Stop Being a Property Manager

Setting appropriate boundaries with property owners is the most important skill in rental property business management.

INSIDE THIS ISSUE

• Main Feature: Setting Boundaries Both Your Team and Owners Will Love

• Understanding Client Psychology: What Owners Really Want

• Case Study #1: HOA Communications Policy

• Case Study #2: Vendor Management & Multiple Quotes

• The 4 Big Picture Outcomes: Refocusing Owner Attention

• Practical Scripts: Retaining the "Locus of Authority"

• Team Training Corner: Role-Playing Exercise Results

The Art of Setting Boundaries

Property management is a service business built on trust. Ironically, one of the most important ways we build trust is by being clear about what we don't do. When we promise only what we can deliver consistently, we establish ourselves as reliable partners in our clients' wealth-building journey.

The challenge? Explaining policy limitations without sounding like we're making excuses or avoiding work.

The positive, affirming way to communicate boundaries is: 'We don't do this, but it's in your best interest. Here's why.' This approach transforms a potential negative into a demonstration of your professionalism and client-centered thinking.

Understanding What Owners Really Want

Behind every owner request is an underlying need that may not be explicitly expressed. What most owners truly want isn't to micromanage your processes—it's to feel confident enough in your abilities that they can comfortably step back.

What owners really want is for us to demonstrate enough character, competence, confidence, and control that they are happy to relinquish control of the details. They want reassurance that their investment is in capable hands.

When owners become overly involved or make requests outside our service model, it's often driven by emotional needs rather than rational business decisions. They may be experiencing anxiety about their investment, uncertainty about industry standards, or simply a need for control during stressful situations.

Case Study #1: HOA Communications Policy

Most of us have learned the hard way that serving as the primary point of contact for HOAs can create significant liability and service consistency issues. Let's examine how to explain this policy limitation effectively through a recent role-play scenario between a property manager and a prospective client named Bobby.

Owner: "You said you guys are a premium service provider and that’s why I’m paying you more than the guy down the street. Now you’re telling me I have to be the primary point of contact with my HOA?? Why? I thought that's your guys' job."

My Response: "Absolutely. Fair question, Bobby. Thank you for asking that. Yes, we want to take as much off your plate as possible and make owning a rental as stress-free as possible. A big part of that is being super clear about what we will do and what we will not do.

Years ago, we did take on the obligation to be the point of contact with HOAs. Here are some challenges we faced and why we shifted that policy:

We had two cases where the HOA claimed they sent us coupon books for the year. We never received them, the HOA dues changed, and we continued paying the lower amount without receiving any violation notices. Both situations escalated to legal processes with huge balances owed and potential property liens. We realized we did not want to put our clients in that position.

Additionally, when trying to contact HOAs on behalf of clients, we often found ourselves stonewalled or told directly, 'We don't answer to you. Our only legal obligation is to the owner.'

Because of this significant liability and the inconsistency in how HOA companies interact with management firms, we developed our current policy. We standardize our processes to achieve high-quality service outcomes consistently. We don't commit to responsibilities that have a high likelihood of failure and causing you to lose trust in us."

Note what makes this response effective:

1. It acknowledges the question as fair and valid

2. It frames the policy in terms of client protection ("we did not want to put our clients in that position")

3. It uses specific examples from experience

4. It connects the policy to the broader goal of maintaining trust

5. It emphasizes consistency and quality of service

The Client-Centered Reframing Technique

Notice how the explanation avoids self-centered reasoning. As Mark points out in our training session, clients "don't want to just hear about how it makes our lives easier. That doesn't make any sense. That's not a value to them."

Instead, every policy limitation should be explained through the lens of client benefit:

❌ "We don't do that because it's really hard."
✅ "We want to uphold the highest level of trust with you."

❌ "That creates too much liability for us."
✅ "We're focused on your long-term wealth building, which requires consistent reliability."

❌ "Our team doesn't have time for that."
✅ "We standardize our processes to ensure quality outcomes for you."

Case Study #2: Vendor Management & Multiple Quotes

Let's examine another common scenario: an owner requesting multiple quotes for a relatively small maintenance issue.

Owner: "Your guy's telling me I need to replace a toilet. I don't think we need to. I want you to get a couple of vendors out there and give me a couple of different opinions."

Property Manager's Response: "I think I understand the outcome you're going for. You want to make sure that your property is properly maintained at a reasonable cost, and it's functional for the resident. Are we on the same page?"

[After confirmation]

"I have a process that will get us to that end, but I'd like to do it my way. Can I get your support on that?"

[Owner pushes back]

"I appreciate you asking for a couple quotes. We have found that over the last 14 years of doing this, one of the most important things we can do for you is to foster really strong partnerships with vendors. And one of the elements of fostering strong partnerships with vendors is that we don't abuse vendors with multiple quote requests for small dollar items. But that doesn't mean that we can't still get you ideal pricing, prompt service, quality work. And so that's what I'm going for. But I do need your support for me to follow my process."

This approach follows a critical pattern:

1. Connect with the outcome the owner is seeking and confirm alignment

2. Request permission to take back the "locus of authority"

3. Outline the principles that guide your process

4. Ask for their support based on your demonstrated expertise

The 4 Big Picture Outcomes

When owners get caught up in the details, it's our job to refocus their attention on what truly matters. We encourage clients to judge our performance based on four key metrics:

1. Occupancy rate: Are we keeping their property leased?

2. Expense ratio: Are we managing costs effectively?

3. Strong rents: Are we maximizing their income?

4. Renewals: Are we retaining quality tenants?

By consistently directing owners' attention to these big-picture outcomes, we help them understand that occasional maintenance issues or procedural disagreements are less important than the overall performance of their investment.

Building Trust Through Boundaries

The most successful property management relationships are built on clear expectations and delivered promises. By explaining your boundaries in terms of client benefit and connecting them to your broader mission of supporting their wealth-building journey, you transform potential disappointments into demonstrations of your professionalism.

For particularly persistent owners who struggle to relinquish control, consider this powerful statement: "I can promise you that if you give me your support in doing this my way, that if after the dust settles, we agreed that I was incompetent in the execution of my job, I will pay you out of my pocket for the money you lost due to my incompetence. That's how confident I am that we do a good job, and that's how sincere I am with asking for your trust."

Remember, we're not just managing properties—we're building trust that can last decades.

TEAM TRAINING CORNER

Role-Play Exercise: Retaining the Locus of Authority

Try conducting the following role-play exercise with your team:

1. Have one team member play a demanding owner with an unreasonable request

2. Have another team member practice the four-step response pattern:

   • Restate their request in terms of the ‘why’ behind it

   • Resonate with the ‘why’ (shared outcome)

   • Ask permission to be direct (if dealing with an aggressive owner)

   • Explain the principled thinking behind your policy and process

   • Demonstrate how this approach benefits the owner in the long-run

   • Request support for your approach

3. Evaluate responses based on:

   • Did they successfully redirect the conversation to the "big picture outcomes"?

   • Did they maintain their authority while respecting the owner's concerns?

   • Did they demonstrate confidence in their expertise?

   • Did they secure the owner's support for their approach?