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Daily Archives: May 10, 2022
Standard Operating Procedures, also known as an Operations Manual, are vital to ANY business, especially those requiring multi-level management. Essentially, it is a step-by-step “how-to” guide describing how you (or someone you hire) should be completing tasks associated with the business. This article will explain why standard operating procedures are essential and how landlords can implement them into their rental property business.
Did you know that 95% of franchise businesses succeed, leaving a failure rate of 5%? In comparison, 20% of non-franchise small businesses fail annually. What’s the difference? Franchisee’s purchase with all systems in place. They have been tried and tested and then taught to the new owner for them to step into a successful business model. Do you plan on DIYing your property management business forever? Can your rental property business run without you? I didn’t think so. So let’s look at why detailed standard operating procedures are essential for you as a landlord.
With Growth Comes More Responsibility
If you are on the path of growing your rental property business so you can supplement a 9-5 job or retirement, then your level of management will constantly be changing. Owning a couple of single-family homes is different from operating a few multi-family dwellings. Multi-family brings in more money, but it requires more time, energy, and know-how.
Sure, you can hand it all off to a property manager, but what if you haven’t budgeted for that expense? What if you cannot find a PM that will work as diligently as you do? Whether to a property manager, a family member, or an employee you decide to hire, you will eventually hand your business off. When you do, don’t you think it would be helpful to that person taking over to have a guide to follow?