Table of Contents
- What is efficiency?
- How can a property management company be more efficient?
- How efficient is your property management company?
- The end
This quarter it’s all about efficiency at Blockworx. We’re taking a deep dive into the topic and bringing you two articles each month on the practice of efficiency. We’ll look at questions like, can you have too much efficiency? Why does efficiency matter? We’ll also discuss simple ways to be more efficient and we’ll take a look at how your team can be more efficient.
In this first article we’re going to look at ways to determine how efficient your property management company is.
What is efficiency?
According to Investopedia, “Efficiency signifies a peak level of performance that uses the least amount of inputs to achieve the highest amount of output. Efficiency requires reducing the number of unnecessary resources used to produce a given output including personal time and energy. It is a measurable concept that can be determined using the ratio of useful output to total input. It minimizes the waste of resources such as physical materials, energy, and time while accomplishing the desired output.”
If we extract the most important elements, we can see that efficiency offers:
- Peak level of performance;
- Reduction in the number of unnecessary resources used, including time and energy, resulting in less waste;
In the case of an athlete, being efficient could equate to 1 second and the difference between winning or not.
As far as a property management company is concerned there are many ways that efficiency can be improved. However, before it can be improved, you need to know where efficiencies can be garnered.
How can a property management company be more efficient?
As we know, property management is a complex business that requires a lot of communication, attention to detail, timeliness, and process management. There are a lot of areas where mistakes can happen and therefore a lot of scope for continually seeking to measure and improve.
Property management companies can be more efficient in many ways and every business will be different.
But if we look at how we would measure efficiency (reduction in the number of unnecessary resources), then we can begin to identify areas for improvement.
This could mean assessing all or some of the following:
- Are SLA’s being achieved and if not why not;
- What processes are in place that involves multiple departments;
- Are suppliers happy with how we work together;
- How happy are the team;
- Are owners/tenants satisfied with the service provided;
- Are there aspects of the business where the same has been done for a long period of time.
This small list is by no means exhaustive, providing some food for thought and you may read through it and immediately think of more examples that are relevant to your team.
The important thing is to sit down and consider where efficiency gains can be made.
How efficient is your property management company?
We have decided what efficiency is and we have looked at a few areas within a property management company that may offer some room for improved efficiencies, so now its time to actually do the assessment.
Decide how you are going to measure each area. What are the inputs and outputs, remembering to consider each and every possible avenue – time, energy, physical resource etc.
As an example, how long does it take to deal with invoices if they arrive by traditional mail? How much time does it take from when it lands in the office until it gets paid? Does this time lag affect relations with contractors? Are there other things the person dealing with this could be doing instead?
For any company, having an efficiency review can be a useful exercise in identifying antiquated processes and taking steps to improve and remove them. Old ways of doing things may not necessarily be the best and could be detracting from more important tasks. Being able to advance and get better is crucial in today’s property management landscape. It is prudent to review efficiencies in a business on a regular basis as there is always an opportunity to improve and introduce simple and smoother ways and means of doing day-to-day tasks.
Could you waste time better when you become more efficient?