Before steering the helm at Superhog, Humphrey Bowles achieved the kind of growth most property managers can only dream of – 2,400% growth in 12 months!
In the first of a series of posts, he unveils how he achieved such phenomenal success back in 2010 and why he believes it is very possible to replicate his mean feat regardless of the state of the market today.
Lesson 1 – Be disciplined
Discipline creates stability by introducing structure, consistency, and control into
your actions and behaviour. So if you want to build and grow, start by doing the simple things:
- Respond promptly to emails.
- Have a smart, professional website
- Be up to date on industry news
- Build a support structure around you of people you can lean on for advice
- Be curious to learn and improve
Performing simple tasks is like finding and placing pieces within a puzzle. Each piece, no matter how small, is crucial for completing the larger picture and demonstrating to owners that you can perform for them, and their guests.
Lesson 2 – Learn to say no
Don’t be afraid to say no when considering which properties to take on for your portfolio. There is huge power in saying no. The psychology behind saying no and creating a sense of exclusivity or desirability will increase your appeal to owners. Reasons why saying no is effective:
You create a challenge/FOMO
Human nature often enjoys a challenge. When someone is told they can’t have something, they get FOMO. This fear of missing out will drive them to want you. When owners encounter resistance or a “no,” they get motivated to prove themselves worthy of your services. Overcoming this challenge becomes a goal in itself.
You enhance the perceived value of your services
Saying no will enhance the perceived value of your services. Clients may interpret your selectiveness as an indicator of quality, exclusivity, or expertise, making them more interested in experiencing what you have to offer.
You stir intrigue and curiosity
The element of mystery and curiosity is heightened when someone is denied access to something. Saying no can spark intrigue and curiosity about what makes your services unique or why you might be selective in choosing clients.
Lesson 3 – Choose the right owners
Choosing the right owners to work with is the hardest challenge you’ll face as a property manager. It’s a strategic decision that significantly impacts the success or failure of your business.
Mismatched values and mission match will lead to conflicts, misunderstandings, and a lack of cohesion. Owners who don’t respect your expertise, or fail to communicate effectively, will lead to misunderstandings, frustration, and a strained relationship.
Strategically selecting owners who align with your business’s values, mission, and capabilities will contribute to sustained success, while overlooking these factors will lead to challenges and potential failure.
Lesson 4 – Cash is king…
“How much money can I make,” is the question every owner cares most about.
Discussing the potential return on investment with an owner is a sensitive yet crucial conversation.
Here are some of my tips, apart from having said no the first time round, as explained above.
Understand their Goals
Through your opening small talk, before discussing potential earnings, make sure you understand the owner’s goals and expectations. What are they hoping to achieve by using your services? Understanding their objectives will guide your discussion.
Highlight past success stories
Share relevant success stories or case studies from previous owners who have achieved positive results. This can help set realistic expectations and provide tangible examples of the value your services can bring. If it’s the first time, lean on resources like AirDNA, STR Insights.
Provide clear metrics
Discuss industry benchmarks and standards, demonstrating how your services align with or exceed the expected performance in their area.
Discuss your value prop
Acknowledge that your services come at a cost, but emphasise the value they will receive in return. Clearly outline the features and benefits that justify your slice of the pie.
Offer a range of scenarios
Present a range of scenarios based on different levels of engagement with your services. This provides a more nuanced view of potential outcomes and allows the owner to see the impact of various approaches.
Be honest and realistic
It’s essential to be honest and realistic about the potential outcomes. Avoid overpromising, as this can lead to disappointment if expectations are not met.
Transparency builds trust in the owner-operator relationship.
Address potential challenges
Anticipate and address potential challenges or obstacles that may affect the client’s performance. Discussing these challenges proactively shows you are realistic and committed to finding solutions.
Invite questions and discussion
Encourage an open dialogue. Invite the owner to ask questions and express any concerns they may have. Addressing their concerns directly can help build trust.
In the next Master Class #02 Humphrey will share specific formulas for improving your ROI by adding additional income streams.
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