Industry Leaders on Scaling Property Management: Systems, Culture, and Technology

Industry figures Grant McKay and Phil Tarrant have stated that property management agencies face significant challenges in scaling their operations and increasing the number of properties managed per individual (PUM). They identified the implementation of scalable operational systems and the cultivation of a supportive workplace culture as key factors affecting growth and productivity in the sector.

Identified Challenges to Scaling

Grant McKay, founder of NU Management, stated that the unpredictable nature of daily property management presents a significant obstacle to business growth.

"The unpredictable nature of daily property management, involving varied tenant and landlord demands, complicates efforts to scale operations efficiently."

Both leaders pointed to administrative burdens as a limiting factor. McKay stated that current processes often leave property managers with insufficient time to provide comprehensive advisory or consultative services to clients.

Phil Tarrant, CEO of Managed, stated that managing time-consuming manual tasks can make even a modest portfolio overwhelming for property managers.

Proposed Solutions and Systemic Needs

McKay and Tarrant emphasized the necessity of implementing structured systems and procedures.

"To handle more properties without becoming overburdened, property managers require systems that allow them to track workflows and manage schedules from a centralized point, rather than through manual, individual updates," stated McKay.

Both leaders highlighted the role of technology in automating routine tasks.

Tarrant stated that existing technology can automate functions such as account reconciliation and tradesperson coordination. He said that having such systems in place is essential for building a profitable rent roll and scaling PUM.

McKay suggested that support could come through additional staffing or technological solutions. He noted that outsourcing routine inspections or implementing new systems for regular tasks could free up property managers' time for more client-focused, consultative work.

Tarrant observed a divide within the industry, stating there is a difference between businesses that utilize systems to scale their operations and those that do not.

Workplace Culture and Industry Retention

McKay identified a failure to foster a supportive workplace culture as another major bottleneck for PUM growth across the industry.

He stated that without encouragement and leadership from management, property managers can feel stretched and lose enthusiasm, which may lead to decreased performance.

"In a business with a supportive culture where team members are invested in its success, employees are more likely to work together to overcome obstacles."

Regarding broader industry trends, McKay stated that the sector needs to change to attract and retain high-quality property managers.

He suggested that common career paths often steer individuals from leasing roles into sales, rather than into long-term property management careers, and that this dynamic needs to shift.

Background on Commentators

• Grant McKay founded the property management agency NU Management. He has a background in sales and business development and stated that building his agency required him to learn the day-to-day operational details of property management to establish effective workflows.

• Phil Tarrant is the CEO of Managed, a company providing services to the real estate sector.