Your property management agency’s team structure could win you more clients. How? The new breed of savvy property investors knows that one team structure makes them money, while the other loses them money.
These property investors are now doing their research and asking more questions such as “What is your agency’s management style ‒ portfolio or task?” to ensure they hire property management agencies that use the money-making team structure: portfolio-based management.
Why do they want portfolio-based property management agencies? As you know, portfolio-based management means a portfolio manager is assigned to them, their property, and their tenants. The portfolio manager’s job is to make sure clients and their respective properties and tenants are cared for at all times. The portfolio manager therefore manages every process, such as maintenance, inspections, marketing, and so on. This leads to a streamlined and efficient management operation that’s favored by property investors because it maximizes communication, service standards and, ultimately, the income made on their investment properties.
What property investors don’t want are agencies where several property managers look after their properties — also known as task-based management.
Why? Because when one agent manages maintenance, one agent manages inspections, one agent manages marketing, and so on for every task, property investors’ potential to make money on their properties decreases because communication and service standards also decrease. Since information must pass from agent to agent before it finally reaches the agent responsible for carrying out the specific task, messages naturally get distorted, which often leads to increased disputes, tasks failing to be carried out, and property investors receiving second-rate service. Property investors don’t want task-based property management agencies managing their properties because such agencies simply increase their risk of losing money.
The new breed of savvy property investors understands that there are two tasks where task-based management is fine. The first is when an agent is tasked to consult with them to select a managing agency (a management consultant). The second is when an agent is tasked to secure tenants for their properties (a leasing consultant). Property investors understand that if portfolio-based property management agencies also have management and leasing consultants, then this is okay.
Therefore, if prospective clients ask you or your property management team about your agency’s management style, your answer should be portfolio. This shows prospective clients that your agency has an efficient team structure and management operation in place to give clients the greatest potential to maximize income on their investment properties or portfolio. If your agency’s team structure is currently task-based then I suggest you consider changing to portfolio. Portfolio-based management is what the new breed of savvy property investors want, so putting this team structure in place in your agency could very well be the key to streamlining your operations and winning you more clients.
For more information on how to improve your property management business’ operations and service standards so you can answer prospects’ questions correctly and win more clients, download our free ebook: 26 Proven Strategies to Help You Retain Your Team and Clients.Read more on Uncategorized