To successfully scale your property management business, a few components need to be in place. Today, we’re sharing five of those components, and explaining why they’re so important to your growth.
1. Aligning Behind a Reason
The first essential component is having a reason to scale. Why do you want to grow?
Make sure you are mentally prepared to go there, and even more importantly – make sure your team is ready to go there. If your team isn’t aligned with your vision and your purpose, your company won’t scale.
Have the right people around you. When you’re ready to scale, surround yourself with people you trust. You’re going to need to allow them to do the work while you focus on the bigger picture. Having a common strategy and vision for your company’s direction will bring better results.
2. Take a Look at Money Matters
It’s important to look at what your company is currently spending and what’s coming in.
In Australia, we have some marketplaces where there has been a downturn in revenue. There just aren’t the same number of properties in the marketplace. Homes are on the market for longer and the income is decreasing. So, get smart about how your money is being spent.
- Implement some efficiencies that help you survive with reduced revenue.
- Put your dollars in the right place.
- Invest in crucial systems.
- Know your annual contract value
- Break down your cost per property.
- Don’t take on anything that’s going to cost you money.
3. Retain Your Current Business
Growth doesn’t just mean new business. It also means retention.
You cannot grow if you cannot retain your current business.
When you’re working to retain your current business while bringing in new business, make sure you have these things in place:
- Have staff in place to provide excellent customer experiences.
- Have consistency in your services and your structure.
- Automate what you can with technology. This means less human error.
Watch your door, because the new business that comes in that door is often replacing the current business that’s leaving. Properties get sold and owners move onto other things. Be prepared to keep all the clients you can, and be ready to replace those who leave.
4. Be More Than an Operator
Prepare to give up some of the routine and mundane tasks that you don’t need to do. Today, your investors and your owners and even your tenants are looking to you for more. You need to be a resource and a strategist. It’s about more than just collecting rent and fixing what’s broken. Help your customers see the value of the return on their investment. Be more and you’ll earn more.
Ask for new business. Most property managers shy away from this. If you want growth, you have to actively search for your next customer.
5. Consistency and Technology Are Your Friends
Everyone on the team needs to sing the same song. Whether you’re a company of two people or 50 people, everyone has to be consistent in the services they deliver and the way they deliver those services. Technology can help. Good training can help. Consistency is imperative.
Make sure everything is aligned.
Certainly, there are more than five components needed to effectively scale your business.
This is a start.
If you have any questions about managing your property management growth or scaling your company, contact us at Fourandhalf.
