The property management industry has become increasingly remunerative in the past few years. Research suggests that the property management industry was valued at around $14 Billion in U.A.E alone, in the year 2020 and is expected to demonstrate a CAGR of 10.8% in the coming years. But real estate is not easy money, and owning a property and operating a successful property management business is a whole new ballgame.
To run a property management firm like no other takes commitment, business acumen and the right tools in place.
Here are 5 best practices from thriving property management companies that you should definitely have:
Leveraging Technology: The right software choice is critical to the success of a property management firm. A property manager is responsible for drafting lease agreements, handling maintenance and repairs, screening tenants, maintaining finances and in addition to this they are part of running a company which requires finding leads.
With all this on someone’s plate, it is easy to get overwhelmed and the best thing for a firm to do is lower its labor costs by minimizing manual entries by leveraging the power of a digital software that can help the firm avoid errors and always stay in compliance with documentation and stream reporting.
Knowing the Rental Market: It is crucial to the success of a property management firm to have an extensive knowledge about the rental market. Understanding the amenities that will attract the right client, market dynamics of the local area, laws and regulations that govern rentals in their cities is paramount.
Standard Operating Procedures: When it comes to property management, communication is key. A property management firm can have hundreds of tenants residing across different cities/countries. There are too many moving parts and so having infallible operations procedures that have been created through years of experience is of utmost importance.
The operating procedures can include a full audit of vendors, contractors, maintenance programs, crystal clear budget and financial system and tenant screening checklists. A good property management firm is available to its tenants and clients 24*7 and have a solid system in place for internal communications.
Dependability: A property management firm is often hired by property owners because they often want to expand their business and they need a firm that is reliable and trustworthy. A property management company should be consistent and knowledgeable about everything going on in the market.
Property maintenance tasks, inspections, collecting rent payments, reviewing tenancy applications and also being available to tenants and resolving all their queries can get very burdening for property owners. Thus, it is imperative that a property management firm is dependable and proficient in their work so that the owners can be rest assured that their property is in good hands.
Trained with a Focus of Continual Education: To be a high performing property management firm and to stay on top of the game, the company must push all its employees and leaders to learn more and more about the industry, new market and investment trends.
The leaders of top-level property management firms understand every aspect of their market. Every property manager should keep themselves updated with the latest regulations and trends. They can do this by reading blogs on different property management websites and various industry journals from the real estate market they work in and from across the world. Being able to cite the latest regulations and trends to a tenant or a client in an important quality to have as it can save landlords from expensive penalties.
You can build your business around these 5 time-tested qualities and set out on the path to become a successful property management firm with a cloud-based real estate management platform like RealCube.
RealCube helps you use technology to your advantage with its comprehensive industry-leading modules like
> Facilities Management
> Property Management
> Finance Management and
> Community Management modules.
A software like RealCube enables key stakeholders in the real estate domain to make suitable, customizable and completely functional solutions to all their problems.