740: Third Party Property Management Falls Short

To get the maximum return on Multifamily properties, in-house management is a requirement. Third party managers are focused on chasing new and larger clients, while your property is a lesser priority. They also get paid on revenue, so they don’t pay as much attention to managing expenses. Additionally, they move their best employees to properties owned by their larger clients. Todd Dexhierner, partner of Endurus Capital, improved his occupancy 6-7% across his properties, and increased NOI 40% after switching to in-house management. It’s hard to outsource caring, and no one cares more about your property as much as you and your investors.