Regardless of whether you’re managing a dozen or several hundred properties, one of your biggest goals as a property manager is to increase your profit margin. So what is it that the most successful property management organizations are doing to not just stay afloat, but thrive in even the most trying economic times? What makes these firms stand out amongst the competition and continue to achieve growth and success, year after profitable year? Let’s take a look at some of the commonalities that you can also put into practice for the benefit of your own property management business.
Increase the number of properties you’re managing
Perhaps it’s obvious, but it only stands to reason that the more properties you’re in charge of, the more income you’ll have coming in and the more profits you’ll realize. Of course, in order to manage more properties, you have to ensure that you’ve got the capacity to do so. Implementing the right property management software can help you scale up without having to bring in additional staff.
Expand the types of properties you manage
If you’re only managing homes, you’re missing out on a number of other profitable markets, such as condominiums, commercial, non-profit and third party properties. The more you broaden your horizons, the greater opportunities your business will have at its disposal. This means more properties overall, which means increased revenue for your organization.
Maintain maximum occupancy
If you’re renting your properties, you need to keep paying tenants in as many units as possible if you’re going to turn a profit. An empty unit means lost money every month. Make sure you’re adequately screening prospective tenants and stay on top of maintenance requests. This will improve the quality of your residents and reduce costly turnover.
Keep your rates competitive
It may seem as though offering a lower fee for your services will draw more people in, but if you’re discounting your rates too much, your business will suffer. Conduct a competitive analysis to determine what the going rate is for property management services in your geographical area and set your prices to match those of others in your field.
Lower your expenses
This may seem like a task that is easier said than done, but there are plenty of ways you can lower costs within your organization so that they aren’t cutting into your profits. To get you started, here are 5 simple cost cutting tips that you can begin implementing right away.
The ultimate goal of any property manager is to achieve maximum income at the lowest possible expenditure. Implementing some or all of these things can be the key to turning your property management firm into a well-oiled, profit-generating machine.
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