Management Third-party management was the first extension of growth for Korman Residential. Like any third-party management company that also manages its own supply, Korman Residential was faced with the challenge of proving that there would be no conflict of interest. But, as James Korman points out, it was a hurdle.
“If we manage, we are managing for the owners,” says John Korman. “We have a responsibility to achieve the highest possible bottom-line and we take that very seriously – no matter who owns the property.”
And, Korman Residential believes it can offer its third-party clients an advantage because of its extended-stay program, its size and its reputation. For instance, on the day that the company takes over management, it brings the opportunity to place corporate clients in furnished apartments, says John Korman. “We can have a deal where we have units pre-leased before we even take over management.”
The size of the entire Korman Residential portfolio, including the family’s other companies, allows the company to negotiate the best deals with vendors. That means if a problem needs to be fixed or furniture needs to be replaced, the company can do it in one day.
“They like to keep a fresh, quality product in the units,” says Jerry Hellmann, president of American Furniture Rentals, a long-time supplier. “They don’t care that the furniture looked good two years ago, it has to look good now.”
No matter which side of the business Korman Residential advances, the company is ready for growth, says James Korman. “Whether it’s the relocation business, which is going phenomenally, whether it’s a property that becomes available that we could purchase, we’re ready to do it all.”