Faced During A Recession By Property Management Firms
The field of real estate is rather unique. Of course the industry has its ups and downs like any other and for each firm there are a number of opportunities which it can take advantage of, as well as threats which it must face. The extent to which each firm can survive and prosper in the current environment will depend upon its own organizational strengths and weaknesses as well as the attitude and morale of its workers.
It must be admitted that property management companies face a lot of laws and competition in their working, and for this reason they may be challenged more than others in a recession. The fact of the matter is that housing is a long term commitment and no one enters it without giving it a lot of thought. Everyone wants to lock into the best possible rates for the long term with a lot of other benefits thrown in. There may be opportunities to refinance at lower rates and consumers want to be open to this opportunity as well. Everything looks good in a boom, but in a bust the housing and construction sector is often one of the first to be hit. As business and employment opportunities reduce, the layoffs become imminent and what follows are foreclosures and homelessness.
For starters, the business of property management companies is highly dependent upon the relationship that they hold with property owners. Property owners usually pay the property managers a fixed percent of the total money that they make every month, the same being the main means of income for property management companies. In a recession, this dwindles considerably as rents and property values touch rock bottom levels, and also lead to lesser purchasing power for the public.
Another way to earn money is by negotiating with both parties- lessor and lessee- to fix and sign a lease. But this activity also reduces during a recession, as fewer and fewer real estate deals take place. Many people try to make deals themselves without the involvement of a property management advisor. In fact this may constitute the biggest reason for property management companies to shut down.
That is why in the poor business days of a recession, the public relations aspect of your real estate business may become the most important. The most relevant thing here is to remember that this type of business is often dominated by those with a good reputation and a superior marketing and public relations program. That’s why we must always leave the customer with a good and lasting impression. If he is satisfied, he will be the first to recommend your firm to his friends, colleagues and relatives. This word of mouth advertising can be very important in a recession. So even though your biggest clients may terminate their services, be sure to put up a good end to your relationship. You could never know if he may come back or refer you to his friends. This is often thought to be the best possible way to develop a business or increase one’s client base. You may also consider reducing your fee in order to attract a larger number of clients, so it is best to be prepared for any eventuality.
Using the services of automated property management software like Master Key can give you a number of important benefits for your business. It can help by keeping a database of contacts of suppliers, contractors, buyers, sellers, commission agents, staff and others who can help you in your business. It also helps streamline and manage your day to day activities, giving you a record of tasks assigned to agents, deals struck and completed, commissions earned and paid. Administrative tasks can be organized and automated as well. Often the best opportunities are sealed when the best buyer and best seller come together for the defined type and size of property, and Master Key can keep a record of demands made and properties available in your portfolio so that you can match them at ease. The Master Key program presently comes in three versions- Professional, Premium and Master plan. In the realm of real estate marketing, we like to introduce it as the complete real estate management software that takes into account all aspects of the real estate business no matter whether you are a developer, broker or property manager. It is also one of the best programs concerning the needs of Commercial Real estate CRM. All these qualities make Master Key one of the most demanded software programs not only in the UAE but the world over.