Despite your best efforts to make your property management business a success, there are certain factors that are almost entirely out of your control. One of these things is the economy. With inflation driving the costs of almost everything up, many companies are starting to tighten their belts and buckle down for the long haul. What can you do to hedge your bets and protect your bottom line as we navigate uncertain waters over the next several weeks and months? Let’s explore this a little bit below.
Lean on Technology
There are many ways technology can benefit your business, from making life easier for your team to enabling you to do more with less to maximizing service levels and improving retention. Automation is a powerful tool – especially during economic downturns, because it allows you to meet the demands of your customers without having to increase headcount. It also saves you money, which is essential when costs are skyrocketing. If you haven’t invested in or upgraded your property management software, the time to do so is now.
Stay Ahead of Maintenance Issues
Don’t wait for something to break before you address it. This will almost always cost you more in the long run. Instead, focus on preventative maintenance and timely repairs. Again, you can leverage industry-specific software to help you stay on top of routine maintenance tasks, like having major appliances, boilers and HVAC systems serviced. These seemingly small things can go a long way toward protecting your profits by preventing you from having to deal with major unexpected and costly repair jobs.
Focus on Retention
Losing a customer is never a good thing, but when times are tight, finding new business to replace those churned clients is much more difficult, so retention is never more critical than during a recession. While you should still be investing in marketing, your primary focus should be on keeping your current book of business happy and engaged. Continuously sell your value to your customers so they realize your property management services are still worth the expense. If ever there was a time to boost the ‘wow’ factor, that time is now.
Keeping a business afloat during challenging times isn’t easy, but with the right strategy, it’s entirely possible. Despite the grim outlook, your property management business doesn’t have to become a victim of external circumstances. Just focus on the three things listed above, and you should be able to weather the storm and emerge stronger on the other side.