MAIN IMAGE: Johann van der Merwe, MD of WeconnectU Intelligent Property Management Software
Johann van der Merwe
There is nothing worse than working day and night to deliver a quality service to your customers only to receive constant pushback over fees that barely cover your overheads.
It is an all-too-common occurrence in the property management industry, and one that stems from a quite simple, yet pervasive problem. Property managers do not typically communicate their value very well.
It is a universal truth that people only pay for value they perceive. In other words, if a customer cannot see your full value, they are not going to pay you for it. The problem in the property management industry is that all the usual interactions with customers tend to focus on how value is delivered instead of what that value is.
Yes, rental managers find tenants, collect rent, and manage maintenance, arrears, and leases. Community managers manage financials, compliance, maintenance, warnings and penalties, clearance certificates, meetings, and reporting. Maintenance managers oversee ingoing and outgoing inspections, reported maintenance issues, repairs, and rental escalation and renewal.
But all rental managers, community managers and maintenance managers offer similar (if not identical) suites of administrative services. That is how you deliver your value, not what your value actually is. Unfortunately, that is often all customers ever really get to see. As a result, they operate under the mistaken assumption that their property managers are simply administrative assistants with little to set their services apart from the competition, aside from cost.
So, how do you change that perception and remove price as your primary service differentiator? You communicate your value – the what and not the how – in your customer’s own language.
Let us face it, no investor buys property because they like tenants, or joins a body corporate because they enjoy AGMs. They do it because they want a good return on their investment. That is where the value of a good property manager lies – not in simply shouldering the administrative burden, but in positioning a property asset (or community, or portfolio) for optimal growth, minimal risk, and maximum ROI.
All the administration, communication, and regulatory hoops that property managers jump through on behalf of their clients are simply the means to that all-important end. Your ability to achieve this end (through your unique combination of professional expertise, comprehensive services, and service quality) is what sets you apart from your competitors. That is your value, and that is your most powerful bargaining chip.
Of course, communicating that value to your customers takes more than just a lightbulb moment. The trick lies in carrying a consistent value proposition through every customer interaction. Each email, phone call, meeting, report etc. is an opportunity to create a “wow” experience that speaks to the value you deliver. A “moment of truth” for your clients to see what they are actually paying for.
That means empowering your teams with the right messaging to connect with customers as investors, across all platforms, including one-on-one interactions, your website and social media presence, and any sponsorships, PR, or events in which you are involved.
Do not be afraid to give customers a glimpse behind the scenes, either. Seeing exactly how many complex tasks you juggle to keep their asset compliant, and performant is a powerful reminder of the additional value of your time, hassle, and risk-prevention services.
But most importantly, make sure your customers can see the one thing they value above all: how well their asset is performing in your capable hands. Communicating this – preferably through regular Asset Management reports with tangible feedback on key performance indicators – is the number one way to ensure your investors fully appreciate the extraordinary value you provide.
And, in my experience, when they appreciate that value, they are also very happy to pay you for it.
- WeconnectU offers a truly end-to-end Property Management Ecosystem that solves all the major challenges in Community Management, Rental Portfolio Management, and Inspections & Maintenance Management. That includes empowering users to communicate their true value to their clients using intelligent reporting. These reports have proven to be extremely effective at helping property managers reposition themselves in the mind of their clients, enabling clients to see beyond their administrative skills to appreciate the full value of the service provided.Scan the QR code to find out more about how WeconnectU can help you end pushback on fees while maximising your compliance, manageability, scalability, and profitability.
