Placeforce Blog

Property Managers: Fill the Gap and Generate More Revenue

The spectrum of property management reaches from self-management to full-service management.  However, in today’s difficult times, we are finding that the spectrum is not necessarily continuous.  There exists today an unmet need between the self-managed properties and the full-service properties.  With a little creativity and use of technology, property management firms can capitalize on this unmet need and tap into a set of previously unserviceable customers.

GAP BETWEEN SELF-MANAGED AND FULL-SERVICE MANAGEMENT = THE OPPORTUNITY

Property Managers around the country are all challenged to grow their businesses in this increasingly competitive market.  Customers are demanding more service for less money.  In many situations, firms are forced to turn away potential customers because they cannot afford to service them at the demanded fees.

This can leave a large population of properties that are not receiving the services they need.  Properties too, are feeling the strain of the economy and look for ways to save money.  For those properties, one option is to forgo full-service property management and to self-manage their property.  They save full-service management fees, but is their property being properly managed?  Perhaps, but likely not, and is it wise to chance mismanagement of this most valuable asset?

Here lies the opportunity.

Properties demand services yet are not willing or able to pay for the full-service property management.  Management firms, while they have the expertise, are unable to service these customers profitably.   Thus, we have an unmet need in the marketplace.

THROUGH TECHNOLOGY, EXPAND THE PIE

Property managers have an opportunity to expand their reach to service these previously unreachable customers.  They have the opportunity to expand the pie and provide service in a market that has a great number of potential customers.

With the technologies that exist today property managers can, in a very efficient manner, systematically provide a level of their expertise to the market and let these properties ‘self-manage’.   

Why would property managers provide their expertise to the market you ask?  
Simple, because they are then able to access these previously unreachable properties and with that comes a nominal monthly fee along with the ability to sell their ‘other’ high-margin services (accounting, cleaning services, budget preparations….).

And the benefit to the property?
They get a playbook from an experienced property manager without the cost; they get the technology; they get the safety net of the management firm should they need it and perhaps most importantly, they get the peace of mind to know that their most important asset is well managed.

A WIN-WIN SCENARIO
Both the property management firms and the properties end up ahead.  Granted this is a slightly new way of thinking and offering service to the market, but times change and we all must evolve with the times and adapt to the new market needs.  Those property management firms that can act quickly can rapidly gain a foothold in this new space and watch their business take off.