House Management Company or Employ a Full Time House Manager
Q. Should you engage a house management company or employ a full time house manager?
I feel both options has its pros and cons. I hope the below analysis helps in making the decision that works best for you.
Cost Flexibility – One obvious benefit to hire a management company as compared to employing a full time house manager is to have variable cost instead of fixed cost on the House expense sheet. Home owners could negotiate project based work such as recruitment of household staff, setting up operational systems and procedures, engaging Property Maintenance contractors or managing house refurbishment projects. There is no commitment for long term engagement if there is no ongoing or recurring need. However, it is always advisable to document the requirements, timelines and fees payable in a contract format.
Overall Cost – Annual salary of an experienced house manager ranges from £50,000 to £70,000. Once you factor in employers NI contributions, compulsory pension contributions, recruitment costs, holiday pay and sick pay it quickly adds up to around 30% – bringing the actual cost in the region of £65,000 to £91,000 per annum. This is not taking into consideration additional perquisites such as bonuses, car/travel allowance, accommodation (if required), training and development needs etc. Compliances and administrative paperwork requires additional time and resource thereby increasing the overall costs. Compared to typical monthly management fees which ranges from £4500 to £6000 per month (all inclusive) depending on the complexity of the project. (to discuss if this could still be there to provide an idea/clarity on my costs, can review at a later stage once work pick up. Also will discuss upfront payment plan)
Expertise – Home management companies would generally have familiarity and understanding of several home automation systems, home alarm systems (fire and smoke/ intruder), building management systems (BMS), AC and plumbing systems in high end luxury homes. Equally on the staffing front, home management companies would be able to guide on legislative requirements such as employment contracts, job descriptions, timesheets and payroll set up. Understanding and creating training manuals and operational SOPs for housekeepers, chef, chauffeurs, butlers and private PAs to facilitate a seamless operation at home. Experienced House Managers would be able to deliver on above requirements comfortably and may already have a black book of resources to tap into, for all property management needs
Culture and Control – A full time House Manager would invest greater time and energy to integrate themselves within an existing house culture. A home management company on the other hand may focus solely on the tasks on hand and deliverability. We know most tasks are accomplished upon establishing strong working relationship and joint effort of team members. If property owners desire more insight and control over how the work is being accomplished then a full time house manager may work as a better option.
Great thing at Mayfair Homes is that we are able to assist high end luxury homeowners with both options. We can tailor make solutions on the basis of specific pain points and ensure your prized possession ticks over like clockwork!