When you started your property management business, you probably set specific fees and decided on a particular set of services. Now that you've been in business for a while, how much have those fees gone up? Are you charging the same, and do you offer the same services, or have things changed?
If you haven't made adjustments in a while, it's likely time to review your property management services description and fees. That includes updating the kinds of services you offer and the prices you're charging for them. It's a crucial step toward growing your business and reaching your goals.
Covering your costs is vital, but you also want your property management company to generate revenue. Chances are, your operational costs have probably risen over time. It's normal to absorb some of that, but when costs rise enough to impact the health of your business, your services and fees need to change.
Here's what to know.
Why You Should Be Reviewing Your Fees and Services
How long ago did you write your property management services description? If it wasn't recently updated, it might be time to make some changes. Here's why it's important!
Communicate Up-To-Date Services
You may have removed some services you started with or, more commonly, added additional services that aren't listed in your current description. Your clients need to know what you can do for them.
It's also crucial to keep your service descriptions and offerings updated with current trends. If you're not keeping up with market trends, you may be passed over by clients looking for better services. In addition, anyone who hires you to manage their properties wants to ensure you're as up-to-date as possible, so you can keep their properties rented out and properly maintained for optimal returns.
Market demands and competition are other reasons to review fees and services. Successful property management companies must offer as much or more than their competitors and make sure they're providing what the market is asking for. If you're falling behind, competitors will take advantage of that, and you could end up losing out and hurting the future of your company.
The quality of your property management operations matters to your clients. If you haven't made changes in a long time, you might not provide everything today's property owners seek. Or if you are, the information you provide about your services and fees might not reflect that.
Maintain Financial Stability
Another reason to review and update services and fees is to maintain financial stability.
Financial stability means focusing on two specific areas of your company: improving your cost management and increasing your revenue. When you're up-to-date with the market and your competitors, and your services and fees reflect that, you can improve both of these areas more easily.
What's the Best Way to Review Fees and Services?
Understanding that you need to review services and fees is only the first step. The next step is to focus on the best way to do that.
Conducting market research can help you get started. Doing this will show you what other companies are offering, at what rates, and what property owners are asking for their management services. This is one of the best ways to bring your property management operations up to current expectations.
When you identify market trends, you get a better idea of the current services offered by your competition and what kinds of future services may be offered, as well. Not only does that help you see what they're providing, but it also shows you what property owners will likely be looking for, so you can be sure to meet their needs, both now and as those needs evolve.
Analyze Your Processes
Additionally, the processes in your industry will change over time. If you haven't analyzed them recently, doing that can help you see where you might be missing something important to your clients. For example, if your property management maintenance practices are out of date, looking into how other successful property managers handle these services can help you fine-tune what you offer.
If you want more property owners and happier tenants, you need to meet or exceed what's expected for your industry in your area.
An evaluation of what you currently offer, compared with what your competitors are providing and what the market is asking for, can help you accurately assess if your fees and services still make sense or if change is needed. Then you can look at the true costs of the services you're providing to see if you need to make adjustments in your fees, quality, or variety of offerings.
Commit to Best Practices (and Changes)
As you evaluate existing services and fees, be aware of challenges and resistance to change.
It's important to address the challenges your company is facing and the best practices you should adopt. If you're missing the mark where industry best practices are concerned, finding out how to meet those practices is the goal.
That could be a big challenge for your company for a variety of reasons. Among the most significant areas to get past is resistance to change. Property owners and tenants are both used to certain ways of doing things and may not be comfortable with adjustments. Your team might be set in their ways, as well.
However, with some good communication and a few incentives, you can make essential changes that will benefit everyone in the long run.
At the end of the day, property management businesses must balance the quality they provide with the affordability owners are looking for. Therefore, your property management services description should reflect not only what you offer but why it matters and why it's valuable.
When people understand what they're getting for the cost, they're more likely to choose your company for their needs.
A Consultant Can Review Your Property Management Operations and Fees
If you've decided that it's time to take a careful look at your services and fees, having some help can really make a difference. A property management coach can get you started on the right path. Outside, experienced insights can help you feel confident that your fees and services reflect the experience you offer and the goals you've set for your property management company.
Reach out to Real-Time Consulting Services for help optimizing your operations and fees!
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