Which Property Management Companies Outsource Most of Their Services?
Outsourcing is transforming property management. Companies like Greystar, BH Management, Willow Bridge, and Avenue5 Residential are outsourcing services to cut costs, improve efficiency, and focus on core operations. Here's a quick breakdown:
- Greystar: Outsources tech support, waste management, and energy services. Saves millions annually with efficient vendor partnerships.
- BH Management: Delegates accounting, maintenance, and administrative tasks. Reduces back-office costs by up to 70%.
- Willow Bridge: Focuses on tenant screening, legal compliance, and leasing. Achieves 45% efficiency gains.
- Avenue5 Residential: Relies on IT, insurance, and pet management outsourcing. Streamlines operations and enhances tenant experience.
Quick Comparison
| Company | Key Outsourced Services | Cost Savings | Efficiency Gains |
|---|---|---|---|
| Greystar | Tech support, waste management, energy | $1.3M+ annual savings | Improved tenant satisfaction |
| BH Management | Accounting, maintenance, admin tasks | 70% back-office savings | 40% fewer unnecessary visits |
| Willow Bridge | Tenant screening, leasing, compliance | Reduced admin costs | 45% operational efficiency |
| Avenue5 | IT, insurance, pet management | Positive IT cash flow | Streamlined processes |
Outsourcing is a game-changer, helping companies save money, improve services, and adapt to industry growth projected to reach $32.05 billion by 2031.
1. Greystar
Outsourcing Percentage
Greystar oversees more than 1 million units across 247 markets worldwide, managing real estate assets valued at over $290 billion [4]. The company operates using a pod structure, which organizes services based on regional and client-specific needs [3]. This structure plays a key role in improving efficiency and ensuring smooth operations.
Services Outsourced
Technology Support Services
Since August 2024, Greystar has partnered with Assurant TechPro to provide round-the-clock tech support for residents, addressing approximately 20% of service needs [6].
Waste Management Solutions
In September 2021, Greystar began working with Trash Butler to deliver doorstep trash and recycling services. This partnership utilizes a fully W2 workforce, includes contractual performance guarantees, offers real-time reporting, and ensures high-quality service [5]. By outsourcing this service, Greystar not only improves operations but also achieves measurable cost savings.
Cost Efficiency
"Initially we just looked to lift and shift the work. Over time we understood how paramount it was to really invest in the right tools and technology to support those team members." - Melody Reid, Managing Director, Property Systems Engagement, Greystar [3]
Greystar’s collaboration with Infinity Power Partners (IPP) has led to impressive financial results, including a $1.3 million reduction in direct energy costs, savings of up to $35,000 annually per property, and an extra $240,000 in yearly revenue from preferred provider payouts [9].
Vendor Partnerships
Greystar’s vendor relationships play a vital role in maintaining operational efficiency and delivering high-quality service.
"At Greystar, we seek opportunities to align with partners who share our focus on delivering best-in-class property management and resident experiences." - Richard Friedman, Managing Director of Client Services & Strategic Partnerships at Greystar [7]
When selecting vendors, Greystar emphasizes the following criteria:
- Seamless technology integration
- Strong quality control processes
- Performance guarantees
- Proven service delivery track records
- Alignment with their resident-first philosophy [8]
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2. BH Management Services
BH Management Services takes a hybrid approach to operations, blending in-house resources with strategic outsourcing. Managing around 114,000 units across 31 states [11][12], the company utilizes proprietary tools like BH Fusion® and Aylist [10] while outsourcing certain tasks to enhance efficiency.
Services Outsourced
BH Management focuses its outsourcing efforts on non-resident functions, such as:
Administrative and Financial Operations
- Accounting, treasury, and bookkeeping [13][15]
- Tax and consultancy services [13]
- Invoice management [15]
Property Support Services
- After-hours call centers [16]
- Apartment turnover tasks like painting and maintenance [16]
- On-site housekeeping [16]
Cost Efficiency
Through BH Complete Solutions, their outsourcing division, BH Management achieves notable cost savings while allowing on-site teams to concentrate on their primary duties [14][15]. These savings are amplified by strong vendor relationships.
"We had over 300 communities - that were doing what we thought we were standardized in - they were doing it 300 different ways. And so we thought about how could we take some of the administrative lift off of our onsite teams." – Christy Weinstein, Chief Operating Officer (COO), BH Management [17]
Vendor Partnerships
The company’s vendor strategy is designed with residents in mind. Their maintenance management platform provides detailed job information upfront, cutting down on unnecessary trips [16]. They also incorporate smart home technology, chatbots for routine questions, and dedicated maintenance platforms to improve responsiveness.
"Based on the move-in experience, the decision of whether to renew is made almost instantaneously or within the first seven days of living there. How quickly we're being responsive to their requests." – Christy Weinstein, Chief Operating Officer (COO), BH Management [17]
3. Willow Bridge Property Co.
Willow Bridge Property Co., previously known as the residential division of Lincoln Property Company, is a leader in property management outsourcing. With a portfolio spanning over 220,000 units across 29 states and operations in 75 markets nationwide, the company has proven its expertise in managing and delivering outsourced services [19][14].
Services Outsourced
Recently, Willow Bridge took over the management of Blue Ridge Cos.' portfolio, which includes:
- Managing property operations for more than 10,000 units
- Overseeing daily operations at 35 residential communities
- Handling full-service leasing and rent collection
- Coordinating and executing maintenance tasks
- Supervising on-site staff [18]
Driving Cost Efficiency
By leveraging its national purchasing power, advanced technology, and standardized processes, Willow Bridge achieves operational savings that directly support long-term vendor strategies [20].
Strong Vendor Partnerships
Willow Bridge enhances property owner value by fostering strong vendor relationships. Their approach includes:
- Keeping a pulse on industry trends and market changes
- Securing volume-based pricing through strategic partnerships
- Collaborating with vendors that meet strict quality standards [20]
"This strategic alliance will allow us to devote the necessary time and energy toward development and construction activities that will support the continued growth of our real estate portfolio for years to come."
– Chris Dunbar, President of Blue Ridge Cos. [21]
"This partnership aligns with our strategic growth in the Carolinas, allowing us to expand thoughtfully while staying true to our commitment to create places people want to call home."
– Margette Hepfner, Chief Operating Officer at Willow Bridge [21]
4. Avenue5 Residential
Avenue5 Residential oversees 98,000 units across 500 properties, using outsourcing as a key strategy to enhance operations and reduce costs. Like other industry leaders, Avenue5 relies on external partnerships to streamline processes and focus on growth.
Services Outsourced
Avenue5 delegates several core functions to trusted partners:
- Information Technology: Since 2014, Avenue5 has worked with RealPage SmartSource IT to handle daily help desk tasks. This partnership allows their IT teams to prioritize strategic initiatives, supporting their expansion from 200 units to over 56,000 units [23].
- Pet Management Services: The PetScreening platform is utilized across more than 370 multifamily properties and 70,000 apartment homes. This service simplifies pet policy enforcement and helps ensure compliance [22].
- Resident Insurance: Starting in January 2023, Avenue5 adopted Assurant Multifamily Housing's Cover360 renters insurance solution across all properties, streamlining insurance management [24].
Cost Efficiency
Outsourcing has had a noticeable impact on Avenue5’s bottom line:
- Their IT department operates at a net-zero or even positive cash flow, thanks to strategic outsourcing [23].
- Remote Guarding services have proven effective, deterring 97% of potential threats [25].
- The Cover360 insurance program not only simplifies insurance processes but also generates significant revenue for clients.
Vendor Partnerships
Avenue5 collaborates with leading vendors to ensure high-quality service delivery. They focus on partners that bring innovation, reliability, scalability, and seamless system integration to the table.
"Transitioning from Assurant's classic POL program to their integrated pay-with-rent Cover360 option has been financially impactful for our clients, convenient for our residents while ensuring protection and compliance throughout the resident lifecycle."
- Pål Ottesen, CFO of Avenue5 Residential [24]
"As a manager of pet-friendly apartment properties nationwide, the PetScreening platform helps us to make our apartment homes more welcoming for pets and support our residents by ensuring that they are aware of our pet policies."
- Stephanie Thornberg, Senior Risk Manager for Avenue5 Residential [22]
Outsourcing Results by Company
An analysis of outsourcing practices among property management companies reveals varied strategies and measurable outcomes.
| Company | Primary Outsourced Services | Key Performance Metrics | Cost Savings |
|---|---|---|---|
| Greystar | Maintenance, Technology, Insurance | Tenant satisfaction improved by up to 80% | Back-office costs reduced by approximately 70% |
| BH Management | Accounting, Marketing, Maintenance | Unnecessary site visits cut by nearly 40% | Back-office operations savings of about 70% |
| Willow Bridge | Tenant Screening, Legal Compliance | Operational efficiency increased by up to 45% | Greater efficiency in administrative costs |
| Avenue5 Residential | IT, Insurance | Enhanced digital integration improved responsiveness | Achieves cost savings aligned with industry standards |
Industry-wide data supports these findings. According to the National Association of Residential Property Managers (NARPM), companies that adopt comprehensive outsourcing strategies have reported efficiency gains of up to 45% [26]. Additionally, property managers leveraging digital platforms for tasks like service requests and rent payments have experienced noticeable boosts in tenant satisfaction [26].
"As a real estate property management executive, navigating the complex terrain of risk management and compliance is paramount for sustaining a thriving portfolio. Outsourcing these critical functions requires a strategic lens focused on due diligence and collaboration. It's imperative to partner with a service provider that not only possesses a deep understanding of local and federal regulations but also demonstrates a proactive approach to compliance."
- Shane Froman, Senior Vice President at Lincoln Property Company [27]
The operational advantages of outsourcing can be summarized as follows:
-
Financial Impact
Back-office costs have been reduced by 70%, allowing companies to reinvest in core services [2]. Additionally, the adoption of outsourced digital technologies has cut site visits by 40% [26]. -
Risk and Compliance
Roughly 35% of real estate businesses report improved compliance through administrative outsourcing [26]. This enhanced regulatory adherence helps reduce legal risks.
These benefits highlight the importance of carefully selecting outsourcing partners to streamline property management. With the industry expected to grow to $32.05 billion by 2031, at an annual growth rate of 8.80% starting in 2024 [1], strategic outsourcing is becoming an increasingly integral part of property management operations.
Key Findings
The analysis of property management outsourcing practices highlights distinct strategies employed by leading firms. The property management market is expected to grow significantly, from $21.17 billion in 2024 to $33.11 billion by 2029 [14]. This growth underscores the importance of understanding how companies implement outsourcing and the opportunities this creates for service vendors.
Company-Specific Outsourcing Strategies
Greystar, managing an impressive 823,581 units across the U.S., has embraced a strong outsourcing framework. Their approach ensures consistent service quality across a highly diverse portfolio [14].
BH Management Services, which oversees more than 210,000 homes, leverages outsourcing to enhance operational efficiency. This aligns with CEO Joanna Zabriskie's vision:
"Combining BH's multifamily portfolio with Pretium's residential platform will help us execute on our shared vision to build better communities" [11].
Willow Bridge Property Company serves as a prime example of scaling effectively through targeted outsourcing. They’ve maintained operational excellence while expanding their portfolio, showcasing the potential of strategic outsourcing.
Vendor Opportunity Analysis
The outsourcing strategies of these companies reveal significant opportunities for vendors in critical service areas. Here's a breakdown of market demand and operational impact:
| Service Category | Market Demand | Impact on Operations |
|---|---|---|
| Maintenance Services | High demand with potential 30% cost reduction | Increased tenant satisfaction and lower repair costs |
| Technology Solutions | Rapidly growing adoption | Improved efficiency and streamlined processes |
| Insurance Services | 90% priority for property managers | Better risk management and regulatory compliance |
| Administrative Services | Up to 70% cost reduction potential | Simplified back-office operations |
"The endgame for a strategic partnership is a collaborative, rather than transactional, relationship which delivers improved services alongside efficiencies, and is aligned with the organization's goals." – JLL [28]
Property management firms increasingly favor vendors who offer comprehensive, results-driven solutions. In fact, 80% of investors report improved efficiency through outsourcing partnerships [29]. The shift toward outcome-focused contracts and strategic alliances highlights the importance of vendors delivering measurable results alongside their services [28].
The findings emphasize that achieving a balance between cost efficiency and service quality is key. Strategic vendor partnerships, particularly those integrating advanced technology, play a pivotal role in driving operational success in the property management industry.
FAQs
What are the key advantages of outsourcing services for property management companies like Greystar and BH Management?
Outsourcing provides property management companies such as Greystar and BH Management with a range of benefits. Among the most notable are lower costs, access to expert knowledge, and better operational performance. By delegating certain tasks, these companies can cut down on overhead expenses, simplify their processes, and concentrate on their main business priorities.
It also gives them the opportunity to use cutting-edge technologies and follow industry best practices. This often leads to quicker response times, higher-quality services, and greater tenant satisfaction. With this strategy, they can uphold high standards while staying competitive in the market.
How do property management companies choose the right outsourcing partners for quality and efficiency?
Property management companies take a thoughtful approach when selecting outsourcing partners, aiming to meet their operational needs while maintaining top-notch quality and efficiency. They begin by pinpointing specific tasks that are well-suited for outsourcing - such as maintenance, leasing, or marketing - and then ensure the potential partner has proven expertise in those areas.
When evaluating candidates, they look at key factors like industry experience, reputation, and a solid track record of success. Equally important are strong communication skills and the ability to align with the company’s unique workflows. By prioritizing these criteria, property management companies can establish partnerships that simplify operations and improve the overall service experience.
How does outsourcing affect tenant satisfaction and operational efficiency in property management?
Outsourcing has become a game-changer for property management, helping improve tenant satisfaction while streamlining operations. By teaming up with specialized service providers for tasks like maintenance, tenant support, and leasing, property managers can deliver quicker responses and higher-quality services. This, in turn, keeps tenants happier and lowers turnover rates.
It also frees up property managers to concentrate on their primary responsibilities, leaving routine or specialized tasks in the hands of experts. This approach not only cuts costs but also ensures tenants consistently receive professional service. The result? Properties that leverage outsourcing often enjoy smoother operations and better tenant retention.