Cutting the Gordian Knot
Property management is hard. Between juggling tenant requests, maintaining the books, chasing money, and making sure the roof doesn’t cave in, there is little time left for sleep, let alone maintaining a database of all the things listed above, and more, through an archaic software system. This constant stream of diverse activity that seems to require immediate action makes being a property manager extremely difficult and emotionally taxing. Its no wonder then, that a staggering 54% of all employees in the property management industry leave their jobs each year.
Perhaps what is even more staggering than the amount of people driven away from property management is the amount of money that turnover both directly and indirectly costs businesses operating in the space. According to a study conducted by the Edward Lowe Foundation, 45% of all companies estimate that turnover costs more than $10,000 per employee, and nearly 20% of firms reported costs exceeding $30,000 to find and train new employees to replace each lost worker. In addition to the direct cost of advertising, training, and on-boarding new employees, high turnover in property management can also mean reduced customer satisfaction, which can, in turn, lead to lost revenue in terms of new leases signed and old leases renewed.
So then, it seems operators of multifamily and commercial properties are faced with a truly expensive, and intractable problem:
how can we retain skilled workers in an environment that provides challenges that do nothing but drive them away, while simultaneously expanding our bottom line and portfolio?
For those unfamiliar, the “Gordian Knot”, mentioned in the title above, is a metaphor for the type of complex, or unsolvable problem described above. The origins of the “Gordian knot,” can be traced back to a legendary chapter in the life of Alexander the Great. As the story goes, the Macedonian conqueror led his army into the Phrygian capital of Gordium in what is now Turkey. Upon arriving in the city, he encountered an ancient wagon, its yoke tied with what one Roman historian later described as
“several knots all so tightly entangled that it was impossible to see how they were fastened.”
For the last two decades, existing solutions have attempted to “untie” the knot of property management with technology and processes that occasionally loosen, but more often than not, tighten and already taut collection of operational problems. The software of old codifies archaic multi-step processes into cumbersome, annoying workflows that slow down operations far more often than they augment them.
Returning to history, the solution to a problem like the Gordian knot of property management is far more simple than it may appear. After wrestling with it for a time and finding no success through common wisdom and practice, Alexander the Great stepped back from the mass of gnarled ropes and proclaimed, “It makes no difference how they are loosed”, and promptly drew his sword and sliced the knot in half with a single stroke.
At Revela, we build software for property management companies that is designed to cut through this complex problem, just like Alexander’s sword. By building technology that automates redundant tasks, streamlines communication, and aggregates all the information needed to stay on top of the litany of inbound requests faced by property managers on a daily basis, we hope to slice through this complex problem and help our clients retain more talent, make more money, and create an environment that creates happiness for tenants, employees, investors, owners, and you.