In the property management business, the seemingly obvious way to increase company revenue is by adding doors. However, adding too many doors too soon can backfire and leave a strain on your company. Ultimately, this leads to overworking employees, yourself, and diverted attention away from clients. Property management company owners may feel pressured to increase revenue to keep their business thriving, but there are other ways of doing so. Streamlining your business operations, fostering vendor relationships, and thinking "outside of the box" can bring in additional revenue—without adding a single unit to your portfolio.
1. Automate Your Operations
With the advances in technology we enjoy today, streamlining property management workflows has never been easier. The use of eSigning documents is just one example of automating the leasing process. Rent Bridge can help create and implement other automated operations as well. Using automated technology while listing and renting homes greatly decreases vacancy time and make-ready proceedings. Your employees spend less time processing menial property management systems, so they work more efficiently and produce better results. Automated operations also bring a higher level of convenience to tenants. There is no wait time for them to complete essential—yet repetitive—tenant functions, such as pay their rent and look at rental homes. Increased tenant satisfaction leads to longer leases and less resistance to rent increases.
2. Hire a Virtual Assistant
In the daily life of a property management company, numerous tasks are simple to complete but repetitive. Your valuable employees could be diverting their skills towards more important tasks. Hiring a virtual assistant (or VA) ensures these tasks get done while your employees are much more productive elsewhere in your company. Virtual assistants are outsourced, and, thanks to the wonders of technology, can even be overseas and communicate with you using messaging systems such as Skype.
Some property management tasks that can be redirected to virtual assistants to complete:
- Publishing and delisting rental homes through syndication services
- Responding to simple email inquiries
- Sorting and indexing invoices
- Monitoring your company chat line and email inbox.
When hiring a virtual assistant for your property management company, screen the prospects with sample tasks to test their precision with details. Noticing subtle detail changes is vital in a virtual assistant. This way, your virtual assistant tasks are done without error and can successfully run in the background of your business. Once you hire your virtual assistant(s), train them thoroughly with plenty of guides and references to ensure accuracy in performance. With virtual assistants working seamlessly, your property management office runs efficiently with far less in-house staff. Less overhead is always a path that leads to more revenue.
3. Review and Revise Your Fee Structure
Maintaining a fair fee structure is vital in keeping clients long-time, but property management fees and best price practices change rapidly. To maximize revenue for your business, routinely examine your fee structure as it compares to the real estate market. SWOT analysis help determine the efficiency of your fee structure. The goal is not to charge your clients the maximum fees, but instead, judge if what you are earning is on par with the value of what your services bring. Have market rent rates gone up in the area recently? It may be time for a rent increase at the next renewal. Has an old home become high maintenance with a steep rise of work orders? Discuss with the owner ways of combining and streamlining work done on the house while potentially restructuring management fees to keep your property management company fairly compensated.
Routinely monitor your competitors' fee structure to be aware of where your company ranks. The goal should not be to be the cheapest management fee company, but rather, to bring your clients the most value for their management fees.
4. Partner with Vendor Services
There are quite a few services with which property management companies become very familiar. Air conditioning repair companies in the summer are one example. Creating a cohesive agreement with a reputable company is an excellent way to maximize revenue and bring value to homeowners and tenants. For example, partnering with a reliable and quick A/C repair service helps tenants receive dedicated and efficient service while your property management company receives a discount on services. This discount can also benefit the homeowner, leading to increased satisfaction in utilizing your property management services. Other candidates for vendor partnerships could include:
- Plumbing companies
- Landscaping companies
- Glass repair
5. Sell Advertising Space
Renters using your property management company are a very targeted marketing group. Many are new to the area and will have to locate businesses to assist with moving errands and other responsibilities. Selling ad space where new renters are most likely to notice the ad is a great way to generate revenue. Move-in folders, welcome emails, and the lobby waiting area of your office are all examples of where offer ad space. It also gives you a chance to forge relationships with local businesses that could lead to future business for you. Whenever you advertise yourself as a local expert, it helps to showcase it! Examples of companies who would be most interested in this ad space include:
- Furniture stores
- Mailing and shipping services.
Even with these tips, it might feel challenging to increase your property management company's growth without relying on your doors. When it comes to automation, it can be one of the most powerful tips we've listed here. However, depending on the skill at which you can traverse software, it can also be the most daunting. This is why Rent Bridge crafts solutions for property managers, designed by property managers. If you're interested in how automating your property management workflows can lead to increased revenue, get in touch with us! Schedule a consultation and let us get to know the unique needs of your property management company.