You’ve worked hard to get your property management business to where it is today, but what happens once you’ve reached a plateau? Is it time to start focusing on growth, and if so, what’s the best way to approach that goal?
There are several ways to scale your business, whether it’s capturing more market share, acquiring additional properties or improving operational efficiency.
If you’re at a crossroads and you’re unsure which direction to go in, here’s how you can achieve the breakthroughs you’re after in 2019 and beyond.
Risks and Rewards
As with any significant business move, there are certain risks involved with rapid and/or disruptive growth, including staff turnover, workload imbalances and cash flow issues. These issues typically stem from one or more of the following common mistakes:
- Not charging enough for your property management services
- Insufficient staff to manage a larger or specialized portfolio
- Chaotic and/or inefficient business processes
To properly scale, you must set appropriate price points, hire the right staff and leverage technology to streamline your operations. Do so and your business will flourish.
3 Ways to Break Through
Automate as much as possible.
Unless you have an unlimited number of employees and a bottomless budget, rapid growth without adequate technology to support it will cripple your business. Start by automating any and all repeatable processes (accounting, rent payments, maintenance tickets, reporting, etc.). This will enable you to do more with less and free your staff to focus on more mission-critical business initiatives. The easiest way to do this is by investing in property management software.
Be realistic about your pricing.
If your prices are currently based on a contract basis, you may have already found that you’re losing money on things like extra documentation and additional, unexpected service calls. As you pursue growth, it may be time to transition to more of a hybrid solution. For instance, you might price based on a percentage of rent and include add-on charges for service calls and additional hours worked. Don’t be afraid to be flexible and creative. Examine your reports and experiment until you find what works.
Hire good people.
A solid staff of qualified property management professionals can be an invaluable asset to your business. And once you’ve automated most of their manual, routine and repetitive day-to-day tasks, you’ll really be able to utilize their skills and abilities to your advantage. But you can’t do this unless and until you hire the right people. In fact, without a good team, your growth plans will stagnate. If you could use a little help in this area, here are a few tips for landing ‘A Players’ for your company.
When it comes to scaling up, there are certain key components of success. By leveraging technology, setting a profitable pricing model and staffing your property management company with the right people, you can easily make 2019 the year that your business finally breaks through.