183: Process Automation For the Masses w/ Todd Ortscheid
Nov 1, 2023
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In this episode, property management expert and consultant Todd Ortscheid discusses his journey in the industry, best practices for systematizing and automating property management processes, property management software options, integrating automation, hiring and managing staff, personality testing, handling difficult conversations and conflict, and maintaining community and transparency as the industry grows.
Transitioning from property manager to people manager can help maintain a better margin and owner earnings.
Data-driven hiring, such as using personality testing, can improve employee alignment and success.
Regular feedback and communication can prevent underperformance and foster continuous improvement.
Deep dives
The Challenges of Growing a Property Management Business
Growing a property management company beyond a certain point often leads to a shrinking profit margin and increased middle management costs. This no man's land area can be detrimental to the business. The key is to accept the transition from property manager to people manager and prioritize staying smaller to maintain a better margin and owner earnings.
The Importance of Data-Driven Hiring and Role Specificity
Hiring should be based on data, such as personality testing, rather than relying solely on gut reactions. Too often, businesses neglect the importance of aligning individuals with the right role based on their strengths and weaknesses. By using objective assessments, companies can make better hiring decisions and position employees for success.
Addressing Underperformance and Cultivating a Feedback Culture
Underperformance should not come as a surprise to employees. Regular feedback and counseling should be provided to address issues and offer opportunities for improvement. By creating a culture of open communication and soliciting feedback, companies can ensure continuous improvement and prevent underperformance from persisting.
The Importance of Automating Processes
Automating processes in property management can significantly improve efficiency and save time. While it may require a considerable amount of initial effort and technical know-how, the long-term benefits are worth it. By automating tasks, property managers can save thousands of hours and reduce the need for additional labor. This can result in increased profitability and the ability for property managers to have more freedom and flexibility in their roles. However, it's important to set realistic expectations and understand that automating processes is a significant commitment that requires time and effort.
Professionalizing the Property Management Industry
The property management industry is undergoing a shift towards professionalization, similar to other industries such as multifamily. This involves the implementation of operational KPIs and standardized best practices. By focusing on operationalization and systematizing various aspects of the business, property managers can improve their efficiency and elevate the industry as a whole. Professional property management requires a commitment to ongoing education and the willingness to adapt and learn from industry experts. While there is a risk of losing the sense of community and openness that currently exists in the industry, it is crucial to preserve these values as the industry continues to evolve and professionalize.
In this episode of Profitable Property Management, Jordan interviews Todd Ortscheid, property management expert and consultant. They discuss Todd's journey in the industry, best practices for systematizing and automating property management processes, hiring and managing staff, industry trends, and more.
Key Topics Discussed:
Todd's background and transition into consulting
The benefits and challenges of consulting
Qualifying good consulting clients
The hours required to build efficient processes
Property management software options
Integrations for automation
Getting team buy-in on using systems
Creating effective processes and checklists
Gathering staff feedback on processes
Setting client expectations for automation
Hiring slowly and firing quickly
Personality testing for putting people in the right roles
Handling difficult conversations and conflict
Maintaining community and transparency as the industry grows
4:34 - Trying different systems before landing on LeadSimple
21:05 - Estimating hours required to build efficient processes
37:58 - The importance of personality testing in hiring
44:43 - Valuing honesty and authenticity in business
48:13 - The potential impact of creating industry standards
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