By Jennifer McCready
Running a successful property management business comes down to the ability to make more money than you spend. Recognizing this fact and actually accomplishing it, however, are two entirely different things. There will always be expenses involved in operating your business, but there are some things that you can do to help reduce them and subsequently improve your return on investment (ROI).
Seems simple, yet given the hectic nature of our industry, doing so can be quite the challenge. It’s important, though, because if you’re not organized, things can start falling through the cracks. For instance, not keeping track of or following up on outstanding invoices can affect your cash flow and impact your bottom line.
Hire and Retain Top Talent
Your ship is only as good as the team you have driving it, so make sure you’re doing your best to attract, hire and retain top talent. You should also be investing in quality training so that everyone in your office knows how to do their best at their job. Efficiency and productivity can vastly improve the output of your organization, which in turn helps to boost profits.
Do More With Less
The key to maximizing your ROI is finding a way to do the most work with the least amount of resources. Technology has given property management professionals the tools necessary to achieve this goal. By automating routine, repetitive tasks, you’ll free up your personnel to focus on more important things. Best of all, you can scale up your business and realize growth without having to hire additional staff.
Incentivize Timely Payments
Whether you’re collecting fees from your clients or rent from tenants, the faster the money comes in, the better. Improve the chances of timely payments by offering incentives. Whether it’s a small discount for paying early, or the threat of a late fee, implementing these things can vastly improve cash flow.
Stay on Top of Maintenance
Properly maintaining the properties you manage is critical to the ongoing success of your organization. If you’re not staying on top of these things, not only could you be losing money on costly tenant turnover, but you’ll probably end up spending more in the long run on major repairs. Routine maintenance and timely response on maintenance requests will keep your tenants happy and your properties running smoothly.
These are five simple, yet highly effective tips you can start focusing on today and begin realizing a better ROI almost immediately. Property management software can help with just about all of these things. It will help you stay organized, keep employees happy and productive, improve efficiency, promote timelier accounts receivable and stay on top of property maintenance. If you’re interested in learning more, click here to request a free demo.