Calendar icon March 21, 2023

Four Keys to Successfully Scaling A Property Management Company

Photo of Alec Lower

Alec Lower

Social Media Coordinator - Second Nature

Today we're looking at the best ways to successfully scale a property management company. And we're going to an industry expert with our questions: Patrick Freeze.

Patrick Freeze was once a professional poker player. Now he is the CEO of Bay Property Management, a Baltimore-based firm that has scaled to nearly 6,000 doors and is one of the largest PMCs on the east coast.

While his personal origin story is one of the most interesting in the PM industry, his company’s growth story and the tactics used to go from nothing to a heavily-scaled PMC are equally interesting.

Through a marketing-focused approach that was complimented by intentional and detailed process optimization, Freeze achieved an impressive amount of growth at Bay, and he joined us to explain exactly how he got there.

Four Keys to Successfully Scale Your PMC

Here are Freeze's top strategies.

Optimize Your Marketing for Efficient Growth

From day one, Bay Property Management has invested in its organic marketing efforts to help attract new business. Freeze himself became an expert in SEO early on and it’s the primary focus of his robust marketing team today.

“I started reading everything I could on online marketing, so SEO, pay per click, etc. Over that coming year, I became really skilled at doing all the marketing on my own,” says Freeze. “So if you were to type in property management companies, Baltimore property management companies, or any variation of those keywords, we could come up number one. And then we started getting phone calls 24/7.”


Bay grew rapidly as a result of its ability to generate web traffic and organic leads through SEO, and Freeze doubled the size of the business on a yearly basis for several years after the initial launch, eventually expanding into four different markets.

Freeze credits his and his team’s investment in low-funnel digital marketing tactics as the catalyst for his rapid business growth. The CEO estimates he gets between 120 and 140 new single-family leads a week, with almost all of them coming from online sources.

“We have 10 people in our marketing department that solely focus on that. Google is actually going through a big algorithm update right now, and you have to be on that. If you’re not on top of that, you’re not going to rank well in search. We spend a lot of time on that. Someone could probably argue the other side and say you should be more diversified, but at least that’s worked for us.”

Process Improvement Never Takes A Back Seat

One of the biggest pitfalls as a business grows is its process development and refinement. Scale requires processes, and enacting and optimizing these can often be a much bigger challenge than actually growing the client list.

A rapidly growing PMC has already optimized its process for finding new business. Defining the systems your company will depend on to be efficient is a new undertaking, something Freeze learned quickly as Bay grew to nearly 200 employees.


“When you’re managing 500 units, you know everyone at the company very well, and you can get away with not having systems, policies, procedures. When you have 190 people, you really have to have your systems down,” says the CEO.

Freeze notes that the challenges that come with a large company are not universal, and what you have to be prepared for at 50 employees is different from 150. It pays to have continuous improvement and always be optimizing. Process management is never something that’s done.

“So I think probably scaling from let's call it, you know, five employees to 15 to 50 To 100. You have to keep iterating. You have to continuously make improvements on what you're doing. So what worked for, let's call it 200 doors is not going to work for 1,000. So a good example, I guess when we started out. We had one person handling maintenance, we had one person handling accounting, we had one person as the property manager, right? And I would go out and get new business. Well, as the company continued to grow then we had two people on maintenance. And then we had two property managers. And as we were growing, we realize, wait a second, when a work order comes in, whose work order is that?”

Early on in the company’s growth, Freeze sought to define the exact responsibilities of all positions within the company in order to minimize overlap. Overlap in roles leads to inefficiencies that can be avoided with clear guidelines as to exactly what role is responsible for what upcoming tasks.

“We have a handbook for our property managers that’s probably 80 pages. We have a procedural guide for every single position,” says Freeze. “I don’t think anyone whom I’ve talked to that has scale has not had very, very defined policies, procedures, handbooks, because if you don’t, it’s going to be a total mess.”

Structure has helped create more traceable outcomes, which results in processes that are “more easily optimized and improved as the company continues to grow.

“We made a change when we had about 1000 or 1200 units from having maintenance coordinators and property managers to just having the property managers handle everything. It was a big switch for the company, but I think it was for the better because we know exactly when there’s a mistake that’s made. We can trace that and see exactly who was responsible for the problem instead of having four hands in the pie.”

Quality Employees Are The Backbone of Growth

“I don’t think there is anything more important than having good quality employees,” says Freeze. “You can get all the new business you want but if you don’t have good employees managing the new property, you’re going to lose it as quickly as you gained it.”

Bay did not grow to almost 200 employees without a developed process for finding good quality workers. While the hiring process has become much more role-specific now, Freeze credits a unique interview design that’s much more action-focused than response-focused as what has helped him pick the most suited people for property management.

“I had a list of 30 to 40 questions that had nothing to do with property management. I would ask questions like ‘who is the vice president?’ ‘What is 46 times 24?’ I used to have this brick wall in my office and I would ask how many bricks are on the wall. I would ask them to name something that’s complicated but you know really, really well, and take five minutes and explain it to me. And I would just keep going on and on for probably 30 minutes with these questions.”

Freeze never particularly cared if the candidates got the answers correct. He was much more interested in their process for getting to the answers and how they handled the abnormal interview.

“In property management, you’re constantly dealing with problems. You’re basically problem-solving when you’re a property manager, and if you can’t deal with complicated questions, you’re probably not going to be able to deal with complicated situations. So I would just start blasting off for 30 minutes all these random questions, and some people did great with it and we would hire them. We probably had 25% of all people who wouldn’t even finish the interview.”

Resiliency is a key trait for a property manager, and Bay’s interview process succeeded in testing for one of the harder traits to ID in an interview setting. Freeze’s process also includes a timed writing test designed to see if candidates can write clearly and quickly when applying for a company that’s very email heavy. The process is designed to test ability more so than experience, and it’s helped get the right people in place from the beginning, allowing Bay to offer a better property management service that is more marketable.

Compliance Is Key

Compliance is hard enough in the heavily regulated world of property management, but one of the biggest challenges as you expand into other markets is managing the different laws and ordinances in each individual market. Freeze believes that compliance is “far and away” the biggest challenge of scale.

“All of our leasing agents have to know different things in different jurisdictions that we’re in, because the requirements are different,” says Freeze. “We have attorneys review our stuff every single year, all of our lease documents, addendums, etc. Even with all that said, there is so much legislation that is passed every quarter that it can be tough to stay up on it.”

Managers at Bay’s regional offices are required to be diligent in remaining current with the nuances in local leasing laws and ordinances, which can change monthly.

“They really are changing that much, as crazy as that sounds. And then when COVID happened, it was a complete and utter nightmare. They were changing weekly, and the odds of getting hit with a big class-action lawsuit go up, and you can be sued for something that you don’t even know you’re doing wrong. So always make sure you are totally buttoned up and spending extra money on compliance. I can’t say that enough. You can’t spend too much on that.”

Advantages of Scaling a Property Management Business 

With these tools for scaling a PMC, you can increase the size and scope of your business in order to achieve higher levels of efficiency, profitability, and growth. Let’s look at what benefits you stand to gain from scaling your business.

Business growth

Scaling a business can help to grow your business by expanding the customer base, increasing sales volume, and improving operational efficiency.

Improved profitability

As a business grows, it can benefit from economies of scale, which can help to reduce costs and improve profitability.

Competitive advantage

Scaling a business can help to create a competitive advantage by allowing it to offer a wider range of products or services, enter new markets, and achieve greater brand recognition.

Improved access to capital

A larger and more successful business is often able to attract more investment and secure better financing terms, which can help to fuel further growth. In the case of property management, it can also drawn clients.

Attracting and retaining top talent

Scaling a business can help to create new opportunities for employees, increase job security, and improve overall job satisfaction, which can help to attract and retain top talent.

Increased innovation

As a business grows, it can invest more resources into research and development, which can help to drive innovation and create new products or services.

 

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Tools You Need to Scale Your Property Management Business  

The property management industry is an enormously tech-savvy group of people. In our network of property management companies, we’ve seen quick adoption of new tools and tech like AI, cloud-based systems, etc. 

Of course, the property management tools you choose will depend on the specific needs and goals of your PMC. Second Nature’s RBP aims to provide tools that are customizable across multiple property management levels, needs, and niches. With fully managed and integrated services that add value for residents and investors you can much more easily see the benefits of scale.

Here are some other tools and property management software we’ve seen most highly rated in our industry.

  1. Slack: A cloud-based platform that makes communicating with your team easy. You can get immediate responses from team members, and even vendors or clients you add to your channels.
  2. LeadSimple: Sales CRM and process automation
  3. RentCheck: Automating property inspections
  4. Process Street: No-code, simple process and workflow management
  5. Airtable: a low-code platform to build collaborative apps to visualize data, processes, etc.
  6. Zapier: A tool that allow syou to integrate all your applications and set up automated workflows between them.

These are just a few of the many property management tools available. It's important to evaluate the specific needs and goals of your business, and choose a tool that best fits those requirements.

How Second Nature Helps With Scaling  

Second Nature was built on the idea that we could help make property management easier for everyone involved – residents, investors, and especially property managers. To that end, we’ve built fully managed services that generate greater value for your PMC by delivering better resident experiences. 

Our team takes care of the details for you so that your team can focus on growth, reputation, and quality. Learn more about Second Nature’s industry-leading resident benefits package and how it can help you scale with greater ease.

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Resident Benefits Package: How to Increase Revenue and Reduce Costs

You might not be surprised to hear that at Second Nature we get asked this a lot: "Exactly what is a resident benefit package?" Or "What is a tenant benefit package?" Simply put, a resident benefits package (RBP) is a suite of services provided by the property manager to make life easier for residents. In today’s marketplace, residents and property investors expect a certain level of ease, convenience, and support. Property managers have noticed that beyond reacting quickly to requests, residents want their needs proactively anticipated. And they're willing to pay and stay for it. (Ready to get started now? Build your Resident Benefits Package today!) In this article, we’ll explore what a resident benefit package is, how it can generate revenue, and how to implement a resident benefits package (RBP) to give your residents, investors, and business a win. What is a resident benefits package (RBP)? The Resident Benefits Package (RBP) is designed to transform the resident's living experience. Sometimes called a "tenant benefits package," the RBP proactively meets residents' wants and needs by providing benefits to make their lives easier. At Second Nature, we pioneered the only fully managed resident benefits package. We chose the term "resident" because the tenant benefit package sounded too impersonal for the value we're driving. Resident benefit packages include an array of services and supports for residents, from filter delivery to credit building to maintenance. Stay tuned for our next suite of services for property managers and investors: the Investor Benefits Package (IBP). What are the benefits of a resident benefits package? The resident benefits package adds value to residents by anticipating their needs and providing them with services that make life easier and better. It adds value to investors by preventing maintenance, vacancy, and delinquency. And, of course, it adds value to property managers because it differentiates them from the competition. Let’s take a deeper look at how the RBP creates a Triple Win – for residents, for investors, and for you, the property manager. Attracting and retaining residents through better experiences Offering a comprehensive benefits package can make a property more appealing to potential residents. By providing desirable perks such as exclusive discounts, concierge services, or access to credit reporting and other financial benefits, the property management company can attract a larger pool of prospective residents and increase occupancy rates. Retaining residents is also crucial for profitability, as turnover costs can be significant. A benefits package can enhance resident satisfaction and loyalty, reducing turnover and associated expenses. Higher rental rates for higher value A well-curated tenant benefit package makes properties more valuable. When residents perceive additional value in the form of amenities, services, or discounts, they are often willing to pay more for their living experience. This allows the property management company to command premium prices for their units, leading to increased revenue and improved profitability. Differentiation and competitive advantage In a crowded real estate market, a distinct resident benefits package can set a property apart from competitors. It becomes a unique selling proposition that highlights the property management company's commitment to providing an exceptional living experience. By offering a package that exceeds what other properties in the area provide, the company gains a competitive advantage and attracts residents who value the added benefits. Ancillary revenue opportunities A tenant benefits package can create opportunities for generating additional revenue streams tied to specific benefits in the package. Resident benefit fee: How much does a resident benefit package cost? Most resident benefits packages cost between $20 and $100, which is often included in the lease and added as a monthly fee for the resident. Prices vary depending on a few key factors, chief among them being the mix of benefits selected by the property manager. What does a resident benefits package include? Here’s what the Second Nature Resident Benefit Package includes. Filter delivery service Air filter delivery was the first service Second Nature offered to scattered-site and single-family property managers. It is a cornerstone of the RBP, and over 1M residents have shown that a physical, tangible product is key to their ongoing perception of value. One of the most common causes of HVAC maintenance requests is a failure to change the home’s air filters on time. Air filter delivery from Second Nature solves the problem by delivering the correct-sized high-quality HVAC filters directly to each home’s front door on a predetermined schedule. The delivery serves as a reminder for the resident to change the filter, and voila – problem solved. The resident breathes clean air, the PM has fewer HVAC tickets to deal with, and the investor has their asset protected. That’s a triple win. Our message to residents: “Changing filters is as easy as opening the front door.” Phil Owen, founder of OnSight PROS, says of the delivery system: “Last year OnSight PROS performed third-party property condition reports at almost 18k single-family rental properties on behalf of property managers. The number of filters that we have to replace or mark as ‘needs attention’ becomes almost zero when a PM implements the Second Nature program. I cannot imagine how a property manager could justify not protecting their landlords with this program. The difference between those using the program and those who simply hope that their tenants go to the store to purchase and install a new filter is staggering.” Our filter delivery service has proven to reduce total HVAC maintenance requests by 38% and save up to $250 per year per property. $1 million identity protection One in four Americans will be victims of identity theft. In 2021, digital theft incidence surpassed home burglary incidents for the first time – and is rapidly rising. With identity protection as part of your RBP, every adult on the lease automatically gets the peace of mind you can expect from professional-level identity protection. Backed by AIG and monitored through IBM’s Watson, Aura Identity Guard works proactively on behalf of the resident to identify fraudulent use of their identity and alert them. In the event of an actual identity theft case, the resident receives a dedicated case manager and is covered up to $1,000,000 for most resulting damages. This protects the resident's ability to pay rent, which makes it a win for the investor. And it keeps property managers out of the middle of another difficult situation and decision. Credit building With RBP’s credit building service, on-time rental payments improve the credit score of your residents. It may seem crazy that people are building credit by paying for Netflix and other small subscriptions, but not their largest monthly payment... rent! But that's the truth for most residents. We asked, how is it even possible that someone's largest monthly expense is the only one they aren't getting credit or rewards for? This credit reporting program reports positive-impact, on-time rent payments automatically to all three credit bureaus, helping residents build their credit simply for paying their rent on time. Residents also get an immediate boost with 24 months of back reporting included. This service directly impacts rates on credit cards, auto loans, and future mortgages, incentivizing residents to get rent in on time and helping set them up for home buying in the future. The property manager and the investor both reap the benefit of the extra incentive to get rent on time and the resident gets to see their credit score rise as a result of something they have to do anyway. It’s a big-time triple win here. Resident rewards program Rental rewards are a favorite among residents and another powerful and positive incentive for on-time rent payments. Rental rewards programs deliver automatic benefits at move-in. Then, residents can unlock even more rewards by paying rent on the day it's due. At Second Nature, all on-time payment tracking is done through the app. Like other services in your RBP, it’s managed for you. Gifts include: $30 gift card for national and local brands $25 restaurant card $40 rewards cash on rent day each month rent is paid on time And more The value of rewards is covered in the cost of the RBP, so the property manager isn’t seeing any additional liabilities. The PM and investor only see a benefit, which is the increase in on-time rent payments. For the resident, rent day is now rewards day. Another triple win. Move-in Concierge Setting up utilities can be a massive headache for a new resident. Residents aren’t sure who to call and who provides utilities and home services like internet and TV for their new address. More, the research for discounts/promotions/coupons available takes more time. Most times, the process is clunky, with lots of friction that gets in the way of it getting 100% done. And it is too easy to overlook fine print in the lease about installing satellite dishes. Move-in Concierge changes all of that for professional property managers. In one phone call, residents find out what their best options are and can even get help simplifying setup. An experienced concierge confidently guides multiple people every day to properly setup their utilities. Renters Insurance Program Nearly all property managers require a renters insurance policy in their lease agreements. As part of our RBP, Second Nature offers price-competitive insurance coverage options through a Renters Insurance Program that property managers can apply to all their residents locked in with one group rate. Residents who have their own renters insurance can receive a waiver on RBP's insurance program, but the current list of enrolled residents is tracked for you by Second Nature, and any resident who drops off of their own insurance is automatically enrolled. No more hassle for you, quality asset coverage for the investor, and immediate and comprehensive liability coverage for the resident – another triple win you can create with your Resident Benefits Package. Additional benefits At Second Nature, we help property managers deliver all their services to residents. If you’re already offering perks and are ready to level up to a resident benefits package, we can help you bundle the above benefits with other services. We’ve worked with PMs to bundle in their existing property management services, including: 24/7 Maintenance Coordination: A huge benefit to residents and PMs is a service that provides after-hours support without dragging the property manager out of bed. This type of program makes reporting pesky maintenance issues easy and fast for the resident. It also helps prioritize emergency maintenance. Online Portal: With a simplified online resident portal, residents can access all of their documents, messages, and more through an app. Residents can also pay rent and receive reminders to pay rent online. Home Buying Assistance: For residents who are building up toward home ownership, some PMs offer assistance in building credit and savings. We help them get there. Vetted Vendor Network: A vetted network ensures that vendors who service your properties are screened to exceed your standards for insurance, licensing, and professionalism on the job. Property managers, residents, and investors can rest easy knowing that they have the best vendors working on their assets. Washer/Dryer Rental: Some properties may have these appliances installed or the residents come with their own, but we’ve seen the impact on prospective applicants choosing homes due the convenience of having the washer/dryer available. Security deposit alternatives: Security deposit alternatives come in different packages, but all serve to provide residents ways to be financially liable for damages without having to pay a significant lump sum up front. Pure insurance, surety bonds, and ACH authorization programs are all versions of deposit alternatives that seek to lower the barriers to rental, which in turn keeps days-on-market low and turnover costs down. Pest control services: Property managers can partner with pest control companies to provide routine or on-demand pest control services to the homes they manage. Bugs are one of the most common complaints from renters, and having services available to prevent infestation issues is a big win for resident experience. When implementing a full-service, fully managed resident benefits package, you don’t have to lose the benefits you already offer. A great service can integrate all of these benefits together – delivering more impact to residents, investors, and property managers. How much revenue can I create per unit with a Resident Benefits Package? The amount of ROI on a resident benefits package will vary depending on the property class type, market, and number and type of services offered. Generally speaking, resident benefits packages are often in the $25-75/mo range for residents, but could be more or less. It depends primarily on the amount and type of products and services. To go back to our concept of the experience economy: a resident benefits package gives residents the kind of incredible experience that they will pay and stay for. In short, keeping residents happy can reduce turnover and lead to lower costs and higher ROI for you and your investor. According to Eric Wetherington, VP of Strategic Initiatives at PURE Property Management, “Revenue is all about providing a service. The younger generations we’re dealing with in property management – they want convenience, they want experiences, and they want things to be simple, and they’re willing to pay to have things taken care of for them.” A fully managed resident benefits package can generate revenue in two key ways: Increasing services to improve resident retention Decreasing costs by increasing efficiency A resident benefits package can help to accomplish both. Routine filter delivery cuts down on HVAC and maintenance costs. A move-in concierge helps cut down time and cost as residents get settled in their new home. Credit building services keep residents invested in paying on time, sending online payments, and deliver incredible value. The list goes on. A resident benefits program creates a huge win for you as a property manager, and your investor, by driving higher ROI over time. How can property managers implement a Resident Benefits Package? If a resident benefits package is new to your company, you may wonder how best to implement it. Should you roll out a mandatory resident benefit package – ensuring the maximum benefits for your investor – or allow residents to choose? What is legal or not? We do recommend mandatory rollouts to create the most ease for you, your investor, and your residents. Having a choice may give residents a short-term positive experience, but in the long term won’t be much of a benefit. Mandatory resident benefits packages tend to go much smoother and eventually have higher benefits for everyone involved. According to Second Natures Head of Sales, Bob Hansen, “You have to look at the value that a resident benefits package brings to the investor and the resident, not just you as the property manager.” At Second Nature, we’ve seen incredibly low pushback from residents when an RBP was introduced. After all, it benefits residents, and most are delighted to have the extra service. How can property managers reduce costs with a resident benefits package? The answer is: in several ways! Implementing a comprehensive residential benefits package can provide property managers with opportunities to reduce costs and increase operational efficiency. Let’s look at examples from the product above. By including air filter delivery as part of the package, property managers can ensure that residents have regular access to clean air filters, reducing the need for costly maintenance and repairs caused by poor air quality. Offering identity protection and credit building services can help mitigate the financial risks associated with identity theft and delinquent payments, potentially reducing costs related to collections and legal procedures. They also improve retention and encourage on-time payments. Including a resident rewards program can also incentivize desirable behaviors such as timely rent payments or positive referrals, fostering resident satisfaction and reducing turnover costs. By partnering with a renter's insurance program, property managers can transfer potential liability and property damage expenses to the insurance provider, minimizing their own financial risks. A move-in concierge service can streamline the onboarding process for new residents, reducing administrative costs and improving operational efficiency. By providing these benefits, property managers can enhance resident satisfaction and retention, ultimately reducing expenses associated with turnover, repairs, and legal issues. Common mistakes property managers make implementing resident benefits packages In our experience helping property managers implement RBPs, we’ve heard our share of concerns or even horror stories from PMs who had bad implementations with other products. Here are some of the most common mistakes in RBP implementations – and how to avoid them! Overpromising and underdelivering Property managers may advertise extravagant benefits that they cannot consistently provide or fulfill, leading to disappointment and resident or investor dissatisfaction. Property managers should accurately represent the benefits package, ensuring that the offered perks are realistically achievable and consistently provided to residents. Lack of communication Failing to effectively communicate the details and availability of the benefits package to residents can result in confusion and missed opportunities for using the offered perks. Property managers should effectively communicate the details, availability, and utilization process of the benefits package to residents through multiple channels, such as newsletters and online platforms. Inadequate research and selection Property managers may choose benefits that do not align with the residents' preferences or needs, leading to a lack of interest and underutilization of the package. Property managers should conduct thorough market research and engage with residents to understand their preferences and needs, ensuring that the benefits selected align with their expectations. Failure to evaluate cost-effectiveness Neglecting to assess the costs and benefits of the package can result in offering benefits that are financially unsustainable or fail to provide a satisfactory return on investment. Property managers should regularly assess the costs and benefits of the package, considering factors such as resident utilization, return on investment, and overall financial sustainability to make informed adjustments as needed. Lack of flexibility and adaptability Not regularly reviewing and updating the benefits package based on resident feedback and changing market trends can make it less competitive and less appealing over time. Property managers should actively seek resident feedback, monitor market trends, and periodically review and update the benefits package to ensure it remains competitive and relevant to residents' changing needs. Insufficient staff training Failing to train property management staff on the benefits package and its administration can lead to ineffective communication, missed opportunities, and difficulty addressing resident inquiries or issues. Property managers should provide comprehensive training to their staff on the benefits package, including its features, administration processes, and effective communication strategies, enabling them to effectively support and engage with residents. Neglecting legal and regulatory considerations Property managers must ensure that the benefits package complies with all relevant laws and regulations, such as data protection requirements or fair housing laws, to avoid legal repercussions. Property managers should consult legal experts or advisors to ensure that the benefits package complies with all applicable laws and regulations, protecting both the company and residents. Ineffective marketing and promotion Inadequate marketing efforts to promote the benefits package can result in low resident awareness and limited participation, reducing the overall effectiveness of the package. Property managers should develop a strategic marketing plan that utilizes various channels to promote the benefits package, highlighting its value proposition and actively engaging residents in participating and utilizing the offered perks. Ignoring resident feedback Neglecting to seek and incorporate resident feedback can hinder the improvement and optimization of the benefits package, missing opportunities for enhancing resident satisfaction and retention. Property managers should establish channels for residents to provide feedback on the benefits package, actively listen to their suggestions and concerns, and make necessary adjustments to enhance resident satisfaction. Lack of coordination with vendors Failing to establish clear communication and expectations with vendors offering benefits can lead to subpar service delivery, difficulty resolving issues, or missed opportunities for cost savings. Property managers should establish clear expectations, contracts, and regular communication channels with vendors offering benefits, ensuring a seamless and satisfactory service delivery process for residents and promptly resolving any issues that may arise. This is A LOT to keep in mind, and avoiding these mistakes might feel like it will cost too much or simply take too much work. But that’s why opting for a fully managed RBP is a solution so many PMCs are turning to. You can rely on a partner to manage all aspects of your RBP, and ensure its delivering on its promises to your residents. More on that in the next section. How 1,000+ property managers are creating Triple Wins with a resident benefits package Rolling out a resident benefits package is a powerful way for property managers to create a Triple Win – for residents, investors, and themselves. An RBP like Second Nature’s is designed to be simple to use and easy to implement. All the services included within it are managed externally by Second Nature, meaning there is no day-do-day upkeep required from the manager. You plug it in and Second Nature keeps it running. The value creation an RBP generates – with such little work required from the PM – is an incredibly easy way to grow your business and create great experiences that residents will pay and stay for. Don't get left behind in the evolving world of resident experience. Learn more about our fully-managed Resident Benefits Package and how we can build ease for you, your investors, and your residents. Learn More About RBP from Second Nature

Calendar icon May 1, 2024

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Property Management Outsourcing Services: Example Tasks & Best Providers

Virtual assistants are becoming increasingly important in the property management industry for a number of reasons. First are the associated efficiencies. Property managers often wear many hats, juggling tasks like resident communication, lease agreements, maintenance requests, and advertising. A virtual assistant can handle many of these administrative and repetitive tasks, freeing up the property manager's time to focus on more strategic initiatives. Virtual assistants can also act as a communication "hub" between residents, property management companies, and service providers. They can field calls and emails, schedule appointments, and ensure everyone is on the same page. In the same vein, virtual assistants can help with tasks related to online advertising for vacancies, managing a social media presence to attract potential residents, and even creating basic property videos or photos for listings. It’s important to note that virtual assistants are not a replacement for in-house staff. Instead, they allow staff to focus on important tasks that add value, as opposed to time-consuming manual operations. In today's post, we'll provide concrete examples of how virtual assistants can help property managers, the pros and cons of using these services, and a brief directory of property management virtual assistant service providers. Note on language: In the interest of clear communication, particularly regarding legal matters, this blog post may occasionally use the term "tenant" in reference to residents. While "resident" reflects the valued community we aim to support, service provider agreements and other legal documents today typically use the term "tenant." For the majority of this post, however, we'll utilize the term "resident" to best represent the positive and collaborative atmosphere we aim to cultivate. What is outsourced property management? Outsourced property management refers to the practice of paying for a third-party company or product to handle certain tasks or operations for your property management company. This could include tasks such as tenant screening, resident benefits, renters insurance programs, rent collection, maintenance and repair coordination, lease enforcement, financial reporting, and more. Property management is in itself an outsourced service for real estate investors/property owners. Just as property owners often choose to outsource their property management to save time, reduce stress, and ensure they stay profitable – property management companies may outsource several of their services for the same reasons. Property management outsourcing services, whether PropTech products or fully managed solutions, allow property management companies to build efficiencies and focus on quality and growth. Outsourcing certain services can give residents more of what they need and investors more value for their dollar. Example property management tasks you can outsource to virtual assistants The number of tasks property managers can outsource has increased over time, as companies have become more comfortable with geographically dispersed teams, and as virtual assistants themselves have become more sophisticated (better communication skills, task automation capabilities, and access to information). Given that the benefits of outsourcing to virtual assistants are on the rise, here is a sampling of tasks that can currently be outsourced to virtual assistants. Outreach to homeowners for management Virtual assistants can be a property management company's secret weapon for improving homeowner outreach in a few key ways. Given that property managers often manage a large number of properties and homeowners, virtual assistants can handle sending personalized emails, texts, or even making phone calls to homeowners. As indicated above, they can also help manage the property management company's social media presence, posting updates, building trust, and boosting its brand presence to property owners. Property assessments While virtual assistants can't directly conduct rental property assessments, which typically involve a qualified professional inspecting the property's condition, they can provide valuable support throughout the assessment process by gathering and organizing property information crucial for the assessment (for example, details such as square footage, number of bedrooms/bathrooms, year built, major renovations, and past maintenance upkeep records). They can also compile relevant data from property management software or online real estate industry resources. Virtual assistants can also manage the scheduling of property assessors and ensure clear communication between the property owner, property manager, and the assessor. This involves sending appointment reminders, handling any cancellations or rescheduling needs, and keeping everyone informed throughout the process. Once any given assessment is complete, a virtual assistant can help process and organize the assessor's report. This might involve formatting the report, creating digital copies, and ensuring it's easily accessible to the property manager and owner. Creating and presenting management proposals Virtual assistants can be a highly cost-effective asset to property management companies when it comes to creating and presenting management proposals. For instance, virtual assistants can save a lot of time by gathering data on comparable properties in the area, including rental rates, vacancy rates, and recent sales. They can pull this data from industry reports, rental listing websites, or public property records. They can also compile details about specific rental properties under management such as square footage, amenities, maintenance history, and any unique features. This ensures the proposal accurately reflects the property's value and the services offered. In addition, virtual assistants can alleviate the hassle of creating or maintaining templates for management proposals, ensuring consistency in branding and formatting. This saves time and ensures a professional presentation. As far as actual proposal presentation is concerned, virtual assistants can handle the electronic delivery of the proposal to the client and schedule follow-up calls or meetings to discuss the proposal details and answer any questions. If the property manager is competing against other companies, a virtual assistant can help research competitor offerings and identify areas where your proposal can stand out. Determining property rent In addition to the market research capabilities mentioned above, virtual assistants can gather data on rental trends in the target area. This includes vacancy rates, as well as recent rental listings for comparable properties (similar size, bedrooms, amenities) and their advertised rent prices. They can find this information on rental listing websites, property management software, or public rental databases. Virtual assistants can also handle initial communication with investors to understand their rental expectations and any specific goals they might have (e.g., maximizing rent vs. filling the vacancy quickly). Creating and organizing property photos and marketing material Virtual assistants can be a game-changer for property management businesses when it comes to creating and organizing property photos and marketing materials. If professional photography is required, a virtual assistant can schedule appointments with photographers, and even perform basic photo editing tasks like cropping, and adjusting brightness and contrast. This ensures a clean and polished presentation of the property. They can also create file-naming conventions for these photos, in order to make them easily searchable for future use in marketing materials or listings. As far as marketing materials are concerned, virtual assistants can create or maintain templates for various materials, ensuring consistent branding and design across all platforms. This saves time and creates a professional look while delivering cost savings. Advertising the property Virtual assistants can be highly beneficial for property management companies when it comes to advertising their properties. For instance, virtual assistants can create and manage listings on various online rental platforms, ensuring accurate and up-to-date property information reaches a wide audience of potential tenants. They can also optimize listings with relevant keywords to improve search ranking. On the social media channel, virtual assistants can help create targeted ads with eye-catching visuals and compelling descriptions highlighting the property's best features. They can also schedule ad posts and track their performance to optimize future campaigns. In general, virtual assistants can create and manage a content calendar for property promotions. This can include scheduling social media posts, email blasts to potential residents, or even blog posts showcasing the property and surrounding neighborhood. Responding to inquiries Virtual assistants can be the first point of contact for prospective tenants who inquire about a property through listings, social media, or the company website. They can answer basic questions, schedule viewings, and qualify leads to ensure they are a good fit for the property. Likewise, when it comes to responding to inquiries from potential investors, they can assess the lead quality and guide the initial conversation. Vetting resident applications Virtual assistants can be a valuable asset in the vetting process for property management companies. For starters, they can handle the initial processing of rental applications, collecting and organizing applicant information, as well as lease agreements and supporting documents. This frees up property managers to focus on reviewing qualified applications. They can also manage initial communication with applicants. This might involve sending automated emails with application instructions, answering basic questions about the property or application process, and scheduling appointments for viewings. Many property management companies use tenant screening software that virtual assistants can be trained to utilize, ordering credit reports, background checks, and eviction history reports efficiently. Approving a tenant application after review Virtual assistants can play a crucial role in streamlining the post-review approval process for property management companies. Once the property manager approves an applicant, they can handle initial communication with the new resident. This might sending a lease agreement electronically, explaining signing procedures, and collecting e-signatures. Virtual assistants can also coordinate move-in logistics, such as scheduling move-in property inspections, providing information on utility activation, and sending welcome packages with important building information and resident resources. Lease preparation Virtual assistants can help to streamline the process of lease preparation while minimizing the potential for errors. At a minimum, they can gather essential information from the approved application and property details to populate lease templates. This might include resident names, contact details, leasing terms, rent amounts, and security deposit details. Many property management companies use pre-defined lease templates with standard clauses outlining They can then handle initial communication with the approved resident about lease signing. This might involve sending the lease electronically, explaining signing procedures, and answering basic questions about lease terms and conditions. resident responsibilities, maintenance procedures, and lease termination processes. Virtual assistants can ensure these clauses are included in the lease agreement. They can also review completed lease agreements for any typos, inconsistencies, or missing information before sending them to the resident for review and signature. Lease renewals Virtual assistants can also help streamline the process of lease renewal, thereby helping to increase resident retention. For example, virtual assistants can monitor lease agreements and identify upcoming lease expirations. They can then create a timeline for initiating communication with residents about potential renewals, via personalized emails or letters to residents approaching the end of their lease term. These messages can express appreciation for their residency, highlight the benefits of renewing, and outline the renewal process. Virtual assistants can also track resident responses to renewal offers, flagging those requiring further discussion with the property manager. They can also generate reports on renewal rates, providing valuable data for analyzing resident retention strategies. Running tenant background checks While virtual assistants can't legally conduct background checks themselves, they can be a valuable asset in streamlining the process for property management companies. This might include managing the initial steps of collecting and organizing applicant information crucial for background checks. This includes details like full names, Social Security numbers (with applicant consent), and previous addresses. They can also help maintain standardized forms with clear instructions for applicants regarding background check consent. This ensures applicants understand the process and provide the necessary authorization for releasing information to background check companies. Organizing tenant records Virtual assistants can be instrumental in bringing order to record-keeping processes, from data entry and management to record-keeping and accessibility. They can handle the initial data entry of resident information from applications, including names, contact details, emergency contacts, lease details, and pet information. This ensures all crucial information is captured and readily accessible. Virtual assistants can upload and organize various tenant documents electronically. This might include lease agreements, signed addendums, rental history verifications, and maintenance request records. They can also create a filing system for easy retrieval of documents when needed. Note that virtual assistants should be trained on data security and privacy regulations to ensure the confidentiality of resident information – while virtual assistants can manage record-keeping tasks, the property manager should maintain oversight and ensure compliance with data protection laws. Invoicing and accounting Virtual assistants can handle a range of tasks related to recording rent payments, managing maintenance expenses, and categorizing various property management costs For example, virtual assistants can help set up secure online payment portals for residents to easily submit rent payments electronically. On the tracking side, virtual assistants can track incoming payments, reconcile bank statements, and ensure accurate records are maintained. Virtual assistants can then generate basic financial reports for the property manager, summarizing expenses and overall property income. This allows for better financial tracking and informed decision-making. Many property management companies utilize accounting software. Virtual assistants can be trained to use these platforms, automating tasks like data entry and simplifying record-keeping. Best property management virtual assistant services providers Identifying the "best" virtual assistant service provider will of course depend on your specific needs and budget. First, we'd recommend that you determine the specific tasks you want your virtual assistant to handle (e.g., advertising, resident communication, bookkeeping), then conduct research on different providers, and compare their services offered, pricing structures, and experience with property management. Also look to online reviews and ask potential providers questions about their screening processes, and data security measures. We're highlighting a couple of providers below that focus exclusively on property management, as well as a short list of solutions that include property management in their overall focus. Virtual Property Management Solutions VPM Solutions is a platform designed specifically to connect property management and real estate businesses with virtual assistants. Learn more Purple Powered Virtual Assistant Purple Powered Virtual Assistant (PPVA) specializes in providing virtual assistants specifically catered to the property management industry. They focus on connecting property management companies with qualified VAs as well as ensuring those VAs have the necessary skills to excel in the role. Learn more Honorable mentions Virtudesk Virtudesk specializes in virtual assistants for various industries, including property management. They offer a proven track record and a focus on quality service. Learn more MyOutDesk Known for their expertise in real estate and property management, MyOutDesk offers virtual assistants with experience in tasks relevant to the field. Learn more Wishup This company boasts a user-friendly platform, offers flexible pricing plans, and has a quick onboarding process for virtual assistants. Learn more Pros and cons of using property management virtual assistants Overall, virtual assistants can be a valuable asset for property management companies, boosting profitability, resident satisfaction, and business growth. However, careful vetting, clear communication, and training are necessary to mitigate potential downsides related to quality control, local regulations, legal issues, and retention. Pros of using virtual assistants in property management Increased profitability Virtual assistants can handle tasks like advertising and resident communication, freeing up property managers to focus on maximizing rental income and minimizing vacancies. Improved tenant satisfaction Virtual assistants can ensure timely responses to new tenant inquiries and manage resident portals, leading to a more responsive and efficient experience for residents. Streamlined bookkeeping and reporting Virtual assistants can assist with bookkeeping tasks and help generate accurate financial reports, allowing for better financial management. Support for business growth Virtual assistants can handle administrative tasks and marketing efforts, reducing the overhead costs of executing this work, and freeing up property managers to focus on growing their business and taking on new clients. Cons of using virtual assistants in property management Quality control challenges Ensuring the quality of services provided by virtual assistants can be tricky, especially for complex tasks like legal compliance or resident screening. Potential legal issues Data security and privacy become a concern when sharing property information with virtual assistants. Clear contracts and data security measures are crucial. Retention challenges Finding and retaining qualified virtual assistants can be difficult, especially for specialized tasks within property management. Maintaining resident satisfaction Reliance on virtual assistants for initial communication with residents might lead to impersonal interactions, potentially impacting satisfaction. Limited expertise Virtual assistants may not have in-depth knowledge of property management regulations or local real estate market nuances compared to experienced property managers. How PMCs are outsourcing services for better resident experiences Property management companies are always looking for new ways to generate value for themselves, their residents, and their investors. One of the quickest ways to scale and increase return on investment can be through property management service outsourcing. At Second Nature, we’ve pioneered the first-ever fully managed Resident Benefits Package. The goal is to make property management easier for PMs, residents, and investors – and drive value that benefits all three. We call it the Triple Win. Our RBP provides services that residents are proven to pay and stay for – and our team manages every part of the process so property managers can focus on what's important to them.

Calendar icon April 29, 2024

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