best. You are starting off in a bad place. .

We call this, the Rebound Landlord Property Management Company Relationship, and you are on your first date.

So how do you get off on the right foot?

 

Build Trust in Your Property Management Company

 

You must understand that the landlord is coming to you in pain. 

It's not so much about you and the service you provide, as it is more about how you can help the landlord with their pain. 

This is an important concept to understand, as it lays the foundation for everything else that you do, and how you will guid the conversation along, and build trust in your property management company. 

Trust begins before you even speak with the landlord. It starts with your website and social media presence. This is the first interaction you have with your customer.

What does your website say about your company? Does it reflect core values which are consistent with the landlord’s? Does your website answer the question as to why the landlord should choose you?

Your goal is to have the potential landlord “swipe right.” In this case that means filling out your contact form, or giving you a call.

The more you are able to build the initial trust, the more the landlord is willing to reach out to you for your services. Your professional real estate brand should be based on this trust.

 

Demonstrate the Value of Your Property Management Services

 

You must understand value added proposition to understand how to best interact with the landlord. 

Again, value doesn't mean simply telling the landlord what you can do for them. 

Value proposition is more than that.  

Going back to the pain points, the value proposition begins with an assessment of the pain points of the landlord, and demostrating value by way of solutions. 

 

Value Starts Before the Landlord Makes Contact With Your Property Management Company

 

The first step is to demonstrate value, is done before the landlord reaches out to your company. Similar to building trust, it starts with your internet presence.

Value doesn’t mean simply stating your cost for property management, or listing out your services. Every property management company should be doing that (ironically, a lot aren’t).

Value proposition is understanding what exactly the landlord feels is important for them to know, and making targeted steps to deliver it to the landlord.

In other words, what are you doing to pre-emptively identifying the landlord’s pain points, and addressing them.

Blogs and social media posts are the best way to get this information in front of the landlord.

This doesn’t mean solely listing properties for sale or rent. This isn’t value added information for a landlord.

Yes, these postings help your own SEO to some extent, but they don’t address a landlord’s pain points.

Instead, some of the things your blogs and social media posts should be geared towards include:

 

1. Why choose your property management company.

2. Why the landlord needs your services.

3. How caring and knowledgeable the property managers are at your property management company.

 

All these are extremely broad areas, which can be distilled down even further, they will provide some focus to the value you add to your internet presence. They are merely a template that drives your content.

Think about answering the questions landlords may have:

 

1. Can a Property Management Company Help Me Manage My Property? This answers why the landlord needs your services.

2. How Do I Evict a Tenant? This fulfills the knowledge component.

3. What Makes a Good Property Management Company? This focuses on why choose your company.

 

Again, this is not all inclusive. The major takeaway is that you have to get writing and focused on these questions and pain points, and provide those answers to your landlords BEFORE they make contact with you.

 

Understand the Value of Your Property Mangement Company, But Don't Be a Salesperson

 

One of the biggest mistakes property management companies make is trying to be salespersons.

Yes we understand you have a real estate license, and it gives you the power to assist others in buying and selling real estate.

But now is not the time to put yourself in the position of salesperson. 

You are now more like a counselor, and you are looking to solve the problem that the landlord has.  You are using your skills to alleviate the landlord's pain. 

The landlord could care less about you, but more so cares about how you can help the landlord solve their problem. 

 

Focus on the Landlord, and How Your Property Management Company Can Help Fix the Problem

 

You don’t want to peacock.

Peacocking is overinflating yourself to the point where you turn someone off. Make them want to run away.

It involves focusing on you, rather than the client.

Remember, the landlord is on guard at this point. Again, they are looking for a reason to say no to you. Yes they contacted you, and yes they may want your services, but they are still scorned from their previous property management experience.

They are coming from a position that you are lying, cheating, and stealing to seal the deal.

And you can’t really blame them.

You can still communicate with them about who you are, and what you are about, and not be overbearing in the process.

This means you aren’t pushy about it. The communication process is gradual during your conversation with the property owner.

Focus on the landlord. Find out about them and their property. Be an active listener.

You should have your outline in your head about key points you want to make, but active listening involves listening to the property owner’s pain points, and exploring information about them and their property.

After you have given the landlord the opportunity to fully discuss everything, now is the time for you to talk with the landlord (notice the keyword “with” not to).

 

Focus on the Property Management Issues that are Relevant to the Landlord

 

Focus your dialogue on the issues, and concerns of the landlord. The landlord doesn’t care so much how much property management experience you have, but cares about how that experience will help stop their pain.

The landlord doesn’t care about the latest technology your property management company uses. The landlord cares more about how it can effectively address their concerns.

Again, you are listening and communicating in a way that demonstrates to the landlord that you are focused on their property. Your company is the conduit to achieve those results.

If you fully understand this point, you won’t oversell your property management company.

You won’t come across as a snake oil salesman, or a rebound relationship out to quickly close the deal with the landlord, and change your character once the contract is signed.

Don’t be afraid to let the landlord walk away.

If the landlord is ready to make a decision to hire your property management company, they will.

But remember, give them more time if they need it.

You have their contact information and can contact them later if need be. This contact, again, shouldn’t be to push them towards retaining your services. Your contact should be a follow up with any questions the landlord may have.

You want to keep your property management company at the front of their minds, without being pushy.

Nothing screams run away more than the old “Are you ready to sign up with us,” or “If you sign up today.”

Every consumer knows everything you offer will be available later.

“Sign up now,” or “If you sign up today,” screams a sales pitch. You don’t want to be the used car salesman.

 

Don’t Disparage the Other Property Management Company

 

It can be extremely tempting to want to talk badly about the other property management company. 

The landlord is expressing their frustrations, they are angry, they want the other company to go out of business. 

The landlord is looking for someone else to take on the witchhunt.  Someone who has an equal stake in the failure of the other property management company.

What better person for this than you.  Your sitting right there  listening to the landlord.  You understand his pain.

But. . . . . . 

Don't do this.  Don't fall for the trap. 

Your job is not to disparage the other property management company, but instead it is to find a solution to the landlord's problems.

Listen with intent and focus.  Identify the pain points, and come up with a solution for the landlords problems. 

 

And remember. . . . . 

 

Don't Shame or Play the Blame Game

 

Finger pointing and the blame game are not the best strategies to sell your property management company.

Even if you know the other property management company is bad.

It is never a good time to talk badly about another company. Especially during the initial meeting.

Demonstrate how bad the other company is, by showing how high quality your own property management company is.

If you discuss the other company, you bring the focus back to them, as opposed to the landlord. The focus should be on the landlord and how your company will help them through the mess that has been created.

Going back to the rebound relationship, would you talk about the ex-partner all night? Can you imagine how undelightful of an experience that would be for both parties?

The same holds true in this situation.

There are two types of responses to a landlord when it comes to concerns raised about the former property management company:

 

“I can’t believe XYZ Property Management didn’t conduct inspections on your home. They are responsible for the damage.”

 

OR

 

“I heard you say inspections are one of your biggest concerns. How we manage the inspection process to protect your asset is. . . . . “

 

Which one adds fuel to the fire? Which one focuses on a solution and builds trust with the potential client?

 

Apply it to your Property Management Company

 

These are just a few things you can do when trying to establish a relationship with the landlord who has been scorned.

In Fayetteville, North Carolina, property management companies often deal with the after effects of a client’s past property management experiences.

It doesn’t have to be difficult to navigate.

Just remember to approach the client in a caring manner, and focus on the healing process for them.

 

The Team at Linchpin Property Management

 

By the way. Share if you think it’s relevant. Sharing helps out us small property management companies grow big and strong. Kind of like sharing your last bite of your meal with your kids.

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P.S. We love to network. Send us a message, give us a call ,or stop on by if you are in the Fayetteville area.

The coffee is on us.

Linchpin Property Management

2529 Raeford Rd. Unit C-7

Fayetteville, NC 28305

(910) 236–9844

https://linchpinpropertymanagement.com

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Larris Hutton

Retired military lawyer, licensed attorney, and the CEO of Linchpin Property Management and The Landlord Legal Advisor

https://linchpinpropertymanagement.com/

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