What do property managers and lemmings have in common ?
I wake up every morning lately and I feel like I am on some wilderness show. I am sure most are asking what is Ray talking about now?
Well there’s an animal that we property management people have started copying over the past few years. We are acting more like Lemmings during the migration period of their life than ever before. Lemmings move in herds and will follow blindly the animal in front of them over a cliff or into a rushing river to almost certain death .
With the status of the current market I feel we are all following each other with concessions over the cliff. If everyone is giving a free month ,waving the application fee or offering $99 moves you in whats really the special ? If everyone is giving away 1/12th of their annual rent what makes you special well SPECIAL ?
I think we need to look at our industry and ask why we are bleeding each other dry with one special followed by another. If we get our rates right , provide a fair product and good service then we deserve what we get paid. We have trained all of our prospects to ask the magic first question”Whats your Special”. Why are we doing this are we trying to drive ourselves mad and bankrupt at the same time?
I really think we all need to sit down and evaluate our position in the rental market and call your product what it really is and charge the right price for it. With these concessions all we are doing is fooling ourselves into believing we are 90% but if you take the 6% in concessions and the 5% in delinquency your really 79%. That's the truth and that's what income you have to pay your bills and mortgage with. It’s time to take a long hard look at what is really going on and make some tough decisions.
I think now is the time to sit down with our staffs and owners and decide if we can survive doing business this way. We are allowing other people to influence our future and we need to take control today.
MGTPRO - Ray Allen
I wake up every morning lately and I feel like I am on some wilderness show. I am sure most are asking what is Ray talking about now?
Well there’s an animal that we property management people have started copying over the past few years. We are acting more like Lemmings during the migration period of their life than ever before. Lemmings move in herds and will follow blindly the animal in front of them over a cliff or into a rushing river to almost certain death .
With the status of the current market I feel we are all following each other with concessions over the cliff. If everyone is giving a free month ,waving the application fee or offering $99 moves you in whats really the special ? If everyone is giving away 1/12th of their annual rent what makes you special well SPECIAL ?
I think we need to look at our industry and ask why we are bleeding each other dry with one special followed by another. If we get our rates right , provide a fair product and good service then we deserve what we get paid. We have trained all of our prospects to ask the magic first question”Whats your Special”. Why are we doing this are we trying to drive ourselves mad and bankrupt at the same time?
I really think we all need to sit down and evaluate our position in the rental market and call your product what it really is and charge the right price for it. With these concessions all we are doing is fooling ourselves into believing we are 90% but if you take the 6% in concessions and the 5% in delinquency your really 79%. That's the truth and that's what income you have to pay your bills and mortgage with. It’s time to take a long hard look at what is really going on and make some tough decisions.
I think now is the time to sit down with our staffs and owners and decide if we can survive doing business this way. We are allowing other people to influence our future and we need to take control today.
MGTPRO - Ray Allen
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