Property Management: Is it better to outsource maintenance or bring it in house?



okay so the first one that's got six votes property management company has several properties around one city when is it time to hire a full-time handyman what's the best way oh just got outvoted I'm just sorry I'm gonna have to drop now she's getting Algona what's the best way to structure his payment by hourly by hour job salary or any other okay so what you're talking about here and I see the name is L me hope I got that right his in-house or outsourcing all your maintenance because most people don't have an in-house maintenance person right off the bat I wish Joe was on audio at Joe if you want to type up a response you can comment below that question I want to see Joe's answer as well but first I'd love to know what several properties means because there's kind of a thumb rule of one full-time maintenance guy per hundred doors now that give and take you know if they're all dumps and they're old or if they're brand-new homes or if they're an apartment complex so usually around I've seen this question around 80 doors or so Chad wouldn't you say when you start looking at hiring your own hand man yeah I can't really remember yeah that's great so we see some where they hire like a certified HVAC person if you're in an area like Texas or somewhere where that's the mark-up is much better like an HVAC guy you know you pay him 20 to 30 bucks an hour and it charges 85 bucks an hour so it's a larger spread on handyman stuff it's usually a shorter spread like those guys can make wherever depending on where you have a 15 10 to 20 an hour for handyman and you can only bill it at like 35 to 65 so you want to look at where the profit margin is also at your properties where are you spending the most money what type of repairs are you doing most often then when it comes to hiring one get ready to manage an employee and it so if you hire the cheapest handyman you can find get ready to manage that and now you're stepping into the area of you're not managing properties you're managing humans so I like outsourcing as much as possible with good quality vendors and you saw Camilla broad up a maintenance markup if you're adding doors so you know for example our lawnmower doesn't have to market everything else he can bill us and at first you know I was like eighty doors or whatever and he gets him Oh eighty doors without having to market anything else well as we're growing he I can point out to him hey we're growing your business and so we help each other out in that way and the keep that keep the cost down and everything else so what is the best this is a multi-level question there when is it time to hire a full time handyman when you're ready to manage a full time handyman and I don't know if I'd start full-time you'll get better one there we did talk about revenue sources so you know here's how I know this doesn't work out if you go to the NAR Prime events or other things they'll have panels on hand on in-house versus out of house maintenance and you'll have one guy up there saying my maintenance company makes more than my management company and they're cranking maintenance they have guys with trucks everything they have a full blown maintenance company I've done that and I've had that and then you'll have the guy who outsources all of his maintenance and says I make X amount without touching it so it this one is not figured out in there's not a right way like most of us do applications the same way are very similar but we don't do maintenance the same it really depends on you and what kind of a person you are and how you want to deal with it I don't think there's a right way on that one Chad you want to weigh in on that one that's a deep question yeah really that's yeah it really is like some people love it some people don't just depend and the funny thing is so just you know where we're at we have three different offices in three different cities one of our offices so we got to in bigger cities one in a smaller city one of our offices does have some handyman that we hire full-time one of them outsources area and the other to outsource everything so we actually do both and the short answer is well I I don't know that with one way is better than the other it kind of depends on who you have and when I'm a jobs you want to hire out so and also let me just add we've done it both ways a lot of times and we find we lose money on the handyman type so at least we don't make very much money I mean maybe breakeven unlike the handyman type stuff we make where we make money is on the routine stuff we're like turning on all the sprinklers for a year turning off the sprinklers turning on swamp coolers her item things where it's you know it's 35 bucks to mow each lawn not the hourly stuff but yeah you guys ran lawn mowers for a long time like drywall jo-jo points out over there drywall is like one of those things where you got to go back and it just takes so much time going it's just hire it out you know so it kind of depends on how much your market will allow you to charge because honestly your profit margin may be less than what you'll get if you decide to find a good vendor and do a maintenance markup or advertising deal with that vendor and there's vendor management you know that I job or salary I do I make them take a disc test profile so you profile them there's a free one at Tony Robbins calm a disc test because they're motivated differently so don't do it by based on what you like do it on them and I one of the companies I consult for right now as a full-blown manic maintenance service they have six guys on staff I dis test them you might think I want them to be motivated like me with a per job like structure you know where they get an incentive for finishing stuff faster they don't think that way this is my big caution if you have a sales like you know if you finish more work orders or whatever you try to build that in typically these guys if they thought that way they wouldn't be a handyman so I profile them and I give them an incentive package that works for them they usually just like a good hourly pay and if they don't work that way get rid of them I hope that helps I look at the individual but I will warn you they're not usually motivated the same way as a property management company owner so an hour job salary look at your market that you're in go it doesn't hurt by the way and I've done this post the job and see what you get and some of the tips for hiring when I ran a full-on handyman calm like franchise handyman company was you can look at their tools see how you know how they organized their car their tools their stuff tells you kind of how good of a handyman and I've also done a lot where and I know Chad you've done this where I give them work orders at first just as a 1099 and test them out before I hire full-time so I just say yeah you want to start doing work orders for us and giving them work orders and they turn into a full-time on a 1099 arrangement not a bad way to you always want to try before you buy and handyman aren't great at interviewing and it's not a great way to hire them

Leave a Reply