Property Management is a very detailed job and is best left to someone who is very good at detail.
There has been plenty of chat in the industry about Principals that don’t do or have nothing to do with Property Management, and I understand why.
There are two reasons. Reason 1 is that they’ve never had a background in property management. They are awesome sales people and simply don’t want to share their commission anymore with their principals and believe that they can go out on their own and make their mark, build their own empire. 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 that you need to have in that business. From personal experience, I can say that coming from a Property Management background has really been the core foundation of having a successful business long term.
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? Reason 2 is that property management can be very demanding and stressful. As a principal concerned with ensuring their compliance issues are continually met, trying to ensure that customers, clients and staff are well looked after, its easier for a business owner to step back from the Property Management side of the business to concentrate on working on the business, leading their teams, innovation and business development and sales.
Often entrepreneurs are essentially very creative and awesome at sales, but they are also generally not very good at detail.
Property Management is a very detailed job and is best left to someone who is exactly that.