Property managers are always looking for strategies to reduce their operating costs, and one effective way to start is by implementing technology into their business. Managing operations manually often leads to missed or incomplete information, wasting management and staff time as fixes take longer than they should have for items that have deteriorated in the interim.
With the use of property management software, your data can automatically be imported into your database, cutting down on data entry time and eliminating human error.
In this article, we will explore how technology can run a more efficient and cost-effective business.
Lower property management operational costs with technology
The majority of property management companies still use manual systems to manage their properties and residents. While using a paper-based system is still one of the most common methods to do business, it can be time consuming and inefficient.
The main advantage of a paper-based system is that it’s relatively cheap to maintain. However, in the long run, it can end up being more costly than you’d think — especially if you don’t have the right tools for managing your properties.
Minimize employee turnover by automating processes and offering additional assistance
Automated processes help save time on the tasks employees typically have to do manually, such as generating HOA statements, sending out invoices, creating contract agreements and more. With a property management software in place, you can also automate payment processing for utilities, deposits and other common expenses that are typically paid by residents.
Another way to help minimize employee turnover is by offering additional assistance through your property management system's interface. This could mean providing training videos, guides or tutorials so that new hires have a better understanding of internal processes.
Online support options — like live chat or email support — allow users to get answers quickly, without having to wait on hold or wait for a response via email.
Track amenity usage to cut back on costs
You can also use technology in your property management system to track amenities, and then determine which offerings are most beneficial, and which ones should be discontinued.
Property management software can even help you figure out how much to charge based on usage. For example, you can use software to determine how many people are using your clubhouse. If you find that this is being used more than the other amenities, you can increase the fee for use to cover maintenance costs.
Or if you have a gym, you can use software to figure out how and when people are using it. You can then use this information to determine the best hours for your staff members to maintain the gym.
Keeps a comprehensive list of vendors
If you are a property manager, you know how important it is to have a good team of vendors you can trust. You want them to be reliable, efficient and not turn out any substandard work, which can end up being costly with repairs and maintenance. A property management software tool can help your company organize vendors, so that you can keep a current list of best people at all times.
It also allows you to organize your vendors into categories based on the type of work they do, whether it’s plumbing or electrical work or carpet cleaning services. You can then create separate lists for each category and save them for future use. This makes it easy for you to find the right person for the job — without having to look through all your contacts individually every time you need something done in one of your buildings.
Maximize equipment life with updates on preventive maintenance
When you use software to manage your property, you can keep track of all your buildings and ensure they're up to date on their maintenance schedules. You can use your property management software to keep track of all the buildings’ components, annual maintenance inspections, and upcoming replacements to ensure equipment is serviced or replaced according to the manufacturer’s specifications and performance of the equipment.
If you have multiple properties, this makes it easy to coordinate work with your vendors or contractors. You'll know exactly what needs to be done at each location and when.
When a part needs replacing or servicing, with software, it will be easy to schedule and keep track of the status of the repair. This ensures that your building is always in good working order and stays that way for as long as possible. This is especially important for large buildings that have a lot of moving parts.
Keep tabs on inventory to reduce waste
Items that are used for janitorial services and maintenance can take up a lot of space, but they are essential for fulfilling maintenance requests and keeping your property in good condition. Track items on hand to prevent overstocking and wasting budget and space. With proper inventory management, it is easier to utilize what you need and forecast how much to order ahead of time.
As a result, you may be able to reduce employee theft, which is a common problem. Light bulbs, for example, can be taken home easily. As employees become more comfortable taking supplies here and there, inventory will disappear faster than you expect.
Systemize and issue regular notices and expenses
Property management software makes it simple to send regular reminders to residents about important deadlines and due dates.
If a resident has miscellaneous expenses to pay, property management software can help you issue regular invoices and reminders to avoid late payment penalties. Some property management software even includes a feature that automatically generates notices when rent or assessments are due so you don't have to manually enter the data every month.
Automating these processes reduces the amount of time that goes into manually issuing notices. Issuing electronic statements through software can also save money in postage costs. It also helps ensure that all residents receive their notices at the same time and in an easily digestible format. This improves communication between management and residents, which can lead to more satisfied customers who are less likely to skip out on paying their rent or dues.
Stay on top of compliance issues and reduce the cost of insurance claims
The software in your property management system helps you stay on top of compliance issues and reduce the cost of insurance claims. For example, if one of your residents reports a safety hazard at a community, you can track it through your software. This means no more time spent searching through paper files or phone calls back and forth with the resident — just one click of a button will allow you to log the complaint in real-time so you can address it immediately.
In the property management world, regulations and compliance issues can be difficult to keep track of. However, many property management software offers features that make it easy for managers to stay on top of these important issues. For example, an automated record-keeping system ensures that all documents are filed properly so managers don't have to worry about compliance issues when they come up.
One of the most expensive parts of running a property is insurance claims. If someone slips and falls on your property, you could face thousands of dollars in liability damages.
Property management software helps reduce this risk by providing tools that help managers identify potential hazards in advance and fix them before they become problems.
Improve the way you do property management
Cutting costs by using property management software is useful for all property management professionals, regardless of whether their building consists of one unit or a hundred. Not only does it help your property generate additional savings, but it also makes managing properties easier and more efficient by automating processes, increasing employee productivity and streamlining repetitive tasks.
BuildingLink lets you manage every step of the process, from preventative maintenance to inspections and amenity reservations.
Schedule a demo with us to learn more about how we can help you maximize your portfolio’s potential and reduce costs.