Max Capacity: How many properties can one person manage?

Question

Hi BP! I'm sure I'll get a range of responses for this. And I understand that larger scale operations increase their capacity by having teammates handle specialized roles (maintenance, bookkeeping, etc).

But I'm curious... if I start my own Property Management business... how many units can I manage before I go crazy? 50? 100? 200?!

Would love to hear from others on when they "hit tilt." And what range people think of as an ideal and "manageable" load for one person.

Thanks for the feedback!

Ted Kawabata · Answer

A little harsh there, Dick. But no worries. I catch your meaning.

I currently work as a full time property manager in Honolulu, leasing out mostly condos and apartments in Waikiki and the McCully area. Myself and one other manager take care of about 180 units. We have a full-time bookkeeper that handles all the accounting. But we are very low-tech, and limited by management and circumstances in terms of implementing a database or other common tools for the modern age. We handle our 180 just fine, but not much extra time on our hands. It’s hard to imagine going after a new client with a 20-40 unit apartment building. That’s why I ask ed the original question about capacity.

Anyway, this chatter has been helpful. Especially Kim’s responses above. Thanks for all who have shared their thoughts!

Ryan Murdock · Answer

@Ted Kawabata I scaled to nearly 200 units on my own before throwing in the towel and joining forces with a bigger management company. About 25-ish were mine and the rest managed for others. I did everything myself other than sub out much of the maintenance. It was pretty torturous - upwards of 80 phone calls per day between tenants, owners, contractors, etc some days. No escape. I wouldn't recommend it.

I currently self manage 45 of my own units using Rent Manager software and for the most part it's a breeze. I could probably double that before it got real taxing again.

Kim Meredith Hampton · Answer

One person can take care of $100+ units if they have third party systems in place; i.e., appfolio contact center for your maintenance calls, process server to post your three day notices, code boxes on your rentals for self showings, or even virtual assistants for the behind the scenes items like preparing leases, renewals violation letters etc...just depends on how you want your company set up and if you want employees?? Technology can be your friend in this business and helps create efficiencies we never had 5-10 years ago

Dick Stevens · Answer

Why don’t you start by trying to get ANY clients.  Worry about getting too many later.

Kim Meredith Hampton · Answer

I think between 50-100 is typical for a one man operation. There are so many systems and third party things that you can put in place to help you.

If you have never managed or aren't sure of the statutes or area municipalities rules, I would get as much education as possible. Hawaii has one of the largest chapters of NARPM in the United States. Do you have great education right at your door step

Dick Stevens · Answer

You said you were starting your own business, not asking about expanding an existing businesses.  Therefore, my original response was spot on.

Duc Ong · Answer

@Ted Kawabata I would recommend beefing up your tech usage and implementing systems to replace the things that can be outsourced.  That way, you can focus on the tasks that are your highest and best use.

Drew Y. · Answer

@Kim Meredith Hampton when you say "one person" shop is that mean leasing, repairs, intake for 100 properties by 1 person or do you mean one manager with responsible for a that team . (4 people : Manager, handyman, leasing intake)

Max Capacity: How many properties can one person manage?

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