Presented byBy Melissa Prandi, RMP®, MPM®

The Complex World of Rentals & Property Management

Melissa Prandi = Property Management

• 29 years in the industry• Former NARPM National President

• Growth from 100 to 3,000 units

• Traveled 175,000 miles to visit 300 management offices in one year

• Studied the formulas of a great property management company

Only 2% of Property Management is Collecting the Rents…..

The Reality of the Other 98%

• Ever changing policy & procedure manual• Must have excellent tenants screening processes• Keeping up with ever changing local, state and federal laws• Utilize the latest Technology – which today can be your “friend”• Employee versus independent contractors• Hands on approach – no two problems are like• Owner’s want to receive as much as possible monthly• Owner’s don’t want to spend the money or can’t to keep the rental

property properly maintained – Investors too have financial challenges personally & professionally

• Need a good Lawyer on your team you can call anytime• Ongoing training is needed to keep up in the world of “Property

Management”

How to Get Into the Business?

c Property Manage

National Association of Property Managers

Franchising Opportunities Partnering Up with Pros

Consultant and Education Options

Understanding the Pros and ConsThere are pros and cons to managing rental property

PROS CONS

It’s a predictable stable recurring revenue model

The margins are small

You’ll never be bored The hours are not 9 - 5 p.m.

Maintain the relationship with your clients for a future sale opportunities

The potential to be sued

Renting properties is usually profitable There are many local, state and Federal laws to follow – forever changing

It can be fun and challenging You must rely on and trust your contractors and vendors

It’s a people business—you’ll always meet new people

Constantly dealing with complaints from tenants and owners

Overcoming the Negatives• Invest in systems and processes• Network with other professionals (NARPM®)• Keep proper records and files (cloud computing)• It’s a hands on business• Properly screen contractors, vendors and

employees• Carry Plenty of Insurance• Join a Local Organization• Focus on employees not independent contractors

Where to Go From Here?

Developing Your Game Plan

• Consider your options– Joining NARPM vs. Franchising vs. Partnering– Model the business

• Establish a benchmark for your revenues• Determine the cost of delivering the service (employees,

insurance, systems, etc.)• Understanding how to grow from 25 100 1000 units

– Research the laws– Consider acquiring a book of business– How will you differentiate yourself in a crowded space?

Final Thoughts

Surround yourself with an expert in the fieldThank you for your time

Melissa Prandi, MPM® RMP®Melissa@prandiprop.com

415 482-9988 ext. 203