The Four Stages of Company Growth

Evernest’s Spencer Sutton and Matthew Whitaker recently delved into the intricacies of property management, focusing on the essential skills required to navigate the different stages of growth in the industry. Their discussion highlighted the critical importance of execution, communication, and hustle in building a successful property management business.

You can listen in on that conversation here, or simply read on for top takeaways.

Let’s dive in!

The Importance of Execution in Property Management

Efficient Task Management

As we all know, managing properties effectively requires the ability to handle multiple tasks simultaneously. This becomes increasingly challenging as the business grows.

Here are a few strategies you might consider to improve execution:

Prioritize Tasks: Use tools like the Eisenhower Matrix to categorize tasks based on urgency and importance. This helps in focusing on what truly matters.
Delegate Wisely: As your business expands, delegating tasks to capable team members becomes crucial. Trust your team and empower them to take ownership of their responsibilities.
Leverage Technology: Utilize property management software to streamline operations, track maintenance requests, and manage resident communications efficiently.

Consistency in Execution

Great execution is not a one-time effort but a consistent practice. Spencer emphasizes the need for property managers to develop routines and systems that ensure tasks are completed efficiently and consistently.

Standard Operating Procedures (SOPs) are essential here. Be sure to develop and document SOPs for any and all routine tasks. This ensures consistency and helps in training new team members.

You should also conduct regular audits. THis can help identify areas for improvement and ensure compliance with industry standards.

The Role of Communication in Building Trust

Effective Communication with Property Owners

Strong communication skills are absolutely essential in property management. That’s especially true when you’re working toward growth. Never forget that effective communication can significantly impact client satisfaction and retention.

Here are some of our top tips:

Be Transparent: Provide regular updates to property owners about the status of their properties, including any issues and the steps being taken to resolve them.
Active Listening: Listen to the concerns and feedback of property owners. This shows that you value their input and are committed to addressing their needs.
Clear and Concise Messaging: Avoid jargon and ensure that your communication is clear and easy to understand. This helps in preventing misunderstandings and building trust.

Communication with Residents

Effective communication with residents is equally important. It can lead to higher resident satisfaction and retention rates. As Spencer says, “Great communication builds trust with the owners. If you make a mistake, that trust will cover a multitude of errors down the road.”

We’ve found that prompt responses are key. Make sure your team is responding to resident inquiries and maintenance requests as soon as reasonably possible. This shows that you care about their well-being and are committed to providing excellent service.

You’ll also want to provide regular updates. Keep residents informed about any changes or updates that may affect them, such as maintenance schedules or policy changes.

Embracing the Hustle: Perseverance and Dedication

The Value of Hard Work

Spencer and Matthew both have first-hand experience when it comes to working tirelessly, including weekends, to establish and expand the business. This usually comes down to perseverance and dedication in our highly demanding industry.

Here are some of their key insights:

Embrace the Grind: Understand that building a successful property management business requires continuous effort and dedication. Be prepared to put in the hard work, especially in the early stages.
Stay Motivated: Set clear goals and celebrate small wins along the way. This helps in maintaining motivation and staying focused on long-term success.

Overcoming Challenges

Matthew and Spencer also reflected on the early stages of their business, recalling the challenges they faced in building Evernest from the ground up. They highlighted the importance of understanding the difficulties and the need for consistent effort to achieve long-term success.

Start by learning from your failures. Analyze what went wrong and use the insights to improve your processes and strategies.

Then, seek support. Surround yourself with a supportive network of mentors, peers, and industry professionals who can provide guidance and encouragement.

Adapting to Market Fluctuations

Recognizing Market Cycles

It’s also important to keep in mind the cyclical nature of the real estate industry and the importance of recognizing and adapting to market fluctuations. After all, the only constant is change!

Here are some tips we’ve found to be helpful:

Stay Informed: Keep abreast of market trends and economic indicators that may impact the real estate industry. This helps in making informed decisions and planning strategically.
Flexible Strategies: Develop flexible strategies that can be adjusted based on market conditions. This ensures that your business remains resilient during challenging times.

Strategic Planning

Remember: Nobody falls face-first into success. You’ll need to have some kind of strategy, particularly as your business grows.

Scenario planning can help accomplish this goal. You can use this method to anticipate potential challenges and develop contingency plans. This helps in preparing for different market conditions.

You also can’t compromise on a long-term vision. This helps ensure you stay focused on your goals, even during market downturns.

Transitioning from Managing Properties to Managing People

Developing People Management Skills

As your business grows, eventually you’ll have to transition from managing properties as an individual contributor to managing people and properties as a leader. Of course, there’s a distinct skill set required for effective people management.

The right skills to focus on will depend on you and your business, but it can’t hurt to at least explore:

Leadership Development: Invest in leadership development programs to enhance your people management skills. This includes training in areas such as conflict resolution, team building, and performance management.
Empathy and Understanding: Develop empathy and understanding towards your team members. This helps in building strong relationships and fostering a positive work environment.

Building a Strong Team

You’ll never accomplish your goals alone. You’ll need a competent, hard-working team to make it happen.

Here’s what we’ve learned as our workforce has expanded:

Hire the Right People: Focus on hiring individuals who align with your company’s values and culture. This ensures that you have a cohesive and motivated team.
Continuous Training: Provide continuous training and development opportunities for your team members. This helps in keeping them engaged and improving their skills.

Final Thoughts: The Four Stages of Company Growth - Phase One

By mastering execution, communication, and hustle, property managers can build trust with owners, enhance resident satisfaction, and overall achieve long-term success. By implementing the strategies and tips discussed above, you’ll be better equipped to navigate the challenges of the industry and drive the growth of your businesses. And we’ll be here to help every step of the way!

Ready for More?

We know what it’s like to grow a property management business from 30 doors to more than 16,000. The journey was anything but easy, and we learned tons of lessons along the way. Our desire to share that knowledge with you motivated us to start the Evernest Property Management Show podcast, a weekly newsletter, and our monthly webinar series for property managers.

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