How to Maximize Rental Income with Specialized Property Management
Property Management has become one of the most progressive sectors of real estate. With the rising number of individuals entering the field as investors, and companies owning real estate, there are many opportunities to fill a demand. Below are two core functions that all property managers must have and do to preserve the value and longevity of rental properties.
Major Roles of Property Managers
Consistently invest in themselves through effective management training
Handle all legal, administrative, maintenance/repairs, marketing and accounting duties
Being a confident and organized professional who is great at problem solving and delegating, results in a successful property manager!
How to Insert Yourself in the Industry Through Various Specialties
The key duties of a property manager are to fulfill owner’s specifications, generate income and increase the value of the owner’s investment. Those are the technical, hands-on responsibilities of property management. Then there’s the interpersonal side - having powerful soft skills such as communication, critical thinking, problem solving and leadership.
There are four major classifications of property management, each requiring a different set of knowledge and skills.
The Four Major Classifications of Property Management
Residential
Commercial
Industrial
Special-purpose
There is a high demand for residential property management, as it offers the biggest selection for prospective owners looking to acquire real estate. Multi-family residences and senior living facilities are coveted residential investments. As someone looking to get their foot into the industry, conduct necessary research to find a problem to solve, and set your rental business up for success.
Within the multi-family industry, HR staffing and recruitment poses a significant challenge. It’s hard to maintain talent as people are demanding higher compensation due to inflation. Companies like to keep as much profits as possible but this does have a downside to their bottom line - high employee turnover rates are expensive.
A critical element you could focus on is minimizing employee turnovers. Analyze the causes as to why an employee would decide to leave and provide solutions and incentives to foster healthy working environments. When offering staffing services to multi-families and apartments, recognize and acknowledge the achievements of employees (both one-on-one and through company newsletters). Every three to four months offer a pay increase or promotion by conducting ‘milestone interviews’. Check in with employees to see if they are adhering to their responsibilities and growing professionally. For employees scaling up, provide training and resources to improve their skills. Create weekly and monthly objectives to reward employees with tickets to sporting and social events. Make your employees feel appreciated and valued by hosting Christmas parties and dispersing bonuses - that extra love during the holiday season means a great deal
“A successful property manager analyzes the causes as to why an employee would decide to leave and provide solutions and incentives to foster healthy working environments.”
Tweet This!When you train and pay your employees properly while having a great amount of employee benefits, you create a company culture that people want to stay in. HR staffing agencies for multi-families and apartments can be a lucrative business, if you offer upper-echelon customer service and try not to cut corners on compensation.
“Instead of starting employees off at $16-$19 hourly rate, consider upping it to $21-$25. The higher the compensation, the more someone feels valued. Also, request company feedback so your employees feel sean and heard.”
Senior living Facilities
For senior living facilities, you can offer 65+ property management, which is similar to the multi-family industry yet you’re promoting services to aging communities. You must offer housing amenities that enable independent lifestyles while providing comfort and convenience. Some important services to consider include, 24-hour assisted living caregivers, daily housekeeping, transportation and on-call concierge. When planning social events, consider creating a hiking/walking club, art classes and music therapy sessions.
Another unique venture would be to offer property management to loft buildings. These buildings were once used for industrial purposes but are now being converted into multi-families, apartments and even storage facilities. (Therefore creating two income streams from one building.) Everyone needs storage! Offer small, medium and larger sized self-storage units in the basement or the first few floors of the building. Make sure the units have smart locks and are climate controlled.
“Renting parking spaces is another profitable income stream. If there’s any open space near the building, pave a ground area to provide assigned parking to residents.”
There are so many ways you can get your foot in the door through residential property management. Identify a problem/solution and specialize - start small and then scale!
“A successful property manager analyzes the causes as to why an employee would decide to leave and provide solutions and incentives to foster healthy working environments.”
Tweet This!