Why Managing a Property is Like Managing a Business

Managing a property is a lot of responsible.  You are in charge of someone’s home.  Their day-to-day life is affected directly by you.  Family dynamics, childhood memories, and social status are impacted by the decisions of the property manager.

And conversely, those elements affect you as well.

When you break it down though, it’s not so different from managing any business.

The Different Elements

As the property manager, you are obviously the boss.

The properties you have are the positions of employment available.  Just like positions at a business, these properties need to be filled in order for your operations to function.

The tenants are a little tricky.  In some ways, they are your customer.  At the same time, they’re a bit like employees.  We’ll explain why at the end.

As for the product you’re selling, well, that would be quality of living.

King of the Castle

Some property managers see themselves as a king who takes charges the peasants for living in his land.  This is not a good strategy as it will leave renters upset and make you look like, for lack of a better term, a jerk.

It’s better to look at yourself as an employer of sorts.  You are providing an opportunity: for people to have a home.

You have to care for your property and cultivate a culture the same way any boss or manager does.

Filling the Position

It shouldn’t be too hard to view a place of residence like a position of employment.

The spot is empty, that’s bad.  In the case of property, it means money isn’t coming in.  In the case of employment, it means work isn’t being down.

It’s up to the manager to get that position filled.  But, it’s also the manager’s responsibility to make sure that position has the proper resources.  That it is maintained and taken care of.

Even when someone is hired for a position, the manager must keep track of that job and make sure everything is operating smoothly.  A property owner must do the same for their property.

Taking Care of the People

As I said before, tenants are a little tricky.  They’re like employees because they fill the vacancy, the gap in your overall business.  They may not work for you, but they are under you and have to follow your rules.

At the same time, you have to keep them happy.  Unhappy employees do poor work.  Unhappy tenants don’t pay, trash your property, or leave you bad reviews online.  There is a certain amount of reputation management involved in both.

Tenants are also your customers as they are paying you for a product.  It is up to you to give them what they want at a competitive price that keeps them coming back.  Ultimately, tenants are more like customers than employees, but if you find the balance of seeing both sides, you can be a better property manager for it.

What are You Selling?

You might think you are selling a home, house, apartment, land, etc.  That isn’t  true.  A Real Estate agent sells a house.  A farmer might sell land.

A property manager sells a standard of living.  They sell comfort, peace of mind, and security.  You own the place.  They simply live there.  It’s your job to make sure they’re taken care of (as long as they pay you of course).

It’s tricky because you’re entrusting them with something you own.  But the better you take care of them, the better they will take care of what you’ve given them.

The Right Tools

Managers use technology, computers, and software to make sure everything is in working order.  It should be no different for a property manager.  Great real estate management software can make sure your property management business stays in check, from the tenants to property itself.

All the parts are important.  Just like a business.

Posted in real estate.

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