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Put your mind to it and you can directly employ and source any of the services you need in property management. However, being able to do this largely depends on how much time and expertise you have, as well as the corporate infrastructure to manage direct employment.
One of the property management services that have the most temptation for direct employment is porter, concierge and caretakers. Since the business climate is constantly changing, businesses must adapt and adjust operational functions to mitigate any new threats either because of changes imposed by legislation or economic conditions. The employment act is onerous for employers and most businesses loathe the psychological and financial costs associated with halting a contract of employment early. Whilst on an Excel spreadsheet it may seem cheaper to employ directly, the hidden costs and pitfalls of employing full time staff is sometimes under-budgeted and unknown.
Residents expect a range of services from the concierge or porter at their building. Employing these individuals is more than just about finding a fresh high school graduate. Instead, concierge and porters are expected to serve more as lifestyle managers; improving and adding to the comfort of residents. They help residents with many tasks from the ordinary to the extraordinary. Ideally, porters and concierge professionals contribute to the added peace of mind, enabling residents to freely enjoy the lifestyle that is important to them.
The duties of a porter/concierge inter alia include, running an errand, recommending dining and activities, housesitting, pet, car, office help, planning parties and events, visitor monitoring, transportation and travel arrangements. The personal qualities required are however dependent on the needs and demands of the residents. The skills that are required to deliver this service are all but specialized and adequate and appropriate training is necessary.
The real question is if engaging porter and concierge services directly is more beneficial for a property management company, and if they have the resources to provide the level of training that is needed? If so, is there a structure in place to constantly manage and supervise this service?
There is also the issue of ensuring that the staff report to their duty on time and that shift changes are properly planned to cover for unforeseen absences or illnesses. Lastly, in the case of disputes and referrals of disputes to LVT, a lot of documentary evidence is needed. If not maintained, this can lead to claims. Ideally the provision of porter and concierge services is best contracted out to firms that have the expert knowledge.
Vinod Sejpal is Head of Finance at Beechwood Property Services