Top 5 Tips: Property Managers Key Pain Points
Part 1: Time and Cost
Quantifying Time and Cost: The average landlord spends around 4 hours per month per property on Property Management which is 6 days per year. Automation can half this time with the best software systems reducing this by 70%. Compare the cost of your time to your salary and automation makes sense.
To understand the calculations: There are roughly 252 working days per year. For a $100k salary: ($100,000 / 252 = Daily Rate) * 6 days = (Annual Cost) * 70% Saving for comprehensive automation. These figures apply to landlords, as well as property management firms.
Net Savings Per Unit: This includes the cost of software if you purchase an all-in-one system.
| Salary | Daily Rate | 6 Days Labour | Net Savings Per Unit |
|---|---|---|---|
| $50,000 | $198 | $1,190 | $783 |
| $80,000 | $317 | $1,905 | $1,283 |
| $100,000 | $397 | $2,381 | $1,617 |
Property Managers
Average Rents are $1,200. Assume 10% Management Fee.
The average Property Manager's salary is $100k but assuming admin staff do the leg work, let's base average team salary at $50k.
($50,000 / 252 = Daily Rate) * number of units * 6 days = (Annual Cost) * 70% Saving for comprehensive automation.
Net Savings: This includes
the cost of software if you purchase an all-in-one system.
| Rent | Number Units | Income | Salaries | Net Savings |
|---|---|---|---|---|
| $1,200 | 100 | $144,000 | $119,048 | $82,133 |
| $1,200 | 500 | $720,000 | $595,238 | $410,667 |
| $1,200 | 1,000 | $1,440,000 | $1,190,476 | $821,333 |