Although my property management business is an S-corp entity, I am the chief, cook and bottle washer and as such I have found that by being totally and completely involved in the day-to-day operation, I can make decisions regarding my bottom line that may go against the grain of many corporate real estate firms.
These are some of the ways I have SAVED money over the past year.....
1) I use USPS stamps and delivery confirmation, priority and express mail. I don't use FedEx or UPS and if I have to send something overseas, I use our local DHL from our local pack n'mail. I don't pay for a postage machine lease or have a lot of money loaded into a postage machine waiting for use. I receive my business mail at a post office that is near my home and utilize their window hours when necessary.
2) I no longer make bank deposits for my client/escrow account. Late in 2008, I started using a wealth management account through Merrill Lynch and so now I remote scan checks directly from my computer and desktop scanner. No going to the bank, writing out deposit slips and while the account gains interest, the big savings is in my time and being able to do banking anytime from my desktop.
3) After over 8 years of using laptops for my business and home, I elected to have a pc computer tower and specialized drives installed and operate two monitors for faster processing and storage and multi-tasking. I had an additional shadow drive installed with software that automatically backs up my work. Additionally, I have photo and other important data backed up on jump/travel drives and use them transport data to my home laptop. No expensive monthly online backup service.
4) After years of growing my business with quarterly printed client and farming newsletters, I have stopped them and am now concentrating on my blogging efforts. I promote my blog on my business card, website, return address on my correspondence, owner financial reports and owner property presentation. The propertymangementmaven is EVERYWHERE!
5) Finally, I no longer have any print media ad costs except for a business card size ad in a monthly newsletter that is delivered to an area where I have a large inventory of rental homes. The cost is about $45 per month and I enjoy working with the firm that puts it out. By aggressively marketing rental listings on my website and promoting my website on Craigslist, postlets and their partner sites, I am able to put my listings and company name out and feel that the additional time spent on these daily posts is well worth my efforts as my properties rent faster, my company name is high on search engines and prospective clients appreciate my diligence in posting my property listings. I gave up my yellow page advertising over 5 years ago and now I take the time to review Google and Yahoo as well as other online business listings for my company and monitor entries and reviews with ALERTS for my and my company name.
These items may appear small in the day-to-day of running a real estate business; however, the savings add up and show on my bottom line!!!
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
View our available rental homes online with photos and floor plans
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous
Thank you for sharing.
Great ideas, thanks for posting this and sharing!
Hi Wallace-
We have implemented a lot of these ideas in our brokerage as well., Like you, we really want to re-allocate our time where it best serves us.
--Sara in San Antonio
Great tips that make the difference between a survivor and a thriver in a difficult market.
Wallace,
Great Post. You definitely have cut some expenses, Congratulations.
Thanks for sharing,
Matt Naumann
Thank you....It takes money to make money; however, it does not mean that we need to WASTE money to make money.
Wallace,
Thank you for the post.
I think that it is terribly important to be careful of our spending in this day and time. I have always lived on a budget and it is good training for being a real estate agent right now. I do agree with you that the internet is a good place to be spending our time and energy.
Hope you have a healthy and prosperous 2010
Linda W DeRusha
Clayton NC
Linda * funny incident yesterday, 2 friends that I am mentoring in their new property management business had their PC crash last week - virus got in and their main PC got zapped. Somehow virus software got turned off. I had STRONGLY suggested they back up their property management and word processing files at least weekly and they did not. Now they have been without their main computer for a week AT THE END OF THE ACCOUNTING YEAR * all because they did not buy a $100 8G jump drive for back ups.
Wallace, great information. I am looking into reducing some of my costs while increasing my exposure. Been using technology to do both such as saving money on inks by using continuous ink systems, reducing my computer systems which lower my computer cost and power consumption.
It is amazing how just clearing your mind for 30 minutes each day and thinking of something new would improve your business so much.
Song * I MAY get a new scanner; however, I don't anticipate any new computer equipment or software purchases which ALWAYS take a chunk of operating capital * Often at the WRONG TIME!
WTG - The profit you are seeking will be determined by the way you handle expenses - G.Keller
Do you post rentals on www.rentalads.com ?
No * I use our local CL by posting my listing HTML from my HERO website. I actually post 3 to 5 listings DAILY with links BACK to my website for my full list of available properties
Wallace - Your blog is a great reminder that it is not about what you make in our industry but what falls to the bottom line. Watching your operating costs and making wise changes to your business can make a really big difference on a monthly, quarterly and yearly basis.
Sam * yes, there are 2 sides to the ledger as they taught me in accounting 101. Reducing expenses is a BIG DEAL when income outlook is bad....fortunately, it is NOT bad for me and property management at this time!!