Peter Lohmann's Newsletter - Issue #177

Investigate your Tapeworm Vendors

Warren Buffet occasionally makes reference to “Tapeworm companies.” What is a tapeworm company? I like Moses Kagan’s breakdown, which he posts every year or so:

As property managers we have a HUGE surface area of responsibility, so we inevitably end up working with dozens and dozens of vendors, partners, software providers, etc. This provides many attack vectors for such tapeworm companies. And a lot of them increase their fees in January.

Here are some examples. If you haven’t looked at your monthly/annual bill for these companies in a while, you need to:

• Internet service (notorious). I just got ours (Spectrum) reduced from $130 to $100/mo AND got our upload and download speeds increased. Get someone in your office to call and negotiate this, and have them do it annually.

• All the random SaaS companies that you’ve tried out. Zoom, Calendly, Fathom (basically every AI notetaker app), you know all those apps that are like $5 to $35 per user. Almost all of them, if you go through the cancellation flow, will offer you a 50% or more discount on their services.

• Office cleaning vendors

• Office supply & service companies of all kinds including those that handle your water cooler bottles, carpets, shredding, etc

• Random bank account fees (call them and negotiate these off). Did you know Enterprise customers who are also Crane members automatically get no-fee analysis banking?

• Any company cell phones or data plans

• Local photography companies you use for listings (raise prices without telling you)

• After-hours call centers (soon you’re paying more than it would cost to have a FTE in the Philippines)

• Website & marketing companies (really bad for this)

• Cancel your paid Zillow account, as previously discussed in this newsletter last year

Property management software/vendors—I find they are rarely willing to deal, but its worth a shot. You will get way more leverage if you’re willing to sign a 1-year (or longer) agreement. If you are, lead with that.

Companies I’ve never had success finding a deal or discount for (let me know!):

• Google workspace/business or whatever they’re calling it these days

• RingCentral

• Office 365

• Dropbox

• Adobe Acrobat / Esign

• Gusto

• Notion

• Xero/Quickbooks

• Slack

• Zapier

Another random money-saving tip. If you’re hiring with LinkedIn or Indeed, set your daily budget to the minimum dollar amount they allow. In my experience it has almost no effect whatsoever on lead flow compared to higher (even like 10x higher) daily spend. I would almost call it fraudulent, what they’re doing with this.

Your Leasing Funnel Is Leaking. Here’s How to Fix It

Flat rents. Longer days on market. Rising fraud. And don’t even get me started on fee disclosures. This week’s podcast features Vanessa Anderson, CEO of ShowMojo & Tenant Turner. We talk through what’s actually working when it comes to leasing, and where PMs are getting stuck.

We also get into how AI is being used (effectively) in leasing workflows, surprising trends from their latest leasing report, and why a clear pet policy might save you 2–3 days on market. This one is super informative. Check it out:

(Available on Apple Podcasts & Spotify)

Property Management Companies For Sale This Week

• A STR + LTR property management company is for sale in Grand County, CO (asking $1.5M on $1.25M in revenue)

• This STR property management company in Austin, TX is for sale (asking $1.5M)

• Here’s a property management portfolio for sale Wisconsin (1,000 units, asking $2.5M)

• Here’s a brokerage with property management for sale in Las Vegas (asking $1.5M on $485k in SDE).

• Here’s a property management company for sale in Nashville (asking $235k on $233k in revenue).

Sponsored by Anequim. Better operations start with the right support. Anequim helps property managers stay organized, responsive, and focused on growth with vetted remote professionals and around-the-clock coverage. Learn how.

Industry News & Events

• On Tuesday, the FTC announced it intends to regulate rental housing fees.

• RentVine’s user conference registration is open. The event kicks off May 13th in Tampa. More info.

• A Florida property manager was accused of stealing $600k and arrested.

• Peter & The Wolf, your live property management show, relaunches Thursday. Register here.

• Apartment rents are at their lowest level in 4 years.

Closing Thought

A few quick things before you go…

• Last week’s issue went to 20,462 readers (73.5% opened, 4.3% clicked)

• The most popular link was the X (174 clicks)

• Property managers: Your professional trade association is NARPM. You need to join if you’re not already a member.

• Did someone forward you this email? Subscribe here.

Software I’m using to scale my 700+ door property management company:

Note: These are affiliate links, but I’ve been recommending all these companies long before any financial arrangements came into place.

The content of this newsletter is for informational purposes only and does not constitute professional advice. I may have consulting agreements with, or financial interests in, companies mentioned in this newsletter. Additionally, some of the links included in this newsletter are affiliate links, meaning I may earn a commission if you make a purchase through these links. Always perform your own due diligence before making any financial or business decisions.