Stress-free Property Management, with Jon Michaels of Renters Warehouse
In today’s show, we interview Jon Michaels, VP of Portfolio Services at Renters Warehouse. Renters Warehouse is America’s largest, full-service real estate firm for Single-Family Rental homes. They offer
Where Investing Fits into the Cash Flow System
Investing in cash-flowing assets is a huge part of building time and money freedom. But, as important as cash flow income is, it’s just one step in the bigger journey.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Who Is Jon Michaels?
Jon Michaels is a Vice President with Renters Warehouse, the first national real estate investment brand. He’s been serving owners and operators of investment real estate for nearly a decade.
Born and raised in Kansas City thirty-two years, Jon attended Washburn University. He went on to earn his MBA at Baker University and then got his real estate license shortly after.
Jon and his family relocated a few times with a company providing advertising solutions to multi-family owners and operators. Since 2017, he calls South Carolina home with his amazing wife, Jen, and three beautiful daughters, Stella, Elsie, and Lucille.
In 2017, Jon Michaels joined a software company that served single-family property managers. He then joined Renters Warehouse in 2019 as a member of their portfolio services team. Jon is a licensed broker, serving investors who both buy and sell portfolios of single-family rental homes nationally.
You can connect with Jon Michaels on most social platforms:
About Renters Warehouse
Renters Warehouse has operations in 40 US markets. They manage more than 22,000 single-family rental homes for approximately 15,000 landlords and institutional investors.
Last year, the company acquired Own America, the first online single-family rental investor portal. The program that was built for Wall Street investors to acquire SFR portfolios has now become available for free to the average savvy RE investor.
The Renters Warehouse Investor
Renters Warehouse serves a few client profiles today: the accidental landlord, the savvy real estate investor, and the large funds deploying $20-$30M in capital per month in acquiring portfolios of SFR’s. Most recently, they’ve seen the rise of the midsize investor who owns anywhere between 25 – 2000 homes.
According to Noel Christopher of Renters Warehouse, the savvy real estate investor who owns 10 or fewer homes accounts for nearly 90% of the ownership of our industry’s inventory today.
Property and Portfolio Inventory
Renters Warehouse has portfolios of SFR’s exclusively listed mainly in secondary markets like Columbia, SC; Cape Coral, FL; Lafayette, LA; Memphis, TN; and Indianapolis, IN. New inventory is updated daily.
Net yields on these marketed portfolios range from 3 to 10%. This beats a lot of financial instrument returns that investors find today.
Investors can register for a free account and enter their real estate investment strategy and preferred buy-boxes. Then, they’ll be successfully matched with SFR investment opportunities
Renters Warehouse sources the listed single-family rental properties for sale on our investor marketplace. This includes recently syndicating the local MLS in the majority of their 40 markets where Renters Warehouse has boots on the ground. Investors can find retail listings with the same ROI data they’re used to seeing.
Renters Warehouse provides professional property management services in all 40 markets where they have boots on the ground.
They offer four easy steps to lease your single-family home successfully, so you can be a stress-free landlord. The process starts with a free home rental price analysis and includes finding and placing tenants, ongoing maintenance, and rent collection.
Pricing is a flat fee of only $99/per month in most markets. Renters Warehouse uses technology and their large team to serve both you and the tenant during maintenance requests, customer service, lease changes, finding and successfully screening new residents, and collecting on-time online rent payments.
The majority of the 15,000 landlords that Renters Warehouse provides property management services for today are those clients who moved and decided to lease their home – primarily because it is was the best financial decision at the time – instead of selling their home retail.
RW delivers a concierge-like service that is super stress-free. This allows clients to enjoy the ongoing cash flow that could be even greater than if they had decided to self-manage. That’s because of national discounts and the low flat fee monthly rate of our property management services. Because they can use several write-offs, investors get to capitalize on the reduction in their personal taxes as well.
Single-Family Rental Portfolio Returns with Renters Warehouse
Here’s an example of a currently available single-family rental portfolio in Columbia, SC (#14520).
With a purchase price of $650,219 for the 11 SFR property portfolio in South Carolina, the investor can conservatively expect $55,484 in annual cash flow.
After accounting for an 8% management fee, 10% maintenance reserve, .33% insurance rate, and $14K in annual property taxes, the resulting cash on cash return is projected at 8.53%.
Cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested.
The Demand for Rental Housing
Renter demand for single-family rental assets currently outpaces the industry’s ability to convert existing residential supply. To address this, you are now seeing a big movement in Build For Rent (BFR) rather than institutional investors solely acquiring existing homes. With single-family rental occupancy rates at 93.4% as of Q2 this year, there is a high demand of residents wanting to lease from investors.
What Is “Rent Estate”?
The team at Renters Warehouse feels that homeownership in America is less popular today than in the last 50 years. At the same time, more people of all ages are renting single-family homes.
People in America still want to own. However, many are simply taking longer to get there. For example, Millennials know they’re going to live to one hundred years old, plus. So, they are taking time in putting down their roots without committing to any one market, long-term.
Renters Warehouse Resources Mentioned In the Podcast
- Get a copy of Rent Estate Revolution – Kevin Ortner or learn more about the author and CEO of Renters Warehouse.
- Check out the RentEstate Podcast and Rent Estate TV.
- Learn your primary residence county’s market performance for free.
- Get educational videos from Renters Warehouse CSO Greg Rand.
- Create your free profile to start finding SFR to purchase, sell, or lease with Renters Warehouse, or email firstname.lastname@example.org.
Get Financial Clarity Today
You’ll discover the one thing that you should do right now to accelerate your path to financial freedom.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
Are you frustrated with the volatility, fee structure, and abstract nature of most investments? Do you feel that you’ve outgrown the status quo investing strategy and want to play a bigger game with your investing? Have you heard of alternative investments, but don’t know where to get started? Do you need investments that are built…Read More
Are you on track for financial freedom? If you don’t know the answer to this question, you’re not alone. Most people think the answer is how much more they have left before the house is paid off, how much left on the student loans, the balance of their retirement fund, the stock market’s performance, the Federal…Read More