Forbes recently said that the property management industry was worth $73 billion in 2017.
That’s an enormous number, but some property managers are having problems growing. They’re stagnant year after year.
At Fourandhalf, we’re all about growth. So, we got together and came up with 5 reasons you may not be increasing the number of doors under management.
Underspending on Marketing
All growth starts with a fantastic business. If you have that business, are you spending enough to promote it? It’s irritating when an average company that’s not as good as yours is doing better just because they know how to get the word out.
Recently, we blogged about customer acquisition costs. Do you know your company’s CAC? You should know how many units you want to grow by. You should know how much it costs you to earn a new customer. Put those numbers together, do a little math, and spend the amount you need to bring in the right number of doors.
Refusing to Delegate Tasks
Are you trying to do everything yourself? Successful leaders of growing businesses know how to delegate tasks. If you are doing the same things at 150 units that you did at 30 units, it’s going to be hard to grow any further.
Don’t be stuck in the trenches managing properties when you should be handling things like growth and planning. You can outsource tasks or hire a business development manager to handle leads while you work on other facets of your business. Also, re-evaluate everyone’s role, and make sure your team members like what they do every day, including yourself. Employee turnover will kill your efficiency and profitability.
You’ll grow faster if you stay up to date with technology. Think about your owner presentation and how it compares to other companies’ presentations. If you’re not able to advertise that you have the newest features like online bill payments and vacancy marketing tools, you’re going to lose business to your competition.
Demonstrate that you’re sophisticated when it comes to technology. If something that you do every day isn’t automated, find out if there’s a solution that can help you. Then, build that into your budget so you can continue to improve and not stay stagnant.
Competing on Cost
If you’re acquiring new business by offering too low a price, it’s dangerous for your retention and your profitability. Competing on cost is going to fail you when some other company comes along with lower rates and you lose all that business you attracted with low fees. That won’t deliver, and it will be expensive if your CAC is high.
Focus on profitability, not revenue. Many of our clients have this worked out beautifully. Everyone who handles the account understands what makes a good property for the company. It’s location, condition, the amount it will rent for, and the type of owner you’re working with. If your staff is tied up with calls from just a couple of owners, it’s going to be hard to be productive for all your owners. Focus on the growth that will contribute to your profits over the long term.
Losing Your Customer Focus
Finally, if your customers are no longer the focus of your company, you won’t grow. It’s hard to deliver when tenants are calling to complain and owners have feedback about how you handled a certain situation.
It’s essential that your employees are enthusiastic, responsive, and helpful. If the first person who answers the phone can help the caller or at least explain when the issue will be resolved, you’re going to provide good customer service, and your business will grow. Growth depends on perception, and you want to be perceived as a service-oriented company.
If you’d like to see more growth and you’re ready to get started, contact us at Fourandhalf.