What does "on-site" mean at 60 units? I answered badly.
Someone I know is buying into a 60-unit building and asked me whether it needs on-site staff. I said probably, then spent the drive home realizing I couldn't defend it.
So, plainly, for anyone newer than me. On-site staffing means people whose job is that one property and who are physically there. Usually a community manager in a leasing office, a leasing agent, and one maintenance tech, sometimes a porter. The alternative is off-site or centralized: a portfolio manager covering several buildings from an office somewhere else, showings booked through self-guided tours or a traveling agent, and maintenance from a shared pool of techs who drive between properties.
The reason this is a real decision and not a rule is payroll. A full-time tech in most markets is $50k to $65k loaded, a community manager similar or more, and an office needs a leased unit you're not renting. Call the light version of on-site $110k to $140k a year. On 60 units at $1,300 rent, gross revenue is about $936k, so on-site staffing is 12 to 15% of revenue before you've paid for anything else. That's a big bite and it's why the industry rule of thumb has historically put full on-site staffing somewhere above 80 or 100 units.
The argument for going on-site earlier is that somebody being there changes the building. Turns move faster, work orders don't sit, residents renew because there's a face. Centralized models save payroll and then leak it back as vacancy days and turnover.
I genuinely don't know which side I'd take at 60 units, and I'd like to see how the room splits.
At 60 units, one building, what staffing model would you set up?
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