Because property management involves a long list of tasks, ranging from tenant screening to ensuring legal compliance, it makes perfect sense that the demand for strong general support increases over time.With 89% of property management companies choosing to outsource their functions to service providers, many are wondering: Is outsourcing general support a game changer in the property management industry? Let us walk you through everything you need to know in this article.
The Growing Need for General Support in Property Management
As the property management industry becomes more and more demanding, there is a growing need for general support in various aspects of property management to ensure efficiency, compliance, and tenant satisfaction. Below are some of the key areas where general support is increasingly essential.
Technological Adaptation
The adoption of new technologies like property management software, IoT devices for maintenance, and virtual tours requires a level of expertise that many property managers may not possess. General support in the form of IT specialists can help in the smooth integration and operation of these technologies.
Regulatory Compliance
With ever-changing local, state, and federal laws affecting property management, staying compliant is more challenging than ever. Legal advisors and compliance experts can provide the necessary support to navigate this complex landscape. This is especially useful when it comes to navigating the legal implications of property maintenance outsourcing, where it can get complicated.
Financial Management
From rent collection to budgeting for repairs and capital improvements, financial management is a critical aspect of property management. Outsourcing general support to a service provider with a team that is versed in these areas will ensure accurate financial reporting.You can also outsource bookkeeping services to the Philippines if you want to focus on this property management function.
Tenant Relations
The rise of the experience economy has led to increased expectations from tenants for high-quality service. Customer service representatives and community managers can help meet these expectations, improving tenant retention rates.
Maintenance and Repairs
The physical upkeep of properties is a never-ending task that requires a variety of skills, from plumbing and electrical work to landscaping. A general support team of skilled workers can address these needs promptly and efficiently.
Marketing and Leasing
The days of simply putting up a "For Rent" sign are long gone. Effective marketing now involves a mix of online advertising, social media engagement, and even content marketing. Support from marketing professionals can help property managers keep their properties fully leased.
Emergency Response
Natural disasters, fires, and other emergencies can happen at any time. Having a general support team trained in providing emergency response can be invaluable in minimizing damage and ensuring tenant safety.
Administrative Tasks
The day-to-day running of a property involves a multitude of administrative tasks, from answering phones and sorting mail to maintaining records. Administrative support can free up property managers to focus on more strategic activities.
Sustainability Initiatives
With a growing focus on sustainability, properties that implement green initiatives are increasingly attractive to tenants. Support in the form of sustainability experts can help property managers make their properties more eco-friendly.
The Advantages of Outsourcing General Support for Property Management
There are several reasons why US property management companies outsource to the Philippines and other developing countries. Below are the top advantages you can expect from this strategy.
Cost-Effectiveness with a Filipino Workforce
The Philippines has become a hub for outsourcing due to its cost-effective labor market. When you outsource general support to the Philippines, you can save significantly on operational costs.The cost of living in the Philippines is lower than in the US, which translates to lower wages without sacrificing quality. This cost-saving allows you to allocate more resources to core business functions, such as property acquisition and customer relationship management.Want more tips on how to save money when outsourcing property management functions to the Philippines? Check out this article.
Scalability and Flexibility
The Filipino outsourcing industry is known for its flexibility and scalability. Whether you're dealing with peak leasing seasons or navigating through economic downturns, outsourcing general support to the Philippines allows you to easily scale your operations up or down. This adaptability is crucial for US property management companies that operate in a volatile market and need to be agile.
Access to Specialized Skills
The Philippines has a large, skilled workforce proficient in English and familiar with Western business practices. Outsourcing companies in the Philippines often specialize in providing general support services and have a talent pool that undergoes rigorous training.This expertise can bring a new level of efficiency and effectiveness to your property management operations. Whether it's customer service, administrative tasks, or financial reporting, you can count on specialized skills to elevate your business.
Risks of Outsourcing General Support for Property Management and How to Mitigate Them
Along with the advantages, there are also specific challenges that come with outsourcing property management services to the Philippines. Here are some of the key concerns and how to mitigate them.
Quality Control: Maintaining Your Brand's Reputation
For US property management companies, maintaining a high level of service quality is paramount. The risk of quality degradation is a significant concern when outsourcing general support to the Philippines.To mitigate this risk, it's crucial to choose an outsourcing partner with a proven track record in property management support. Establish clear performance metrics and conduct regular audits to ensure that the quality aligns with your brand's standards.
Data Security: Protecting Sensitive Tenant and Financial Information
Data security is a top concern, especially when dealing with tenant information and financial records.US property management companies must ensure that their outsourcing partner in the Philippines complies with both US and international data protection laws. Implement robust security measures, such as encrypted data transmission and secure data storage, to safeguard sensitive information.
Time Zone Differences: Managing 24/7 Operations
One often-overlooked risk for US property management companies is the time zone difference when outsourcing to the Philippines. While a 24/7 operation can be an advantage, it can also pose challenges in coordination and real-time decision-making.To alleviate this issue, establish clear communication protocols and consider overlapping working hours to ensure seamless operations.
Step-by-Step Guide to Outsourcing General Support for Property Management
Learning how to outsource your property management functions is the first step to ensuring the success of the strategy. Here's a step-by-step guide to help you transition smoothly into outsourcing general support to the Philippines.
Step 1: Conduct a Needs Assessment
Before you can outsource, you need to understand what aspects of general support your property management company requires. Conduct a thorough needs assessment to identify the tasks that can be outsourced effectively. This could range from tenant communication and administrative tasks to more complex functions like financial reporting and legal compliance.
Step 2: Research and Shortlist Potential Outsourcing Partners
Not all outsourcing firms are created equal. Research potential partners that specialize in providing general support services for property management. Look for companies with a proven track record, and don't hesitate to ask for client testimonials or case studies. Shortlist a few companies that align with your needs and budget.
Step 3: Request Proposals and Conduct Interviews
Once you have a shortlist, request proposals from these companies. Evaluate their offerings, pricing models, and terms of service. Conduct interviews or virtual meetings to gauge their expertise and cultural fit. This step is crucial for US property management companies to ensure that the outsourcing partner understands the unique challenges and requirements of the industry.
Step 4: Start with a Pilot Program
Rather than diving headfirst into a full-scale outsourcing operation, consider starting with a pilot program. Choose a small, manageable set of tasks to outsource initially. This allows you to assess the quality of service, turnaround times, and other key performance indicators without committing fully.
Step 5: Establish Communication and Reporting Protocols
Clear and effective communication is vital for the success of any outsourcing partnership. Establish regular check-ins, updates, and reporting mechanisms. Use project management tools and collaborative software to keep everyone on the same page. This is especially important for US property management companies dealing with time zone differences when outsourcing to the Philippines.
Step 6: Review and Scale
After the pilot program, conduct a comprehensive review to evaluate the performance of your outsourcing partner. Look at metrics like cost savings, quality of work, and efficiency gains. If the pilot is successful, consider scaling up by adding more tasks or increasing the volume of work outsourced.Read more on how to successfully outsource your property management services to the Philippines.
Is Outsourcing General Support a Game Changer?
The question of whether outsourcing general support is a game-changer for US property management companies will depend on the company’s actual needs. However, there are compelling reasons to believe that outsourcing general support can indeed be transformative.
Transforms the Cost Structure
One of the most immediate impacts of outsourcing general support is the transformation of the company's cost structure. By outsourcing to the Philippines, US property management companies can achieve significant cost savings without compromising on quality.These savings can be reinvested into core business activities, such as property acquisition, renovations, or enhanced tenant services, providing a competitive edge.
Enables Focus on Core Competencies
Outsourcing general support tasks allows property management companies to focus on what they do best: managing properties. By offloading routine but essential tasks, companies can concentrate on strategic activities that drive growth and customer satisfaction. This focus can lead to improved services, better tenant relationships, and ultimately, higher profitability.
Leveraging Global Talent and Expertise
The Philippines has a rich talent pool with expertise in various aspects of general support, from customer service to administrative tasks. By outsourcing, US property management companies can tap into this reservoir of skills, bringing in fresh perspectives and specialized expertise that may not be readily available domestically.
Enhancing Scalability and Agility
The property management industry is subject to seasonal fluctuations and market volatility. Outsourcing general support provides the flexibility to quickly scale operations up or down in response to market demands. This agility can be a game-changer, allowing companies to adapt to changing conditions swiftly and efficiently.
Technological Advancements
Outsourcing companies in the Philippines are often at the forefront of technological advancements in general support services. From advanced CRM systems to AI-powered chatbots for tenant queries, these technologies can be seamlessly integrated into your operations, providing an additional layer of efficiency and customer satisfaction.
Risk Mitigation
While outsourcing does come with its set of risks, such as quality control and data security, these can be mitigated through careful planning and due diligence. By choosing a reputable outsourcing partner and establishing clear performance metrics, companies can manage these risks effectively.
Outsource Your General Support Needs to a Reliable Outsourcing Partner in the Philippines
When it comes to outsourcing general support to the Philippines, you need a reliable service provider that specializes in property management. This way, you will get a team that is knowledgeable in handling and responding to the needs of your property and its tenants.At KDCI, we offer outsourcing solutions to property management companies like you who are looking to get top-notch general support for lower labor costs. From managing finances to monitoring property maintenance, KDCI, with our extensive expertise in supporting property management companies, will help you stay on track with all essential operations, ensuring a well-maintained, compliant, and financially stable property environment.Do you want to learn more about how you can outsource your general support functions to the Philippines? Click the button below to contact us.Contact Us
