5 Benefits of Outsourcing for Property Managers
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Picture the following scenarios: Tenants come up to you complaining that the rent is too high, and they expect you to magically lower it.
Or, you’re on the receiving end of infinite complaints about a noisy neighbor, and you have to make the call to either confront the person or buy earplugs yourself.
You see, it may sound funny or slightly absurd, but it’s also clear that being a property manager can be frustrating and time-consuming. A good property manager has a system in place so challenges can be met head-on with patience and professionalism. They will find the best solutions for every party involved. In this blog, we will look at property managers and how outsourcing could benefit them in the short and long term.
Property Managers – The Job
Property Managers are responsible for overseeing and managing real estate on behalf of the property owner. Their responsibilities can include one or multiple properties, including commercial, residential, and industrial.
What are they responsible for? This can depend on the property, but here are the basics:
Rent: Rent payments need to be collected, which would be the property manager’s job. They will also ensure that tenants comply with their agreements.
Maintenance: Property managers handle repairs and other maintenance issues.
Inspections: Conducted regularly on the property.
Units: Market vacancies. Property managers will try to find new tenants.
Budget: They manage financial records and budgets.
Policies: Develop and implement them.
Customer service: That’s a big one. There is plenty of feedback to manage—complaints, suggestions, and requests. You name it. A property manager will have to deal.
What has changed over time? How is the property manager job different now than it has been in the past? Recently, the role has evolved significantly, primarily due to technological advancements. Tech has made the job easier as responsibilities can be handled or processed more efficiently. For example, the introduction of software programs has streamlined tasks such as rent collection and maintenance requests. These are some of the improvements, and those set the stage for outsourcing too.
Rent:
Online payments are the norm now. In the past, property managers sometimes collected checks in person or via mail. Think how time-consuming and inconvenient this is. So, with online payments, tenants can submit their rent electronically. It’s more secure, and property managers can easily track those payments. Any inconsistencies are detected in real-time.
Software:
There is excellent property management software that has revolutionized the way property managers work. The programs can handle multiple tasks on a single platform. Again, this can include rent collection and things like tenant screening and maintenance requests. Moreover, you can pull any financial report easily and have a great overview of budget allocation details.
Cloud: Storage solutions now make access to data very easy. Property managers can access anything whenever needed. This is especially important when large properties or multiple ones are being managed.
Tours: The recent pandemic has solidified a shift in industry practices, including online property tours. This is highly convenient for everyone. Property managers can now showcase their assets without having to attend a showing. Showings can be offered through videos, 3D imaging, or even virtual reality.
It’s quite clear that all those changes have had a huge impact on the role of a property manager. Their work is more streamlined and efficient now. And by embracing tech, property managers can improve their managerial skills and offer better service to property owners and tenants. It’s a win-win.
What Can I Outsource?
The question for property managers is more like, what can’t I outsource as in recent years, delegation has become increasingly popular. You are most likely looking to streamline your work processes and try to focus on core responsibilities. By outsourcing specific tasks to external service providers, property managers can save time, reduce their own workload, and make sure that they are providing the best possible service.
Property Management Tasks That Can Be Outsourced
Accounting
Managing property finances can be immensely time-consuming and complex. By outsourcing all accounting and bookkeeping tasks to a professional service provider, you can rest assured that your financial records are accurate and always up-to-date. Moreover, everything complies with tax laws and other regulations. An in-house accountant is rather costly, so outsourcing is cost-efficient.
Marketing
In order to attract new tenants and keep existing ones, marketing practices are crucial. But do you have time to conceptualize and manage an advertising campaign? Also, are you sure your ad is as effective as possible? A marketing pro might be better suited to take over here.
Legal
As a property manager, you deal with a range of legal issues. This includes disputes but also lease agreements and compliance issues. When outsourced, you can reduce stress and time spent on things that will distract you from the day-to-day operations. Moreover, it’s not necessary to hire an entire legal team; you can simply outsource whatever you need.
Maintenance
Any repair needed? Do you have the specialized skills necessary to fix what needs to be fixed? Maybe not, and you also don’t have time to tend to every maintenance request. With a professional, you can keep a high standard without having to spend too much on a full position.
Screenings
You might require background checks for potential tenants. This involves some complex work, and there are people you can do that more efficiently. We assume that the better the investment choices now, the better the tenants. This will reduce the risks of future tenant problems.
Insurance
This is an easy task to be outsourced as insurance companies are necessary to manage buildings anyway. You need to make sure the property is properly insured and that claims are handled professionally.
Utilities
This might be somewhat surprising as people expect it to be handled by the property manager who will issue the utility bills. However, the more professionally utilities are handled, the better for all parties. You can assure tenants that they are paying their fair share.
Benefits of Outsourcing for Property Managers
Why outsource? By now, you are familiar with what exactly property managers can leave for other people to do. The benefits of outsourcing for property managers are simple and straightforward but widely effective. Let’s break it down here:
Cost
This is quite obvious, but cost savings are real. Certain tasks use too many resources and outsourcing them to more efficient and effective professionals will actually save you money. This is true for singular tasks or recurring ones. For example, when you outsource your accounting, you not only save on a full-time or part-time employee in-house but also on overhead costs. Nobody needs an extra office. So, the bottom line, invest in outsourcing to save costs.
Efficiency
Increased efficiency is one of the main benefits of outsourcing tasks. External pros can help streamline your property management. By outsourcing tasks like maintenance, you can ensure top quality and save time so you don’t have to do it yourself. Outsourcing will free up time to focus on more pressing matters too, and that will make the whole operation more efficient. And efficiency is the name of the game.
Experts
One thing is clear: When you outsource tasks, you will deal with experts in their field. And especially with technology, you’ll have access to specialized skill sets at your fingertips. These experts are available whenever you need them. For example, you can outsource all marketing activities to a pro or solely have social media managed externally. This means you don’t have to hire anyone in-house or train someone to do it. You can simply rely on someone with great expertise.
Tenant Relationships
Let’s go back to the previous example of outsourcing maintenance tasks. Not only will tasks be completed quicker, but they might also be completed better. This means that, overall, tenants will be happier. First, you improve the quality of the property, and naturally, tenant relationships will improve.
Workload
Outsourcing means less stress, and you still remain in charge. You can delegate the most time-consuming tasks that don’t require your own expertise. So, when the property is in better shape, tenants are satisfied, and you have less stress, it seems that work optimization is working correctly. It’s not about working more, it’s about working better, and outsourcing is a vital strategy.
Virtual Assistants for Property Managers
Virtual assistants are highly-skilled pros who will support you whenever and with whatever you need. Their talents are broad, and so are the benefits of hiring a virtual assistant. Like with any task mentioned earlier, virtual assistants for property managers can either do a full-scale job by completing many tasks or just a few. It’s all up to you. Virtual assistants for property managers can respond to tenant inquiries either online or over the phone.
Furthermore, virtual assistants can schedule property viewings and coordinate all meetings with you. They can handle maintenance requests and forward them to someone who will take care of them. They can also stay on top of payment collections for you. Virtual assistants can assist you in so many ways.
Let’s put it to the test. Let’s say it’s one of those hot summer days, and a tenant’s AC unit is not working correctly. The tenant used the online contact form to message the property manager. Since the tenant has left for work, the issue is expected to be fixed by the time they return. The hired virtual assistant is responsible for handling incoming tenant requests. This is clearly a maintenance issue, so the virtual assistant allocates someone who can address and hopefully fix the issue quickly. The virtual assistant ensures that this is an isolated incident and not a property-wide problem. So far, the property manager has been alerted but has not been directly involved. The virtual assistant is in close contact with all maintenance staff on the property. Someone responded to the general request, and the virtual assistant scheduled the maintenance work inside the unit. Then, the property manager is informed and requested to provide the second key to the unit. The issue is resolved quickly and smoothly.
As you can see, the property manager is only minimally involved here. And with more incidents, the more essential a virtual assistant is. A virtual assistant will then follow up and request tenant feedback.
Don’t Know How to Start Outsourcing?
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