Risk-Free Property Management – The Free Trial That Actually Eradicates Fear

Part 6 of 8: Our Service Guarantees

You Don’t Pay Us Until We Collect Rent — Here’s Why

By BRIAN BEAN
Rental Home Advocate | Property Manager | Real Estate Broker

Rental investors benefit financially and personally when they hire a property manager. But finding, vetting and picking one can be scary and expensive if you choose wrong. But there is a better way to find a great partner, risk-free.

Free trials are fairly common these days in a lot of services. Streaming services, gym memberships, software, even try-before-you-buy. In most cases, you’re dealing with fairly innocuous offers. … WANTS, not needs. Amenities, not necessities. And certainly, low-risk offerings vs hiring someone to take over what might be your most valuable asset.

Most are designed to introduce you to their product or service, hoping you’ll like it and stick with them. But it’s rare to encounter free trials in more mission-critical services such as property management. For instance, attorneys, financial planners, or CPAs. If you’re hiring one of them, you’re most likely paying. And if you don’t like their work, you have to fire them, move on, and count it as a lesson learned.

The High-Stakes Decision

Similarly, hiring someone to oversee your rental property is like hiring a business manager. And it can seem daunting. People fear hiring the wrong person — they’ve heard horror stories and they’re afraid to get locked into a long-term contract for such an important job. I don’t blame them. I would be, too.

It’s why several years ago we implemented our Risk-Free Service Guarantees. One of them is called the No-Upfront-Fees Guarantee. Essentially, you can hire us to manage your rental properties, and you don’t pay us until we are collecting rent on your behalf. The only expenses you might have on a new rental property would be if the home needed repairs or improvements – those costs go to the vendors, not to us.

And when combined with our Satisfaction Guarantee, in which you can fire us at any time for any reason, you essentially have a free trial to put us to work and make sure that we are the right fit for you and your property.

What Constitutes Upfront Fees?

So, what might be considered an upfront fee in property management?

Some companies charge hundreds of dollars at contract signing for such items as setup fees or onboarding charges. Some charge advance property-evaluation fees and will provide a punchlist of repairs to make your home rent-ready.

Some want reserve funds in advance, and that money is held in trust in case of repairs in the future. These would not be considered fees, but it’s still money out of pocket, in advance.

Others might charge a markup fee in advance to oversee repairs to make that home ready for the market.

By the way, there’s nothing wrong with requiring up-front fees. Those companies are doing important work for their clients, providing more value than they are probably being paid for. We just choose to work a little differently.

The Difference Between Free Trials and Traps

The local gym offers a free trial just to get you in the door for an introduction, and they hope you’ll be too lazy to cancel the monthly credit card charge. The software service wants to lock you into a long-term contract, but they hope you’ll miss the cutoff date for the free or discounted service, and then be handcuffed for the duration.

That’s the opposite of what we want.

Our version of their free trial is designed to start a conversation, educate, and in so doing, calm people’s fears. Because the stakes are much higher, the dollars are much greater, and the legal consequences are much more severe. The margin of error is tiny. And frankly, rental owners are gun-shy because they’ve been burned in the past.

Our Dual Guarantee Approach

So we have a No-Upfront-Fee and a Satisfaction guarantee, and they are geared to remove those risks.

We want investors to not worry about:

  1. Whether we really do what we promise.
  2. Being held hostage with a long-term contract.
  3. Not being able to find another property manager if they aren’t happy with us.

And so with our No-Upfront-Fee Guarantee, we do not require you to write a check to us for anything in advance. Not for a setup fee, onboarding fee, admin fee, technology fee, portal-access fee. … not even for a deluxe undercoating fee.

When you get paid, we get paid.

Important Clarifications

Let’s be clear about what this means and what it doesn’t mean. Our guarantees don’t cover actual expenses for getting your property ready to rent — things such as repairs, cleaning, or renovations. Those are legitimate costs that benefit your property directly, and they’re due to the vendors who do the work. You’re responsible for paying those vendors when the work is performed.

But for our oversight of any repairs, to get you set up in our system, to create your marketing materials and hire the professional photographer, to process your paperwork — all the administrative tasks and behind-the-scenes stuff that we do — showing your home to applicants, vetting prospective residents and facilitating their move-in … you’re not paying up front anything for that.

Our fees, which are all transparently communicated in advance, don’t get paid until the first month’s rent is received. If we do what we say we’re going to do, and then perform, your rental will produce income. If we don’t do what we said we’d do, you can cut us lose and hire someone else.

Core Values in Action

This is how we do business. And three of our five core values apply here:

1. Put the Client First. We protect your cash flow during vacancy and onboarding.

2. Own the Outcome: We take responsibility for our performance and the results.

3. Live in the Truth: We keep our promises.

This is an alignment of interests, yours and ours. We work hard to put a great resident in your home who pays rent on time and takes care of your property. You now have a well-maintained asset producing income and growing in value, with little of the daily stresses to keep it running smoothly. And our business grows because you stay with us, and we even show you how to grow that portfolio.

The Bigger Picture: Two Fundamental Philosophies

The bigger picture, however, is showing wary rental investors that it’s actually possible. Our No-Upfront-Fees Guarantee and all of our other service guarantees — communication, satisfaction, performance, transparency — are built on two fundamental philosophies:

  1. Professionalism and peace of mind for our clients. We guarantee our performance. If we don’t perform, we don’t get paid and we lose clients. It gives our investors a sense of security and at the same time keeps us focused and productive.
  2. Reducing fear. Our industry has a bit of a black eye, so we must overcome the fear about hiring a property manager. We do that by reducing your risk so that someone … might just give us a try. Once they see the possibilities, the performance, the lower stress, they become long-term clients.

The Bottom Line

Hiring a property manager doesn’t have to be scary or a leap of faith. If you work with someone who has the confidence to prove their value, it makes it easy for you to test-drive the service and confirm that it’s everything promised.

And that’s about as risk-free as it can get.

Have questions about our No-Upfront-Charges Guarantee or any of our other service guarantees? Call Brian Bean directly at 951-314-5402. I’m happy to share.

 

About the Author: Brian Bean is President of Dream Big Property Management, serving rental property investors throughout the Inland Empire of Southern California. With decades of experience in risk-free property management approaches, Brian specializes in removing barriers that prevent property owners from accessing professional management services.

CA DRE #01346382.


Series Navigation: The Eight-Part Service Guarantee Series

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Full Transcript

Transcript of the video above — Brian Bean, Broker/Owner and Rental Home Advocate, Dream Big Property Management. CA DRE #01346382. Lightly edited for readability.

Rental investors benefit financially and personally when they hire a property manager. But finding, vetting and picking one can be scary and expensive if you choose wrong. Today I’m going to tell you how to find a great partner risk-free.

Hi, I’m Brian Bean with Dream Big Property Management here in Riverside, California. This is Part 6 of our eight-part series on property management service guarantees. Today we’re talking about how a free trial can help you ensure you select the right property management company.

Free trials are fairly common these days on a lot of services — streaming services, gym memberships, software, even try before you buy. In most cases you’re dealing with fairly innocuous offers: wants, not needs; amenities, not necessities; and certainly low-risk offerings versus hiring someone to take over what might be your most valuable asset. Most are designed to introduce you to their product or service, hoping you’ll like it and stick with them.

But it’s rare to encounter free trials in more mission-critical services such as property management — like, for instance, hiring an attorney or a financial planner or CPA. If you’re hiring them, you’re most likely paying. And if you don’t like their work, you have to fire them, move on, count it as a lesson learned.

Similarly, hiring someone to oversee your rental property is like hiring a business manager, and that can seem daunting. People fear hiring the wrong person. They’ve heard the horror stories. Also, they don’t want to get locked into a long-term contract for such an important job. And I don’t blame them. I would be, too.

It’s why several years ago we implemented our risk-free service guarantees. One of them is called the no-upfront-fees guarantee. Essentially, you can hire us to manage your rental properties and you don’t pay us until we are collecting rent on your behalf. The only expenses you might have on a new rental property would be if the home needed repairs or improvements. Those costs would go to the vendors, not to us.

And when you combine this with our satisfaction guarantee, in which you can basically fire us at any time for any reason, you essentially have a free trial to put us to work and make sure that we are the right fit for you and your property.

So what might be considered an upfront fee in property management? Well, some companies charge hundreds of dollars at contract signing for such things as setup fees or onboarding charges. Some charge advance property evaluation fees, and they’ll provide you with a punch list of repairs to make your home rent-ready. Some want reserve funds in advance, and that money is held in trust in case of repairs in the future. Those are not fees, but it is money out of your pocket in advance. And others might charge a markup fee in advance to oversee those repairs to make that home ready for the market.

I’m not here to tell you that those companies are doing something wrong. It’s important work, and they provide more value than they are probably being paid for. We just choose to work a little differently. And here’s why.

The local gym offers a free trial just to get you in the door for an introduction. They hope you’ll be too lazy to cancel the monthly credit card charge. The software service wants to lock you into a long-term contract, and they hope you’ll miss the cutoff date for the free or discounted service and then you’ll be handcuffed for the duration of the contract. That is the exact opposite of what we want.

Our version of their free trial is designed to start a conversation, educate them, and in so doing calm their fears — because the stakes here are much higher. The dollars are much greater. The legal consequences are much more severe. The margin of error is tiny. And frankly, rental owners are gun-shy because they’ve been burned in the past.

So we have a no-upfront-fee guarantee and a satisfaction guarantee, and together they’re geared to remove those risks. We want our prospective clients to not have to worry about, one, are we doing what we promised; two, being held hostage with a long-term contract; and three, not being able to go out and find another property manager if they’re not happy with us.

And so with our no-upfront-fee guarantee, you do not write a check to us for anything in advance. Not for a setup fee, onboarding fee, admin fee, technology fee, portal access fee — not even for a deluxe undercoating. When you get paid, we get paid.

So to be clear, our guarantees don’t cover actual expenses for getting your property ready to rent. Things like repairs, cleaning or renovations — those are legitimate costs that benefit your property directly. They’re due to the vendors who do the work. You’re responsible for paying those vendors when that work is performed.

But our oversight of any repairs, getting you set up in our system, creating your marketing materials and hiring the professional photographer, processing your paperwork, all the administrative tasks and behind-the-scenes work that we do, showing your home to applicants, vetting prospective residents, facilitating their move-in — you’re not paying anything upfront for that. Our fees, which are all transparently communicated in advance in writing, don’t get paid until the first month’s rent is received.

If we do what we say we’re going to do, and then we perform, your rental will produce income. If we don’t do what we said we’d do, you can cut us loose and hire someone else.

This is how we do business. Three of our five core values apply. One, put the clients first — we protect your cash flow during vacancy and onboarding. Two, own the outcome — we take responsibility for our performance and those results. And three, live in the truth — we keep our promises.

This is an alignment of interests, yours and ours. We work hard to put a great resident in your home who pays rent on time and takes care of your property. You now have a well-maintained asset producing income and growing in value, with little of the daily stress of keeping it running smoothly. And our business grows because you stay with us. We even show you how to grow that portfolio so that our business grows more.

The bigger picture here is showing wary rental investors that it’s actually possible. Our no-upfront-fees guarantee and all of our service guarantees — communication, satisfaction, performance — are built on two fundamental philosophies.

First, professionalism and peace of mind for our clients. We guarantee our performance or we don’t get paid and we lose clients. It gives our investors a sense of security and at the same time keeps us focused and productive.

And second, reducing fear. Our industry has a bit of a black eye. We must overcome the fear about hiring a property manager, and we do that by reducing your risk so that someone might just give us a try. Once they see the possibilities, the performance, the lower stress, they become long-term clients.

Hiring a property manager doesn’t have to be scary or a leap of faith. If you work with someone who has the confidence to prove their value, it makes it easy for you to test-drive the service and confirm that it’s everything promised. And that’s about as risk-free as it can get.

If you have questions about our no-upfront-fee guarantee or any of our other service guarantees, call me directly at 951-314-5402. I’m happy to share. We’ll put links in the show notes if you’re interested in our previous videos addressing all of our other service guarantees. You can also find valuable information on our website, dreambigpm.com.

And if you found the information you heard here today useful, please do us a favor: like and subscribe so that we can help others just like you. Don’t be accidental about your future. Be intentional to your success.