At around $25 000 per year, you would not be the first person for mistaking an offshore team member as an exercise in cost cutting. However, integrating an offshore component to your business is about investing in an efficient and scalable business model; and like all good investments it needs to have a significant Return On Invest (ROI).So what is the ROI of a Property Management Assistant?
To answer this question we need to look at 2 factors:
- The cost of a Property Management Assistant vs hiring someone locally to complete the same tasks
- The value of the output your outsourced Property Management Assistant provides to your business
1. Offshore Property Management Assistant vs Local Staff comparison
Let’s use the example of a Junior Property Manager starting out on $50K salary per year.
|Junior Property Manager||$ (Annual)|
|Office Space (5sqm @ $350 per sqm/month)||$21 000|
|Desk and chair||$750|
In addition to the above costs, employees also incur other costs which are hard to quantify, but their existence is easy to see. These include:
- Paying staff during public holidays
- The strain on other parts of your business (IT, Payroll etc)
- The time cost in relation to supervising and managing staff
- The time cost in relation to training new staff
- The cost of complying with Australia’s Workers Compensation requirements
- The cost of employee benefits and retaining your staff
- How do you fill the capacity gap when that person takes personal leave, leave without pay or long service leave?
- Do your staff often work longer hours and do you pay them overtime or penalty rates?
- How much does it cost for you to recruit locally and how often do you have to re-hire for positions?
IT’S EASY TO SEE HOW A $50 000 ANNUAL SALARY CAN QUICKLY COST YOUR BUSINESS $100 000 PER YEAR OR MORE!
2. The value of the output a Property Management Assistant provides to your business
Obviously, the output of your outsourced Property Management Assistant can be measured by the tasks they complete and the volume of work they get through in any given time period. This can simply relate to the number of new tenancy applications processed, arrears follow ups made and maintenance requests actioned. However, the REAL value comes from the opportunity cost of supplementing your local team with outsourced Property Management Assistants.
What value could your existing Australian based Property Managers be delivering to your business, if they did not have to do the heavily process driven, admin based tasks that you could give to offshore talent? In an industry that is being disrupted by technology and new business models as well as a competitive environment that is resulting in heavy fee erosion, what does extra time mean for your existing Property Managers?
Would more PMs growing your rent roll and providing top rate customer service to your tenants and landlords give you a competitive advantage in the current market? What if you could focus your effort on adding 20 or 30 (or more) properties to your rent roll per month?
Interested in how an Outsourced Property Management Assistant could give your business an edge over the competition? Why not opt in for a free business consultation.