What’s Stressing Property Managers?
Your overall goal as a modern property manager is to run your business more effectively. However, which challenges are landlords needing to solve in 2021 and prepare for in the next 5 to 10 years?
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Growing your rental property revenue may help, yet it could exacerbate 11 other challenges that have been identified in a recent poll of property managers.
This recent poll by Unicom of small/medium sized property portfolio managers revealed issues stressing property managers today. This is a very helpful poll showing PM’s are having trouble finding and keeping qualified property management staff and to maintain their profit margins.
Ranking Property Management Challenges
Let’s take a deeper look at the results of the Unicom poll and how it relates to what’s happening for property management companies. Here’s the numbers of PMs who cited specific issues as significantly challenging:
- Hiring and maintaining quality staff – 27
- Growing revenue – 15
- Damage and unexpected maintenance costs – 14
- time management – 9
- controlling costs – 8
- finding and keeping tenants – 6
- managing tenant complaints – 6
- accounting tasks – 3
- government regulations – 3
- communication to staff/tenants – 2
- inspection – 1
- marketing – 1
It’s important to remember that the questions chosen and wording of the poll can affect perception, but it’s safe to safe to say revenue, staffing, and time management are key stressors.
49% indicated that “hiring and maintaining quality staff” was significantly challenging.”
The study didn’t indicate how they were running their businesses or their levels of automation and proptech solutions. Given that the economy and rental property markets are growing, cap rates have flattened, and employee shortages are happening, these challenges will increase each year ahead.
45% indicated that lowering operating costs was significantly challenging
In our recent post, we discussed how hiring property management staff intelligently was perhaps the most important business decision. And we delved into hiring well, managing them smartly and keeping communication optimal.
38% side growing revenue was significantly challenging
Growing Property Management Revenue
Growing revenue comes from a better revenue building strategy, exploring the multifamily market, finding cash flow positive properties, and that might involve finding the best properties in the best cities, and increasing efficiency.
Without growing revenue, it’s difficult to keep up with cost inflation, stay competitive and keep investors happy.
A key question here however, is how these property managers are managing their businesses currently. A good portion of property managers today ( some estimate 80%) are using property management software, yet they’re not evolving quickly enough. It could be their current solution isn’t helping them solve these top issues.
What we know about property management companies is that costs are rising faster. This means property managers will need to be more efficient and bring more value to their clients.
While marketing is suggested as a non-concern, it might reflect that firms aren’t doing what’s necessary to find new clients, staff, and be creative about building revenue.
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