Should you self-manage your multifamily portfolio? Or is it better to outsource to a third-party? If you do choose to outsource, what should you look for in a property management team?
Tony LeBlanc is the author of The Doorpreneur: Property Management Beyond the Rent Roll, a book that redefines the potential of property management businesses. Tony grew up inside the industry, watching his mother manage the building where he was raised. Ten years ago, he started his own property management company, and today, it is one of the largest on Canada’s East Coast and supports seven subsidiary businesses from landscaping to commercial cleaning to a real estate brokerage.
On this episode of Apartment Building Investing, Tony joins me to explain how he developed The Doorpreneur Way and what it meant for his property management company in terms of productivity and profit. He offers insight around how to hire a third-party property manager, what the ideal investor-property manager relationship looks like, and why it can be difficult to manage to a pro forma. Listen in for Tony’s innovative ideas for driving additional revenue and learn when it makes sense to self-manage your portfolio and when to outsource the job.
Key Takeaways
Tony’s extensive experience in property management
- Mom was resident manager, VP of management company
- Started own company 10 years ago (3 locations, 2K doors)
What inspired Tony to write The Doorpreneur Way
- Building out other companies created new level of respect
- Help others make business more productive + profitable
Tony’s advice on hiring a third-party property manager
- Investors need hands-on experience to develop empathy
- Learn enough to ‘manage the managers’
The ideal relationship between property managers and investors
- Get to know each other up front
- Engage minimum of once a month to review financials
Tony’s approach to working with sophisticated investors
- Weekly call to discuss vacancies, major maintenance issues
- Monthly financial call to review budget vs. actuals
What makes it difficult for property managers to stay on budget
- Lack systems + processes for managing to pro forma
- Pressure to please tenants, don’t look at expenses
- Failure to include staff in financial discussions
Tony’s Doorpreneur Model
- Determine where subbing out most work
- Market research in new area
- Cut teeth on own properties
- Open door to general public
Tony’s best practices for property managers
- Proactive communication with investors
- Proper accounting + due diligence
- Educate owners on new trends, tech
Innovative ways to increase revenue and reduce expenses
- Transition from coin machine to card-based laundry
- Offer internet service for units
- Smart apartment technology
Tony’s insight around personal development practices
- Develop self-awareness with meditation, journaling
- Self-reflection allows us to better serve others
Connect with Tony LeBlanc
Resources
The Doorpreneur: Property Management Beyond the Rent Roll by Tony LeBlanc
The Leader Who Had No Title by Robin Sharma
Apartment Investor Network Facebook Group
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