Rena Freeman shares how to build a property management business. Rena covers getting the correct licensing, managing all of your properties efficiently, how to vet possible renters, ways to price yourself in a way that makes sense for property owners, how to maintain great customer service relationships with your tenants, and advertising your rental openings. All this and so much more, take a listen!
Navigating the Property Management Journey: Insights from Rena Freeman
Welcome to Business Talk, where we unravel the intricacies of various industries. I’m Bekkah, and in today’s podcast episode, we delve into the realm of property management with the knowledgeable Rena Freeman. Discover the ins and outs of becoming a property manager, from Rena’s personal journey to the nitty-gritty details of the profession.
Embracing the Property Management Role:
1. Understanding Rena’s Role
Meet Rena Freeman, the ultimate communication liaison in the property management world. In her words, she breaks down her responsibilities into two primary facets: tenant interactions and communication with property owners. Rena seamlessly handles rent collections, maintenance requests, and financial matters for property owners while ensuring tenants feel heard and validated.
2. The Journey to Property Management
Rena’s transition from an 11-year career as a middle school math teacher to a property manager started with her husband’s real estate endeavors. Initially managing their own properties, Rena’s natural inclination towards helping people and her passion for creating positive living situations led her to explore property management as a full-fledged career.
Setting Up Shop: Navigating Legalities and Licensing:
3. Legalities and Licensing
In the podcast, Rena sheds light on the legal aspects of property management, emphasizing the need for a real estate license in Minnesota. She obtained her license to manage properties for others, highlighting the importance of understanding state-specific regulations. Rena’s affiliation with Johnson Hometown Realty showcases one path, where she operates as an independent contractor under the brokerage’s umbrella.
4. The Journey to Independence
The discussion unfolds as Rena clarifies the misconceptions about property management companies and brokers. She details the process of obtaining a real estate license and the subsequent steps to become an independent property manager. The conversation touches on the possibility of eventually becoming a broker, provided one has the requisite experience and fulfills specific criteria.
Marketing and Finding Clients:
5. Effective Marketing Strategies
With minimal competition in her area, Rena shares her marketing strategies, primarily leveraging platforms like Facebook and Snapchat. She emphasizes the power of advertising on Facebook and harnessing the younger demographic on Snapchat for potential leads. Additionally, Rena utilizes property management software, Buildium, to syndicate rental listings to various websites, including Zillow and Redfin.com.
6. The Art of Tenant Selection
Rena provides valuable insights into her tenant screening process, navigating the legal landscape of Minnesota. From initial property tours to employment and landlord reference checks, Rena ensures a thorough vetting process. The conversation unveils the delicate balance of adhering to legal limitations while maintaining a comprehensive assessment of potential tenants.
Operational Efficiency: Tools and Techniques:
7. Utilizing Property Management Software
Rena’s choice of Buildium as her property management software emerges as a comprehensive solution for her operational needs. The software streamlines rent collection, maintenance requests, accounting, and syndication to various websites. Rena details her prior experience with TurboTenant and the reasons behind her switch to Buildium.
8. Fee Structure and Pricing Strategy
In determining her fee structure, Rena opted for a percentage-based model, taking into account potential inflation over time. She also highlights the importance of setting a minimum fee to ensure compensation aligns with the effort required, especially for lower-priced rentals. The discussion touches on other considerations, such as charging for lease renewals, late fees, and additional services.
Maintaining Properties and Relationships:
9. Relationship Dynamics
Rena emphasizes her role as the “eyes and ears” for property owners, managing vendor relationships and ensuring timely maintenance. With a network of preferred vendors, Rena orchestrates property upkeep without physically performing the maintenance. The conversation also touches on occasional on-site visits and property inspections to maintain quality standards.
10. Lease Renewals and Pricing Strategy
Rena’s approach to lease renewals involves proactive communication, often beginning the process two months in advance. She discusses the flexibility required in determining rent increases, whether through flat rates or comprehensive market analyses based on property owner preferences. The importance of incentivizing lease renewals with offers like painting or maintenance upgrades is highlighted.
Conclusion: A Journey of Service and Adaptability:
Rena Freeman’s journey into property management is marked by a commitment to service and adaptability. From navigating legalities to embracing marketing strategies and fine-tuning fee structures, Rena’s insights provide a valuable roadmap for aspiring property managers. Whether you’re a seasoned professional or considering a career switch, Rena’s story offers a comprehensive guide to thriving in the dynamic world of property management. You can also check BTSG podcast with Rena’s husband, real estate entrepreneur, Brandon Freeman: What to look for when buying a Multifamily Property.
