If the appropriate procedures are developed, property management may be a challenging profession that ultimately results in financial and spiritual fulfilment for the manager. If you get a head start on some of the most difficult problems that might arise in property management, you’ll be able to look back and be grateful to yourself for a long time.
Ineffective management of one’s time is the obstacle that property managers confront the most frequently. A day in the life of a property manager may be consumed with tasks such as responding to maintenance requests, interacting with tenants, and carrying out inspections, leaving little room for the twenty other responsibilities that must be fulfilled.
In order to remedy this situation, property managers frequently compile exhaustive “to-do” lists and strive to accomplish as much work as possible in a given 24 hour period. But what if there were a more effective approach? Instead of attempting to clean up as many messes as you can, you should focus on putting the correct systems in place so that such messes don’t occur in the first place.
Property managers are now able to devote their attention to the areas that are most important to them, such as expanding their businesses, because time-consuming activities can now be automated using software.
Taking the Business to New Heights
One of the primary concerns that property managers have throughout the year is expanding their operations and bringing in more money. However, a large number of managers lack the skills necessary to develop their companies in a sustainable manner. What is barely functional when you have 250 units will not, by some miracle, become fully functional when you have 500 units.
Before any scaling can take place, it is necessary to design processes that will address the three workflows involved in property management (unless you want to scale to a 100-hour work week as well).
Set up a plan for finding tenants for your rental properties and keep track of where you get stuck and where you spend the most time. Is it in the process of finding the right renter, making leases that are legally binding, or inspecting the place before the renter moves in?
After a renter has moved in, what steps should be taken to ensure that they have an amazing experience? Does the way you handle maintenance requests let you take care of them quickly and keep the tenant in the loop? How long does it take you at the beginning of each month to collect the rent money for all of your properties in preparation for the following month?
How soon are you able to complete a move-out inspection and then compare the results to the information from the move-in inspection? How fast are you able to get the device back in service after an inspection? Is it a hassle to communicate with the cleaning crews and the operators, to the point where it takes three days of back and forth to find a day that works for everyone?
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Bringing Down the Costs of Operations While Keeping Unanticipated Costs Under Control
Property managers who are more aware of costs often say that one of their main goals is to lower operating costs. The first thing you need to do in order to cut costs is to figure out where your money is presently being spent.
Create a list of your current cash flow, noting the total amount of money coming in on the left and the amount of money going out on the right. We’ve already touched on how strengthening your procedures helps you develop your business and improve the amount of money flowing in, but what are the biggest financial outflows your company experiences?
The Pareto Principle is a common way to figure out which of your company’s processes are hurting it the most.
The Pareto principle says that “80% of results come from 20% of causes.” For property managers, this means that “80% of your costs come from 20% of your procedures.
Maintaining Respectable Tenants in Your Premises
Tenant retention is very important if you want to keep doing well as a property manager. Of course, this is only true if you get the same reward for keeping a renter as you do for finding a new one. It is expected that the cost of finding a new tenant will be two to three times the monthly rent. This is on top of the costs of renting, managing, and advertising the property.
Handling Mental Health
The Saskatchewan Landlord Association has prepared a list of resources for property managers as well as a few measures that property managers may take to manage their mental health and has advised the following strategies to manage your mental health:
- Find a link between the two. Get together with someone and have a conversation in person.
- Engage in an activity of some kind. Take a stroll, whether it’s outside or just around the perimeter of your workplace.
- Find an activity that you take pleasure in doing and make time for it. This evening, you may decide to work out, take a bath, read a book, listen to music or a podcast, or listen to a podcast as you work out. Engage in an activity that will take your mind off the difficulties of the day.