Growth is always a top goal when you oversee a property management company. Winning new business takes some work, but you continue to close deals because your team has exactly what condo and HOA communities are looking for.

The real challenge is maintaining that high level of service as your portfolio grows. Adding properties without strengthening processes and oversight is an easy way to lose clients and overextend staff.

However, with the right approach, property management companies can shift from survival mode to top performers.

This guide will show you how to master residential portfolio management so that growth doesn’t compromise service, or your company’s well-being.

Table of contents

• Prioritize efficiency (because you can only work so hard)
• Implement advanced financial strategies
• Promote fair and consistent rule enforcement
• Avoid situations that could have legal consequences

Prioritize efficiency (because you can only work so hard)

You could work 18-hour days, every day, for the next 2 years, and your to-do list would still have an exhausting number of items to complete.

Working harder is not the solution; it’s simply impossible to outwork your workload.

Instead, residential portfolio managers are encouraged to explore how they can improve productivity and nudge client satisfaction in the right direction.

Here are some starting points to consider:

Use property management software

If your company is holding on to familiar manual processes, it’s time to try something new. Whether you manage condos, HOAs, or you have a mixed portfolio, software is critical in minimizing manual tasks, labor hours and miscommunication.

Some companies are using software, but are still having to find workarounds or overcompensate for shortcomings. If this is you, then consider upgrading to a solution that actually works for you.

Effective property management software will:

• give you total oversight so you can manage your entire portfolio with confidence
• allow you to switch from one workspace to another using the same login
• offerflexibility so you can implement different processes for different communities  
• be easy to use so that staff and residents make full use of the tools available to them

Make data-driven decisions

Another perk of having a great property management software is that the system will store and organize data automatically.  

This data can be used to make proactive, fact-based decisions about finances, maintenance and communication.

AI is going to make it even easier for management companies to make data-driven decisions.

Standardize procedures and policies

Implementing standardized procedures in each community will save you time and headaches.

As an example, instead of accepting reservations through phone calls, email and verbal requests, your staff should direct residents to submit requests through a resident portal. By doing this, requests are stored in one place, and management can work on them at any time since they live in the cloud.   

Implement advanced financial strategies

Management companies have a first-hand understanding of the impact that inflation has had on community associations. The cost of everything has gone up, forcing managers to find creative ways to help their clients balance the budget.

Management companies must also be prudent about their own financial health to ensure they are still generating enough revenue without overcharging clients.

It’s a delicate balance, but it can be done.

Proactive financial planning and management

Condominiums and HOAs must have detailed annual budgets covering all expected income and expenses, capital improvements, and long-term projects.

Accurate data is required to build a realistic annual budget. Sometimes, the board will need more help than your staff can reasonably offer. Don’t hesitate to hire a financial professional if this is the case.

Long-term reserve planning

Ensuring your clients’ reserves are adequately funded is another must. Few things shake an owner’s confidence faster than a big special assessment.

By allocating funds strategically, it’s easier to maintain property values without having to levy a special assessment.

Commission reserve studies regularly, review and use the reports, and consider making low-risk investments to generate additional money for your clients.

Leverage tech and AI tools

Portfolio managers are strongly encouraged to use software that can help automate and improve accounting processes.

Trusted accounting software like QuickBooks not only reduces workloads for management, but it creates a digital paper trail of every payment, invoice and outstanding balance.  

AI is also transforming condo and HOA accounting in a big way. Systems designed to forecast budgets use machine learning and predictive analytics to give communities greater financial clarity. The result? More accurate and efficient financial plans, and less stress. 

Encourage self-service

When owners and residents can do more for themselves, managers don’t have to respond to so many questions and requests.

To encourage self-service, find a property management software system that has tools for managers, owners and residents.

These tools will allow them to review official records, pay dues, and reserve amenities, whenever it is most convenient for them.

Promote fair and consistent rule enforcement

It’s not up to you to make rules and policies for your clients, but they will expect help with proper rule enforcement.

To avoid the appearance of selective enforcement and criticism from residents, managers must ensure that all violations of rules and regulations are enforced in a consistent, uniform manner.

Pro tip – don’t try to manage this responsibility without help. Paper documents and spreadsheets don’t cut it anymore. Your team could spend its entire day issuing and updating violations, and there would still be work to do.

Instead, look for a tech solution that will help reduce the workload by streamlining violation processes.

Naturally, different communities will have different rules, but an effective violation management tool will be able to accommodate those differences.

Some solutions even have a mobile app and geotracking so that managers can issue and follow up on violations as they are conducting site inspections.  

Avoid situations that could have legal consequences

Legal matters create additional stress that portfolio managers do not need. Furthermore, they can be costly and time-consuming. While it’s not always possible to avoid lawsuits, there are things you and your staff can do to reduce the chances of getting sued.   

There are a few common reasons why residents consider bringing a lawsuit against their management company:

• Breach of contract
• Failure to keep up with property maintenance, as per the written agreement
• Negligence of grounds and common properties

Managers should strive to understand their obligations, practice accurate record keeping, and be as transparent as possible to minimize risks and conflicts.  

Conclusion

Scaling without sacrificing the premium service you are known for providing is not easy. But it shouldn’t feel impossible, either.

By standardizing processes, using software and other tech tools to automate and reduce workloads, staying transparent, and leveraging the unique qualities you already have, your company should expect another successful year.