How to Increase Revenue for Property Management Companies

Are you in stuck in a financial nightmare, with middling profits and increased costs threatening the very existence of your property management business?

Maybe you’re making just enough to scrape by but financial freedom is still a pipe dream. Something has to change and quick.

If you find yourself in one of these scenarios, there are two viable paths forward: cut your business costs or increase revenue for property management services you provide. Ideally, you should focus on both collapsing your unnecessary expenses and boosting your total income; this multifaceted approach will alleviate the pressure and set you up for longterm growth.

How Can I Increase Revenue for Property Management?

There are three main ways to increase monthly revenue: grow your portfolio, raise your management fees, and/or expand the range of services you offer. Each of these paths helps contribute to higher overall revenue, making for a healthier business.

Of course, there’s the easy answer and then the real answer. Increasing your property management revenue involves plenty of hard work and ongoing effort. It’s not as simple as snapping your fingers and gobbling up the influx of additional money every month. Nevertheless, by taking the right approach and giving each of these areas the attention it deserves, you can set your business up for success and focus on financial health.

Grow Your Door Count

We wouldn’t be DoorGrow if we didn’t emphasize the importance of adding to your door count. And for good reason! More doors equal more revenue, plain and simple.

There are a countless ways to add more doors to your property management portfolio, many of which don’t require any advertising costs! View the video above to explore techniques for growing your property management revenue using free prospecting techniques. Some of the techniques covered in the video include:

Plugging Your Leaks

Many business owners mistakenly think their biggest problem is getting property management leads. If you aren’t actively pursuing new business, limited leads can certainly hinder you, but many more property managers are plagued with too many leaks.

Marketing leaks, sales funnel leaks, website leaks…all of these leaky buckets leave you bleeding leads. Seriously.

Maybe your website really sucks. (You can find out if yours does here). Maybe you haven’t focused any attention on automating your marketing process, and there’s almost no followup for new leads.

Our Rapid Revamp program is designed for people like you…you’re not facing a lead problem, you have a leak problem! Learn how this 90-day program is designed to catapult you into momentum and get you on track.

Prospecting for New Clients

Whether you’re a brand new startup with no existing clients or you’re an established brand that needs to grow, prospecting can open up a world of new opportunity.

Exploring the Neighbor Strategy

Know what’s even better than working hard to get property management leads? Having them come straight to you. Take our free course on the Neighbor Strategy to learn more or sign up today for free.

Rework Your Pricing

When was the last time you took a look at what you’re charging in monthly property management fees? If you haven’t adjusted your fees in some time, you’re undoubtedly leaving money on the table.

Price Point

First, what are you actually charging in management fees? Have you accurately calculated the value of your services? Many property managers fall into the comparison trap, using competitors as their only point of reference for determining how much they should charge monthly. Instead, you need to assign value to what you deliver for clients and make your case by outlining the benefits of your service.

Multiple Tiers

One-size-fits-all pricing might be a simple way to go about setting costs for your clients, but it’s also a surefire way to make your profits flatline. Using price anchoring is an easy to way to increase revenue for property management services; not only can it help you to capture more monthly income from customers looking for premium management options, but it also can help to highlight your mid-tier option and close the sale.

Additional Fees

Nobody gets excited when prices go up, but the simple reality is the cost of everything evolves with time. You’re not paying the same for a gallon of milk that you were paying in 2018, and your mortgage payment, car payment, and insurance premiums have all gone up, too. To increase revenue for property management services, you have to confront fee jumps head-on.

Looking for some guidance on how to boost your fees and tack on additional charges? Take a listen to this DoorGrow Show episode with Darren Hunter, where he breaks down how to increase your property management fees while minimizing pushback from your investor clients.

Expand Your Property Management Services

Ready to take your efforts to increase revenue for property management services even further? Consider expanding your service offering further, creating a range of additional products and services real estate investors might want to take advantage of for their property.

Examples include:

• Rent-Ready Coordination

  Cleaning, painting, little minor repairs? All rental properties need these before they come to market.

• Utility Coordination

  Reduce the headache for tenants and clients alike by handling utility setup and coordination for new leases. You may even want to offer a utility payment service, where tenants pay you directly for their utilities.

• Pet Screening

  Properties that accept pets statistically rent faster than those that don’t, but many landlords worry about the damage an animal could do inside the home. Offer pet screening as an upcharge that provides peace of mind.

• Regular Pest Control

  Nobody likes a mouse in the house or termites attacking the back deck. Regular pest control helps keep potential problems at bay, and your existing property management team may be able to provide sufficient pest control without needing to call in a third party. Alternatively, you could partner with a local exterminator and resell their services to your clients with a healthy profit margin built into your pricing.

• Project Management

  Renovations and large-scale repairs often strike fear into the heart of landlords; offering project management services can alleviate some of that concern.

• Outdoor Landscaping

  Rather than leaving the landscaping responsibilities in the hands of tenants, offer landscaping as an add-on for your clients.

• HVAC Filter Delivery

  Partner with a company like Second Nature and have air filters delivered to tenants monthly; not only is this convenient, but it can help property owners to maintain their HVAC systems, keeping costly repairs at bay.

Provide Convenient Add-Ons for Tenants

One huge missed opportunity for property managers is treating clients like the only source of revenue; in fact, tenants can also be a great source of incoming funds.

Pet fees, late fees, application fees, amenity fees…there is no shortage of potential fees you can consider incorporating into a tenant’s monthly rent bill. Just like when setting your pricing for your property management services, the key here is to think of the value proposition and highlight that for your renters.

So, for example, don’t position monthly pet rent as an obligation that needs to be handled. Instead, advertise vacancies as being pet-friendly; this repositions the additional cost and shows the tenant the benefit behind it. The same is true for amenity fees or resident benefit packages, which often incorporate things like renters insurance, credit building tools, and even rewards in some cases!

By expanding your horizons beyond just investors, you’ll be well on your way to increase revenue for property management support.

Are You Stuck in a Financial Rut?

Are you feeling panicked as you look at your numbers every month? Are you stuck with a number of bad clients who are sucking up resources and costing you money? Maybe sales are slow and you’re not sure how to right the ship.

We’ve helped hundreds of property managers across North America to grow their bottom lines, increase revenue for property management services, and set their businesses up for success. Learn today how the DoorGrow Rapid Revamp program is designed to help you achieve similar results.

Schedule your no-obligation kickstart call today to learn how we can help