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According to the NARPM, the average property management company operates with an adjusted profit margin of 6%. However, the top performers in the industry achieve profit margins as high as 25%. This, says the NARPM, is largely thanks to good financial management practices.
You might not pay much attention to management practices like owner statements and reporting. Still, these monthly rental statements are a key way to build trust - a key resource in property management.
By creating a streamlined rental income tracking process, you'll boost client satisfaction and retention rates while saving hours of work per month.
Read on to discover how optimizing your owner statements could transform your business.
The Importance of Accurate Owner Statements
Real estate is a serious investment, so trust is key. According to the Financial Industry Regulatory Authority, if you send out vague or inconsistent reports to clients, they'll wonder if you're a company they can depend on.
Poor reporting causes:
- Misunderstandings
- Reduced owner satisfaction
- Loss of Clients
On the other hand, clear and concise reports will:
- Improve transparency
- Boost client retention rates
- Lead to better decision-making
Clearly, if you want to attract and keep the best clients, you need effective landlord reporting tools, and you need to use them consistently.
Key Features of Effective Owner Statements and Reporting
According to the IFRS Foundation, consistency in financial reporting is crucial because it ensures owners can easily compare financial information over time.
Just look at time zones. Before they were implemented in the 19th century, there were no standards. Towns would set their clocks based on the position of the sun. As railroad systems developed, timing inconsistencies led to a logistical nightmare.
Likewise, when clients get inconsistent reports, they'll struggle to manage their portfolios effectively. By providing accurate and consistent reports, your clients feel confident and more satisfied. Happy clients mean stronger and longer-lasting business relationships.
Achieve Rental Business Optimization and Keep Owners Informed
If you wait until your clients demand clarity to optimize your systems, it's already too late. Once you have a reputation for sloppy, inconsistent reports, it's difficult to bounce back. Don't wait - start optimizing now.
Use modern property management software and learn to use the advanced features. By using automation tools and AI analysis, you'll provide better reports and gain an edge over the competition.
With modern tools, you can even provide clients with real-time data. Using these methods for owner statements and reporting will:
- Improve owner satisfaction
- reduce your workload
- Improve client retention
- Help grow your business
Keep Your Clients Satisfied With These Property Management Tips
The property management game is a tough business where trust is difficult to gain and easy to lose. If clients feel you're not serious about protecting their investment, they'll take their business elsewhere.
Demonstrate your commitment, and improve workflow by using modern tools to create detailed, accurate, and consistent owner statements and reporting. Not sure which tool is best or even how to use them? Consider partnering with a professional property management company.
Here at Nest Finders, we have decades of property management experience. We take a hands-on approach, and our experienced staff are available to you round-the-clock. Contact us today, and let's discuss what we could do for your HOA.
