November 26, 2024 • 17 mins
With 24+ years of experience, Jozsef shares key insights on managing tenants, navigating challenges, and building trust through transparency. Whether you're a landlord or just starting, his tips are a game-changer!
#RealEstateInsights #PropertyManagement #Podcast
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Speaker 1 (00:00):
And it's always a good thing to reinvest some of
your rental income into theproperty.
You know tax optimization aswell.
You know appreciation of theproperty right, that's a big
thing.
Speaker 2 (00:16):
Welcome to the 5 Questions Podcast, where we
unlock real estate and businessinsights, one question at a time
.
And business insights, onequestion at a time.
Welcome to the 5 QuestionsPodcast.
I am your host, mario Lamar,our guest on today's show.
He has been a property managerfor over 24 years, loves to
(00:43):
build lasting relationships withboth sides of tenants and
landlords.
Welcome, joseph Petrowski.
Joseph, welcome to the FiveQuestions podcast.
Thank you, mario, for having me.
Joseph, the concept of thepodcast is really simple.
I ask you five questions,either about business or real
estate, and we get straight tothe point you ready.
(01:03):
Sounds good.
Speaker 1 (01:04):
Let's go.
Speaker 2 (01:06):
Joseph, your journey in property management began at
a young age.
Can you tell us about yourinitial experiences to property
management and how it shapedyour approach to today's
property management?
Speaker 1 (01:23):
I mean, I started pretty early.
I've always been a brick andmortar guy, so I like to buy
things that I can touch and feelright.
So it's always been like thissince I was little, and I always
had the dream to own a propertyat one day, right.
So it was more than 20 yearsago when I brought my first
property.
It was a piece of land which Istill own for today.
(01:47):
I haven't built a house on itor haven't developed it, but you
never know, maybe in the future.
So that was prettystraightforward and simple and
that when I find the listingwith a realtor and then I find
the listing with an owner, so Iwent with the owner, I saved on
the realtor fees, so that was asmart move on that one.
And then a couple of yearslater I bought my first
apartment, which teach me a lot.
(02:11):
Uh, I bought it from someone Iknow from before and then I made
a really good deal, made alease back, right.
So I bought the property.
I leased it back for right awayfor a year.
But after, when the leasebackwas over, then the problem
started to happen because theproperty was not cared for and
then I had to do the renovationsand then he was not paying rent
(02:31):
for a couple of months, right.
So I right away get into themore challenging part of
property ownership, right.
So I learned pretty early notto deal with Graham family or
anybody you know, right, becausethen you have technically less
leverage to moving forward.
And after I rented the propertyout, my mom, my mother and my
(02:54):
family was helping at the time,and father and my sister with
the renovations and day-to-dayoperations.
Of course we did not have muchexperience.
I did not have experience atthe time, but it was a good
learning curve to figure it outwhat you're not supposed to do
versus what you're supposed todo.
And I had a couple of tenants inthe property.
Some of them were reallysuccessful.
(03:15):
Some of them were running intosome other problems.
In case you don't have a system, that's what we have in Canada
over here with the creditreports and background checks
and all those things.
They're not really crystallized20 something years ago in
(03:36):
hungary.
So I learned my way and thenI'm, you know, fast forward to
today.
I try to make everybody saystay away and stay safe from
those early pitfalls and earlychallenges, what I went through.
So that's my philosophy to makesure both sides are happy.
The tenants are happy in theplaces and the owners are
renting out their places arehappy so I can guide them.
Both sides and everybody have apleasant experience in the
rental market.
Speaker 2 (03:57):
So you really learned from a young age by practicing
property management.
So you bought some propertiesfirst, you experienced tenants
and that really shaped your wayinto today's property management
.
You know ways you do things.
Speaker 1 (04:16):
Absolutely.
I mean, you have to get yourown experience into the game
right, If you don't have yourown experience, you don't have
your own skin in the game.
Speaker 2 (04:24):
Yeah, it brings us to our second question and, in
your view, what are the mostmaybe common misconception about
property management and how doyou address them in your work?
Speaker 1 (04:44):
I mean property management.
In my experience it's a broadsubject.
Everybody does it in differentways.
What most misunderstandingcomes in my way, that's people
are thinking property managementis property maintenance on one
end.
Other end, people are thinkingproperty management is asset
management right, and all thosethree things are very different
things.
Asset management, propertymanagement, property maintenance
(05:05):
right, and all those threethings are very different things
.
Asset management, propertymanagement, property maintenance
right, it's interconnected butnot interchangeable, right,
right?
So that's the main thing.
So my way of handling situationslike this I always ask my
clients or future clients,what's their experience with the
real estate market?
Have they rented a place outbefore?
It's the first experience.
(05:25):
Second experience but is theirlevel of knowledge of the market
or of the situation?
And then we can level fromthere and can explain to them.
You know, as a property manager,we take care of everything what
your day-to-day operationsneeded for your property, but we
don't do any physical work,right, right, that's the big
differentiator.
Like property maintenance,they're going to do everything
(05:47):
physical.
Property management is going todo everything that's not
physical.
Asset management is going to be.
Look at the three years plans,five years plans, 10 years plans
plus 20 years, either or right.
So we need to have a goodunderstanding of the three
different parts of the businessasset management, property
management and propertymaintenance.
(06:08):
Once we level the field, thenwe can move forward, and that's
usually really helpful for bothparties.
Or younger investors ornot-so-seasoned investors,
somebody who's in the businessfor 15, 20 years or 10 years.
They will know exactly thedifferences, what's happening
and what instruction they needto give to all different people.
Speaker 2 (06:29):
So, by understanding your clients and where they came
from, their journey if they'restarting up or if they're an
experienced investor helps youset the expectations afterwards
of your clients, so that'sreally good.
Speaker 1 (06:48):
Absolutely.
I mean you need to be able tounderstand each other on a very
granular level.
Right, because propertymanagement, you know the goal is
to make everything smooth.
But sometimes you need to gointo, you know, not so pleasant
conversations or certaindifferences where they have one
understanding of a problem andthen you have to apply a
different solution right, orit's coming to an emergency.
(07:10):
It's how you handle emergenciesright.
Solution right or it's comingto an emergency.
It's how you handle emergenciesright.
And that's coming to the pointwhere some people they think,
okay, if something is wrong,you're going to go there and
you're going to fix it.
As a property manager, I don'thave the expertise or the
liability insurance for that todo it.
Let's put it that way, right?
So there's different propertymanagement companies, different
(07:30):
philosophies.
There is different propertymanagement companies, different
philosophies.
Our approach is veryprofessional.
We try to do everything by thebook and that's our standard.
Right, we only use licensedtradesmen for plumbing,
electrical appliance repairs.
Right, we only work with theright people.
We're not going to be goingwith somebody who maybe can
(07:53):
maybe have the idea how to fixsomething and maybe going to do
it right or maybe going to do itwrong.
We're going to go with theprofessional who knows exactly
what he's doing, and the resultsare there.
Speaker 2 (08:03):
It brings us to our third question and your
philosophy.
You emphasize the importance ofbuilding trusting relationships
with tenants.
Can you share a story wherebuilding such a relationship has
maybe impacted the outcome of aproperty management situation?
Speaker 1 (08:23):
I can give you one big example.
A few years ago we had adevelopment site under our
management.
It was around 20 units andbig-size development is a
200-plus unit development siteunder our management.
It was around 20 units.
Big-sized developments is a200-plus unit development.
Actually, the development isjust finishing up now.
They started the lease up.
It's one of institutionalinvestors.
They had that lot parked withus and we had about 12 tenants
(08:46):
to buy out and finish up thesite before the construction can
take place demolitions and allthose things.
So it was back in 2021.
And we worked with thosetenants for two years before so
they knew exactly what's goingto happen.
This development is going tocome in at one point.
They will get theseterminations and they will get
bought out right.
So we had a really goodconnections with them.
(09:09):
We pretty much know everybodyon a day-to-day basis and you
know name basis.
So by the time came that weneed to terminate all the leases
and buy everybody out.
We managed to finish up all thecontracts, all the leases, in
two months right, oh, that'sreally good Without any you know
intervention from lawyers,paralegals, ltb, court, case,
(09:33):
news or newspaper or whatsoever.
So it was a very smoothtransition to close up the site,
give the site back to thedevelopers and they could build
a 200 plus rental building on it.
So that's one of our biggestwin.
We could not have done it if wedon't put effort into
developing connections with thetenants on site.
That's why we are doing twoinspections a year and we do a
(09:57):
monthly drive-by where you knowyou always can catch up with the
tenants, say how are you,what's going on, take care of
the request if they have anyrepairs or anything happening,
and once you build the bridge,it's easier to go to the next
(10:18):
side when you have to exit thatconnection.
Speaker 2 (10:19):
So eliminating surprises for the tenants in
that particular situation andpreparing them in advance for
what was to come was a big gamechanger of the outcome, whether
it was going to go good or bad.
And you did exactly, uh, theright thing by, you know,
pre-warning them and and workingwith the tenants.
Speaker 1 (10:37):
So good on you for that yeah, I mean, you know
transparency is big for us anduh, you know, if you hide the
from the tenants and you tellthem, hey, there's nothing gonna
happen, you're gonna hear foranother five, ten years and you
know they set their life andexpectation according to that.
And next week you're gonna hearfor another five, ten years and
you know they set their lifeand expectation according to
that.
And next week you're gonna sendthem or call them to the office
and tell them it's yourtermination.
That's a big disconnect, right,and that's you just having a
(11:00):
gap built which is verydifficult to connect that brings
us to our fourth question.
Speaker 2 (11:06):
Uh, now let's look at it on the other side.
As a seasoned property manager,what strategies do you employ
to maintain and enhance thevalue of the properties under
your management?
Speaker 1 (11:19):
So, properties are maintained.
You know standard maintenancefor us we do it automatically
furnace maintenance, aircondition maintenance, gutter
cleaning those ones are done onevery property automatically and
then depend on the goal of theowner, what they're looking for,
right.
(11:39):
We adjust our approachaccording to their wishes and
needs, right, and then we do theupdates and uh renovations
according to their wish.
Like, I took over one propertytoday, it's gonna be probably
with us for three years and wehave like items of six items.
Okay, I want to get this onedone, right, why?
Why is going to be doing itwhen the property is rented?
(12:01):
Of course, because it's taxbenefits.
You can expense all the upkeepwhat you are doing on a property
when it is rented out.
So it's a really win-winsituation.
And it's always a good thing toreinvest some of your rental
income into the property.
You know tax optimization aswell.
You know appreciation of theproperty right, that's a big
(12:22):
thing.
Well, you know appreciation ofthe property right, that's,
that's a big thing.
Uh, when you are, once youstart to reinvest in a property,
your appreciation is higher andthen you can force the
appreciation.
You can do a refinance if youwant to.
So there's really lots ofoptions, uh, what we can do with
enhancing properties.
We're always looking for, youknow, above grade uh
possibilities for, uh for upkeep, right.
(12:42):
So we don't want to go with thelower end of the market
solutions.
We like to go with the mediumor up, where you get your best
return on your investments,right, it could be, you know,
the changing roof could be,changing appliances could be, I
think, a new bathroom.
That's the you know wide rangeof projects, what we do for our
clients you know wide range ofprojects, what we do for our
(13:04):
clients.
Speaker 2 (13:09):
What I like about your strategy is you're not just
a you know a doer where youexecute what the property, the
owner, tells you to do andthat's it.
You actually go forward and youbring solutions, potential
solutions and options and say tothe owners these are the
options that we see it comingfor that property and what do
you want us to do?
(13:30):
And this is going to be thedifferent outcomes.
So you actually are proactivein the management and not just
reactive.
Speaker 1 (13:38):
Absolutely.
I mean, I like to be alwaysproactive, right, I like to have
the ropes in my hands and Iknow the outcome better, right?
And just give you an example,since we do the proactive
management style.
You know, this year we had oneAC breakdown, right, because we
do very diligently check themevery single year and if the AC
is end of life or something,most of the time we're catching
(13:59):
it before it's going to.
You know, just finish upworking and then you're over
there.
Okay, no air conditioning.
So we had one dcr out of 100units.
That's a pretty good number.
Same thing I can tell you fromfurnaces, right, we don't really
have fullness breakdowns middleof the winter because we do the
preventative maintenanceprogram and we can catch those
problems coming up, right, yeah,uh, if you do it diligently, a
(14:23):
15-year-old who is going to showyou in the summertime something
is wrong, and then we canintervene earlier than you know,
rather than Christmas night,somebody is calling you, I don't
have a heat, and then you haveto put them in a hotel and it's
going to cost X amount of money.
Plus, there is no elect, no age, work is working for three days
because it's a holiday season,right?
(14:44):
So there's a lot the list islong, long, long why you're
going to do property, propertymaintenance proactively versus
reactively.
Right, so it's.
The benefits are way, wayhigher than than a winning of
saving a hundred dollars on ahundred fifty dollars in an
inspection.
Speaker 2 (15:00):
Absolutely.
That brings us to our lastquestion, our fifth question.
Joseph, we're not gettingyounger.
The younger people are pushingunder us and they want to start,
maybe in property management,to take over your place.
So what advice would you giveto someone who is looking to
(15:22):
start property management?
Maybe give a few differentadvice.
What would you give to someonewho is looking to start property
management?
Maybe give a few differentadvice.
What would you give them forsomebody who's looking to start
into property management?
Speaker 1 (15:32):
I mean otherwise, I always would say start with your
values, right.
What are your values right?
That's number one thing for me.
Property management comes withintegrity, comes with
transparency, comes with honesty, right?
So those are the three bigthings for me, right?
What?
What you can bring to the table, of course, experience.
(15:53):
What you can bring to theexperience.
Are you able to pivot, are youable to find solutions, and how
is your problem solving skillsright?
Problem solving is big inproperty management.
It's very wide.
I mean many different houses,many different buildings,
different operational systemsJust a wide variety of issues
can come up that you haven'tdealt with before.
(16:14):
Even I am five years inproperty management, or I have
properties over 20 years.
Still, every day something cancome up I haven't come across
just yet, right, and then I needto learn, or I need to do the
research.
I need to find the person whocan talk to that right.
So you have to be reallyresourceful, good problem solver
and, as well, very detailoriented, right, that's.
(16:35):
That's will be the main thingas well.
Customer service skills uh,coming into, coming into play
interpersonal skills, people,people skills, right, lots of
soft skills in this business.
I would compare our positionmost of the time like a private
banker.
Right, a good private banker isreally difficult to come by,
(16:56):
but if you find a good one,you're sure you're going to
stick around with right, yeah,you want to make yourself
indispensable for your clients.
Yeah.
Speaker 2 (17:05):
Well, joseph, thank you so much for spending the
time today with us.
Uh, you brought lots ofinsights, lots of value to our
listeners and, uh, I hope thatwe will be able to talk to each
other soon again likewise thankyou for the interview have a
good day, bye-bye, thanks.
Thanks for tuning into the 5Questions Podcast.
If you enjoyed today's episode,don't forget to subscribe, like
(17:27):
and hit the notification bellon our YouTube channel so you
never miss an episode.
Stay tuned for more insightsand tips to transform your real
estate and business game.
See you next time.
And it's always a good thing to reinvest some of
your rental income into theproperty.
You know tax optimization aswell.
You know appreciation of theproperty right, that's a big
thing.
Speaker 2 (00:16):
Welcome to the 5 Questions Podcast, where we
unlock real estate and businessinsights, one question at a time
.
And business insights, onequestion at a time.
Welcome to the 5 QuestionsPodcast.
I am your host, mario Lamar,our guest on today's show.
He has been a property managerfor over 24 years, loves to
(00:43):
build lasting relationships withboth sides of tenants and
landlords.
Welcome, joseph Petrowski.
Joseph, welcome to the FiveQuestions podcast.
Thank you, mario, for having me.
Joseph, the concept of thepodcast is really simple.
I ask you five questions,either about business or real
estate, and we get straight tothe point you ready.
(01:03):
Sounds good.
Speaker 1 (01:04):
Let's go.
Speaker 2 (01:06):
Joseph, your journey in property management began at
a young age.
Can you tell us about yourinitial experiences to property
management and how it shapedyour approach to today's
property management?
Speaker 1 (01:23):
I mean, I started pretty early.
I've always been a brick andmortar guy, so I like to buy
things that I can touch and feelright.
So it's always been like thissince I was little, and I always
had the dream to own a propertyat one day, right.
So it was more than 20 yearsago when I brought my first
property.
It was a piece of land which Istill own for today.
(01:47):
I haven't built a house on itor haven't developed it, but you
never know, maybe in the future.
So that was prettystraightforward and simple and
that when I find the listingwith a realtor and then I find
the listing with an owner, so Iwent with the owner, I saved on
the realtor fees, so that was asmart move on that one.
And then a couple of yearslater I bought my first
apartment, which teach me a lot.
(02:11):
Uh, I bought it from someone Iknow from before and then I made
a really good deal, made alease back, right.
So I bought the property.
I leased it back for right awayfor a year.
But after, when the leasebackwas over, then the problem
started to happen because theproperty was not cared for and
then I had to do the renovationsand then he was not paying rent
(02:31):
for a couple of months, right.
So I right away get into themore challenging part of
property ownership, right.
So I learned pretty early notto deal with Graham family or
anybody you know, right, becausethen you have technically less
leverage to moving forward.
And after I rented the propertyout, my mom, my mother and my
(02:54):
family was helping at the time,and father and my sister with
the renovations and day-to-dayoperations.
Of course we did not have muchexperience.
I did not have experience atthe time, but it was a good
learning curve to figure it outwhat you're not supposed to do
versus what you're supposed todo.
And I had a couple of tenants inthe property.
Some of them were reallysuccessful.
(03:15):
Some of them were running intosome other problems.
In case you don't have a system, that's what we have in Canada
over here with the creditreports and background checks
and all those things.
They're not really crystallized20 something years ago in
(03:36):
hungary.
So I learned my way and thenI'm, you know, fast forward to
today.
I try to make everybody saystay away and stay safe from
those early pitfalls and earlychallenges, what I went through.
So that's my philosophy to makesure both sides are happy.
The tenants are happy in theplaces and the owners are
renting out their places arehappy so I can guide them.
Both sides and everybody have apleasant experience in the
rental market.
Speaker 2 (03:57):
So you really learned from a young age by practicing
property management.
So you bought some propertiesfirst, you experienced tenants
and that really shaped your wayinto today's property management
.
You know ways you do things.
Speaker 1 (04:16):
Absolutely.
I mean, you have to get yourown experience into the game
right, If you don't have yourown experience, you don't have
your own skin in the game.
Speaker 2 (04:24):
Yeah, it brings us to our second question and, in
your view, what are the mostmaybe common misconception about
property management and how doyou address them in your work?
Speaker 1 (04:44):
I mean property management.
In my experience it's a broadsubject.
Everybody does it in differentways.
What most misunderstandingcomes in my way, that's people
are thinking property managementis property maintenance on one
end.
Other end, people are thinkingproperty management is asset
management right, and all thosethree things are very different
things.
Asset management, propertymanagement, property maintenance
(05:05):
right, and all those threethings are very different things
.
Asset management, propertymanagement, property maintenance
right, it's interconnected butnot interchangeable, right,
right?
So that's the main thing.
So my way of handling situationslike this I always ask my
clients or future clients,what's their experience with the
real estate market?
Have they rented a place outbefore?
It's the first experience.
(05:25):
Second experience but is theirlevel of knowledge of the market
or of the situation?
And then we can level fromthere and can explain to them.
You know, as a property manager,we take care of everything what
your day-to-day operationsneeded for your property, but we
don't do any physical work,right, right, that's the big
differentiator.
Like property maintenance,they're going to do everything
(05:47):
physical.
Property management is going todo everything that's not
physical.
Asset management is going to be.
Look at the three years plans,five years plans, 10 years plans
plus 20 years, either or right.
So we need to have a goodunderstanding of the three
different parts of the businessasset management, property
management and propertymaintenance.
(06:08):
Once we level the field, thenwe can move forward, and that's
usually really helpful for bothparties.
Or younger investors ornot-so-seasoned investors,
somebody who's in the businessfor 15, 20 years or 10 years.
They will know exactly thedifferences, what's happening
and what instruction they needto give to all different people.
Speaker 2 (06:29):
So, by understanding your clients and where they came
from, their journey if they'restarting up or if they're an
experienced investor helps youset the expectations afterwards
of your clients, so that'sreally good.
Speaker 1 (06:48):
Absolutely.
I mean you need to be able tounderstand each other on a very
granular level.
Right, because propertymanagement, you know the goal is
to make everything smooth.
But sometimes you need to gointo, you know, not so pleasant
conversations or certaindifferences where they have one
understanding of a problem andthen you have to apply a
different solution right, orit's coming to an emergency.
(07:10):
It's how you handle emergenciesright.
Solution right or it's comingto an emergency.
It's how you handle emergenciesright.
And that's coming to the pointwhere some people they think,
okay, if something is wrong,you're going to go there and
you're going to fix it.
As a property manager, I don'thave the expertise or the
liability insurance for that todo it.
Let's put it that way, right?
So there's different propertymanagement companies, different
(07:30):
philosophies.
There is different propertymanagement companies, different
philosophies.
Our approach is veryprofessional.
We try to do everything by thebook and that's our standard.
Right, we only use licensedtradesmen for plumbing,
electrical appliance repairs.
Right, we only work with theright people.
We're not going to be goingwith somebody who maybe can
(07:53):
maybe have the idea how to fixsomething and maybe going to do
it right or maybe going to do itwrong.
We're going to go with theprofessional who knows exactly
what he's doing, and the resultsare there.
Speaker 2 (08:03):
It brings us to our third question and your
philosophy.
You emphasize the importance ofbuilding trusting relationships
with tenants.
Can you share a story wherebuilding such a relationship has
maybe impacted the outcome of aproperty management situation?
Speaker 1 (08:23):
I can give you one big example.
A few years ago we had adevelopment site under our
management.
It was around 20 units andbig-size development is a
200-plus unit development siteunder our management.
It was around 20 units.
Big-sized developments is a200-plus unit development.
Actually, the development isjust finishing up now.
They started the lease up.
It's one of institutionalinvestors.
They had that lot parked withus and we had about 12 tenants
(08:46):
to buy out and finish up thesite before the construction can
take place demolitions and allthose things.
So it was back in 2021.
And we worked with thosetenants for two years before so
they knew exactly what's goingto happen.
This development is going tocome in at one point.
They will get theseterminations and they will get
bought out right.
So we had a really goodconnections with them.
(09:09):
We pretty much know everybodyon a day-to-day basis and you
know name basis.
So by the time came that weneed to terminate all the leases
and buy everybody out.
We managed to finish up all thecontracts, all the leases, in
two months right, oh, that'sreally good Without any you know
intervention from lawyers,paralegals, ltb, court, case,
(09:33):
news or newspaper or whatsoever.
So it was a very smoothtransition to close up the site,
give the site back to thedevelopers and they could build
a 200 plus rental building on it.
So that's one of our biggestwin.
We could not have done it if wedon't put effort into
developing connections with thetenants on site.
That's why we are doing twoinspections a year and we do a
(09:57):
monthly drive-by where you knowyou always can catch up with the
tenants, say how are you,what's going on, take care of
the request if they have anyrepairs or anything happening,
and once you build the bridge,it's easier to go to the next
(10:18):
side when you have to exit thatconnection.
Speaker 2 (10:19):
So eliminating surprises for the tenants in
that particular situation andpreparing them in advance for
what was to come was a big gamechanger of the outcome, whether
it was going to go good or bad.
And you did exactly, uh, theright thing by, you know,
pre-warning them and and workingwith the tenants.
Speaker 1 (10:37):
So good on you for that yeah, I mean, you know
transparency is big for us anduh, you know, if you hide the
from the tenants and you tellthem, hey, there's nothing gonna
happen, you're gonna hear foranother five, ten years and you
know they set their life andexpectation according to that.
And next week you're gonna hearfor another five, ten years and
you know they set their lifeand expectation according to
that.
And next week you're gonna sendthem or call them to the office
and tell them it's yourtermination.
That's a big disconnect, right,and that's you just having a
(11:00):
gap built which is verydifficult to connect that brings
us to our fourth question.
Speaker 2 (11:06):
Uh, now let's look at it on the other side.
As a seasoned property manager,what strategies do you employ
to maintain and enhance thevalue of the properties under
your management?
Speaker 1 (11:19):
So, properties are maintained.
You know standard maintenancefor us we do it automatically
furnace maintenance, aircondition maintenance, gutter
cleaning those ones are done onevery property automatically and
then depend on the goal of theowner, what they're looking for,
right.
(11:39):
We adjust our approachaccording to their wishes and
needs, right, and then we do theupdates and uh renovations
according to their wish.
Like, I took over one propertytoday, it's gonna be probably
with us for three years and wehave like items of six items.
Okay, I want to get this onedone, right, why?
Why is going to be doing itwhen the property is rented?
(12:01):
Of course, because it's taxbenefits.
You can expense all the upkeepwhat you are doing on a property
when it is rented out.
So it's a really win-winsituation.
And it's always a good thing toreinvest some of your rental
income into the property.
You know tax optimization aswell.
You know appreciation of theproperty right, that's a big
(12:22):
thing.
Well, you know appreciation ofthe property right, that's,
that's a big thing.
Uh, when you are, once youstart to reinvest in a property,
your appreciation is higher andthen you can force the
appreciation.
You can do a refinance if youwant to.
So there's really lots ofoptions, uh, what we can do with
enhancing properties.
We're always looking for, youknow, above grade uh
possibilities for, uh for upkeep, right.
(12:42):
So we don't want to go with thelower end of the market
solutions.
We like to go with the mediumor up, where you get your best
return on your investments,right, it could be, you know,
the changing roof could be,changing appliances could be, I
think, a new bathroom.
That's the you know wide rangeof projects, what we do for our
clients you know wide range ofprojects, what we do for our
(13:04):
clients.
Speaker 2 (13:09):
What I like about your strategy is you're not just
a you know a doer where youexecute what the property, the
owner, tells you to do andthat's it.
You actually go forward and youbring solutions, potential
solutions and options and say tothe owners these are the
options that we see it comingfor that property and what do
you want us to do?
(13:30):
And this is going to be thedifferent outcomes.
So you actually are proactivein the management and not just
reactive.
Speaker 1 (13:38):
Absolutely.
I mean, I like to be alwaysproactive, right, I like to have
the ropes in my hands and Iknow the outcome better, right?
And just give you an example,since we do the proactive
management style.
You know, this year we had oneAC breakdown, right, because we
do very diligently check themevery single year and if the AC
is end of life or something,most of the time we're catching
(13:59):
it before it's going to.
You know, just finish upworking and then you're over
there.
Okay, no air conditioning.
So we had one dcr out of 100units.
That's a pretty good number.
Same thing I can tell you fromfurnaces, right, we don't really
have fullness breakdowns middleof the winter because we do the
preventative maintenanceprogram and we can catch those
problems coming up, right, yeah,uh, if you do it diligently, a
(14:23):
15-year-old who is going to showyou in the summertime something
is wrong, and then we canintervene earlier than you know,
rather than Christmas night,somebody is calling you, I don't
have a heat, and then you haveto put them in a hotel and it's
going to cost X amount of money.
Plus, there is no elect, no age, work is working for three days
because it's a holiday season,right?
(14:44):
So there's a lot the list islong, long, long why you're
going to do property, propertymaintenance proactively versus
reactively.
Right, so it's.
The benefits are way, wayhigher than than a winning of
saving a hundred dollars on ahundred fifty dollars in an
inspection.
Speaker 2 (15:00):
Absolutely.
That brings us to our lastquestion, our fifth question.
Joseph, we're not gettingyounger.
The younger people are pushingunder us and they want to start,
maybe in property management,to take over your place.
So what advice would you giveto someone who is looking to
(15:22):
start property management?
Maybe give a few differentadvice.
What would you give to someonewho is looking to start property
management?
Maybe give a few differentadvice.
What would you give them forsomebody who's looking to start
into property management?
Speaker 1 (15:32):
I mean otherwise, I always would say start with your
values, right.
What are your values right?
That's number one thing for me.
Property management comes withintegrity, comes with
transparency, comes with honesty, right?
So those are the three bigthings for me, right?
What?
What you can bring to the table, of course, experience.
(15:53):
What you can bring to theexperience.
Are you able to pivot, are youable to find solutions, and how
is your problem solving skillsright?
Problem solving is big inproperty management.
It's very wide.
I mean many different houses,many different buildings,
different operational systemsJust a wide variety of issues
can come up that you haven'tdealt with before.
(16:14):
Even I am five years inproperty management, or I have
properties over 20 years.
Still, every day something cancome up I haven't come across
just yet, right, and then I needto learn, or I need to do the
research.
I need to find the person whocan talk to that right.
So you have to be reallyresourceful, good problem solver
and, as well, very detailoriented, right, that's.
(16:35):
That's will be the main thingas well.
Customer service skills uh,coming into, coming into play
interpersonal skills, people,people skills, right, lots of
soft skills in this business.
I would compare our positionmost of the time like a private
banker.
Right, a good private banker isreally difficult to come by,
(16:56):
but if you find a good one,you're sure you're going to
stick around with right, yeah,you want to make yourself
indispensable for your clients.
Yeah.
Speaker 2 (17:05):
Well, joseph, thank you so much for spending the
time today with us.
Uh, you brought lots ofinsights, lots of value to our
listeners and, uh, I hope thatwe will be able to talk to each
other soon again likewise thankyou for the interview have a
good day, bye-bye, thanks.
Thanks for tuning into the 5Questions Podcast.
If you enjoyed today's episode,don't forget to subscribe, like
(17:27):
and hit the notification bellon our YouTube channel so you
never miss an episode.
Stay tuned for more insightsand tips to transform your real
estate and business game.
See you next time.
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