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How to Run a More Profitable Property Management Company

February 08, 2022

Optimize Property Management

Being good at property management doesn’t necessarily mean you’ll be adept at running a property management company. It requires significant talent and good tools.

And the property management challenges that one manager believes are important aren’t considered critical to others who have planned well and dealt with them already. Each manager is unique and some find the unique solutions they need.

As Pandemic Ends, New Challenges Appear

The pandemic period created a set of financial and legal challenges, but that period has passed and a new set is appearing with inflation, rent price controls, affordability, and higher financing costs.

Can property management software resolve all these specific threats?  What it can do is help you bring your workload under control, and give you power tools to solve your specific challenges and needs for improvement.

On that topic of improvement, take a good look at the full capabilities of a cloud-based solution such as ManageCasa.  From dedicated accounting tools to efficient tenant communications, its automation features alone take work away.

We know you can solve your property management issues, if you have the time.  Then freeing up as much time as possible should be your priority. Cloud based property management software is the right tool for that job.

 

Optimize, Automate, Delegate, and Communicate

 

What Do Your Financial Reports Say?

Can you improve without being too technical? Yes, although with your property management financial reports, you’ll discover what’s wrong quickly against industry performance benchmarks and meet your own profit expectations.

Improving your Property Management Business comes down to 6 Criteria:

  1. optimizing budget and operating costs using data — be guided by your financial reports and then compare to industry benchmarks if possible. Do you need more money, or are your daily operations out of date?
  2. write and manage leases well – standardize your leases across all units to save time and automate all lease related activities including accounting.
  3. automate and manage time as a precious resource – eliminating micromanagement is simply the act of respecting what you need to focus on the most. Delegate, automate, or outsource.
  4. optimize tenant communication – make communications professional by automating messaging, creating consistency in messages, and allowing tenants to inform themselves via the tenant portal.
  5. grow and improve your services mix – adding services and improving them (e.g., online rent payment, tenant portals, marketing automation, and adding digital amenities) impresses owners and reduces tenant churn rates.
  6. market your business professionally – get more done and bring your leasing activities inhouse.  Automate marketing and leverage the power of a property management website. Sustained business is marketing. Online marketing is absolutely essential. Your company website and lead generation sources should be market leaders always providing a rich source of landlord leads and renter leads.

What are Your Biggest Challenges?

Property Management Challenges

Property Management Challenges. Screenshot courtesy of Google.

Assess and Optimize How You’re Doing Business

Like most property managers, you’re heavily focused on what you’re doing day to day. But that kind of focus gives you tunnel vision. You may need to review your property management business model, scale up to improve profit margins, and improve your competitiveness.

Today, you would be wise to reassess how you’re running your business. You’ve likely suffered reduced profit margin on all your units. Given the economy, inflation, supply issues, you’ll be forced to do more with the operations budget you have.

Streamlining, improving profitability, increases in services, buying more rental properties, improving maintenance, and lowering staff and contractor costs are all part of thriving in property management in 2022.

A Few More Management Tips:

  • use software messaging tools to communicate well with your staff and tenants
  • communicate with tenants with a plan, and make it easier for them to listen to you and pay you
  • automate any work that can be automated to free up your time
  • grow your profit centers and entertain the idea of digital amenities
  • create a mission to minimize work and effort and convince staff of the process
  • use a simplified property management platform – an online management platform streamlines your work raising efficiency, while enabling convenient services for tenants, and helping you avoid the losses of your bad business habits
  • keep your work and personal life balanced so you have quality energy
  • advertise your available units well on your marketing website — build its power to create visibility via Facebook and Google and show rental suites
  • market your business consistently and strongly for market leadership
  • establish a property management brand that says you offer the best property management company

To wrap up this segment of improving your property management company, let’s talk about small business excellence.

Check out some other property management companies in Hawaii, Los Angeles, Phoenix, Miami, and Denver to understand their hanlding of processes.

A Passion for Excellence

Successful SMB owners have a passion for what they do. Their desire powers their intent to succeed and surmount obstacles. It gives them optimism to look at their firm differently to build their brand and run the business better. It can help you make the mundane, boring, tedious, and difficult a stimulus to improve and take chances to grow.

With a new, better business model and attitude about efficiency and automation, you’re creating a company your staff will like too. That could solve your staffing issues. Happy staff do more and better work, and they learn faster.

With your challenges identified, you can bring more resources to bear on them to turn them into your greatest strength.

This process will help you refine your business mission and vision, making it easier for all the parts to work together, including your staff.

Is there any one asset or tool that can help you run your business better?  Yes, it’s called ManageCasa.  Take a good look at this simple and powerful system for managing rental properties.

Schedule a Demo to See how ManageCasa makes operations, finance, leasing, and rent collection so easy.

Property Management Topics:  Property Management Software | Rental Property AccountingManagement FinancialsSimple Property Management SoftwareProperty Management Companies | Property Management Business | Start a Property Management BusinessLandlord Software | NARPM Convention | REALTOR Conference | Property Management Conferences 2023

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