‍When should I start building processes for my property management business?

As a property manager, you already know that running a smooth operation requires solid processes. But when should you step outside a process and rely on your own judgment? And at what point in your business should you even begin focusing on building detailed processes? Jordan Muela, CEO of LeadSimple, and Marc Cunningham, President at Grace Property Management & Real Estate, talk about this in Marc's podcast and explore the wisdom behind process design and when to lean on human intuition.

When NOT to follow a process

Processes bring consistency, reduce errors, and create predictability. But, there are times when strict adherence can hurt rather than help. For example:

• Unique Scenarios: Imagine an owner is upset because something unusual happened on their property. You might be tempted to create a process for that rare event. But if the incident is highly unlikely to occur again (less than once a quarter), don’t turn it into a process. Why? Because creating processes for outliers will only add unnecessary complexity to your workflow.
• Using Judgment Over Rules: Instead of sticking to the manual in situations that require discretion, ask yourself, "Does this situation happen frequently enough to warrant a documented process?" If not, trust your experience and judgment to guide you. Sometimes the right call isn’t in the checklist.

When is it too early to build processes?

Many new property management companies get overwhelmed trying to create processes before they’ve even settled into their core business. If you’re still managing a handful of doors, it might feel like overkill to document everything. Here’s when it’s too early to focus on processes:

• Fewer Than 50 Doors: When your portfolio is small, most tasks are still in your head or can be handled personally. At this stage, your time is better spent on growing your business than writing processes for every little task.
• Solopreneurs: If you’re the one doing most of the work, you probably don’t need formal processes for everything. Focus on high-level policies instead, and save detailed processes for when you’re bringing new staff into the mix.

The right time to start creating processes

As your business grows, so do the benefits of process standardization. The right time to dive into process creation is when:

• You’re Managing 100–150 Doors: Once you hit this level, your processes need to be locked down. Why? Because as your portfolio expands, the risk of operational errors increases. At this stage, clearly defined workflows will boost efficiency and help maintain service quality.
• You’re Hiring Staff: When you bring on new hires, processes are essential. They give your staff a clear road map, reducing training time and improving performance. Processes also ensure that your clients receive the same level of service, no matter who’s handling their property.

Building a process to align with your team's strengths

One of the biggest mistakes property managers make is creating processes without thinking about who they’re building them for. Are your processes designed for highly skilled, experienced team members or less experienced staff?

• High Caliber Talent: These individuals don’t need step-by-step checklists. They thrive when they can use their judgment to navigate challenges. If your team is made up of sharp, experienced individuals, keep your processes simple and allow room for discretion.
• Low Experience/High Turnover Staff: On the flip side, if your team is made up of VAs or less experienced employees, you’ll need more detailed processes. These should be robust enough to guide them through tasks without constant oversight but flexible enough to avoid unnecessary complexity.

The trap of building too many processes

It’s easy to fall into the trap of creating processes for everything. But beware—this can lead to bureaucracy, where no one uses their judgement, and the system becomes rigid and fragile.

A great process should cover 80% of situations, while the remaining 20% requires judgment. The goal is to find the balance between consistency and flexibility, avoiding the "Tower of Bureaucracy" that collapses under its own weight.

Key takeaways:

• Don’t Process Everything: Only document processes for tasks that happen frequently. Use your judgment for one-off situations.
• Start Processes When You Scale: Once you hit 100-150 doors or begin hiring, it’s time to formalize your processes.
• Tailor Processes to Your Team: Build processes that match your team’s skill level—too much process can stifle top talent.
• Keep the Big Picture in Mind: Processes are tools to help you run your business, but they’re not a substitute for good judgment. Always ask, “What’s the principle behind this process?"

By knowing when to use a process and when to trust your judgment, you’ll keep your business agile, efficient, and primed for growth.

Curious what's in a process and how to build one? Check out this article that will guide you through the steps!

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