In 2022, the property management industry went through a big recovery period. As everyone is just catching their breath, we hear about recession warnings for 2023. To help our clients further recession-proof their excellent strategies for 2023, we recommend nurturing the following trends that emerged last year.
With tighter belts over the past three years, property managers are running smaller budgets with significantly greater pressures. The management software you have chosen and how you are leveraging it will enable you to maximise efficiencies, both operationally and financially.
Essential Cloud-based Software
“It’s in the cloud” has grown from a nicety to an essential business tool. Remote working and real-time needs for all roleplayers, information access optimisation, workflow visibility and efficiencies all require your business to be cloud-based.
The Benefits Of Tech
Trustees, investors and tenants all prefer a more tech-enabled service, which will give you further benefits such as:
- A stronger, more profitable operation
- Greater transparency
- Easier communication
- Stronger relationships
- A lower business risk
Being fully tech-enabled will improve your ability to manage and scale your business. Integrate utility billing reports and invoicing, bank integration, analytics and reporting, online meetings, tenant screening and property maintenance and inspection. Your software should be able to manage and integrate all of these as a minimum requirement.
The POPI Act
Sectional title trustees, HOA directors, property owners, and their property managers must be ahead of deadlines and proactive in complying with legislation in accumulating, storing and applying personal information. Enabling this with technology will reduce the risk of things falling through the cracks.
Years 2021 and 2022 saw a spike in bad debt of rent and levies. Proactively managing arrears and bad debt is far more effective when technically enabled; however, more importantly, it will be necessary for property managers to be creative with establishing mutually beneficial payment arrangements.
Online meetings are the future. All roleplayers will benefit from time-saving and convenience, which means more owners attending meetings and participating in online voting. Meetings are easier to keep short, structured and efficient when held online.
Leveraging Property Portfolios
If there is one thing that businesses have learnt over the past few years, it is that most businesses are vulnerable to the unexpected. A small percentage will benefit from such events, but the majority need contingency plans for protecting revenue streams, service offerings, bad debt levels and customer service.
Property managers can boost resilience, for example, by adding short-term and long-term rental asset management to their property portfolio. Property management software that supports your strategic development and contingency plans would be a value-add so that you don’t have to scramble when already in difficulties.
Legal Document Management
Pressure on already-stressed margins will not abate during 2023, and legal compliance pressures will continue as well. Reviewing, adapting, and managing legal documents such as business agreements, collaboration understandings, management or rental contracts, policies, and compliance documents will keep surprises at bay and reduce your risk levels.
Call us for utility management efficiencies today!