Despite its importance, estate and household management often takes a back seat in family office priorities. Yet, these personal properties housing families and cherished belongings can become a major source of stress if not managed properly. By effectively managing this area, family offices have the opportunity to significantly improve families’ day-to-day lives. Here are three common mistakes family offices make in this regard and how to avoid them.
Pitfall #1: Lack of structure
Many families and family offices tend to treat estate management with less professionalism than other aspects of the family office. Without proper systems and tools to back up information, the household knowledge tends to live in the minds and personal phones of a few trusted individuals. Relying solely on long-time estate managers, chiefs of staff, or trusted employees creates a significant vulnerability. What happens if they suddenly leave?
If the estate manager resigns unexpectedly, all vendor contacts, schedules, and property details stored only in their memory are lost—leading to disruption and costly delays.
Beyond that, without systems to help them succeed, household staff members lack guidance and support, leading to frustration and turnover.
To avoid these compounding issues, family offices can leverage technology-driven household management systems that effectively store, document, and transfer knowledge. These systems centralise vital information, ensuring continuity and preventing chaos even when key staff members depart.
Pitfall #2: Reactive property maintenance
Luxury homes are complex ecosystems held together by high-end technology and customised finishes. As such, they require more than occasional fixes or surface-level cleaning. Without a proactive maintenance strategy, minor issues could escalate into expensive repairs and upheaval for the family’s daily life.
For example, let’s take a small leak at a family’s second home that goes unnoticed for a couple of weeks. What starts as a little trickle, which could have been detected through regular checks, can eventually result in major water damage, requiring costly and time-consuming repairs.
Family offices can implement proactive maintenance schedules and rely on a property management system to avoid such issues. Setting reminders for regular maintenance and keeping track of equipment records and repair histories allows them to minimise emergencies and avoid the cost and consequences of major repairs.
Pitfall #3: Casual hiring and HR practices
Many family offices maintain professional HR practices for their businesses but neglect them in household management. Managing homes with paper binders, spreadsheets, and unstructured teams invites problems.
For instance, paying a housekeeper in cash without a formal contract can lead to misunderstandings, disputes about hours and duties, and erosion of trust. This, in turn, can trigger micromanagement, high turnover, and potential legal issues.
Staffing a household with professional, qualified employees can prevent issues and bring positive results, including a stable work environment with staff who understand what is expected of them. This comprehensive guide to household staffing has resources for both new and experienced household employers, such as job description templates, salary benchmarks, and expert hiring tips, as well as training workshops to help manage luxury homes and properties.
Conclusion
While managing multiple households and properties is undoubtedly complex, it’s also an opportunity to significantly enhance families’ everyday lives. Family offices can leverage tech-driven platforms to implement structured systems, adopt a proactive maintenance approach, and professionalise HR practices. They can transform estate management from a potential headache into a seamless, secure, and scalable operation. Ultimately, this ensures the family’s well-being and protects their valuable assets.
About Nines
Nines is an estate management platform built with security and ease of use in mind, backed by VCP Ventures (Marc Lore and Alex Rodriguez). Discerning families and family offices use Nines as a centralised household manual and operating system to simplify managing properties, assets, vendors, staff, projects, and more. Plus, Nines offers in-house estate management support, workshops and consulting. Nines is headquartered in New York City, with clients across the United States, Canada, the United Kingdom, Dubai and Australia.
