Profitability in Methods
Running a property management business over the last decade has seen an escalation in overheads with the advancements of technology and layering apps, making profitability harder to achieve.
And while it can be done on a budget at the beginning, agency owners will soon discover that as the team grows, it’s essential to run the right systems for efficiency and service.
When I started my career, printing costs were the biggest overhead after office rent.
Fast forward to 20 years later, and we’ve all got subscriptions to:
- Trust programs
- CRM programs
- Inspection programs
- Maintenance programs
- Advertising platforms
- Time management programs
- Letter systems
- Electronic signing systems
- Mobile phone accounts
- Internet accounts
- Website developments
And much more!
SPEND SMARTER, NOT MORE!
It feels like new tech start-ups are popping up everywhere, promoting yet another program or system that assures us of being the market leader that will enhance our businesses to the next level for a big juicy cost. Before deciding whether to implement a new system, app or procedure, there’s a few things to consider, including:
- User subscriptions – does everyone in the office need one, or would one login suffice?
- Ease of use – can everyone in the office comfortably use the program? If not, can you implement some training?
- Is it cost effective, or is there a similar platform that can do the same thing but for cheaper?
- How often is your team using some of your current subscriptions? Could you cancel one/some in favour of something else that all of your team can benefit from?
Everyone that knows me personally would attest that I am pro-digitisation, but to effectively digitise your business, you need to reassess your current subscriptions before adding more to your list. In the past, I’ve found property managers don’t actually use the programs they already have to their fullest potential.
FEES AND PROFITABILITY
So how do you make a profit? It was once a very simple strategy – and it still can be, if you reduce your overheads and regularly check-in with your expenditure.
Look at ways you can save time, which ultimately, saves you money. For example, the average time a General tenancy agreement is returned using One Touch™ is just over 24 hours, meaning your staff can spend more time on profitable parts of the business.
We seem to be in such a rush to grow our businesses that we don’t stop to think about the costs we are creating in doing so or to evaluate the rate of return. We really need to know our businesses and systems far better before trying to grow and expand – you may be surprised at just how much money you can save your business. If you want a profitable business, you’ll need to understand and appreciate the business you are in, learn the tools we incorporate into the business and make sure the tools you invest are the right fit for you and your team.
Want to learn more about growing your business? Register for this month’s Property Management Masterclass, which covers cover how to turbo charge your rent roll, top tips for selecting tenants and risk management tools. Register here.