Property management is a changing industry, and property managers need to change and stay competitive in order to get the best ROI, or return on investment. They need to maintain the value of their assets, or in other words, the real estate.
How can a property manager increase ROI? Here are a few ideas.
Understand the market
The market is ever-changing, and a property manager should be an expert when it comes to the local property market. They need to read and research daily, and they need to make sure to keep investors informed. Also, they need to keep up with local rent laws and rental rates at competitors’ properties.
Know the long-term plan
Property managers need to communicate with the owners and understand the long-term plans for a property. What is their investment strategy–do they plan to hold it for the long term? Are they planning on selling or renovating? Property managers should be expert listeners and communicators when it comes to future plans for properties they manage.
Communicate with tenants
Customer service is key. Whether it’s current or future tenants, a property manager also needs to be an expert at communicating with them. They will need to know how to engage with prospective tenants through social activities. They will also have to know how to deal with any issues creatively and handle them with poise.
Learn finance terms
There are a lot of different acronyms when it comes to cash flow terms: CAM, NNN, and NOI, for example. Everyone involved should understand these financial terms so nobody is left in the dark, or so that there is no miscommunication between parties. Everyone should speak the same “language”, so to speak.
There are a number of ways to increase ROI as a property manager. Understanding the market, knowing the long-term plan, communicating with tenants, learning finance terms: These are just a few ideas to get started. Because the multifamily industry is constantly changing and more crowded than ever before, property managers must also change and stay competitive. They need to actively work on maintaining assets and their value. They need to look beyond the physical confines of these assets and to find ways to add value for their clients.