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In the business landscape, many have embraced one smart strategy – outsourcing. A 2022 Clutch survey revealed that 83% of small businesses plan to maintain or increase their budget for outsourced services. Outsourcing has also become the go-to option for property managers looking for efficient solutions.
If you want to Outsource Property Management Back Office Services, you’ve come to the right place. Here, we will outline the key factors you should consider before you outsource. Our aim is to help you make informed decisions that will lead to business success.
At its core, back office outsourcing is the practice of delegating tasks. It involves assigning your company’s non-core business functions to a third-party service provider. Data entry, bookkeeping and accounting, and administrative tasks are some examples of non-core tasks.
Once you decide to outsource, make sure you partner with the best outsourcing company available. Choose one that has the resources and expertise that your business requires. With that in mind, you have the option to outsource some or all functions, depending on your preferences.
Your chosen provider assumes the responsibility to complete the delegated tasks. It will then allow you to focus on strategic business functions.
In the property management space, firms outsource various functions to improve operations. Some of the commonly outsourced functions include:
This function involves the maintenance of property-related documents such as agreements, correspondence, and leases.
Outsourcing document management ensures you get easy access to important documents and information. At the same time, it improves your document management processes. When you delegate these tasks to experts, you keep your records and documents updated and organized.
Financial management functions need specialized expertise because they involve intricate processes. These include budgeting, financial reporting, bookkeeping, and tax preparation. Hiring experts guarantees that your financial records are accurate and compliant with regulations.
Repair and maintenance coordination involves dealing with contractors and suppliers. This aspect impacts tenant satisfaction and retention. Delegating this function also helps you address tenant requests right away. At the same time, it keeps your properties safe and attractive to current and prospective tenants.
Managing leases and renewals can be tedious and time-consuming. It covers compliance monitoring, lease drafting, and renewal negotiations. Having a dedicated team focused on this area increases renewal and retention. As a result, they help boost your occupancy rates.
Property management companies are required to be compliant with local regulations and laws. That’s why finding a provider that adheres to industry standards is crucial. Assigning legal compliance tasks to them spares you from potential legal liabilities.
Below are some of the exciting outsourcing benefits you can’t afford to miss:
Outsourcing gives you access to specialized expertise. This includes tenant screening, legal compliance, and accounting. Outsourcing specialists are experts in their fields. They also have significant experience in the industry. Their credentials ensure they deliver effective and high-quality service at all times.
Case in point: You can outsource legal compliance to experts in property law. Their expertise can help ensure your business complies with local laws and regulations.
Delegating tasks gives you more time to focus on core activities that drive business growth and revenue. Core activities include strategic planning, tenant acquisition, and property maintenance. Undivided focus on key functions can help set your business up for success.
Case in point: Outsourcing repetitive tasks gives you more time to focus on core responsibilities. These include strategic planning and expanding your portfolio.
One of the most enticing benefits of back office outsourcing is cost savings. When you outsource, you eliminate expenses associated with hiring in-house employees. It also reduces operational overheads like extra office space, equipment, and software. This strategic solution allows you to redirect your resources to income-generating activities.
Case in point: Many property management companies outsource their financial functions. They do this to save on the costs of maintaining an in-house accounting team.
Working with an outsourcing partner gives you the option to scale your operations as you deem fit. This means you can change your outsourcing setup to accommodate operational expansions or reductions. With outsourcing, you won’t have to worry about long-term commitments.
Case in point: When your business experiences rapid growth, you can outsource routine business functions to keep up with the expansion. Essentially, when you outsource, you can scale up or down depending on your business needs.
Most third-party service providers offer round-the-clock coverage and support. This gives you access to the support and services you need at the drop of a hat. Outsourcing is also ideal for companies that operate in different regions or time zones.
Case in point: Customer service or tenant communications usually require continuous support. Delegating customer service allows you to provide 24/7 support. This means your tenants can report repairs and maintenance problems anytime.
If you are unsure when you should outsource, here are key factors you should consider:
To ensure outsourcing success, it is recommended that you prepare accordingly. For starters, you need to clearly define your outsourcing goals and expectations. When your goals and expectations are clear, your potential provider can create a strategic plan that aligns with them.
Before choosing an outsourcing partner, you need to conduct diligent research. It would be ideal to partner with a provider that can cater to your specific property management needs. Assess your prospects based on experience, expertise, and reputation.
You can also request case studies and references to gauge past performance. Furthermore, consider other important factors like cultural fit and communication capabilities. Finally, establish your metrics and key performance indicators (KPIs). This helps measure the efficiency and effectiveness of the partnership.
Choosing the right outsourcing provider can be tricky. Simplify the selection process by keeping the following key factors in mind:
Once you have shortlisted three to five candidates, assess their expertise. Start by looking into their:
Property management firms should deliver world-class service consistently to stay ahead. That said, you need to check the market reputation of your potential service provider. Verify their credibility and reliability before signing on the dotted line. This ensures you can deliver exceptional service at all times.
In today’s internet-connected world, background checking is a breeze. The general rule of thumb is to pick a partner with a great reputation. More importantly, they must have a track record of success in your industry.
You need to decide on the amount you are willing to invest. While cost is a significant element, it should not be the only deciding factor. It also pays to remember that if you expect excellent service, you should be willing to pay more.
It would be ideal to opt for a partner who offers flexibility. They should be capable of keeping up with any urgent requirements. This is especially important when you and your chosen partner have different time zones.
When outsourcing back office tasks, one thing is certain: you can produce exceptional outcomes with the right partner. If you are ready to revolutionize your operations, we are here to help. STAFFVIRTUAL can take care of your routine tasks so you can focus on what matters most — your business success and growth!
To maximize efficiency and profitability, we will tailor our solutions based on your needs. Our skilled experts will deliver world-class service at a competitive rate. Take your business to the next level with STAFFVIRTUAL. Schedule a free intro call with us today!
Sources:
Clutch Report Uncovers the Surge of Small Business Outsourcing | Clutch
Back Office: What It Means in Business | Investopedia
Top 9 Functions of Financial Management | Hero Vired
Outsourcing – Learn About the Advantages and Disadvantages | Corporate Finance Institute
Property Management: Definition, Roles, Types, and Duties | Investopedia
Key Advantages of Outsourcing Your Property Management’s Back Office Services | MicroStartups
Outsourcing Your Back Office Tasks and Its Top 5 Benefits to Your Business | Maxicus