Peter Lohmann's Newsletter - Tuesday Edition #1

Welcome to the Tuesday Edition!

[I’ve been piloting a Tuesday edition of the newsletter, and this is the first official issue! Feedback welcome; just hit reply.]

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Put Yourself First

I got a really interesting email from a reader last week (emphasis mine):

This question is broadly relevant to anyone who owns a company—basically, what do you owe your customers? Are you allowed to focus on other things? Are you allowed to take extended time off?

I have two answers - the boring one and the real one.

Here’s the boring (but still truthful) answer: We have an outstanding leadership team in place who runs the day-to-day here at RL Property Management. In fact, they are more qualified than I am these days to handle most everything that happens at the company. Creating a business that is able to run without my involvement most of the time, I would argue, makes for an even better owner experience because the company doesn't grind to a halt if I'm sick or on vacation. It also allows my team to grow their skills and have a real career with advancement opportunities, because I’m making room at the top. This also prevents me from getting burnt out and selling the company, which would almost certainly result in a service downgrade for property owners.

Staying at the forefront of the industry also allows me to discover & test best-of-the-best new technology and best practices, and implement them in my company quickly.

Finally, we carefully track our owner NPS scores and churn, and through various efforts, have seen massive improvements in both over the last year despite me being less involved than ever.

Here’s the real answer: I designed a company around my own needs and preferences and not those of my customers. If an owner is upset by the way I run my company, they are certainly free to hire a different property manager, but I'm not going to contort how I run my life around the opinions of Columbus Ohio property owners, nor will I stifle my professional interests and opportunities on their behalf. I'm going to do what I think is best for my own career, income, and work-life balance (which is exactly what employees do too, by the way, and there’s nothing wrong with that). That's a privilege I have as a small business owner, and they have the same privilege when it comes to selecting which company manages their properties. I would never try to shame them into hiring us.

You owe it to yourself to set up your company in a way that benefits you, first and foremost. Otherwise, why do it? Business ownership is hard, risky and occasionally terrifying—with no guarantee of income. The least we can do while we’re at it, is work on things that are interesting to us.

Of course, you must bear in mind the other important stakeholders in your business: employees, customers, vendors, regulators and more. By no means am I suggesting you ignore these parties or treat them with contempt. Far from it. I’m simply pointing out that you, the business owner, come first—the preferences and opinions of all others are subordinate.

How is that fair, you might ask? For the simple reason that you, the business owner, are the one bearing ultimate financial and legal liability for everything that happens at your company. Nobody is going to step in and save you from a lawsuit, a regulator issue, a mass customer exodus, a banking problem, or anything else. It’s on you. So set up your company to run at your convenience, and make no bones about it!

PM Company & Vendor Updates

• The Joseph Group has acquired ACP Management, bringing them close to 2,000 units total under management. Congratulations Ian!

• Tenant Turner has updated the way they display fees associated with renting on rental listings, to keep their customers compliant with new federal regulations.

• Real Property Management Today has acquired Real Property Management Assurance.

• Oakline Properties has acquired Four Star Realty.

• TurboTenant announced the launch of Autopilot, a “flat-fee, hands-off property management service designed for independent landlords who want professional support without the high costs, hidden fees, or lack of control common with traditional property managers.”

The Most Disciplined Operator I’ve Ever Interviewed

This is one of the top three most-played episodes of all time, and for good reason. Logan Rankin breaks down how he scaled to more than 4,000 owned apartments without syndications, partners, or outside capital… just ruthless focus on systems and speed. We get into lightning-fast unit turns, incentive-driven maintenance teams, resident experience as a real profit lever, and how he keeps recycling his own capital into deal after deal. (Season 4, Episode 10)

(Also available on Apple Podcasts or Spotify)

What I’m Reading Right Now…

• I’m following with interest this story about a new kind of country club, designed for younger families with kids (instead of being golf and legacy-member centric). I would love if something like this came to Columbus.

• My own state of Ohio’s Supreme Court is currently deliberating on a case that could have huge implications for city rental registries. Fingers crossed!

• I just finished “The Looming Tower”, which is about the rise of Al Qaeda and those responsible for 9/11.

Have You Hit the Property Management Growth Wall?

In this video, I break down the simple math behind what I call the “Growth Wall” - the invisible ceiling created by churn and how many doors you add each month. More importantly, I show you how to use this free interactive calculator that shows exactly where your ceiling is and how close you are to hitting it. Check it out:

Affiliate of the week: Gusto

I use Gusto at my property management company to handle payroll, 401k, benefits, and HR training. I highly recommend you try them out, because it makes it super-easy to run W-2 payroll AND pay remote team members (global talent) all in the same place.

Meme Tuesday:

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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.