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Today, we're going to dive into a key script for handling fee objections, especially when you're dealing with higher-end, executive rental properties.
These types of properties often come with more expensive rents, and the owner might try to negotiate a lower management fee. Let's explore how to confidently navigate these situations and ensure you're charging what you're worth.
First off, never walk into a high-rent property assuming that you need to charge less just because the rent is higher than what you're used to managing. Don't make that mistake. Instead, go in ready to defend your full management fee.
‘Higher Rent’ Means ‘Higher Expectations’
When you're managing executive properties with high rental prices, it's essential to understand that these properties come with higher expectations from both the owner and the tenant. The more expensive the rent, the more demanding the tenant can be.
Tenants in these types of properties are often more entitled to top-tier service, and that's not a bad thing—it’s just the nature of the market.
On top of that, these properties tend to be larger and come with fancier appliances or additional features that require more attention.
This means the level of accountability, responsibility, and workload increases significantly compared to standard rental properties.
The owner might argue that you're doing the same job, but the reality is you're not.
To give you an example, we’ve worked with a property management team in the Bay Area of San Francisco, where rents are incredibly high due to the multi-million-dollar properties they manage. In this scenario, they understood the additional workload that comes with managing high-end homes. To handle this, they reduced their property manager-to-property ratio to just 60 properties per manager. That speaks volumes about how much more time and effort high-end properties demand.
So, when an owner questions why they should pay more, it's important to realise this is simply a negotiation tactic. They’re testing you to see if you’ll lower your fee.
Now, let's turn to Secret Number 29, Script 13 from our PM Fee Scripts Secrets book. This script is designed to help you respond when an owner says, “But my property is an executive rental, so you should be charging me less in management fees.”
Here’s how to handle it:
Script for High Rent Properties:
“Mr. Smith, that’s a fair point. However, in our experience, the higher and more executive a property is, the more demanding the tenant tends to be. Owners of such properties also have higher expectations for the management service, and rightfully so. These properties are larger, worth more, and the tenant is paying more than average, which means expectations are higher all around.
This translates to more interactions and a greater effort on our part to manage the property properly. Our fee reflects the service levels we deliver to meet those higher expectations and ensure the property is well-managed. That’s why we charge a percentage—it allows us to adjust the fee according to the workload”.
This script isn’t difficult to master, but what’s most important is the attitude you bring into the conversation. Go in with the mindset that you deserve your full fee, and be ready for the owner to challenge you. When they do, you’ll be prepared to respond confidently and clearly.
Once you deliver this script with conviction, most owners will back down, recognising that you believe you're worth what you're charging. In their minds, they'll think, "Well, I gave it my best shot, but they had a better response."
They’ll often agree to your full fee because you’ve demonstrated your value.
At the end of the day, negotiating management fees for high-end properties comes down to being prepared and confident. Higher-rent properties require more time, effort, and accountability, so never shy away from charging what you're worth.
If you want more fee objection responses, check out our PM Fee Script Secrets book, available at IGTCentral.com—we’ve covered the printing costs, so all you need to do is pay for shipping. Be ready with the right scripts and handle these situations like a pro!
By following this approach and using the right scripts, you can ensure you're not undervaluing your services—no matter how high the rent is.
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