Property management takes a lot of work, from handling tenant issues to maintaining facilities. There are a lot of different responsibilities you need to juggle, and maintaining that balance is critical. But, when executed properly, property management helps you meet your financial goals more quickly. It is the make-or-break factor that determines your success in the real estate industry.
We have come up with seven tips that can help you improve your property management strategies and stay at the front of the industry pack.
1. Find quality tenants
Placing tenants into your property may seem like a straightforward proposition, but a little extra time spent finding the perfect candidates can save you a lot of time and money later on.
To find quality tenants, simplify the first step in your inspection process. Create surveys, add them to your listings, and reject applicants who don't meet your minimum requirements. This will be easier if you post your list of minimum criteria that prospects will see in your high-performance multi-family marketing funnel.
Use CRM software to help you identify qualified prospects more efficiently. With this system, you can also distribute prospects to your salespersons, automatically plan and schedule your follow-ups, log phone calls and email interactions, and more.
It is undeniably cheaper to retain good quality tenants over the long term than to spend time and money re-advertising your property and cleaning up after. With this in mind, finding quality tenants should be a priority for any successful landlord.
2. Make sure each party understands the lease agreement
It is crucial for each party to have a clear understanding of their role in the agreement. For peace of mind, have a professional draft your rental contract. A trusted professional will know the ins and outs of what is acceptable and appropriate to ensure you don't get caught up in future conflicts with your tenants.
Pay particular attention to clauses outlining your rights and responsibilities. Having a complete understanding of how late payments are managed, how inspections work, or eviction schedules can empower you to act against less-than-desirable residents when necessary while remaining confident that the law is on your side.
3. Use the right property management tool
It is undeniable that technology has a vital role in the success of the real estate business. If you want to stay on top, you cannot keep relying on old-fashioned tools, such as pen and paper. Instead, use the right software to streamline processes, such as ERP.
Advanced ERP software should enable you to access your property details in real-time, monitor your facilities, see outstanding tenancy payments, and even keep track of staff performance. With this system in place, anyone can get any information from a centralized source, making it faster and easier for them to take any action.
4. Be communicative and available
Maintain open lines of communication with your residents. It is essential to see your residents as people with life and family, not just tenants.
Connect with your staff as you deal with tenant issues. Notify your residents of upcoming maintenance checks and answer their inquiries. Train your team to be aware of the needs of the tenants. Remember, every time you resolve a resident's issue is an opportunity to demonstrate your commitment to providing them with the best living experience a tenant can buy, as well as increasing the chances of that resident renewing their lease.
5. Address maintenance issues promptly
You should always try to resolve any maintenance issues at the rental property as soon as possible. This will ensure tenants that you care about the home they live in and their personal satisfaction and well-being.
If a problem cannot be addressed immediately, communicate the information and, if possible, provide an alternative solution in the meantime. If tenants believe that their landlord is doing their best to solve the problem, they are more likely to be satisfied with their home and the people who manage it.
6. Outsource tedious tasks
You can't do everything in your business. Sometimes you don't have time to tackle tedious tasks. When it comes to tasks that don't require detailed training and complex decision-making, outsourcing them can save you time and money. For example, you can hire an accounting firm when you're drowning in financial paperwork or outsource a company secretary to care for your property compliance matters.
7. Follow property management trends
The property management industry operates in an aggressive and continuously changing environment. For property management businesses to thrive, property managers need to stay updated with the upcoming industry trends.
Some key trends we expect to see soon for property management companies are:
-The rise of PropTech (e.g., property management software, ERP software, AI, smart homes, etc.)
-Gen Z enters the housing market
-Higher demand for rentals
-Online marketing (social media, mobile-friendly websites, email marketing, etc.)
Remembering and using these tips is the first step in creating a solid foundation to strengthen your property business. Learn the basics right, surround yourself with a qualified team of management and maintenance professionals, understand the law and be fully aware of your rights and that of your tenants, use the right software. You will enjoy a comfortable life free from the stress that comes with poorly managed properties.