Four Tips For Setting Your Property Management Budget

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The world of property management is a complex but rewarding place. To grow your business and your profits, it’s essential that you know just how to market your property to prospective residents.  

Effective marketing isn’t easy, but it can lead to great results if you work with the right budget and the right people. Before you decide just who you’re going to work with and just how you’re going to market, you should be educated on the current landscape of the property management marketing world.  

In this blog, Multifamily Matrix has highlighted and explained four tips that will help you develop your marketing plan. When you put these strategies into action, you’ll start to see results. 

Tip 1: Get Educated On Your General Budget 

Take advantage of the resources that are available to you. While it can be overwhelming to sift through all the available budgeting tools and find the best one for your property or properties, it’s important to take the time to do just that. Investing time now will save you headaches later. 

You should also take advantage of resources like property management podcasts and industry reports. Information from these sources can help you make better predictions about what you’ll need to budget for in the upcoming year. 

Tip 2: Take Care Of Those Taxes 

We have to pay our taxes, whether we like it or not. If you’re new to property management, you need to make sure you understand the taxes you have to pay sooner rather than later. When small businesses received additional support to weather the storm of the COVID-19 pandemic, that meant changes to the tax code. In 2020, there were changes made to the IRS Form 1099 and 1099-NEC. New COVID-related tax credits are also now available.  

If you’re responsible for more than one property, or if your property is large, it’s a good idea to work with an accountant. Make sure you take the time to research the accountants in your area before you decide who you’ll be working with. You need to choose someone who is trustworthy, reliable, and focused on helping you pay all the taxes you need to, and not a penny more.  

Tip 3: Focus On Your Marketing Priorities 

Once you have established both your general budget and you’ve made a plan for your taxes, it’s time to think about how you’re going to market your property. There are so many different ways to accomplish your marketing goals – but you can’t achieve any of them without having a budget.  

Therefore, your first step needs to be realizing just how much you can spend. Then it’s time to decide if you want to market with the help of another property professional or if it makes more sense for you to contract with a marketing agency to take care of all your marketing efforts.  

This is an important decision that needs to be made based on your budget, your time, and your specific property (or properties). Once you’ve chosen who you’re working with, it’s time to think about your goals.  

There are so many questions you need to ask, and it’s difficult to find the answers on your own. That’s why it’s essential to partner with a professional you can trust who has experience in property management marketing. 

  • Do you want to appeal to a specific type of resident?  
  • … if so, what is the profile for that resident?  
  • How many new residents do you need? For what types of buildings? 
  • Where do you want to advertise?  
  • Does it make more sense for your company to invest in Facebook ads, Google ads, sponsored Instagram posts, or all three?  
  • How much money should you be spending on ads for each platform?  
  • What should those ads look like? 
  • Who will write the copy for those ads? 
  • Should you invest in video ads? 

These are some of the most important questions you should ask and answer about your marketing goals. As you journey through the marketing process, always keep in mind the kind of audience you’re targeting and what kind of amenities you can offer. 

It’s tempting to be overwhelmed by all the questions that go into strong property management marketing. But that’s why you should work with an expert, either in property management or in marketing, to find the best answers to these questions for your situation specifically.  

Tip 4: Budget For Your Property Marketing Campaigns 

As you come up with a plan for your overall marketing strategy, you’ll realize you need to think about campaigns. Campaigns are typically short, targeted bursts of advertising that generate new leads. For campaigns to be successful, there has to be evidence that you’ll deliver on what they promise.  

You should determine how many campaigns you can afford to run per quarter. Think about specific features of your property that you’d like to highlight, as well as the times of year when people are likely to move to a new place.  

Marketing campaigns are an essential tool in the property manager’s toolbox. Not using this tool means lost leads and lost revenue for your business in the end. 

In Conclusion…  

You can’t run a successful marketing campaign without a budget. It’s important to educate yourself on what expenses you should be preparing to spend on in addition to calculating your predicted income. Once you’ve worked out your general budget, make sure you’ve allocated for taxes. Then decide who you’re going to work with, which isn’t an easy choice to make, and start developing your marketing plan. Last but not least, think about budgeting for specific targeted campaigns, which are truly effective in garnering leads.  

Multifamily Matrix has the expertise you need to make the right decisions on launching your marketing strategy. Contact us today for more information about how to make your property dreams become a reality.  

This article contains general information and does not contain legal advice. Buy It, Rent It, Profit is not a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.