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Did you know adopting business process outsourcing (BPO) for property management services can help your real estate firm save 10 to 20 hours a week?
Outsourcing lets you tap into specialized talent and technology. These resources help boost efficiency, ensure compliance, and improve tenant satisfaction affordably.
If you’re considering real estate BPO services for property management but still have second thoughts, this article is for you. It explores the many benefits of leveraging the practice.
1. Streamline operations and free up time for what matters
Property management involves numerous tasks, many of which can be repetitive and time-consuming. Real estate outsourcing helps alleviate this burden.
To better understand how that’s possible, let’s first answer the question: What is BPO? It is delegating specific tasks to qualified third-party staff, primarily real estate virtual assistants (VAs).
For those wondering what a real estate VA is, they are remote professionals dedicated to assisting real estate firms. They are part of the outsourcing team and act as an extension of your in-house workforce, taking over property management services such as:
- Lease administration (e.g., collecting lease applications and generating lease agreements)
- Rent collection and accounting (e.g., collecting and following up on rent, reconciling accounts, and generating financial reports)
- Routine maintenance coordination (e.g., establishing maintenance request systems, scheduling repairs, and tracking progress)
- Customer service and support (e.g., accommodating inquiries about property rules, amenities, or community events)
With qualified VAs handling these tasks, you have more time for income-generating activities. Examples include tenant relationship management, portfolio expansion, strategic planning, and market analysis.
Unity Communications’ real estate case study perfectly demonstrates this benefit. In the report, the BPO company helped its client save 10 to 20 hours weekly, which the client used to increase sales.
2. Access specialized expertise for property management operations
BPO real estate firms can assemble a specialized talent pool that would be difficult and expensive to replicate in-house. With Korn Ferry predicting an $8.5 trillion global talent shortage, this BPO feature is a significant advantage.
Outsourcing providers screen and train real estate VAs to give them the skills and experience to help you with property management services. Empowering your firm to navigate complex challenges and optimize operations are just some reasons to hire a real estate VA.
Here are examples of specialized expertise they offer:
Property management
Real estate VAs are well-versed in industry best practices. They can offer invaluable insights into and guidance on various aspects, such as:
- Tenant screening and selection (e.g., developing effective tenant screening processes to minimize risks and attract high-quality renters)
- Maintenance and management (e.g., implementing preventative maintenance strategies to minimize repair costs and extend property lifespan)
- Budgeting and financial management (e.g., creating accurate budgets while considering future maintenance and market fluctuations)
Data analysis
Data analysis is critical for making informed decisions about rental rates, marketing strategies, and maintenance plans. Real estate outsourcing gives you the expertise to analyze data and improve your property management services.
Real estate VAs help you gain insight into:
- Market trends (e.g., high-demand areas, competitive rental rates, and market shifts)
- Property performance (e.g., vacancy rates, rental income trends, and maintenance costs)
- Operational efficiency (e.g., lease processing times, maintenance request response rates, and staff performance)
Legal compliance
Real estate regulations are complex and constantly evolving. Outsourcing providers have a pool of legal specialists who stay current with relevant property management regulations.
Examples include the following:
- The Federal Fair Housing Act prohibits housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
- Tenant rights regulate security deposits and deductions, access to repairs and maintenance, eviction procedures and notice periods, and habitability standards.
- Local property laws dictate health and safety standards, building renovations, and occupancy limits.
3. Leverage advanced technology to simplify processes
Real estate BPO service providers go beyond providing human expertise. They give you access to cutting-edge tools that act as force multipliers. That’s how outsourcing works to your advantage.
These technologies streamline processes, enhance communication, and empower data-driven decision-making. Let’s explore the different tools outsourcing teams use and how they improve property management services:
Property management software (PMS)
It is a centralized platform for managing all aspects of your property portfolio. BPO teams use it to oversee tenant information, including legal agreements, rental payments, and maintenance requests. Other tasks you can use the software for include:
- Automating rent-related tasks
- Scheduling renovations
- Monitoring repair progress
- Generating reports on key metrics
Cloud-based communication platforms
BPO teams often utilize cloud computing technology to facilitate seamless communication between tenants, property managers, and maintenance personnel. These platforms offer features such as:
- Instant messaging enables real-time communication for quick responses to inquiries and maintenance requests.
- Online portals provide a central hub for tenants to submit requests, view important documents, and stay updated on property news and announcements.
- Video conferencing tools allow for virtual meetings or inspections, which improves accessibility and convenience.
Automation tools
Automation has become popular over the years. According to Deloitte’s 2023 survey, it is a critical focus in the outsourcing industry.
Here are some automation tools providers use:
- Robotic process automation (RPA) bots can automate sending lease renewal reminders, collecting electronic signatures, and generating basic reports.
- Automated workflows can handle rent collection through online portals or auto-debit.
- Artificial intelligence (AI)-powered chatbots can answer frequently asked questions for tenants.
4. Enjoy significant cost savings
One of the most significant benefits of partnering with an outsourcing provider for property management services is cost savings. You can obtain the previously mentioned benefits without massive spending.
Here are a few ways outsourcing can help you save on operating expenses:
Lower labor costs
While BPO providers offer access to specialized talent, their fees are usually modest. They actively recruit employees from countries with lower living expenses, such as the Philippines and Mexico. This practice translates to lower wages.
According to Outsource Accelerator, businesses that utilize teams from the Philippines save 70% to 90% on labor costs. The country’s average monthly income is around $327, significantly lower than the United States’ $6,228 monthly average.
Fewer technological and resource investments
BPO providers have their own technology platforms, communication systems, and legal resources. Utilizing economies of scale, they spread the costs of purchasing, maintenance, and troubleshooting across a large client base. Hence, you don’t have to invest separately to equip your third-party team.
Minimized overhead expenses
Outsourcing typically entails remote work, especially for tasks such as property management services that can be done virtually. You avoid costs associated with maintaining an office, including:
- Office rent or mortgage
- Utilities (e.g., electricity, water, and gas)
- Common area maintenance (CAM)
- Furniture, equipment, and supplies
- Janitorial services
- Security systems
- Repairs and maintenance
The bottom line
Outsourcing property management services gives you a competitive advantage in the fierce industry. The practice offers access to specialized expertise and technology that can help you streamline processes and enhance tenant satisfaction at a lower cost. It also frees up time to let you focus on the real estate firm’s core competencies and improve its profitability.
Let’s connect if you want to learn more about real estate BPO services for property management.
