How many properties per manager?

[bombers86]

Hi all,

I have just purchased a new property in Perth and looking at different managers - it's currently tenanted and managed by a company which I would prefer to leave it with based on the fact they are going to negotiate their fees. They have told me they have 400 properties on their list and only 3 managers so approx 130 properties per manager.

I've never asked the question before nor have I worked in a property management team so I don't know if this is high? Average? Anyone have any advice on this? I don't want to sign up with a manager who has too many properties and can't handle the workload..

 

[tobe]

I wouldnt let the fact they say they will negotiate the fee or the number of properties per manager be a factor in who you choose.

Lots of companies might negotiate thier fee, this doesnt mean they are any good at what they do, or will save you money. For instance they might not inspect as often and therefore higher maintanence bills, or they might not act quickly with arrears etc or they might load their fees per item rather than percentage.

In terms of number of properties, again that doenst really say much. A manager might manage 1000 properties, but they have a PA or receptionist who handles all tenant instigated issues, or they farm out the more mundane tasks to junior staff. perhaps that 'manager' just supervises other staff and works on building new clients and putting fires out for the 1000 properties.

equally a new property manager without support, supervision or mentoring might be snowed under managing 10 properties.

 

[russellpeter]

I get asked this a lot.

It all comes down to the office and systems

we are looking to hire at the moment and have been asking this question to our potential staff member.

The most I have heard so far is 290 with a part time assistant.

we are currently sitting at 40 per staff member but we are in a growth stage and want to keep the level of service high.

most experts say 100 is a good number and this is where we are capping our staff at.

 

[S.T]

I was chatting to a PM yesterday, they have around 180 properties per PM but they have other peopel that do roles a normal PM would, eg they have a dedicated letting agent who just deals with letting and re-letting of property. So they use these other roles to allow their PM's to take on more properties.

 

[Kent Cliffe]

We are considered high service and low properties per manager. We have a cap of 100 properties per manager and each two property managers have one full time assistant. Plus a licensee to take slack off if anyone is learning/holiday/sick. Also, we have a specialist for PCRs and inspections.

Another thing to watch out for is BDM. Is the person you're talking to going to be your property manager? If not, who are they?

I'm also a little biased, because we don't use this model but I'm not a big fan off letting agents. They tend to have their incentives tied to leasing a property. This means they aren't as fussy chucking in someone into the property as they don't have to deal with it after the letting - were a property does.

I have heard the worst at being 200 properties and 1/4 assistant. This is crazy, especially if anyone is away.

 

[thepeoplesagent]

One of our offices has one of the biggest rental roles in Sydney. 1100 managements last time I heard. Most of the managers have 100+ properties each. Most of them seem to handle it ok.

And I agree with Tobe, don’t make your decision based on the agent’s fee. You get what you paid for. Many of these agents who jump in the game and charge cowboy rates usually end up going broke and taking your rent with them.

 

[mattysavager]

My office has around 650 properties and they are split between 3 property managers. Some clients own over 30-40 properties each, so the 'number' of managements per property manager is not necessarily indicative of energy per client.

We also have an assistant property manager, a leasing agent, me (financial administrator), receptionist, BDM and our Principal is hands on and does Saturday tenant inspections on rotation. In reality the workload of those 650 properties is shared between 9 of us.

The property manager for each property is still the primary contact for our clients, however having worked in task based and portfolio based offices, I am 110% confident that task based delivers better results and fewer mistakes.

I would give my IPs to a task based agency over a portfolio agency in a heartbeat.

 

[Lil Skater]

On average I see around the 200 property mark, at my old office this is what we managed. Only one full time assistant.

This is far too many, but I know of a couple of local agencies managing 300 per manager, however this is with full time assistants.

It also depends on the position on the property manager, if we're talking 130 properties, but the manager is also the department manager and running the department it may be too many depending on office procedures.

Personally I'm quite good at time management so 100 properties isn't a "full time" job so much, but I wouldn't want to manage too many more as every week is different so some weeks they'll be run off their feet, others will be really quiet.

I also like being hands on, meeting all my tenants, organising my own repairs, inspections etc. I enjoy my job and I don't really trust anyone else to have the same attention to detail as me..

I don't like leasing agents, BDM positions or task based management (ie. someone for maintenance only). This works for many agencies (like Matt above me, who I have no doubt is very capable), but I think it is an easier way for things to get overlooked and as an investor I want to speak to MY property manager.

Also, a lot comes down to the office procedures, and the individual manager. Some may drown with 70.

 

[Qlds007]

I have an interest in a property management Company here in Brisbane and the maximum we have any 1 PM look after is 125.

In saying that have employ 1 person to manage my 40 investment properties although they have too a wee bit more than just collect and reconcile the rents.

 

[locko24]

If you want to get something done, give it to someone busy!