In any given market, roughly 60 to 65% of the people live in a home they own. That means at least 35 to 40% live in homes they don’t own. Why do the vast majority of brokerages serve barely two thirds of the population? What about the other 35 to 40% of the people that still need a roof over their heads?
Offering real estate services to all of the people that need a roof over their heads is a key point of differentiation for us. It always struck Chris as odd that virtually everyone he met in this business looked down their noses at property management. He discovered the same attitude towards working with banks to sell their REO listings and thought that was odd too. In both cases Chris, created significant streams of income providing services others felt were beneath them.
We will discuss property management services as it pertains to broker owner profitability in Part #3 of this book. The point we want to make here is that there is great synergy in bringing the sale and management of real estate under one roof. This synergy exists because most real estate investors will regularly expand their portfolio if they have reliable professional management in place. The relationships we have with our property management clients are some of the most profitable and prized.
Property owners also look to professional property management providers when they find themselves in an “accidental landlord” situation. Some want to move, but not sell their existing property. Some inherit property that they want to hold on to. These investor / owners are future sellers in need of reliable management and potential listing service.
Many people move in and out of home-ownership throughout their lives as their circumstances change. Young people almost always rent before making their first home purchase. We want to help all of these people find the rental property they need today, and be there tomorrow to help them buy the home they love.
Join us next week for The Client Experience: Touch Points