Our guest on The Property Management Show today is the legendary Deb Newell, of Real Time Consulting Services. 

She has a lot of experience as a consultant and a property management business owner, so we wanted to get her thoughts on the state of the industry and what property management companies need to do to prepare themselves for the future.

Deb Newell: A Background

Deb began renovating homes as a hobby in 1998. That grew into buying rental properties, which was a matter of wanting to get out of debt. This was the best way for her to do it, so she partnered with someone and they bought property, did all the work to renovate it, and then sold the home. Deb says she learned a lot about maintenance and she made a lot of mistakes. 

She kept buying more properties and eventually instead of selling them, she began to hold onto those assets and rent them out. 

It escalated, and that’s because she enjoyed the recurring income. 

At this point, Deb wasn’t thinking too far ahead. She didn’t even realize there were resources out there that could help her do this more profitably. But, she treasures the mistakes that she did make because they made her a smarter business owner today. 

From there, she became a third-party property manager and from the beginning understood the importance of setting boundaries. She took on owners that she probably should not have, but she learned from those experiences, too. And then she kept growing. 

Deb managed properties for over 20 years. Then, personal circumstances required her to sell her company. In 2013, she began a consulting company because so many people had been asking her to help with their businesses. She grew organically, went back to school for her MBA, and is now in a Ph.D. program. 

Her goal is to keep expanding so she can help others. 

Real Estate Recessions and Property Managers

Deb was in Minneapolis in 2007 to 2009, when the last recession hit the real estate industry. 

She points out that these downturns can sometimes be a win for the property management industry because people always need a place to live. What matters is how you create the narrative. 

Recessions are a good time to consider investing in the market. This is the story you need to tell when you’re protecting and building your business. What we learned from the last recession is that markets bounce back. Maybe not to the level that we would want, but it’s an opportunity for property managers. 

Owners are not equipped to manage themselves. 

Or, they do a poor job of it. 

Rising Regulations and the Need for Professional Property Management 

Deb believes the industry is in a stronger position now, thanks to the regulations and new laws that have arrived over the last 10 years. This is especially obvious in states like California, Oregon, and Washington. It’s painful for property managers to deal with these laws, but it positions you well. You’re the experts. You’re able to capture new business because dealing with these regulations is a huge headache and a big risk for landlords and investors. 

Owners don’t want to make mistakes. They don’t want to make bad decisions. Property managers who are prepared to help them and make sure their needs are met will win new business, especially and even during a recession. 

Show these potential clients what you can do to help with licensing and rent control and eviction. 

You need to know what’s coming, as a property management business owner. Always be aware of the legislation that’s being proposed. You have to understand what’s going on in order to paint yourself as an expert. Even locally, make sure you can speak intelligently on what new laws mean. Sometimes, inspectors don’t always understand what’s changed when new regulations ar...