Brian and John are joined by Peter Lohmann to discuss property management. Peter is an engineer by trade who eventually started his own business, RL Property Management, and continues his role as the CEO. Brian and John are especially fond of Peter’s ability to be straightforward in what he says. Peter gives insight to the biggest challenges with property management, including the balancing of tenants and property owners. We hear some compliments from Peter about Brian and John’s acquisition system and a conversation about the data that all three guys track when it comes to property management.
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Covered Topics:
- Peter’s transition into property management and his current role.
- Useful data to track when managing property.
- What to expect in the real estate market’s near future.
Show Notes:
- 01:01 – Recent happenings.
- What the guys have planned for the weekend.
- 03:02 – Introducing Peter Lohmann.
- 03:33 – The early days of Peter’s real estate career.
- A real estate investment meetup that Peter was running which John attended.
- Forming a property management team within a brokerage.
- How Brian and John met Peter at separate times.
- John’s memories of a meeting he and Brian later had with Peter.
- Issues with measuring costs of renovating a property as a percentage.
- 08:20 – Peter’s ability to tell it like it is.
- What he tells buyers when they show him a property they might buy.
- Challenges of buying properties with inherited tenants.
- 11:59 – How Peter transitioned into property management.
- Searching for a property manager but not finding any that Peter liked.
- The aspects of property management that Peter loves.
- 15:30 – Peter’s current role with RL Property Management.
- Responsible for the strategic vision.
- Spending much of his day doing sales and marketing.
- The employees that Peter has hired.
- 18:13 – Peter not renewing some of the contracts he used to have.
- The relationship deteriorating with a company that had about one hundred units managed by RL.
- 21:07 – The unique pricing structure of RL Property Management.
- Not charging a leasing fee and charging a flat rate.
- Keeping good tenants in the building as long as possible.
- The biggest challenge to Peter in property management.
- A lesson that Brian and John learned when they didn’t use the same strategy as Peter’s company when buying a building with inherited tenants.
- 27:35 – Peter’s current involvement in buying investment properties.
- Wanting to diversify the types of homes that he invests in.
- Compliments given to Brian and John’s acquisition process.
- Managing an Airbnb.
- 34:07 – Property management goals.
- A recent contract signed with a marketing firm and hiring a sales consultant.
- 35:10 – Some of the data points that Peter tracks.
- The process of rolling out a new system at RL Property Management.
- Empowering employees to do their job.
- The technologies that Brian and John use and their desire to consolidate their data.
- The risk versus reward in implementing new software.
- 43:03 – The market outlook according to Peter.
- The Columbus market being at the top of its price curve.
- Long-time landlords currently selling their properties.
- The decrease in rental rates during the last recession.
- 49:20 – How to reach out to Peter.
- For more information, check out our website and reach out to us at TakeActionRealEstate.com or follow us on Facebook
Topic Takeaways
- It’s okay to not work with everyone. Find clients that suit your business.
- When acquiring a building with inherited tenants, don’t make big changes immediately.
- Just because you’ve found what the best deal is right now, it’s not necessarily a good deal.
Tweetable Quotes
- “Nobody likes the manager. That’s the saying in the business… At a certain point you have to accept that you’re going to be the bad guy sometimes.”
- “Property management is appealing because there’s not a whole lot of start-up capital at risk… You don’t need to invest in a whole bunch of expensive infrastructure.”
- “My feeling is as long as we hire the right people, empower them, treat them well, and provide them with the tools do their job, I kind of leave it to them to be responsible.”
- “Don’t be too eager. If you’ve got money and you want to be in real estate, that’s awesome, but there’s nothing saying that you need to get into a deal right now.”
