Tony LeBlanc - The Doorpreneur: Property Management Beyond the Rent Roll

Consider this: You can learn a lot about people from what they drop in the hallways of their apartment buildings. There are places where people toss crumpled food wrappers and beer cans on the floor, mistaking the building for a garbage can. Then there are buildings where hallways are pristine and seasonal wreaths and welcome signs hang on the doors.

These markers tell us that residential property management is special because we arent just dealing with buildings. Were handling something far more sensitive: people and their homes, from single-family units and duplexes to small buildings and skyscrapers with hundreds of apartments.

A lot of property managers forget this truth amid the monthly hustle-and-bustle of business. The task of checking off our to-do lists is in full swing and we lose sight of our true priorities. But we shouldnt.

In 2013, my company managed about 1,240 units with more than 2,000 tenants. I remember thinking even then that the spectrum of people whom we touch on a daily basis is so incredible. We share some of our tenants best and worst experienceslife, death, marriage, divorce, and everything in between.

Some of our tenants are students preparing for their lifes work. Its a time of great memories, and we get to be part of their experience. How terrific is that?

We also have new couples moving in together for the first time. We all know how interesting this development can be as we get to know a person and reach new levels of trust, love, and appreciation. These relationships are built within the four walls of the homes we provide, and that is tremendous, too.

These are the places where families are created and childhood memories made. How can we not see this business as anything but special? We need to be proud of what we do. It matters.

Most property managers dont share my perspective on the industry. It may surprise you, too, to view property management as a means to creating wealth, finding your purpose, and establishing a business empire. But thats how I see it. Its a tough job but also one of the most rewarding!

You have to have a pretty thick skin in order to be able to deal with some of the situations that happen on a daily basis. You need to remember an incredible amount of details and be ready to take immediate action at a moments notice. Its a process-heavy industry with many things that have to be done each and every month. The job can be a grinding, merciless routine.

The reality is that when your phone rings, its rarely good news or someone on the other line waiting to praise you or your company. You have to keep a lot of people happy, namely your tenants and property owners. Then there are your team members, because you couldnt accomplish anything without them. The never-ending stress wears most people down. In fact, the average amount of time someone lasts in property management is 18 months. Because of those complexities and many others, the property management industry hasnt been given enough credit for the fantastic opportunities it presents to someone like you and me.

For the most part, all you hear are the negative sides of our industry, and I think I know why: Bad news and photos of trashed apartments get peoples attention. But if all you see or hear are stories about slumlords and disreputable tenants, why would you have any other opinion about the industry?

The other issue that gives property management a bad name is its financial structure. Property managers consider themselves on the low end of most real estate transactions compared to what realtors make in commissions. The sale of a property contrasted with monthly and yearly management fees is not going to look good, and can lead you down a path of resentment.

That said, the idea of investing in real estate is exciting, and its safe to say that most real estate investors love the acquisition process. Its fun and very sexy. Most property managers also are investors and very familiar with the dopamine rush of buying real estate.

The onboarding of a new property may feel like a punch list that needs to be checked off, but once weve been awarded the management contract, theres a short period of time when its exciting to see the new income coming in and to feel the prestige of having a certain property in our portfolio.

From the property managers perspective, the overall sentiment also can be that we are working to build someone elses net worth and not our own. Everything we charge to a property is an expense to the property owner. By making money in the management firm, we essentially affect the potential returns for our investors. We sometimes feel guilty about our pricing models and additional fees that we have to charge, but we sometimes forget we also are running a business and to run a business, one must be profitable.

Its up to us to embrace property management as a great profession. You dont hear doctors complain about their work the way we do, and if they did, who would want to work with them?

In other words, property management has a bad rap because we allow it to have a bad rap. We are the problem, and we are the solution. If we start to collectively see and treat the business as a great business, others will see it as a great business. Its that simple.

So why on earth would I write a book suggesting you should get into the business?

First, I believe this industrys time has come. The changing demographics across North America, coupled with cultural and lifestyle trends, make that clear. Second, property management itself is on the brink of change, too, and with that change will come newfound respect for the industry as a vital creator of wealth and happiness.

Finally, I am convinced from my own personal experience that property management is as an affordable way to get started in business and a strong foundation for a diversified and thriving portfolio. In other words, its the successful route to becoming a Doorpreneur.