Today, I want to talk about value — and why it should always outweigh price when making important decisions.
I’ll use our property management company, Redwood Prime, as an example.
Whenever I need to solve a problem in life — whether I’m hiring a contractor, accountant, attorney, or any other professional — I’m not searching for the cheapest option, and I’m not automatically choosing the most expensive one either.
I’m searching for value.
Price alone tells you very little. What matters most is competence: can this person or company actually solve the problem effectively?
In our property management business, our standard fee is typically 10% of collected rents. That fee can vary depending on the client’s needs, but in many cases, it’s significantly higher than competitors in our market.
At first glance, many people focus only on that number.
But the better question is: Why?
The goal isn’t simply to charge a fee. The goal is to create enough value that the fee pays for itself many times over.
For us, that means optimizing an owner’s portfolio, reducing unnecessary maintenance expenses, maximizing rental income, and handling tenant issues efficiently and professionally.
One major advantage we’ve developed is the use of AI through our system, Venderoo. Every maintenance ticket is triaged immediately. In many situations, tenants can solve small issues themselves without the owner paying for unnecessary service calls. Over time, those savings become substantial.
Value also comes from operational excellence:
- Maximizing market rents
- Reducing vacancy time
- Handling collections efficiently
- Acting quickly when legal action is necessary
- Managing tenant communication professionally
- Protecting the long-term health of the property
These are the layers people often overlook when comparing companies solely by commission percentage.
When someone asks, “What’s your fee?” they’re often asking the wrong first question.
The better questions are:
- Why is your fee higher or lower than competitors?
- How do you handle maintenance?
- How quickly do you address nonpayment?
- What systems do you use?
- What measurable results can you provide?
- What hard data proves your service creates value?
These questions matter because, for many people, their real estate portfolio is one of their greatest assets.
The same principle applies far beyond property management. Whether you’re hiring an electrician, attorney, CPA, realtor, or any other professional, don’t focus only on price.
Focus on value.
The cheapest option can become the most expensive mistake. The right option is the one that delivers measurable results, protects your investment, and solves problems effectively.
Value should always be the first question behind every important decision.
