If you’re looking to reduce expenses in your property management business and for your landlords, this article explores valuable cost-cutting strategies that can help keep your clients happy and increase your profitability without sacrificing service quality.
1. Create a preventive maintenance checklist
As the saying goes,
“An ounce of prevention is worth a pound of cure.”
Regular inspections and maintenance keep rental properties in good condition and avoid more major and costly repairs in the future. One approach to ensure the upkeep of your landlords’ properties remains a top priority is to pay contractors as swiftly as possible, thereby earning their goodwill and swift action in turn when disaster strikes. And the way to do that is to use a powerful automated maintenance ticketing system that comes integrated with a bank-integrated payment platform.
Handling maintenance ticketing through an online platform also cuts down on the time spent communicating with renters and owners, so you can get to solving the problem quicker.
Depending on the extent of the damage, you may even be able to do some basic repairs yourself and save on labor costs.
Upgrades and remodels may not be strictly necessary, but they can also do a great job of attracting and retaining renters, saving you time and money on vacancies.
2. Evaluate your insurance coverage
One property management expense that is easy to overlook is business insurance, since many people don't think about it until they need it.
Real estate businesses deal with large and/or frequent in- and outflows of client money (sales deposits and rental monies), and are highly vulnerable to negligence or criminal actions – within or outside the business.
By reviewing the insurance policies you may already have in place, you can bridge any shortfall in cover needed against claims by clients suffering damage due to staff negligence or wrongdoing or external sabotage against your business. A regular review will also ensure you aren’t paying for unnecessary coverage and if there are more cost-effective options available.
3. Lower your energy bill
Investing in energy-efficient workplace features like LED lighting and weatherstripping can help save money on overhead in the long run.
And because certain property management tasks can be done remotely, encouraging staff to do so can help cut back on variable expenditures such as utility bills and office supplies.
4. Optimize admin with property management software
Time- and resource-consuming admin such as rent collection, reconciliation, and distribution can be the biggest drag on efficiency in your business. Investing in smart property technology (PropTech) can help you streamline such processes without having to hire an additional bookkeeper, saving payroll expenses and minimizing per-unit costs.
However, when evaluating PropTech as a business investment, it’s important to compare all associated costs, including any banking fees. PayProp's direct integration of our client trust environment with the US banking system allows us to provide per-transaction costs that are 62-70% lower than the average cost of owning your own account.
Be sure to pick the property management software that not only best fits your budget, but helps you save money in every area of operation.
5. Use other smart technologies to deliver great service efficiently
Beyond admin-busting software platforms like PayProp, many other smart technologies are proven to create time- and resource-saving efficiencies in real estate.
For instance, virtual tour software can eliminate the need for property managers to be on-site to show a rental unit, saving both the property manager and the tenant time. For in-person showings, property managers can save significant time and travel expenses by using automated scheduling tools to optimize their routes. Rather than idling in traffic, you can use the time saved doing tasks that bring in the most money.
Ultimately, the cost of great PropTech pales in comparison to what you stand to lose due to inefficient work processes. Take a proactive approach to reducing expenses and your bottom line will improve in no time.