The Real Estate Investing Authority®

Pay Structure Used By The Top Property Management Companies


How The Best Property Managers Compensate Employees


Do your employees get paid salary or commission? This is a question we wish more prospective clients would ask us before signing on their properties! Employee motivation is critical to your property's efficiency, cash-flow, and overall tenant morale. Unmotivated staff will have a negative effect on your bottom line almost instantaneously!  Nexus Property Management's Vice President of Franchise Sales, Gregory J. Rice, explains the advantage of non-salaried employees and why Nexus operates this way, live on "The Round Table Radio" with renowned Top Real Estate Agent Emilio DiSpirito



Pay For Performance


Traditionally, human nature shows that we do not want to accomplish more than what is required of us. To put it simply, most of the work force is looking at clock to see when they can race home to watch The Voice! Nexus has countered this approach by offering every employee (including our CEO) performance based compensation. Everyone is paid for the amount of work they complete, not the amount of hours they are present! This is why you will notice we are available 24/7/365!


Self-Driven Efficiency 


When one's paycheck is reliant upon their production, there will be an automatic efficiency built in to their overall operations. Maintenance technicians don't want to spend all day at the parts store, so instead of one trip every day, they now may make one trip per week to ensure their time is being utilized accomplishing work orders instead of waiting at the checkout line. Or, instead of sitting in rush hour traffic at 8am, they may elect to start their day at 7am so they get to spend that time at a job site instead! Simple improvements like this will add up quickly and result in increased morale for the employee, and better customer service to owners and tenants alike! Salaried employees are paid for a fixed, structured amount of time each day so there is no incentive in them being more efficient or improving their systems! They don't mind standing in the checkout line, because they are getting paid for it!


Built-In Accountability


Since employees are directly in control of their production and success, they are also in charge of their own mistakes. Should a follow up visit be needed to tie up loose ends they are not paid for that since they already were compensated for that task. This is undesirable to the employee because they now have to take UNPAID time out of their day to go and fix an issue. This is natural, built-in accountability. They DO NOT want to return to a job site so it ensures they do it right the FIRST time!


When you factor in all of the benefits of performance based compensation you should come to see that any other types of pay structures will negatively effect your bottom line. Real estate investment is a long term view, and ensuring you have the best team to get you to the finish line is absolutely imperative! Motivated employees create motivated tenants, which creates motivated owners. At that time, it’s best that you start searching for your next investment property!


Gregory Rice is the Vice President of franchise sales for Nexus Property Management®.  

Nexus Property Management® is a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.


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Nexus Feedback

Greg and nexus are a great Manament company if you need someone to manage you rental property they have all the answers and support to help you make money and not to worry about managing your property!!!

31 Jul 2018

Nick at nexus was the most helpful and professional realtor out of the MANY we dealt with. I would be happy to recommend him to anyone else looking to buy or rent a home

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07 May 2020