Another credible area of delegation is property management, especially if your business is growing. It’s likely that you’ll eventually hit a point where you just can’t handle it all, and it becomes necessary to look for some property management help.
I’ve seen property management take on various forms. Some people prefer to step out of the business and let the property manager handle all the financial operations and property management. In this case, the business owners function more or less as investors. There are other business owners who take on a hybrid model: the property manager becomes the face of the business, interacting with tenants, while the owners retain all of the accounting responsibilities. Honestly, there’s no right answer when it comes to how you should delegate to your property manager. What I will say is this: whenever you are considering bringing in some help, you need to sit down with the potential property manager and outline clear expectations and areas of responsibility where the two of you aren’t walking all over each other. It’s miserable to try and get your job done when you aren’t sure what falls under your property manager’s area of expertise and what falls under yours. Part of establishing responsibilities is noting demarcation points and making clear when the two of you will hand off tasks to each other. This strategy will help your business be more efficient, and as the personal owner of your company, you will be able to spend your time with more intentionality.
Delegating Property Management Duties: A Personal Example
Within our company, we decided that our property manager would do the following things:
- Select tenants based on an agreed-upon set of standards (minimum credit score, criminal record findings, background check results, references, treating past bankruptcies, etc.), and show units to prospective tenants
- Collect rent and inquire about late rent
- Interact with tenants
- Field tenant questions and calls
- Coordinate service and repair issues as needed
- Perform preventative maintenance as needed
- Coordinate unit turnovers
For every duty listed above, I made sure to reach a high level of agreement with my property manager, which takes hard but worthwhile work and time. Now, years later, our business is more sophisticated because of property management delegation, and I have more time to spend on the areas of the business that I prefer.
The Benefits of Delegating Property Management Duties:
Obviously, the benefits you derive from delegating property management duties will vary, depending upon the duties you end up giving to your property manager. But here are a few that I have experienced, based on the way we have structured our relationship with our property manager:
- I don’t have to show property or select tenants, which gives me more time back in my schedule to pursue areas of the business I enjoy more.
- I don’t have to take calls at night for maintenance or tenant issues, which is a big deal because I’ll have less interruptions in my schedule.
- I have someone who will collect rents and follow up with tenants. This can be stressful, and not everyone is cut out for pursuing past-due payments from tenants.
- I have someone to help me manage tenant interaction, such as renewing leases and other points of contact like lawn care reminders, improvement of the unit’s condition, etc.
In Summary:
- Delegating property management duties can be expensive if you hand over 100%, but it can be more cost-effective if you choose to follow a hybrid model, retaining accounting responsibilities.
- It is really nice not to have to take calls at night if something goes wrong. That speaks for itself.