June 28, 2024
How to Identify When Your Property Management Firm Needs Outsourced Back Office Services
Patricia Arcilla
Patricia is a content writer for STAFFVIRTUAL. She’s been interested in writing since she realized...
Here are two questions for you. 1.) Are you struggling to keep up with your property management firm’s daily administrative tasks? 2.) Do you think you’re losing significant time to grow your business?
If you answer yes to any of the questions, then now’s the right time to consider outsourcing. To further prove our point, a Zego study showed how much time we waste on antiquated back-office responsibilities. They noted property management employees squander around 156 hours each month.
These are just a few of the many reasons why you need to Outsource Property Management Back Office Services. While it is advantageous in itself, choosing the right partner will help you keep up with the dynamic market. Our blog will give you insights on what back-office services you should get when to avail of them, and who to choose for your business to improve.
What is Business Process Outsourcing?
Business process outsourcing, or BPO, is the process of partnering with an external company to handle business tasks and deliverables.
Back office needs such as marketing, accounting, and administrative tasks are some examples of functions that can be outsourced. This starts when a business establishes that it can benefit from outsourcing.
In property management, Forbes notes that outsourcing helps to add value to your company’s assets. Whether you want to cut costs, control your operations, or improve your customer experience, choosing the right service(s) will bring more benefits to your business.
What Are Back Office Services in Property Management?
BPOs can straighten out property management operations by assisting their processes with back-office services. You can maintain your properties well, starting with basic duties like:
- tenant screening
- regular financial compliance
- vendor and technology management
Consistent maintenance coordination, contract renewals, and record-keeping of properties are also some of the key back-office services that will improve the tenant experience. This will eventually lead to creating regular reports on financial performance, tenant demographics, and other key metrics that will help with adjustments and strategies to improve your property.
So, outsourcing these back-office tasks is vital for the smooth operation of property management firms. It allows the front office to focus on customer-facing activities and new business development.
10 Signs Your Property Management Firm Needs To Outsource
Now that you know about BPO and the possible services that a partner may offer to your property management firm, it’s time to check on the indications that you need an outsourced team for your back-office needs:
- Overwhelmed Staff
If your team is continuously overworked and unable to keep up with their tasks, it’s time to outsource. For example, a property manager drowning in paperwork could outsource administrative tasks to focus more on tenant relations. This will not only address inefficiencies but also prevent burnout.
- Time Consumed on Non-Core Activities
Spending too much time on administrative duties is a glaring sign that you should outsource your back-office operations. It will help your team refocus their efforts on income-generating tasks. Always remember that in the property management industry, time lost is money lost.
- Errors and Compliance Issues
Frequent mistakes or compliance breaches are a clear sign that your business needs specialized expertise. Outsourced experts can ensure accuracy and adherence to regulations. They know how to navigate through the industry’s different and complex legal processes, saving you both time and resources.
- Inconsistent Tenant Service
A great customer experience can go a long way for businesses. If responding to tenant queries becomes a challenge, outsourcing customer service is the best solution. It can provide consistency in feedback and improve responsiveness for tenant satisfaction.
- Outdated Technology
Property management software improves your business flow and helps you overcome daily obstacles. If your firm lacks the latest property management software or technology, outsourcing to a provider with cutting-edge tools can enhance efficiency. Access to advanced technology also contributes to better tenant communication.
- Scalability Challenges
Acquiring more properties entails more work as well. If your business is growing and you find it difficult to scale operations quickly, outsourcing can provide the flexibility you need without long-term commitments. Let’s face it, you won’t always find the talent that you need inside your organization. That’s one thing outsourcing can help you with. Providers have a wide pool of talent that can start working for you as soon as you partner with them.
- High Employee Turnover
High employee turnover can disrupt operations and impact service quality. Outsourcing certain functions can provide stability and reduce dependency on in-house staff. Plus, you won’t have to deal with the time-consuming task of hiring and training in-house employees.
- Need for Advanced Expertise
Growing your firm requires having a wide range of skills and in-depth knowledge. As business expands, there’s a possibility of having more tasks that require specific skills (e.g., records and financial papers). For complex areas like advanced bookkeeping or legal compliance, the specialized knowledge of outsourcing firms can be invaluable.
- Expansion into New Markets
Entering new geographical markets can be smoother with the support of local outsourcing partners who understand the regional nuances while you expand your properties in different locations. For instance, you want to expand your business to the Philippines. Rather than hiring in-house employees, it’s more sensible to outsource to the Philippines.
- Minimize Downtime Through 24/7 Service
Downtime often causes backlogs and delayed responses, which can impact the customer experience. Providing round-the-clock service can be challenging and expensive with an in-house team. Outsourcing can offer 24/7 support without the need to manage many shifts.
5 Key Benefits of Outsourcing Back Office Services
After recognizing the signs that you need to outsource back office services, your property management business is now ready to experience its advantages. Here are five main benefits:
- Cost savings: You can reduce the costs of hiring, training, and keeping an in-house team by a large amount when you outsource. For example, you don’t have to pay salaries and benefits for a full-time accounting staff. Instead, you can pay for expert services as you go, which lowers your overhead costs.
- Efficiency: Outsourced teams can do back-office work faster and more accurately because they have access to specialized knowledge and cutting-edge technologies. For example, a company that specializes in property management software can do your accounting and reports faster. This is more efficient compared to a team of people who work for you but have to do many things at once.
- Ability to grow: When you outsource, you can change the size of your operations based on your business needs. You don’t need to make big capital investments or have long-term staffing obligations. An outsourcing partner can change the level of service to make sure your back office keeps up with your needs as your property collection grows.
- Focus on critical business tasks: Your in-house team can focus on improving tenant relations and property maintenance when they hand off routine back-office tasks. These directly affect tenant happiness and retention. With this change in strategy, you can put your resources to work where they will make the most money.
- Standard compliance: Outsourcing companies are trained to follow rules and industry standards. They decrease the risk of mistakes and legal problems. A reliable outsourcing partner upholds strict compliance standards and stays up-to-date on changes to the law. This way, your activities will always be in line with the latest changes.
What Your Property Management Firm Should Look For In a BPO Partner
There are things to consider when choosing a business process outsourcing (BPO) partner for your property management company. While it’s easier to go with whoever offers the cheapest option, it’s not as simple as that.
To begin, look for a partner who has experience and knowledge in managing properties. They should know the specific problems and rules of your industry. They can work with your business easily and give you customized services that make you more efficient and compliant.
Also, look at their image and how reliable they are. Read client reviews and case studies to see how well they’ve done in the past. Business.com says platforms like Clutch are excellent places to check past clients’ reviews. Experienced providers offer strategic plans that help their clients thrive in their industry. A good BPO partner should have:
- strong data protection measures,
- clear ways of communicating, and
- a great organizational culture.
Your relationship with them will also depend on how well they can adapt to new technologies and change their services to meet the needs of your business. It’s not just about outsourcing tasks when you choose the right BPO partner. It’s also about making your company better able to grow and gain a competitive advantage.
Choose STAFFVIRTUAL For Your Property Management Needs
Your property management company needs the beneficial expertise of business process outsourcing. You have to first determine the challenges in any aspect of your business that generally affect tenant relationships. As long as you carefully choose a strategic partner, like STAFFVIRTUAL, who can offer back-office services, streamline your operations, and improve tenant relations, you will definitely get your business back on track.
If you’re looking for a reputable vendor who can offer back-office services, STAFFVIRTUAL is here to help! We take repetitive tasks off your shoulders so you can focus on increasing your profit. Our skilled back office professionals can meet your needs and provide excellent service. Schedule a free intro call today and start your outsourcing journey today!
Sources:
Property Management Operations Report 2023 | Zego
Outsourced Property Management To Streamline Portfolios | Forbes