10 Rapid-Fire Questions With An Expert Business Consultant
Dec 17, 2023
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Deb Newell, an expert business consultant in property management, shares insights on revenue and unit count, the impact of unique titles, creating a vision and mission for property management companies, seeking guidance from conferences, and wrapping up with a discussion of services and contact information.
Consider both revenue and unit count when setting goals in property management to ensure profitability.
Implement resident benefit programs to increase revenue per door, while considering state regulations and the unique needs of owners and residents.
Be proactive in communication, reporting, and metric tracking to improve operations and owner satisfaction.
Make bold and clear decisions, set boundaries, and focus on operational readiness to achieve growth in property management.
Develop a clear vision, mission statement, and core values to align the team's efforts and enhance the company's culture and reputation.
Deep dives
The importance of focusing on both revenue and unit count
Property managers should consider both revenue and unit count when setting their goals. While more doors can mean more potential income, it's crucial to also assess revenue per door to ensure profitability. By setting a monthly revenue target and backward planning, property managers can determine the number of doors needed and identify opportunities to maximize revenue on both the owner and resident side. It's important to consider the complexity and expenses associated with growth, as larger operations require more resources and can impact profitability.
The value and considerations of implementing a resident benefit program
Property managers should explore ways to increase revenue per door, and implementing a resident benefit program can be one approach. However, it's essential to consider the specific context and regulations of each state. The program may not necessarily follow the conventional model and can be adapted to fit the unique needs of owners and residents. Diversifying revenue streams beyond management fees is crucial to mitigate risks associated with fluctuating door counts. Property managers should assess the profitability and feasibility of resident benefit programs and ensure alignment with the team's support and buy-in.
Shifting from reactive to proactive property management
Being proactive rather than reactive is crucial for property managers. Proactive communication, reporting, and metric tracking can significantly improve operations and owner satisfaction. Regularly reaching out to owners, conducting quarterly reviews, discussing potential future issues, and budgeting for necessary maintenance or repairs can build trust and create smoother relationships. Shifting the focus to asset management, nurturing owner relationships, and prioritizing effective internal operations can foster proactive property management.
Overcoming obstacles to growth through bold decision-making
Many property managers struggle to achieve growth due to a reluctance to make bold and clear decisions. Being upfront with owners about policies and expectations, such as not providing multiple bids for maintenance work, can save time and resources. It's important to set clear boundaries and manage owner and employee expectations. Property managers should also focus on operational readiness before pursuing growth. Building a strong foundation and having smooth internal operations are essential to support and sustain growth.
The significance of vision, mission, and core values for property management companies
Property managers should develop a clear vision and mission statement for their company. Having a defined direction and purpose helps align the team's efforts and motivates them to work towards common goals. Clearly communicating the company's vision and values to team members and clients is crucial for their understanding and buy-in. Alongside the vision and mission, establishing core values helps guide decision-making and behavior within the company, shaping its culture and enhancing its reputation.
Hiring a business development manager and sales-focused employees for property managers
When property managers reach a point of needing more sales and business development support, hiring a dedicated business development manager (BDM) or similar role is recommended. Outsourcing sales responsibilities to property managers can be ineffective, as the focus may shift away from proactive sales efforts. Hiring a BDM or sales-focused employees allows specialized focus on outbound efforts, networking, building relationships, and selling property management services. However, property managers should also ensure that the operational side of the business is prepared to handle growth before bringing in sales-focused employees.
Unlocking additional revenue by properly recouping technology expenses
Property managers often overlook the opportunity to recoup technology expenses and miss out on potential revenue. Charging a technology fee to owners and incorporating it into the owner's budget can help cover ongoing technology expenses. This fee can be a one-time charge per unit per year and helps property managers offset the costs associated with implementing and maintaining various technologies. By effectively communicating the purpose and benefits of technology to owners, property managers can emphasize their commitment to staying modern and efficient while maintaining a people-focused approach to property management.
Finding operational tips, tricks, and guidance for property managers
Property managers can find operational guidance from various sources, such as industry organizations like NARPAAM, ARPM, and IRAM. Attending conferences and trade shows related to property management provides opportunities for networking and learning from industry professionals and peers. Engaging with online communities or Facebook groups dedicated to property management can also provide insights and advice, although caution should be exercised regarding the credibility and applicability of information. Additionally, property managers can seek the expertise of consultants and coaches who can provide tailored guidance and support for specific business needs.
Identifying personnel in the wrong roles and the impact on property management
Property managers must be attentive to signs that an employee may not be suited for their current role. Indicators can include lack of enthusiasm, lack of effort, complaints, or failing to meet expectations. Ensuring team members are in roles that match their skill set and career aspirations is vital. Conducting behavioral assessments, evaluating employee performance, and maintaining open communication can assist property managers in identifying when a personnel change or adjustment is necessary to maintain high performance and motivation.
Main Idea 10: The importance of appropriate job titles for property management employees
Property managers should carefully consider the job titles they assign to their team members. Job titles should accurately reflect the role and responsibilities of the position within the property management industry. Inflated or misleading titles can create expectations from employees and owners that may not align with the reality of the position or compensation. Aligning job titles with industry standards promotes transparency and clarity, ensuring that team members and owners have accurate expectations of roles and responsibilities within the company.
No matter how great a person is at their job, we can all learn and grow from others. Usually, that involves a manager, coach, or consultant helping us along the way. Deb Newell of Real-Time Consulting is a business consultant who specializes in the property management industry. She joins the podcast to answer a series of questions to help us improve operations in this unique industry.
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