Revenue isn’t everything, but it sure solves a lot of problems. Yes, even with fantastic top-line revenue, you can still be overloaded with expenses, you can still be short on leads, etc., but the revenue gives you breathing room to solve these problems. When I work with consulting clients, usually the first thing we focus on is boosting revenue to AT LEAST the NARPM average of $225/door per month. Until that’s done, everything else is more difficult, because the funds simply aren’t there to enact solutions. And ultimately, for clients in most states, we’re targeting a much higher average revenue per unit (ARPU) of $350+. My own property management company is usually bringing in between $450-$500/mo, so these are very attainable goals.
In order to get revenue up to these levels, though, we have to prioritize. Some revenue streams can be enormous, while others are smaller and designed more with controlling the behavior of tenants and clients in mind. So what are your biggest potential revenue sources?
Let’s take a look at the top five besides the basics of management fees, leasing fees, and renewal fees (if you aren’t charging all of those, start immediately).
Todd Ortscheid
Todd is the CEO of Revolution Rental Management, a property management company in Atlanta, GA. He is also the CEO of Always There Repair, a maintenance coordination and hotline provider for property managers. Along with his wife Abi, he also owns PMAssist, a training and consulting company helping property managers with their revenue, processes, and automation. Todd splits his time between Atlanta and Naperville, IL with his wife, stepson, and Cocker Spaniel.
Todd Ortscheid’s regular column about various fees and revenue tactics to raise your topline.
