Networking Guidelines

Real estate management is a service business that is built on relationships. Because people prefer to do business with people they know, one of the fastest ways to become known and to develop a reputation within an industry is by networking. Building and nurturing a network within the real estate community is one of the most-effective and least-expensive business development techniques for a management company.

Networking is an organized method of linking people you know to each other via an ever-expanding base of contacts. A network grows each time you meet someone. As more people are brought into the group, their contacts are added to the network. Although the discussion here is focused on real estate industry contacts, involvement in service and charitable organizations in one’s local community also provides opportunities for networking.

Networking is an acquired skill, and one’s networking activities must be planned and managed. The most effective networking arena for real estate managers is a professional association. Most national trade or professional organizations related to the real estate industry have local chapters throughout the United States. Active membership in the local chapter of a real estate organization is an excellent way to network on a local and regional basis. Becoming active at the national level is usually the only way most individuals can network on a national basis. The benefit of the contacts and referrals generated by networking often exceeds the cost of attending the national meetings and conventions of such organizations as the National Apartment Association (NAA), the Community Associations Institute (CAI), the Building Owners and Managers Association (BOMA), the International Council of Shopping Centers (ICSC), and the Institute of Real Estate Management (IREM). Since it may not be possible or practical for every real estate manager within a company to attend the meetings of several organizations, individual managers may be assigned to attend and be active in a particular association on behalf of the management company. This will enable the firm to maintain a presence in several different real estate organizations.

Still another excellent networking opportunity is one-on-one meetings, usually over lunch. Such get-togethers provide an opportunity for real estate professionals to become acquainted on a personal level while they compare their experiences, discuss their real estate activities, and provide each other with referrals. They may even become involved in business opportunities together. This particular strategy can be fostered by encouraging managers on your staff to develop a list of real estate professionals they would like to invite to lunch during the coming year. The list might also include lenders, bank trust and REO officers, architects, appraisers, developers, and professionals from other allied industries.

Networking is most successful when information and referrals can be shared. Information about such things as building operating expenses, vacancy trends, and leasing situations that real estate managers take for granted is often valuable to other real estate professionals and difficult for them to obtain. Successful networking requires a commitment, a plan with targeted goals, and faithful execution of the plan.

Further detailed information on recruiting clients can be found in the IREM publication Business Strategies for Real Estate Management Companies © 2004 by Richard F. Muhlebach, CPM® and Alan A. Alexander.