Property Management Acquisitions, Growth and Marketing: The Renters Warehouse Strategy

On our first episode of the year, The Property Management Show wants to start by identifying what’s happening in the property management industry. This industry has accelerated at an extreme rate. We’ve talked about it multiple times, and new things continue to happen. For example, not only are private equity backers getting into the property management business, we’re also seeing Tier One Venture Capitalists in Silicon Valley putting money into property management. That has never happened before, and we’re expecting this trend to open some floodgates. If you’re a property manager or you own a management company, you’re in the right spot at the right time. This means that investing in and operationalizing your sales and marketing procedures is no longer a privilege. It’s a requirement. You have to do it to survive, grow, and thrive. We’re all about innovation on The Property Management Show, and our guest today is in charge of the largest single-family focused property management company in the U.S. He’s Kevin Ortner, the CEO of Renters Warehouse, and we want to know how he handles his tremendous responsibilities and what he’s planning for 2019. You Have to Love the Grind Don’t forget the basics. That’s Kevin’s approach to running a large company that just keeps getting bigger. Take great care of clients and employees. That sounds cliché and you always hear about it, but it’s true. You cannot just be about the next client, the next acquisition, the next deal. What are you doing to fundamentally shore up your foundation? That’s what Renters Warehouse wants to focus on – being the best they can be for their clients and employees. This takes time and resources as you’re growing. But, good leaders will execute a great strategy and try to stay in front of that growth. You need to make sure you are performing those basic things well, and then you also need a great vision of where you’re going and how you’ll stay in the lead. That’s what it’s about. Looking down the road, forming the right strategy, and executing the pieces of the puzzle. You have to love the grind. If you’re running a property management company, you’re part of changing an industry. You’re helping to make it more sophisticated and you’re delivering great value to your customers. You should be excited about that. Renters Warehouse Acquires Own America Renters Warehouse recently acquired Own America. This is a major shift in the industry and a vision move. It’s something you need to pay attention to. Own America allows owners of single-family rental properties to sell those properties with tenants in place through an online marketplace to new investors. This reduces a lot of friction and costs for both buyers and sellers, and the tenants are not disrupted. When you sell your investment property with a traditional real estate agent who has no experience with rental properties, that agent usually wants you to move the tenants out of the home before it’s listed. They’re thinking of owner-occupant buyers, not investors. Own America changed that – and allows buyers to buy with tenants in place. Kevin acquired the company because it fits well with what they do, and they have set up the Renters Warehouse Investors Marketplace. Clients can buy and sell single-family homes online with tenants in place. The tenants don’t move out, and both buyers and sellers are paying less commissions than with a traditional broker. And, Renters Warehouse continues to manage those homes. The benefits to this acquisition are numerous. Buyers can shop in markets they are not currently in. Buyers can use the online search function to ex...