Today, many residential and commercial property managers choose to outsource to us non-core, back-office operations and repetitive functions as a potential growth strategy. Often, a 3rd party relationship is essential to building sustainable and scalable operations. Essentially, they keep the customer-facing interactions in-house and outsource the “operational” and “high volume” intensive iterative work to a third party. The other reasons today to outsource are to adopt new technologies and organize processes to make the operations more efficient and effective.
Our experience suggests that the companies who did this right focused on five (5) top strategies:
- They stepped outside the “comfort zone” and understood that “change is the only constant”.
- They moved away from “do it yourself mindset” and patiently embraced the power of outsourcing model for long-term benefits.
- They knew they had to adopt a process dependent model over their current people dependent model if they must scale their business and add more doors to their portfolio.
- They provided top town support as change champions while coached and educated their existing staff to undergo the transformation.
- They build the strong relationship with their outsourcing provider and embraced them as specialists; positioning them for success.
Here are top 5 services that are today successfully outsourced by the property management firms and we successfully do these today for our clients:
- Leasing Line Services: 70% of the calls that firms receive are leasing calls. Less than 2% of these leasing calls result into business. Outsourcing these and separating the leasing calls from owner calls should be a priority. The outsourcing company can not only take over and respond to the phone calls while representing your company; they can also implement and respond to other channels like emails and chat models.
- Maintenance and Emergency Calls: Most tenant related or property turnover maintenance calls (on average 90%) fall under the Level 3 critical needs that can be addressed by the pre-approved list of vendors. Level 2 tasks (on average 9%) that require non-standard review and Level 3 tasks (on average 1%) that represent disaster can continue to be handled by the corporate. The real benefit comes with leveraging outsourcing is the ability to run the business and handle after hours and emergency calls 24 X 7 from across the globe.
- Tenant Screening: You don’t want to pick the phone 20 times a day to answer the same question hundred times a day. Your outsourcing provider will quickly learn how you do this today, adopt your process, start addressing the volume and over time also improve the process. Not only will they provide a comprehensive report for each tenant screened but also provide each tenant real-time status of their application.
- Administrative Tasks: These are all leasing cycle services that are supported manually or by using property management software like Propertyware, Appfolio, Buildium, and Rent Manager. These could range from new property assignment, advertising, social media support, rent posting, lease renewal management, new lease execution to just simple transaction coordination.
- Accounting and Bookkeeping: These include managing receivables, payables, reconciliations, and monthly reporting.
For the firms that have successfully adopted the model, vacancy rates have done down; average time to market has reduced, focus on core areas has improved and staff morale has been the all-time high. Improvement of customer experience, reduction of compliance risk and freeing up of time to focus on more strategic areas are some more benefits. Because the model can be flexibly arranged as a managed service after the initial transition is completed; property management customers only pay for hours they use the services (more than 50% cost reduction in most cases). Check out an interesting case study here to learn more about how a property management firm leveraged the outsourcing model.
ValueOptim property management services will enable you to keep a focus on business strategy while lowering cost, optimizing operations, improving productivity and time management. As your strategic partner, we recognize the challenges that property management firms face and strive to exceed your expectations. Our deep knowledge and experience with property management will reduce your costs by at least 50% and significantly improve your profitability. ValueOptim management team has hands-on experience with real-estate industry as brokers, property managers, and investors.
Our differentiators put us ahead of any services provider in the nation:
- ValueOptim is the only company to map 300+ Property Management processes and translate that into templates and framework for immediate use for our client needs. We supplement that with technology and automation to improve the efficiency of your operations.
- ValueOptim only hires the top 4% candidates in the market. We have training programs in place for real estate property management.
- Our pricing model is unique and our customers only “pay by the drink”. We will establish the unit of work of our services depending on your needs and propose a service model.
We are a USA based company. Our services are backed with experience and we guarantee the quality of work we do for our clients. Most of our clients start with us on a small scale, experience the working model and gradually increase the scope of work over time. Many come to us after an unacceptable experience with another virtual admin firm or a freelancer.
Contact us to set up a complimentary consultation today or email us at firstname.lastname@example.org