Automation is basically the use of technology to execute recurring tasks or processes in a certain business where manual effort can be replaced. It is done simply to minimize costs, increase efficiency, and streamline processes. Automating business can help improve accountability, transparency, and enable accurate data recording, which can be accessed by relevant stakeholders when necessary. It will also retain all process-related communication within the workflow to make execution easier and faster.
Rental businesses have become an extremely profitable investment in this day and age. Tons of money can be earned by starting a rental business but it requires a lot of work and a handful of responsibilities being the owner. So to make your life easier and avoid the hassle of doing paperwork, the key is to automate your rental business. How do you do that? Read on.
Gather information from potential tenants before scheduling a screening. This can be done by having a prepared database of renters who are highly capable of paying and has good moral characters. Prepare online questions once you narrow down your choices of good renters.
PAYMENT ARRANGEMENT THROUGH BANK
ACH otherwise known as direct deposit payment is the fastest way to collect rent. It eliminates the manual steps for receiving rent resulting in less staff energy use. If scheduled, there is less chance for late payments by your tenants. Of all payment types, ACH payments have the lowest fraud rate.
SIGNING OF DOCUMENTS ELECTRONICALLY
Use Docusign or other electronic tools, which is way faster than traditionally using pens and markers.
Property management accounting is different from standard accounting because you not only need to keep track of your property management company’s finances, you are also managing separate accounts for the properties you manage. You can shift the responsibility to an expert who can handle all the administrative work by hiring a rental accounting professional. While they’ll be handling the day-to-day management of your finances, you’ll have the reliable financial data you need to make decisions about your investment. Working with a professional means that you’ll have the best foundation to make those decisions and more time to focus on the aspects of your rental properties that require your attention as a landlord, such as filling vacancies and coordinating maintenance.
If your business generates leads through mailings, yellow letters, postcards, or other mail, then you need to check out yellowletters.com. You can simply upload your documents, your mailing list, and select what product you want, and they do the rest.
“Robo-advertising” agency named Needls can help you create and target your ads. It may be too technical to explain so better check their website.
CUSTOMER RELATIONSHIP MANAGEMENT
This is only for a fairly large or sophisticated number of properties to be rented. You need to manage the relationships so no one slips through the cracks and that is mainly the job of a CRM tool.
The number one complaint about directly owning rental properties is the potential for maintenance calls. But if you have expert people filed on a spreadsheet, the challenge would become a non-factor. You can avoid maintenance crisis by building a good team of subcontractors such as:
HVAC techs (multiple)
Pest control/moisture control
Gutter and vinyl siding contractor
It may take some time up front, but as you build relationships with trustworthy contractors, you can learn to depend upon them to handle issues even without your presence.
END OF THE LINE
This is an important and often contentious part of the landlord-tenant relationship. You need to walk through the property after a tenant moves out in order to determine if they have caused damage or failed to clean the property. If so, you will need to deduct money from their security deposit. It will be a lot easier to deal with if you have prepared an automated list of all the things in good condition before the tenant moves in.
Once you’re done automating your rental business, you can expect to see a boost in productivity brought about by enhanced access. Use cloud-based tools to store your data in a central database which helps in accessing data from any location or device whenever needed.
As time goes by your rental business will become much more transparent. You can track and monitor processes while they are running, which can improve accountability and visibility.
The ability to monitor processes on the go will also help you keep a lookout for errors, fixing them as they occur. Performance reports will arm you with insights so you can take preventive measures against recurring errors.
From a long-term perspective, you’ll begin to notice faster turnaround times and a reduce production cost due to fewer manual interventions.
A business automation system will ultimately enable growing business efficiency. Since it is based on the notion of continuous process improvement, efficiency levels will keep increasing in response.
Author; Kat Sarmiento
|Kat is a Molecular Biology Scientist turned Growth Marketing Scientist. During her free time, she loves to write articles that will bring delight, empower women, and spark the business mind. She loves to bake but unfortunately, baking doesn’t love her back. She has many things in her arsenal and writing is one of her passion projects.|