8 Scalability Strategies For The Budding Real Estate Mogul

Scalability Strategies

 

Scalability makes or breaks a real estate and rental property business.  If your budding empire does not have the correct systems in place, you will spend more time and money for mediocre results.  Here are some strategies to use to expand your status as a rental property mogul.

 

Daily To-Do Lists

It sounds simple.  It sounds lame, but billionaires swear by the daily to-do list and we can all agree they are doing something right.  Why not you? Create your to-do lists at the end of the day before, so that you can come in in the morning and get right down to business.  This is key for scalability.

An added benefit to creating your next day’s to-do list at the end of the day is that you know what you did and didn’t get accomplished in the current day.  If you wait till tomorrow, you may have forgotten what you were working on the day before and that makes sure tasks are not forgotten.

 

Create A Monthly And Yearly Maintenance Schedule

Property managers and management companies work for their own interest above all else typically, yet your business relies upon or will rely upon them in the future. Make sure they know where your priorities lie regarding property maintenance.

The better your properties are taken care of, the less headaches you will have.  Items such as yearly boiler maintenance, sweeping out common areas, and clearing exterior drains are perfect examples of what should go on a monthly or yearly maintenance schedule.  

 

Identify Areas That You Spend The Most Time On Per Month

No one can tell you where you spend the most time, so keep track of where you are spending your hours and how many hours you are spending in spreadsheet.  You do not have to buy Microsoft Excel, there are plenty of free options such as Open Office, Google Docs, or if you have a Mac, it is on there for free already.  

Tracking your time allows you to identify where and when you should hire an employee, or if you should.  If you are going to grow, you will need employees at some point.  

 

Create Systems Based On What You Identify To Automate Your Time

Force multiplier is a term that you should apply to your business.  A force multiplier is any item that expands the amount of work you can do with the same amount of effort.  The goal is to be as efficient with your time as possible.  Henry Ford made the assembly line.  You need force multipliers.

These force multipliers can be anything.  It can be hiring a company to take all tenant phone calls and open tickets for each one.  Instead of taking every call, you can focus your effort on the tenant with the water leak over the tenant with the broken cabinet door.

A property management company is the most vital AND detrimental force multiplier to your business.  Choose wisely.

Make And Keep Track Of All Business Contacts

You can do this on your phone, spreadsheet, word document, or via Rolodex, but do it.  Who was that friend of a friend who was a plumber that did great work with good rates?  If you do not keep track now, you won’t have their info when you need it most.  

It doesn’t matter if you do not think you will even ever use them, but keep track in case you do.

Learn To Delegate

Delegating sounds easy, and it should be, but it is not.  When you have put countless hours of your blood, sweat, and tears into a business, giving employee or employees a job to do and seeing them do the job slightly different than you can pain you to your core.

You will nitpick and micro-manage left and right if you are not careful.  No employee wants to feel their boss’s breath on their neck.  I hate it, you hate it, so will your employees.  Hire the right ones, so you don’t have to do it.

Delegating may be the hardest part of scalability for the developing business.  Your employees will screw up at some point.  How you as the boss react to their screw up determines how your employees will react to the situation as well.  If you scream at them and throw a tantrum, you will get the same reaction in return.  

Imagine an employee does something the wrong way and costs your company a ton of money.  The employee is normally a great employee, except for this once. Countless companies would fire the employee immediately.  What does this accomplish?  If you keep the employee, you can be assured that they will never make the same mistake again because it was such a huge mistake, but if you fire them and hire a new person, the new person may make the same mistake.

This is not to say that if they make a ton of mistakes all the time, not to get rid of the employee.

Make And Keep Track Of All Business Contacts

You can do this on your phone, spreadsheet, word document, or via Rolodex, but do it.  Who was that friend of a friend who was a plumber that did great work with good rates?  If you do not keep track now, you won’t have their info when you need it most.  

It doesn’t matter if you do not think you will even ever use them, but keep track in case you do.

 

Learn To Delegate

Delegating sounds easy, and it should be, but it is not.  When you have put countless hours of your blood, sweat, and tears into a business, giving employee or employees a job to do and seeing them do the job slightly different than you can pain you to your core.

You will nitpick and micro-manage left and right if you are not careful.  No employee wants to feel their boss’s breath on their neck.  I hate it, you hate it, so will your employees.  Hire the right ones, so you don’t have to do it.

Delegating may be the hardest part of scalability for the developing business.  Your employees will screw up at some point.  How you as the boss react to their screw up determines how your employees will react to the situation as well.  If you scream at them and throw a tantrum, you will get the same reaction in return.  

Imagine an employee does something the wrong way and costs your company a ton of money.  The employee is normally a great employee, except for this once. Countless companies would fire the employee immediately.  What does this accomplish?  If you keep the employee, you can be assured that they will never make the same mistake again because it was such a huge mistake, but if you fire them and hire a new person, the new person may make the same mistake.

This is not to say that if they make a ton of mistakes all the time, not to get rid of the employee.

 

Use Technology

Today’s entrepreneurs have more free technology than ever that they can use to expand their business.  Find computer programs, websites, and mobile applications that increase productivity.  Try looking on websites such as ProductHunt.com that showcase new applications every day.  

It is not enough to find these applications.  You need to actively educate yourself on how to use them and strangely…you should actually use them.  Paper and pencil are items of the past in terms of increasing productivity.  

https://www.producthunt.com/

Allow For Adaptation In The Future

If your real estate and rental property business is to survive for long, you will need to adapt at some point.  Your focal point now, may not be the same focal point in the future.  Allow for some flexibility.  

For example, right now, your business could be focused in single family homes, but three years from now, you may want to shift gears to go after large apartment complexes.  Structure your business in a way that allows you to shift easily.  

 

Overall

Scalability is vital to a growing rental property business.  Can you say you have ever met a successful startup with enough manpower?  Probably not…  Use these strategies to create force multipliers that allow for better efficiency.  Each business is different and there is no one answer to be successful.  Good luck!

Good luck and if you have any questions, leave a comment or email me at Feedback@PlusFourZeros.com. Thanks for reading!

By Trey Stevens

Learn what I did wrong or right from My Journey in real estate and rental properties OR check out other articles on my Blog.

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