In order for any property management company to be successful and lucrative, you must be profitable. With already tight margins, property managers can only afford so much to exceed, let alone just meet, resident expectations. This often leads to property managers to have to choose: Do you want to exceed expectations but make less money? Or protect your margins but sacrifice your reputation?
At Latchel, we don’t think you should have to choose between happy tenants and a healthy bottom line. Our pricing is structured to pad your margins and make your business profitable.
How do we achieve this? Service-enhancing fees.
Regardless of the economic state, implementing resident paid programs hasn’t come without hesitation. Though, we know that people, in any circumstance, are willing to pay more money for a better experience.
In a blind taste test between McDonalds and Starbucks coffee, Consumer Reports results showed that McDonalds coffee beat out Starbucks in terms of quality.
This came as a surprise knowing that people pay much more for a coffee at Starbucks than they do at McDonalds.
The conclusion to draw here is that people are willing to pay more for a better experience. Starbucks creates a better overall experience than McDonalds for the avid coffee-drinker, regardless of quality.
Additionally, 86% of consumers are willing to pay more for a better experience, according to the 2021 Consumer Insights Report. What service level enhancements can you offer to residents and owners that they’d be willing to pay extra for?
What’s eating your margins?
In order to increase your profitability, it is crucial to understand what’s eating your margins. For many property managers, it could be:
- Overhead costs spent on processes that aren’t yet automated. Team members are likely spending too much time on manual tasks whether it’s rent collection, resident screening, maintenance requests, etc. These are all tasks that can, and should be automated.
- Double data entry with platforms that aren’t integrated. When you leverage multiple platforms that don’t integrate, you’re wasting more time manually updating too many systems, which also creates a huge mess.
- Hiked costs of service provider labor.
- Unnecessary dispatching of vendors for maintenance that can be resolved remotely. At Latchel, we provide 24/7/365 video troubleshooting where we can resolve or de-escalate 30% of maintenance issues, saving you money on unnecessary site visits.
- Low resident retention and high turnover costs. Latchel helps property managers increase their resident retention by offering an unbeatable rental experience through service-level enhancements and unparalleled 24/7 maintenance support.
When you identify the things that are eating your margins, eliminate those time-consuming manual tasks, and focus on revenue-generating services that will help improve your tenants’ experience, you’ll be able to thrive and grow through any economic climate.
Latchel can help you pad your margins
Latchel is a software platform that enables property managers to be more responsive and offer better perks while also creating a new revenue stream so they don’t have to choose between happy tenants and a healthy bottom line.
If you’re ready to start increasing your profitability while improving your resident experience, click here to request a demo and learn more about how Latchel can help you achieve this.
Want to learn more about how you can create an anti-fragile property management business and thrive through the unknown? Click here to download our Free Ebook!