Local short-term rental business owners and property managers wear many hats to successfully maintain their daily operations. In addition, they work in an ever-changing business environment shaped by shifting operational costs, labor trends, and customer demand.
Therefore, property managers need dedicated teams to take care of time-consuming tasks and ensure tenant and guest satisfaction so that they can focus on building and scaling more efficient, productive, and profitable business operations.
In this article, we will break down all the ins and outs of outsourced staffing to help you scale your property rental business, but first let’s evaluate the dynamic trends in the industry.
Trends in the Property Management Industry
For the last couple of years, post-pandemic trends and increased remote work options have shaped the future of the property management industry. Nevertheless, labor costs, churn, and demand in the workforce remains stubbornly high. Also, reaching a talented workforce is becoming increasingly difficult.
These labor trends and increased customer demands have accelerated competition in the short term rental industry and raised operational costs.
To stay ahead of the competition in today’s property management market, property managers need to keep a highly skilled workforce on board and acquire a cost-effective business strategy.
At this point, outsourced staffing presents an opportunity as it is more cost-effective and less time-consuming than handling operations in-house. But what exactly is outsourced staffing, and how can it enhance a property manager’s business?
Outsourced Staffing and What It Means for Property Managers
Today’s world is highly connected and virtually borderless, an environment in which businesses can transfer and establish teams anywhere in the world. As today’s businesses and working culture are no longer restricted by locations or geographical boundaries, an outsourced workforce has come to the forefront.
Outsourced staffing refers to hiring dedicated remote workforces to maintain and expand core business operations more efficiently. These dedicated people work exclusively within your company’s core functions as a true part of your team rather than just an additional and disconnected team or workforce.
Benefits of Outsourced Staffing for Property Managers
The workforce is the true lifeblood of any business or company, so securing highly skilled, competent, and reliable talent is much more than just a human resources task.
Finding the right talent with relevant credentials is not easy, especially in the hospitality industry, where a workforce deficit persists. According to our State of the U.S. Travel Accommodations Workforce Report, the total workforce deficit remained as high as 17% in 2021.
On top of that, dealing with all administration, payroll accounting, insurance, and other legalities can be highly complex and drive up costs, especially for small to medium-sized businesses.
Outsourced staffing takes care of all these responsibilities and wipes this stress away from property rental businesses by keeping highly skilled property management professionals on board. Consequently, it provides a cost-saving and high-quality business strategy.
Let’s take a closer look at the benefits of outsourced staffing.
1. Cost Efficiency
Hiring an outsourced team is no longer difficult or costly. In fact, it creates a price advantage for businesses by expanding their alternatives.
According to Deloitte’s Global Outsourcing Survey, outsourced staffing costs 70% less than in-house staffing by preventing infrastructure costs and reducing operational needs. Thus, remote staffing is an essential business strategy to significantly decrease operational and labor costs.
2. Time Efficiency
Hiring outsourced professionals clears out the time used for managing operations and creates valuable time for businesses to spend focusing on internal resources and strategic planning.
For example, if you partner with a skilled outsourced staffing provider, remote professionals can handle recruitment, billing, taxes, accounting, and property management operations while you stick to your business strategy.
3. Non-Stop Operations
Maintaining a property rental business requires a dedicated team of professionals that can be available at all times as guests’ or tenants’ needs don’t stop when working hours are over.
Outsourced staffing enables property rental business owners and property managers to operate 24/7 due to overlapping work hours and time zones. By running operations non-stop, property rental companies can achieve faster turnaround times, succeed in business objectives without any interruptions, and provide a tailored tenant and guest experience.
4. A Wider Talent Pool
The volume of technically qualified professionals varies from country to country. Also, the need for talent changes according to the requirements of each industry. For example, the property management industry needs talented professionals for complex and daunting tasks like trust accounting, guest services, and bookkeeping.
In such cases, outsourced staffing provides companies with a wider talent pool by enabling them to discover competent and skilled professionals all around the world.
A Dedicated Team Can Be Your Partner for Business Growth
Outsourced staffing services enable businesses to free up their strategic resources, reduce operational costs, build a global presence, and work with talented professionals. With low labor, production, and operational costs, companies can boost their productivity and realize higher profits.
Obviously, it can be challenging to manage a remote team, especially if the team members are not chosen wisely from a talent pool of qualified and suitable professionals.
To prevent the challenges of outsourced hiring, you will need an experienced and strategic partner to help you recruit and retain qualified and motivated team members. With 15+ years of experience and a highly educated and qualified talent pool, Extenteam can support you in this journey by outsourcing ideal team members for your business and taking care of all costly processes and hassles.