How I Did It: Lisa Wise Discusses the Growth and Expansion of Nest DC

How I Did It: Lisa Wise Discusses Property Management Growth

Today on The Property Management Show, we’re talking to Lisa Wise, who runs a boutique property management company called Nest DC. She spoke at PM Grow Summit in 2017, and she’ll speak again in 2019, so if you’re curious about the conference or you haven’t bought tickets yet, go to pmgrowsummit.com. It’s the perfect event for property management entrepreneurs who are looking to improve business outcomes.

In our How I Did It series, we’re talking to successful entrepreneurs about the mistakes they made as they were growing their businesses.

Introducing Lisa Wise and Nest DC

Nest DC is six months from turning 10 years old. The company has gone from being the new kid on the block with a novel marketing plan and way of doing business to one of the largest management companies in the city of Washington, D.C. for single-family rentals.

The company is currently looking at ways to build on their reputation and introduce new income streams while helping the community. That energy keeps the staff engaged and excited, and growth mode requires inspiration and excitement. Nest has developed a sister company called Spruced DC, which handles condo and building management for HOAs and owners. The newest brand coming from Nest is Starling DC, which handles turnover and light construction. So, even though Nest is turning 10, they always feel like they’re in start-up phase.

But, they’re not in a start-up phase because they’re earning over $3 million in revenue.

Measuring the Property Management Growth Curve

Nest DC has been on the Inc. 5000 list, which was a big win. However, Lisa points out that you reach a stage where you can’t have hockey stick growth any longer because the portfolio just gets too big. When a property management company moves from 100 to 200 properties, it’s an inspiring math equation. But, you cannot go from 800 properties to 1,600 properties in a year. It’s simply unsustainable. 

Leveling out can be good. A business that keeps growing isn’t necessarily thriving. You need healthy growth. Giant profit numbers year after year are hard to come by in a service-based business. And, the core business clients are important and need your attention.

Don’t seek growth just for the sake of growing.

For Nest DC and Lisa, growth right now means allowing the leadership team to take over more of the day to day business operations so that Lisa can be more visionary. She feels lucky that she’s built a good senior team who is willing to continue taking on new challenges.

Growth Can Mean Complementary Business Units (CBUs)

To really have a healthy and growing business, you need a profitable company. One way to increase profits and growth is to introduce CBUs. Maybe that’s a maintenance division or a sales division within a property management company. The goal, according to Lisa, is to use those additional businesses not as independent companies that are predatory and focused solely on profit, but to use those business units to improve and develop relationships.

While you’re building CBUs, it’s important not to sacrifice what you do best just to do something new.

Property management companies often make this mistake. There’s a shiny ribbon of a renovation business or a sales business, but suddenly you cannot get your lease done or your basic customer service needs met. Don’t threaten or risk your core business.

You can monetize your current relationships with customers without being predatory. People trust the relationships you have.

Here’s an example of how Nest DC made this work with their new company, Starling DC:

When a property owner comes back to occupy the home after being away, the Starling DC business can make sure the space is ready when they get back. Nest is losing a door because that property no longer needs to be professionally managed. But, they’ve made a grab for some cash flow on the way out the door.

That’s pretty smart.

In addition to starting two new brands, Nest also provides some consulting services that build additional income. They do expert witness work in court, and they consult with small condo associations who cannot afford full-time management but need help with some of the shared responsibilities like roofs and taxes.

Building long term relationships is the best way to cash flow your company, especially when you’re adding extra services and businesses. 

There’s a window of opportunity for CBUs, and a growth-minded property management company will identify that window and act.

Learning from Mistakes: Liability and Insurance

Lisa’s main mistake while growing her business was legal exposure and not being able to identify and address risk before getting into trouble. Like many entrepreneurs, she and her team pieced a lot of those systems-based regulatory risk management activities together without investing in good legal and accounting advice right away. There were several points when Lisa realized she should have had more insurance. There was a situation in 2013 when her company was hammered with a lawsuit based on lead paint exposure. Lisa acknowledged that she made a mistake and didn’t do her due diligence with a vendor.

No one was truly at risk, and it wasn’t the end of the world, but the company was at risk. Lisa had to detour from growing her business to deal with this conflict. Property management can be a risky business. The more visibility and the more resources you appear to have, the deeper people think your pockets are. So, spending money on legal advice earlier is something Lisa wishes she had done to better protect her company.   

Lesson: Don’t have a friend write your contracts. Paying legal bills doesn’t feel good, but you need that expertise and that protection.

Growing from 0 to 100 Units: Marketing and Systems

Confidence and belief in your services is the best thing to propel you from zero to 100 units. Lisa was telling everyone Nest DC was the best in the business. They built a reputation and became visible in their market. Creating an attractive brand and using every resource that was free and available started the marketing and branding that led them to growth and success.

They used social media and took advantage of every networking opportunity that was available. They went to open houses every weekend with a gift bag and introduced themselves to real estate agents. That provided free one-on-one face time with prospective clients. That’s the marketing they used to get to 100 doors. It was all about gathering clients one unit at a time.

What really got them on the map was a “Best Of…” contest in the DC City Paper.

They only had between 18 and 30 properties, but they were voted Best Property Management Company in DC. This got them a lot of visibility and an instant reputation for excellence. Since then, they’ve been in the top three every year.

Operationally, Lisa didn’t have a lot of structure in place. Whoever answered the phone was the team member who took care of the inquiry or the problem. There were five people on staff, and Lisa wasn’t earning a salary.

Next Stage Property Management Growth: From 100 to 300 Properties

Systems became incredibly important in the journey from 100 to 200 properties. At this point, you cannot simply keep keys in a box. You need to organize and track the portfolio of properties you’re managing. Nest DC began working with Appfolio, and having a property management software that was aligned with their business model was exactly what they needed.

The volume became a driving force in getting everything systemized and operationalized. Like every other property management business owner, Lisa learned that what works at 50 units doesn’t work at 200 units.

Software is only as good as the user is at using it, and the team had to make sure everyone was clear on roles and how to use their software. They had to come up with some best practices and standard operating procedures. They embraced consistency and they reduced risk. 

Employees were free to do their best work on the confines of an endless beach. Appfolio gave Lisa’s company the sandbox to build their practices around. Sometimes, they still felt like they were on that endless beach. But, they had better strategies and solutions were easier to come up with.

The marketing strategy didn’t change much, they just did more of it. They continued getting the brand out there and they kept participating in the industry. They did lot of blogging and made an effort to comment on the social media posts of other businesses. They kept doing the open house visits and they began participating in roundtables. Professional affiliations were important, and Nest DC sponsored different community events. They did everything they could to become visible in the community.

Beyond Property Management Growth: From 300 to 500 Properties

Departmentalizing became the most significant part of the transition as the company grew to over 300 units. The company had about 12 employees, and there needed to be more structure around a finance department and a leasing team. Then, they developed a maintenance team. There was more clarity around how those departments worked, and investments were made in training people.

Internal culture became important, and there was an increase in salaries because longevity was the result they wanted. Lisa wanted to invest in people who aligned with the company’s values. That element helped the growth continue.

Every year, the company takes a giant step back to fine tune what they’re doing. Internally, if there’s something an employee doesn’t like doing, the advice is to find a better way to do it. Sometimes, the things you do aren’t necessary, but they simply become the fabric of your company. Edit out whatever you can. Take advantage of innovation. Scalable growth means delivering the best services and products without killing yourself.   

Over 1,000 Properties: How do Things Change?

Leadership makes the difference when your company jumps to over 1,000 doors. There’s not necessarily a big leap in how things are done, but there needs to be a shift in who is doing what. More leadership, stronger managers, and people for staff to look up to are critical. You need to invest in a larger pool of people. A sustainable staffing model is essential. You can refine your systems and get better at what you do, but what you really need are decision makers. 

Encourage your staff members to build on their strengths and develop their leadership. Lisa doesn’t know how to lease properties or screen tenants anymore. That’s a good thing. She’s focused on property management growth and developing the next brand.

Reputation is the next thing for Nest DC to conquer. Their rating on Yelp is lower than it should be, mostly because filtered reviews are a problem. A handful of the negative reviews are minimal compared to the majority of four or five star reviews, but those are the ones that get the most attention. Building a better reputation online will be the company’s focus in 2019. They will keep working with their survey system and they’ll be more proactive about getting happy customer to share their positive experiences.

We look forward to talking more with Lisa at PM Grow, and if you have any questions about what you have heard or read – contact Alex and Fourandhalf.

Alex Osenenko

About Alex Osenenko

Alex’s professional mission in life is to help small businesses grow and thrive. Alex is the President and CEO of Fourandhalf.com and a Co-Founder of the PM Grow, Inc. His business philosophy is simple: Happy Customers are created by Happy Employees, which results in Happy Shareholders. Alex's deep commitment to entrepreneurship and improving the lives of small business owners everywhere empower him to host “The Property Management Show” bi-weekly Podcast and speak internationally on the subjects of Growth, Marketing, Sales, and Entrepreneurship.

Leave a Reply

Request a Free Website Consultation

Estimate ROI (Return On Investment)

Desired Growth (# of properties) :
Average Monthly Rent :
Annual Contract Value: $0
Customer Lifetime Value: $0
Estimated Annual Profit: $0
Estimated Lifetime Profit: $0
Estimated Portfolio Value Upon Sale: $0

How we got these numbers

• Annual Customer Value (8% of average rent multiplied by 12)
• Customer Lifetime Value (4 multiplied by ACV)
• Estimated Annual Profit (at 20% of ACV)
• Estimated Lifetime Profit (at 20% of LCV)
• Estimated Portfolio Value Upon Sale (1.2 times ACV)

WEBSITE CLIENT REVIEW

Experienced a 183% increase in website owner leads compared to previous site

“I love our OnePartner website and have seen a significant increase in engagement with our prospective clients. The leads are better quality and higher quantity which allows our business development manager to close more contracts.”


                            – Jock McNeill, Owner of Alliance Property Management

REQUEST A FREE CONSULTATION


  • This field is for validation purposes and should be left unchanged.
SCALE MARKETING CLIENT
“Fourandhalf has been the cornerstone of our marketing program. They are easy to work with and produce measurable results. Every marketing dollar is important to us and Fourandhalf makes our budget work for us.”
– Danielle Miner, Owner Oak Trust Property Management

FREE MARKETING CONSULTATION


  • This field is for validation purposes and should be left unchanged.
ONEPARTNER CLIENT REVIEW

Experienced a 190% increase in website owner leads compared to previous site

“We are only a few months in and the decision to switch to the OnePartner platform is already paying dividends. Our inbound leads have significantly increased and perhaps more importantly, we can now actually measure the effectiveness of our campaigns and 3rd party ads. I highly recommend the OnePartner team.”

                    – Andy Moore, Owner of Gulf Coast Property Management

REQUEST BUSINESS REVIEW


  • This field is for validation purposes and should be left unchanged.
Fill out my online form

Alex Osenenko
President and CEO

Alex’s professional mission in life is to help small businesses grow and thrive. He is the President and CEO of Fourandhalf.com and is serving his 5th year on the Board of Directors for CALNARPM.

After spending 9 years in the trenches with his property management clients, Alex draws on his experience to host “The Property Management Show” Podcast and co-authors a weekly Property Management Blog on Fourandhalf.com. Alex has extensive experience speaking for various NARPM events at the local, state, regional and national level.

Alex is a graduate of San Francisco State University with an Electronic Commerce Systems Degree. His business philosophy is simple: Happy Customers are created by Happy Employees, which results in Happy Shareholders. Alex serves on the Board of Directors of CALNARPM (California Chapter of National Association of Residential Property Managers) and hosts a Podcast “The Property Management Show“, available on iTunes.

 

John Bykowski
Chief Operating Officer

After graduating from the University of Michigan with a film degree, John proceeded to do everything but. During his career, John has specialized in operations and has developed processes for small companies in diverse industries, such as bleeding-edge marketing technology, social networking, trade shows and exhibitions, and cloud software. John and Alex had worked together previously, and when he needed someone to help take Fourandhalf to the next level and beyond, Alex brought in John as his first employee, and later, business partner.

In addition, now that he’s using his film school know-how to help property managers look their best in their blogs, his mom no longer feels his degree was a complete waste of time.

Danny Morris
Director of Account Management

Born in Australia and growing up in Israel, Danny has spent a lot of time traveling the world between those two places. After completing his military service in Israel, Danny began following his biggest passion, writing, which he discovered while backpacking South America and publishing his first book.

When it was time to unpack, he returned to Australia to complete his Journalism studies amongst the beaches of sunny Perth. Danny is a huge online fan and after working in a number of related jobs, he finally gets to combine his two favorite things, working with media and people.

Marina Osenenko
Product Manager

Marina draws upon her real estate, business operations and customer service expertise for Fourandhalf. Her favorite part of being with Fourandhalf is the opportunity she has to really get to know our clients, build professional customer relationships and truly be part of a team that assists in their success.

Her time away from work is happily spent watching her children grow up and attempting to keep up with them! Any spare moments beyond nurturing her children are filled with hiking, spending time with friends, exploring the Bay Area and squeezing in a non G-rated movie every now and then.

Marie Liamzon
Product and Marketing Manager

Before joining Fourandhalf, Marie worked for one of the largest banks in the world. She took on different roles, but couldn’t find what she was looking for. She pursued a variety of side projects until she finally decided it was time for a career change.

Marie is very passionate about helping people and learning new things. In her spare time, you might catch her exploring new places and taking far too many pictures.

Kyle McLean
Customer Success

Born in San Diego County, Kyle McLean has since migrated to the Oakland woods. A fan of tall trees and tall tales, he holds a bachelor’s degree from the creative writing program at the University of California, Riverside and is a licensed California Certified Shorthand Reporter.

After a few years as a freelance court reporter, Kyle has joined Fourandhalf for an opportunity in sales and digital marketing. In addition to reading and writing, his hobbies and interests include gardening, hiking, soccer, coffee brewing, and craft beers.

Karen Wyle
Account Management

Originally from the Philadelphia area, Karen moved eight times in seventeen years all over the East Coast and to the Midwest before settling here in Northern California six years ago. She is an alumna of Brandeis University with a BA in American Studies and earned a MBA in Marketing Management from Indiana University in Bloomington. Karen’s business career has been well-rounded, with experience including advertising, direct marketing, corporate retail, product management, new product development, and new customer generation. Beyond an office setting, she has been thrilled to volunteer her time giving back to the community with KPMG’s Family for Literacy, at her daughter’s school, and as a Girl Scout Troop Leader. Karen enjoys music, good food, traveling to new places, completing jigsaw puzzles, meeting people and making connections.

Karen became a part of Fourandhalf’s Account Management team in 2016, relaunching her marketing management career after a pause to raise her family. She is excited to rejoin the business world and to work with such a strong marketing management team.

Paige DeRuyter
Account Management

Paige graduated from Chico State University with a degree in Journalism. Her favorite part of working at Fourandhalf is helping clients create and produce educational blog content to grow their business. She is an avid sushi enthusiast who enjoys riding her bike and watching college football and in her free time.

Nissim Boozaglo
Web Hosting Support

After working as a Radioshack store manager, Nissim decided to change his career path and pursue his passion for music production by getting his B.A.S. from Expression College for the Digital Arts. Nissim has a beautiful 8-year-old girl and loves cooking delicious homemade food and going camping with her! At Fourandhalf, Nissim is responsible for the implementation of the clients’ Landing Pages and Google Adwords campaigns.

Theresa Barnes
Campaign Director

Theresa Barnes was born and raised in the Bay Area and graduated with her Bachelors Degree in Communications Studies at San Francisco State University. She worked in aviation at a private FBO for 3 years, and other industries, before joining the Fourandhalf team. She finds a balance between being a young mother, work, and living a healthy lifestyle outside of work by staying as active as possible. She is dedicated to customer satisfaction and having a great work ethic.

Brittany Stephens
Campaign Director

Brittany recently moved to the Bay area after graduating from California State University Chico with a degree in Business Marketing. She is known for her excellent communication, customer service skills, and shameless nerdyness. Her passions include: music, tabasco, Lord of the Rings, and the Golden State Warriors.

Logan Jones
Business Development

After graduating from CSU Chico with a Degree in Business Marketing, Logan moved back to the East Bay and pursued a career in sales. With an attention to detail and a relentless drive, he strives to improve himself and his passions each day. When not at work Logan enjoys playing guitar and writing songs, and occasionally performing around the Bay Area. He is an avid sports fan keeping up with everything SF Giants, 49ers, Cal Bears, and Golden State Warriors.

Hope Lumbley
Account Management

Hope recently moved to the Bay Area after graduating from Chico State University with a degree in Journalism. She is coffee crazed, dog obsessed and hopes to visit all National Parks. One of the greatest times in her life was when she lived abroad in Costa Rica and hopes to travel more of Central America in the future. She feels blessed to work for a company who supports her love for travel and the need to learn more about what the world has to offer.

Fill out my online form

Ebook Download

Top