There has been plenty of chat in the industry about principals who don't do, or have nothing to do with, property management. And I get why! Here’s my opinion.
There are generally two reasons.
1. They've never had any background in property management and they are usually awesome sales people and want to continue to focus on that.
2. From a cash flow prospective, they simply don't want to reduce their earning capacity by focusing on anything other than sales and lead generation.
I believe that as a principal, being involved in your property management department will give you a better understanding of your business and the role it plays in your business and also the role that you need to have in that business.
From personal experience and coming from a very strong property management background I feel property management has really been the core foundation of having a successful business long term in any market.
Although I understand that property management is a key component of a successful real estate agency, property management and business ownership don’t necessarily go hand in hand - why??
Property management can be very demanding and stressful.
As a principal concerned with ensuring that compliance issues are continually met and also ensuring that customers, clients and teams are well looked after, it’s easier for a business owner to step back from the property management side of the business and let team members handle it.
This way the principal’s full concentration can be put towards on working on the business, leading their teams, innovation, business development and sales.
Often entrepreneurs are essentially very creative and awesome at sales, they are also in my experience generally not very good at detail.
Property management is a very detailed job and is best left to someone who is exactly suited to that kind of role.
So in closing, why do principals not have much to do with property management? Because their time is better spent working on other aspects of their businesses and essentially that’s why they hire amazing property managers who are great at what they do.
Having a successful business means surrounding yourself with other people that are great at what they do, so you can focus on what you are great at doing.
Until next time... Loretta
ABOUT THE AUTHOR
Loretta Morgan has over 17 years' experience in the property industry, ranging from managing residential real estate to major commercial and industrial portfolios for private and institutional investors.
Loretta was a finalist in the 2011 REIQ Awards for Excellence - Commercial Property Manager of the Year category and also a finalist in the 2013 REIQ Awards for Excellence - Residential Property Manager of the Year. This year, Loretta was a finalist in the Sunshine Coast Business Women's Network - Young Business Woman of the Year, regional finalist in the Australian Institute of Management Excellence Awards and finalist in the Sunshine Coast Business Awards.
Loretta is also a member of the REIQ, Young Industry Professionals Advisory Panel.