Self managing larger properties is a complex undertaking. First, you are staffing a business that does not demand high wages. This is the source of significant performance issues as there is a definite correlation between pay grade and capacity. Second, your objective as the principal is that the management team does not require a great deal of input from yourself. The process of actively overseeing this effort is the key and the weekly meeting is a good lynch pin for assuring results.
The management team is best overseen by having a clear set of broad objectives that are regularly monitored by you the principal. The absentee owner is often the abused owner. A useful and possibly even critical component in this is the weekly staff meeting. And the key to the weekly staff meeting are the earlier mentioned objectives.
WEEKLY
What objectives should we have for our residential properties? I would break down these as follows:
Property condition and development, Customer service, Marketing and leasing pipeline, Revenue, Collections, Accounting, and Banking and Finance
Banking and finance can be ignored for most of the day to day operation as this is either handled by the principal or non-property specific resources.
Property condition and development
The critical components here are to establish effective lists of deferred maintenance and capital plans. Identify internal and external resources, develop schedules and work to deliver projects on an established timeline. The capital plans can directly impact revenue growth. The schedules and budget management are weekly meeting requirements.
Customer Service
Develop metrics for reporting at the weekly meeting to gain a sense of the quality and progress of customer service the staff is delivering. For example, how many calls were received and their disposition.
Marketing and Leasing Pipeline
Capture calls, online contacts, walkins, applications, and leases complete. Overtime, these efforts will become an established cycle that predicts leasing versus turnover.
Also, develop plans to improve and strengthen resident retention. Measure results through weekly reporting of average tenancy, number of renewals, etc. Each lost resident can cost ,500 to ,000 in make ready costs depending on market, construction and other factors.
Revenue and Expense
Reporting of revenue and expense each week prevents the management staff from becoming lacksadaisical assuring cash flow from week to week and month to month. Additionally, if results begin to flag a weekly meeting helps identify and act on the issue quickly.
Collections
Effective collections can significantly augment cash flow for the business. The company needs an effective process that deliver significant ongoing cash to the business via recovery of bad debt.
Accounting
Accounting provides for good investor reporting, assures better relations with banking and leads to a smooth running business machine with satisfied vendors, investors, and profits for the principal.
Much more can and will be said as we break these down in future articles, but this provides a basis from which to launch for specific information.
Wrapping up the weekly meeting establish a routine of capturing and following up actions from each meeting to assure the meetings effective and serious application to the business by the management and property staff.
Operation and the Weekly Meeting WEEKLY