3 ways to get the most out of your rental business with one simple mindshift
Take a moment to think about the way you manage your rental properties. Do you have professional systems in place to help your processes run smoothly? If the answer is no, it’s time to start positioning your landlording duties to function as a real business.
It may sound daunting, but there are tools that make it easy to increase your profit potential, professionalize relations with your tenants and reduce the time needed to manage your business.
It’s Your Investment — Maintain Control
I recently spoke with a long-time landlord who expressed his interest in RentMindMe.com. He and his wife were desperate to find a better way to manage their rentals, He recognized all the benefits he and his wife would get out of a rental management software, especially the significant reduction of time spent chasing rent and the ability to actually collect late fees, however he wanted to poll his tenants before moving forward.
Hearing this all of this confused me. Here’s why…
Would you allow your tenants to write your lease? Of course not. Would you let your tenants determine your late fees? No. Would you be okay if your tenants decided that they wanted to change your rent price? Okay, okay. I’m sure you get it by now. These questions sound ridiculous, but the point is, adopting a rental management software is your business decision, not your tenants’.
You are doing it to save yourself time, to save yourself money, to improve your processes to better run your business. You have a significant financial investment that you worked hard to acquire, you have every right to implement any kind of business tool that will make that investment more professional, efficient and ultimately more profitable.
Remember when employers moved to direct deposit versus issuing paper payroll checks? The reason they made the change was to save time each week/month and make their business processes more efficient. Some employers feared employees would try to buck the system or threaten to quit, others wondered “what if they don’t have a bank account” but guess what – there was no mass exodus and direct deposit is now the norm for paychecks. There probably were employees who were upset out of fear of something new, but it was a business decision that they had to accept. Today, most people wouldn’t want to be paid any other way because it saves them time (no bank trips) and the money is automatically in their account.
Choosing to implement a rental management software goes beyond just the way a tenant pays rent, it is a tool for communication, organization and notifications – for both tenants and landlords. It can house digital copies of leases, move-in/move-out photos, send lease renewal notifications, manage maintenance requests, display lease terms, calculate late fees, create monthly rent invoices, and create violation notifications Even if you still want to collect rent manually via cash/money order, a rental management software gives you the ability to record it in the system, automatically generate a receipt for your tenant and create large batch deposit reconciliation reports for easy reporting between owners and managers.
Benefits of Thinking Differently About Your Rental Business
1. Increase Professionalism
When you have solidified business systems in place, it not only helps you, it helps your tenants. People naturally identify with systems because most professional businesses use them. Running your rental business with specially designed tools also helps build transparency. And if you’re still worried about your tenants, know that they are used to viewing information online. Almost all businesses like utility companies, car loan providers, and credit card companies offer online portals these days to view an invoice, see payment history and make a payment.
2. Creates Structure for You and Your Team
Situations arise where you may feel pressured to react. Be proactive and get business systems in place so you can be prepared and avoid mistakes. Established processes help give you time to evaluate and make informed decisions as opposed to being reactionary.
With a rental management software designed by landlords for landlords, all of your information is easily accessible. As a result, you can be in control of your operations and not feel overwhelmed or unprepared. In addition, your tenants have a clear understanding regarding the expectations of their lease agreement, especially when it comes to paying rent and submitting requests.
3. Consolidate and Streamline Your Operations
Say goodbye to information lags. Automating your processes helps you keep your information updated and reduces the need for you to track details manually, significantly reducing human error.
Tasks that you usually perform manually, such as rent reminders, late fee calculations, lease renewal notices, violations management, tenant ledgers and rent deposits, become automatic. As a result, you have more time to focus on what matters most — growing your business and finding additional ways to increase your monthly cash flow.
When a problem arises or you need data quickly, a business system provides you with a central hub to find answers, evaluate information, and make informed decisions.
Overall, changing your approach and treating your operations as a business keeps you on a course for growth. By increasing efficiencies and streamlining processes, you can see precisely how your landlording services are performing and make informed decisions with a central hub to find answers or evaluate information.
If you’re ready to learn more about how RentMindMe provide you with the tools to implement a solid business system and professionalize your business, we’re here to help. Give us a call at 419-318-0664 or email our team at [email protected] to get in touch directly with our founders, Ben and Dina Lynch.