How Agents Can Stop Wasting Their Budget
Running a rental agency isn’t easy. Whether you’re trying to recover your start-up costs or are weathering a rough rental season, every penny counts. If you run your own rental agency, you already have a good idea of what your budget is – but is that money allowing you to expand and improve your business? By identifying where you’re wasting in your spending, you’ll know where you can cut down or free up more money to put you ahead of competition.
Here are 5 ways to examine and identify the extra costs in your leasing agency’s budget:
Write everything down.
Start by writing down all your expenses in a normal business day, every day, for a week. Then, sit down and take a look at it. Where are you spending the most or the least? If you’re trying to cut down on spending, this is a good way to identify unnecessary expenses.
Collaborate with your team.
Sit down with your coworkers and examine the office’s spending habits. Getting input from different people in the office will give you more views on how you might be waste in your budget. Work with them to come up with a new spending strategy that will allow you to be just as efficient, while spending less.
Do your research.
While it’s buying office supplies, hiring legal services, or renting office space, can you get the same services somewhere else for cheaper? Call local businesses in your community, read their customer reviews, or ask other agents where they get the services.
Understand the cash flow.
Similar to how you know where each dollar of your spending goes, you need to know how that spending helps you turn a profit. How much does it cost to acquire a customer, and what is the lifetime value of each client? After you factor in taxes and maintenance costs, how much profit did you make? Use this knowledge to make improvements to your business that will improve the cash flow.
Are you maximizing your time?
Time is money, so productivity is essential when you’re trying to justify your spending. How does each item help you work towards the end goal of leasing apartments and making a profit? Are you spending too much time in meetings and not enough marketing rental listings or scheduling apartment showings? Look at your schedule and see if reorganizing it can help you be more productive.