Bottom Line Staffing

What impact does a good property manager and Maintenance Manager Have To Your Bottom Line.

As an expert on multi-family property management, I’ve seen firsthand the impact that a good property manager and maintenance manager can have on the bottom line. A well-managed property is more likely to be rented, have lower turnover, and require less maintenance, all of which can lead to significant financial savings.

John Cullens, CEO, CXC Talent

Here are some of the specific ways that a good property manager and maintenance manager can impact your bottom line:

Increased occupancy rates: A good property manager will be proactive in marketing and leasing your units. They will also be responsive to tenant needs, which can help to reduce turnover and keep your units rented.
Lower turnover costs: When tenants turnover, it costs money to find new tenants, clean the unit, and make repairs. A good property manager can help to reduce turnover by providing excellent tenant service and resolving any issues quickly.
Reduced maintenance costs: A good maintenance manager will be proactive in scheduling and completing repairs. They will also be able to identify and fix problems before they become major repairs. This can save you a lot of money on maintenance costs.
Improved resident satisfaction: Happy residents are more likely to renew their leases and recommend your property to others. This can lead to increased occupancy rates and higher rents.

In addition to these specific impacts, a good property manager and maintenance manager can also help to improve the overall value of your property. This can make it easier to sell or refinance your property in the future.

The financial impact of a good property manager and maintenance manager can be significant. For example, let’s say you own an apartment property with 300 units. Each unit rents for $1500 per month. If you can improve your occupancy rate by just 1%, you will generate an additional $30,000 in rent revenue each year. And if you can reduce your turnover rate by just 5%, you will save $15,000 in turnover costs each year.

In addition, if you can reduce your maintenance costs by just 10%, you will save $150,000 each year. And if you can improve resident satisfaction by just 5%, you will increase your occupancy rate by 0.5% and your rents by 0.5%, which will generate an additional $15,000 in revenue each year.

So, in total, you could potentially generate an additional $210,000 in revenue and save $165,000 in costs each year by hiring a good property manager and maintenance manager. This is a significant financial impact that can have a big impact on your bottom line.

The cost of hiring a good property manager and maintenance manager can vary depending on the size and complexity of your property. However, the financial benefits of hiring good staff can far outweigh the costs. If you are serious about maximizing your profits from your multi-family property, then hiring good property managers and maintenance managers is a must.

Calculating the financial impact of hiring efficient staff:

In the example above, we assumed that improving efficiency through effective hiring can increase profitability by an average of 2.5%. If we use the following formula, we can calculate the financial impact of those efficiencies:

(Profitability increase) * (Annual revenue) = Financial impact

So, in our example, the financial impact of hiring efficient staff would be:

(2.5%) * ($450,000) = $11,250

This is just the financial impact of the increased profitability. We haven’t even factored in the reduction of financing expense from efficient hiring of staff.

The cost of financing is trending at 5.5%. If we assume that hiring efficient staff can reduce the cost of financing by 0.5%, then the financial impact would be:

(0.5%) * ($450,000) = $22,500

So, in total, the financial impact of hiring efficient staff would be $11,250 + $22,500 = $33,750. This is a significant financial impact that can have a big impact on your bottom line.

A good property manager and maintenance manager can have a significant impact on the bottom line of a multi-family property. With CXC Talent as your partner, we’ll provide the top talent you expect. Talent that can bring you potential increase occupancy rates, reduce turnover costs, and improved resident satisfaction.

If you are serious about maximizing your profits from your multi-family property, then hiring CXC Talent to deliver the topproperty managers and maintenance managers is a must. Here’s how we’ll deliver for you:

Do your research: Before you start interviewing candidates, take some time to research the market and find out what the going rates are for property managers and maintenance managers in your area. This will help you set a realistic budget and avoid overpaying for staff.
Create a job description: Once you know what you’re looking for, it’s time to create a job description. This document should outline the responsibilities of the position, the qualifications that you’re looking for, and the salary range.
Screen candidates carefully: Once you have a pool of candidates, it’s time to start screening them. This process should include phone interviews, in-person interviews, and reference checks.
Make an offer: Once you’ve found the perfect candidate, it’s time to make an offer. Be sure to include all of the details of the position in the offer letter, such as the salary, benefits, and start date.
Provide training: Once your new staff is on board, it’s important to provide them with training. This will help them to learn the ropes and become productive members of your team.

By following these tips, you can hire good property managers and maintenance managers that will help you to maximize your profits from your multi-family property.

Additional resources:

National Apartment Association: https://www.naahq.org/
American Property Management Association: https://www.ampa.org/
Institute of Real Estate Management: https://www.irem.org/

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