According to a recent survey, one of the biggest challenges property management professionals face on an ongoing basis is keeping operating costs at a minimum. Obviously, the less you spend to run your business, the more profitable it will be, but knowing that and actually accomplishing it are two entirely different things. Thankfully, we’ve been at this for quite some time and have picked up a few expert tips and tricks along the way. Let’s take a look at a few areas where you can start cutting costs and run a leaner operation moving forward.
The most obvious way to reduce payroll expenses is to keep staffing numbers to a minimum, and using tools like property management software can help with this by allowing you to do more with less. Beyond this, here are a few additional ways you can save money in the area of personnel:
- Consider outsourcing some tasks to independent contractors or service providers
- Cross-train employees so your teams will be more effective
- Improve productivity and efficiency levels so employees can make the most out of their time
- Focus on employee satisfaction and engagement to reduce turnover
What can you do within your property management office to reduce expenditure? We’ve already shared several ideas for lowering overhead, including making the transition to a paperless environment and taking the initiative to reduce energy costs. Additionally, we recommend conducting audits, either every six months or annually, to find new areas where you could be saving money.
There are a ton of different things you can do within the properties you manage that can help bring expenses down. If you aren’t doing so already, here are a few cost-cutting maintenance strategies to implement:
- Use timers and energy-efficient equipment and lighting in any area where you are responsible for paying the utilities
- Create a list of trusted maintenance and repair professionals whom you can rely on to step in as needed
- Invest in ongoing preventative maintenance (it’s always cheaper to prevent problems before they occur than it is to fix them after the fact)
- Utilize property maintenance software to automate routine tasks, ensuring that nothing slips through the cracks
- Perform regular audits to identify and eliminate any unused services (no sense in paying for services you’re not taking full advantage of)
- Contact service providers to negotiate the best rates and evaluate your options on a regular basis
Finally, there are many tax advantages afforded to businesses that many property management organizations fail to recognize. For best results, consult with an experienced tax advisor who can conduct an in-depth evaluation of your company to identify areas where you could be saving money on your taxes. Remember, when it comes to cutting operating expenses, every penny counts.