Happy New Year! We hope you enjoyed a wonderful holiday season. Now, with 2013 just getting underway, we thought it would be a good time to provide an overview of how your property management business can get the inside edge for the coming year through revenue assurance.
In the hyper-competitive rental market, improving margins is a key factor to success. However, when it comes to revenue, it’s inevitable that some of it is slipping through the cracks. No matter how diligent you are, it’s almost a certainty that your business processes or infrastructure are creating unnecessary losses.
For example, your accounting schedule might not allow for time to take full advantage of vendor discounts, resulting in a loss of savings. Or you might occasionally miss outstanding parking charges, resulting in lost income.
There are countless areas along the revenue management chain where revenue can drip through. As a landlord, REIT or property manager, it’s essential that you review the efficacy of your operations and find the root causes of revenue leakage.
Channeling Revenue Leaks into Profits
Many property management businesses are losing revenue because their processes aren’t up to date. A great first step is to identify ways to optimize your operations and offer a modern, state-of-the-art interface that will attract – and retain – the best possible tenants.
Take advantage of automation. Create a user-friendly tenant portal that enables you to facilitate and manage occupancy in a timely, effective manner. Not only does this keep administrative costs down, but it opens the door to convenient, immediate tenant interaction, enabling you to respond promptly to questions or concerns, and build a strong tenant community.
Capture every lead. Develop a modern website that showcases your units with real-time availabilities. This feature will go a long way toward helping capture prospects while they’re hunting online for an apartment. It also shows that you put a premium on value, and are willing to invest in your properties and services.
Pursue high quality tenants. One of the best ways to protect your business is to ensure that you rent to the right people (i.e., the kind who will respect your property and pay their rent on time). By creating custom online applications targeting high quality tenants, you can be clear about the kind of renter you’re looking for and find ways to filter out prospective duds. You may want to consider using a form that allows you to create your own business/credit rules.
Offer alternate payment options. You can greatly reduce NSF charges – or leave them behind in 2012 – by offering residents a selection of rental payment options, enabling them to choose the one that’s most convenient for them. If cheques aren’t their preference, perhaps direct deposit or credit card payments will work better. By increasing their options, you decrease potential costs to your business.
Rest Assured with Revenue Assurance
No matter how successful your property management business, it always stands to benefit from a thorough operations review. By looking for revenue leaks and modernizing your processes, you can find many opportunities to improve margins. Make 2013 your best year yet.