How Many Properties are Too Many?
The first response of many landlords or property managers to the question of adding properties is one of disbelief and refusal. The work stress and problems would balloon and that’s not a motivating thought is it?
However, is your own view of your limits accurate and have you even tested those numbers? Could be you can do more, and perhaps will have to make your property management business successful.
Thing is, we must all progress in how we do our work, or someone more efficient will put us out of business. We can’t escape it for long today. The fact is, property management is being revolutionized via software, electronics, and the Internet. The whole idea of limits is being put into question.
And whenever we think about our potential or our future business, we tend to view them as an extension of what we’re doing now or how we’ve always done things. We visualize the same results. But that’s flawed thinking.
Visualize this: That aha! moment when we realize our income and profit could suddenly jump if we did things differently.
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We only need to start visualizing our daily work differently and the results we’ll get. What if you did things differently, with a mind for finding a way to manage twice as many properties? If you believe there is a way, that more can be done, you’ll carve your own path to it.
The barrier to improvement isn’t technical, it’s mental and emotional. We can set a new goal and then create our own solution to reach it. This approach can open you up to higher property management revenue.
Marginal Costs Fall With Volume
As we grow our property portfolio, our marginal cost is reduced until we reach a certain number of properties/tenants, where that will once again rise. That’s old school thinking though from our economics class.
Today, operating budgets and fees are falling while costs are rising. That’s one reason property management software is in such demand. If we stand still thinking we can’t do anything about it, we’re paralyzed and unable to impove to meet challenges. But growing tenant and property numbers can help us discover new ways to run our business, and save us a lot of future pain.
Using automation software in property management, we can reduce time spent with paperwork, tenants, and tasks, and outsource some of the work to tenants, contractors, and service providers.
The automation itself discourages time waste for the landlord and property manager. Tech systems aim at efficiency gains by doing some of the work such as processing rent applications and automating tenant communications.
Growing Property Management Revenue
If we use software technology to double our portfolio from 30 to 60, we’re getting twice the revenue with only marginal cost increases. If your 30 properties bring in $3600 each, you’re going from $108,000 income to $216,000. And that leaves you room to hire an assistant.
Automating Cuts Down the Workload
Landlords and property managers have always done things manually, including walking, completing paperwork, doing in person checkins, making bank deposits, getting paid by check, and taking lots of phone calls. That is a lot of work and it would certainly present limits on portfolio size.
It’s not that we’re a property management software company that we suggest that automation technology could let you reinvent yourself as a property manager or make you a better landlord. That’s what all this tech stuff is for, and SaaS cloud based property management systems are about as hot a sector as there is today. Scalable, secure, versatile, efficient, and some are user friendly. It’s success is speaking for itself.
And it’s a bargain. ManageCasa’s prices are ridiculously low considering the end value you receive. And with ManageCasa’s income and expense reporting, you can see your improvement on a monthly basis.
The reporting features are great. Seeing the graphs and charts regarding how your financials are changing is really motivating.
If you want to earn a lot more, you have to grow. If you get over the mental barriers as many property managers are, you can find yourself getting rid of the nasty tasks and earning a lot more.
You may not knock down that brick wall of resistance right now. Not without beginning to revisualize your business and results you could be getting.
Hopefully, it won’t be the property owners who come to you asking for growth and improvement. Taking the initiative yourself lets you control the path all of this takes rather than you being given directives from them. That’s uncomfortable.
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