As the market has changed with increased competition and home prices climbing, there is far greater pressure placed on property management businesses to grow in order to survive and thrive in today’s new normal.
Before investing time and resources into marketing, it is paramount that a property manager perfects their financial equation. Start out by:
Knowing Your Numbers Inside and Out – One of the most common mistakes of a small business owner is to be so consumed by the day to day obligations that they neglect monitoring their financials. The successful business owners block time off weekly to review and asses their business. This means digging deep into your income statement, fee structure, and identifying trends over the last months.
Establish a Breakeven Point – After you have analyzed your numbers, calculate how much revenue you must generate per property on a monthly basis to cover all of your expenses. Isolate each part of your business (maintenance, leasing, etc.) to assess the overall effectiveness of each operating element contained in your company.
Setting Growth Targets – With your breakeven analysis in hand, revisit your fee structure across the board to ensure you are generating an adequate return on investment. In setting these targets it will require balancing several key factors – what the market will bear, your position within the competitive landscape, and your targeted customer.
The steps above are just a brief sample of the basics we will review deeper in our webinar on how to expand your property management business.
Interested in growing your property management business? Register to view our free webinar: Grow your property management business!