Property Management Must Provide Value
Third-Party Management Must Provide Value and Allow for Growth
Bigger isn’t necessarily better.
With recent consolidations in Manufactured Housing, the industry has experienced much larger companies funded by private equity entering the space, but we’re not seeing an equivalent increase in staff level expertise. Because this industry has always been a niche form of Multi-Family Real Estate there has never been a need for the multitudes of mid to high level managers. Subsequently the industry has grown faster than the employment pool. It is indeed hard to find good help these days.
Recently, MHinsider posted an article about the increasing need for fee-based management companies as an answer to the current qualified management professional supply vs. demand conundrum. The third-party management industry is growing, and that trend is sure to continue.
Third-Party/Fee based management companies are not new, but what is new are the need for these management companies to provide value and growth to the properties that they manage. Much of the opportunity for fee-based managers used to lie in receivership properties, or communities that did not have a large need for growth. Now, third party managers are being asked to grow portfolios; an expertise some simply are not equipped for.
The MH industry has experienced a tremendous economic climate in recent years, but a projected softening of the economy is coming. Being mindful of and proactive about who is operating your Community and how that is vital to ensuring all the correct measures are taken to maximize profitability for today and tomorrow is imperative
Your third-party management company must be able to run the operation better than you are able to on your own – with expertise, resources and growth know-how.
At the end of the day, this is a people business and it is imperative at all levels of an organization – inside and outside - to have the right people in the right seats, providing the right direction and support on a consistent basis.