5 minute read
Pick Your Passion
The distinction between portfolio and on-site management.
By Dean Jackson, CCAM-HR
Many moons ago, I started my career as a portfolio manager and then made the transition to the on-site world for nearly 15 years. Now, though I don’t manage accounts, I have the pleasure of working side by side with a team of some of the most talented and dedicated portfolio managers I know.
There are many similarities, and there are some important distinctions between the two career paths. At heart, the mission of both positions is to maintain and enhance the association’s assets while striving to maintain and enhance the value of the homes within the community.
Expertise necessary for either position includes knowledge of the laws governing HOAs, knowledge of insurance, financial statements, reserve studies, risk management, vendor and/or employee management, and familiarity with the components for which the association is responsible.
This foundational knowledge is generally imparted early in a manager’s career through industry specific education such as CACM’s Basics of Community Management (BAM) courses. Then experience and education, opportunities, and objectives make every manager’s career journey different and distinctive.
I’ve met portfolio managers who aspire to an on-site career, and others who wouldn’t touch it with a ten-foot pole. I’ve met general managers who thrive in that environment, and others who found that it wasn’t for them. So, let’s explore what sets these two career paths apart from each other. Please forgive any sweeping generalizations.
PORTFOLIO MANAGERS, JACK OF ALL TRADES
I wrote an In the Boardroom article a while back which was designed to introduce boards of directors to a day in the life of a portfolio manager. To grasp the extent of what they do on a daily basis, I find it helpful to think of someone juggling chainsaws whilst putting out a dumpster fire and grooming a dog (without injuring it).
These managers tend to thrive under pressure and are experts at multitasking. There is very little down-time in this position, something or someone vying for the manager’s attention, frequent meetings, and frequent fires to put out.
Most of the portfolio managers that I work with, regardless of their stress level, are calm, collected, and have a healthy sense of humor. It can be a thankless job, and they have a knack for letting things roll off their backs and moving on to the next task.
Since the manager’s presence at a community is not expected daily, portfolio management works much better as a remote position than does an on-site position. The nature of the job requires a macro-focus, and while attention to detail is important, drilling down to the minute details is not always possible.
There is only so much time a portfolio manager can spend on any one client. Unfortunately, some boards of directors have trouble understanding this fact and demand far more attention than their manager has time for (if the time was billed hourly it can easily exceed the monthly contract rate.)
ON-SITE GENERAL MANAGERS, MASTERS OF ONE
Approximately 75% of my career was spent as an on-site General Manager (GM) at a mid-rise association and then at high rise buildings. While I won’t tell you when I started, we were still using pagers at the time. The daily experience of a GM, while comprising many tasks in common with portfolio, is entirely different.
The GM is expected to be at the property during their work hours, and they are often the only person on call for after-hour emergencies. The removal that the portfolio manager has from their accounts is not present when one’s office is at the community they manage.
The job involves much more face time with the board of directors and the homeowners and residents. Unexpected and lengthy visits are common. A director is just as likely to stop by the office as to send an email or make a phone call.
Owners can yell directly at the GM instead of writing a complaint email or a letter. The GM has much more interaction with the people that make up the association. This interaction gives the GM the opportunity to add a personal touch to their service. Overall, it is a positive thing.
The GM needs to have a big picture knowledge of the HOA, but they must also have a microfocus. The GM walks the property far more often than once a month. They must have an exhaustive knowledge of the building’s layout, components, projects, governing documents, insurance, budget, and reserve study.
One of the biggest differences between the two disciplines is that a GM often has to manage employees. This can include HR issues such as hiring, firing, and discipline. It often includes benefits and salaries.
If a GM is employed directly by the association rather than a management company, the employee management portion of the job can take a lot of time and focus, and it must be done correctly, or you can run afoul of the law.
GM positions are often harder to fill for several reasons. A GM must be a good fit for the community both in skills and personality, and they essentially become the face of the community and know how to navigate its politics. GM’s are usually gainfully employed and tend to stay in one place, so a salary would need to be competitive to uproot them from a good gig.
Ultimately, a portfolio manager must know about a lot of properties, and a GM needs to know a lot about one property. They are both challenging and rewarding careers, and every one of them is a hero in my book.
Dean Jackson, CCAM-HR
Dean Jackson, CCAM-HR, is the Director of Project Management at Collins Management, ACMC.
