Business Management

The Secret to Scaling a Large Property Management Company (or Any Business!)

Expertise: Real Estate Investing Basics, Real Estate Deal Analysis & Advice, Mortgages & Creative Financing, Landlording & Rental Properties, Business Management, Personal Development, Flipping Houses, Commercial Real Estate
151 Articles Written
scale-business

A few weeks ago, I was at a conference with fellow BiggerPockets blogger Chad Gallagher. He is owner and founder of a property management company called Slatehouse Group. I have met with many management companies over the years, but none that have grown as quickly or successfully as Slatehouse. I wanted to understand how they grew so fast, so I decided to turn the camera on and have a talk with Chad.

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Why Systems Are the Key to Scale Your Business

Chad explains that no matter what type of real estate investing that you’re doing, the best and most efficient way to scale is by using systems. Systems make things repeatable, over and over again. The goal isn’t to take people out of the equation, it’s to give the people an easy process to follow in every circumstance. That way, there is no guesswork as to how to react to a situation or what to do next. In a company like Chad’s with many employees, systems allow teammates to predict each others’ next move and also to better support one another since they both know the steps in the process. For a management company, a prime example is the in-the-field manager dealing with the tenants and the service team handling tenant work order requests. There needs to be a great system of entering work orders, following up on the work order progress, and confirming that the work has been completed for both team members to be successful in their role.

Scaling With Tech

Chad’s company relies heavily on technology to implement their systems. They use everything from cloud-based technology to phone apps to increase productivity with their company. One of the biggest excuses that you hear from other investors is “I’m not a tech person.” I’m actually in that boat myself, as I don’t automatically seek out new technology to help me as Chad does. That said, I have found that most of these services are so user-friendly that the learning curve is very manageable.

What I got from Chad is that systems and technology are imperative to growing today’s property management company. These rules also apply to all other companies looking to grow big in today’s market. To hear what types of systems Chad is using for his real estate business, be sure to watch the video!

If you use systems or technology to optimize your business, be sure to share them in the comment section.

Have a great and profitable week!

Matt Faircloth, Co-founder & President of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.

    Tim Tepes from Northampton, PA
    Replied over 1 year ago
    Great interview….looking to buy more units in PA …or part net up on some larger complex….Looking forward to stopping in and see your office Chad
    Matt Faircloth Rental Property Investor from Trenton, NJ
    Replied over 1 year ago
    Chad is the man!
    Thomas D.
    Replied over 1 year ago
    This video and subject hit perfectly on what I am currently working on. While we are small, managing 237 doors in a town of 8k. I would love to find out more about the automated scheduling. Currently we are excel and paper with only in person transactions i am going thru programs now for modernizing, so we have a lot of growth potential. The challenge is finding those processes to get implemented.
    Craig Griffiths Investor from Clinton, Ohio
    Replied over 1 year ago
    love the interview couple questions as we have a new prop mgmt company (just managing our 400+ units) what scheduling app are you using for showings we use appfolio as well for work orders, what are you using in conjunction with that are you using appfolio full accounting…we like the rest of the software but have found accounting frustrating. thanks in advance for any advice
    Sri Ram Rental Property Investor from West Palm Beach, FL
    Replied over 1 year ago
    I have reviewed the app folio. I found it expensive and the accounting I found it better in Rent manager
    Sri Ram Rental Property Investor from West Palm Beach, FL
    Replied over 1 year ago
    Where are your units.? Are you in florida?
    Sri Ram Rental Property Investor from West Palm Beach, FL
    Replied over 1 year ago
    Good interview Matt and Chad. What scheduling app are you using for showings?
    Sri Ram Rental Property Investor from West Palm Beach, FL
    Replied over 1 year ago
    Hi Chad I am assuming your management company is in north east states. Is that correct?