Marsy is a content writer for STAFFVIRTUAL. She’s been a dedicated SEO content writer since 2012, ...
Do back office functions distract you from your core tasks? If the answer is yes, then it’s time to ask yourself an important question: Should I outsource it? While non-core functions are integral to the success of your property management business, it shouldn’t take up all of your time and resources.
Over time, many have turned to outsourcing to propel their businesses forward. According to a Clutch survey, many small businesses have chosen to delegate non-core functions. Some of the commonly outsourced services include design (21%), IT services (22%), and marketing (27%).
In this article, we will cover how to Outsource Property Management Back Office Services. We will also share insights that will help you maximize the benefits it offers. In addition, you will also learn valuable tips on finding the best outsourcing partner.
Small and medium-sized property management businesses are now using more strategic solutions to get ahead. For starters, many have turned to outsourcing to give them that competitive edge. Let’s explore some of the reasons why they have embraced this powerful strategy:
Managing an in-house back office team can be costly. It comes with overhead costs like equipment, benefits, and salaries. Since most small and medium sized companies have tight budgets, these expenses can add up quickly and impact profitability.
Outsourcing back office operations gives you access to cost-effective and tailored solutions. Reducing expenses can free up capital that you can redirect to other business initiatives.
Pro Tip: Consider outsourcing if managing overhead costs is challenging for you. Seek external help with payroll, accounting, and other administrative tasks. This gives you extra money that you can invest in other areas of your business.
Since property management is dynamic, workloads can change drastically. To thrive, you need to be able to keep up with these changes. Scaling your internal back office team up or down is expensive and complicated. With outsourcing, you can make adjustments without needing to hire or lay off employees.
Pro Tip: If your small company experiences accelerated growth, outsourcing is an option you should look into. Consider delegating administrative tasks to third-party providers. This savvy move allows you to scale your operations and keep up with the increasing workload.
Staying competitive requires innovative solutions and cutting-edge technology. Outsourcing providers use advanced technology to enhance efficiency and simplify processes. They also help improve service delivery and quality.
Pro Tip: Records are easier to access and update using property management software. However, purchasing them can be expensive. The solution? You can turn to outsourcing since service providers leverage modern tools to make their processes efficient and effective.
Managing back office operations is not only tedious, it is also time-consuming. Without external help, you won’t have enough time for important functions like business development, tenant relations, and property maintenance. Outsourcing frees up time and resources so you can focus on revenue-generating activities that can boost business growth and profitability.
Pro Tip: If you are drowning in admin tasks, tap a reliable outsourcing partner. It allows you to commit more time and resources to enhancing key tasks like tenant satisfaction. While doing this, you can also focus on other aspects like acquiring new properties.
Below are some of the typical back office services you can delegate as well as the benefits of outsourcing them:
This function covers complex processes like screening potential tenants and conducting background checks. Outsourcing them simplifies the leasing process. It also ensures your properties remain safe and you keep problematic tenants at bay.
Administrative tasks like correspondence and data entry are repetitive and time-consuming. Taking them off your daily tasks gives you more time to focus on core business functions. You can divert your attention towards income-generating tasks instead of paperwork.
It’s typical for property managers to outsource financial tasks. After all, it eliminates the need to hire an internal team, which can be expensive for small and medium-sized businesses. More importantly, delegating financial tasks to third party vendors ensures compliance, timeliness, and accuracy.
Lease administration involves tasks like rent collection, lease abstracting, and renewal management. Delegating them to specialized providers can guarantee timely rent payments. Meanwhile, they can also ensure accurate lease documentation and proactive lease management.
This task covers obtaining quotes, scheduling service calls, and overseeing vendors. Companies hire dedicated teams for cost-effective and timely solutions. It minimizes administrative burdens and prevents costly repairs.
Businesses choose to outsource this since service providers usually offer round-the-clock support. Outsourcing helps ensure all tenant inquiries or requests are addressed promptly.
Like any other business strategy, outsourcing comes with a cost. Factors that can affect task complexity, scope, and the required level of expertise. Here’s a detailed breakdown of the cost of outsourcing property management services:
Depending on your business needs, you can outsource specific tasks, like leasing administration or accounting. You also have the option to choose comprehensive solutions that include different services. Of course, the total cost will increase the more services you avail of.
Expertise and specialized knowledge often come at a premium. Fortunately, the help you get from experts is always worth the investment. Some examples of complex tasks that can be delegated include strategic planning, financial analysis, and legal compliance.
Comprehensive industry knowledge allows service providers to charge more for their services. These experts have also mastered local market dynamics and regulations. Since their expertise leads to better outcomes, you will get a massive return on your investment.
The benefits outsourcing offers are aplenty. Some of the most enticing include:
When you outsource admin tasks, you will have more time to spend on core competencies. Core functions include property acquisition and tenant relationships. Entrusting mundane tasks also allows the internal team to commit to growth-driven activities.
Outsourcing enables companies to access resources and specialized skills without an in-house team. It also helps reduce overhead costs, as you won’t have to spend money on training, benefits, or office space.
When you partner with a trusted service provider, you lessen the risk of errors and non-compliance. Outsourcing providers also have contingency plans in place to protect you against business disruptions.
Service providers have tools, technologies, and processes that enhance service quality. You can prevent manual errors by using cloud-based tools or AI-powered solutions. In general, this improves tenant experience and service quality.
Look for the following essential traits when selecting an outsourcing service provider:
While cost is a significant consideration, it would be best to focus more on quality when deciding who to partner with. That said, pick a provider that delivers exceptional service at a competitive price.
Your chosen provider should have a successful track record. They should also be a good fit for your specific market or niche. Moreover, it would be ideal if your chosen partner has an extensive experience in the industry. This proves that they can handle any challenges they encounter.
Be diligent when doing your research, and know the potential provider’s reputation. Review references, client testimonials, and case studies to assess their professionalism and dependability.
The right outsourcing provider leverages technology to improve communication and processes. Pick a vendor that can meet your specific requirements and offer reliable management tools that you can tap into.
Property management entails navigating various legal requirements and regulations. Your chosen provider must be well-versed in local laws and regulations. This proficiency helps in mitigating risks and ensuring compliance.
Properties have varying requirements. The most suitable provider can offer tailored solutions to meet your specific needs. They should also be flexible enough to accommodate your changing business requirements.
Preventive maintenance helps preserve the value of your property. When a property is in good condition, it boosts tenant satisfaction. The best provider should have proactive maintenance protocols to ensure issues are resolved quickly before they escalate.
Open communication is a crucial element of any successful outsourcing partnership. An outsourcing partner with a robust communication channel should be the standard. Ensure they are responsive to the concerns and queries of your tenants.
There are many reasons why small and medium-sized businesses should consider outsourcing. It can be because of overwhelming administrative tasks or the demands of a growing portfolio. Whatever your reason, this is a business strategy worth investing in.
If you’re looking for a reliable and experienced provider, we a’re here to help! At STAFFVIRTUAL, we provide comprehensive outsourcing solutions tailored to your unique needs. We can help businesses of all sizes with our 15 years of experience in the industry. Our team has the expertise you need for your property management tasks.
Ready to maximize your profitability and productivity? Schedule a free consultation call with us today!
Sources:
Outsourcing: How It Works in Business, With Examples | Investopedia
Small Business Outsourcing Statistics in 2019 | Clutch
Property Management 101: Everything you need to know | CJ Hole
7 Ways Property Managers Can Streamline Back-Office Operations | Globest
Financial Implications of Outsourcing Property Management | Finance Monthly
How to Determine Your Outsourcing Cost | Zen Business
10 Small Business Functions That Can Be Easily Outsourced | US SBA
An Entrepreneur’s Guide to Outsourcing | US Chamber of Commerce