Property management is a demanding job. Unlike a 9 to 5 job, managing properties requires you to work at your client’s convenience. On top of that, property managers also need to handle marketing, legal work, maintenance, and other tasks. Looks challenging? You can overcome most of your business obstacles through outsourcing.
Apart from managing your time better, outsourcing can also help your business grow. Wondering how? We have compiled the top ways outsourcing can improve a real estate business. Read on!
1. Save Money
A good real estate business relies on effective financial management. Along with generating profit, it is also essential to plan and utilize cost-effective strategies that facilitate business growth.
Cost-cutting is the top priority of 59% of real estate companies that outsource their tasks. For a business that is restricted in terms of space and money, outsourcing can be the ideal way to afford additional staff.
Irrespective of the size of your company, you can outsource your tasks. Service providers also offer various packages for different budgets. Depending on your needs, you can hire them on a per-project basis or monthly basis. They are also reliable if you need more staff to handle your work. The cost flexibility that comes with real estate outsourcing is something you cannot get with an internal team.
2. Focus on core tasks
As we discussed earlier, the real estate business is all about time management. Most common real estate tasks include maintenance & repairs(80%), rent collection(80%), and advertising(77%). As a property manager, you need to focus on these core tasks for business growth.
While non-core tasks such as accounting and financial reporting are important, they are better handled through outsourcing. Clearing out your schedule to accommodate important tasks can help you build better business strategies. Whether you want to market better or upgrade your maintenance, you will have enough time to improvise your business.
For example, by outsourcing lease abstractions, you can focus on rent collection which is a direct revenue-generating task. You can pay attention to any missed payments or improve the way rent is collected from tenants.
3. Access expert resources
Every real estate business has activities that require different areas of expertise. If you manage every task through an internal team, this can be expensive. According to the Association for Talent Development, organizations spend an average of $1,252 on training a new employee. For every additional employee you hire, the cost multiplies. This drains the revenue that could be used to develop other real estate tasks.
By outsourcing, you can skip the training phase to directly access industry experts. Service providers have trained staff to handle outsourced tasks. This gives you the benefit of hiring an expert by spending only a fraction of the money. This money can instead be directed towards business-growth initiatives.
4. Efficiently manage paperwork
As your business grows, it also brings in more contracts, leases, and general paperwork. Confused with the legal jargon? Hire service providers to manage paperwork. Companies like KriyaGo handle lease abstractions, lease accounting, and CAM reconciliations. All these tasks are complicated and time-consuming.
With experienced staff and the latest technology, outsourcing companies can manage paperwork effectively. They know exactly what to include in lease abstractions or how to reconcile CAM expenses. This not only saves you time and resources but also legally safeguards your business.
5. Facilitate remote work
The remote working trend is rapidly increasing as people realize the full benefits of working from home. According to a recent Upwork survey, the growth rate for remote work will reach 65% over the next five years.
Outsourcing offshore is an excellent way to encourage remote working in real estate. It overcomes the time-crunch and staff shortage to give you the required results. Instead of managing an entire team, you need to only deal with service providers who provide you monthly or yearly reports on your work. This helps you save money, time, and also working space.
6. Increase productivity
Every real estate business needs productive employees to achieve desired growth. Consider an in-house accounting team. Depending on your revenue, you hire one or two accountants. No matter the workload, your team of two has to handle all the accounting. The unnecessary work pressure can lead to decreased productivity. Also, if any of your employees fall sick or go on leave, your work will suffer.
By outsourcing, you can overcome this problem. Service providers have enough staff to handle varying amounts of workload, even if one of the employees can’t work. They are also experienced and have access to the latest technology. This makes them more efficient and productive.
7. Scale easily
A growing business requires more staff to handle the increasing workload. Hiring new employees every time isn’t feasible. By outsourcing, you can effectively scale the services depending on your requirements. If you have more clients or properties on your portfolio, your outsourcing partner will assign more people to handle your work.
Similarly, if your workload ever decreases, then there is no hassle of laying off an employee. You can simply scale down on your outsourcing services.
Service providers also charge you according to the work done. But an in-house employee is always on the company payroll, irrespective of the amount of work assigned to them. By outsourcing, you can scale your business without worrying about additional costs.
KriyaGo: Your perfect outsourcing partner
Want outsourcing services for your flourishing real estate business? KriyaGo provides outsourcing services for back-office accounting, lease abstractions, lease accounting, and CAM reconciliations. We understand your requirements and build an outsourcing strategy for you.
Our employees are industry experts having experience in relevant fields. Whether you want to frame lease abstractions or manage your CAM expenses, we are the right partner for you.
We also help our clients build property management software according to their requirements. By integrating state-of-art software like Yardi, Procore, and SAP Concur, we can create a single platform for all your real estate needs.
To know more about real estate outsourcing, book a free consultation with KriyaGo!
