There is no one-size-fits-all when it comes to affordable property management companies or property management fees. Most of the time, the property management fees depend on the scope of work they are expected to perform. Will they be assisting with evaluation and rental cost determination? Or will they be assisting with the marketing costs and screening prospective residents? Will they primarily manage evictions and problem residents? Or all of the above?
These fees can also vary when it comes to the type of property. Vacation property management companies may charge on a different property management fee structure than the commercial property management fees. All of these factors come into play with the property management fee calculation and property management fee breakdown.
Regardless, when a property owner is paying property management fees, they want to be sure they are investing in valuable and affordable property management. And property managers can help by proving they can be effective and efficient with their spending.
Property managers already understand that today’s commercial and residential property management profit margins are razor thin. For these property management fees to remain worthwhile in the budget, the property management company must stay competitive by remaining affordable, controlling costs, and strengthening the budget where they can.
When it comes to being an affordable property management partner, here are four good ways property managers can keep their costs down and be efficient with their spending:
Effective Utilities Management
This may not come as much of a surprise, but effectively managing building utilities can make a huge difference in bottom line profitability and making property management affordable. Consider energy efficient appliances to save money long term and to endear the property to residents who appreciate the green efforts. Look into preventative maintenance programs to keep down time to a minimum as well. This can be especially true for vacation property management companies where time without renters is a huge profit loss. Saving money on utilities with just a few small changes can mean saving money an owner didn’t know he or she was missing, and suddenly that residential or commercial property management fee structure is paying for itself several times over.
One of the key components of a property management company is typically to market the property and screen prospective residents. This a great place to save money and make up ground on your property management fees. One way to achieve this is through use of available marketing technologies that are proving successful — like video. Video allows for inexpensive, but highly targeted marketing and can even allow prospective residents to get a feel for the property or even sign a lease without setting foot in it. The right video platform will also be a great investment and a way to prove an ongoing ROI with those videos by making follow up and engagement quick and easy.
Be Able to Manage Multiple Revenue Streams
Finding affordable property management companies that can do it all may seem challenging, but it is highly worthwhile – particularly if there is a chance to find multiple revenue streams. If there are empty apartments in a complex, maybe reserve them for short term vacation rentals or corporate housing. For property owners, finding a property management company that can manage those new, innovative ways to monetize at your community, could be the difference between paying a platform like Airbnb additional fees or seeing additional revenue passed through to them. If you can manage these multiple revenue streams effectively, suddenly your property management company is an invaluable, multi-faceted partner. And property management fees, whether commercial or residential, become much easier to digest by the owners.
Work to Constantly Minimize Team Turnover
To be an affordable property management company, the actual property management team needs to be nimble and dependable. For that to happen, they need to stick around and learn the property, the residents, and how to make the property management company itself invaluable. We recognize the incredibly high turnover rates at multifamily properties across the US and that is the one thing that can make all the difference in your success as being an affordable property management company. Hiring, and firing, can create unforeseen expenses that won’t help the bottom line and do nothing to encourage trust or foster a sense of team or community. However, a team with longevity and investment in the community will do just the opposite. That’s the type of thing no property management fee calculation can calculate for.
Finding ways to keep the costs down and make sure that your property management offering is affordable will be key for property managers to be successful moving forward. Competition is on the rise and margins are getting thin, so keep competitive and ensure your longevity as a property management company. The above tips can obviously be dug into in much more detail. If you’d like to learn more, message firstname.lastname@example.org. We’re here to help!
Until next time…keep it real!