“I read and hear about different types of structures in property management; pyramid – portfolio – task management and I don’t know what’s right for us.
Do I need a Business Development Manager or a Leasing Consultant to grow my Department? If not now, when?”
There is no generic staffing structure that will work more efficiently in every Property Management Department. Each company is different for a variety of reasons – staff experience, area demographics, growth activity, State legislation, staff availability – all have an effect on the structure that will allow it to operate at peak efficiency.
Over recent years there has been considerable debate in our industry regarding which one is better and why.
As an example, the three structures below would apply to a rent roll of 600 properties with the Administration positions being a percentage of the receptionist, bookkeeper and principal (1.5 FTE). The Pyramid Structure would have a total staff to properties managed ratio of 1:92 – the Portfolio Structure of 1:109 – and the Task Structure of 1:80.
Whatever structure is adopted, the following criteria must always be considered –
- What affect will an additional 100 properties on the structure – where will it impact and how many additional staff (if any) will be required?
- What is the ‘saturation point’ for the property managers in the structure – the maximum number of properties they can manage?
- How will the structure affect the communication between the client and the company? Who and how many of the team will they have to communicate with to find out pertinent information regarding their property and its tenancy?
- Who will handle the new business opportunities and will these be marginalised due to operational workloads?
- What career opportunities are there within the Department for all members of the team to aspire to?
- How will annual and personal leave affect the operation of the Department?
- Can the security of your rent roll be at risk due to the influence of one person within the Department who has the majority of the contact with the clients?