As the leading real estate firm in Las Vegas, Triumph understands the concerns that many investors have about costs.
Costs are, after all, what reduces income potential. In the minds of many investors, reducing costs results in greater income. But to think this would be to make a grave mistake.
Well, first and foremost – an investment, by very definition, is a cost. This means that if costs were to be completely eliminated, it would necessarily involve either not buying, or even selling, the property in the first place.
Cost versus investment
Obviously this is not a satisfactory conclusion – but it leads us to ask the question of cost versus investment.
Las Vegas property management fees should not be considered a cost but, instead, as a worthwhile investment. Property management is about streamlining efficiencies, and with efficiencies come savings.
How are these savings achieved, you might ask?
Property management companies are in the unique position of possessing a team of real estate professionals to look after each and every aspect of your property. This includes everything from tenant screening and rent collection, to maintenance and legal questions.
It is, in other words, a complete solution for your property management needs.
How to cut costs
Maximizing income potential means maximizing efficiency and eliminating waste.
It was Toyota, in the 1960s, who developed the concept of lean six-sigma. In simple terms, lean is about eliminating non-value added processes to a system. Any process that does not add value to an investment is considered waste – and its waste that comes with cost.
Examples of “waste” (often referred to by the Japanese term, ‘muda’) include:
- Unnecessary movement
- Incorrect/bad processing
- Unused time
Six-sigma, in contrast, is about improving the value-added steps of an entire process. So to summarise: lean is about eliminating waste and six-sigma is about enhancing value. By following these two systems, any given process may be streamlined.
Lean and six-sigma are usually applied to industrial processes – such as the production of cars, how supermarket purchases are made, or how pharmaceutical drugs are produced. But the theory can, in practice, be applied to any system where work is involved.
Investors need not know the ins and outs of these two systems, but the central take-home point is this: that property management firms are equipped to eliminate waste and maximize efficiency. This, in turn, reduces costs and – by extension – maximizes income.
Las Vegas property management fees are, in the long-term, made back many times over as a result of these efficiencies. By way of example, reducing vacancy turnover rates ensures a consistent income stream and reduces the likelihood of legal complications and/or eviction.
Maintenance, too, is also streamlined to ensure that problems are dealt with in a prophylactic fashion – prevention being a higher ideal than the cure. Maintenance costs are also driven down by the fact that real estate firms have the capacity to negotiate bulk purchase deals.
Las Vegas property management fees shouldn’t be considered an unnecessary cost, but as a worthwhile investment. They’re a means to achieve greater income potential, achieved through a network of experienced real estate professionals who know how to look after the nuts and bolts of your property.
If you’d like to learn more about full-service property management at Triumph, check out this page for more information.