While profitability is one great sign of success, there are also many other less tangible indicators that your property management business is doing well. Following is a list of ten signs you’re running a good property management shop. How many items on this list apply to your business?
1. Your vacancy rates are low.
Low vacancy rates can mean any one (and often a combination of) several good things: 1) that you’re doing a good job marketing your property to new tenants; 2) that you’re maintaining existing tenants; and 3) that your units are generally sought-after.
2. You receive new property management clients from referrals.
In business, referrals are the sincerest form of flattery. When existing clientele are referring potential clients your way, it is a sure sign you’re doing things right.
3. You receive new tenants from referrals.
Chances are tenants who are displeased with your property aren’t going to recommend your property to their friends. As with client referrals, tenant referrals speak kindly of your work and may also indicate that you’ve successfully instated a good tenant referral program.
4. Your tenants stay put.
They like you, they really like you! As with all business, it costs far less to keep existing tenants than it does to find new ones. If your tenants tend to remain in your units for multiple lease periods, chances are you’re pricing your units right and making tenants feel well cared for.
5. Other property managers contact you for advice.
While it’s nice to keep some secrets to your success as your own proprietary information, you should feel good about what you do every time another property manager seeks out your advice. Being viewed as an authority in the field speaks well of your skill set.
6. Associations and other professional organizations invite you to speak at events.
This is a no-brainer, but if professional industry organizations are asking you to speak at events, it’s a sure sign you are viewed as an industry expert.
7. You have an online marketing strategy.
The size of your online presence doesn’t matter as much as the fact that it exists in the first place. Maybe your company has a robust web site or perhaps you limit your online activity to posting available units on Craigslist. Alternatively, maybe you favor social networking sites like Facebook or Twitter for marketing purposes. The main goal is that you have some sort of online presence, large or small.
8. Rental agents approach you.
In some areas, clients use real estate agents not only to assist them in purchasing a home, but also in renting one. Because these agents are paid to know rental properties, no one has a better overview of what’s out there. If these rental agents are approaching you to inquire about availability, chances are it means your properties stack up against the competition well.
9. Potential tenants approach you even when you’re not actively advertising vacant units.
This means your name and/or reputation has made a big enough impact that you’re a known commodity, available listings or not. Credit this to great marketing, great properties, or great customer service skills (or a combination of all three!).
10. You like coming to work every day.
If you enjoy what you do, you’re probably good at it. In property management, you deal with so many people: property owners, tenants, and vendors. Contentment in the workplace tends to translate to better relationships all around … and this means everybody wins.
Have you ever a had a moment where you’ve realized you “made it”? Share it with us in the comments below!
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