There are a variety of tasks that a Property Management firm needs to complete on a daily basis. As a firm gets more clients or starts growing their business – repetitive tasks stack up fast and for this reason (as well as others), a large percentage of Property Managers are already looking to outsource, if they have not done so already.
By hiring Property Management Virtual Assistants (PMVA), a firm can begin streamlining its business and save labor costs. More importantly, case studies revealed that successful outsourcing of property management services leads to higher net income.
The studies reveal that the most successful firms conduct a thorough cost-benefit analysis with outsourcing viewed as a long-term investment. Because of this, Property Managers consider outsourcing as a strategic form of innovation through partnerships with progressive service providers.
Generally, repetitive and administrative tasks are some of the functions you can outsource. For example, common back-office responsibilities such as data entry and customer service can easily be one of these tasks.
Meanwhile, with the help of a PMVA, firms can easily outsource scheduling, phone and email support, processing work orders, creating bills and invoices, reconciling bank accounts, and more.
However, there are still other tasks we need to take a look into to identify which ones you should or shouldn’t outsource.
What Common Services Should Property Managers Outsource?
Property Management is a competitive industry and it’s important that organizations begin streamlining their operations to keep pace with other firms.
There are several core tasks that you need to look into to determine if it’s worth it to outsource. Earlier we discussed outsourcing document-heavy and repetitive tasks, however, there are usually some tasks that aren’t suitable to be outsourced, especially when it comes to property management.
So, when deciding to venture into outsourcing, it’s best to not dive straight into it without your proper due diligence. Think about what tasks you’re willing to put into the care of others and which can be offloaded to a remote employee. Property Management comes with a steep learning curve and your processes should be defined and trainable to a new team member- the same as they would be for a new hire within your office.
You need to learn about property types, terminology, common problems, locations, pricing, and more. Luckily, with the help of a Business Process Outsourcing (BPO) company, firms can find a partner to ensure that their virtual staff is highly trained and technically skilled.
Thanks to advancements in technology, the learning curve for Property Management becomes easier, especially when paired with professional training. Moreover, there is already software that allows an average person to collect rent, conduct research, and advertise property listings.
Considering the above, here are integral services that Property Managers should outsource:
Property Management Inspections
The most common stereotype about Property Management outsourcing is that remote workers shouldn’t handle property inspections. As the name implies – you need to “inspect” the property.
That means that firms have to spend time, money, and effort doing research, personally inspecting the property, and managing a database for all the listings. Luckily, it doesn’t have to be this way.
Due to the pandemic, the mindset for property management drastically shifted. During the lockdowns, a large percentage of property management firms shifted to a remote working setup.
Details of listings are easily and readily available online. This makes outsourcing property management inspections even more viable and sustainable. Now, Property Management inspection tasks such as move-in, move-out, and in-residence reports can often be done remotely. So, why not leave these tasks to your outsourcing provider?
In-House Vs Outsourced Property Management Inspection
According to an article from Purple Powered, 50% of a property manager’s weekly work hours can comprise Property Inspection responsibilities alone. Furthermore, a study from Zip Recruiter showed that on average, the rate of a Property Inspector averages at $17 per hour.
On the other hand, partnering with an experienced and trustworthy BPO company means that you have access to a large pool of talented and professionally trained Property Management Virtual Assistants who are ready to do this work for you.
And the best part about that is that it’s worth a fraction of the cost. A study from Outsource Accelerator revealed that partnering with a Business Process Outsourcing (BPO) company can save a business at least 50% overall in total costs.
Administrative / Back-Office Tasks Property Managers Can Outsource
As per the article, almost 40-60% of Property Management related tasks have administrative elements to them. And, as discussed earlier, these tasks, although important, can become redundant and take up a lot of time.
For this reason, outsourcing back-office or administrative tasks is becoming the trend amongst industry professionals. Here is a quick run-through of admin tasks that you can outsource:
- Preparing/Creating Management Contract – Sending out relevant documents and letters of confirmation to the right people. This task also involves setting up important property management software for owners, syndicating marketing collateral, and more.
- Tenant Applications – Processing potential tenant applications including screening, preparing documents, and adding new tenants into system databases.
- Property in-residence inspections – Creating and issuing entry notices for the tenants.
- Rental Payments – Creating and sending out emails and messages to non-cooperative or delinquent tenants. This task also includes sending out breach notices to tenants in arrears along with drafting termination notices for those facing eviction.
- Tenant Renewal – Updating property management database for clients, preparing CMAs, sending emails, and processing documents for relevant parties.
- Preparing and Distributing Pertinent Paperwork – Sending out forms, and letters, as well as uploading and syndicating marketing materials and updating property management software with appropriate software
- Early terminations – Preparing and mailing pertinent documents, forms, and letters, uploading and syndicating marketing materials, and updating property management software with pertinent software.
- Vacating tenants – Preparing and mailing letters and reminders to landlords and tenants, as well as uploading and syndicating property marketing materials
- Termination of management – Preparing pertinent paperwork for the transfer of management that is being terminated
- Contractors and service partners – preparing and submitting required forms, documents, and letters, setting up contractors and service partners in property management software, sending reminder messages, and updating licensing and insurance renewal details
Conclusion
Outsourcing has a proven track record of lowering operational costs and promoting efficiency and productivity. More importantly, as your business grows, so do the repetitive tasks.
And, whether big or small, if you’re part of a property management firm that continues to face issues with scaling and staffing, then outsourcing can definitely be the way to go! For any company, outsourcing helps with automating non-core tasks so management can focus on profit-generating duties.
If you’re ready to start your outsourcing journey, Global Strategic can help with your business needs and give you the Strategic Advantage needed to edge out the competition. Talk to us today and learn more about how offshore outsourcing to the Philippines can help your business and future business growth.