“Despite the fact we have steady growth, we have not grown our number of doors. Why?”
This is a common question we get asked. Property management business owners cannot understand why their numbers don’t add up and SUSTAINABLE growth is not achieved. If your agency has steady growth but has not grown its number of doors, here’s what you should do.
1. Focus on retention
Usually, property management businesses are so focused on growth that they forget about the importance of retention. Yet, retention is actually the most cost-effective and sustainable form of growth.
Focusing only on growth leads to gaining any door at any cost. This usually sees a shift in the quality of doors and owners, resulting in your team also switching their focus to these high-demanding properties and clients. As a result, your current clients are no longer being adequately serviced, and so starts the pattern of new business in, current business out.
If you want sustainable growth, you must focus on retaining your current clients and only bring in new business that aligns with your business goals.
2. Implement a client induction program
To achieve sustainable growth, you must implement a client induction program.
A survey revealed that over 87% of new property management clients felt that they had no idea what to expect after the Growth Manager or BDM signed them up and handed them over to the property management team. Of those 87%, close to 90% revealed that they left the agency after 12 months because they did not feel supported by their property manager.
To overcome this, implementing an effective client induction program carried out by your property management team will ensure that your new clients feel supported and satisfied with your service. That’s because, your new clients will know what to expect from your agency, when to expect it, and from whom. This will help you retain your new clients for 12 months, and beyond!
3. Know your critical numbers
Sustained growth requires you to know your property management business’ critical numbers and set your benchmarks for growth around them.
This extends to knowing the average income you will earn from each door managed. This income target per property should then become your benchmark for the average income earned on new doors that your Growth Manager or BDM must achieve. The key is to focus on the new income earned for the month, and monitor the net income earned through new and existing business. This will lead to sustainable growth, instead of steady growth.
Focusing on both income and retention is how you can achieve sustainable growth in your property management business. Following these steps leads to long-term growth when it comes to your income, number of doors managed and profitability.
If you would like to find out more about how to achieve SUSTAINABLE growth for your business, contact us.