Property Managers Refocusing for the Road Ahead
How many times do business people forget important information and lessons? Perhaps too frequently, which is why reviewing insights and keeping up on trends/reports is a must.
A new report from the President and Chief Executive Officer of the National Apartment Association (NAA) reverberates much of what we’ve been reporting on our blog for years — that efficiency is the holy grail of property management.
This poll of 2,000 property pros by NAA offers actual recent survey data that tells us the property management market has changed. There are trends and progressions in our sector that pose challenges for landlords and investors.
Landlords Focusing on Operational Efficiencies & Staffing
NAA’s survey (in partnership with Appfolio) cites some challenges landlords are trying to surmount. CEO Pinnegar listed them in an article on Globest.com.
- Operational Efficiency – survey respondents cited cost reduction, vendor/supplier acquisition, work tracking, and reducing labor-intensive processes as key pains.
- Revenue Optimization – inflation is the last straw on the camel’s back and respondents say they are turning to technologies such as property management software and negotiating cost reductions as priorities.
- Staffing Quality and Shortages — staffing fell dramatically as an issue for respondents, however recruiting new staff, training new hires quickly and retaining workers to reduce turnover remains a top 3 pain point.
- HR and Recruiting Performance – 55% of corporate-level CEOs say HR/staffing/recruiting is the top challenge. Salaries and regulatory compliance were matters they are now most preoccupied with.
Operations and Admin Efficiency is the Kingpin
As we’ve discussed many times on our blog, efficiency has been the number one obsession for landlords, HOA managers and property managers. Yet, are managers really taking the proper top-down view of efficiency for their companies? That view is helped with data from your property management platform.
And the property management software helps you stay efficient beyond your initial business optimization project.
The poll cites negotiation with vendors as their revenue optimization strategy. That might only insignificant gains and undermine service quality. Landlords actually need a much more robust, comprehensive approach to revenue growth in digital services, improved amenities and a much stronger marketing program.
As you can see via our informal poll on Linkedin, landlords are dependent on rent increases for revenue which is difficult. However, is there sufficient imagination and focus on growing revenues?
Why is Staffing a Problem?
Our sector is changing with automation, increasing regulations, falling profit margins, and fewer trained/licensed staff. It’s apparent that reliable talent is in short supply so moving more of your business to digital and using outside contractors is the way to go. An All in One digital platforms reduces workloads and lets you focus your available funds to acquire essential key talent, who are empowered with modern digital tools.
Today, it might not be a staffing issue but rather a reluctance of managers to accept the inevitable role of technology in business.
Profitability, cost-effective resource usage, and staff performance today pivot on great software.
Long-Term Concerns for Property Managers
The future arrives quickly. Regarding the long-term outlook, NAA’s survey respondents were asked about their concerns. They cited concerns about affordability and the cost of maintaining/repairing aging buildings, regulatory compliance (energy/safety), and rising financing and construction costs.
Although times are good now, the road ahead has some high toll costs and potholes which could derail many landlords and property management businesses. Hopefully, you’ll have adopted modern next-generation technology to streamline for optimal profitability. A focus on profit is the best way to make your business healthy.
Explore more on how ManageCasa™ can help you fulfill your efficiency and revenue optimization processes now.
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