There is a enough panic to go around, and around. Crisis. Uncertainty. Indecision. Each is beyond water cooler conversation and part of our real lives.
Professionally, our focus should be on those things we can change at the property level; on how to move the needle in operations.
Other than job loss, and aside from those having to move down in price on their rent, I suspect turnover will slow as people hunker down during this current economic storm.
Maybe this is just a wish (or pipe dream). We are creatures of habit, though, and these huge swings in the pendulum of governments and financial markets make people stand still for a time waiting for calm to prevail.
As property manager’s our two-pronged approach to improving operations in any market conditions must focus on growing revenue and controlling expenses.
Growing revenue even in a sideways economy is possible. Consider any and all incremental pathways to revenue growth.
With respect to controlling expenses, consider upgrading technological systems (software) as a method of “sharpening the pencil” on expenditures. Synergies are everywhere.
Identifying these within specific assets is where to find the payoff in terms of costs savings.
Using revenue of one million dollars, moving the needle two percentage points on revenue equates to $20,000.
Moving the needle two percent on expenses (assuming 38% expenses) equates to costs savings of $7,600.
These are small numbers, I know. Multiply this at the portfolio level and they can be exponential.
These small changes can reflect measurable positive growth in Net Operating Income.
In this economy where so many people are glued to CNN and Fox the progressive property manager will be in the trenches- growing NOI.
And enjoying solid job satisfaction and job security.