Episode 105: Property Management in 2024 - Looking Ahead
Nov 6, 2023
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Discover the findings of Buildium's State of Property Management report for 2024. Dive into topics such as challenges in attracting new investors and strategies for growth in the property management industry. Learn about the fears and concerns of accidental landlords and the importance of aligning property management services with owner expectations. Explore the difficulties of scaling property management companies and the options for managing growth.
Effective communication of the value proposition is crucial for property management companies to persuade local investors and acquire new properties.
Service expansion in areas like construction management and offering additional services can enhance profitability for property management companies.
Deep dives
Challenges in Growth and Expansion
The podcast episode discusses the challenges property management companies face while trying to grow and expand. One of the main challenges is the decline in the number of rental owners planning to buy or sell properties, making it harder for property management companies to grow through the acquisition of new properties. Another challenge is the need to persuade local investors to trust property managers rather than self-managing their properties. The podcast emphasizes the importance of effectively communicating the value proposition of property management services to potential clients. Additionally, the episode highlights the struggle of maintaining customer service while rapidly scaling a service-based organization. The hosts suggest finding a balance between growing the team and investing in resources to ensure high-quality service delivery.
Services Expansion for Profitability
The podcast episode emphasizes the importance of service expansion for property management companies to enhance profitability. It mentions that around 40% of respondents plan to expand services in the next two years. The hosts discuss potential service expansion areas such as construction management, handling renovations and rehab projects, and offering service work like maintenance and repairs. They also suggest insurance and resident liability coverage as additional service offerings to increase revenue. The hosts advise companies to focus on low-hanging fruit and easy wins in service expansion rather than taking on entirely new business ventures. They stress the value of increasing the share of wallet from existing clients before pursuing new client acquisition.
Importance of Meeting Client Expectations
The podcast episode emphasizes the critical role of meeting client expectations for property management companies. They discuss the importance of setting clear expectations from the initial sales call to ensure alignment between sales and operations. The hosts stress the need for thorough onboarding processes and proper client education to avoid churn. They highlight the significance of addressing clients' concerns, such as fear of getting bad tenants or compliance with rental laws. They also highlight the role of technology in providing efficient service and communication to clients, while acknowledging the importance of personalized support in some cases.
Maintaining Profitability and Scaling Staff
The podcast episode explores the challenge of maintaining profitability while scaling staff in property management companies. The hosts discuss the difficulty of balancing growth with the need for adequate resources and team training. They mention the importance of developing systems for onboarding new properties and training team members efficiently. The episode suggests leveraging technology solutions to reduce team workload and considering remote team members to optimize costs. The hosts highlight the importance of hiring the right people and setting clear expectations to avoid compromising customer service during rapid growth. They also emphasize the value of profitability in funding further business investments.
Last week, Buildium released its annual State of Property Management report for 2024. In this episode, Spencer and Matthew host a roundtable with other Evernest team members to discuss their biggest takeaways. Listen in to find out how property managers are looking at this upcoming year.
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Connect with Matt and Spencer at Evernest: Evernest.co
