How many Properties can one Agency manage?
We recently published the story of Steph, a Property Management business owner, who set herself the target of reaching 2000 properties under management (PUM).
However, she found that once she reached 1200 PUM, “that’s when the headaches started”.
1200 Properties-Under-Management. This was her business’ breaking point.
The point at which her systems and processes were unable to cope with the demands of the workload.
The point at which her Property Managers had to cover the gap between what her system could handle and what a portfolio of that size demanded.
Cue headaches, staff burnout, and stalled growth.
And instead of being proactive and, you know, doing the things that caused her to grow in the first place, she (and her team) got stuck in a reactive cycle.
There is no “golden rule”
The point is we felt like we need to clarify that there is no “golden rule” when it comes to the ‘breaking point’ number.
This number will be different for every business, depending on a number of factors.
For Steph’s business, it was 1200.
For some it might be far higher. For many, it could be less than half that amount.
The point is that if you are relying on people to carry the extra burden of growth, sooner or later you will feel like you’ve reached capacity.
It may be 800 PUM or you might find it to be 1300 PUM, it may even be 400 PUM.
What are the symptoms of ‘reaching capacity’?
The point is that sustainable growth is only possible with the right systems in place.
You’ll know your number when you reach it.
- The bad reviews will start flooding in
- Your best team members will start burning out
- You will notice a rise in sick leave. You might start wincing in anxiety every time the phone rings.
You’ll stop doing the things that made you successful in the first place.
You’ll feel like you’ve lost your mojo.
How can you increase capacity?
Re-structuring your Property Management business to increase capacity has been proven to work.
However, there are many different models from which to choose.
Many Property Management businesses moved from a portfolio-based approach to a more end-end model.
Some of the most successful businesses operate a hybrid between the two.
So, instead of a Property Manager being responsible for EVERY task related to their portfolios, they retain responsibility for all communication with tenants and landlords but share other tasks such as administrative duties.
This allows them to handle far bigger portfolios, and focus on the relationship management component more.
They are taking responsibility for all tasks being done, not necessarily doing them all themselves.
Which tasks should you focus on?
There are up to 30 processes that most real estate businesses can look at streamlining, either through technology or offshore staff.
But we recommend that you start on the Core Processes first: things like vacates, renewals, listings, and applications.
Speak with STAFFLINK to find out more about the Core Processes and find out how many properties one agency can manage.