How to Build an Efficient & Effective Operations Team for Your Real Estate Business

Commercial Real Estate Investing From A-Z

What should we keep in mind in creating a solid operations arm of a real estate company? How to hire the best of the best? What are the tips for creating a great company culture? Anne Mari DeCoster, President & COO at Kingdom Storage Partners & Self Storage Investing, shares her insights.

Read this entire interview here: https://tinyurl.com/mr3h8emf

What are some of the biggest things that we should keep in mind with regards to building a solid operations arm of a company?

It’s critical that you keep your eye on the numbers. Every software system has a management report, and the management report will tell you where dollars are leaking out. You can develop the best proforma in the world but if it’s not implemented the way you intend, because you have invisible leaks, then you’re not going to succeed the way you should, you’ll still succeed, but not as well as you should. It’s really easy to turn that over to someone else and trust them, but it’s not always wise. I’ve been heard to say that not every manager steals, but every owner is stolen from. To prevent that, keep your eye on those numbers.

I’m a believer in consistency and simplicity. Whoever is running your shop, whether it’s a remote manager, or an onsite manager, it’s important to understand what are your processes, how you do them, and do them that way every time. We have a simple business model and I always encourage people to keep it simple, don’t complicate it with extra services that are logistically intensive, or manpower intensive. By keeping it simple, and having simple procedures and implementing them across the board, you up your game. Things fall into two camps: either an owner is frustrated that they can't get their manager with remote, or third-party management, or on-site to do what they want. And then others would say, I don't understand why they have a problem. And the difference between the two is accountability, people will deliver what you inspect, look at it, measure it, take a look at the MSR, if you're asking questions, you'll get much better responsiveness.

What are some things that you look for when you are interviewing someone for either a low-level job or a high-executive job?

That's one of the hardest things today, isn't it? We used to be very common in the workplace, pursuing excellence, being committed to doing a good job, you go to work every day, compassion is important, and caring about what you do - these are the things that I look for. And in the process of talking with people, I try to understand what their values are and see if there's an alignment of values. If you're very clear on your values, you establish your priorities based on your values, and then your decisions line up with that. That doesn't mean decisions are easy, but they line up. If you're talking with someone and you can tell that they don't value people, and if valuing people is important to you because you want people who rent from you to give you five-star reviews because you cared enough to make sure they could access their Christmas presents on Christmas Eve to put them under the tree on Christmas morning.

How do you create an excellent company culture from the beginning?

Culture flows from the top down. "They don't care what you know until they know that you care." A lot of that is conveyed by being really clear on your core values as a company, you know what you're about as your mission and your core values, your customer care, attention to detail, those are enough in running a property. Convey it clearly and frequently. You can't say, "we are a problem-solving organization", and keep kicking the problems down the road.

Anne Mari DeCoster

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