The Value of Procedures in Property Management
Let’s compare a Property Management business to an investment property. Generally the investment is held for a period of 7-10 years. To increase and retain the value of your investment you will need to maintain it and even improve it. The better the property presents the more attractive it is to a potential tenant and the more income it will produce.
A Property Management business is no different. You will need to maintain your asset by employing good staff to manage it, adopting good systems and procedures to keep it running smoothly and improve it by educating your team, increasing the size and value of the portfolio and constantly adapting your business practices to incorporate the latest technologies and trends. Using RED Genius well, can certainly tick some of those boxes.
To put it simply; a well-run property management business is worth more than one that lacks in any of the above aspects. If you consider all of the areas that will contribute to the worth of the business you will recognise that many of these feed into each other and are closely related and dependant on the other.
For example if you have poor systems you may find that you have difficulty employing or retaining good staff. If you don’t increase the size or value of your portfolio you might become less profitable and if you don’t keep up to date and relevant with the latest technologies and trends you might just lose your clients to someone who does.
All of these areas are controllable but I believe the fundamental hub for any well run and successful business is a structured set of systems and procedures. If like me, you’ve ever sat down to contemplate writing your own you will quickly realise this is a daunting task and having RED Genius removes this burden!
A good leader will recognise that it’s vital to have a set of procedures in place not only for your own internal risk management processes, but for your team’s growth potential and the businesses net worth.
So, can you increase your team’s accountability by providing them with a simple set of procedures to ensure that the whole team are consistent and efficient? I think the simple answer is yes. It’s not just enough to have the procedures, you must implement them and continue to ensure that the correct procedures are being followed.
Let’s consider this scenario – Your Agency has a strategy to employ Property Managers who are inexperienced; this is a 2 fold strategy because you want to mould them to suit your needs and it provides a great platform for giving that team member some career development opportunities.
Do you have the time to sit down and explain each process to that team member while they take notes OR would it be easier to direct that team member to the procedure, have them follow the instructions and learn to become self-sufficient?
Similarly do you have time to field every query/question from a staff member OR would you prefer to have them follow procedures to self-solve?
The value of systems is not only in consistency but in scalability. How do you expect your team to cope with more properties in the portfolio if there is no structure or system in place to manage what you already have? How do you expect a member of staff to perform relief functions if there are no instructions to refer to? If you are relying on one member of staff to perform a certain task that no one else is skilled to complete it is absolutely vital that you not only put a documented procedure in place but you need to cross train other members of staff to perform these functions.
Thankfully, RED Genius members have access to extensive Procedures online which is available to all Team members, from any location, 24/7!
Even the most novice team member will quickly establish confidence and become effective in their role. Staff have updated compliant procedures and information on their desktop without having to wait until someone is free to ask a question. When they need more support or guidance, RED Assist is a phone call or email away!