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Evernest’s Spencer Sutton recently sat down with industry pros Mark Ainley and Mike Krause to explore the intricacies of growing a property management business.
These three experts shared their experiences, strategies, and insights on various aspects of the industry, from hiring and managing staff to leveraging virtual assistants and maintaining a strong company culture.
You can watch a replay of the conversation here, or simply read on for top takeaways.
Let’s dive in!
The Importance of Personal and Professional Development
To start, the entire team emphasized the significance of personal and professional development. Staying updated with industry trends, attending workshops, and seeking mentorship can provide property managers with the knowledge and skills needed to excel.
Giving back is also highly important. That’s because sharing knowledge and experiences with peers not only helps the industry grow but also fosters a sense of community and collaboration.
Actionable Advice:
Attend Industry Conferences: Participate in events like the National Association of Residential Property Managers (NARPM) conferences to network and learn from industry leaders.
Join Professional Groups: Engage with online forums and local property management groups to exchange ideas and best practices.
Mentorship Programs: Seek out or become a mentor to gain new perspectives and insights.
Answering Calls Promptly and Maintaining Urgency
Mike Krause highlighted the importance of answering calls promptly and maintaining a sense of urgency in sales. This approach not only improves customer satisfaction but also increases the likelihood of closing deals.
PMC owners should also make a point to lead by example. Demonstrating a commitment to customer service sets a standard for the entire team.
Actionable Advice:
Implement a Call Tracking System: Use software to monitor and manage incoming calls, ensuring no lead is missed.
Train Staff on Urgency: Conduct regular training sessions to instill the importance of prompt responses and customer prioritization.
Set Response Time Goals: Establish clear benchmarks for response times and track performance against these goals.
Understanding Individual Motivations
Mark Ainley then emphasized the need to understand individual client motivations and align them with business goals. This personalized approach can lead to stronger client relationships and better service delivery. Then, adding value and providing resources can differentiate your services from competitors.
Actionable Advice:
Conduct Client Surveys: Regularly gather feedback to understand client needs and preferences.
Create Resource Libraries: Develop a repository of guides, checklists, and articles that address common client concerns.
Personalized Communication: Tailor your communication to address specific client motivations and pain points.
Hiring the Right Business Development Manager (BDM)
Before the actual hiring, PMC owners should assess their financial situation to determine the right time to bring on a BDM. Balancing financial stability with growth potential is crucial.
Once it makes financial sense, it’s likely time to make a hire.
Actionable Advice:
Budget Planning: Create a detailed budget that includes the costs associated with hiring and supporting a BDM.
Define Clear Roles: Clearly outline the responsibilities and expectations for the BDM to ensure alignment with business goals.
Performance Metrics: Establish key performance indicators (KPIs) to measure the BDM’s effectiveness and contribution to growth.
Utilizing Virtual Assistants and Appointment Setters
Virtual assistants can handle administrative tasks, allowing the BDM to focus on networking and relationship-building. You should also consider the challenges of managing remote staff and ensuring quality control, though.
If the pros outweigh the cons in your unique situation, consider bringing someone on.
Actionable Advice:
Select Reputable Providers: Choose virtual assistant services with a proven track record in the property management industry.
Clear Communication Channels: Establish robust communication protocols to ensure seamless collaboration with virtual assistants.
Regular Performance Reviews: Conduct periodic reviews to assess the performance and impact of virtual assistants on business operations.
Market-Specific Approaches
Different markets require different approaches. For example, meeting clients in their living rooms in Orlando, catering to accidental landlords in Chicago, and dealing with out-of-state investors in Birmingham. Adapting your strategies to meet the specific needs of each market can enhance client satisfaction and business success.
Actionable Advice:
Market Research: Conduct thorough research to understand the unique characteristics and demands of each market you operate in.
Localized Marketing Campaigns: Develop marketing campaigns that resonate with the local audience and address their specific needs.
Client Segmentation: Segment your client base by market and tailor your services and communication accordingly.
Hiring Strategies and Core Values
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Hiring candidates who align with the company’s core values and possess the right personality traits is crucial for long-term success. Tools like Culture Index, Briggs and Meyer, and StrengthsFinder 2.0 can help identify candidates who are a good fit for the role and the company culture.
Actionable Advice:
Define Core Values: Clearly articulate your company’s core values and incorporate them into the hiring process.
Use Profiling Tools: Implement personality profiling systems to assess candidates’ suitability for the role and cultural fit.
Structured Interviews: Develop a structured interview process that evaluates both technical skills and alignment with core values.
Structuring Pay for Business Development Managers
The panel was essentially in agreement that offering a base salary along with commission or bonuses ensures stability for BDMs while incentivizing performance. Providing administrative support and a structured onboarding process can also facilitate successful transitions and enhance BDM performance.
Actionable Advice:
Competitive Compensation Packages: Design compensation packages that attract and retain top talent while aligning with business goals.
Comprehensive Onboarding: Develop a detailed onboarding program that covers all aspects of the BDM role and provides ongoing support.
Performance-Based Incentives: Implement performance-based incentives to motivate BDMs and drive business growth.
Re-Engaging Prospects
Consistent and timely follow-up is essential for maintaining engagement with potential clients. So, tailoring your communication to address specific client needs and concerns can improve re-engagement efforts.
Actionable Advice:
Automated Follow-Up Systems: Use CRM systems to automate follow-up reminders and ensure no lead is forgotten.
Personalized Content: Develop personalized content that addresses the specific interests and pain points of each prospect.
Regular Check-Ins: Schedule regular check-ins with prospects to maintain engagement and address any concerns.
Online Reputation Management and Company Culture
Actively managing your online reputation can attract prospective employees and clients. Building a strong company culture is then critical in enhancing employee satisfaction and retention.
Actionable Advice:
Monitor Online Reviews: Regularly monitor and respond to online reviews to maintain a positive reputation.
Employee Engagement Programs: Implement programs that promote employee engagement and foster a positive work environment.
Transparent Communication: Maintain open and transparent communication with employees to build trust and loyalty.
Conclusion
Growing a property management business requires a multifaceted approach that encompasses personal and professional development, effective hiring and management strategies, and a strong focus on client needs and market-specific approaches. By implementing the actionable advice and insights shared by these seasoned industry experts, property managers can enhance their operations, build a strong team, and achieve sustainable growth.
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