Todd Breen has owned a property management company in West Palm Beach for 30+ years. Todd believes that the people who get it done, do so because they have clarity. Case in point, in 2001, Todd decided he wanted to have a 4-hour work week. Today, this is now his reality.
Does your business serve you or do you serve your business? In order to change, you need to begin with the end in mind. Todd’s session provides you the tips on how you can work smarter not harder.
Stop managing property. You are a business owner.
Control freaks manage property and think they can’t trust someone else with their properties.
NARPM survey in 2014:
For every $2 in management fees earns $1 in other fees.
How do you increase your dollars per door?
- Start maximizing your fees.
A lot of companies charge owners but not tenants or vendors.
- Increase your existing fees.
Example: mandated tenants buy liability insurance. This added $3 per door.
Cut your dollars per door:
- If you say, “we are staffed for growth”, this means you are overstaffed and under profitable.
Same NARPM survey from 2014:
The average company spends 54% of their revenues on staffing and has net income of 16%.
If you can reduce your staffing, this is easy “low hanging fruit” to take advantage of.
Case Study: Dave & Dora:
- They have a 37% average staff cost.
- Their income is 38%.
- 33% of their budget is on local staff
- 4% of their budget is on outsourced staff.
Why is that important? Outsourced staff is a problem you don’t have to deal with or solve yourself.
Excess capacity is a profit killer.
- Sweet spot for staffing is 300 doors per employee.
You need to pay by the door vs. paying by the staff member. Here are examples of ways to outsource certain departments, so your managers are doing fewer tasks on a larger portfolio:
How do you outsource and keep your sanity? Draw out your workflow!
If you want to grow your business:
- Maximize your revenue
- Minimize your cost per doors
- Reduce excess capacity
- free up some time and money for growth
Case Study: Dave and Dora:
In 2014, They were making $124/month in revenue and profit was $25. (see example slide)
After they did a FEMAX campaign, and started earning more dollars per door, the expenses jump too because they are working on the business instead of in the business.
In order to work on the business, you need new revenue sources and get yourself out of the business.
How to align your staff for growth
- Business Development Manager
We should all have one but they cost money. If you did some of the Fee Max, reducing costs and got more portfolios – this could be realistic
- Is your staff motivated to grow?
As you grow, your staff makes more. As you lose accounts, they make less. Aligning your staff to want to grow is critical to growing.
Case Study: Dave and Dora
- They had a clear vision for what and why.
(They wanted summers in France and are now spending their third summer in Europe this year)
- They had a mentor to help them grow
- They had a master plan
Fee Max + Outsourcing = Growth
- Commit to your business serving you!
- Commit to increasing your dollars/door
- Commit to reduce your costs/door
- Commit to rewarding relevant staff for growth
- Commit to larger marketing budget
- Commit to increasing your BDM staff
Todd is the Owner/Broker of Home Property Management in Palm Beach Gardens, Florida where he has worked since 1985. Since he became an instructor for the Property Management Academy in 2005, Todd regularly speaks at property management conferences in the USA, Australia and New Zealand.
He developed all of the training available online at VirtuallyIncredible.com which has been seen by thousands of property managers around the globe. Todd’s vision for the property management office of the future combines the best of technology and outsourcing to deliver world class customer service.
A father of four and salt water enthusiast, Todd and his family can often be found scuba diving or boating. He and his wife Lucy’s regular travel to and from the Philippines and Australia/New Zealand keeps them in touch with staff and customers in their fast growing global business.