I recently had a call from a potential client. He was looking for a property management company for some property he was about to acquire. After we discussed my services and how I could help him, we discussed quality of property and maintenance. He came up with a phrase that I just thought was great. The phrase was “frugal vs. duct tape”.
As a property manager, I am limited as to what I can do to maintain a property based on the owner’s wishes. Not that we can’t fix a problem that a tenant has when one arises, because we can. I’m more concerned about preparing a property when a tenant moves out and making the property ready for the next tenant. If a tenant does damage, then we repair the damage and take the money out of the security deposit. But there is normal wear and tear, and the tenant is not responsible for that. Most of my clients understand that in order to get top dollar and to get the property re-rented quickly, that a duct tape philosophy is more costly in the long run.
The duct tape philosophy is “just fix what’s broken, clean it, and start showing it”. It doesn’t matter if walls need to be painted, the carpet is worn, or the light fixtures are 20 years old.
The frugal philosophy is “watch the dollars, but let’s make this place something someone would be proud to call home”. You can buy mini blinds and light fixtures cheap and the return is great. How are those floor registers? How about the light switch covers or the electrical outlet covers? What about the drip pans on the stove? It doesn’t take a whole lot to make a place tip top. You don’t need to go overboard, but a property that presents well will bring you top dollar and won’t stay on the market long.
You have to be willing to invest in your property. You already have a lot invested; a few more dollars will only do you good.
Yes, I do have some clients that have the duct tape philosophy, but I can be pretty persuasive and have been able to change that. My argument helps when their property stays vacant. That potential client that I was talking to? He has the frugal philosophy. I hope to sign a contract to manage his properties soon.
Here’s to keeping cash flow positive,
Dave
