099: Nationwide Property Management Company with Renters Warehouse
On today’s episode of The InvestFourMore Real Estate Podcast, I talk with Noel Christopher, who is the Vice President of Business Development at Renters Warehouse. Renters Warehouse is a national company that is working on streamlining the property management business. Renters Warehouse started in 2007 with the franchise model for property management. They have since moved to a corporate model that provides across-the-board service and fees for every market they serve. The company charges landlords flat fees for management, does not up-charge on repairs or maintenance, and provides tenant warranties. Not only does Renters Warehouse provide reliable property management, but they are also expanding rapidly by purchasing existing property management companies.
What is the background on Renters Warehouse and Noel Christopher?
Renters Warehouse was started in 2007 with the goal of providing franchises for property management. The company stuck with that model for 8 years until a private equity group made a large investment in the company, and the franchise model was dropped. The company found that using a franchise model for property management provided inconsistent service because every company had different policies and procedures. With the corporate model, Renters Warehouse could implement the same training, policies, and procedures for every location.
Noel previously worked with Investability and Rent Range and was a real estate broker for many years. Noel helped investors acquire, repair, and manage over 3,000 houses.
How does Renters Warehouse provide consistent service for landlords in multiple states?
I first met the Renters Warehouse team at a real estate conference. I was impressed by their model and their prices. They usually charge a flat fee of $79 to $99 per month for single-family rentals. The prices vary based on the market they serve. They also charge one month’s rent for tenant placement, and they guarantee the tenant for 9 months. They do not up-charge for any maintenance or repair costs like many other property management companies. They can also help landlords find contractors and even give insight into certain markets around the country.
Renters Warehouse has locations in Seattle, Las Vegas, Utah, Colorado, Texas, Illinois, Missouri, Alabama, New Jersey, Florida, just to name a few. They are also expanding into many other locations. They have worked on opening locations in areas that have the best rental markets.
How is Renters Warehouse expanding into new markets?
Renters Warehouse expands their coverage are by buying existing property management companies across the country. They look for property management companies with at least 100 doors, but in some cases they will buy smaller companies. They take over the companies and revamp them using their corporate model but often retain the exisiting managers or owners of the company. They especially look for property managers in Oklahoma, Indianapolis, Florida, Alabama, Texas and Colorado.
How can Renters Warehouse help investors invest in out-of-state rental properties?
One of my biggest problems, which is also a problem for many other investors, is finding good markets for rental properties. Many markets are too expensive to cash flow in, which means investors have to buy out-of-state rentals. It is tough buying a rental property that is not nearby because you have to find a great contractor, property manager, and agent. You also need to learn what to watch out for in certain areas of the country. Some states are very friendly towards tenants, but in other states, it can take up to a year to evict someone.
In their local markets, Renters Warehouse has connections that can help with repairs, maintenance, and—of course—property management. They can also help investors learn what they need to know about local markets and put them in touch with great agents. One of the biggest concerns for out-of-state investors is finding good property management. Thanks to Renters Warehouse, you know you will get consistent policies and structure.
Conclusion
Noel left us with some tips for out-of-state investors. He mentions that Renters Warehouse works with a lot of turn-key rental property companies. Some turn-keys are great, but others are not so great. The biggest downfall with a turn-key property is usually the property management. Make sure you research the turn-key company thoroughly before investing with them, and remember that you can choose your property management company. Noel also advises people to be careful with buying lower-end rental properties as they often come with the biggest headaches and hassles.