Watch the webinar on demand.
Here at ZSuite Tech, we’re passionate about helping financial institutions become better partners to their clients. We interviewed multiple property managers about their businesses and dug into industry research, looking for insights to share.
In the video, Our CEO Nathan Baumeister and our Enterprise Client Success Manager Colleen Jamison share what we’ve learned, including:
- The business and financial challenges that property managers deal with on a regular basis.
- How property managers can help bring in low-cost core deposits.
- Ways to maximize your business development efforts.
Why property managers and landlords make great clients
When you examine the full relationship, property managers and landlords represent more than just another business in your portfolio. They bring in extremely sticky low-cost core deposits, and commercial loans. They also bring in transaction fees, mortgages, 1031 exchanges, brokered transactions, and even insurance premiums. Whatever uncertainty the economy holds, people will still need housing and the rental industry shows no signs of contracting:
- 92% of property managers plan to expand their portfolio in the next two years.
- 64% also offer services such as purchasing/selling or brokering property for their clients.
- 40% of all landlords plan to grow their portfolio of properties.
For a brief explanation of the difference between property managers and landlords, read our blog on the subject.
Find ways to add value before you actively pursue business development
Whenever you’re building new relationships, it’s important to take time to prepare, listen deeply, and be generous with your time and advice. This activates the rule of reciprocity (Robert Cialdini explains it well) and sets you up for engagement later on.
Consider ways that you can benefit property managers.
- Whether through inheritance or necessity, a new generation of people is moving into property management. They will need help navigating their new burden of compliance and liability. What tools and recommendations can your institution provide?
- Incoming rent, outgoing payments to owners, any time money gets slowed down in transit, somebody gets anxious. Of course you have fraud due diligence to consider, but revisit your policies and procedures – maybe there are ways you can speed things up.
- Property managers offer a service to both tenants and owners. Brainstorm ways that you can help add value to that service in exchange for justifiable fees.
- Whether through deposits or lending, once you open the door to a relationship, you can work on growing it.
- You don’t need to replace the property management tech providers. Look for tools that simplify or complement what your clients already have.
- The more connected you are in your community, the easier it is to recommend vendors, clients, and tenants. Become a referral engine for your banking clients.
There are a lot of helpful organizations and resources that you and your team can engage with.
- National Association of Realtors (NAR)
4M members. Largest trade union in the U.S.
- National Apartment Association (NAA)
82,000 members. Leading voice in rental housing industry, often smaller companies.
- Institute of Real Estate Management (IREM)
20,000 members. Learning, certification, and networking.
- National Association of Residential Property Managers (NARPM)
Speaker database. Including local chapters.
You can also dive into these publications and media outlets for the inside track on what property managers are up to.