How Healthy is Your Property Management Business?
Health, fitness and wellness are big business today. And in business, smart managers are paying more attention to business performance. That’s because as the speed of business quickens and demands from clients increase, you need to be on top of things.
You’re a property management pro, well versed in managing and optimizing operations and people. However are you proficient in the 5 key aspects of your business? Few PM’s are masters of all domains. However, using good software and real data, you can do a health check up of your business.
Spot problems in expenses, time management or vacancies and have confidence to fix them to see your profits climb.
And when we speak of business health and fitness, there are many dimensions including finance, customer satisfaction, marketing, and accounting. Get command of them all.
Start with Good Questions
What are your benchmarks for business success? Where do you believe you’re having problems? Do you know which properties earn the least and why? How much has your software improved your bottom line?
We’re starting a series of posts that focus on helping you identify weaknesses and then get control of losses and powering up profitability. Whether it’s accounting, marketing, or finance, somewhere in your strategy, something is not working. Let’s get that fixed.
Property Manager and Owner Statements
Before we dig in, remember how useful property management software is in reporting financial status and keeping an eye on trends. It’s likely your most powerful business management tool and gives you fast, efficient insight. After you get better organized, the reports you generate will be reliable and insightful. They’ll help you feel more confident that you have control over finances and operations.
Where most property managers have trouble is in the quality of their accounting. Without attributing costs and management activity to specific properties, it’s very difficult to optimize your business. When property management accounting is fuzzy and imprecise, you’re building unfounded assumptions and your decisions could be questionable. Analytics software can take you much deeper into income and expenses and you’ll discover the poor performers.
Let’s take a quick overview of key areas of your business where you need to shine the light:
- Tracking Expenses – are expenses rising and too high and eating your profits? Tracking expenses explicitly for each property gives you better accountability, granularity, and hence much better reporting for you and owners.
- Key Performance Metrics – are you measuring performance objectively with real data? Check this post on the 11 tops property management kpis to assess. Use these to do your rental property cash flow analysis.
- Benchmarks and Smart Goals – are you setting the right goals? The benefit of excellent accounting software is that you can weigh your performance against industry benchmarks or any benchmarks you set. Real data lets you set Smart Goals and be enabled to achieve them.
The 5 Smart Goals:
• Specific (simple, significant)
• Measurable (meaningful, profit-building, motivating)
• Achievable (reasonably attainable).
• Relevant (reasonable and results-focused).
• Time bound (time-based, time and cost limited).
4. Occupancy and Retention – how is your tenant turnover, late payments, and tenant contact rates? Using a software solution such as ManageCasa, you can monitor just about everything. Find out what retains tenants and which recruitment sources performed best.
5. Market Presence – What are people saying about your company, managers and assets? When you build a good brand image in the market, it draws better tenants, attracts better landlord clients, client leads, and positions your company as the best.
Please bookmark this site and return to explore each element in more detail with our expert’s insight and tips.
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See also: How to Make Tenants Happy | How to Fill Rental Vacancies | Property Management Leads | Oakland Housing Market | San Francisco Housing Forecast | Furnished Apartments | Phoenix Housing Market | Las Vegas Housing Market | Los Angeles Apartment Prices | Property Management Companies | Property Management Apps | Landlord Apps Apple | Apartments for Rent | Renters Insurance | 2018 Rental Housing Market | Proptech Solutions | Tenant Screening | Improve Property Cash Flow | ManageCasa Property Management Solution