Mortgage interest rates are high. As this article is being published, rates are at 8.033% for a 30-year fixed-rate mortgage, 7.295% for FHA and 7.123% for VA. We are seeing the natural consequences of this in the real estate world. Buyers are facing a market where the cost of borrowing money is so high that their buying power has been greatly diminished. Sellers are sweating it out with ever-increasing days-on-market, hoping someone will at least come close to their list price.
Obviously, it’s not an ideal time to sell if you don’t absolutely have to sell. Many sellers have come to this realization. They’ve pulled their sales listing and decided to try their hand at being a landlord.
Enter residential property management. The best business no one knows anything about.
These frustrated sellers, facing punishing carrying costs on their often vacant properties and spiraling days-on-market, have begun Googling “property managers in my area.” If you’re an RES Franchisee, this means the phone is about to ring.
RES is ready for the call.
When you offer industry-leading pricing, unmatched services, innovative technology, and undeniable results, these calls are easy. There’s no real “selling” involved. It’s a matter of explaining to this seller-turned-landlord that everything will be okay. And, in fact, everything will be more than ok. Now that the soon-to-be landlord has made this call – probably the most important call in their life – they can begin the journey of becoming more than just a property owner. They are on the road to becoming an investor.
The pennies they would have made by selling will be laughed at in 5 years time, when they see how much true wealth they’ve built by owning a rental property. Their mortgage gets paid, the house is taken care of, and appreciation continues its march. With RES as their guide, there’s no looking back.
Your phone call will cover the obvious ground of “what do you charge?”, but your call – if you are trained as a RES Franchisee – will also take you to places much more meaningful. You will volunteer statistics about rental properties and how great 99.7% of RES turnovers are, due to our proprietary tenant placement methods. You will give examples to prove you are on the client’s side as their fiduciary. You will earn their trust – not by selling them anything, but by simply being exceptionally competent and demonstrating the integrity upon which RES has built its brand.
The new client will say they will make a few other calls and will get back to you, but the truth is, they don’t want to seem like they were sold on this first call (even though they were.)
There’s nothing in the world of property management that meets or exceeds what you’re offering. Can you offer the best marketing (including professional photos) to rent their rental property? No question. Do you have the most sophisticated real-time data showing them how much interest their property is receiving? You sure do. Does your office utilize most thorough and consistent (and proprietary) set of processes and systems ever innovated in the property management space? Yep.
The icing on the cake is that you offer unmatched customer service for ANY industry, let alone property management. Systemized, detailed communication. Pre-emptive communication. Professional and empathetic communication. All built into your systems.
What happens next is you get the door, you get it rented, and your “goodwill bucket,” as we say, with the new client, is overflowing. They can’t say enough great things about RES. Everyone knows about RES, their family, their friends, their golf buddies, their book club. You repeat this with every client. Soon, you’re at 100 doors. Then 200. Then 500. And so on.
So maybe you’re asking yourself at this point – “So what happens when interest rates come back down to reality?” Great question. This is where the beauty lies when it comes to residential property management. There is NEVER a bad time to be in this business. Every economic situation is in your favor – here’s what I mean.
Low interest rates: Investors now step up to the real estate market in greater numbers. The cost of borrowing money is so low they can’t stay away. They begin buying more and more properties, and they need someone to manage them. First-time homebuyers can afford more house, and they soon fancy the idea of building a small portfolio of rentals. The laws in every state are so byzantine that they know they need a trusted professional to oversee their investment. That someone is always going to be Real Estate Solutions.
Speaking of economic variance and how it impacts business: most businesses (franchise or otherwise) are very susceptible to how those economic winds blow. Ice cream shops suffer in the winter, let alone in hard economic times. Any retail establishment is hoping and praying for a strong economy to keep its doors open. Anything in the food industry gets hit on every side: cost of goods, cost of payroll, cost of inventory, and extreme risk from outside competition. These businesses can be highly successful, but the truth is, they are a gamble.
Contrast those other business gambles with the RES model of recurring monthly revenue. RES Denver experiences consistent and significant increases in revenue year after year. We have for over 15 years while honing the model to perfection. I can’t say you will have the exact results we’ve had in your city, that we’ve had at our HQ, and my lawyers want me to tell you your mileage may vary.
Month after month, year after year, with no limit to your revenue potential. No costly inventory to carry. No stress about “the market.” There is no need to buy 2,3, or 10 franchise units to become a multi-millionaire.
There’s a saying at casinos. “The house always wins.” A lot of business models out there are like a gambler on a winning streak. It won’t last. It can’t last.
Given the choice, you would probably want to be the house. At Real Estate Solutions, we don’t just manage the house. WE ARE THE HOUSE.
Now is the best time to buy a RES Property Management Franchise because when we sell out your territory, it’s gone.
Reach out today to secure your future. <— This is a link to your future.