During today’s HyperFast Wealth segment, host Dan Lesniak speaks with Laurence Jankelow, Co-founder of Avail. Hear Laurence talk about his experience as a DIY landlord, and how his software, Avail, helps address the problems he encountered when becoming a landlord. Learn his tips and tricks for getting started as a landlord and how to market your business.
Episode Highlights:
- Laurence was a finance major in college, worked in consulting and data analytics, then joined Goldman Sachs.
- He was able to buy a three-unit apartment building off-market from a friend.
- In discovering some problems as a new landlord, Laurence and a friend decided to build software to help solve those management problems.
- For this initial deal on the three-unit building, Laurence got it at a 10 gross rent multiplier, which was a great deal.
- Gross rent was about $6,200 per month.
- The challenges Laurence faced and wanted to solve included automating reposting rental listings, collecting rent, and more.
- The software is really designed for small, do-it-yourself landlords with fewer than 9 units, though they have some users with 200-300 units.
- The software allows them to post listings, screen tenants, generate lease agreements, and tenants can pay their rent and request maintenance through the portal as well.
- These smaller landlords are all but ignored in the market, with property management software mostly geared towards folks with huge portfolios.
- Software geared towards people with thousands of units is too cost prohibitive for smaller landlords.
- Right now, the software is free for all landlords; they only charge applicants for tenant screening reports and there is a small convenience fee for online rent payments.
- Landlords can also pay $5/month for premium features including increased customization and faster rent payments.
- They currently have 200,000 landlords and just over 400,000 tenants.
- Laurence estimates that 90% of their users have only 1 unit.
- They offer live chat and phone support 7 days a week.
- Landlords with only 1 unit don’t generally think of themselves as landlords, so it’s difficult to market to them.
- To reach these people, Laurence and the company publish a lot of white papers and guides in response to common search terms they see, like “What do I do if my tenant’s rent is late?”
- Avail plugs in pretty seamlessly with listing websites like Zillow.
- They’re looking to add more financial reporting features, and increase features around maintenance.
- Another opportunity Laurence sees is in matchmaking people who want to get out of being a landlord with people who want to grow their portfolios.
- Personally, Laurence has increased his portfolio to two 3-unit buildings in Chicago.
- Laurence’s biggest piece of advice to a new real estate investor is to treat it as a business.
- The biggest challenges Laurence faced as an investor were getting started because of all the unknowns, and the fact that his building required a lot of maintenance.
- Laurence puts money away for future repairs that he foresees, like roof replacement.
- To learn how to get into real estate investing and being a landlord, you have to learn by doing.
- For people looking to buy a property, Laurence recommends the forum Bigger Pockets, as well as finding a real estate agent that specializes in investment properties.
- It’s tough to know when you’re ready to switch from investing as a side hustle to making it a full time career, but look at the kind of lifestyle you want to live and what you can afford.
- When he’s not working on Avail, you can find Laurence playing with his two young daughters.
- Five years from now, Laurence hopes to continue improving the way landlords and tenants communicate.
3 Key Points:
- Small DIY landlords are almost entirely ignored in the market.
- Many DIY landlords don’t even think of themselves as landlords.
- The industry is lacking in educational resources for DIY landlords.
Resources Mentioned:
- Learn more about (Hyperfast Academy)
- Join the Keri Shull team: (www.kerishullcareers.com)
- Laurence Jankelow (LinkedIn, Twitter, Facebook)
- Email Laurence at laurence@avail.co
- Avail (website)
- Bigger Pockets Forum: (https://www.biggerpockets.com/forums)