One of the first steps in improving business performance is to document the processes. It easy to get bogged down in the details, so it a good idea to start with simple, high-level diagrams and get general agreement on them. In this post I present a property management process diagram and describe the process steps. I have kept it generic, but I think it is a reasonable starting point for identifying strengths and weaknesses, and where to focus our attention for improving business performance.
A Generic Property Management Process
Each function within your property management business will have its own detailed process definitions. For the sake of illustration, let’s look at things from the point of view of the tenant.
The major steps and activities within each are listed below. You can also download the property management process diagram below.
Lead Management
Begins With: Lead is received from marketing
Ends With: Prospect decides to sign / not sign lease application
Activities:
- Receive lead from marketing
- Make initial contact with the lead
- Enter contact information into CRM system
- Schedule the showing
- Show the unit
- Motivate the prospect to sign a lease
- Record activities in CRM system
Tenant Application
Begins With: Lease application is received from prospect
Ends With: Decision made to approve / reject application
Activities:
- Receive application for lease
- Collect, deposit application fee
- Conduct credit check
- Conduct background check
- Conduct employment check etc.
- Keep prospect engaged and motivated to sign lease
- Inform prospect about application approval
Lease Sign
Begins With: Lease application approved
Ends With: Keys handed to tenant to move in
Activities:
- Prepare lease documents
- Send lease documents to be signed
- Get lease signed
- Collect security deposit
- Collect all payments due
- Confirm unit readiness
- Confirm move in date
- Hand over keys
Tenant Operations
Begins With: Tenant moves in
Ends With: Lease terminates / Tenant moves out
Activities:
- Receive rent payment
- Deposit rent received
- Send reminder of late payment
- Charge late fee
- Initiate collection process for delinquent accounts
- Maintain the facilities
- Maintain exterior environment
- Open tickets for maintenance services
- Perform maintenance activity
- Account for maintenance hours and item charges
- Close maintenance tickets
- Conduct tenant satisfaction surveys
- Increase tenant engagement
- Seek referrals from tenant
Lease Ending
Begins With: Moveout notice received from tenant (or 45 days before lease end)
Ends With: Final payments computed, keys obtained from tenant
Activities:
- Receive notice for lease ending from tenant
- Begin marketing the property
- Schedule pre-moveout activities
- Conduct pre-moveout inspection
- Calculate final payments
- Get keys and prepare for turnover
Turnover
Begins With: Pre-moveout activities started
Ends With: Unit is ready for move in by next tenant
Activities:
- Create turnover plan
- Estimate turnover costs
- Approve turnover budget
- Schedule contractors
- Purchase turnover supplies
- Complete turnover activities
- Inspect the unit
- Approve turnover charges from contractors
Download the Property Management Process Diagram
Click below to download the PDF version of the property management process diagram. If you are ready to do formal process documentation, you can find a template at the ISO website.
