Ep 123: Driving the Evolution of How Properties Are Managed with Steven Rea
Managing a property is something that can take up a lot of time, but it has to be done properly if you want to receive a good return on your investment and attract the right tenants. Today’s guest is Steven Rea, property management expert and Director of ResProp, where he is currently responsible for growing their management portfolio in Central Texas. He has over 15 years of experience in the industry, having spent time leading teams in operations, training, technology, and business development. His passion for building great management is nearly unmatched, surpassed only by his passion for mentoring the next generation of industry leaders and helping drive the evolution of how properties are managed. In this episode, you’ll hear from Steven as he shares a bit about the differences between residential and commercial property management and explains how he helped his previous company scale their portfolio from 600 to 15,000 units. He also talks about what to look for when hiring a manager, how finding the right management will free you up for more deals, and the questions to ask to make sure your values align, as well as the importance of references, what he believes needs to change in the industry, and why the industry is ripe for disruption. Make sure to tune in today!
Key Points From This Episode:
Hear about Steven’s real estate background, and how he got into property management.
Steven talks about residential versus commercial property management.
How Steven helped Roscoe Properties scale from 600 to 15,000 units from 2008 to 2016.
Some of the most important things to look out for in a person or a company when you’re managing a property.
How finding good management will free owner-operators up to go out and buy more deals.
Understanding what you want to accomplish and the different ways to get help.
What questions to ask a management company: from rent collection to delinquency.
Management is a partnership; make sure your interests align and you can drive the success of the property together.
Steven explains why references are so valuable: hear the experiences of other clients.
Find out who Steven likes to work with and why, from family offices to institutional groups.
What management can do to prevent owners from micromanaging: communicate!
The importance of providing context and keeping things civil as managers.
Things Steven sees in the marketplace that he thinks need to be changed or adapted.
Why Steven believe that the property management industry is ripe for disruption.
Why it is challenging to shake things up and how management stagnated in the first place.
It’s not about your qualifications, it’s about being better at your job.
“If you look at what we do in a vacuum and each individual little thing, they’re not that complicated, but the fact that you have to do seven of them at once and then you get distracted and have to go over here and do something completely different is what makes it challenging.” — Steven Rea [0:13:23]
“If you can find really good management, they’ll outperform and free up a lot of owner-operators who are trying to figure out how to do it themselves to go buy more deals.” — Steven Rea [0:17:46]
“Whether it’s a high net worth individual looking to deploy capital or someone who is sponsoring a deal and raising equity towards a syndication, to me, it doesn’t really matter. The big thing for me is are you going to do right by the people living in your community?” — Steven Rea [0:30:41]
“Our industry is ripe for disruption. There’s a whole bunch of Blockbusters out there and Blackberries and I know there’s a bunch of people out there trying to figure out how to build Netflix or build an iPhone.” — Steven Rea [0:40:19]
Links Mentioned in Today’s Episode:
Steven Rea Email
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