This content was originally published in our property management newsletter, Pillow Talk. Sign up here.
Bottom Line Up Front: Periodically calling your property management clients to share the wins and ask about their experience as well as their needs is a simple but effective growth play.
Back in the day, I led acquisitions and business development for a national Build-to-Rent operator who worked mainly with mom-and-pop investors. It was an interesting model. After closing, I would connect our clients with one of our local property management partners, while continuing to manage the relationship with those clients on behalf of our PM partner. It was basically outsourced investor relations.
The reason we operated that way is because most of our clients were out-of-state and foreign investors who needed very close guidance, and also because we knew if we maintained the relationship, we’d be top of mind when they were ready to invest again. And it worked really well! By the time I left that role, the clients we sent to our PM partners had grown to an average of 5 doors.
I attribute that success to one practice: Routine check-ins.
I would call every owner once a quarter, talk with them about their goals, their experience, produce a few reports, and help them execute on things like buy/sell decisions, buying insurance, refinancing, etc. Even though the owners we referred were getting the same property management services as the owners we didn’t, they were happier and much more enthusiastic about the asset class.
The Power of a Phone Call
There are two reasons check-ins are so effective:
- They make the client feel valued
- It humanizes the business.
Here’s an example that demonstrates the point:
Last month, I was talking with a large operator who took over a distressed PMC and began rebuilding the entire company about a year ago. They changed leadership, completely restructured operations, and switched to a new PMS. As you can imagine, service slipped during the transition, there were a lot of problems, and churn skyrocketed.
The most impactful problem was caused by the switch to the new PMS. They lost a lot of accounting data which caused many owners to miss their draw. Owners can forgive a lot, but if they miss a draw, that’s it. The relationship is over.
In an effort to stop the bleeding, they launched an “owner experience project” where they called every single client to update them on the transition. What they heard most on those calls were “thank you” and “nice to meet you.” Many clients had been trying and trying to get a hold of someone at the company for months for answers. Many had given up. But that phone call gave them the answers they needed, and they were very grateful for the effort. It made them feel like a priority and as though they weren’t forgotten. It gave them confidence in the new leadership and it wiped the slate clean.
It also put a face to the company. For most of us, it’s much harder to be angry and disagreeable when you know there’s a friendly person on the other end of the phone who wants to help you. That’s what that phone call communicated. It gave owners permission to be patient with the transition without feeling like they’re being mistreated or taken advantage of.
Today, the business has created a best-in-class operation. Because they’ve stabilized churn, they’ve reversed course and started growing. All because they picked up the phone!
About Blanket
Blanket is transforming the property management industry with its innovative platform that helps property managers grow their portfolios and retain owners. By combining AI-powered insights, automated lead generation, and seamless integration with existing property management software, Blanket provides property managers with the tools they need to succeed. Blanket is backed by leading Venture Capital Funds like Foundation Capital, Symbol, Operator Partners, RE Angels, and industry-leading Angel investors. Together, we’re shaping the future of property management.
