How We Manage Our Properties From Another Country

3 words: Property Management Company

You can buy the best located property with the best tenants in place but if the property is managed badly this can turn into a bad investment which is one of the reasons we make sure that we interview many companies and choose the one that works best WITH US, not just for us.

Our property management company isn’t just working with us after the close. Our property management is involved before we even submit a Letter of Intent or LOI. You might think that asset management begins after closing and property takeover; however, it actually begins before you submit an LOI.

Why? Because before you submit an LOI, you need to develop your business plan tailored for that specific property.

A business plan lays out exactly how you plan to operate the property. It details what interior and exterior renovations will take place, what amenities you will add, what rent premiums you plan to achieve, what operational efficiencies you will target, and much more...

A business plan is THE strategic vision for the property. Your property manager will then develop operational and tactical level plans to carry out your strategic vision. Which will ultimately determine the outcome of the asset.

Therefore, it is critical that you review your business plan with your property manager before submitting an LOI. This ensures that they agree with the plan and the plan fits that specific submarket before you tie a property up and potentially have your capital at risk. If your property manager is a “yes man or woman” and agreeing with everything you say, you need to find another property manager. Your discussions with your property manager need to be bi-directional, not uni-directional.

To summarize, as a general partner, asset management begins prior to submitting an LOI with a thorough business plan review with your property manager. As a limited partner, an excellent question to ask your sponsorship team is when they brought their property management team on board during the acquisition process.

At Adventurous Real Estate Investors, we interviewed 5 property management companies before moving forward with submitting LOI’s. It was really important to us that we found a PM that shared our values and wanted to provide a positive impact on the residents as well.

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Until next time...

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