Why Numbers in Property Management are your Friend, not Foe.
It’s often said that you cannot change what you don’t measure.
Every Rent Roll has data available. This data tells a story and paints a picture of what can be done to make the business of Managing Property more awesome and far less stressful.
‘The volume of calls into a Property Management office can be overwhelming, leaving some Property Managers stressed out and feeling like they just can’t get ahead. Sound familiar?’
A ‘diagnostics check’ on a business can reveal data that shows why Property Managers are stressed out and inundated with calls.
Here are just a few examples …
A maintenance report printed from the Agency’s Trust Account software can show outstanding jobs over a certain amount of days and if any outstanding quotes are incomplete. Now at a simple glance, you might say there are no follow up systems in place. While this may be correct, the data can also show other possibilities for improvement.
- How are Tradespeople or Contractors ‘inducted’ into the Business?
- Do they have minimum standards in place for contacting the Tenant, completing the work and submitting the Tax Invoice?
- Is there a follow up on outstanding jobs every 7 days?
- Are the Property Management Team trained on how to receive maintenance into a central location in the business?
- Are there minimum standards in place for processing Work Orders and do the Property Managers educate the Landlords on when the end of this process is? It’s a Tax Invoice, right?
- Do the Property Management Team realise that quote requests by a Landlord is often just ‘putting the process’ on hold and that it’s often unnecessary as they’ve done the quoting process ‘en mass’ when they hire tradespeople based on price, quality of work and their insurances and licensing?
A check on outstanding Bond finalisations at the end of a Tenancy can show if there are any bonds not finalised.
- How can this occur?
- What is the Agency’s vacating process? Do they educate and ‘coach’ the outgoing Tenants towards a full Bond refund early in the process?
- Is there a definition of ‘clean’ that everyone runs by? ‘Anything that cannot be enhanced by a cleaning product’ is clean.
- What percentage of Tenants have to return to the property to fix cleaning and repair items after the vacating inspection?
- What percentage is acceptable?
- What are the minimum standards in place for completing the Vacating Inspection and finalising the Bond?
- Are the Tradespeople engaged early to offer help to the Tenants moving?
What are your Rent Arrears? Do you have any ‘serial offenders?’ Well ask the following questions:
- Are there days of the week where the number of Tenants in arrears is less? Most businesses will tell you on a Thursday or Friday. That’s because most people get paid on a Wednesday of Thursday. Can you change the Tenants paid to date to make it easier for them to pay on time?
- How do Tenants pay their rent? Is the process easy to manage and relatively stress free or does it take effort and time to pay their rent?
- What can be done during the ‘sign up’ process to help Tenants to pay their rent on time, every time – therefore eliminating a potential problem before it starts?
With just these three diagnostics, you can begin to measure where the influx of your phone calls are coming from and begin to slow them down, dramatically!
Good work done early in Property Management reduces stress and increases the time of Property Managers to manage. The good news is when incoming calls are reduced substantially, everyone in a Property Management department feels more in control. They are pushing out helpful and timely information to Tenants and Landlords and the need for Tenants and Landlords to make an inbound enquiry is reduced hugely.
Rather than just ‘going through the motions’, look at each data report from your software and question it. What can we do to eliminate this? What can we do to stop the calls coming in? Your answers are in your numbers. Make them your friend.