7 Property Management Pitfalls

By on Feb 5, 2019 in Technology

Property management is tough. Every day can feel like shooting at a moving target, that is invisible, and may decide to shoot back at you at any movement.  Proper preparation can take the sting out of your daily grind and propel your business to success!property management team works through pitfalls

Below are seven common property management pitfalls with suggestions on how to fix them.

  1. High Turnover Whether it’s residents or staff, high turnover is a bad sign.

Jen Piccotti of multifamily housing consultant group Manag Inc., defined high resident turnover as anything over the national annual average of about 50 percent. High staff turnover exceeds the national average of 32 percent per year. When your numbers hover near the national averages or higher, it’s time to regroup.

Renters are a naturally transient demographic. Sky-high turnover primarily reflects issues within management.

A recent survey by Unicom reveals that 27 percent of respondents said hiring and maintaining quality staff was the single biggest challenge. Of that pool, 49 percent said hiring and maintaining staff is “challenging” or “very challenging.” When staff turnover is high, examine daily operations. How can the environment be more conducive to growth and fulfillment? What can make the job more efficient, thus easier?

Here is a hint: fix staff turnover first. When happy, empowered employees are in place, they can best address the needs of residents. When residents are cared for, high resident turnover will resolve itself.

  1. Poor Property Management Systems Nearly 10 percent of respondents cite time management as one of their most pressing concerns. Among them, 30 percent say that time management is either “challenging” or “very challenging.”

A powerful property management system can reduce staff turnover by improving daily work conditions. Streamlining the leads-to-leases process takes a load off overwhelmed staff. Streamlining also reduces repetitive tasks like data entry and follow-up calls, resulting in better time management.

The tide builds in your favor! When employees enjoy improved work conditions and better time allocation, you can lower operating costs via less staff turnover, less resident turnover, and more efficient management practices. They all come together with the right property management software.

  1. Mediocre Maintenance Staying on top of maintenance falls in line with lowering operating costs. Without regular maintenance, your property descends into expensive disrepair and your resident dissatisfaction rises.

When you don’t care for your property, neither will your residents. Property damages escalate from there.  About 14 percent of the respondents claim property damage and unexpected maintenance were above all the other challenges!

Set the standard for your property and your residents. Implement a regular maintenance schedule and stick to it. Then help residents help you! With online maintenance requests, you can stay on top of unit maintenance before small problems grow larger.

  1. Rejecting Responsiveness Like it or not, residents now expect 24/7 responsiveness. If you are slow to respond to prospect and resident queries, you’re sabotaging your success.

First, get a respected customer relationship management system (CRM). That way, you can answer calls even when your office is closed. Secondly, enable all digital communications with an auto-response message. Let people know when they can expect a response from you.

  1. Not Reaching for Referrals Properties need a steady flow of leads and referrals to maintain high occupancy. If your property isn’t receiving consistent referrals, it may mean that residents are dissatisfied. With unhappy residents, poor reviews and limited referrals are bound to follow.

First, learn what your renters want. Address those areas of concern. Once you are on the track to improved resident satisfaction, initiate a referral program that incentivizes word of mouth marketing.

  1. Nuisance Non-compliance Nothing ruins a business faster than lawsuits or expensive non-compliance penalties. Rules constantly change.

Stay on top of changes with property management software that updates compliance for you. Also attend conferences that educate managers on developments in federal, state, and local laws.

  1. Dangerous Discounting When properties around you start to slash their rates, it’s easy to feel you must follow suit. But you may be leaving money on the table. Revenue management software ensures that you are charging the right price for your product without being motivated by fear or impulse.It may also help to explore ways to differentiate your property from the competition. Today’s renters are willing to pay more where there is value.