flying-by-instruments
Aug 11 2018

Property Managers and Flying By Instruments

There’s a saying that “Altitude is the pilot’s friend”

Altitude provides the pilot more time in the event that something goes wrong. They have more time to troubleshoot and correct the problem. If they can’t correct the problem, they have time to call for assistance, stabilize their descent and worst case, locate a suitable crash site.

What altitude is to a pilot, time is to a property manager.

A pilot’s landing can be symbolic to a property manager’s new lease, rehab project, transition to new rental property management software, meeting financial goals, high occupancy rate or any other milestone. Time provides the property manager the chance to deal with any ‘emergency’ or unexpected situations that may pop up. Maybe a problem with a large potential client, overseeing issues during a rehab, bad tenants etc.

The more ‘time’ you have, the better chance of completing the task or meeting your goals on time.

Unusual Attitudes

There’s a training procedure for pilots called unusual attitudes. This is a training exercise that teaches you about spatial disorientation. It trains you to trust your instruments (tools) and not rely on how you “feel”.

When your equilibrium is disrupted, such as if you were to fly into a cloud, your body might tell you that the aircraft is doing something that it isn’t. You must rely on the instruments to recover.

So how does this apply to Property Managers?

Just like a pilot must trust his/her instruments, managers must learn to trust the tools they have available. A good property management software will provide a lot of very useful tools to manage properties. Rental property management software typically includes the following tools:

  • Work Order maintenance tracking
  • Financial Reports
  • Reminders for tasks, property maintenance, asset management
  • Background screening
  • Automated tools such as: Late Fees, Owner Statements, Management Fee Report, Invoice Reminders, Recurring Transactions
  • Owner app
  • Onsite inspections
  • Tenant app – online payments, submit work orders, communicate

These are a small subset of typical tools that are included in property management software.

Use the background screening to confirm your applicant’s history (don’t rely on your ‘feelings about them). Use the financial reports regularly to see how your company and each owners’ properties are performing. Trust these reports (instruments/tools) to make appropriate decisions.

Use your tools to track and help identify changes in the market.

When these markets change, they can knock you off course if you’re not prepared. They are the unexpected situations that can alter your course and cause you and your team to miss the stated goals.

What you do in one market may not work in another market.

Don’t get complacent otherwise you will miss goals and worst case, you may be out of business.

There are 6 primary flight instruments that are used by pilots. (here’s two of them)

flight-instruments

The Attitude Indicator

depicts the position of the airplane in relation to the horizon.

It shows whether the wings are level, and if the plane is climbing or descending, or flying straight and level.

Think of the horizon as the end of year goals.

Make active use of the tools from your rental property management software to tell you where you are ending each month or year end. Use the tools to also identify if you are climbing (growing), level flight (steady) or descending (loosing revenue).

Attitude-Indicator

Heading Indicator

This is a no brainer – It simply tells you the direction you are facing. When combined with all the other tools, it will indicate where you are heading.

Notice it doesn’t tell you where you are. It tells you where you are heading.

Sitting on the runway facing South (from Georgia) isn’t going to get you to Florida if you don’t utilize the other tools that airplane provides to accomplish your goals. (such as engine power, lift etc.)

So, while it is important to be facing the right direction, you also need to move in that direction. Use all the tools that property management software provides to move your company in the direction that you are facing.

heading-indicator

Finally – Final Approach

Pilots rely on a lighting system to help guide them on their final approach to touch down.

Lighting systems are a vertical guidance system designed to assist the pilot with their altitude while on final approach. They provide visual descent guidance information during the approach to a runway.

All white is too high, all red is too low, 2 white and 2 red means correct glide path for the distance to the runway.

So, what is your landing? A new client? Meeting year end goals? Higher occupancy rate? Fewer evictions? Better quality tenants?

I look at it this way, property management software is your lighting system. It is provided to help guide you all the way to touchdown.

If you use all the tools that your rental property management software provides, from takeoff to landing, you will be able to log what every pilot hopes to log, the same # of landings as they have take offs.

About PropertyZar

PropertyZar is a real estate technology company specifically in the web-based property management software for owners and professional property managers. Learn more www.PropertyZar.com