MANAGEMENT:
IN-HOUSE EXPERTISE, OR
OUTSOURCED SPECIALIST?
Property management has seen more and more outsourcing in recent years.
But is this really the way to go?
Defining the task, and weighing up the variables
Sound property management helps to ensure that property
owners are shielded from significant future expenses, preserving
the property’s value, while also ensuring that the property
remains attractive to future investors. Property managers play a
key role in optimising the operational performance of a property
portfolio.
They take care of the daily operations of a development, making
sure the property is well maintained and remains attractive
to tenants. This directly feeds to long-term profitability, low
vacancy and good returns. Sourcing and securing tenants,
managing leases, managing relationships, contractors, handling
evictions, overseeing repairs and maintenance, managing staff
and budgets all keep the property in prime condition, relevant
and occupied; this leads to sustainability.
Here are a few things to consider when looking for a property
manager – whether in-house or outsourced.
Internal considerations
Competency
You need to ask if property management is a core competency
of your business, and decide whether or not you want that extra
responsibility. Having an in-house staff often means a greater
expense and more time spent managing your staff. This is time
and money that could be spent on other projects that could
potentially produce more revenue for your business.
Somerset Lakes Estate
Are expert tasks consistently keeping your employees from
contributing to your core business? Then it might be time to
consider outsourcing some – or all – functions.
While there are certainly a number of advantages to outsourcing,
there are just as many disadvantages. Property owners need to On the other hand, some developments find that having an
evaluate their situation carefully and look at the pros and cons in-house staff provides quicker response times and better
of each solution before making a commitment. There are good service at a lower cost. Others find that outsourcing leads to a
arguments on both sides, but no one solution fits all. Ultimately, decrease in service quality that can be harmful to the credibility
we must analyse each specific company, estate or development of their facility. In these cases, you might decide that property
and decide what course of action will best fit the company’s needs. management should be a core competency and keep it in-house.
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