Choosing the right commercial property management support model for your growing portfolio

When it comes to managing commercial property operations, choosing between an in-house, hybrid, or fully outsourced approach to handling administrative tasks in your property management software can feel overwhelming.

This article explores three approaches with a particular focus on mid-sized portfolios, helping you identify which solution best aligns with your portfolio size, internal resources, and long-term business goals.

Table of contents:

• Data Ownership
• Tech Management
• Cost
• The Bottom Line: Where Mid-Sized Portfolios Start Saving

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Data Ownership

One of the most important considerations is data ownership and visibility. Whether it’s impaired decision-making or operational inefficiency, limited access to your property management data can have several downstream effects.

• In-house: When administrative work is handled internally using your own software, you retain full control and ownership of your portfolio data. This ensures visibility but also means you’re responsible for data security, system management, and regulatory compliance.
• Outsourcing to a managing agent: In this model, administrative tasks and associated data are typically managed within the agent’s platform. This centralised approach can streamline processes and provide access to established reporting tools and protocols. While direct system access may vary, many managing agents can offer structured insights that support portfolio oversight and performance tracking.
• Hybrid – Managed services with your software provider: A hybrid approach allows you to maintain ownership of your software and data, while outsourcing time-consuming administrative tasks like reconciliation and reporting. It can provide operational support without fully relinquishing oversight, offering a middle ground for teams seeking both efficiency and visibility.

Tech Management

Once you understand who owns the data, the next key consideration is who should be responsible for managing the technology. Having the right property management system is just the beginning. Real value comes from how well that system is maintained, optimised, and aligned with your evolving business needs.

Ongoing tech management is crucial but how much of it should be handled in-house?

• In-house: Managing your software internally means you’re responsible for updates, training, and ongoing support. This approach offers a high degree of direct control but necessitates dedicated IT resources and management of system complexities.
• Outsourcing to a managing agent: Fully outsourcing often means utilising the provider’s platform, but can enable teams to streamline internal operations and reduce workload.
• Hybrid – Managed services with your software provider: A hybrid approach combines the use of your preferred software while outsourcing system maintenance, upgrades, and compliance tasks. This aims to alleviate internal IT burden while maintaining familiarity with the existing software platform and ensuring its continued functionality.

Cost

For mid-sized portfolios, each model presents different cost implications, both in terms of upfront investment and ongoing operational efficiency. It’s important to look beyond software licensing alone and consider the full picture. This can include, staffing needs, IT overheads, system maintenance, and the ability to scale.

The cost-effectiveness of each model will vary depending on the size and complexity of your operations.

• In-house: This model may suit organisations with existing internal expertise and infrastructure. While upfront software licensing costs can be predictable, long-term expenses such as training, IT support, and compliance management may increase overall spend over time.
• Outsourcing to a managing agent: This model offers a bundled service approach, combining software access, property management expertise, and operational delivery. While it typically involves higher ongoing costs, it can provide value through reduced internal workload, access to industry best practices, and professional management infrastructure.
• Hybrid  – Managed services with your software provider: Costs in this model can be more flexible, depending on the level of support required. It can offer savings in administrative workload and system management, while still requiring some internal engagement to manage strategic functions and oversight.

The Bottom Line: Where Mid-Sized Portfolios Start Saving

For property managers overseeing portfolios of under 200 leases, a hybrid approach can offer a practical balance. You keep control of your software and data, while outsourcing time-consuming administrative tasks to a trusted managed services team.

MRI’s Managed Services for Property Accounting provide growing property teams with:

• Reduced admin workload without giving up software control
• Access to enterprise-grade solutions at a lower total cost
• More time for strategic decision-making and business growth

Download our free eBook to explore your options and discover how to get the most from your property management software.