According to industry data, more property managers plan to grow their portfolio in the next two years than we’ve seen since 2016. In addition, more rental investors plan to acquire new properties than we’ve seen since 2017. The more properties you manage, the more money you make. So it is vital to find ways to continue growing your portfolio. Which means you need to not only attract, but build relationships with property owners.
How Do You Grow a Property Management Business?
The best way to grow your property management business is to attract the right owners who will help you succeed in a meaningful way. Growing without actionable goals can lead to big problems that will negatively affect your business in the long run. It all starts with attracting and retaining the right property owners if you want to build strong relationships, offer quality service, and improve your financial portfolio.
Before you can grow and take on more clients and properties, it is essential to make sure you are adequately handling your current portfolio. To get new clients, you must ensure that your existing property owners and tenants trust and value your services. By building trust with your current clients, they can become advocates for your company.
Secondly, making sure that your properties are in good condition and your tenants are happy with your maintenance process will lead to a higher rate of positive online reviews. When acquiring new property owners, they will look at your online reputation; these positive reviews will help seal the deal.
In addition to encouraging tenants to leave positive reviews, providing a positive experience will help with tenant retention. Turnovers are a costly expense for property owners. If you have unusually high turnover rates, it will be challenging to retain the owners you have and obtain new ones.
How Do You Attract Property Owners?
Less than 45% of landlords oversee their own properties, meaning 44% of landlords are looking for property managers to help manage their portfolio. but as we mentioned, finding the right fit for property owners is imperative to your success and growth. So how can you attract the right property owners?
One of the easiest ways to attract new property owners is to rely on referrals and networking. As mentioned, if you build positive relationships with your tenants and property owners, they will advocate for your business. Prospective clients will likely evaluate your current listings and contact your current owners and tenants. If they have good things to say about you, they will help you bring in new owners with little work.
Another great way to attract new property owners is by utilizing social media. Leveraging your LinkedIn account is a great way to showcase your company and connect with other business professionals. Use your LinkedIn profile for showcasing your company’s mission and values and what is important to your business. This will help attract property owners with values similar to your own.
In addition, it is crucial to stay up-to-date with industry trends to provide your tenants and customers with the most valuable services. According to industry data, property owners are looking for managers utilizing technology to streamline their processes. Property Management software can help with leasing, invoicing, maintenance, and more. By leveraging software, you can provide a better experience for your tenants and give your property owners the information they need.
What is a property managers first responsibility to the property owner?
Communication is key to any successful relationship, and your relationship with your property owners is no different. One of the easiest ways to create tension with your owners is not providing them with important information. If your owner statements contain expensive maintenance charges month after month, your owners will likely become frustrated. On the other hand, if you communicate when issues arise and get their approval beforehand, they will not be sticker shocked when they receive their statements.
In addition to communicating with your owners, it is important to be transparent about any issues that arise. Transparency is the basis of trust and creates a sense of accountability. One easy way to be open with your property owners is by allowing them online access to your property management software. This way, your owners can track expenses on their own. With Property Meld’s Owner Hub, you can limit what your owners see so they only have access to the information that is important to them.
Once you have found a new property owner, it is essential to draft a comprehensive property management contract. This contract should outline the timeframe of the agreement, any fees you will charge the owner for your service, what your responsibilities are, and what you expect from your owners. This contract will lay out all the duties of both parties and ensure that you have come to an understanding. Having all your expectations in writing will help avoid misunderstandings in the future.
Owner retention and churn are ongoing jobs for any property management company. But if you attract the right owners and create positive relationships, they will likely stay longer.
