The Science of Growing Your Portfolio
Learn the steps to get your property management company's portfolio growth down to a science.
Get the GuideAs a property manager, you know that maintaining your properties efficiently is an integral part of your success. But if you’re like many property managers, you probably started out by relying on vendors to deliver maintenance services.
As your portfolio grows, though, building an in-house maintenance team can put your company at an advantage. You’ll have better control of requests and projects, quicker response times, and you can even increase profits.
This blog post will guide you through the process of building a property management maintenance team, highlighting the benefits, hiring strategies at different growth levels, and how to scale your team in line with your company’s growth.
The Benefits of an In-House Maintenance Team
Having an in-house maintenance team provides several key benefits, including:
- Greater Control: With an in-house team, you have direct oversight of maintenance activities. You can make sure that tasks are completed to your standards and schedules are adhered to.
- Faster Response Times: In-house teams can respond to issues more quickly, minimizing disruption to tenants and reducing the risk of more serious damage to properties.
- Cost Efficiency: While there is an initial investment in training and equipment, in-house teams can be more cost-effective in the long run by reducing reliance on expensive external vendors.
- Improved Quality: In-house teams develop a deeper understanding of your properties and their specific maintenance needs. They can catch issues much earlier, even before a tenant reports them.
- Revenue Opportunities: Bringing maintenance in-house can open up new revenue streams, such as offering third-party services or creating a separate maintenance company.
Hiring Strategies at Different Growth Levels
As your property management business grows, your maintenance needs will evolve. Here’s a guide to who you should hire at different growth levels, corresponding to door counts:
1. Brand New Business (0–100 Doors)
At this stage, you are likely managing everything yourself, so it does make sense to focus on networking with reliable vendors in your community and building relationships that will support your growth.
At around the 100-door mark, you can consider hiring a part-time maintenance coordinator to handle scheduling and communication with vendors.
2. Small Portfolio (100–200 Doors)
As you get closer to 200 doors, it’s time to hire your first full-time maintenance coordinator. This person will be responsible for creating efficiencies in your processes and facilitating consistent communication with tenants and vendors. Depending on the class of properties you manage, you may need additional coordinators to handle the workload.
3. Medium Portfolio (500–600 Doors)
At 500–600 doors, consider hiring a boots-on-the-ground maintenance technician. This role can be part-time or full-time and may still be a 1099 contractor. This technician will handle routine assessments, move-ins, move-outs, and minor repairs. You may also need additional coordinators to manage the increased volume of work orders.
4. Large Portfolio (1,000–1,200 Doors)
By the time you reach 1,000–1,200 doors, having an in-house maintenance team is essential. This team should include multiple technicians and coordinators to handle the workload efficiently. At this stage, you might consider splitting off your maintenance team into a separate entity to offer third-party services and protect your property management company from liability.
5. Very Large Portfolio (2,400–2,500 Doors)
For portfolios exceeding 2,400 doors, your maintenance team should be well-established and highly efficient. Focus on refining processes, improving inventory management, and leveraging technology to track performance and optimize workflows. Consider hiring a maintenance manager to oversee the team and ensure continuous improvement.
Tracking Your Maintenance Team with Company Growth
Scaling your maintenance team in line with your company’s growth requires strategic planning and continuous adaptation. Here are some tips to help you grow your team effectively:
1. Anticipate Growth
Plan ahead by staffing up for your growth. Ensure you have the right number of team members for the work that adding new properties to your portfolio will bring. This proactive approach prevents maintenance issues overwhelming your staff and ensures a high level of service for tenants.
2. Leverage Technology
Utilize property management software to track work orders, analyze data, and make informed decisions about hiring and resource allocation. Automation tools can help streamline processes and improve efficiency.
3. Focus on Preventive Maintenance
Be proactive by implementing preventive maintenance strategies to manage assets and reduce the risk of unexpected repairs. Regular evaluations and assessments can help identify potential issues before they become emergencies.
4. Invest in Training
Provide ongoing training for your maintenance team to make sure they are equipped with the latest skills and knowledge. This investment in your team will pay off in higher-quality work and increased efficiency
5. Monitor Performance
Track key performance indicators (KPIs) to measure the effectiveness of your maintenance team. That could include response time, the time it takes to close out a maintenance ticket, repair costs, and even tenant satisfaction. Use this data to identify areas for improvement and make adjustments as needed
6. Foster a Positive Work Environment
Create a positive work environment that encourages open communication and continuous improvement. A motivated and engaged team will be more productive and provide better service to tenants.
7. Adapt to Changes
Be prepared to adapt your processes and staffing as your company grows. Review your workflows regularly and make adjustments to make sure they remain efficient and effective.
Building a property management maintenance team is a strategic investment that can enhance your competitiveness in the market significantly. By understanding the benefits of an in-house team, hiring the right people at different growth levels, and scaling your team in line with your company’s growth, you can ensure that your properties are well-maintained and your tenants are satisfied.
Remember, the key to success is proactive planning, leveraging technology, and continuous improvement. With these strategies in place, you’ll be well-equipped to manage your growing portfolio and achieve long-term success.
To learn more about maintenance workflows, check out our maintenance ticketing playbook. To learn more about building out maintenance teams, take a look at our guide.
Finally, if you’re ready to bring on software that can help you build out your in-house maintenance, check out Buildium’s 14-day free trial, no credit card required, or schedule a demo.
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