“Focus 90% of your time on solutions and 10% of your time on problems.”
– Anthony J. D’Angelo
For property owners and managers alike, there are currently many growth opportunities. These opportunities present themselves as challenges and problems, but we find it more helpful to see them as opportunities for growth. In seasons of challenge, entrepreneurs develop tenacity, creativity, and tremendous growth.
Property owners must search for solutions rather than focusing on problems. Today is no different despite a challenging investment market and a concerning outlook as a recession is evident even if no one will label it such. There are specific opportunities facing property owners and managers to discuss.
- Opportunity: challenging labor market; employee training and retention.
- Opportunity: high inflation, high interest rates.
- Opportunity: first home inventory low; young and old families seeking rentals.
A challenging labor market leads to difficulty with employee training and retention for property management.
Property management companies face challenges often. The key is to find solutions that are cost-effective and easily implemented. Property management is demanding, with longer hours than many other jobs. Being on-call means that when issues arise, a property manager is often called away from important things to handle the challenges that have come. This position sees frequent turnover in this profession even before 2020. Post-2020, more employees seek a better work/life balance and higher pay. With the rising cost of living, employees cannot afford to work for less especially when the job is demanding.
Utilizing technology to create better workflows is essential. Make it easier for employees to complete tasks and eliminate roadblocks to their success by automating items as possible.
Transform company culture with intentional changes that will lead to greater job satisfaction. Offer work flexibility when feasible, make it easy for employees to take ownership of their tasks and schedule, and create a culture that reflects your gratitude for your employees. Pizza on a Friday does not foster a culture that reflects appreciation. Giving employees greater control of their schedule and time will reflect the value you place on them.
High inflation & high interest rates create challenges for both entrepreneurs and homebuyers today.
In any conversation today, the cost of living comes up. Whether it’s a trip to the grocery store, the gas station, or restocking supplies for business, the cost of doing everything is higher. Inflation presents challenges to property owners prompting greater efficiency and better stewardship when handled strategically. It’s not about cutting corners and doing less, but about being smart and efficient in your work.
High interest rates present other challenges to both investors and homebuyers. Is it time to buy or is it better to wait? For both groups of people, that’s a question for a trusted financial advisor. In either case, the current 30-year fixed rate of 8.391% (yikes) will slow your decision-making process. Keep in mind, that rates can be refinanced when they lower. Depending on your financial position, it may be advantageous to pause when normally these decisions would be quick and easy.
First home inventory is low. As a result, young and older families are seeking more single-home rentals.
If you’re a property owner, it can seem like a great time since more families of all ages are seeking single-home rentals. It’s imperative to prepare for challenges with renters. As mentioned above, everything is more expensive, which creates challenges for people meeting the demands of rent and everything else. The demand for single-family rentals is rising. Many multi-family complexes are being built to meet the demand, but the appeal of a rental home is strong. This is a unique opportunity to market to a broader audience including young families and mature ones as well.
Those in the real estate industry have always been good at adapting to challenges. We find the best solutions when we look to meet specific needs. Weaver Realty is a full-service property management company with decades of experience and many satisfied clients. We would love to work with you on solutions to meet the challenges of today in property management. Call us at 904-733-0039 to work with our team of experts on your unique situation.
