Top 7 reasons your business should partner with a proactive property management company
Partnering with a Perth property management company is an intelligent, strategic approach for a wide range of businesses that work with investment clients.
The most successful business partnerships find creative ways to unlock synergies that create mutually beneficial opportunities. As many supplementary professional services feed into the investment property market, opportunities exist for these organisations to grow their business, revenue, and service portfolio through partnering.
Which types of businesses can benefit from partnering with a property management company?
Partnering with a proactive property management company is a fantastic step for property industry participants and organisations with exposure to property to extend their service portfolio.
Businesses which have a direct relationship with the property industry can leverage the benefits of partnering with a proactive property manager. These businesses can include:
- Buyer’s agents,
- Sales agents,
- Finance brokers,
- Property developers, and
Partnering with a property management company for these types of businesses is a logical next step as it extends their service portfolio.
However, other businesses can also gain the strategic benefits of partnering for referrals as well. These include:
- Financial planning firms,
- Accounting firms, and
- Lawyer firms.
These types of businesses all deal with investment-related matters as part of their services. By forming an alliance with a property management company, they can provide their clients peace of mind over their property interests as well.
There are additional benefits each of these businesses can leverage. Here we outline the top seven benefits.
The top 7 benefits of partnering with a property management company
In addition to expanding the service they offer their clients, there are additional business advantages for organisations that partner with a property management company. These benefits include securing an additional revenue stream, uncovering new business opportunities, enhancing their business credibility, and amplifying their brand.
1) Additional revenue streams
Every business needs a healthy revenue stream to ensure its sustainability. Typically, an organisation derives the majority of its revenue from its core competency. However, diversifying and unlocking additional revenue streams mitigates risk while improving profitability. During low trading periods, a supplementary income source can help with cash flow and bolster operating earnings.
Partnering with a property management company can provide that additional source of revenue many organisations need. Referral partner programs can compensate organisations with a commission for every prospect they refer. In addition to the direct monetary reward, these partnerships may also provide additional strategic opportunities. Joint sales and marketing campaigns can lead to new customers and markets while strengthening business connections.
2) New business opportunities
As mentioned, partnering with a property management company can lead to more business opportunities. As a partnership should be a mutually beneficial relationship, access to a broader business network can help organisations market their services to an extended customer base. If the property manager operates in different environments, it could also allow partners to reach new markets.
Partnerships are all about strengthening business connections among client outcome focused professionals. They allow organisations to access new customers and promote their service offering to new markets. As the property management company has access to a different set of potential clients, they can act as a supplementary sales force for their partners. For example, if one of their clients require professional accounting or legal services, they could pass on the opportunity to organisations that form part of their referral partner program.
3) Access to information
Every organisation needs access to relevant, timely information. Access to business-critical data can help enterprises develop effective strategies and make the right decisions. Partnering with a property management company can help organisations access supplementary business intel. As enterprises typically only gather data relevant to their core competencies, they may miss opportunities hidden in the insights their partners collect.
Property management companies collect a great deal of data about the state of the property market. They monitor statistics such as vacancy rates, demographic profiles, average property prices in particular areas, and the latest sales statistics. By partnering with a property management company, organisations can access this data on demand. As the state of the property market is a critical macroeconomic indicator, access to this data can help businesses make effective decisions.
4) Competitive Advantage
Partnering with a property management company can create a competitive advantage for many organisations. Joining a network of reliable partners that complement each other’s services can help fill gaps in the enterprise’s service portfolio. Besides providing their clients with a comprehensive service, partners also gain a competitive advantage from access to information, pooled resources, and subsidised sales and marketing campaigns.
Partnerships also enhance an organisation’s competitive advantage by increasing its profitability. Partnerships reduce costs by providing access to quality services and other resources that would be far too expensive to develop in house, especially if this is not a core competency. By joining forces and pooling resources on activities, partnerships are often catalysts for increasing profitability while reducing risk – critical factors in gaining and keeping a competitive advantage.
5) Adding value to customers
Every commercial business needs customers to procure its products and services. In a competitive free market where no monopoly exists, organisations need to innovate continuously. As customers can switch suppliers with little to no effort, retention of existing customers is a vital strategic imperative. Not only does it ensure the sustainability of the enterprise, but it is also a fundamental prerequisite to business growth. Selling more to the same customer base is far simpler and more cost-effective than finding new customers.
Professional services organisations that partner with a property management company can add value to their existing customers. By offering their clients property management services in addition to their core value proposition, organisations can increase their relevance. For example, a financial planner who helps individuals invest their savings can start offering them property-related investments as part of their portfolio. Besides adding value to their customers, these organisations can also qualify for a referral fee creating an additional revenue source.
6) Brand awareness
An organisation’s brand is a vital strategic element and forms a core component of its marketing force. A strong brand improves recognition, creates trust, supports advertising, and enhances the financial value of an enterprise. Partnering with another business increases the value of an organisation’s brand. If a business aligns itself with a strong player in the market, it enhances the image and credibility of the enterprise.
Partnering with a property management company can help organisations build a stronger brand. Besides the enhanced credibility gained by aligning with a strong industry player, partners also gain increased market awareness. One of the primary benefits of partnering with a property management company is access to a broader customer base and extended business network. This partnering perk exposes an organisations brand to individuals and businesses without the related marketing costs. Furthermore, as the brand is allied with that of the property management company, it gains credibility by association.
7) Cost Savings
In business, there are two ways to increase profitability, increase revenue or decrease cost. Partnering with another organisation can help reduce an enterprise’s expense line through resource sharing. Typically, strategic partnerships often involve joint sales, marketing and even production activities. As the organisations share these costs, the result is a reduction in budgeted marketing expenses. This model can also be more efficient and effective than solo marketing efforts. For example, the market and customer information provided by the partner could provide the insights needed to target the right customers at the right time.
Organisations that partner with a property management company can leverage the partner’s marketing reach to reduce costs. In addition to reducing the actual cost of the marketing activity, access to the partner’s customers can also increase the effectiveness of any marketing campaign. As the organisation and the property management company have customers who form part of the same market segment, the message will have relevance. This approach is a far more effective strategy than a mass marketing campaign that inadvertently targets segments with no interest in a service offering.
Partnering with the leading proactive property management company in Perth makes business sense
Partnering with a property management company offers organisations a strategic approach to grow their business. Over and above the additional revenue streams, these strategic relationships can also open doors for further business. Besides the direct business benefits that come with these partnerships, organisations can also benefit from access to market information, increased brand awareness, and reduced costs.
If we consider the various benefits of partnering with a property management company, the core element is reciprocity. Business partnerships succeed when there are mutual benefits for both parties. Joint initiatives can give both organisations a competitive advantage, increase their brand awareness and offer their customers a broader portfolio of services.
Ready to discover how a partnership can benefit your business?
Discover what a partnership with HERE Property can mean for your business today.
Contact Lauren Swinfield on 0455 036 356 or at email@example.com