No one is exempted from the tedious and draining tasks that are tied to the property management profession. Even the best property management companies tend to succumb to the growing demand and strains of the practice and have resorted to sure-fire solutions to help them get back on track - namely business process outsourcing or to be more exact property management outsourcing.
So the question here is, why outsource property management? The answer is quite simple - the industry of business process outsourcing is rooted on the principle of helping businesses overcome their company’s weaknesses, and outsourcing property management is no different. Various businesses have outsourced a wide array of business processes to countries like India and the Philippines, and have reaped the benefits of this globalized strategy.
Here are the key benefits of outsourcing property management:
You save time for yourself, your team, and your company
Property management involves a tremendous amount of time. If you or your company handle properties such as condominiums, lofts, or apartments, you definitely know how quickly the work consume your team’s time - and in worse cases, lives.
Property managers and property management companies have a lot of work placed on their plates and their profession involves a lot of tedious work, such as back and forth communications with tenants or prospect, selling properties in online and traditional marketplaces, handling rent payments and property fees, advertising online and in high-traffic urban or suburban areas, and conducting property showings or viewings - there’s just a lot of things to do.
"So how does outsourcing property management save you time?"
If you outsource property management you’re given the option to delegate some of your tasks to a team of property management support staff which are well-equipped to tackle a wide variety of essential property management tasks. Here are just some of the processes you could outsource:
Tenant and prospect communications (Inbound and Outbound Calls)
Property marketing (Selling your properties through online and phone channels)
Finance and accounting (Rent payments, Reservation fee payments, Property dues)
Information data entry (Tenant information, Property information)
You save money
A key benefit that should never be overlooked when one outsources property management is the chance to decrease operational or overhead cost. Most businesses who outsource their business processes see this as the only rationale for working with an outsourcing company - and rightly so.
Companies can now cut costs exponentially while still retaining operational integrity. In most cases, outsourcing even allows companies to utilize the same quality of human resource - as compared to local staff - for half or even quarter of the comparable cost. One (1) local employee will most probably equate to a team of outsourced staff.
Yes, you’ll have to pay money to outsource property management services, but a seasoned business process outsourcer will always help you save money in the long run because you only spend for what you need - nothing more and nothing less.
"What expenses do you avoid when you outsource property management?"
You save money by foregoing a lot of the things that can be said to be essential when you hire staff because all which are shouldered by the outsourcing company that you have contracted. Outsourcing property management gives you the option of hiring property management experts without the added expense of shelling out money for employee benefits (Bonuses), tools and equipment (Computers, phones, and software), staff training, and insurance.
Your company will grow
Is your property management company’s growth hindered by the lack of corporate strategy or proper operational infrastructure? If so, then outsourcing property management will benefit your company tremendously.
One of business process outsourcing’s most beneficial aspects is the flexibility and scalability of the service as a whole. Yes, flexibility and scalability. Outsourcing companies as a whole adapt to needs and requirements of their clients. For example, for our company (KDCI) when clients ask us to increase or decrease their outsourced staff, we would only need a couple of days or weeks to get that sorted out.
This flexibility and scalability of service allow our clients to be ahead of their company’s operations and growth, compared to traditional operational processes. Outsourcing enables quick deployment, redeployment, and withdrawal of human resource which gives companies the leverage required to be ahead of any unforeseen circumstance.
"Grow, scale, and prosper"
And lastly, because of the freed up time, the money well saved, and the operational flexibility and scalability brought by property management outsourcing, companies gain competitive advantage. Now that you have the time, you can now focus on developing the core of your business - Now that you have the money, you can now invest in expanding your property management companies sales department - Now that your business can adapt, you can now face greater obstacles with ease.