When you first started your property management business, you may not have had very many overhead expenses, especially if you worked primarily from your home. As you’ve grown, however, so has the need to hire additional staff and, likely, move to an office, where expenses have also increased. In order to maximize profits, it’s essential that you take the necessary steps to keep these costs as low as possible. If you’re struggling with keeping expenses down, here are 5 tips to get you on the right track.
Conduct an Audit
Start by assessing your current expenses. Make a detailed list of everything you’re paying for on a monthly, quarterly or annual basis. Then, determine whether there are any items on that list that could be modified or eliminated altogether. For instance, could switching to a different mobile carrier save some money? Are there things you’re paying for that you no longer need? This can help lower costs right off the bat.
Re-negotiate Contracts
Perhaps when you first entered into contracts with third party vendors your property management business was much smaller. As volume has increased, there may be room for negotiation on the costs of said contracts. For example, if you’re renting office equipment, perhaps you qualify for a discount now that you’ve increased the number of machines you’re renting. Either way, it never hurts to try.
Go Green
Not only is going green better for the environment, but it’s also a great tool for cutting expenses. Switching to a paperless environment, for example, will save money on everything from paper to ink and even the electricity used to run equipment like fax and copy machines. If you’re not sure where to begin, here are a few helpful pointers we shared in a previous blog post.
Shift to Digital
While the property management industry will likely always require some type of traditional marketing, many of these activities can now be shifted over to the internet. Leveraging more cost-effective methods like your blog, online directories and social media marketing, you can save a significant amount of money over time.
Look for Perks and Savings
There are a lot of areas in which a business can save money every month, but sometimes you have to do a little detective work to find them. A good place to start is with your accounting department. Could you be saving a certain % off your invoices by paying early? What about credit cards? Are there any cash-back offers you could be taking advantage of when paying for your everyday expenses?
Of course, these are just a few of the many different ways you can minimize expenses to maximize your property management organization’s profit. Do you have other tips, tricks or suggestions? Please share them in the comments below.
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