How Much Does Your Pain Cost?: Navigating Pain Thresholds in Property Management
No matter the industry, encountering pain is inevitable. There’s a delicate balance between essential tasks and those that make you pause and question, "Why am I doing this?" It's normal to hit a wall now and then, and typically, you can recover after a few low-pressure days (or a trip to Dubai—whatever works for you).
But what if you’re not bouncing back? Does it mean it’s time to pack up and cash out? Not necessarily.
Instead, it’s time to evaluate your pain threshold and address the tasks that weigh you down. By doing so, you can streamline your operations and focus on what truly matters. Before we delve into how to evaluate our pain threshold, let's first define what it is. Our pain threshold is the level of discomfort we can tolerate in our day-to-day operations. While I am using Property Management as my example here, this concept applies to any industry. Essentially, it boils down to these questions: How much money would it take for me to do tasks I do not like doing, to make them worth my time? What tasks are so unbearable that no amount of money could make them worth doing?
But for all of my Property Management friends - It’s crucial to consider two points before evaluating your pain threshold: First, remember that you are in the real estate and people business. If interacting with owners and residents cause you severe pain, it may not be a task problem but instead an industry problem. Second, consider whether your market can tolerate specific changes to your operations. While we aim to reduce our pain, some tasks offer a competitive advantage and cannot be ignored entirely. For example, managing furnished rentals can fall well within one company’s structure, be a point of severe pain for another, or it can be integral to the success of another company (such as a company within a market highly focused on vacation rentals). It's important to understand where tasks fall within your pain threshold as well as your core service offerings. This will help you decide whether to alleviate the pain or if it’s actually time to move on.
Today, we’re focusing on tasks that fall outside the core scope of work. As you evaluate your pain threshold, categorize tasks into No Pain, Mild Pain, Moderate Pain, Severe Pain, and Excruciating Pain to determine how to address them.
No Pain (in a state of equilibrium): Tasks that do not cause any discomfort and are seamlessly integrated into your daily operations. (i.e. we LOVE managing furnished rentals - let’s get you signed up today!) These tasks don’t require additional fees as they do not significantly impact your workflow or stress levels. These are typically our day-to-day operations that are the core function of what we do. If you can’t find a single task you do that fits into this category - we are back to assessing if this is an industry problem; not a task problem.
Mild Pain (slight discomfort, minor irritation): These tasks need to be done, but our day feels better when we don't have to do them. For example, mailing owner statements and paper checks. We can add minor "inconvenience fees” for these tasks; fees that are low enough as to not be a barrier to entry but help reduce the pain. (i.e. a $75 “inventory charge” when onboarding furnished rentals).
Moderate Pain (more noticeable, can still perform daily activities): Our pain threshold can handle moderate pain without completely interrupting our operations. If we don’t like it and can’t ignore it, then we need to charge for it. This might include fees for opening home warranty claims or turning utilities on and off at a property (or charging an additional percentage to lease furnished rentals that is waived for unfurnished rentals). To manage moderate pain, limit exposure to triggers. For example, include terms in your management agreement stating that home warranties will not be contacted for emergency work requests, and set clear expectations with owners. Clear communication and moderate charges are effective responses to moderate pain.
Severe Pain (difficult to ignore, starting to affect concentration and mood): Severe pain must be met with severe responses - you either say no to it or charge an unreasonable amount of money to do it. This means setting a fee for the work that makes it worth doing or makes it unlikely clients will request it. This is the epitome of charging for our pain. The threshold must be high enough to create a true barrier to entry. The cost is determined by our willingness to do the work for a specific amount. For example, a 30% oversight charge on insurance claims might deter most clients, but for those willing to pay, the work becomes worth doing (i.e. charging a 15% management fee + 2 months rent leasing fee for furnished rentals). If you look at a task causing severe pain and find no number that makes it worth doing, then you are entering excruciating pain territory.
Excruciating Pain (impossible to function, emergency attention needed): These tasks make us consider a career change. Tasks causing excruciating pain need to be delegated or refused. This level of pain cannot be ignored and significantly impacts your overall productivity and mental well-being. If a task causes excruciating pain, the only viable solution is to delegate it—whether by hiring a new employee, assigning it to a team member better suited for it, or outsourcing to a specialist. Alternatively, you must be prepared to tell clients NO. The nature of excruciating pain is such that it drains your energy, focus, and enthusiasm for your work, making it impossible to perform at your best. Acknowledging and addressing excruciating pain is crucial, not just for your own well-being but also for maintaining the quality of service you provide to your clients. Accepting work that makes you hate your job is doing a disservice to yourself and your clients.
Understanding and managing your pain threshold is essential for maintaining a healthy, productive, and enjoyable work environment. By identifying which tasks fall into each pain category, you can make informed decisions about delegating, outsourcing, or adjusting your fees to reflect the true cost of your efforts.
Don't let unnecessary pain hinder your success. Contact PM PathBuilders today to run a diagnostic on your business. We will help you alleviate your pain and create perfected processes and workflows that reduce your pain all around. Empower yourself to focus on what you do best.
Optimize your operations and reduce your pain today for a more productive, profitable and enjoyable tomorrow.
