How Long Until We See The “Ritz Carlton” of Landlords (Property Management Companies)?

If you ask any person around the world what hotel do they know as being the best, you’ll likely get “Ritz-Carlton” as an answer.  The crazy part is how 99% of these people have never stayed at a Ritz Carlton in their entire life.  How would that 99 % describe this hotel with 1 word? “Customer-service, elegance, perfection, cleanliness, comforting, family, caring, ultimate-experience, personalized, unbeatable” and many other words that relate to being #1 in every hospitality category.

Now, if you ask any person around the world what residential property management company, aka landlord, do they know as being the best, you’ll DEFINITELY get “there’s not one good landlord and the only thing they care about is money” or “if there’s a good one out there, I definitely don’t know the name of it.”  If you’re someone in the property management industry and think these answers are inaccurate, I’d love to hear your thoughts and the subject.  Property management companies have a stereotype of being inconsiderate, rude and only about the money.  This is the part that bothers me because I know A LOT of great people that have frontline jobs at residential buildings and they do whatever possible to provide great customer service.  HOWEVER, it’s important that EVERYONE in the company, from the CEO to the newly hired part-time leasing consultant, all share the same vision and values.   Furthermore, it’s all about being engaged with the company culture each and every day rather than recalling it only when the numbers go south.

NEVER ASSUME

When I started to research this topic, my initial thoughts were based on the Margin of Error for both hotels and rentals.  I assumed hotels were less prone to an accident occurring, therefore making it easier to manage and concentrate on customer service.  However, I quickly realized that assumption was absurd after jotting down all the services hotels provide.  The biggest one I forgot about was ROOM SERVICE.  It’s a dime a dozen for restaurants going under and forced to shut their doors.

NEW APPROACH ON TOPIC

I decided to continue this post using a different approach and only talk about what’s required from Property Management companies if they want to become “the BEST in the business.”  Furthermore, it will be formatted an outline, as if I’m presenting for the CEO of a random PM company.

The following information are my thoughts on this subject, based on the 16 years I’ve spent working on-site in multifamily residential buildings.  However, I do feel the information shared is valid and accurate based on my diverse experience in this field.  I’ve “been there & done that” when it comes to on-site property management.

MISSION

1. Become first property management company to have industry reputation similar to what Ritz Carlton is for the hospitality industry.
2. Have company-wide standards that others use as a benchmark for being the best
3. Known for providing services that others cannot compete with
4. Provide ultimate experience for anyone entering building, leaving unforgettable impressions, leading to life-long customer loyalty
5. From leadership to frontline employees, everyone shares the same vision, values, and most important CULTURE
6. NOT known for giving renters a “community” experience, but going one step further and providing a UNIQUE LIFESTYLE EXPERIENCE
7. Employee turnover is lowest compared to all other companies, every position is treated equally in regards to importance, employees are loyal and feel a sense of ownership in building, hiring process is demanding and only the best are hired.  (Similar to getting the tour of Willy Wonka Factory – had to throw that in)
8. Always at least 95% Occupied and 97% Leased, with waitlist year-round
9. Due to reputation and brand loyalty, premiums can be added to make effective rent at least 10% higher than the closest competition.
10. Specific team that only focuses on improving and staying 10 steps ahead of the competition.

WHAT ARE THE REQUIREMENTS TO COMPLETE MISSION?

In all honesty, I don’t think it’s possible for a property management company to achieve a reputation like Ritz Carlton or The Four Seasons.  The key word in that last sentence is “company” and here’s why.  In my opinion, although a property management COMPANY will never be like the Ritz, that doesn’t mean one specific building can’t be.

Anyone who has anything to do with that building.  Literally ANYTHING.  The goal is to NEVER leave a bad taste in someone’s mouth in regards to the building reputation. Everything must run perfectly.  Yes, there  it could be something minuscule such as not letting job candidates know the position was filled.  Who knows what that person is capable of when it comes to spreading bad news????  (I’m not using myself in this example if that’s what you are thinking)  It might sound silly, but again, you want nothing negative associated with your building and need to do EVERYTHING in your power to make that happen.

* AVOID having to say “I apologize” as much as possible.  It should be obvious wanting to avoid dialogue that starts with “I apologize.”  The manager should never have to apologize “on behalf” or “in regards to” or “for.”  The only apology that should happen is for unexpected building problems: leaks, flood, no hot water, false fire alarm, etc.  Otherwise, similar to sports, you will ultimately lose due to unforced errors.  

“If you’re not getting better, you’re only getting worse.”

—Tiger Woods, Professional Golfer