A note from Dan DaughertyCEO - Rent Marketer

Growing up in the beautiful hills of Simi Valley, California, my family and I had most of the things we wanted. We had food on the table, a good education, opportunities to compete in sports, and a roof over our heads. However, I never had the tools to truly become extraordinary. As a family, we were stuck, living paycheck to paycheck. My family is not unique. Most people wake up, go to work, eat, sleep and do the same things over and over again. Most are stuck in the proverbial rat race. During my senior year of college, I realized that this way of living and thinking was unacceptable to me. I wanted to do more, affect more lives, change the world. I wanted to become extraordinary. That was the tipping point in my life. My thoughts, dreams and aspirations started to become a reality. At the age of 23, I became the youngest business manager at Google. By 26, I had acquired nine rental properties. Before the age of 30, we built, from the ground up, a multi-million dollar rental technology company. And Im just getting started. Throughout this process, I have surrounded myself with successful, positive and smart people. And I came to realize that all of these successful, motivating, extraordinary people followed a set of unwritten laws that assisted them with propelling their lives to extraordinary new heights. This book is about those laws. The most successful property management companies within NARPM abide by these laws whether they consciously know it or not. We received feedback from some of the most successful real estate professionals in the industry and their words have helped us create this book. Special thanks to those who contributed to this project, and to Mike Branam, who helped transform those thoughts and words into bite-size chapters. If you are stuck in the rat race, want to grow your business, or just want more out of life, follow these rules and your dreams will come true. Imagine, and it shall be. Together, lets become extraordinary. Dan Daugherty

Law #1 Set Goals - Have a Visionby Dan Daugherty

by Mike Branam

Law #1: Set Goals - Have a Vision

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it. - Michelangelo

What you get by achieving your goals is not as important as what you become by achieving your goals. - Zig Ziglar

Jim Cathcart, a noted professional speaker, once said, Most people aim at nothing in life and hit it with amazing accuracy. If we dont specify exactly what we want, we have no reason to complain about what we get or where we find ourselves. I have always been a big advocate of having a game plan, and I make every effort to execute that plan within the desired period of time. For those who know me well, they know that I carry a list of goals in my briefcase everywhere I go, and am constantly taking a look at the list to track my progress. In fact, my wife always laughs when I ask her to block off two hours on New Years Eve so we can evaluate how our yearly plan went while drafting up new goals for the upcoming year. If it takes me away from college bowl games, she knows how serious I am! While working with various management groups and talking with business owners, it is clear that those who have experienced success have not done so by accident. One common theme continued to surface, and that was the importance of setting goals. Chris Hermanski, who owns and operates Mainlander Property Management, places a strong emphasis on setting goals. When asking Chris to name a few things that have helped him remain one of the most successful property management companies in the industry, Chris responded by listing several of the themes that will be outlined in this book:

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Law #1: Set Goals - Have a Vision

1. Prepare for change and have one, three, and five year goals 2. Surround yourself with good, talented people 3. NARPM - Learn from others 4. Be consistent & fair with all 5. Embrace technology Mary Tungsvik, who owns Around the Clock, Inc. and has been in the industry for over 20 years, also outlines the importance of setting goals. When discussing three areas of priority that have helped her remain successful, Mary outlined the following: 1. Setting new goals annually 2. Surrounding yourself with people who are passionate about the business 3. Implementing a good business plan Mark Cunningham, a 30-year property management veteran, has a few goals in mind when discussing how to keep himself up to speed in an effort to grow his business. 1. Reading books on business & property management 2. Talking with other property managers 3. Continuing to add new services While it is evident that there are several ways to run a property management company, the foundation of success often has recurring themes. The importance of setting goals, while doing what we can to get better every day of our lives, was a consistent theme with everyone we spoke with while doing research for this project. Many people also discussed the importance of having a vision and putting their thoughts into action. With that in mind, here is a four step process to getting the ball rolling on any vision or goal that you might have. 1. Have a vision 2. Put it in writing 3. Be organized in developing your goal/plan 4. And lastly, turn the vision into action and evaluate progressPage 2

Law #2 Solve Problemsby Dan Daugherty

by Dan Daugherty

Law #2: Solve Problems

Most people spend more time and energy going around problems than in trying to solve them. - Henry Ford

We are too busy mopping the floor to turn off the faucet. - Unknown

When asked, If you had only one word to describe the day-to-day life of a property manager, what would that word be?, many property managers mentioned the words frustrated, hectic, and chaotic. These words are echoed by many of the most extraordinary people and companies in the world. These frustrations usually turn into the development and implementation of better services and products. At Google, Larry Page and Sergey Brin were frustrated with the results from search engines. Their response was to develop a more relevant search engine based on the democracy of the Internet. Virgin Airlines was developed because Richard Branson was frustrated with the service he received from other airlines. At Rent Marketer, we were frustrated with posting ads manually to many sites individually - so we built technology to do it more effectively. When doing research for this project, we received a great deal of feedback about how the art of problem solving is a prerequisite for any property manager. Steve Urie, who has been working in property management for nearly 25 years in Gilbert, Arizona, noted that while he enjoys the fact that no two days are alike in the world of property management, he also embraces the reality that the business demands an ability to solve problems. Melissa Prandi, author of The Unofficial Guide to Managing Rental Property, shares a similar view: There is never a dull moment in property management, as there is always an opportunity to resolve/solve so many problems. A byproduct of solving difficult problems and creating value is innovation. Page 3

Law #2: Solve Problems

For those who want to change things and become more productive, it has been found that frustration acts as the catalyst for innovation. Many successful property managers not only come up with new processes, procedures and products when they become frustrated, but they also know that an idea is just a thought that needs to be set into action. We tend to view frustrastion as a purely negative state of mind. However, if we recognize what it is that is making us feel this way, we then have a springboard to use to leap to a better process. Final thoughts: Transform frustration into new ideas Implement and take action with these new ideas Create value when determining new ideas to implement Share your ideas and successes

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Law #3 Laugh. Smile. Dont Take Things Personally.by Dan Daugherty

by Mike Branam

Law #3: Laugh. Smile. Dont Take Things Personally.

With the fearful strain that is on me night and day, if I did not laugh I should die. - Abraham Lincoln

Laughter gives us distance. It allows us to step back from an event, deal with it and then move on. - Bob Newhart

Laughing. Smiling. We know how important these things are in our personal lives, but they are just as important in our professional lives as well. This is not to say that business should be taken lightly, or that a customer issue will magically be resolved with a hearty belly laugh. But taking a moment to reflect on a challenging issue, or laughing at yourself when times are a little tough, can help us navigate through difficult waters. While we cannot always control what happens, we can certainly control how we react. PJ Chapman of Chapman Properties and Mike Mumford of Bennett Property Management are two members of NARPM who I have had the pleasure of spending some time with. Their commitment to seeking out opportunities to learn is obvious, even after spending just a few minutes with them. It is not uncommon to hear them discussing how to make a process better, or how to make a contract more sound. Hearing them bounce ideas off one another has convinced me that they are not necessarily concerned with THEIR way of doing things - rather, they seem focused on the BEST way of doing things. And with all that said, I have not spent more than five minutes without seeing either PJ or Mike laugh when having a discussion. Their enthusiasm for life is contagious; proof positive that you can be successful while having some fun. While it is easy to laugh when times are good, it is during stressful times that we needPage 7

Law #3: Laugh. Smile. Dont Take Things Personally.

to have as much perspective as possible. Many of the management groups I have spoken with allude to the importance of having perspective while not taking things personally, especially during the process of an eviction. I have heard some difficult stories surrounding evictions and it is clear that while these are sensitive circumstances, a management company has to proceed by doing what is right. Sometimes what is right is not always what is easy, but having perspective during the process can at least provide peace of mind. I dont take myself too seriously says Joan Maranville of Maranville Realty. Well put Joan! I recall a time in my life when I was overstressed and probably not a lot of fun to be around. I was in a fuss because I could not find my glasses when a co-worker interrupted me and said, Mike, you are wearing them. Hard not to laugh at that. Final thought: We really are not that effective when we are stressed out. Sometimes we need to take a moment to smile and put things in perspective.

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Law #4 Focus on People and Serviceby Dan Daugherty

by Dan Daugherty

Law #4: Focus on People and Service

Do what you do so well that they will want to see it again and bring their friends. - Walt Disney

It is very difficult to make your customers happy if you dont have happy employees. Derek Kalles of Kalles Properties says, People are the key to successfully sustaining, growing and developing a company that will create a legacy for many years to come. We are a service-based business with the most important asset not existing on our balance sheet - rather, it is our people. Tony Hsieh, the CEO of Zappos, an online shoe company that was recently acquired by Amazon for approximately $850 million, says that one of the keys to Zappos success has been creating a culture and business that is powered by service. Tony says, we believe that customer service shouldnt be just a department, it should be the entire company. The litmus test for determining whether or not a company is customer focused is to talk with the team members who work directly with customers. If they embrace the service and look forward to solving problems, they clearly embrace customer service. At Rent Marketer, one of our core values is Be Committed to Go Beyond. This mantra is for both team members working with customers, as well as team members working with each other. If we cant WOW each other through service, how can we expect to WOW our customers? Final thoughts: Invest in people: happy employees = happy customers Great customer service must come from all areas of the organization Build a strong culture around service Exceed customer and employee expectations

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Law #4: Focus on People and Service

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Law #5 Find Partners and Mentorsby Dan Daugherty

by Mike Branam

Law #5: Find Partners and Mentors

A friend is one who walks in when others walk out. - Walter Winchel

Einstein. Plato. Aristotle. Emerson. Galileo. DaVinci. All brilliant contributors to life whether it was through science, philosophy, literature or art. But what do these great men have in common outside of their advanced body of work that has been left for all of us to benefit from? Each and every one of them had mentors. They took advantage of their resources in an effort to not only better understand their craft, but also to further advance their knowledge within various subject matters. A mentor can serve as a sympathetic guide through challenging times. Personally and professionally, there are times in our lives when we could use guidance from someone who has an interest in our development and is a valuable resource in their respective field. A mentor who takes the time to understand where you are in your career and intellectual journey can be of great value. Surrounding yourself with peers who share similar experiences will open the doors to knowledge and ideas that may not have previously existed. My mother used to tell me, your friends are the window to your future. Many of the successful property managers we interviewed would agree. In virtually every discussion we had with property managers, each would say, in one form or another, always learn, and find great mentors. They stated that in order to truly be successful, you must surround yourself with successful people, learn from those who have succeeded and failed, and dont waste your time with those who have done neither. Chris Hermanski, President of Mainlander Property Management and National President of NARPM in 2003, said that in order to ensure success, you must surround yourself with good, talented people and learn from others, especially in NARPM. After working in property management for nearly 28 years, Peter Meer continues to

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Law #5: Find Partners and Mentors

utilize NARPM as a valuable resource that has helped him become more successful in his business. Anne McCawley with Bennett Property Management shares similar sentiments. Anne has embraced NARPM education while taking advantage of advances in technology that are relative to the industry in an effort to remain successful. Matt Rogers of All Seasons Property Management in Colorado Springs has maintained a strong presence within NARPM, as sharing experiences with other management groups has provided valuable insight. Over the course of the last two years, I have encountered a number of management groups both within and outside the NARPM membership base, and one thing is clear: those who participate in NARPM view their membership as an opportunity to share knowledge with their peers in order to better themselves and their company. There are members who serve as mentors and others who seek out opportunities to learn from those who have encountered similar obstacles. What a valuable resource! Benjamin Franklin once said, There are two ways to acquire wisdom; you can either buy it or borrow it. By buying it, you pay full price in terms of time and cost to learn the lessons you need to learn. By borrowing it, you gain wisdom from those men and women who have already paid the price to learn those lessons. Final thoughts: Partner with positive people and mentors Dont listen to or surround yourself with negative people Continue to learn all aspects of the business Give back and learn from NARPM members

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Law #6 Get Out of Your Comfort Zoneby Dan Daugherty

by Dan Daugherty

Law #6: Get Out of Your Comfort Zone

Never throughout history has a man who lived a life of ease left a name worth remembering. - Theodore Roosevelt

Feeling nervous, unnatural and scared helps you grow. Make it a point to feel uncomfortable each day and you will grow exponentially. By nature, it is very easy for us to quit in times of stress or discomfort. There is a Chinese proverb that says, The temptation to quit will be greatest just before you are about to succeed. Gym memberships and gym traffic go through the roof in December and die down to normalcy in February. Why do you think that is? Starting a property management company with zero experience about 4 1/2 years ago is something Kristi Villani of V2 Properties did to get outside of her comfort zone. When asked about it, Kristi said, I have grown up in, and married into an entrepreneurial family. From this Ive learned that success is possible as long as I believe in myself, surround myself with those who have experience and am willing to put in the time and effort that is necessary. When the company was just an idea that I was toying with, I got a fortune in a fortune cookie that read, You are capable of running a thriving business venture. I keep that in my wallet still today. As it relates to property management, many of the top property managers we have spoken to are presidents of their chapters, past presidents of NARPM, have written books, etc. Before accomplishing these things, they most likely were uncomfortable, nervous and full of anxiety. However, getting past their comfort zone allowed them to accomplish extraordinary things. Outlined on the following page is a poem we found about stepping outside of your comfort zone.

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Law #6: Get Out of Your Comfort Zone

I used to have a comfort zone where I knew I wouldnt fail. The same four walls and busywork were really more like jail. I longed so much to do the things Id never done before, But stayed inside my comfort zone and paced the same old floor. I said it didnt matter that I wasnt doing much. I said I didnt care for things like commission checks and such. I claimed to be so busy with the things inside the zone, But deep inside I longed for something special of my own. I couldnt let my life go by just watching others win. I held my breath; I stepped outside and let the change begin. I took a step and with new strength Id never felt before, I kissed my comfort zone goodbye and closed and locked the door. If youre in a comfort zone, afraid to venture out, Remember that all winners were at one time filled with doubt. A step or two and words of praise can make your dreams come true. Reach for your future with a smile; success is there for you! Final thoughts: Do one thing that makes you uncomfortable each day Dont quit - you may be surprised at how close you are to success

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Law #7 Fail Often - Learn from Each Failureby Dan Daugherty

by Mike Branam

Law #7: Fail Often - Learn from Each Other

I can accept failure, everyone fails at something. But I cant accept not trying. - Michael Jordan

There are no secrets to success. It is the result of preparation, hard work, and learning from failure. - Colin Powell

Had Thomas Edison not been a man of perseverance and determination, we may still be working by gaslight, or at least, it may have been many years before the first electric light was seen. It has been reported that Edison failed over 6,000 times before perfecting the first electric light bulb. Edison was once asked by a young journalist why he continued to work on what was deemed his electricity project after he had already failed countless times. Edison replied, I have not failed 6,000 times. I have not failed once. I have succeeded in proving that those 6,000 ways will not work. When I have eliminated the ways that will not work, I will find the way that will work. Even if we try and then fail, it does not mean that we did not learn something. And if we can build on each failure, then we can begin to measure true progress while eliminating the possibility of repeating costly mistakes. Given the challenging economic climate, I think of the various discussions that I have had with management groups over the last couple of years and have realized that despite times when people may have been feeling the impact of the economy, folks are still learning from what is going on in their profession and moving forward. Every person I spoke with had a story about failure and the great ones turned each one of those obstacles into a positive learning experience. Instead of sharing the stories about failure, I want to focus on the perspective that was shared with me in spite of challenging times.

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Law #7: Fail Often - Learn from Each Other

Dawn Hardley with Bell Anderson talked about the impact of lower rents as a result of additional inventory on the market. Despite that challenge, Dawn has maintained an incredibly positive attitude and continues to enjoy helping prospective tenants find a place that they can call home. Despite the instability of rental supply and demand, Jan Lassen of Home Sweet Home Management Inc., continues to enjoy the challenges that are presented in property management. She pointed out how learning something new every day is something that she continues to welcome. Rob Lynde of Milestone Real Estate Services has lost a few properties in his portfolio due to the foreclosure crisis. I have met Rob a few times and always enjoy his insight and positive outlook. Rob points out that he enjoys working with people and even likes to personally work on some of the properties that he manages. I point these stories out because despite challenging times, most people I speak with remain upbeat and enthusiastic about their business and they are doing things to maintain a positive perspective. Are we going to encounter discouraging moments or even times when things just do not seem to work out? Absolutely. But these are triggering events in which we either dwell on each shortcoming, or we learn from what happened and transition the event into a learning experience. Another trend I discovered while working on this project is that each contributor seems to have a firm grasp of the concept that learning from failure is part of the foundation for success. This leaves little doubt that these people will continue to enjoy success in this industry and in their day-to-day lives. Final thoughts: Learn from everything, especially failure Never, never, never, ever give up

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Law #8 Embrace Technologyby Dan Daugherty

by Dan Daugherty

Law #8: Embrace Technology

All of the biggest technological inventions created by man - the airplane, the automobile, the computer - says little about his intelligence, but speaks volumes about his laziness. - Mark Kennedy

Part of learning is embracing positive change. Mike Mumford of Bennett Property Management says, Embrace and invest in technology. This mindset has allowed Bennett Property Management to become one of the largest property management firms in Arizona. Susan Melton points to the advances in digital photography as a technology that has saved an enormous amount of time when it comes to posting photos online. Sometimes I wonder what we did before digital technology. At the heart of most technology lies a response to a basic human reaction: wanting to do more with less. Mark Kennedy calls this laziness, but in business, this is called productivity. Virtually all of the property managers I spoke with said that embracing technology has allowed them to grow their business. Lee Arnold with Chamberlain Property Management said they use technology to maximize time and efficiency. Examples they gave included using technology for email, online vacancy listing services, dynamic and interactive company website, and more. Embracing technology not only helps property managers become more productive, it also keeps them ahead of their competition and increases customer satisfaction. Take for example, P.J. Chapman of Chapman Properties, who uses technology to stay ahead of the competition and says that with new and improved accounting software and other technical advances, [it] has made it easier to streamline the management process. Or take Jan Lassen of Home Sweet Home Properties, who uses technology to streamline the marketing process. Jan was one of the first to use Rent Marketers technology to lease out her rentals faster and says [Rent Marketer] is really a tremendous benefit for any property management company to use. One of the many benefits of embracing

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Law #8: Embrace Technology

this technology is that it has allowed Jan to increase client satisfaction by renting out properties faster. Final thoughts: Dont be afraid of new technology - use it to your advantage Save time, money and headaches through technology Increase customer satisfaction through technology

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The future is yoursFor those who took the time to participate in this project, and for those who have taken the time to read this material, we thank each and every one of you. Each one of our stories is ongoing with an endless amount of possibilities in front of us. Whether you are at a NARPM event, or need to write down your thoughts and ideas somewhere else, please continue to use this book as a resource. The pages that follow have intentionally been left blank. Use these pages to turn your goals and thoughts into words. Keep them to yourself or share them with the world. Imagine, and it shall be. Write your own story.