Are Multifamily Property Managers Paying Too Much?

The recent report by NAA states that for every group of 45 apartments, at least one full-time employee has to be added to the payroll. Expensive US wages, labor shortage, and talent retention remain the top concerns for owners and operators.

At the same time, remote working is becoming mission-critical. According to the report, Property Managers need to step up their game due to bad resident reviews and increasing expectations. But our collected data from the ground gives us a more detailed and nuanced picture of the problem.

About 80% of Property Management tasks can be done on a computer. Also, about 85% of Property Management tasks are repetitive in nature. This means an employee can be trained in a matter of weeks, if not days.

Residents demand support as and when they need it. The volume of interactions is highest in the first two days and the last two days of the month. This trend is, in fact, predictable and repeats consistently every month. Also, over the course of the year, about a third of the interactions and about half of the leads came from outside of the typical office hours of 9 AM to 5 PM. This variance creates a major staffing challenge.

With the above being the case, no wonder Extenteam's footprint has been rapidly growing among multifamily owners/operators.

The cost per basic US employee is typically 1.25 to 1.4 times the salary, depending on certain variables. In a typical case, a US employee with a salary of $35,000 would cost the company up to $49,000 per year. With the integration of one Extenteam agent, the cost drops to $19,000 per year. For the same work, this represents savings of $30,000 per year per team member!

Extenteam has been in the industry for nearly ten years, building out our talent network and team management best practices. The goal here is not to replace, but rather to "supercharge" the property management team so that the owner-operators can focus on more strategic aspects of their business.

*Extenteam provides remote agents that are specifically skilled and trained to fulfill the needs of property managers, vacation rental operators, and hotels.