The soaring demand for housing in 2022 has resulted in an equally strong push toward rental markets. Even though inflation has reached its highest level in 40 years, demand remains strong. This boost is only partially positive for Salesforce For Real Estate, as inflationary effects manifest in related areas such as
rising maintenance and wage costs,
stunted inventory due to a strong renewal market,
supply chain backups, and sky-high material costs.
We are now entering an uncertain real estate market. Inflation affects everyone; interest rates are higher than they have been in years, home prices have continued to rise, and buyers have become less interested in purchasing homes in the short term.
However, there are some things you can do right now to not only survive but also grow your business during the impending downturn.
Here we put together some suggestions to help you thrive during the inflation:
Keep track of maintenance costs: Because of the rapid rise in inflation and the resulting financial demands on property management companies, every renovation or unit repair becomes exponentially more expensive, with materials becoming even more challenging to obtain and vendors becoming even more difficult to find. As a result, it’s critical to keep track of ongoing maintenance costs. In addition, compare vendors’ prices, identify units requiring costly recurring maintenance, and negotiate bulk pricing and preferred repair rates. These are a few best practices that can assist property managers in keeping teams in good condition while reducing unnecessary spending.
Keep headcount costs under control: Slowing employee turnover can help keep headcount costs in check in the face of rising inflation. Employee retention is far more cost-effective than constant recruitment, as salaries rise to account for higher cost-of-living expenses. Because of these factors, property management companies must concentrate on what makes their company stand out as a workplace to attract and retain talent. As part of that effort, ensure a positive employee experience.
Configure Your CRM to Build (and Manage) Your Database Quickly: Efficient technology can help eliminate the need for employees to handle manual tasks that take priority over more meaningful work. Managers can also invest in employee career development and mentorship and make more explicit efforts to advocate for employees, which can help avoid burnout. We couldn’t run our real estate company without CRMs, and they have to do a lot of heavy lifting. If you do not already have a CRM, now is the time to get one. Fortunately, getting a CRM does not have to break the bank. A low-cost CRM, such as REDA CRM, has plans to make real estate employees’ jobs easier with 100% accuracy and time management.
Maintain (and improve) your relationships with current clients: When the economy changes due to uncertain conditions, you may need to change your approach to servicing your buyers and sellers. Client relationships are critical during this transition, so it is vital to demonstrate that you can still assist them in whatever market we find ourselves in.
Property Management Leasing Software REDA helps you depict how different price points and types of homes are impacted in your area to serve your clients best. The above strategies and the addition of CRM in your business will help you sail through the highest inflation and recession. To know more contact us.