2/6/2021 Saturday

-I enjoy the process of renovating worn out houses, and it’s rewarding work physically, mentally and financially. I worry that the modern “Influencer Guru”, money focused standard operating procedures are part of the growing financial gap between the rich and the poor. The big companies that buy in mass, and hire everything 3rd party, tend to have unfavorable reviews. All the benefits that come from scale go disproportionally to the already rich investor, while seemingly getting no more efficient at maintaining the home. It is also impossible to have any personal relationship with the tenant. It's bad enough that most people feel like an expendable spreadsheet number at work, but to carry that over to home life, seems like a road to ruin. It’s no surprise that subreddits are full of Landlord vs Tenant drama. I know there are plenty of wholesome relationships, but I would guess that’s predominately a mom and pop advantage. 

-What if we approached this relationship from a different angle? One that’s focused on partnership in the continued effort to maintain and add value to the property and surrounding community. Management of a property makes most effective sense at the most local level. A mom and pop that live in the adjoined duplex likely have a quicker response to property issues, and more incentive to fix the problem right. If we go another step more local, why don’t more business plans leverage the tenant who actually lives on site? It seems like most functions of a property management company can easily be itemized and taught to anyone. Add a list of preferred subs to handle anything outside the proven handiness of the tenant.

-Expanding on this tenant managing partner idea, what if we created a new type of apprentice program. You could start this at the renovation stage or the rental stage. Compensate with labor wages as well as investment buy in credit during the reno. Continued labor wages for work exceeding normal responsible living expectations (doing dishes, laundry, etc.). Tools, training, guide, and budget to properly care for the property. Longer term tenants are rewarded with discounts for complete self management, and potential equity stake depending on market values and move out repair costs. Also potential for labor wages providing property management services to neighbors, or other projects within a given rental portfolio.

-App thought: Simple front page view, display/ link equity (amortization schedule), repairs and maintenance budget (link to operating ledger), CapX budget, To-Do list (link to group work order requests).