If you’re one of that property management business trying to expand into new areas, you might be unsure where to begin. It’s one thing to add properties to areas you currently service, but it’s quite another to expand from one to two or more. You may find yourself managing properties in places outside of your company’s comfort zone, where the target market — and even rules — are different if you don’t have a growth strategy in place. You must ensure that you have the correct personnel and infrastructure in the area to support your properties.
If you want to expand into a new city, region, or state, make sure you prepare ahead. If you’ve already begun organic expansion, it’s not too late to devise a strategy for keeping your company’s growth at a manageable pace.
Tips For Growing Your Property Management Business
Research Your Target Areas
Now is the time to conduct market research if you wish to grow into new areas. First, consider the prospects available and the areas where the market is strong. Decide where you’d want to look for new owners with houses or properties to manage. Then consider how their management requirements differ (if at all) from those of the properties you now operate.
Don’t assume you’ll be able to use your current rental, marketing, and maintenance practices. New territories will have their own set of regulations, populations, and even cultures. You may wish to engage a lawyer or accountant (or both) that lives in the area where your property is located and is familiar with local rules and ordinances.
Boost Your Visibility
Property management, like any other business, relies heavily on marketing. Below are just a few of the things you can do:
- Adding your listings to more websites,
- Updating your Facebook page, optimising your website,
- Starting a blog,
- Starting a YouTube channel,
- Updating your company sign on your buildings,
- Writing articles for the local press,
- Sponsoring a local event,
- And offering a tenant referral programme
These activities will raise your visibility and put you in front of more building owners and potential renters.
Increase Employee Productivity
Employees are one of a company’s highest costs. Look for strategies to improve your team’s efficiency. What new training would increase their productivity and value to your business? Consider whether hiring a dedicated maintenance worker can help you save money on contractors and handyman services.
Find multi-skilled people who can take on activities that would generally need numerous personnel to save money and make your organisation function more efficiently.
Expenses Should Be Considered As Investments
When it comes to property maintenance, spending a bit more money on a superior repair for the first time will save money in the long term. When replacing appliances, opt for the better model. It will last longer, need less maintenance, and attract higher-quality tenants. Although it may be tempting to save money by cutting shortcuts, seeing expenses as investments will save you time, effort, and money in the long run.
Simplify Operations With Technology
If you have the correct tools to manage many locations, it will make your life and the lives of your staff a lot easier. Time-tracking software, project management tools, inventory management, and accounting applications are examples of cloud-based apps that can save you time and allow you to focus on one-on-one meetings and big-picture thinking.
Ensure that all employees understand how to use the technology that their jobs require by organising in-person training sessions or hosting online webinars. If you have a mobile workforce, make sure they have the tools to keep in touch and complete their tasks using mobile apps.
Establish A Budget
Adding properties will increase revenue for the business, but that revenue will not be available right away. Examine your operational margins and how much they will rise due to the addition of new properties. Your goal is to keep profits at or above current levels by maintaining or lowering operational margins.
So, how much will your budget have to grow to accommodate the new personnel, new software, or new equipment? Are there going to be any new company taxes to pay? Will the money from new properties help you maintain your profit margins? Any more money coming in is terrific, but not if the costs of new properties outweigh the advantages.
Use your sound communication system once you’ve established it! According to one research, businesses with many locations spend an average of 17 hours each week repeating and clarifying communications. Set up a group email conversation or an internal website and have staff check it regularly for news and changes to eliminate repetition.
Essentially, you’ll be providing a one-of-a-kind service to your customers. You’ll be able to find new investment properties for them fast and conveniently. You’ll have another rental property under your management after they buy! This is how it can assist you in expanding your property management business to multiple locations.