Property management is all about balance – keeping properties in top shape, ensuring tenants are happy, and keeping owners from questioning why they hired you in the first place. But behind the scenes, the numbers have to stack up if you’re going to make your operation what you want it to be. And while you’re rightly focusing on getting more clients and increasing revenue, the moment your expenses start creeping too high profitability shrinks and margins become razor-thin.

Then comes the stress as you try to do more with less, client satisfaction starts to suffer and all the problems in your business get compounded. Suddenly you’re spending your days fielding calls from dissatisfied clients and residents instead of working out how to make your business more profitable. 

Labor, maintenance, and administrative costs quietly eat away at revenue, and before you know it, you’re not spending any time in your week actually growing your business – you’re stuck. The worst part? Many of these costs feel unavoidable – like rent for an office nobody visits or hours spent on-site for inspections that could be done remotely. 

Labor is one of the biggest expenses in property management, and we’ll spend quite a lot of time discussing labor costs, but most property management companies still approach it the old-fashioned way – full-time, in-house teams handling every little task. While that works for some, for most, it’s an expensive way to operate.

Believe it or not, you don’t actually need a large in-house team.

Many property management companies are still hesitant to bring in remote staff, but outsourcing non-location-dependent roles – like leasing coordinators, maintenance schedulers, or administrative assistants – can significantly reduce costs. A report from Global Workplace Analytics found that companies can save $11,000 per employee per year by shifting to remote work, and the figure can often exceed $25,000!  

Remote employees cost less in salary, benefits, and office overhead while often providing equal or better service.

Focus On High-Value Tasks

Your in-house team should be focusing on high-value, revenue-generating work – not scheduling maintenance or answering routine tenant inquiries. If your staff is bogged down with admin tasks, it might be time to reassess their roles. Automating and outsourcing $2 tasks frees them up to focus on growing your business. And once your core team is spending their time doing the work that actually matters (rather than driving 45 minutes to do an inspection only to find the tenant isn’t home), they’ll feel more fulfilled at work, and the knock-on effects of that are huge! 

The benefits flood in once your team focuses on the right tasks: increased employee satisfaction, less staff turnover, lower training costs, and your team providing better quality of service for your clients. 

A study by Gallup found that 76% of employees experience burnout at least sometimes, with excessive workload and lack of efficiency being the top contributors. If your team is drowning in low-value admin tasks instead of having the time to focus on strategic work, they’re more likely to disengage and leave. 

Beyond direct savings, remote work also reduces turnover and absenteeism, boosting productivity and employee satisfaction. When staff can work flexibly, they’re more engaged, and engaged employees deliver better service. 

What tasks should be handled by your in-house team? 

It can be hard to know exactly what tasks to outsource, so we’ve provided some of the top areas your in-house team should be handling vs. your remote team below: 

Tasks That Can Be Outsourced	Tasks That Should Stay In-House
Tenant screening and background checks	Property showings and in-person tenant interactions
Lease processing and document management	Owner relationship management and client retention
Maintenance coordination and vendor scheduling	Handling complex legal issues and disputes
Rent collection and delinquency follow-ups	On-site emergency response and property oversight
Marketing and property listing management	High-value financial planning and business strategy

That gives you a rough hourly rate for your employees. Let’s say the average is $50 per hour (we’re picking a nice round figure to keep things simple). That’s what an hour of your team’s time is worth. Now you can decide if there is a more effective way to spend that time (and money), or if there is a cheaper way to complete that same task. 

For example, let’s say you send a team member to inspect 5 properties on Monday. You know that to inspect each property, taking into account travel time, on-site time and time completing the report, it’ll take your employee around 2 hours per inspection. That’s 10 hours spent on those inspections, or $500. Now you can decide if it’s worth spending $500 to complete those inspections, or if there are cheaper options out there (hint, there are!), and whether that $500 can be better spent on revenue-generating tasks. 

Resident Inspect’s pricing begins at only $45 per inspection, and because all inspections are completed by experienced property managers remotely, there’s no travel time. That means to complete those same 5 inspections, it could cost as little as $225 – that’s a saving of 55%! – with the added benefit of flexible scheduling for the resident, plus it frees that team member’s time up to focus on other more profitable areas. 

Traditional property management businesses operate out of brick-and-mortar offices, but ask yourself – how often do clients actually walk in? With digital lease signing, online portals, and virtual inspections, the need for a physical office has dwindled.

Meanwhile, shift administrative, leasing, and tenant communication tasks to remote staff. Leasing agents, maintenance coordinators, and rent collection specialists can all work effectively from anywhere with the right property management software. 

For a hybrid model to succeed, set clear communication guidelines between remote and in-office staff. Use cloud-based tools to centralize workflows, ensure seamless handoffs, and eliminate bottlenecks. Virtual inspections can also help reduce travel time for in-house teams, letting them focus on higher-value tasks. 

By striking the right balance, property managers can reduce costs while keeping critical operations running smoothly. 

Proactive maintenance is all about preventing problems before they become the stuff of nightmares. Here’s how top property managers stay ahead.

Schedule Preventative Maintenance During Off-Seasons

Most property managers react to maintenance issues instead of preventing them. For example, scheduling annual HVAC servicing in the fall or winter ensures you’re not scrambling when summer heatwaves hit. Nobody wants to have their phone ringing with tenant complaints when the 15-year-old HVAC system goes kaput. The same goes for roof maintenance – cleaning gutters before spring rains can prevent thousands in water damage, keeping tenants and owners happy.

Implement a System for Maintenance Tracking

Embrace Virtual Inspections

Instead of driving to 500 properties every year, virtual inspections allow property managers to monitor homes remotely. Tenants walk the inspector through the property via live video, ensuring every issue is documented – without wasted time or travel expenses.

Maintenance is unavoidable, but how you manage it determines whether it’s a controllable expense or a runaway budget-burner. The trick is to prioritize preventative maintenance, vendor partnerships, and leveraging technology before any emergency repairs are needed.

Preventative Maintenance Saves Thousands 

Neglecting minor repairs leads to bigger, more expensive problems down the line. A slow drip under a sink today could mean a $10,000 mold remediation project six months from now. Regular inspections catch these issues early. We went into the importance of preventative maintenance at length in our previous blog. 

Too many property managers spend hours on admin work that could be automated. If your team is still manually tracking lease renewals, rent collection, or maintenance requests, you’re throwing time (and money) away. 

Automate Your Lease Renewal & Rent Collection Processes 

Property management software like Buildium, AppFolio, or LeadSimple can automate rent reminders, late fee notices, and lease renewals, cutting down hours of manual work.

AI-driven property management tools 

Artificial intelligence is making serious waves in property management, helping companies cut costs, automate tedious processes, and improve tenant satisfaction. If you’re still manually handling maintenance requests, lease renewals, or rent collection, you’re spending time (and money) on tasks AI can streamline for you.

Automated Lease Renewals & Tenant Communication 

AI-powered property management systems can automatically generate lease renewal offers, send pre-written emails, and flag tenants at risk of non-renewal based on past behavior. AI also enhances communication by sending automated rent reminders and following up with late-paying tenants – freeing your team from chasing payments. 

AI isn’t here to replace property managers but by integrating AI-driven tools property management companies can reduce manual workloads, cut operational costs, and improve efficiency without sacrificing quality. 

Property managers are notorious for taking on work they aren’t actually getting paid for. It starts small – an owner calls to ask a “quick question” about market trends, a tenant wants advice on home repairs, or you find yourself chasing late rent payments for free. Before you know it, your time is stretched thin, and your bottom line is suffering. 

The truth is, every minute of unpaid work is money lost – it’s a preventable cost. If you want to increase profitability without increasing workload, you need to stop doing free work and start charging for the services you’re already providing. 

Break Down What You’re Giving Away for Free

Many property managers don’t even realize how much unpaid work they’re doing. If you’re not charging for these tasks, you’re leaving money on the table: 

• Tenant placement & screening fees: Are you charging owners for tenant placement, or is this just “included” in your standard fee? Many property managers increase revenue by charging a flat or percentage-based tenant placement fee. 
• Maintenance coordination: If you’re spending time finding contractors, scheduling work, and following up, that’s billable time. Some property managers charge an admin fee for vendor coordination or build it into their lease agreements. 
• Lease renewal fees: A lease renewal requires rent evaluations, paperwork updates, and compliance checks, all of which take time. Charging a small renewal fee is standard in many markets. 
• Late rent enforcement: Spending your time following up on late payments, sending notices, and filing eviction paperwork? Many property managers charge a late rent processing fee to cover administrative costs. 

How to Implement Paid Services Without Losing Clients 

If you’re worried about pushback, introduce fees gradually: 

• Start by charging for one or two new services and monitor client reactions. 
• Offer tiered service levels, with premium packages including additional services at a higher rate. 
• Bundle fees into an all-inclusive package for owners who prefer flat-rate pricing. 

Growing a property management business usually means hiring more staff, adding office space, and increasing expenses. But if you can work out how to scale without dramatically increasing costs, the world is your oyster. The key is leveraging technology, outsourcing wisely, and optimizing existing workflows.

Leverage Virtual Inspections to Manage More Properties Without More Staff 

Automate Your Operations for Efficiency 

Technology is a property manager’s best friend when it comes to scaling without added costs. The right software can: 

• Automate tenant communication, reducing the time spent responding to emails and calls. 
• Track maintenance requests, ensuring faster response times and fewer delays. 
• Streamline lease renewals, so tenants receive reminders automatically, reducing vacancies. 

With AI-driven property management software, your team can handle more properties with less effort. 

Outsource Admin Work to Free Up Core Staff 

Instead of hiring in-house for every role, consider outsourcing: 

• Accounting & bookkeeping (virtual accountants often cost less than in-house staff) 
• Maintenance coordination (third-party services handle work orders without extra overhead) 
• After-hours tenant support (remote teams provide 24/7 service at a lower cost than full-time staff) 

Outsourcing allows you to scale your business while keeping payroll expenses under control. 

Prioritize Profitability Over Growth for Growth’s Sake 

Scaling smart means growing revenue while keeping costs in check—and Resident Inspect’s virtual inspections help property managers expand without adding overhead. 

Property management is a tough business, but you don’t have to choose between profitability and service quality. Here are the top 7 takeaways from this article:  

1. Remote Teams Cut Costs Without Sacrificing Quality
   Hiring remote staff for administrative tasks, maintenance coordination, and tenant communication can save thousands per employee per year. Remote employees reduce salary, benefits, and office overhead while often providing equal or better service.
2. Burnout is a Hidden Profit Killer 
   Overworked property management teams suffer from high turnover, increased mistakes, and lower service quality. Automating administrative tasks and outsourcing low-value work prevents staff burnout and improves overall efficiency. 
3. Office Space is an Unnecessary Expense for Many Property Managers
   The average office costs $5,000 – $10,000 per employee per year in rent, utilities, and upkeep. Many companies can downsize or eliminate their office entirely by shifting to virtual operations, reducing a major overhead cost. 
4. Maintenance Costs Can Be Controlled With Smart Strategies
   Preventative maintenance and bundling vendor services can cut repair costs by 15 – 30%. Virtual inspections also help catch small issues before they turn into expensive repairs, saving thousands in the long run. 
5. AI and Automation Save Time and Reduce Administrative Costs
   AI-powered property management tools streamline maintenance requests, lease renewals, and rent collection, reducing labor costs and improving efficiency. Automating repetitive tasks allows staff to focus on higher-value work. 
6. Stop Doing Free Work – Charge for the Services You Provide
   Many property managers offer services like tenant placement, maintenance coordination, and lease renewals for free without realizing the financial impact. Implementing clear service fees increases profitability without adding extra workload. 
7. Scaling Smart Means Growing Without Increasing Overhead 
   Expanding a property management business doesn’t have to mean hiring more staff and increasing costs. Leveraging virtual inspections, outsourcing admin work, and automating processes allows companies to scale efficiently without blowing their budget.