Choosing between a large or small property management company can be a challenging decision for any property owner or investor. Both types of companies have their pros and cons, and the best option depends on your goals, preferences, and budget. In this article, we will explore some of the factors that can help you make an informed choice.
One of the main differences between large and small property management companies is the range and quality of services they offer. Large companies may have more resources, staff, and technology to handle various aspects of property management, such as marketing, leasing, maintenance, accounting, and legal compliance. They may also have more experience and knowledge in managing different types of properties, such as residential, commercial, or mixed-use. However, large companies may also charge higher fees, have less flexibility, and provide less personalized attention to each client. Small companies may have fewer services, but they may also have lower costs, more customization, and more direct communication with the property owners. They may also have more local expertise and connections in the market they operate in.
While I agree with much of what has been said herein, as a small company (regional with 100 properties and a balanced portfolio)we seldom get invited to propose our services on the larger quality deals. Recently an asset manager suggested that a client use us on a 200,000 sf warehouse. He was told that we aren’t large enough. It can be frustrating to be perceived to be small.
I belive the down side of large companies are the lack of custom made services, high price due to large structures and, in some cases, delays of work due to excess of admin work, in other hand, smaller companies may struggle on the technical support, and certifications.
I agree that the larger firms have fewer customizable options for the more particular ownership groups, and for those looking for a "boutique" approach to Property Management, a smaller company may be the way to go. However, the larger companies also are typically more established and having been around longer, they probably have been through some trials and tribulations that some smaller organizations have not yet experienced. In my opinion, this would give the larger company the upper hand. That's not always the case, though. Customer service is my #1 priority with clients and ownership groups, and the smaller company would likely offer greater attention to detail and more of a focus on client's needs.
Au delà de la taille et des moyens que détient la société de gestion immobilière il est très important de choisir une structure ayant un track record qui se calque parfaitement à la typologie d'actifs sous gestion, une société de gestion spécialisée en actifs logistiques ne pourra jamais avoir l'expérience d'un gestionnaire d'actifs retails et vice versa.
One must also consider the type, size and complexity of the asset. What is the target market, large international corporate or small occupiers. Local or global players.
Another factor to consider when choosing between a large or small property management company is their reputation and reviews. You want to work with a company that has a proven track record of delivering results, satisfying customers, and maintaining high standards of professionalism and ethics. You can check the company's website, social media, and online platforms to see what their clients and tenants say about them. You can also ask for referrals from other property owners or investors who have used their services. Look for a company that has positive feedback, testimonials, and ratings, and avoid those that have complaints, lawsuits, or negative reviews.
Reputation is key, but keep in mind achieving high approval from users is difficult in the industry as you always have complaints no matter what you do, so measure the level of approval with this industry specifically
A third factor to consider when choosing between a large or small property management company is their communication and rapport with you. You want to work with a company that listens to your needs, respects your opinions, and keeps you updated on the performance of your property. You also want to work with a company that you can trust, rely on, and get along with. You can gauge the communication and rapport of a company by how they respond to your inquiries, how they handle issues or conflicts, and how they treat you as a partner. Look for a company that is responsive, transparent, and courteous, and avoid those that are unresponsive, secretive, or rude.
Look for a company that sees you as a valuable client, What I mean by this is, your business needs to be significant for the size of the management company being chosen.
A fourth factor to consider when choosing between a large or small property management company is your own goals and expectations for your property. You need to have a clear vision of what you want to achieve with your property, such as increasing income, improving occupancy, enhancing value, or reducing expenses. You also need to have realistic expectations of what a property management company can do for you, such as how much they can charge, how fast they can lease, how well they can maintain, or how often they can report. You need to find a company that aligns with your goals and expectations, and that can deliver on their promises. Look for a company that understands your objectives, offers solutions, and provides evidence, and avoid those that overpromise, underdeliver, or mislead.
A fifth factor to consider when choosing between a large or small property management company is their contract and fees. You need to read and understand the terms and conditions of the contract before signing it, and make sure you are comfortable with them. You need to know what services are included and excluded, what responsibilities and liabilities are assigned, what duration and termination clauses are applied, and what dispute resolution mechanisms are available. You also need to compare the fees and charges of different companies, and see what value they offer for your money. You need to find a company that offers fair and competitive rates, and that does not have hidden or unreasonable fees. Look for a company that is clear and honest about their contract and fees, and avoid those that are vague or deceptive.
A sixth factor to consider when choosing between a large or small property management company is their size and fit for your property. You need to assess how well the company matches your property's size, type, location, and condition. You need to find a company that has the capacity, capability, and compatibility to manage your property effectively and efficiently. You also need to find a company that has the culture, values, and personality that suit your style and preferences. You need to find a company that is not too big or too small, but just right for you and your property. Look for a company that is adaptable, flexible, and compatible, and avoid those that are rigid, inflexible, or incompatible.
This is my No1 criteria. if you are too small then you will struggle when dealing with the management company. if you are too big then you will face issues in service delivery
In my experience it is all about a sometimes trite statement but ‘Small enough to care, big enough to cope’. You want a team that still remember who the customers are and manage interactions well, and then also large enough so that a couple of issues in a similar discipline don’t wipe out the resources. That size and shape will differ depending on your need. A single block or building will take a very different approach to a nationwide multi-site.
In my experience, choosing the right size is correct when whoever is chosen helps deliver or exceed your investment goals. I would look more to experience and market strength for your asset type. It’s a given they can deliver budgeting/banking/financials and operate on your platform. It’s more about making the right match, than size.
Choosing between a large or small property management company depends on your preferences and needs. Large companies may offer more resources and services, but could be less personalized. Small companies may provide a more tailored approach, but with fewer resources. Consider factors like property size, budget, desired level of communication, and the services you require to make an informed decision.
Choosing between a large and small property management company hinges on factors like your property size, required services, and budget. Large companies offer extensive resources, expertise, efficiency, and brand recognition, beneficial for sizable portfolios and broad needs. Small companies provide personalized service, flexibility, local insights, hands-on management, and strong client relationships, making them attractive for tailored approaches and closer collaboration. Considerations are your property size, services, financial aspects, reputation, communication, and management approach. Ultimately, the decision rests on matching your priorities and property circumstances with the strengths of each company size.
Consider property size, communication preferences, local market knowledge, service offerings, fee structures, and technology. Assess client references, reviews, and interview representatives from both small and large property management companies to align with your goals and preferences.