The property management industry is stronger than ever. The industry generated over $88 billion just last year alone. However, with this success comes competition. More and more property management companies crop up across the nation every year. This means it is more important than ever to implement effective business strategies to satisfy current real estate investors and attract new ones in the future.
Build a Property Management Team
To be an effective property management company, you need to market your business as a one-stop-shop, comprehensive company where real estate owners can comfortably and confidently pass responsibility. If there are any areas you are lacking, a property owner will notice and will experience doubt. As already stated, the industry is booming, and owners have their pick of interested property managers.
So, you must market your complete service capability and emphasize your expertise in the industry. For owners you are currently working with, sitting down with them and having a conversation about the real estate portfolio’s advantages, challenges, and long-term goals can be incredibly beneficial.
Introduce First-Time Investors to the Real Estate Industry
Every property manager knows the real estate industry has its ups and downs. Still, the industry has proven surprisingly resilient in many cities nationwide, ranging from Seattle to Austin to Miami. More first-time real estate investors are entering the industry and are looking for dependable help. Often, first-time investors’ interest outweighs their actual knowledge of market trends and best real estate business methods.
When managing a first-time owner’s portfolio, it is essential to establish a solid relationship with them. The real estate industry is based on who you know and who you can trust. If you take the time to become a familiar face, the owner is more likely to trust your management. As a result, they will be satisfied with your service. The real estate industry can be exceptionally confusing for someone new. So, when you take the time to explain the best course of action in a patient, straightforward way, the owner will trust your advice.
How to Market to Real Estate Investors
Investors will be most interested in the variety of services you can offer them. As mentioned before, you want to market yourself as a comprehensive service. A few services that real estate investors, in particular, will be looking for are tenant screening, rent collection, and the setup and maintenance of an online rent collection portal.
Comprehensive Tenant Screening
Tenant screening can be a tedious, confusing endeavor as each state has its own specific renting laws. Real estate investors are glad to allow someone else to perform this task. When you are conducting the screening, be as thorough as possible. If you settle for a tenant with a poor renting history, you can be creating more issues down the line. It is beneficial for you and the property owner to discuss your state’s laws and what attributes are essential to the owner in a renter. This can then help inform your search.
Online Rent Payments
Rent collection can, at times, be a conflict-ridden process. Ideally, the property’s tenant is responsible and respectful; however, this is not always the case. In less than ideal circumstances, you may have to employ methods to attain the rent owed. The best way to approach this is always to be professional and not take the situation personally. Communication is the most effective method of resolving the issue–remind the tenant of the terms laid out in the lease and explain what is expected based on state laws. Avoid any outright conflict and reassert what they are legally required to do when it comes to late payments.
A functional and easy-to-use online rent collection feature greatly benefits the owner and the tenant. The convenience of online payment is superb, and it also helps the owner because there are fewer missed rent payments once automatic online payments have been set up. Implementing and maintaining this feature requires a high level of computer science knowledge that most real estate investors do not have, which is why they will turn to you. Remember to consider all the elements of effective website design when creating the portal, such as color-palate, page design, ease-of-use, etc. The owner and tenant will judge your management capabilities based on the professionalism of the portal.
Communicate With Rental Property Owners
A key element in managing a rental property owner’s portfolio is emphasizing the potential short-term and long-term profits. First-time owners are new to the industry and maybe understandably concerned with the short-term gains. In a culture of immediacy, new investors are often impatient to see their investment pay off quickly. As you walk them through your plan for their portfolio, take extra care to explain the long-term goals of investment properties such as single-family homes. This can also reduce potential friction between you and the owner in the weeks and months to come.
To this end, using a property management software solution can benefit many ways. First and foremost, property management software can help you keep all the property information, tenant information, and more organized and in one location. Also, showing this software to the owner will give them a clear visualization of your plans for the rental property portfolio. There are many property management software companies, but you can find one that checks all of your boxes if you research through the options.
