In today's competitive real estate market, property owners and asset managers are constantly searching for ways to optimise and increase value of their operating assets.
One strategy that we are seeing gain popularity is insourcing property operations, which involves bringing essential tasks and functions in-house, rather than outsourcing them to external vendors or service providers. In this blog, we will explore the various advantages of insourcing property operations and how it can positively impact your business.
Enhanced Control and Oversight
One of the main benefits of insourcing property operations is the increased level of control and oversight that it provides. Property owners can directly influence the quality of services provided by having an internal team manage key functions like building safety, compliance maintenance, repairs, and focusing on tenant satisfaction and occupancy. This ensures that the services align with their brand standards and objectives.
Cost Efficiency
Insourcing property operations can lead to significant cost savings in the long run. While insourcing may initially appear cheaper due to the absence of internal staffing costs, over time, the expenses associated with third-party service providers can accumulate. By leveraging internal resources and optimising processes, insourcing allows for better cost management and control.
Improved Responsiveness
In-house property operations teams can respond to requests and emergencies more swiftly. With dedicated staff on-site, property owners can promptly address tenant issues, conduct inspections, and carry out necessary repairs. This responsiveness can lead to increased tenant satisfaction, retention, and positive word-of-mouth, ultimately benefiting the reputation and profitability of the property.
Fostering a Team Culture
By insourcing property operations, property owners can create a cohesive team culture within their organisation. This allows for seamless collaboration, shared knowledge and expertise, and a sense of ownership among employees. A strong team environment often leads to increased productivity, employee satisfaction, and a higher quality of service provided to tenants.
Tailored Solutions
Every property has unique requirements, and insourcing property operations allows property owners to develop tailored solutions that best fit their specific needs. Instead of relying on standardised services offered by external vendors, an in-house team can customise strategies, maintenance plans, and tenant engagement initiatives based on the property's characteristics and the owner's vision.
Scalability and Flexibility
Insourcing provides greater scalability and flexibility for property owners. As the property portfolio expands, having an internal team allows for easier allocation of resources and the ability to adapt to changing demands. It provides the freedom to adjust operations as necessary without relying on external providers or being constrained by service contracts.
Insourcing property operations offers numerous advantages for property owners and managers. It provides greater control, cost efficiency, responsiveness, and customisation in meeting the unique needs of each property. The positive impact on tenant satisfaction, employee engagement, and overall profitability cannot be overlooked. While outsourcing may have its benefits in certain situations, insourcing allows property owners to build a dedicated team and foster a culture of excellence. Ultimately, it is a strategic decision that can contribute to the long-term success and growth of a property management business.
At Oyster, we have a dedicated real estate operation team with years of experience working with property owners who are looking to establish their own operating platform. If you are planning to take control of your own operations, we can provide advice, support and internal resourcing solutions.
If you’re interested in hearing more information about this opportunity, please reach out to Kevin Redman: kr@oysterpartnership.com