7. Maximizing Profits: Master A Dynamic Pricing Model
Aug 8, 2023
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This podcast discusses the benefits of dynamic pricing in property management, including tailoring fees based on property price points and geographic locations. It also explores the importance of transparency and properly pricing management fees. Additionally, it covers the advantages of implementing a resident benefit program, the significance of regular property inspections, and the need for a single point of contact for property owners.
Having a dynamic pricing model allows for flexibility in property management fees, ensuring fair charges based on property-specific factors.
Assigning a single point of contact for each owner improves communication, minimizes confusion, and enables efficient issue resolution.
Deep dives
Importance of Dynamic Pricing Model for Property Management Fees
Having a dynamic pricing model for property management fees allows for flexibility and ensures that pricing is based on the specific property and the level of effort required to manage it. By considering factors such as the property's location, condition, rental rates, owner's demands, and your own availability, you can quote a fair and appropriate management fee. This approach prevents a one-size-fits-all pricing model and ensures that owners are charged accordingly for the level of service provided.
Annual Inspections for Occupied Properties
It is recommended to conduct annual inspections for occupied rental properties. These inspections should be scheduled mid-lease term to provide enough time for tenants to settle in. Charging a fee to owners for the inspection is justified as it compensates for the expense incurred by the property manager. Quarterly inspections, while attracting clients initially, may not be scalable and can burden the property manager financially.
Establishing a Clear Point of Contact for Owners
To streamline communication and improve owner experience, assigning a single point of contact for each owner is essential. This direct contact, often an executive property manager, serves as a centralized source for owners to address their inquiries or concerns. This approach minimizes confusion for owners and allows for efficient resolution of issues by involving other departments as needed.
Benefits of Transparency and Resident Benefit Programs
Providing a transparent pricing structure on your website, such as a range of management fees, helps set clear expectations for potential clients. Additionally, implementing a resident benefit program, like Second Nature, can enhance the resident experience and attract high-quality tenants. These programs offer exclusive benefits to tenants, creating a competitive advantage for your property management company.
Are you a property manager looking for ways to best structure your pricing to your owner-clients? In this episode, Marc Cunningham compares the benefits and drawbacks of rigid vs. dynamic pricing models. He explains the importance of keeping your fees flexible in order to provide owners with the best value. Tune in to hear his insights on negotiating prices and educating owners - all while running a profitable property management business!