The right processes can lead you to property management success, but if you're using the wrong processes, you might find that you're struggling to get ahead of your competition. If that's the case for you, it may be because you're using outdated methods and plans that don't support your growth.
Another potential problem with your property management processes is that they aren't being executed properly. Even if they're good ways of doing things overall, execution is very important to increase your value to customers.
Understanding what you're missing with your management company's processes matters. Here's what to consider when you want to ensure your management processes are the best they can be to increase your chances of having a successful business your clients can rely on.
The Importance of Good Processes
Good processes make it far easier for you to streamline all the operations you have on a daily basis. That's a huge part of how to grow a property management business. Not only does it make handling tasks much more efficient, but it also means you have better communication with your property owners and tenants.
Both tenants and owners appreciate good communication and efficiency, so they're kept "in the loop" and don't feel like you're leaving them out of decisions or chaotically managing their properties. While it's certainly not necessary to contact tenants and owners for every little thing, they should feel like they're valued by your company.
Keep Your Customers Happy
The right processes increase customer satisfaction, so you can quickly and efficiently resolve tenant complaints. For example, when repair and maintenance services are needed, tenants shouldn't have to wait because your team lost a maintenance request or work order. Additionally, property owners shouldn't have to worry about whether their properties are being cared for properly or whether tenants are waiting for answers on maintenance issues.
Sometimes it's not possible to fix something right away, but that's where strong communication and efficient processes come in. Excellent processes show owners and tenants that you hear them and care about their concerns and that you're taking steps to resolve the issue quickly so they can have peace of mind and trust your company to work with them.
Manage Your Finances Efficiently
Another area where the way you do things matters for future success is in handling your management company's finances. Property management business owners must track revenue and expenses accurately to see how their company is performing. If there are problems, you want to make corrections as soon as possible.
Better forecasting and budgeting processes help you become and stay more successful. Your budget may be tight or pretty reasonable, but either way, you want to make sure your company isn't spending far more than it should be. By budgeting well and forecasting for the future, you can improve your success rate.
Lower Your Risk Level
Mitigating risks is an additional consideration that comes with good process management. When your company's processes and methods run smoothly, you can identify risks quickly and mitigate them as soon as possible. Doing that can keep a small problem from turning into a big one over time.
You'll also be protecting yourself by mitigating risks right away since you won't have as much liability, and your legal concerns will be a lot smaller. In short, you don't want to leave issues unaddressed and properties in poor repair and end up being sued for any harm that came to a tenant, vendor, or another person.
Poor or Outdated Processes Have Consequences
When you're using poor methods that are out of date, you're reducing your company's efficiency. Unfortunately, you may also be lowering your productivity, and that's not a good thing for property management success. Problems in these areas can lead to extra effort, duplicated tasks, and delays in completing those tasks.
Poor Customer Service
You might also see a notable decrease in customer satisfaction if you aren't using good processes that are up to date with modern property management needs and trends. You want to keep your customers happy, or they'll be far more likely to work with a competitor in the future.
Poor processes often lead to a substandard level of maintenance and repair, along with a slower tenant issue response time. That causes problems for property owners who don't feel you're taking good care of their properties. Bad or poorly-executed processes also create issues for tenants who want problems with their living space fixed as quickly as possible.
Lost Income
When you're focused on how to grow a property management business, you might find that you're not making the money you'd hoped to. Having the right methods for your management business can reduce the chances of financial loss and give you a stronger business you can continue to develop.
When you aren't using outdated processes, you could end up with inaccuracies in your forecasting and budgeting, along with mismanaged revenue and expenses. That leads to an unstable company that doesn't have the strong financial footing it really needs for success.
Legal Trouble
Outdated processes cause more than just problems with customer satisfaction and company income. Both of those areas are very important, but poor management processes also lead to increased risk of legal issues through failing to find and mitigate risks.
You could find yourself and your property management company at the heart of a legal dispute that could have been avoided with strong processes for locating and solving problems quickly. Of course, good processes won't always save you from being sued, but they can help protect you during a lawsuit as you make your case.
Experience More Success With a Property Management Consultant
Working with a property management consultant is a great way to focus on a higher level of success for your business! Real-Time Consulting Services helps property managers review and optimize processes that could be holding them back from more success. If you're struggling with outdated or poorly-executed processes, or you have unhappy clients and lost revenue, but you're not sure why, reach out to learn how we can help.
We've pulled together some of our best insights from years of working with property managers. Download your free copy of our in-depth white paper, "Property Management Business Insights."
We will review your business plan and make sure you are on track.