Managing large multifamily properties is difficult. An onsite team can make or break a community – and, in our case, an investment.
When Crown Bay first started, our management strategy (and really only option!) tapped a third-party property management company to run day-to-day operations. However, as business grew and experience abound, we learned.
We learned the importance of in-house property management, a revelation that played a critical role in our investing success.
We went to work.
We created a separate subsidiary. We hired an Director of Operations with 30+ years of property management experience to run it. Crown Bay Management only manages and operates our properties.
Why is this the right move for us?
1. Alignment of Interests
Our property management team is incentivized to operate our properties as efficiently and financially aggressive as possible. If the property performs well, the team is rewarded.
For typical third-party management companies, their fees increase only with the addition of more management assignments regardless of how properties are performing.
2. More control
Crown Bay Management is laser focused on only properties owned by Crown Bay Group. A third-party management company reports to several owners, oftentimes giving most attention to the largest landlord.
For us, having more control and oversight of management and operations has created a stronger alignment of interests that has also led to superior property performance. Not only does this benefit residents – but also our investors as net operating income inevitably climbs and property values increase.
And we sleep better with this peace of mind.