To keep your property management business healthy, here are the top vital signs you need to monitor.
Vital Sign 1: Arrears
Pulse Leaders keep a finger on the pulse of their property management business’ arrears. Their goal is to keep arrears at zero per cent by managing high-risk tenants. Pulse Leaders know that if their business has tenants with ongoing arrears, this is a sign that repair is immediately needed to avoid losing managements. Monitoring arrears, including proactively managing tenants who may pose a risk, is how Pulse Leaders ensure their business remains healthy.
Vital Sign 2: Tenancy expiry
Pulse Leaders continually monitor tenancy expiry. They know that a high percentage of tenancy terms due to expire in the same month can dramatically increase their team’s workload, quite often leading to other vital signs being neglected. That’s why Pulse Leaders make sure they know the number of tenancy terms expiring each month to ensure there is always an even spread of expiries versus workload. By closely monitoring tenancy expiry they can help maintain their business’ health.
Pulse leaders know that tenants in arrears are a sign that repair is needed to avoid losing managements.
Vital Sign 3: Tenancy terms
Pulse Leaders also monitor tenancy terms. Keeping their finger on the pulse of tenancy terms can optimise their team’s workload. Unlike some agencies which prefer to implement six-month tenancy terms in case tenants breach their agreement, Pulse Leaders ensure that their property managers implement minimum 12-month tenancy terms. They know this increases productivity by halving the time spent on tenancy renewals. What’s more, they know that if tenants ever breach their agreement, they can be terminated regardless of the term. By monitoring this vital sign, Pulse Leaders can maintain a healthier workload for their team.
Vital Sign 4: Average income
Pulse Leaders always check their average income. They know the importance of monitoring their business’ various revenue streams and knowing their average monthly income. If this decreases in any given month, they can more easily identify where and when a change occurred – such as management fees being reduced – and implement repairs where necessary. By keeping their finger on the pulse of their average income, Pulse Leaders ensure their business is always achieving optimal revenue.
Reactive communication minimises productivity, increases operating costs and often leads to client loss.
Vital Sign 5: Incoming calls & emails
Pulse Leaders constantly measure the number of incoming calls and emails to their business. They know that a high percentage signals a reactive communication style, where clients contact an agency seeking information because they are not being kept informed. Reactive communication minimises productivity, increases operating costs and often leads to client loss. That’s why Pulse Leaders implement a proactive communication style and maintain a 20 per cent incoming, 80 per cent outgoing split. They know that a healthy property management business is one that proactively manages communication.
Pulse leaders know that ‘busyness’ does not always equate to income producing efficiency.
Vital Sign 6: Productivity
Finally, Pulse Leaders continually monitor their team’s overall productivity. Quite often business owners measure productivity on whether their team is ‘busy’, but Pulse Leaders know that ‘busyness’ does not always equate to income-producing efficiency. Instead, they measure productivity against the number of tasks completed and the time taken to complete them. By keeping their finger on the pulse of their team’s productivity, they can easily detect the difference between busy and productive – and in doing so ensure that their property management business remains not only healthy, but thriving.