Two things to keep in mind when considering hiring your first employee.
Are you a one-person property management company wondering when it's time to expand and hire additional staff? Making the decision to scale your business can be crucial for its growth and success. Here are two key factors to consider before taking the leap:
1. Sufficient financial resources. The first factor to evaluate is whether you have enough funds to sustain a property management company until you reach a specific threshold. In my opinion, aiming for around $50,000 to $70,000 is a good starting point. If you currently have this amount or have a reliable income stream to support your business, it may be an opportune time to explore expanding your team.
Having enough financial resources allows you to invest in hiring staff who can effectively run your property management operations. With one capable team member onboard, you can focus on core business activities while the additional support handles day-to-day tasks.
"Evaluate your goals, strengths, and potential for growth."
2. Portfolio size. The second factor to consider is the number of properties under your management. Before making your first hire, you should aim to reach a portfolio size of around 50 to 70 doors. This milestone indicates that your business has grown to a point where you can either self-fund the expansion or outsource certain tasks to a new team member.
If your current situation doesn't align with either of these criteria, it's worth reflecting on your goals and motivations. Ask yourself why you're in the property management industry and whether you're maximizing your potential earnings. If your focus and strengths lie elsewhere, it might be more beneficial to consider alternatives within your skillset.
If you currently manage a property management portfolio and are considering selling it, please feel free to reach out to us by phone or email. We buy portfolios at market rates and would be glad to assist you.