Has your New Year’s resolution already gone by the wayside? Take heart, there’s still time to make one very important change in your business model that will reap profits all year round: Scale up your efficiencies.
While many industries have benefitted from economies of scale, property management has been in something of a backwater. That’s especially the case when compared to economic sectors that benefit from efficiency gained through instituting repetitive processes.
Take for example the process of building a car. It’s perfect for that mass-production model, which has been finely tuned to wring out every ounce of waste over the past few decades. Or, consider the efficiencies that have reclaimed waste through such measures as benchmarking. Empty apartments waste energy.
But is applying that same process possible to the task of turning over apartments? It’s just not practical to extract those kinds of efficiencies in that situation, or is it? The answer may surprise you: It depends. For many property managers it IS possible to factor in that factory model. That’s because complexes situated near campuses offer an ideal opportunity to cut hours wasted in cleaning tasks. When waste is eliminated, prospects for increasing profits vastly increase.
Imagine for a moment a well-trained crew arriving at your complex twice a year, fully equipped to clean, restore and even upgrade those apartments during scholastic breaks. That approach also eliminates the waste that arises from having to heat or cool empty units, because those units can be turned much faster. Plus, young adults really appreciate cool digs. And they’re more likely to tell their friends that your apartment community is a great place to live while attending college or grad school.
Professors who prefer upscale apartment living will also consider renting a unit near the campus, because it’s a great lifestyle choice and eliminates a daily commute by car. So consider the advantages we can bring to your property management operation. It’s time to turnover a new leaf!