Is it now impossible to owner-manage? Unlikely!
We have been managing our property just fine all along, so why wouldn't we continue to do so? Active management is certainly getting more complicated - aging assets, laws & regulations, employee issues, changing needs - and it's not getting easier. Are we ready to handle a crisis?
Sure, some of us have considered working with property management companies but there's always the worry since they are not necessarily a partner or have an owner-mindset. Some management firm relations start off with good intentions but inevitably gaps form.
If we are no longer connected to the on-site staff, that could win some time - sometimes it's demanding when we don't have the right team. It seems acceptable to give away some percentage of the gross revenue, but this directly hits the bottom line and costs keep creeping up. Are we truly safe from "Failure to Maintain" risks? Is the preventative maintenance only really maintenance? Are the residents - my customers - actually happy?
Not having a pulse on our asset was unacceptable. Generic reports don't describe what is really happening. Management firms have no incentive to share their knowledge and few help build memory in the business. It's a dependence similar to the risk of losing a long-time employee - when that person leaves, that insight leaves with them if you don't have intimate knowledge of their activities.
What if we could leverage all the years of property knowledge while getting an edge on modernizing the business? Perhaps our children are interested and we've groomed them to fit that role. The challenge is often connecting the dots from what works (so why change) to what will work best for us in the future.
Never let a crisis go to waste! We didn't have a choice but to modernize and modernize fast because of an incident that impacted the business several ways. Today, the business runs like it always did with happy residents, happy employees, and better net operating income that is growing nicely. Reserves are in place for emergencies. Risks are mitigated. Keystone habits cover all aspects of the day-to-day operations. As owners, we are spending more time listening, prioritizing and coaching.
This blog is going to be about our journey getting to where we are today. We see tremendous value in our active-owner/manager experience and we want to give you an edge - your new partner in de-risking and improving your property.
