How to Structure for More Property Management Success in 2023
Growing rapidly can be an excellent thing for property management success, but it also comes with its own set of problems. If you're not prepared for the growth you're experiencing, you might find that handling the new workload is a struggle.
Naturally, that could lead to difficulties like upset tenants, annoyed property owners, and stressed-out employees. That's not a good environment for anyone. It could even mean a loss of clients, especially if they don't feel like their properties are getting the attention they deserve or need.
If you're not setting up your property management company and its structure to be scalable, you're not only missing opportunities but potentially putting your company at risk. Here's what to consider so that you can be ready for your company's future growth.
Scalability is Vital for Your Property Management Company
When looking for property management tips, you might be thinking about how to get maintenance done faster or the best ways to screen tenants. Of course, those things are important, but the overarching scalability of what you're doing will be the biggest area of importance for your company.
To make sure you're ready for future growth and development, it's crucial to identify the areas of your current business that aren't scalable. Right now, those areas might not be a big deal—but what about later, when you have 50 doors or even 100 or more?
Making adjustments now is a great way to be ready for the future. If you wait until you need the space and time, and talent, you'll be behind before you ever get started. A lack of preparedness could damage your business and reputation, leading to long-term issues for your property management company.
You don't have to settle for that future or even the risk of it. Instead, get ready for your growth before it ever starts. Then, when you start growing your company in the near future, you'll have everything you need.
Make Wise Choices About Your Offerings
Property management success comes from making wise decisions. If you discover areas of your business that won't scale well, you can change them now instead of worrying about them later. For example, consider any free services you're offering.
Those free inspections that people love could burden your company's time if you suddenly have many more doors to manage. Inspections aren't bad when there are ten properties; however, they're much more stressful when managing 100 properties.
Most clients aren't going to avoid your company if you're not offering free services, so ending those kinds of things before they become a burden will help them fade from memory. That way, new clients won't expect them, and you can reclaim your time for other activities.
Processes Should be Easy and Streamlined
If you don't have streamlined processes, those processes aren't going to scale up for more property management success. You might have to change the entire process, improve your technology, or both to create better options.
Consider the budget for that and how you will make it happen. When there are more doors to manage, the team you have right now might not be big enough to process them all. You might need more people.
Handling the vast majority of things by yourself definitely isn't scaleable, and property managers must be ready to bring in more help as a company grows. Whether that's hiring more employees or working with contractors like virtual assistants, the time to know where you'll find these people is before you need them.
One of the most important property management tips is to remember that when you prepare for growth, that preparation has to happen before you add to your portfolio. Most tasks should generate revenue, and that revenue is then used to pay the people who are doing the tasks. That's a way to foster growth and development.
Your Fee Structure May Need to Change
Successful property managers know that changing the fee structure may be necessary when you get ready to scale up and grow. By reviewing where you are now and getting a good idea of where you want to be in the future, you can revise your structure in a way that works for your company.
Keeping your fees competitive is possible as you grow. As long as you're realistic with your fees, you can make as-needed adjustments to continue to facilitate that growth. Just make sure you're reviewing any changes you make, so they're made with intention and a goal in mind.
Property Management Success is Easier With Support for Growth
Understanding what makes a successful property manager is one of the best ways to evaluate where you are, then make a plan for growth! Success is the goal, and being able to scale up your business as needed can help make that goal a reality. If you're not sure how to structure your team to scale your business, reach out to Real-Time Consulting services for guidance!
Ready to learn more about the potential of your property management business? Try our Free Profit Calculator!