The Secret to Scaling a Large Property Management Company (or Any Business!)

by | BiggerPockets.com

A few weeks ago, I was at a conference with fellow Szikov blogger Chad Gallagher. He is owner and founder of a property management company called Slatehouse Group. I have met with many management companies over the years, but none that have grown as quickly or successfully as Slatehouse. I wanted to understand how they grew so fast, so I decided to turn the camera on and have a talk with Chad.

Why Systems Are the Key to Scale Your Business

Chad explains that no matter what type of real estate investing that you’re doing, the best and most efficient way to scale is by using systems. Systems make things repeatable, over and over again. The goal isn’t to take people out of the equation, it’s to give the people an easy process to follow in every circumstance. That way, there is no guesswork as to how to react to a situation or what to do next. In a company like Chad’s with many employees, systems allow teammates to predict each others’ next move and also to better support one another since they both know the steps in the process. For a management company, a prime example is the in-the-field manager dealing with the tenants and the service team handling tenant work order requests. There needs to be a great system of entering work orders, following up on the work order progress, and confirming that the work has been completed for both team members to be successful in their role.

Scaling With Tech

Chad’s company relies heavily on technology to implement their systems. They use everything from cloud-based technology to phone apps to increase productivity with their company. One of the biggest excuses that you hear from other investors is “I’m not a tech person.” I’m actually in that boat myself, as I don’t automatically seek out new technology to help me as Chad does. That said, I have found that most of these services are so user-friendly that the learning curve is very manageable.

What I got from Chad is that systems and technology are imperative to growing today’s property management company. These rules also apply to all other companies looking to grow big in today’s market. To hear what types of systems Chad is using for his real estate business, be sure to watch the video!

If you use systems or technology to optimize your business, be sure to share them in the comment section.

Have a great and profitable week!

About Author

Matt Faircloth

In 2005, Matt founded The DeRosa Group along with his wife, Elizabeth. At the time, the two person company owned and managed two assets – a single family home and a duplex. Over the last nine years, they have grown the company to a 12 person team owning and managing over five million dollars in residential and commercial assets throughout the central NJ and Philadelphia area.

One of DeRosa’s mantras is “to make money while making a difference.”

8 Comments

  1. Thomas D.

    This video and subject hit perfectly on what I am currently working on. While we are small, managing 237 doors in a town of 8k. I would love to find out more about the automated scheduling. Currently we are excel and paper with only in person transactions i am going thru programs now for modernizing, so we have a lot of growth potential. The challenge is finding those processes to get implemented.

  2. craig griffiths

    love the interview

    couple questions as we have a new prop mgmt company (just managing our 400+ units)

    what scheduling app are you using for showings
    we use appfolio as well for work orders, what are you using in conjunction with that
    are you using appfolio full accounting…we like the rest of the software but have found accounting frustrating.

    thanks in advance for any advice

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