Speaking from experience I’ve always believed that these factors impact greatly on the service and delivery that clients and tenants experience within Property Management.
Maybe more broadly these are issues impacting so many other industries!
I mean the number of properties that a Property Manager needs to have under their management in order for their position, and the business that they work within to be viable.
I was chatting with a tenant the other day and he was asking how business was going and how I was managing it, I said something along the lines of it going quite smoothly especially as I was now only managing just under 50 properties. They’re response was “ONLY!”, yes only. I’ve worked in offices managing up to 250 with minimal administration support.
Of course I want to slowly increase my portfolio but in a sustainable and manageable way and will max out at some stage where there’ll be a need for assistance. But get in while you can ;p
The numbers of properties that the majority of property managers have under their watch is simply too many. It’s already a mammoth task being organised enough to smoothly manage these figures but for so many property managers it can just take one situation occurring that sends everything else crashing down, and it’s the norm for unexpected situations to arise, Constantly.
Obviously, a business needs to be profitable but what do we see when volume is always running at its upper limits, we see Staff turnover, dissatisfied clients that go elsewhere and complaints. It also leaves no room for growth either.
As an investor, you really should find out how many properties your Property Manager has under their management, after all, what are you paying for when you can’t get a call or email response for 2-3 days.
What about the Staff turnover that this model creates, Property Managers burn out and when they do, they leave the industry or that particular office they take with them all of their knowledge about your property – information and knowledge that can’t be all included in a handover- where handovers are rare!
New recruits are not lining up to get into property management, let’s be honest, they either want to get into Real estate sales or stay away all together.
2019 started off with a lot of online chatter about procrastination and how it really is the handbrake of progress and a real stressor to many people. We all do it, not just Property Managers but I’ve seen a lot of it in my time.
In Property Management I think much of the time, procrastination may just be a person that’s been non-stop busy, relishing whatever down time they can get and therefore just putting off tasks that are non-urgent. I can almost see the rational there but whatever that task is, it will continue to just get put off Until it becomes urgent and in property management- like many roles- we should be proactive instead of reactive.
Within Property Management though procrastinating a specific task turns a non-urgent issue into an urgent one quickly, simply because that proactive approach is needed.
Property Management is a stressful space and it’s deferring stress that leads to procrastination because we as humans worry about the short term.
Explained clearly in a New York Times article I recently read “Put simply; Dr. Pychyl and Dr. Sirois found that procrastination can be understood as “the primacy of short-term mood repair … over the longer-term pursuit of intended actions.” Put simply, procrastination is about being more focused on “the immediate urgency of managing negative moods” than getting on with the task, Dr. Sirois said.” A worthwhile read, the article can be found here.
Basically, a Good Property Manager needs to “Just do It” and get on with the tasks at hand.
So how do you know as a Landlord when choosing an agent, the service that you can expect:
-Ask. How many properties does your potential property manager look after? You need to know where you sit amongst a sea of properties and clients that they are managing.
-Observe. How quick is the turnaround time for simple or even more involved enquiries and questions? If it’s slow, it doesn’t usually improve over time.
And Remember. The service that you receive is similar to that of which your tenant is going to experience, and we need tenants to be looked after!