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Major benefits of outsourcing property management back office work.
June 21, 2024

Major Benefits of Outsourcing Your Property Management’s Back Office Work


Patricia Arcilla

Patricia is a content writer for STAFFVIRTUAL. She’s been interested in writing since she realized...

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Success in the property management industry will depend on both the internal and external operations of a business. Think of your business as a grand theater production. While it is the actors who command the stage, it’s the production crew that works to ensure the play runs smoothly.

When you Outsource Property Management Back Office Services, it’s like hiring stagehands for sound, light, and set changes. You hire industry experts to help you reduce costs, maintain compliance, and enhance efficiency. 

In this article, you will discover the transformative power of outsourcing back-office operations. We will also talk about its game-changing benefits and some practical advice.

Introduction to Property Management Outsourcing

In property management, every decision impacts business performance, tenant satisfaction, and overall profitability. Hence, outsourcing has emerged as a powerful solution to navigate the industry challenges.

Outsourcing in property management means entrusting various responsibilities and operational tasks to third-party firms so you can focus on core competencies and other strategic priorities. From tenant relations to financial management, outsourcing offers benefits that revolutionize property management.

Outsourcing specific property management functions enhances service quality, simplifies processes, and drives growth. You can enjoy the game-changing potential of outsourcing and reap all the benefits the partnership offers.

Back Office Vs. Front Office Work in Property Management: What’s The Difference?

Understanding the distinction between front and back office operations in property management is crucial for understanding their impact on a company’s performance.

Front Office Functions

  • Customer-Facing Tasks: Front office tasks involve direct interactions with tenants, clients, and customers. It includes managing tenant relations, conducting property inspections, and handling inquiries.
  • Customer Service: This is another crucial front office function. Customer service entails handling maintenance requests, addressing tenant concerns, and ensuring tenant satisfaction.
  • Marketing and Leasing: This aspect involves overseeing leasing activities. It includes conducting screenings, facilitating move-ins and move-outs, and advertising vacancies.

Back Office Functions

  • Systems and Processes: Back office employees develop and execute processes and systems to improve efficiency. Moreover, they streamline operations and ensure industry regulatory compliance.
  • Administrative Tasks: These support the smooth operations of the business, including bookkeeping, rent collection, accounting, and financial reporting.
  • Data Management: This concerns the precise documentation of contracts, leases, and financial transactions. It involves document management for vendor agreements, insurance claims, and regulatory compliance.

While front-office work primarily focuses on tenant satisfaction and client interaction, back-office work ensures the smooth operations of the business. Both functions are integral to the success of the company.

What Can Be Outsourced? Typical Back Office Tasks To Consider 

Outsourcing back-office tasks is a strategic move for property management companies. It can be the best option if you are looking for effectiveness and specific knowledge. Here are five typical back-office tasks that are commonly outsourced:

Bookkeeping and Accounting

Accounting and bookkeeping are two of the most outsourced tasks in property management. These include managing tax compliance, handling financial records, and preparing financial reports. Keeping your books and finances updated helps you make better business decisions.

Administrative Tasks

Administrative tasks are the daily tasks necessary for a successful property management business. These functions encompass data entry, email management, appointment scheduling, and phone call answering. Outsourcing these routine tasks can free up a significant amount of your time.

The Philippines is one of the top business process outsourcing destinations, including for back-office functions. In fact, Exploding Topics reports that 9% of the country’s GDP comes from BPO. That’s how trusted and popular it is to offshore admin and specialized tasks.

Marketing and Sales

Promoting and advertising rental properties increases occupancy rates and attracts new tenants. This is what marketing and sales refers to. It includes leasing negotiations, social media account management, campaign creation, and marketing strategy development. Outsourcing this function can be cheaper compared to setting up an in-house team.

Property Maintenance and Repairs

Property maintenance entails coordinating repairs and scheduling regular checking of properties. It ensures the properties remain habitable, safe, and attractive to prospective tenants. These are also routine tasks that would be better if outsourced. Repairs and maintenance requests are crucial in tenant satisfaction and retention. They can come in at any time of the day, so it’s better to have an outsourced team available 24/7.

Tenant and Owner Communication

Effective tenant communication entails prompt responses to requests, concerns, and inquiries. This aspect also covers tenant retention, customer service, and conflict resolution. Outsourcing professionals are experts in these areas. They are well-suited to handle the different communication needs of your company.

8 Major Benefits to Outsourcing Property Management Work

Property management companies outsource back office work to reduce costs and improve efficiency. Below are eight major benefits outsourcing can offer:

  1. Cost Savings

Outsourcing property management tasks can translate to substantial cost savings. It reduces overhead expenses associated with maintaining and hiring in-house employees. Property management companies use outsourcing to cut overhead costs like office space, employee perks, and training. You will just be paying for the services you need.

  1. Competitive Advantage

Outsourcing the back office to a reputable partner can ensure consistent, high-quality service. Efficient operations set you apart from your competitors in the property management industry. Additionally, this helps you draw in more customers.

  1. Scalability

Property management firms can easily adapt their resources to unanticipated demand fluctuations. Outsourcing offers flexibility to support business growth by simplifying operations during slow periods and expanding during peak seasons. You can scale your outsourced teams up or down to meet changing needs.

  1. Service Quality

When you outsource jobs, you get access to expertise, specialized resources, and knowledge. By leveraging the skills and expertise of these trained professionals, you can enhance tenant satisfaction, service delivery, and overall business performance. 

  1. Core Competencies

Outsourcing back-office functions allows you to focus your time and resources on core functions. These include investor relations, property acquisition, and portfolio management, which lead to growth.

  1. Risk Mitigation

Property management can involve various risks. These could include property maintenance challenges, legal compliance issues, and tenant disputes. Outsourcing can help mitigate these risks and protect the best interest of your business. Reputable outsourcing companies already have proven risk management strategies in place. Thus, they can avoid property damage, regulatory penalties, and costly litigation.

  1. Global Reach

Outsourcing property management tasks provides easy access to a global network of expertise and resources. This is especially helpful if you want to expand into new markets or manage properties in different locations. Outsourcing can also help you navigate market dynamics, cultural nuances, and regulatory requirements.

  1. Regulatory Compliance

Property management involves navigating complex state, local, and federal regulations governing property maintenance standards, fair housing, and landlord-tenant law. Outsourcing providers often specialize in compliance. They make sure the company abides by all applicable laws and regulations.

3 Tips for Choosing the Right Outsourcing Partner

Choosing the right outsourcing partner is like trying to fit the last puzzle piece into place. They complete the whole picture that can take your business to the next level. It makes the difference between just surviving and thriving in the cutthroat world of property management. Below are some helpful tips to keep in mind when looking for the best outsourcing ally:

Define Your Goals

Setting clear objectives is the first step in an efficient selection process. Getting help and advice from managers in relevant departments, such as IT and HR, will be a good idea. It is also recommended that you set specific goals rather than general ones. Case in point: set a goal to “increase performance metric by 90%” instead of just saying “boost our performance” or “increase our revenue.”

Choose a Trusted Partner

Go for a partner who has been in the industry for many years. Experienced providers have established their standards and credibility in the industry. You can narrow down your options by asking the following questions to potential outsourcing partners:

  • How many years have they been in business?
  • What projects have they worked on?
  • When was the last time they have worked on tasks and projects that are similar to yours?
  • How many employees or offices do they have?

Pay Attention to Communication

Arrange a meeting with the provider to discuss how you can effectively work together. Initial contacts can give you a good idea of the type of collaboration and business relationship you might have. If you are considering offshore outsourcing, keep in mind the time difference and language barriers. Make sure your chosen partner also has a good understanding of your working culture. You can then make appropriate plans for resolving your disputes.

Remember that outsourcing is a long-term commitment that can affect your company’s success in the future. So choose an outsourcing provider that aligns with your vision, goals, and values. Together, you can drive innovation, unlock new possibilities, and achieve unprecedented success.

Enhance Your Property Management with Expert Outsourcing

If you want to optimize your back office work, save on operational costs, and scale your business, entrust your back office needs to us. At STAFFVIRTUAL, we provide tailored solutions for your unique business needs. We pride ourselves in providing world-class service that maximizes your investment. With a track record of happy and satisfied clients, you can trust that we’ll improve your back-office work.

Revolutionize your property management strategy with STAFFVIRTUAL. Together, we will boost profitability, elevate efficiency, and unlock new levels of success. Don’t settle for mediocrity! Book an intro call with us today and be a step closer to dominating the property management industry!


What Kind of Outsourcing Can Help You Scale Your Business? | Inc. Magazine

How Accurate Financial Reporting Elevates Your Property Management Game | OJO Bookkeeping

Hotel front desk guide and checklist: Front office responsibilities | Little Hotelier

9 Stats that Show the Property Management Customer Experience Gap Is Real | AppFolio

47 New Outsourcing Statistics (2024-2027) | Exploding Topics

Landlord-Tenant Law | FindLaw

Enhancing Customer Experience In Property Management Through Effective Communication | Forbes