Perspectives of a PM (by a PM)… - Posted by Chuck (AZ)
Posted by Chuck (AZ) on May 22, 2001 at 24:58:47:
I’ve seen this topic discussed enough on this forum, to know that what I’m about to tell you is not only long overdue, but worth it’s weight in gold (coins).
I’m a PM. I’ve managed everything from a small 55+ park to a 5 star all-age community… private park owners, to corporate mega-chains.
In every case, the PM has one underlying goal… collecting the lot rent. Next to that is keeping the park in good condition, which mainly involves proper maintenance, and a better class of tentant, to make that job easier. Virtually every PM you encounter will want to approve the people your trying to sell a home to… and a level of assurance that that home will be kept in good condition.
Having a good relationship with a PM is essential to YOUR mutual goal… doing business in that park!! Mutual goal? You bet. It’s in both of your best interests, to be on the same page… dancing the same dance.
The best way to approach a PM, is straight on. Be totally honest with them, explain exactly what you do and HOW it can benefit them to work with you. LEAVE THE SHADY TIN SALESMAN ACT AT HOME!!! YOU are a business-person, portray yourself as one. Be professional. If you can solve the PM’s main problem (the non-performing asset), you stand a very good chance of doing repeat business in that park.
Let them know that you too want a quality tentant in the home, that you’ll make every effort to pre-screen the applicant BEFORE bring them to the PM, and that IF problems should arise, your a phone call away. YOU (if your doing this right) are holding the title to the home until the debt is satisfied. YOU are ultimately responsible for the lot rent and the condition of the home!! This condition is paramount in the PM’s mind… make no mistake about it.
Find out WHEN the lot rents are due (usually the first of the month), then structure YOUR deal so that YOU get paid in the middle of the month. This arrangement allows the tentant to pay the lot rent when due, and you 2 weeks later. This not only ensures that things run smoothly for you and the PM, but it also allows YOUR tentant some breathing room between obligations. This one small tactic has proven time and time again to be the best approach with people in this income bracket. The lot rent is never late, and neither is the home payment.
Another method to smooth the path, is to pay the first months (or even the first and last months) lot rent out of YOUR pocket, using the money from down payment on the home. Then offset this by adding a couple of extra payments to the buyers note. By doing this you ensure that one or two months of lot rent is in effect pre-paid, before the buyer moves in. This sends a strong signal to the PM… and believe me they will notice it.
The common ground, foot-in-the-door, how do I approach a PM? question isn’t one at all… it’s an excuse NOT to act. If your doing this for the “fast cash”… which is what that attitude comes across as… move along to car sales. The reason you SHOULD be doing this, is to provide affordable housing to responsible adults at a nice profit. If you place the wrong tentants into a home, you’ll BOTH have nothing but problems.
Set the example, don’t be the excuse.