A few weeks ago, we sent an email with tips on how outsourced accounting can help VPs and regional managers within larger management firms start their own companies.
We must have hit a nerve.
We received dozens of responses from all over the country. It appears to us that the big firms keep getting bigger…but is that better? Greystar has more than 400,000 units and 10,000 employees. Another 23 property management firms manage more than 50,000 units. Collectively these firms have more than 1,500 regional property managers and hundreds of Operations VPs.
Many of the key people in these top firms say the culture and customer service isn’t the same as it was even a few years ago. Many know they could service the clients better on their own.
These executives have thought of starting their own management firm but were overwhelmed at the notion of managing things like accounts payable, payroll, benefits, office space and financial reporting.
When they found out Ascent could handle the back office of their new venture, their entrepreneurial juices started flowing again. One recent client experience is a great example.
Michelle* is now starting her own property management firm after working more than 15 years for a major national firm. As a vice president of property operations, she had been overseeing as many as 15,000 units.
Michelle wanted to start a small management firm and have more control over her schedule. Her first client was an owner with eight properties and approximately 1,400 units.
With a three percent management fee, her joint venture’s net income from this portfolio is approximately $58,000 per month. Ascent’s budget is $11,500 per month to handle her back office operations including accounting and payroll. After her salary and benefits of $15,000 per month, the partnership nets more than $31,000 per month and Michelle has significant freedom to pursue more clients and grow the business.
After sharing the profits in the first year, Michelle has nearly doubled her income and owns half of a company she could sell one day. She also has the freedom to do property management like she knows it should be done.
If you are like Michelle and think it might be time to start your own firm, reach out to us.
Click here for case studies, testimonials and learn more about the potential to start your own firm easily and efficiently. You can also call me at 702-467-0789 for a confidential conversation about how Ascent can help you start your new firm.
* Name changed to protect client’s privacy.