The old 80/20 Rule!
As experienced onsite managers we have experienced many of the highs and lows involved with Management Rights. We really enjoy helping managers and try very hard to find the right buyer for
each complex we sell. This article is about the 80/20 rule.
From our experience we have found when it comes to tenants and renting the 80/20
rule certainly applies.
I mention the 80/20 rule frequently and I believe it’s fundamental not only to every
business person but to every human being. So if you have never heard of this
rule, please read on, it could potentially change your life.
The 80/20 rule sounds like a statistic and in some ways it is. The good thing about the 80/20 rule is that you don’t have to understand statistics to be a believer.
Yes it has foundations in economics and yes, it was “proven” using statistical analysis by a man named Pareto, but it is not meant to be understood only by economics professors.
It really doesn’t matter what numbers you apply, the important thing to understand
is that in your life there are certain activities you do (your 20 percent) that Account for the majority (your 80 percent) of your happiness and outputs. You may have expected me to say that 20 percent of your activities produce 80 percent of your financial rewards, and that is true. You can definitely apply the 80/20 rule to most aspects of your business or working life.
Have you discovered that 20% of your tenants give you 80% of your problems?
Similarly, that 80% of your rental arrears comes from 20% of tenants.
80% of tenants are great, 20% not so good.
What I have also discovered is that when you become aware of the 80/20 rule you
start to look at ways to improve the ratio and stop the tail wagging the dog!
We will be calling on your area soon and look forward to having a chat face
to face. If you would like to catch up before then please don’t hesitate to
give us a call.