The South African property management landscape is evolving rapidly, driven by changing market conditions, technological advancements, and heightened client expectations. These shifts have created a growing gap between the value clients expect from their managing agents, and the value they are able to perceive.

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For property managers, bridging that gap is the key to thriving in today’s dynamic environment. This article explores the nature of the gap, and the building blocks you can use to bridge it effectively in your business.

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The challenge of perspective

Like beauty, value is in the eye of the beholder. That means property management clients (trustees and owners) and their managing agents tend to have very different perspectives – and therefore perceptions – of value expected and value delivered.

The result is that both are experiencing a value gap (a gap between expectation and perceived reality) that is contributing to the chronic undervaluation of the property management industry.

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Let’s take a look at what that gap looks like for clients and managing agents, respectively.

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The value gap for clients

For trustees and owners, expectations typically revolve around meeting the financial, legal, and administrative responsibilities of their properties while cultivating a secure and appreciating property asset.

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Their property management experience, however, tends to be largely focussed on the broad strokes of administration, leaving them with the impression that only their simplest expectations are being met.

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Their more specialised – and more valuable – asset management requirements appear to not even be on the radar, leaving them understandably reluctant to pay specialist rates.

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The value gap for managing agents

Managing agents, on the other hand, are fully aware of the amount of time, effort and skill that goes into managing property. They’ve experienced first hand the increasing complexity of the industry and its regulations, and the rising challenges of things like loadshedding, the work-from-home movement, and ongoing economic pressure.

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Perhaps more importantly, they also understand the link between the tasks they complete on a daily basis and the performance of the property asset, and can relatively easily understand the significant impact their services have on a client’s investment.

Small wonder these professionals believe they are underpaid. They are.

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But what’s the solution to close this value gap? Simple. Close the value gap perceived by the clients.

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How to create your value bridge

There are three, essential building blocks that managing agents need to have in place in order to bridge the value gap for their clients and for themselves. These are: a well-defined value proposition, consistent value delivery, and constant attention to value communication.

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Define your value proposition

The first step to creating well-defined value proposition is to figure out who your target market is. It’s not possible to be all things to all people. Pick your sweet spot and get to know the specific needs of the clients within that sector.

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From here, you can start structuring your service offering to align with those particular needs and pain points. Remember: the greater the need, the higher the value placed on its solution. Keep this in mind when determining your pricing structure, and don’t undercut your efforts by undervaluing your services and skills. It’s important to pick a price point that reflects your efforts as well as your impact on solving critical pain points, reducing risk and meeting community needs.

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Deliver the value you promise

There’s no point making value promises if you’re not in position to keep them. Delivering value means structuring your business to support the promises you have made. There are three critical aspects to this.

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The first is hiring the right people. Service and the people delivering it cannot be separated – the skills, experience and attitudes of your staff are integral to your service delivery capabilities. Your people need to instil confidence in your clients at every touchpoint, and they need to be empowered with the right tools, environment and work/life balance to make that happen.

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This brings us to the second aspect of service delivery: having the right systems and processes in place to ensure consistent service quality and efficiency. This is critical to client satisfaction, directly affecting their experience and perception of value. Don’t underestimate the role your tech tools, financial, operational and compliance workflows, and ability to measure output play in supporting your ability to deliver on your service promises.

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Lastly, your strategic partners (e.g. WeconnectU, banks, auditors, debt collecting attorneys, utility service providers etc.) also impact your ability to deliver value. The right partners should enhance the value you are able to offer, while simultaneously enabling internal efficiencies to deliver that value with less effort.

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Communicate your value

Of course, delivering value is pointless if your clients can’t see or perceive it. That makes value communication arguably the most important building block for bridging the value gap.

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Regular reporting, presented in a clear and transparent format, is the first part of this. Good reports help trustees to understand and track the key performance indicators of their communities and see the impact of your influence in black and white.

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Meetings are also vital, offering an invaluable opportunity to demonstrate your expertise while guiding and advising your clients to the benefit of their communities. Given that 60% of your time is likely spent in AGMs or trustee/director meetings, it makes sense to invest in the right tools, technology, processes and reporting mechanisms to make those meetings an impressive experience, reinforcing your professionalism – and value – to your clients.

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The final element of value communication is branding and marketing – a frequently overlooked part of property management. Your brand is the ambassador of your business, shaping the market’s thoughts, feelings and attitudes towards you and your services. Used strategically, it can help your business stand out in a crowded marketplace to better reach (and appeal to) your ideal target market.

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Keep in mind, your brand is built on two pillars: your reputation for delivering on your promises, and your visibility in the marketplace. Neglecting either will severely impact your ability to curate a brand image that serves your business well.

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Closing the gap

When consciously implemented with the goal of bridging the value gap, the building blocks above deliver extraordinary rewards in terms of client satisfaction, appreciation, and retention. This, in turn, will help to strengthen your professional reputation and sharpen your competitive edge, enhancing your ability to charge fair fees for services rendered, without deterring new clients.

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Change is never easy, but believe us when we say: this one is more than worth your while.

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Get in touch to find out more about how WeconnectU can support you in defining, delivering and communicating your value. Your staff, your clients and your bottom line will all thank you!