Property Owners Want Better ROI
With all the new technology, they know they can get it. It might seem unfair to ask you the property management company to grow ROI, yet their request for more is your opportunity to ask for more from them.
There are 8 areas that you have control over and below you’ll discover 8 great ways to improve profitability. While automation, Proptech solutions, (check out our Beginners Guide to Proptech) and controlling costs are great tactics, you’ll need a more cohesive plan to keep owners happy.
Armed with a new focus on ROI, you’ll be better able to work with owners and investors to make this happen.
Are You Ready for Increased Competition?
With flat rent revenues and rising costs however, owners are under pressure. For the past 6 years, property manager’s focus was on growth in property portfolios and revenue, and it came a lot easier. Owners may not understand how difficult it is for you to assist with their profitability expectations.
Before you ask for their help in funding new technology, better marketing and improved cost control, you might want to grow your knowledge, gear up for strategy, and assess those areas of your business to be improved. What’s doable and what isn’t?
8 Ways to Position Yourself to Actually Grow ROI
Here’s 8 considerations below to help you position yourself so owners will let you innovate, optimize, and generate the returns your landlords/owners dream of.
Sure you can add secondary revenue sources to grow ROI. But if you want to create strong ROI you need a coherent strategy to persuade your landlords and owners. Consider the conversation you can have with owners after you move into an advisor mindset.
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8 Key Ways the Pros Use to Grow ROI
Are your property management software reports are showing decreasing ROI over the last few years? Perhap’s it’s time to re-envision how you could manage your properties differently. Here’s a better mindset:
- Think like an owner and an expert advisor. Grow ROI, property management brand and visibility, through better marketing and better advisement. Owners want greater revenue, but they need help visualizing in their terms what might move everything forward. Think big picture and study this from their point of view. Meet with your owners and remember the words, phrases and topics they speak of — that’s their mindset. This is where you learn their concerns and fears as an investor.
- Understand what drives your Property Owners. What are owners really trying to get out of their property investment? Long term revenue, tax breaks, grow capital asset value then sell? Advise them on trends in the local market, in cost trends overall in multifamily, and how they can time their investments. Help advise them on the best manageable multifamily properties they might buy in 2019/2020. Your advice may be the single most important factor in future profitability.
- Get deeper into finance and financial analytics. Use your financial software or property management software to provide deeper insight into income and owner statements. Read more to learn the language of finance and use your software to help visualize key financial data for them. This will enrich your conversations with them. Talk about cash flow, NOI, net operating expenses, principal and interest payments, capital expenditures, depreciation, and amortization and how you can improve each.
- Communicate more clearly. Visit, inspect, and prepare reports and key discussion points that encourage owners to recognize the value you bring, and re-interpret project and management services in terms of how they add asset value and income growth. This way, you’re helping funnel funds into projects that will succeed and create ROI. Listen more carefully to their responses, moods, and feedback.
- Be more of the local market expert. From labor, pricing to local bylaws and technical building issues, establishing authority and expertise on the local market means you’re more valuable than a common property manager. Again, as an advisor, you’re moving your own value proposition to a higher plane.
- Consider the dollar value of your requests and planned projects. Use your software to build out revenue and ROI projections and present dollar values for each. They’ll appreciate how you’ve mapped out different paths to profitability, which makes their work easier. Owner reports are key communication tools.
- Do more for tenants to grow community and comfort. Consider providing new digital amenities in your developments, and plan social events for tenants. Organize sports and recreational discounts with local companies/venues to encourage them to get out and have fun. Be assertive and create a happy tenant.
- Improve maintence services, responsiveness, and communication. Going digital with ManageCasa’s property management software platform can streamline operations and take the load off of your and your staff.The path to better profitability is the high road. Work on the big picture, about how you can assist owners get more out of their investment. Be more helpful, insightful, and increase the conversations you have about the properties.
Your owner clients may not be financial or business geniuses despite their proud claims. Either way, investigate and bolster these 8 key areas of profit mastery, and you’ll be looking a lot more valuable to them.
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