Your property management portfolio is growing, and you’re starting to see your hard work pay off in the form of good profits. However, despite the success, you’re starting to feel stretched thin and can’t help but notice that things are bursting through the seams. Sound familiar?
Even the most dedicated property manager can find themselves struggling when they have more than a handful of properties in their property management portfolio. However, by implementing the right strategies, you can keep everything from spiralling into chaos. In this guide, we’ve put together proven strategies on how to manage a large property portfolio efficiently and keep those profits streaming in.
Table of contents
1. Stay organised
It should go without saying that the key on how to manage a large property portfolio efficiently is keeping everything in order. After all, you wouldn’t want to spend hours going through mountains of paperwork or scrolling through documents on your computer to find what you need to get work done.
Invest in property management software like RentalReady to help you keep track of your leases, maintenance schedules, financial records, and tenant communications all in one place. This helps you buy back your time and invest it in tasks that drive business impact. Plus, you’ll be amazed at just how much human error you can avoid by going digital.
To take organization a step further, categorize your properties and information associated with them by location, type, or even the stage of their management; that is, whether the property is under renovation, ready to rent or anything in between. That way, you’ll always pull the information you need out of your records quickly and get things done faster.
2. Delegate and outsource
Let’s be honest; you can’t be everywhere at once. Therefore, trying to handle everything on your own will not only leave you burnt out but also lead to you not getting things done properly. Here are two things that top our list on how to manage a large property portfolio.
Hire skilled professionals
If you’re managing several properties, hiring skilled property managers can help you take a lot off your plate. They can handle tenant relations, maintenance requests, and rent collection and ensure everything runs smoothly while you focus more on strategic decisions that will move your business forward. Not great with numbers? Outsource your accounting tasks or simply hire someone who will take care of your finances for you. Growing your team or outsourcing tasks to service providers goes a long way in helping you become more efficient.
Build a reliable network of service providers.
Whether there’s an emergency or it’s simple for routine maintenance, you need plumbers, electricians, cleaners, and handymen you can trust to get the job done right if your in-house team is overwhelmed or if you don’t have one at all. Outsourcing these tasks to reliable contractors will help ensure things get done quickly and professionally when the need arises.
3. Use technology
One of the best ways to become more efficient when looking at how to manage a large property portfolio is deploying property management software into your business. The right platforms offer smart automation tools that make it easy to simplify administration, payments, invoicing, and processing, as well as, in the case of short-term rentals, guest communication.
Technology can help you:
- Set up automatic rent payments and send reminders to guests when it’s due.
- Enable tenants to send maintenance requests online while allowing you to delegate maintenance tasks and keep track of them as they happen.
- Schedule cleaning between guests for your vacation rentals and manage bookings with ease.
Some platforms also offer task management tools, a full suite of revenue management tools, a unified inbox that puts all your messaging in one inbox and a platform for owners to simplify your monthly reporting.
4. Keep track of your finances
When looking at how to manage a large property portfolio, it’s easy to get lost in the numbers or overlook them altogether. That’s why we can’t stress enough on how important it is to keep a sharp eye on your budget when looking at how to manage a large property portfolio. After all, without careful management, your expenses can easily outpace your income and turn your once profitable business into a not-so-successful one.
Note down your expenses
Break down your income and expenses by property and keep track of all rent payments, maintenance costs, utility bills, and property taxes. Having a clear picture of your finances will give you a clear picture of what’s profitable and what isn’t and allow you to allocate a budget to each property.
Plan for emergencies
Those major roof leaks, AC unit breakdowns, electrical system failures and everything in between usually occur when you least expect them to. Therefore, setting aside a maintenance fund for unexpected repairs will go a long way in keeping you from scrambling when everything goes wrong.
5. Conduct regular inspections
Speaking of repairs, when you’re exploring how to manage a large property portfolio, one of the best ways to stay ahead of them is by conducting regular property inspections. Why? By keeping a close eye on the condition of your property, it becomes easier for you to detect issues before they become major repairs that cost thousands to fix.
Schedule inspections every six months or at least once a year for each property, and make sure you are on the lookout for leaks, signs of wear and tear, or anything that might need fixing. When tenants move out, take advantage of the empty space to inspect thoroughly. You may even be surprised to find damage that the previous tenant never reported and fix it before the next tenant moves in.
6. Prioritize tenant satisfaction
Happy tenants equal maximum occupancy rates and a steady income in every successful property manager’s books. Therefore, when looking at how to manage a large property portfolio, you would want to prioritize tenant satisfaction. This means keeping up with their needs so that they stick around longer while you avoid vacancies.
- Make sure your tenants know how to reach you and respond quickly to inquiries or maintenance requests.
- Ensure your tenants have a habitable place to live and make their lives easier by automating rent collection.
- Use your property management software to automate lease renewals and send satisfaction surveys to see what you’re doing right and what you can do better.
7. Manage your risks
The last thing you need is a lawsuit on your back or a legal dispute that eats into your profits. Therefore, it’s important for you to seriously consider risks when exploring how to manage a large property portfolio and take measures to minimize their impact.
The first step to achieving this is understanding that different areas have different landlord-tenant laws, and you need to ensure that you and your team are always up-to-date with local regulations. These could be laws about rent control, tenant rights and eviction procedures. Get any one of them wrong and you’ll have a costly legal issue on your hands. You should also invest in insurance coverage for each property and get property management insurance to protect yourself and your business.
8. Review your property management portfolio regularly
Once all aspects of your property management business are running smoothly and you’ve ticked all the boxes on how to manage a large property portfolio, the next step is taking time to review your property management portfolio. This allows you to see which properties are performing and which ones are not.
One thing you have to understand is that properties will go through cycles, with some not earning as much as you had hoped and others surprising you with unexpected growth. So, don’t hesitate to go back to the drawing board. You also want to keep your eye on the market and adjust your prices accordingly, especially if you’re running a vacation rental. If your properties are always vacant, it might be time to drop the price or invest in upgrades to attract guests.
Conclusion
Growth in the property management business can be overwhelming. However, when you’ve mastered how to manage a large property portfolio, it becomes easier for you to run your business. By establishing a solid system to manage your documents, keeping an eye on your finances and using technology to streamline your tasks, you’ll be well on your way to growing your business in ways you’ve never imagined.
