Remote Property Management: Tips for Success in a Digital World
Navigating Your Remote Property Management Business with the best tools in Digitalization
The real estate industry and specifically remote property management has increased in scale of adoption in the US. There is increasing comfort with the idea of remote property management due to improved digital tools such as online payment and communications, remote monitoring, and excellent property accounting solutions.
The technological boom and affordability of nifty gadgets and software have given access to great speed and power to almost everyone with a smart device and an internet connection. Since 2020, businesses across the world and more so in the US, have embraced Digitalization. While having access to the tools of the trade is quite amazing, leveraging them to your advantage can get quite dicey. Many businesses realize this sooner or later.
Remote Property Management Empowers Businesses
It’s about innovation and revenue growth, not just cutting costs for property management businesses to succeed in an increasingly digital world by providing a solution for the property application and lease signing process. Many property management software solutions offer an online application process that allows businesses to review information from potential tenants and even send out acceptance/denial letters.
Additionally, tenant portals are becoming increasingly critical to the success of any property management business. Tenant portals allow renters to do things like pay rent online, track payment history, facilitate maintenance requests, easily communicate with the business, and share important files.
While there are ample digital tools and solutions available, a dedicated and competent professional team is recommended to realize the targeted business goals. Outsourcing property management has become a go-to option for businesses purely for the reasons of convenience and assured return on investment. It is still cheaper than hiring a team of professionals and keeping them on the company’s payroll.
Outsourcing back-office services such as facilities management can represent 10 to 25 percent of total indirect spending for companies with distributed operations and can help reduce non-core costs without affecting the performance of core operations. Such savings cannot be ignored by any digitally savvy entrepreneur.
Enable Digital Efficiency by Outsourcing Back Office Services
Outsourcing Property Management backend services take care of the back-office tasks related to property management. This includes tasks such maintenance, support, legalities, publicity, payment and collections which can be time-consuming and require effort and manpower.
Some specific services offered by remote property management outsourcing vendors include payroll, human capital, accounting, financial reporting, information technology, data collection and analysis, and other property management back-office services.
Outsourcing these tasks frees up time for property owners and managers to focus on their core business.
By outsourcing back-office tasks such as data entry, companies can create a digital copy of their firm’s data which helps employees access critical company information quickly.
Outsourcing data back-office services can be critical support for a company’s digitalization process because it also allows companies to capitalize on more sophisticated provider offerings. These include customized industry solutions and advances in digital technology, such as AI, analytics, and machine learning.
Challenges of Remote Property Management Outsourcing
There are also a number of challenges associated with outsourcing property management operations which include,
Loss of Control: When a company outsources its property management operations, it loses some control over how the properties are managed. This can be a concern for companies that are not comfortable with giving up control.
Communication Challenges: Communication can be a challenge when outsourcing property management operations. This is because the outsourcing provider may be located in a different time zone or country.
Quality Control: There is always the risk that the quality of services provided by an outsourcing provider will not meet the company’s expectations. This is why it is important to carefully vet potential providers and to have a clear contract in place.
However, it’s imperative to know that advantages outweigh the disadvantages and when get nullified if backend services are outsourced to a professional property management company. Let’s take an example.
A large property management company based in the US was facing several challenges, including:
• A growing number of properties to manage
• A shortage of qualified staff
• The need to improve efficiency and reduce costs
The company decided to outsource its property management operations to a third-party provider. The provider was able to provide the company with several benefits, including:
• Access to a pool of qualified staff
• Reduced costs
• Improved efficiency
• Increased focus on core competencies
The outsourcing of property management operations has been a success for the company. The company has been able to:
• Increase the number of properties it manages
• Improve efficiency and reduce costs
• Focus on its core competencies
The company is now more profitable and better positioned for future growth.
There’s No Turning Back; Best time to Outsource Property Management Services is Now!
After witnessing and living through the major real estate boom and bust periods (the 2008 crisis, for instance) and the more recent global slowdown, the significance of digitalization has been appreciated by all. It is not If you need to outsource your property management, it is about when can you outsource it to a competent team of professionals.
DEO has partnered with many successful businesses and helped them realize their revenue and expansion goals, at quite an affordable cost.
When you decide on outsourcing your property management, do contact our experts, and they will apprise you of the next steps in leveraging digitalization and outsourcing, to your advantage.