How to Manage the Business-Facing Side of Your Property Management Company: 101
As a property manager, you know that there's more to running a successful property management business than just maintaining the physical properties you oversee.
You also need to be able to manage the business-facing side of your operations, which includes tasks such as marketing, accounting, and client communication.
We'll talk about managing your properties and tenants in the next topic.
For now, since we've been talking so much about getting the business up and running, let's touch on the rest of what you'll need to do to get your business off the ground.
In the next several major parts of DoorLoop's Property Management 101 Hub, we'll dive deep into how to tackle each major section of both:
- The business-facing side, and
- The property/client-facing side of the business.
In this topic, we'll go over the 10,000-foot view of the business-facing side to prep you for that deep dive so you know what we'll be covering throughout that section of the hub.
Part I: Marketing Your Property Management Business
Marketing is an essential part of managing the business-facing side of your property management business.
Without a solid marketing strategy, it can be difficult to attract new clients and grow your business.
In this section, we'll discuss three key elements of a successful property management marketing strategy:
- Developing a marketing strategy
- Creating a professional website, and
- Establishing a presence on social media.
1. Developing a Marketing Strategy
The first step in developing a marketing strategy for your property management business is to define your target audience.
Who are you trying to reach with your marketing efforts? Are you targeting property owners, landlords, or tenants?
Once you've identified your target audience, you can begin to develop a marketing plan that is tailored to their needs.
One effective marketing strategy for property management businesses is to establish yourself as an expert in your field.
This can be achieved through a variety of tactics, such as publishing blog posts or articles about property management topics, speaking at industry events, or offering educational resources to your clients and prospects.
2. Creating a Professional Website
In today's digital age, having a professional website is essential for any business, including property management.
Your website serves as your online storefront, and it's often the first impression that potential clients will have of your business.
Make sure that your website is visually appealing, easy to navigate, and provides all of the information that prospective clients need to make an informed decision about working with you.
In addition to providing basic information about your business, such as your services and contact information, your website should also include:
- Testimonials from satisfied clients
- Case studies that showcase your expertise, and
- Educational resources such as blog posts or whitepapers.
3. Establishing a Presence on Social Media
Social media is another important tool for marketing your property management business.
By establishing a presence on platforms such as Facebook, Twitter, and LinkedIn, you can reach a wider audience and engage with your current clients and prospects in a more informal setting.
When using social media for marketing, it's important to post regularly and consistently and to provide valuable content that your followers will find useful.
This can include tips for managing rental properties, news about the local real estate market, or updates about your business and services.
In conclusion, marketing is an essential part of managing the business-facing side of your property management business.
By developing a targeted marketing strategy, creating a professional website, and establishing a presence on social media, you can effectively reach new clients and grow your business.
Part II: Managing Finances and Accounting
Effective financial management is critical to the success of any property management business.
In this section, we'll discuss three key aspects of managing finances and accounting for your business: tracking income and expenses, setting a budget, and working with an accountant.
1. Tracking Income and Expenses
One of the most important aspects of managing finances and accounting for your property management business is tracking your income and expenses.
This involves keeping accurate records of all money that comes in and goes out of your business.
There are a variety of tools and software programs available that can help you track your finances, including accounting software like QuickBooks or Xero.
Tracking your income and expenses can help you make informed decisions about your business, such as which properties are most profitable, and where you can cut costs to improve your bottom line.
It also makes tax time much easier, as you'll have all of the necessary documentation in one place.
2. Setting a Budget
Another key aspect of managing finances and accounting for your property management business is setting a budget.
A budget helps you plan and prioritize your spending, and ensures that you have enough money to cover your expenses each month.
When setting a budget, be sure to take into account all of your expenses, including salaries, rent, utilities, marketing costs, and any other expenses associated with running your business.
To create an effective budget, it's important to regularly review your income and expenses, and adjust your budget as needed to stay on track.
This will help you avoid overspending and ensure that your business remains profitable over the long term.
3. Working with an Accountant
While tracking income and expenses and setting a budget are important aspects of managing finances and accounting for your property management business, it's also important to work with a qualified accountant.
An accountant can help you navigate complex tax laws and regulations, and provide valuable advice and guidance on financial matters.
When selecting an accountant, look for someone with experience working with property management businesses.
They should be familiar with the unique challenges and opportunities that come with managing rental properties, and be able to provide tailored advice and support to help you achieve your financial goals.
Managing finances and accounting is a critical part of running a successful property management business.
By tracking income and expenses, setting a budget, and working with an accountant, you can ensure that your business remains profitable and financially healthy over the long term.
Part III: Communicating with Clients and Tenants
Effective communication is essential in any property management business.
Good communication helps build strong relationships with clients and tenants, which can lead to increased trust, loyalty, and satisfaction.
In this section, we'll discuss three key aspects of communicating with clients and tenants:
- Establishing effective communication channels
- Responding promptly to requests and concerns, and
- Conducting regular check-ins.
1. Establishing Effective Communication Channels
The first step in effective communication with clients and tenants is establishing clear and effective communication channels.
This may include phone calls, email, text messaging, or even social media.
It's important to ensure that clients and tenants know how to reach you and that they understand how and when you will respond to their inquiries.
In addition, consider using a property management software system that provides a dedicated portal for clients and tenants to access important information and communicate with you directly.
This can help streamline communication and reduce the risk of miscommunications or delays.
2. Responding Promptly to Requests and Concerns
One of the most important aspects of effective communication with clients and tenants is responding promptly to their requests and concerns.
This shows that you value their business and are committed to providing high-quality service.
Be sure to respond to all requests and concerns in a timely manner, even if you are unable to immediately resolve the issue.
When responding to requests and concerns, it's important to be professional and courteous.
Keep in mind that your clients and tenants may be dealing with stressful or difficult situations, and it's important to show empathy and understanding.
3. Conducting Regular Check-Ins
Regular check-ins with clients and tenants can also help improve communication and build strong relationships.
Consider scheduling regular meetings or phone calls to discuss any concerns, updates, or changes related to their properties. This can help ensure that everyone is on the same page and working towards the same goals.
During check-ins, be sure to actively listen to your clients and tenants and address any concerns or issues that arise.
This can help prevent small problems from turning into larger issues down the road, and can also help you identify opportunities for improvement or growth.
By establishing effective communication channels, responding promptly to requests and concerns, and conducting regular check-ins, you can build strong relationships with your clients and tenants and ensure the long-term success of your business.
Part IV: Streamlining Administrative Tasks
Running a property management business involves a variety of administrative tasks, such as managing leases, collecting rent, and handling maintenance requests.
While these tasks are essential to the success of your business, they can also be time-consuming and labor-intensive.
In this section, we'll discuss three ways to streamline administrative tasks:
1. Automating Routine Processes
One way to streamline administrative tasks is to automate routine processes.
This can include automating rent collection, sending lease renewal reminders, and scheduling routine maintenance tasks.
By automating these tasks, you can reduce the amount of time and effort required to complete them, freeing up your time to focus on other important aspects of your business.
In addition, automation can help reduce the risk of errors or oversights, which can lead to costly mistakes.
For example, by automating rent collection, you can ensure that rent payments are received on time and that tenants are notified promptly if payment is late.
2. Using Property Management Software
Another way to streamline administrative tasks is to use property management software.
There are a variety of software solutions available that can help automate routine tasks, provide insights into your business operations, and help you make data-driven decisions.
Some key features of property management software include lease management, rent collection, maintenance tracking, and tenant screening.
By using a software solution that meets your specific needs, you can streamline your administrative tasks and improve the efficiency of your business operations.
3. Outsourcing Non-Core Tasks
Finally, another way to streamline administrative tasks is to outsource non-core tasks.
This can include tasks such as accounting, marketing, and maintenance.
By outsourcing these tasks to third-party providers, you can free up your time and resources to focus on core aspects of your business, such as client relationships and business strategy.
When outsourcing tasks, it's important to choose reputable providers who have experience working with property management businesses.
Be sure to research potential providers thoroughly, and consider factors such as cost, quality of service, and reputation.
Ready to learn about the other side of property management?
Managing the business-facing side of your property management business can be challenging, but it's an essential part of running a successful operation.
By following the tips outlined in this guide, you'll be able to effectively market your business, manage your finances, communicate with clients and tenants, and streamline administrative tasks.
Remember, a well-run business will help you provide the best possible service to your clients and tenants, and ultimately help you achieve success in the property management industry.