The  State  of  the  Property  Management  Industry  2015

3  STEPS  TO  OUTPERFORM  YOUR  COMPETITION

www.buildium.com  •  @Buildium

Today’s  property  managers  face  an  increasingly  more  complex and  competitive  market for  

obtaining  new  business  and  operating  efficiently  and  profitably.  

TECHNICAL TIME  CONSUMINGSTRESSFUL

72% of  property  managers  

use  online  payments

88%  of  property  managers  perform  

evictions

98%  of  property  managers  collect  rent

To  help  property  managers  navigate  these  new  market  dynamics,  we’ve  synthesized  the  latest  industry  data  into  three  steps  so  that  you  can  do  

your  best and  earn  the  most.

1.  Be  competitive  +  win  more  business

Property  managers  continue  to  offer  more  services  – and  fees  – to  property  owners.

90%  or  more  of  companies  provide  the  following  5  services:

1. Rent  collection2. Tenant  screening3. Marketing  properties4. Maintenance  services5. Financial  reporting

Percentage  of  rent

Flat  fee

Other

72%  of  property  managers  structure  their  management   fee  as  a  percentage  of  rent.

Of  the  72% of  property  managers  that  charge  a  percentage  of  rent,  46% charge  10%

Of  the  16%  of  property  managers  that  charge  a  flat  fee,  44%  charge  $50  -­ $99

And  as  a  company  grows,  so  do  the  number  of  services  they  provide,  as  well  as  the  likelihood   that  they  charge  a  flat  monthly  management  fee.

Are  you  a  property  manager   thinking  of  adding  additionalservices  to  your  clients  and  tenants?  Or  do  you  not  offer  any  of  the  top  five  most  frequently  offered  services?  You  could  be  missing  out  on  new  business!  Consider  adding  some  or  all  of  these  services  to  gain  a  competitive  edge.

PROPERTY  MANAGEMENT  TIP

2.  Maximize  your  marketing  +  network  of  experts

Property  managers  attribute  marketing  their  business as  the  second  most  important  

driver  of  business  success,  next  to  providing  great  service.

Property  managers   rank  the  following  lead  sources  as  most  likely  to  convert  to  new  business:

1.  Referrals  from  current/past  clients2.  Broker  referral  leads3.  Leads  from  your  website4.  Online  ad  leads5.  Leads  from  online  lead  services

Property  managers  allocate  larger  marketing  budgets  for  top  lead  sources.  

To  grow  your  business,  maximize  your  marketing.  When  you  know  which  lead  sources  are  most  likely  to  convert  to  new  business,  you  are  able  to  focus  your  time,  effort  and  limited  resources  on  the  channels   that  matter  most  for  your  business.

PROPERTY  MANAGEMENT  TIP

3.  Leverage  technology  +  outperform  the  competition

Property  managers  top  five  challenges:

Property  managers  look  to  technology  to  overcome  their  greatest  challenges:

81%  of  PROPERTY  OWNERS  think  technology   is  important

PROPERTY  MANAGERS  list  technology  as  a  TOP  5  MOST  IMPORTANT  

driver  of  business  success

Technology  helps  property  managers  optimize  business  processes  and  take  advantage  of  

industry  best  practices.

Use  property  management   technology  as  a  selling  point  to  win  new  business.  For  example,  48%  of  property  owners  find  it  unpleasant   to  market  rental  units,  and  67%  do  not  feel  well-­equipped   to  do  so.  Technology  that  automatically  syndicates  vacant  units  on  multiple  online  rental  listing  sites  is  an  efficiency  gain  that  can  be  marketed  as  a  key  business  differentiator.

PROPERTY  MANAGEMENT  TIP

From  insights  to  action:  three  strategies  to  grow  your  business

Be  Competitive

Maximize  Marketing  ROI

Leverage  Technology

Win  More  Business

Network  of  Experts

Outperform  the  Competition

1st Annual  State  of  the  Industry  ReportRead  the  full  report:

http://www.buildium.com/property-­management-­report-­2015