Economies of Scale Part of being a good management company is being able to manage with the proper economies of scale. Gables operates in seven markets and in each of those it has at least 3,000 units.
For example, the company’s presence in Florida allows both its third-party clients and its own properties to get better rates on products and services. Due to his relationship with Gables, Forman was able to receive a better price on insurance.
This not only helps with pricing, but also allows the company to run all of its properties efficiently. “[Rheo, the] new property management software program [that Gables is using] also has helped manage my property better and some of the trendings,” he says. “Gables is very interested and very much joined in my success. If you are having a problem, [Gables] will put the resources and staff behind your property to bring it up to where it needs to be.”
Having flexibility in staff not only helps with problem properties. It also helps smaller properties – with 40 to 100 units – run more efficiently.
It’s expensive to staff a smaller property with a full property management team. However, Gables has found that it can share its resources. A smaller property will use the same maintenance manager and leasing staff as a nearby complex with 300 units that Gables manages.
“At a smaller property, we might have a leasing person on-site during lease-up, but after that there will be a sign on the door, that tells residents to ‘call for appointment,'” he explains. “As long as I’ve got a way to get a leasing person there in 15 to 30 minutes, I’m covered. You have to rethink the way you do everything.”
At most properties, the response time for a maintenance request is an hour or two. With this sharing system, Gables still falls in that timeline. “I’m sure a lot of people think ‘this is crazy, it will never work,’ but I think [smaller properties will] give us a more competitive advantage,” says Wheeler.