How to Build a Successful Property Management Business An interview with NRPM Treasurer DD Lee

In a recent episode of Pete Neubig’s podcast, he hosted DD Lee, the Treasurer of NARPM (National Association of Residential Property Managers). Known for her expertise in hiring and retaining talent, DD shared her unique perspective on the critical elements that make a business thrive: its people. She believes that a successful business is built on finding the right individuals who not only fit the job but also stay long-term, contributing to the organization’s growth and stability.

DD Lee’s passion for hiring stems from her belief that “what makes a business successful is its people.” Finding the right talent, however, is no easy task. She emphasizes the importance of minimizing churn and nurturing employees, viewing hiring and retention as a science. This scientific approach involves understanding that not everyone aspires to be an entrepreneur; many people prefer the stability of a regular paycheck.

In today’s business environment, automation is a significant trend. However, DD warns against relying solely on automated processes when hiring. She likens the hiring process to dating: “If you don’t know what you are looking for, you’re just going to keep looking and looking; you’ll never find the right person.” This analogy underscores the importance of knowing your business values, vision, and mission, and integrating these elements into your hiring strategy.

DD stresses the importance of core values in the hiring process. Understanding your business’s core values and communicating them to potential employees is crucial. One effective tool she recommends is the DISC personality test. This test helps determine whether a candidate’s personality aligns with the job requirements. For administrative roles, a high “C” (conscientiousness) result is often ideal, while a combination of “C” and “S” (steadiness) is preferable for roles involving both admin tasks and customer interactions.

Benchmarking salaries is another critical aspect of DD’s hiring strategy. She consults her NARPM colleagues to understand market rates but believes in paying slightly above the market rate for the right person. Her approach involves hiring at the market rate and providing a raise after 90 days. DD also highlights the advantages of hiring inexperienced individuals, noting their enthusiasm and willingness to learn.

DD and Pete agree on the psychological benefits of allowing applicants to state their expected salary. This method ensures candidates feel valued and live up to their worth. Additionally, DD advises checking the spelling and grammar on applications, as attention to detail in writing often reflects effective communication skills.

To streamline the hiring process, DD requires a recorded video from applicants before scheduling an interview, saving time and effort. Observing applicants’ responsiveness and behavior during the application process provides valuable insights into their potential work performance.

Training is a cornerstone of DD’s approach. She ensures that comprehensive training is provided before new hires start their roles, avoiding the pitfalls of on-the-spot training. She also emphasizes the importance of process automation in simplifying training procedures.

Respect and positive reinforcement are vital in DD’s training philosophy. Instead of blaming employees for mistakes, she advocates for a respectful approach, asking them to explain what happened. This fosters a supportive work environment.

On the lighter side, DD believes in maintaining a fun and engaging workplace. She organizes games every Friday, quarterly team lunches, and annual trips. These activities, such as their trips to the Georgia mountains, where they combine fun with half-day training sessions, keep the team motivated and bonded.

In a rapid-fire segment, DD Lee shared some quick insights: her biggest mistake was not learning trust accounting correctly. She uses Buildium as her PM software and her current organization operates on a departmental structure, covering accounting, maintenance, leasing, and reception. They utilize virtual assistants and her top advice for new property managers is to join NARPM, attend meetings, classes, and conferences, and get involved. Lee’s first job was an account manager at AT&T for small-medium business accounts. Her ideal vacation involves hiking in remote areas with mountains and waterfalls. Surprisingly, English wasn’t her first language—she speaks Chinese. She sees herself in Disney’s Mulan and prefers cats over dogs.

DD Lee’s insights provide a comprehensive guide to effective hiring and retention strategies. Her scientific approach, combined with practical tips and a focus on employee engagement, offers valuable lessons for any business looking to build a strong, dedicated team. By understanding your business’s core values, using tools like the DISC personality test, and maintaining a respectful and fun work environment, you can attract and retain the right talent to drive your business’s success.