It Takes Money to Make Money…Don’t Ever Forget It!

As a property manager, your job should always be to help your clients maximise the rent they can charge. However, this can sometimes mean spending money, which is always a difficult conversation to have. To help you do this a little more easily, here are a few things to consider:

Start Things Off Right

No one likes to have major expenses sprung on them. As a result, it’s smart to begin your relationship with a property owner by proactively addressing some issues. If the owner doesn’t want to make the investment right then, find out when they would feel comfortable doing so. This will not only make things easier when the time does come to have that difficult conversation, but it will also show that you’re working as hard as you can to maintain the property.

Pay Attention to Value

People want to save money, sure, but this doesn’t mean they always want the cheapest thing they can get. What they really want is value. So, when you’re presenting a renovation project, make sure to position your suggestions in terms of how much value these updates will create.

Always present a project by discussing not only what the investor should do, but how long the work will take, and, of course, how much it will cost, including the expense incurred for not being able to rent the place during the renovation.

Once you’ve done this, make sure to point out what these updates will do to the property’s rent potential, as well as to its capital gains. If people can see they stand to make the money they spent on the renovation back in a few years, and that they also will be able to grow the value of their property, then it’s much more likely they will say yes to whichever projects you suggest.

Work with Great Suppliers

Finding reputable, licensed tradespeople is an absolute must. You’ll want to rely on them for doing things such as giving quotes, scheduling and finding materials. Remember, this is their area of expertise, so as long as you trust them, you should have no issue putting them in charge of these parts of the project.

It might also be a good idea to introduce some of these people to your clients. They are an extension of your company, and you shouldn’t be afraid to show this when you need to.

Start Collecting Case Studies

As you do more and more projects, make sure to gather some information on how they affected the property. Being able to present to clients evidence of successful renovation projects you’ve already managed is going to be a very effective way to convince them to follow your advice.

However, if you don’t have a lot of these projects under your belt yet, then you can use examples from competitors. Sometimes just being able to show that these types of initiatives have worked in the past is all you need to get a yes.

In conclusion, always remember that you’re no longer just a property manager. You’re also an asset manager. Part of doing this job is getting investors to invest in their property, and the tips discussed here should help you do just that.