How Daniel Management Group is unseating major competitors with AppFolio Property Manager
Daniel Management Group
Established: 2013
Location: Chicago, IL
Divisions: Daniel Management Group | DMG Leasing | DMG Capital
From making $13 an hour to managing close to 2,000 multifamily units, part of which he has an ownership stake in, Roger Daniel has an incredible story of vision, determination, and entrepreneurial spirit. Read on for a look at how his business thrives in a city with no shortage of institutional property management firms.
Portfolio
Multifamily
Units Under Management
1,700
Employees
35
“One of the great things about AppFolio is how easy it is to learn and use. I consider AppFolio a partner in our success for sure.”
Started at the bottom, now he’s here
“Dropping out of medical school was how I got started in the business. I had an informational interview with a family friend who was a big deal in Chicago real estate. I didn't realize it at the time, because he's just a low key guy. He was the president of the Chicagoland Apartment Association. He became my mentor. I ended up getting a leasing job for $13 an hour, and I remember telling my parents. And you never want to tell your parents you're going to do that. And they responded as you'd expect, but at the same time I was so happy to be free.”
Think outside the box
“From leasing, I moved up and became a property manager. And I was like, ‘Okay, this is the fundamental building block. I know how to run a building. And if I can run one building, I'm sure I can run more than one building.’ The company I was with at the time had a manager-in-training program, and they trained me to be a manager. Soon, I started auditing the operations of other properties in their portfolio. I'd gotten a good feeling for the core of property management and I wanted to see what the bigger-picture was. But I had no finance background at that time.”
The trifecta
“My last job after I'd gotten some finance experience was basically acquiring and managing a 3,000 unit portfolio for a group focused on subsidized housing. It was this skillset, knowing how to underwrite, acquire, and then manage real estate that set me apart from a lot of the traditional property managers.”
Your network is your net worth
“I was managing my mentor’s portfolio at a third party management company. He sold about half of it and had 700 units left. One day I approached him and said, ‘Let's cut out the middleman and let me just do this for you myself.’ And he let me. He had seen what I had done to his properties in terms of improving their operations and gave me a shot. So I left and started my own shop, and off the bat I had his 700 units and my 150 units or so that I acquired by raising money from friends and family. That kind of scale is hard for the average property manager to achieve. I hired an accountant, and Daniel Management Group was born.”
Choosing the technology to run your business is like choosing a business partner. Adopting a growth mindset, Roger knew that he needed a platform that would be easy to learn and use, provide a great experience for employees and residents, while keeping costs low.
“We found Yardi to be very clunky and we wanted something that was more user friendly that allowed us to communicate with residents more easily. We demoed AppFolio and it had that search bar, which was really attractive. You can find anything in your portfolio, including reports, very quickly. It was also less expensive.”
Technology as a growth multiplier
Payroll
“Because the tech is so easy to use, I don’t need to hire as many people, and those that I do hire can be less experienced.”
Marketing
“AppFolio dramatically reduces our marketing costs as well. We syndicate all of our advertising through AppFolio's leasing platform and that saves a lot of money.”
Winning new business
“We're getting bigger and bigger clients, and AppFolio is certainly part of that. We outseated a major management / development company on a property recently. Their expenses were outrageous. We came in, and the owners love us.”
Online Maintenance Requests
“Work orders go right to the maintenance tech without someone having to assign and follow up on every maintenance request. The resident then gets to rate the experience. All of that adds transparency and efficiency that has definitely helped us.”
Configurable Workflows
“Being able to create customized, built-in protocols that a manager has to follow on a move out, on a new lease, move in, things like that, is a great thing to have. To have it actually in AppFolio, where you have no choice but to follow it, it really takes property management to another level. It's easier to train people. There's less error. You don't have to remember. You don't have to circle back to notes. It's really another level.”
The result?
“We’ve grown almost every quarter since inception. We use AppFolio in our presentation deck as an asset, and that helps. It's seamless and easier to use, so we can really compete with larger shops at less cost and less overhead.”
While it’s easy to focus only on peoples' success, Roger ends by making a point that failure and uncertainty are part of everyone’s story. It’s how you react to these obstacles that will often dictate one’s success.
“It hasn't all been rosy wins. The struggle is real everywhere and I want to encourage people to work through challenges. As hard as it is sometimes, it’s so important to try to find the silver lining, take note, learn, and grow.”
Space to live life to the fullest
Having a company that's more efficient — and more profitable — opens up a world of opportunity.
“I'm into paddle, I'm into tennis. I love traveling. I love spending time with my kids. The success and efficiencies that AppFolio has brought to my companies allow for that. There’s no question AppFolio has positively impacted my life.”
President, Daniel Management Group
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