The purpose of this article is not to provide conclusive instructions on how to craft business values (a simple Google Search can connect you to a multitude of resources on this), but rather to indicate the importance of defining values, no matter the size of your company. While it may seem more obvious for large corporations to set values, even small rental businesses need to outline a value system. It doesn’t matter if you own one rental property or a thousand rental properties, a set of values is critical to the success of your business.
Why Values Matter:
Whether you ever write your values down or not, your business still operates by a system of values reflective of the leaders and/or owners of your company. Taking the time to define and write these values down is critical for several reasons:
1. Values help people understand how you’re going to run your business.
When your values are publicly posted, external parties and customers can gain an understanding of how your business functions.
2. Values define things that are difficult to quantify.
It can be difficult to outline ethics, decision-making criteria, etc. Writing down values is a great way to explore and define some of these concepts.
3. Values serve as an accountability tool.
With a set of values in place, it’s easier to recognize when you are operating your business in a way that contradicts your value system. Values hold you accountable and can help realign your focus when you make mistakes.
4. Values help you solve problems.
When you’re faced with a difficult decision, tenant, or some other obstacle, you can refer back to your values for guidance on how to proceed.
5. Values promote consistency.
If you judge all of your actions and decisions by the same standards, it’s likely that you’ll be a consistent company with a high level of integrity.
6. Values help you measure progress.
If you operate by a set of values, it’s easier to recognize and celebrate progress. If you never define what’s important to you, how can you identify success?
An Example:
At our company, we have four values that we try to operate by. I’ll break them down for you here.
1. Add value to both our customers’ lives and our business.
We aim to add two types of value to our customers’ lives: financial and quality of service. For financial value, we typically rent our units a little below what the market will bear to give our customers a good deal. When it comes to quality-of-service value, we strive to stay on top of repairs and don’t allow issues to simmer. Both of these values enrich our tenants’ experiences.
When adding value to our business, we focus on financial and ethical values. Just as we work to benefit our customers, we also work to benefit our business. If we fail to create benefit for our business, the business may cease to exist, and that’s not in anyone’s best interest. Benefitting your customer and benefitting your business are not at odds with each other; it should be a win-win for both parties.
2. To be highly trusted by tenants and business partners.
When we tell our customers that we are going to do something, we always give 100% to keep our word. In this way, we maintain a level of predictability and trustworthiness. I’ve found over the years that many landlords never enjoy the trust of their tenants and that costs them in the long run.
An example of how we build trust with our business partners is we strive to have clean, crisp, and accurate financial statements. We are proactive in providing necessary paperwork to the bank and other partners, including our insurance agents, accountants, attorneys, etc.
3. To honor others ahead of ourselves.
We want to serve others well and treat everyone fairly. At the same time, we want to maintain healthy boundaries with our tenants. As Christians, it’s especially important for us to put others before ourselves (Mark 12:30-31).
4. Be good stewards of our relationships, resources, and opportunities.
Simply put, we want to do the right thing in every area of our business. With each relationship, resource, and opportunity that comes our way, we want to treat it as a special gift from God and act accordingly.
Of course, we don’t get these values right 100% of the time, but we make sure to reference them as we conduct our business and make difficult decisions. Right now, they hang in the lobby of our office as a daily reminder of how we want to run our company, pointing us in the right direction time and time again. Your values could do the same for you!
In Summary:
- All companies, regardless of size, operate by a system of values whether or not they are ever written down. It’s important to take the time to articulate and record your company’s values.
- Values communicate how you’re going to run your business, define things that are difficult to quantify, serve as an accountability tool, help you solve problems, promote consistency, and help you measure progress.
- You won’t get your values right 100% of the time, but they can help guide the direction of your company.