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In the world of property management, the journey to growth and success is filled with challenges, tough decisions, and lessons learned along the way. That’s why our Director of Marketing, Spencer Sutton, recently sat down with Evernest’s Founder and CEO, Matthew Whitaker, to review the Evernest journey. The two covered valuable insights and advice that Matthew would give his younger self when navigating the intricacies of growing a property management business.
You can listen to that conversation here, or simply read on for the top takeaways. Let’s dive in!
Growing Your Property Management Business
Matthew’s been doing this for 16 years now. He’s grown Evernest from managing a handful of Birmingham-based properties to managing thousands of homes all across the nation.
So what are the top three things you need to know if you’d like to do the same? From Matthew’s perspective, it comes down to:
Getting clear on your objectives.
Understanding the many resources required.
Avoiding impulsive decisions.
Now, let’s take a closer look at each point.
Be Clear on the Objective
As with any goal, defining your objective clearly when embarking on the path of growth is critical. Whether you ultimately want to be a boutique property management company or a larger organization, understanding the implications, benefits, and sacrifices of each path is crucial. By remaining intentional about the business's direction, you can align all decisions and actions with your desired outcome.
The Boutique Approach
Boutique property management companies are often characterized by their close-knit teams and deep connections with property owners. They usually excel in providing personalized service and can become the go-to experts in their local markets. This model allows for a selective client base, where you can choose to work with clients that align with your business values and goals.
The Advantages of Going Big
On the other hand, larger property management companies can offer value that's hard to match. With scale comes the ability to provide additional services that can effectively reduce the cost of management for owners. A bigger organization can also deliver more predictable outcomes due to the aggregation of data and deeper understanding of the business. But this growth comes with the need for more capital and a shift from property management to people management.
Understanding the Resources Required
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Growing a business, especially a large one, requires a significant amount of resources. Capital is the most obvious one, but it's not just about money. It's about investing in the right people and tools at the right time. It's also about understanding the market and knowing when to expand or when to consolidate.
Capital and Team Investment
Capital is the lifeblood of any growing organization. It's not just about having enough money to cover expenses; it's about having the foresight to invest in growth opportunities without stretching your resources too thin. This often means making personal financial sacrifices to ensure the business has what it needs to thrive, stellar team members included.
Avoiding Impulsive Decisions
Matthew strongly emphasizes the importance of patience and strategic decision-making to avoid the pitfalls of moving too quickly. By staying focused, being patient during growth phases, and resisting the temptation to rush progress, property management companies just like yours can maintain stability and sustainability for long-term success.
Learning from Mistakes
No doubt we’ve made some grave mistakes while navigating rapid expansion. In this process, we’ve ultimately found that the key is remaining mindful of pacing and organizational readiness. Understanding the balance between ambition and prudence is key to avoiding unnecessary stress and ensuring a smoother growth trajectory.
The Importance of Patience
One of the most valuable pieces of advice Matthew says he would give his younger self is to be patient. Growth is a marathon, not a sprint. There will be times when it's tempting to push hard for expansion, but it's crucial to be intentional about growth and avoid “getting ahead of your skis.” Patience can often lead to more sustainable growth and less stress in the long run.
Final Thoughts: The 3 Things You Need to Know When Growing Your Property Management Business
As the property management industry continues to change and evolve, embracing these lessons and principles can pave the way for enduring success and resilience in the face of growth. By being clear on objectives, understanding resource requirements, and exercising patience in decision-making, businesses can chart a path to sustainable and successful expansion.
If you're just starting out or considering your next move in property management, we hope this conversation provides you with valuable insights to guide your path. Remember, there's plenty of space in the market for everyone, and the key is to find the approach that aligns with your vision and values. And don’t worry. We’ll be here to help every step of the way!
Ready for More?
We know what it’s like to grow a property management business from 30 doors to more than 16,000. The journey was anything but easy, and we learned tons of lessons along the way. Our desire to share that knowledge with you motivated us to start the Evernest Property Management Show podcast, a weekly newsletter, and our monthly webinar series for property managers.
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