Sun Jul 31 2022
3 Keys to Grow Your Property Management Business
The property management business is competitive, but not just on the level of who can get the most deals. It is also competitive between companies and even within companies themselves.
There are many marketing methods out there that you can use to increase your profit margin and market yourself as a company to others. This article will help break down some of the different types of marketing in the property management business and what their key characteristics are so you can know if they are right for your company.
Finding a reputable property management company can be challenging. The properties you own often come with an array of unique needs and requirements that the manager must meet.
An inexperienced property manager may cause your financial interests to suffer, as they are likely not fully aware of all the implications of letting out your property.
Moreover, inexperienced managers may unknowingly make mistakes in carrying out their responsibilities for managing the day-to-day upkeep of your rental property, which could lead to costly repairs or even worse circumstances.
As the property management industry evolves, so do the companies that operate in it. The ability to operate successfully within these changes in the marketplace can be challenging for any new property manager.
This article will outline why a property management company is essential to successful vacation or rental property owners. We will also explain what a property management company does, how it operates, and its role in managing your rental or vacation rental property.
What is a Property Manager?
A property manager manages several aspects of your rental- and vacation property. The manager will tend to the financial and legal aspects, which include the following:
Collecting rental fees and applicable taxes
Conduct tenant screening reviews to ensure your staff and guests are up-to-date on their rental agreements. This can include credit reports, criminal history checks, and interviews with previous tenants to determine their suitability for the property.
Ensuring the property complies with all applicable building and safety codes.
Finding qualified contractors to maintain the HVAC systems, repair leaks, and fix broken items such as appliances, toilets, or showers.
Handling tenant lease renewals and maintenance requests
A property manager’s job doesn’t end with tenant screening and collecting rental fees. They’re also in charge of tenant lease renewals. These occur when the tenant decides to continue living in the rental property after the original lease has expired. When a tenant expresses an interest in renewing their contracts, the property manager will draft new agreements containing new rules and regulations, and terms that are agreed upon by them and the tenant.
Lastly, a property manager is also responsible for all maintenance requests. They ensure that all complaints, concerns, and maintenance orders are handled properly. They usually do this by having an in-house maintenance team inspect the premises for the upkeep of the property and address some maintenance issues.
However, managing tenant screening, lease renewals, and maintenance requests can be challenging for property managers. This is especially true if the primary purpose of the property management company is to handle homeowner’s associations which are organized to improve the quality of life of the residents in the community.
In that case, investing in home owners association software can be a good idea. They can help managers stay on top of regulations and deadlines for the residents’ leases and their maintenance concerns. As a result, they’ll have all the information they need to run their communities more efficiently. With these things being said, property managers do have several duties and responsibilities to consider when managing properties.
Before going into business as a property manager, some important considerations and decisions need to be made. This article will cover the three key areas that should be top of mind when seeking your next property management position: location convenience, job security, and profitability.
A strong portfolio of successfully managed properties
Managed properties are a type of real estate investment that is often seen as more affordable and less risky, with the potential for higher returns. The likelihood of developing and then managing real estate does have some drawbacks, though.
First off, it requires experience in the field of construction and property management in general. One must understand the needs and requirements for building maintenance, finance goals vs. income maximization, financing incentives, cash flow analysis capabilities, and much more to effectively manage and develop a property.
Acquiring a property, adding value, and then selling it for a profit is not easy. One must have the knowledge and skills necessary to see the project through and run it while meeting all of the established goals and addressing any risks that could potentially threaten success.
Records and reports, in general, focus on the industry on a larger scale and try to make sense of overall trends. The numbers can help you understand the market trends and how a property could fit into a larger commercial real estate portfolio.
Direct Mail Marketing
Many businesses today are going digital. But this does not mean that traditional marketing methods have lost their relevance. In most cases, direct mail is still the number one choice for campaign success rates.
If you are trying to reach a targeted list of real estate investors and want to increase your conversion rates, think about sending postcards through direct mail next time.
Direct mail is a tried-and-true marketing method, and it does not get more targeted than this. In most cases, real estate investors are really looking for listings that target their zip code or market. They will only consider reading local classified advertising or taking a flyer from their neighborhood Newsstand.
And let's not forget that there are different types of real estate investors. Each investor has their interests and preferences, so the postcards you send will have to be different for each one. The best way to get quality leads and a great response rate is with property management postcards.
Obtain 5-star Client Reviews and Post on Social Media
Achieving the best customer reviews is no easy task. Consumers are constantly inundated with advertising, information, and social media posts. Thus, creating a lasting impression in their minds.
However, if you have a high turnover rate and have ever had complaints about your business practices or dealings with customers, then it is time that you start implementing new strategies for obtaining positive reviews from happy clients to post on social media.
To be successful in obtaining 5-star client reviews, you need to:
Be Proactive & Develop Relationships
An effective way to build relationships with your customers is through face-to-face contact. Take the opportunity when you meet a new or potential client and create a lasting impression. If you plan to build a relationship with them, then this is the best time to strike. This can be done by giving them your business card and informing them how their feedback will help improve your business.
Create a Personalized Experience
Every client visiting your business has different needs, so you must ensure that every person gets the best experience possible. Ask them questions and listen to their needs. This way, you can cater your services or products to them, which will help them receive a personalized experience. The best way to do this is by implementing a customer relationship management system.
Be Responsive & Responsible
No one wants to have an experience that leaves them with more questions than before they visited your business. Ensure you are timely with your responses and responsible with the services and products provided. This way, they will be satisfied with their experience, and you will have the opportunity to build a great relationship with them.
Communicate & Create an Experience
Always remember that your clients are individuals with different needs, so communicate accordingly. You can do this by asking questions about their daily lives and what they want from the business so that you can cater your services or products to their needs. You can also create an experience through the type of marketing or promotional methods you use.
Learn from Your Mistakes & Provide Feedback
No matter how small they are, mistakes will always happen when trying to obtain 5-star reviews. One way to learn from these mistakes is by providing feedback on your client's experience. Always remember their name and what they did wrong so that you can provide better services in the future and prevent similar situations from happening again.
Conclusion
Property management is a profession that focuses on real estate and its buildings. The professional goal is to ensure that the properties are rented, maintained, and have the opportunity for capital growth.