Property management isn’t a piece of cake. Although it’s common for investment property owners to try to handle everything on their own, they are often taken aback by how time-consuming it actually is.
Rent collection, fulfilling maintenance and repair requests, managing vacancies, and handling the overall property budget are just a few of the responsibilities of having a real estate investment.
Handing these over to a professional such as a property manager is guaranteed to ease the burden on real estate investors. Each property has its own share of problems, but there are also key challenges that properties mutually share.
5 REAL PROPERTY MANAGEMENT CHALLENGES
There are many issues that property management firms face, but here are the top 5 problems they commonly encounter.
1. STAFF SHORTAGE
What began as “The Great Resignation” in late 2021 left lasting effects until today. Companies are still experiencing high turnover rates as more and more people want to stick to working from home or having a hybrid setup.
Companies are struggling to hire and retain staff, especially those who are highly qualified. With the existing insufficiency of well-equipped candidates in the market and the high demand for experienced property managers, staffing shortage remains to be prevalent across the industry.
2. OPERATING COSTS
Lower operating costs equal greater revenue. However, both fixed and unexpected expenses curb the goal of having bigger savings.
Varying demands, market conditions, and inflation are just some of the few factors that keep companies from slashing operating costs. Some businesses cope by implementing new strategies, such as outsourcing, that help them save a few pennies.
3. PRODUCTIVITY MANAGEMENT
In property management, every minute must be spent wisely. Staff may constantly be bombarded with multiple requests or simultaneous inquiries, causing employees to feel overwhelmed at times. Businesses feel like there is not enough time in the day to accomplish tasks.
Focusing on core tasks and being efficient are two key factors in productivity management. Without proper management, staff tend to spend more time on non-income-generating activities.
4. TECHNOLOGY
The new tools, platforms, and software being developed are pushing the value of real estate globally. Unfortunately, most property management firms struggle to keep up with the ever-changing technologies in the market.
Even though these innovations were created to make property management easier, a number of companies find it hard to transform processes digitally. Aside from the costs, businesses also find employing new staff or training current staff to use these tools time-consuming and expensive.
5. INCREASING REVENUE
Property management as an industry is valued at US $101.3 billion. Although its overall growth is projected to have an upward trend, some businesses struggle to generate more profit and revenue due to factors such as lesser use of commercial spaces, location choice, ballooning interest rates, and more.
Firms that are able to grow revenue face smaller profit margins, as they use the increased revenue to further grow their business.
HOW OUTSOURCING CAN BE YOUR FRIEND
Around 89% of property management businesses have outsourced at least one back-office function. This is one creative strategy companies use to save costs. Aside from reducing expenses, here’s how businesses can benefit more from outsourcing:
OUTSOURCE WITH THE REMOTE GROUP
The Remote Group’s real estate and property management services save businesses up to 70% on employment and overhead costs.
We connect property management firms with highly qualified and experienced experts to ensure nothing short of exceptional service. Book a discovery call with our outsourcing experts today.
