Cutting expenses in 2025 doesn’t mean sacrificing quality, Chris Pollinger writes. By strategically managing your budget, you can maintain profitability and reinvest savings into the areas that truly drive growth.
Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
As 2025 approaches, real estate teams face rising costs and increased competition. Team leaders need to be strategic in managing expenses to maintain profitability while staying efficient. Here are eight effective ways to cut costs without compromising your team’s performance.
1. Reduce office space
With the mainstream shift to remote and hybrid work models, the need for large office spaces has diminished. Many real estate teams have discovered they can operate just as effectively with smaller spaces or entirely virtual or flex space setups.
Downsizing or eliminating office space can result in substantial savings on rent, utilities, and maintenance. You can reinvest those funds into areas like marketing or client services. Digital collaboration tools make it easy to keep communication flowing without a central physical location, allowing teams to operate more flexibly.
2. Leverage marketing automation
Marketing is essential for lead generation, but it can be costly if not managed efficiently. Marketing automation tools like HubSpot and Mailchimp help streamline repetitive tasks such as email campaigns, social media posts, and lead nurturing.
Automation reduces the need for additional manpower, saving time and money. It also ensures your marketing efforts stay consistent, allowing your team to focus on higher-level activities like client relations. Automation platforms also offer insights to optimize campaigns, increasing their effectiveness without increasing costs.
3. Outsource administrative tasks
Administrative work can be time-consuming and expensive when handled by in-house staff. Instead of hiring full-time employees for transaction coordination, listing management, or bookkeeping, consider outsourcing these tasks to virtual assistants or specialized third-party services.
Outsourcing allows you to pay for services only when you need them, reducing overhead costs and HR-related costs. Virtual assistants or third-party services can manage essential duties, freeing your core team to focus on revenue-generating activities, such as client engagement and sales.
4. Streamline your technology stack
Many real estate teams use multiple software platforms, resulting in unnecessary costs. Subscribing to separate CRM systems, email marketing tools, marketing tools and transaction management platforms can quickly add up.
In 2025, review your tech stack and consolidate where possible. Reducing redundant tools not only cuts costs but also simplifies your team’s workflow, boosting efficiency and saving time.
5. Hire freelancers for specialized tasks
For specialized projects like graphic design, content creation, or video production, consider hiring freelancers rather than full-time employees. Freelancers provide flexibility, allowing you to pay only for services when needed.
Platforms like Upwork and Fiverr make it easy to find professionals for short-term projects, whether you need a new property video, social media graphics or website updates. Freelancers enable you to access top talent without the long-term commitment and costs associated with full-time staff.
6. Cut underperforming lead sources
Not all lead generation channels are equally effective. If you’re paying for leads, take a close look at the data to determine which sources are delivering results and which are underperforming.
Cutting underperforming lead sources allows you to focus your budget on channels that consistently produce quality leads. This might mean doubling down on referral programs, organic content, or paid campaigns that have proven to convert well. Regularly analyzing your lead sources ensures your marketing dollars are well spent.
7. Renegotiate vendor contracts
Vendor contracts often go unchecked for years, but this can lead to paying more than necessary. Whether it’s cleaning services, office supplies, or tech subscriptions, many vendors are open to renegotiating terms—especially with loyal customers.
Take the time to review your vendor agreements and request better rates or terms. If your current vendors won’t budge, shop around for better deals. Switching providers or renegotiating contracts can result in significant savings for your real estate team.
Cutting expenses in 2025 doesn’t mean sacrificing quality. By strategically managing your budget, you can maintain profitability and reinvest savings into the areas that truly drive growth. Whether you’re reducing office space, outsourcing tasks, or streamlining your technology, these eight strategies will help your real estate team stay competitive and efficient.
Take a close look at your budget and identify areas where you can make meaningful cuts. The goal is to improve efficiency and focus your resources on activities that bring the greatest returns, ensuring your team thrives in the coming year.
Chris Pollinger, founder and managing partner of RE Luxe Leaders, is the strategic advisor to the elite in the business of luxury real estate. He is an advisor, national speaker, consultant and leadership coach.
English (US) · 