Maximizing revenue is about boosting efficiency and reducing unwanted expenses. When it comes to overseeing properties, you may feel like there’s a lot going on. However, when you keep things clear, it helps you spot all those areas you need to improve.
If you looking to increase the revenue of your property management business, there are ten useful ways to help you get started.
1. Keep Your Accounting Simple
There is no question that good accounting is the backbone of a successful company. If you want to find the areas of your business that don’t perform well, keeping track of what your money is doing will be a smart move. Also, doing so will help you make improvements.
Solid accounting is crucial to sound finances so make sure you don’t ignore this accounting area. Consider using property management software as it’s the best and easiest way to keep your books simple. Investing in the right accounting software is a smart move.
2. Avoid Getting Involved with Wrecked Buildings
Buying old and wrecked buildings may seem like a great bargain in the beginning, but they can often cause trouble from a property management perspective. These properties may call for expensive repairs and rigorous maintenance schedules.
If you want to streamline your investment portfolio, consider selling old units. A homeowner will be able to stay on top of the care than a renter with no sense of responsibility whatsoever. You can reinvest the money you make selling a home in a property that’s easier to look after.
3. Automate Your Operations
With rapid advancements made in technology, simplifying property management workflows has never been easier. When you choose to use automated technology while renting homes, it minimizes vacancy time and make-ready proceedings significantly. Moreover, automating technology brings great convenience to tenants.
4. Get a Real Estate License
Have tenants? If so, then getting a real estate license is a smart move. If you have good tenants, you can be their realtor in the future. This way you can earn a few dollars fairly quickly. Not every tenant will use you, as all of them know a real estate agent. Even if you manage to get just a few, it could give a boost to your earnings now, and when they send referrals later.
5. Automate Collections
A business cannot make profits if there is no income. And in property management, the income comes from tenant rental payments. While the majority of tenants pay their rent on time, any rent that goes unpaid can have serious outcomes. A business will not be able to pay its expenses if it does not generate income.
6. Implement Lease Termination Fees
There is not much you can do when a renter wants to break a lease. You can choose to implement the lease, or allow them to go. Make sure you have a lease termination clause in your lease to make the matter simple. Charge at least a month’s rent for lease termination.
7. Screen Your Tenants
Bad tenants can be expensive. If you don’t take your time to screen tenants properly, you never know when you might end up renting your property to someone who is not in a condition to pay.
Moreover, tenants can cause extensive damage to your property. They can cause other problems that can make you consume time and use the money. Ask them to produce their income and employment proof to ensure the rent you charge is not beyond their means. Speak with previous landlords so you can get a better feel for them.
8. Stay on Top of Maintenance
If you want to identify potential problems, then it is good to schedule routine inspections of your rental units. Make sure you keep track of schedules for fixtures and equipment maintenance at your properties. Deal with any issues on time to avoid further damage.
9. Stay Connected
Good communication always does wonders. It is your responsibility that you make your tenants feel valued and supported. Appreciate them for building a great relationship. Make communication simple for them to understand reap the rewards without having to invest a lot of time.
10. Choose Quality Fixtures
While it may seem tempting to skimp on fixtures, the initial savings can end up costing you a lot more than you can possibly imagine. Low-quality items calling for replacement are more likely to break down. Also, they can be costly when it comes to their repair. Opting for top-quality fixtures is eco-friendly. When you save energy with high-quality fixtures, it can result in big savings if utilities are included in the rental of your units.
Make sure you simplify things and avoid falling into the pitfalls of property management. Using the right tools to streamline property management will be your best bet. Also, creative thinking will help you save time and a great deal of money.
Author Bio - Maor Cohen is an entrepreneur by heart. In the real Estate Tech field. He has founded Pickspace Plus - A Property Management Software.