Working IN vs. ON your business. Where do you stand?

Whether you are handling the rental management on one property or 1,000 properties the same tasks within the business must be handled consistently and with the correct sense of attention for the satisfaction of your tenants.? As portfolios increase in number and the business of managing your rentals grows you must work on several things in your business to maintain the operations and then when these tasks are handled you must switch gears to working ON your business with the goal of increasing customers, revenue, and profit. Have you stopped to do a status check lately?? Are you working more IN your business or ON your business?

Working IN the business means working the day to day operations that keeps your business running.? Managing the office includes all the tasks that are the most important for the management of your rentals.? As the most important part of success for your business, tenant relationships should be maintained at the highest level.? Leasing is ongoing to make sure that you are keeping your rental units occupied.? Rent collection, including methods of collection, drives your revenue.? After controlling revenue, you can turn your attention to the actual management of the rental which includes your maintenance coordination and other duties involved in preserving your property and the satisfaction of your tenants.

Working ON the business means growth which means additional profit.? With so many tools to market your business, a good portion of your time working on the image and footprint of your business is likely done with Social Media Management.? A large presence online on the right platforms and with the right marketing tactics can drive potential customers to your business.?? Attending marketing and networking events can be a huge benefit to find the latest trends, services, and observe what and how your competition is operating within the same industry.? Many times, those services can be used to create additional revenue streams for you and additional services for your customers.

Working in the business and on the business are both parts of your overall success.? No matter what, you will have to work IN the business.? The problem between the two can arise if you don?t make time to work ON the business.? If you are acting as the head of your organization, it makes sense to work in a different capacity in these areas.? The operational success of your business is measured by successfully managing and completing the day to day tasks.? While this is important, the operation of your business sustains you.? It is essential that you are able to take position working IN the business to improve when needed, but not so much that it prevents you from being able to focus on the growth of your business by working ON it.

Are you unsure if you are spending more time IN the business than ON the business?? Here are 5 things that may indicate that you spend your time dominantly in operations and not growth.

  1. You spend most of your day monitoring and answering e-mails and phone calls pertaining to your customers and any daily issues they may have. Without getting new business.
  2. You spend more time dealing with direct tenant inquiries instead of finding new cost-effective ways to serve them to increase your profits
  3. You don?t have time focus on property growth
  4. You spend time outside of the office working on the daily tasks that overflow from the office.
  5. You haven?t had a significant number of new owners added to your portfolio

 

If even 2 or more of these points describe you, you are taking time away from your business that could equal more profit.? The day to day operations of your office can be managed by an office staff that is well trained to promote and represent the ideals of your business.? This prevents you from being in the mix of the daily work and allows you to manage any outstanding issues, not the main operation.? If an office staff doesn?t fit your financial position, there are several options available to assist you.? It is possible to have one person handle many different areas of the office.? This still allows you to manage the person, not the individual processes.? Another option is virtual services.? From answering services, to tenant leasing, to rent collection, and maintenance coordination-there are companies who can work remotely IN your business.? Hiring these businesses is a way you manage working IN the business by choosing a service that allows you time to work ON your business.

Have questions about working in the business vs on the business?? Need help identifying resources that allow you to work ON your business?? Let us know. Schedule a time to chat with us.

The New Normal: Virtual Office-Pro or Con?

2020 has been unexpected in more ways than we can count.  Many companies, for the first time ever, had to figure out how to run their businesses without direct contact with people, including their employees.  While technology has lent itself to working remotely being a viable option for most-a lot of employers prefer to manage their business with their employees in the way they always have-in person.  In the property management industry, managers, owners, and operators faced the obstacle of managing properties without being able to come into contact with their tenants.

With all past experience and present day learning at hand, many questions remain for the future.

How do you run a business when you can?t come within 6 feet of any one person?

How do you monitor your employees and the integrity of your business if you can?t come in contact with those who are running the business?

How does operational excellence come in to play when you go from one operation to many small operations run by your employees?

And, how do you grow your business while managing the outlying factors of a pandemic that has most of the population in a panic?

Constantly changing circumstances have changed the way businesses are managed.  For example, the virtual office has become a more frequently visited option.  Video platforms have become the new meeting rooms.  Residences where families were home maybe 50% of the time were now being occupied 100% of the time.  What implications does this have for your business and what options should you consider for managing properties in pandemic? Here are a few options to consider:

Managed virtual office

Pro:  Creating your own virtual office with your employees has become increasingly realistic.  There are several tools that can be used to stay in constant communication with your employees even up to monitoring their work in real time.  This way, you keep the feel of your office, you are working within the new safety protocols of the current state, and you can run as normal as possible with the right tools in place.

Con:  If you are used to working interactively with your employees, this can be a struggle to find the right methods of communication to keep your employees engaged and productive.  Some micromanagement may be necessary upfront that wasn’t required before.

Outsourcing Administrative Tasks

Pro:  Virtual assistants and similar services have become an attraction option to many property managers and real estate investors and professionals even prior to the COVID-19 Pandemic.  This method decreases payroll and eliminates the need for additional space for personnel which also decreases risk of exposure.  There are many companies that provide virtual assistants and virtual services that can assist with all things in your office such as data entry, accounting tasks, rent collection operations, and much more.

Con:  Outsourcing your office tasks means that personal supervision is not an option.  If your office processes are not clear or constantly changing, it may be hard to get a virtual office service to keep the same atmosphere or culture you have built with your brand.

 

Outsourcing Maintenance Technicians

Pro:  As well as an overall decrease in payroll overhead, outsourcing maintenance to service providers reduces the responsibility and risk of monitoring one person going into the homes of many.  You can determine whether the safety protocols put in place by the service providers you utilize work best for your business and your tenants.

Con:  If you don?t already have a network of vendors in place to handle maintenance, then it may take time to find trustworthy and economical providers that know they are in high demand.

Outsourcing Maintenance Coordination

Pro:  Maintenance can be one of the most expensive and time consuming areas of managing your properties.  There is a lot of upfront work between the service provider and the tenants to complete work and get it done in a cost-effective way that meets tenant expectations.  Outsourcing this task can save time and it can also save money if you find a provider that can manage this part of your business for you in a way where your costs are kept in mind and customer service to your tenants is still a high priority.

Con:  There are many companies that offer maintenance coordination services.  Just as it will take time to coordinate your own maintenance, you will want to take the time needed to identify a provider that works within your business in a way that your tenants don’t even feel that the service has been outsourced and feel like their needs have been taken care of the same way as if you had handled the request personally.

 

 

Overall, the pros of a managed or outsourced virtual office can outweigh the cons if you step outside of the comfort zone of a physical office and really scrutinize the cost and operations savings by doing so.  As a virtual office company since our inception, Abodea has been able to assist many of our customers with solutions that they can use within their office to make the managed virtual office a symbiotic combination of outsourced services and managed processes.  With maintenance coordination being the main service offering when the company was founded, we are able to work within your business as an extension of your business working with your policies and processes just as if we are part of your virtual office team.

If you still have questions on how to create and manage your integrated virtual office, please reach out to us for suggestions on how we can help.