A Keen Focus on Business Growth
We’ve discussed the topic of growth and profitability in many posts, and they are vital topics for property management companies.
And since we’re attending the PM Grow Summit, Trade Expo in San Diego this week, it seems timely. There are a good number of property managers who are keen on growing their businesses either through new clients or by acquiring properties themselves.
With rent revenues rising so high, investors and landlords are jumping more aggressively into the rental sector in 2022. 18% of homes sold in Florida were by investors with rental market ambitions. Landlord investors across the US too are finding whatever existing properties might have potential and some are eyeing the built to rent sector too.
A Return to Growth as Key Business Objective
NARPM’s recent industry review shows tenants took at big leap in importance during the pandemic. Yet with the easing of the pandemic, property managers should once again refocus on growth and revenue. And if these companies earn about 20% of revenue, then the financial rewards for growth during a fast rising rent period is obvious.
That survey found the intent to achieve significant growth was 12% higher for the next two years. And moderate growth was cited by 39% more. The intend to achieve that via recruiting new clients and by encouraging clients to acquire new properties. A further 38% stated they would acquire properties themselves.
Success is All About Timing
Success is about timing. It’s these waves of technology and market demand that create the next great companies. Search brought on Google and EV tech brought on Tesla. And it’s more than just management going digital and paperless. This is the era of digital services and young tenants who demand online service and connectivity.
It’s a unique opening for bigger budgets, new equipment, added staff and services, to generate big profits. And nothing protects you from business failure or recession better than capturing marketshare with a larger base of clients. Growth is a solution.
Low interest rates, high tax benefits, and record demand means the profit picture is amazing. This generates excellent opportunity for property management firms to capture new owner clients. Some owners are seeking a completely new property management services firm. Many traditional shops simply can’t handle growth and aren’t using new digital technologies. Success goes to the prepared.
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To Landlords, Your Property Management System is Your Business
Perception is powerful. Owners can be persuaded by your adoption of a cloud-based property management software platform — ManageCasa. One of our clients has grown to manage thousands of properties, so you know they believe in our solution. It’s all in one, mobile, simplified, secure, on the cloud and it’s everything they want.
In your business growth plan, you’ll want to find that sweet spot in the number of doors you could manage most successfully. Our software can help you there too!
What Property Growth Will Require
If you were to double or 5X your managed properties, you would face the need to:
- hire and train property management staff on new cloud based solution
- build margins so you can keep paying staff a competitive wage
- use a property management software as your business foundation
- use software with specialization in accounting and tenant communications as they are the priority now
- use software to make administration and tenant relations much more efficient
- adopt automation software to streamline financial, marketing, and tenant communications
- use software for real time reports and insights into performance and see trouble coming
- position your UVP to offer additional value — digital services for added revenue
Global Property Management Software Market Size grew 6.4% to $US1.56 Billion in 2019 and will be US$2.58 billion in 2027. — reportsanddata report.
ManageCasa Does Much More
- automates accounting, rent payment, recurring bill payments and more — the full benefits are better explained when you book your demo with our product specialists
- helps optimize tenant communications to reduce misunderstandings and get the right maintenance and repairs done quickly
- helps you understand property performance for better financial planning
- optimizes and automates rental vacancy advertising to the right renter audience to ease your renter recruiting time crunch
- gives you a powerful yet simplified, easy to use dashboard that makes updates quick and error free
- helps you automate and process renter applications, leases, and lease driven accounting processes
- provides owner and tenant portals to enable self service which cuts inquiries
- keeps you up to date with all elements of your rental units, their condition and ongoing maintenance schedules
The beauty of our cloud-based technology is that it is modern and up to date. Whenever you’re challenged with an untimely event or expense, you know ManageCasa will help your staff deal with it.
By demonstrating our simplified but scalable cloud-based system, your future owner/landlords will be confident you can handle this workload.
And to better reach landlords and show your ability to attract great new tenants, your property management marketing website will showcase your brand to owners. Your ability to capture the best prospective tenants is key to impressing new landlord clients. Your biggest challenge is likely in convincing them of your management competence. You can prevent or solve most problems if you have a modern property management system.
So go ahead and plan for growth this year! Times like these may not last.
Book your platform demo, and be convinced that ManageCasa is the ideal solution for you.