[Nebraska]

Here's the transcript of recent emails with a new property manager of a Developer we have worked for over 5 years with:

Here's my first email in response to a Dear Vendor letter we received from this person:

Hi XXXXX,



Wanted to drop you a quick line to let you know that we are going to have the information to regarding XXXXXX by Monday.



We have a current agreement in existence for the xxxx property... we will review that one and let you know of any changes.



Have you seen our website? Go check out the snow section...it's got a picture of your xxxx property on it from 2/9/04....I've also go pictures of all the snow that we filled the creek with the loaders in order to make room on the lot. If you interested I certainly can show you them.


Questions / issues that I have for you:

Are you interested in considering a multi year contract? That way you and the tenants would know almost to a cent for the lawn and landscape maintenance portion what your expenses would be up to 3 years out. Another option that we are looking at with a Developer in (nearby Town) is a yearly agreed upon snow budget up to a certain number of pushes & / or events based upon averages of a number of seasons. Snow removal expenses are such a fluctuating and frustrating issue for property managers and the idea is you might have greater control over budgetary issues concerning your tenants leases charges, triple net, maintenance charges... Just some options...let us know if you'd be interested in exploring any of these ideas that might make things more attractive for the tenants and manageable for you folks.



******The response....****

I assume you mean XXXX, I am not aware of a current agreement for anything but lawn at XXXXX. I will be taking bids for snow in Sept. for both XXX & XXXXX. I would welcome your bid on both projects. If you have questions, give me a call.

*****My response*****

Yes, the current agreement that we have includes both the lawn, landscape, and the snow at XXX and is an automatically renewing agreement with a 30 day cancellation clause.

*****The response*****

This is to inform you 30 day in advance, that I will be taking bids on Snow for 2004-2005 season. I would like you to bid both XXX AND XXXXX , but I will be going with the best and lowest bid. I will notify everyone early in 2005 for Lawn and Landscape bids. If you have any questions, give me a call.

*****My response*****

Our goal is to establish long term relationships with property owners and managers.

Over time we become familiar with the intricacies of the properties and find that we can more effectively manage their needs better versus a lawn and landscape business that constantly turns over their book of business. I firmly believe this is a win-win situation for the interests of both parties involved.

I have faxed our agreement for the XXXXX Shopping Center this morning and will follow up with you shortly.

................


Just curious as to what some of your thoughts are on this exchange....there is an interesting twist that this new property manager is not aware of and I will divulge later.

[VoodooChile]

I've wondered what sort of incentives are in place to keep property managers hustling and cheap. They must get a budget, and retain what's leftover?

IMHO, without a sense of ownership, the property manager is gonna go low-ball every time. The exceptions occur at exceptional properties, where the residents expect the best, are willing to pay for it, and demand that the property manager produce it.

I met such a rare bird last weekend, and the guy's pride in the property, and desire to improve areas that lacked, was impressive. We'll see if he goes for the bid...

Sometimes, you can produce quality and profit working with the "landscape committee", especially if they've blown a big wad on a landscape disaster. Expect plenty of hand-holding, but at least these folks are proactive, aware of the importance of greenspace, and able to get things done, like $ budgeted.

Most times though, you're left with a minimal budget, and residents who expect you to be at their beck and call. Not a model for a profitable business.

This Spring we planted some trees for a Condo Association, and one old bird wanted us to rip out a weeping Spruce at the corner of a building (we didn't even have the account for the beds!), and another was wondering if we could take a minute to move a hundred pound fountain into her second floor digs!

Sounds like the changing of the guard Nebraska, has left you working with the last group, cheap and demanding.

And I love that phrase "best and lowest bid"!

[Stonehenge]

I guess that explains why, upon my first contact with a person from a property mgt company, my bid never got a return phonecall. Seeing as she'd forgotten about our appointment, then when I called her to ask if we were still on, she asked 'Did I miss the appointment', I figured this wasn't worth a lowball bid.

My impression was that they have little to no respect for you or your time - something I'm not too familiar with or keen on, coming from residential work where I think there is far greater appreciation. So I feel for you - If there is a silver lining, I'm sure you'll be around when this property mgt company or rep gets the boot and the next person/company come in.

[Bill Schwab]

Property mangers are bottom dwellers, meaning the lowest bid gets the deal. Same as HOA boards. WE have had a few calls for restoration/updating, etc etc and am to the point where unless they give our company a $250.00 consultaion fee, which, is redeemable after we begin work, I won't waste my time meeting with them. Needless to say, we don't meet with many of them.

My thoughts Nebraska, simply this. Power play comming on here. I'm betting the management company has a contractor they use all the time for most of thier work and you are providing bidding comparision services for them. Thus, why we charge consultation fees, assurance we wil be paid for our time in these situations.

I would go out and get another property to make up the revenue that you stand a good shot at loosing. Maybe not, maybe I am wrong here, but, it is stacking up like that as I see it.

[Nebraska]

I would be interested in finding out what motivates them to believe that best and lowest can exist at the same time. My reply has always been "I'll give you my best but it's not my lowest & my lowest is not my best."

I posted it to confirm my thoughts that I was being given the cold shoulder....like it wasn't obvious! It's been a while. I still can not understand the motivation and the thought process....quite honestly it's chicken sh*&! If it was me I would just come out and say, "look, I been working with another company at previous property management company's and I prefer to use them." Honesty goes a long way IMO.

The twist is that I am very connected with the entire family that owns this development company. For the past eight years I have been frequently hunting, fishing, and golfing with all of them. We take care of all their lawn and landscape needs on all their personal residences too. A good relationship has been established. A relationship that this person is completely unaware of. If this person wants to try and weild power like this then I shall weild my power. So as such the phone call was made, email copy's sent, and lunch had. They agree that this person's tactics stink and as a result they are going to develop a poor reputation amoungst their tenants and contractors. They were very upset with the lack of respect and courtesy. They reiterated that they value our relationship as well as value the work we have done over the years. It was also reiterated that we have the contract with them as long as we perform as we've done in the past. This person has been with them for four months and I've come to find out that I am not the only one that has come to them about this person....not just one of a few....

Will see what happens...
...this is the first time I have been in a position with some "power" to alter the outcome....

Very rarely on the commercial end of the business, unless the prospect is a referral, does anyone ever have the slightest respect for your time. Hence the reason I have never really gone aggresively after this type of business......what we do have that is worthwhile has always started with someone's residence.

Bill,
I like your idea (it seems to be a recurring theme with you...) of a consultation fee. I will begin using it more often.

[Bill Schwab]

Nebraska:

Even if you recover gas costs for meeting with people who you know most likely won't be using you, if anything ti says your time is important and valuable. It's the old bumper sticker saying Ass, Gas or Grass, nobody rides free!

Tony Bass recommends charging for meetings to help pre qualify people. At one point I thought that was a bad idea, then I saw all the folks who think nothing of trying to get your ideas and use them with no compensation.

Tony's operation is out of Georgia, so I know consultation fees work in other parts of the country. Just food for thought!

[Nebraska]

Stumbled upon this old thread. As an update the owners fired this property manager near the end of 2005. We still do work for their properties...they are now up to six different properties.

[Mark Oomkes]

Good to hear, Nebraska. When I have some more time, I'll post a few of my experiences with property managers\bottom dweller type people. I have a couple good stories as well.

[Nebraska]

What I find amusing is their pre-conception of me as lawn and landscape business owner before I get a chance to converse over the phone or before we do meet face to face. In my opinion that's very telling of the competition.

As of recently we are finding ourselves working with more and more property managers and the majority are respectful; the ones that come from referrals. The one's that come out of the blue often attempt to use us as a tool - either to meet their quota of estimates or for dirt cheap pricing.

For her bottom dweller is an understatement. She is bred from and breeds in the underworld!

[cutntrim]

Having lived in a condo, and worked for condos, I tend to avoid them like the plague now. "You can please some of the people some of the time, but you can't please all of the people all of the time".

Must have been a contractor dealing with condo boards that coined that saying.

We provide services for an industrial plant here in town and they're on their third plant manager in maybe 7-8yrs tops. We just keep chuggin' along providing the same services we always have. The GM with the company hasn't changed.

I had to stifle a chuckle last week when the new guy came up to me with, "I'm not sure you are aware, but I AM THE NEW PLANT MANAGER". It brought to mind the scene in the old Tom Hank's movie "Bachelor Party" where they give the "HOTEL MANAGER" a sarcastic golf clap in the elevator.