In Springfield, Ohio, where we started ROOST Real Estate Co, the average rent for the units we manage for our clients is right around $550 per month. Our average sale hovers between $100,000 and $120,000. We are not a high-end market. The revenue we generate managing a little over 700 units for 150 or so owners comes to about 25% of our total revenue.
The Perfect Mix For Profitability and Cash Flow
That means of course that 75% of our gross revenue comes from sales. Other offices may do more and others less. For the Springfield office, it is the perfect mix. That is why I refer to adding property management to a brokerage’s service offerings as the 25% Solution.
Property Management Has Always Been In Our DNA
When I started this company, I decided I wanted to be in the ‘shelter’ business. My thought was to identify our market as all of the people who need a roof over their heads, not just the 55% to 60% of who happen to own the roof over their head. This leads us to working with many investors and the tenants who rent from them.
Why It Works
There is great synergy in bringing the sale and management of real estate under one roof. The reason this synergy exists is because many 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 we have.
Property owners also look to professional property management providers when they find themselves in an “accidental landlord” situation. Sometimes people want to move, but they don’t want to sell their existing property. Sometimes people inherit property that they want to hold on to. These investors / property owners often become sellers in the future and they will turn to us to list their property. In the meantime, we are happy to manage their property for them.
Property Management the REBL Way™
Property Management the REBL Way is a training program and set of procedures designed to help a franchisee start, and grow, a property management department. We have almost 15 years of experience in this area and have developed methods and processes that make the business manageable and rewarding.
Care To Learn More About Our Company?
- Try the new Broker Profitability Partnership Mindset Scorecard. Score yourself on the eight mindsets that are either growing or slowing your business right now. www.ProfitabilityScorecard.com
- Schedule a FREE Zoom call to talk about your bigger MORE PROFITABLE future at www.PartnerWithROOST.com.
- Click Here for a FREE download of my book A Realtor’s Guide to Mad Market Making Skills – The Eight Mindsets That Make The Difference Between Simply Surviving And Creating A Real Estate Business That Works For You