If you’re like most property management professionals, improving efficiency and decreasing unnecessary spending are two goals that are constantly on your radar. Fortunately, cracking the code on how to achieve these goals isn’t nearly as complicated as you may think. In fact, with the right tools and a little bit of creativity, you can easily save substantial time and money while increasing the profitability of your business. Here are a few recommendations from our experts below.
Solid accounting is the foundation of any successful company. Keeping an accurate record of the monies you are bringing in and dishing out is the best way to pinpoint areas of waste and identify opportunities for improvement. The easiest way to make sure your accounting is top-notch is to utilize software. And not just any software, either. A solution that is designed to address the unique challenges of property management is key.
Be Strategic with Growth
When you’re just starting out, you may be tempted to take on more challenging properties because they are readily available and tend to feature a more attractive price tag. If you’re looking to simplify your business operations, however, it’s important that you approach portfolio growth from a more strategic point of view. Remember – the more work a property needs, the more you and your team will be bogged down with time-consuming tasks.
How much time does your accounting team waste chasing down payments? Not to mention the process of processing, batching and depositing those payments. All of this time could be better spent on more important business initiatives, such as growth and process improvement. And the best way to accomplish this is through automation. Utilizing software to automate the collections process will also dramatically reduce errors that can be costly to your business and eat away at your bottom line.
The best way to deal with problem tenants is to avoid them altogether. If you aren’t carefully screening prospective renters, you are setting yourself up for more work, future headaches and potential loss of income down the road. Be sure you are doing your due diligence before entering into a lease agreement with anyone. It may take a few extra steps on the front end, but the time, money and aggravation you and your team will save in the long run will be well worth it.
What’s easier and less expensive? Fixing a leaky pipe or dealing with the flood once it has burst? The answer seems obvious, yet many property managers fail to recognize the critical importance of being proactive. When a tenant requests a repair, respond in a timely manner. And always invest in preventative maintenance whenever possible. Again, it may require a little more effort, but it’ll pay off in the end. Plus, you’ll end up with happier tenants, which will help you retention rates as well. In successful property management, there are many moving parts. That doesn’t mean it has to be complicated or challenging.