HOW TO STRUCTURE YOUR GROWING PROPERTY MANAGEMENT BUSINESS

HOW TO STRUCTURE YOUR GROWING PROPERTY MANAGEMENT BUSINESS ANDY PROPST, RMP, MPM PARK PLACE PROPERTY MANAGEMENT BOISE, ID DOUG MASCHOFF, RMP MYHOMESPOT. COM ATLANTA, GA DUKE DODSON, RMP, MPM DODSON PROPERTY MANAGEMENT RICHMOND, VA

COMMON STRUCTURES OF PM BUSINESSES: - Portfolio/Property Manager Model - Specialized/Departmental/Silo Model - Common Hybrids: - Two-person teams - PM Model with certain responsibilities segregated (Accounting, Leasing, Maintenance, etc)

PORTFOLIO/PROPERTY MANAGER MODEL Strengths: § No breakdown of communication between departments. § One person takes ownership for all the responsibilities of management. § Clients and tenants have one point of contact for all their needs. They always know where to go to get a question answered. § The manager is typically very familiar with all the aspects of the properties they manage. Weaknesses: § They become a “jack of all trades, master of none”. Individual process might take then longer. § It is much harder to hire someone into the PM role. Since they handle so many different responsibilities, training is very difficult and time consuming. § Owners and tenants have no one to contact if the PM is out. Nothing gets done.

SPECIALIZED/DEPARTMENTAL/SILO MODEL Strengths: § People performing the same task over and over will become more familiar with that process and therefore more efficient. They become specialists. § Easier tasks can be assigned to new/lower level employees. Can be a training ground while they learn the system. It is much easier to higher for lower level positions. § Owners/tenants have multiple people to contact if one person is out. Weaknesses: § There is often times a breakdown in communication between departments. § People will often time “pass the buck” to another department to avoid responsibility or blame. Employees will not have the “big picture” in mind. § Clients often complain about having to talk to too many people. Don’t like being “passed around”. § Each person is less familiar with each individual property. A team can manage more properties.

QUESTIONS? - Andy Propst, andrew@parkplaceid. com - Doug Maschoff, doug@myhomespot. com - Duke Dodson, duke@dodsonprop. com

SCORECARD Job Description Score Card § Strong Swimmer § Experienced § Competitive § Team Player § Win 10 Gold Medals § Break World Records § Win Team Medals § Break team Records

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