“To the world you may be one person; but to one person you may be the world.” – Dr. Seuss
While reading Who Not How by Dan Sullivan, this quote kept coming to mind for me. I have always appreciated how one person can make all the difference in the world to one or a few people. In Dan’s book he says “What we accomplish is not as important as who we accomplish it with.” Go out and find the who, who will help you achieve your dreams!
It doesn’t matter the industry you’re in, the path you’re on, or the successes you seek, your greatest accomplishment is what you will do or create for others.
Go figure, this has something to do with real estate, but more than anything, I hope this is a lesson to go out and find that person who is going to enable you to unlock the greatest version of yourself. The most successful people in the world contribute their success and achievement to both their hard work and commitment, yes, but in many cases a higher power, a loved one who supported them, or a teammate who unlocked their potential or capacity to do what they find to be their superpower.
Just because you hate a particular role doesn’t mean you can’t reap the rewards from that venture. For many investors, this is the day-to-day operations of managing real estate, commonly referred to as the 3 T’s – Trash, Toilets, and Tenants. Yes, it’s so prevalent that they have an acronym for it.
If you’re one of those people who is thinking they might be interested in investing in real estate but like many other investors out there you have no interest in dealing with the 3T’s, let me tell you the WHO that’s perfect just for YOU!
Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties. They usually work for the owners of investment properties such as apartment and condominium complexes, private home communities, shopping centers, and industrial parks. (Source: Investopedia)
Beyond this is a more niche and nuanced approach to management specifically for investors owning and managing short and medium-term rentals. These individuals are known in the industry as co-hosts. They usually work for the owners of properties used for stays of one to thirty days, but not more than a year, such as vacation rentals, boutique hotels, temporarily living for displaced families, and housing for traveling professionals.
The 3 biggest differences between the two are in the services that they offer:
- Guest vs Resident Experience – A property manager is not acting as a host, they’re expected to provide a safe and enjoyable living experience but in most cases, they’re dealing with maintenance issues. A co-host is going to be delivering a heightened guest experience and is often engaging with their guest throughout their stay. A property manager will never receive a text from a resident asking for a restaurant recommendation, while a co-host will likely have multiple recommendations in mind before being asked.
- Maintenance & Upkeep – As a property manager, a speedy response to maintenance issues is equally as important to a resident as it is for a co-host with their guests. However, in the case of a property manager, your biggest focus is ensuring the basic needs of your resident are being satisfied, safety, comfort, and shelter. As a cohost, your responsibilities are greatly enhanced. Think about the last time you went to a dinner party or event and thought “Wow, what a great host!” Often the entire experience was thoughtful from the amenities, the cleanliness of the place, and the experience provided throughout.
- Occupancy & Vacancy – In most cases, a property manager is required to have their license and in the cases that they do not, they will coordinate with a leasing manager to advertise their listings. It’s on a relatively cyclical rotation of listing and showing a unit to get it filled, then sending renewal reminders just short of the time the yearly lease is expiring before listing and showing again. On the other hand, a cohost is going to be regularly working to keep their “bench” full. Whether for short-term rentals where guests are coming and going regularly or mid-term rentals where the guest is coming on a contractual basis, promotions, advertising and networking are essential to keep vacancy low and occupancy high.
I believe everyone should invest in real estate. Whether you do it actively or passively, or which particular strategy you choose to leverage will be completely tied to your personal and professional goals. Just know that you don’t have to be the one clearing the lines, evicting bad tenants, or even receiving those rent checks (the best part of the job!!!). There is someone out there who will happily do it for you, I would love to be the one of the who’s that delivers value to you!