As 2015 kicks into high gear, it’s not too late for property managers to start making some New Year’s Resolutions for 2015.
Good management practices, like the five listed below, increase net operating income, increase asset values and enhance tenant satisfaction. By implementing the strategies below in 2015, smart property managers can move closer to achieving these goals.
1. Increase Revenue
Be proactive on collecting rent and accounts receivables. Staying on top of delinquent accounts avoids collection problems later on.
Confirm that your rent roll is correct. Check it monthly and ensure the data has been entered into the system correctly. Likewise, regularly check and confirm that your security deposit ledger is correct.
Practice good cash management. Automated clearing house (ACH) functionality streamlines accounts receivable. Pay expenses when due – but not early – so you can earn more interest on the float.
Fill your vacancies quickly. Use aggressive leasing strategies when space becomes available. Post the information you already have in your system to popular internet rental and real estate sites.
2. Decrease Expenses
Automate payment of invoices and check writing. Automated magnetic ink character recognition (MICR) check printing leads to fewer errors, inaccuracies and inefficiencies. Review and analyze utility and vendor bills monthly.
Regularly revisit vendor service contracts. Take advantage of economies of scale by using the same vendor for multiple properties when possible. Evaluate service levels regularly to be sure you are getting everything you are paying for.
3. Automate Maintenance and Work Orders
Automate both regular maintenance and repairs. Schedule preventive maintenance, generate and track digitized work orders, and coordinate communication with in-house staff and outside vendors. Track your work orders and look for recurring problems.
changing from a fixed to a predictive preventive maintenance schedule, which uses statistics, measurement and experience – not the calendar –to determine when to schedule service.
4. Improve Tenant Relations
Frequent communications between management and tenants yield significantly higher levels of client satisfaction, which lead to higher retention ratios.
Tenants increasingly want – and expect – to do a variety of functions online, like receive rent invoices, pay rent and fees, file maintenance requests, submit notices to vacate or search their handbook. Make it easy for them to do so. Some properties allow tenants to make repair requests online, expediting service and raising customer satisfaction.
5. Get an Automated Property Management Software System
A surprising number of property managers in this digital age still manage their portfolios the old-fashioned, manual way. Only about a third currently use an automated property management system. It’s time to make the switch.
Property management software systems like SKYLINE from Anton can automate a lot of the tasks listed above. These systems streamline, automate and more accurately assign the many tasks that managers perform on a daily basis, while tracking work progress and forecasting future needs and budgets. The net result is a more profitable and well-run business.
While lots of resolutions are either difficult or impossible for most people to keep, that doesn’t have to be the case if you’re a property manager and armed with the right management software system.
If only losing weight was this easy