In this issue we'll cover:
đź’ś How to create and maintain realtor partnerships
đź’ś Our AI Triple Win Live series continues next month
đź’ś AI-search tips from Lacy Hendricks
When property managers think about growing their portfolios, the conversation usually revolves around digital marketing, SEO, networking events, investor groups, or paid advertising. While all of those strategies certainly have their place, one of the best referral sources for property management is often overlooked entirely: local real estate agents.
The interesting part is that most real estate agents don't actually want to be property managers. According to the National Association of REALTORS®, only a small percentage of real estate firms identify residential property management as their primary business, while the overwhelming majority focus on residential brokerage. In other words, there are thousands of agents across the country working with investors every day who eventually need a trusted property management company to refer their clients to.
Ironically, that's exactly how I ended up in the property management business.
When I opened my brokerage, property management wasn't part of the plan. My business was centered around helping buyers, sellers, builders, and investors purchase real estate. As my investor clients started building rental portfolios, they all began asking me the same question:
"Who do you recommend for property management?"
The problem was that I didn't have an answer I felt comfortable giving. There were a few companies in my market offering property management services, but none that I felt truly reflected the level of service I wanted my clients to receive. Eventually, I agreed to manage a few properties for some of my investors. Before long, those investors started referring their friends, then their friends referred someone else. Looking back, it's almost like they were all talking to each other! Before I knew it, what started as helping a handful of clients had grown into an entirely new division of our company.
Today, I find myself on the opposite side of that relationship. Instead of being the real estate agent looking for a great property manager, I'm the property manager hoping that local agents think of us when one of their investor clients needs professional management. Having experienced both sides has taught me just how valuable these relationships can be.
One misconception I hear quite often is that you have to pay large referral fees to build relationships with real estate agents. While referral programs certainly have their place, especially as your company grows, I don't think they're what creates the relationship in the first place. Property management margins are already thin, particularly for newer companies, and paying significant referral fees simply isn't realistic for many businesses.
Instead, I focused on building genuine relationships.
I started by reaching out to recognizable names in my market—agents who had established businesses, worked full-time, and regularly represented investors. I'd invite them to grab a cup of coffee, learn more about their business, explain how we approached property management, and answer any questions they had. From there, I'd stay in touch, stop by their office every now and then, drop off updated business cards or tri-fold brochures they could hand to clients, and simply make an effort to stay top of mind.
The goal was never to ask for referrals every time we talked. The goal was to build trust so that when one of their clients asked, "Do you know a good property manager?" they immediately thought of us.
Of course, if you've had these conversations before, you've probably heard the concern that almost every real estate agent eventually brings up:
"What happens when my client is ready to sell? Are you going to steal them?"
Here's my take.
I don't believe you can "steal" a client any more than you can steal someone's boyfriend or girlfriend. Relationships don't disappear because someone else exists. They disappear when they aren't maintained. If a client doesn't return to their original agent years later, it's usually because the relationship wasn't nurtured, or because enough time has passed that they simply don't remember who helped them purchase the property in the first place.
That doesn't mean we ignore the concern. In fact, we've built processes specifically to protect those relationships. Whenever a client comes to us through a real estate agent referral, we document that referral in our CRM and make sure it's visible throughout the life of the account. If that owner ever mentions selling their property, our first response is always to recommend they reconnect with the agent who originally referred them to us. We want our referral partners to know we're looking out for their business just as much as our own.
Occasionally, an owner tells us they no longer wish to work with their previous agent for one reason or another. If that's the owner's decision, we'll certainly help them with the sale. But that's the exception—not the expectation. Our philosophy has always been to protect the relationship first whenever possible.
As our company has grown, we've implemented a small referral appreciation program. Today, whenever an agent refers a new management client to us, they earn a $100 referral fee per door, and we send a thoughtful thank-you gift as a token of our appreciation.
But if there's one thing I've learned from being on both sides of this relationship, it's that the referral fee isn't what motivates great agents. When I was the one referring my investor clients to a property manager, I wasn't looking to make money—I was looking for someone I could trust to take exceptional care of my clients. That's what mattered most.
The best agents understand that when their clients are well taken care of, everyone wins. Investors have a better experience, they're more likely to continue growing their portfolios, and when they're ready to buy their next investment property—they naturally turn back to the real estate professional they trust. That creates more opportunities for everyone involved.
The referral fee and thank-you gift are simply our way of showing appreciation. The real value in the partnership comes from taking great care of the clients we've been trusted with.
The biggest lesson I've learned through all of this is that realtor relationships deserve the same level of attention as owner relationships. They don't happen by accident, and they don't maintain themselves. Like any good relationship, they require consistent communication, trust, and a genuine desire to help one another succeed.
If building realtor partnerships isn't currently part of your growth strategy, here are five simple things that have worked well for us over the years.
Start with a conversation. Don't lead with a sales pitch. Invite agents to coffee, ask about their business, and learn about the types of investors they work with. People are much more likely to refer business to someone they know personally.
Make it easy to refer you. Leave behind business cards, tri-folds, or digital resources they can quickly share with clients. If referring you takes extra effort, it's less likely to happen.
Protect the relationship. Document where every referral came from, and when an owner starts talking about buying or selling, make every effort to reconnect them with the referring agent. That level of integrity builds trust faster than any referral fee ever could.
Stay in touch. Relationships require maintenance. Stop by their office occasionally, invite them to grab lunch, congratulate them on milestones, or simply check in. The goal is to stay top of mind—not constantly ask for business.
Always show appreciation. Whether it's a handwritten thank-you card, a small gift, or simply a sincere phone call, let people know you appreciate the trust they placed in you by referring one of their clients.
At the end of the day, the more people in your market who trust you enough to talk positively about your business, the more opportunities you'll create. Real estate agents already have relationships with many of the investors you're hoping to serve. If you become the property manager they confidently recommend, you'll build a referral source that continues producing long after that first cup of coffee.
Brandy Landon
Broker/Owner
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All of us at Second Nature want to take a minute to acknowledge the tragedy that happened in St. Paul, where Nansi Zambrano, Dena Silcox, and AJ Wilwerding lost their lives in their office.
Our hearts go out to the entire property management community, especially Mid Continent Management and the families of the victims.
If you're able, please consider joining us in donating to the families of those whose lives were taken.
All the purple love,
The Second Nature Team