The need for property management companies is increasing every year as landlords grow tired of managing and maintaining their investment rental properties on their own. It’s time consuming for investors who only do it part time.
As landlords realize how much work it is to manage their properties while also pursuing other business ventures or simply enjoying their personal lives, now is the perfect time to start a property management company.
But where do you start? We have the answers you’ve been searching for!
Get the Required Licenses
Real estate can be a complicated and extremely regulated industry. Therefore, real estate professionals are required to be licensed by the federal and state government. This requires taking classes and passing exams along with completing continued education courses.
To become a property manager, you must have a broker’s real estate license and a property manager’s license. A broker’s license requires you to have worked in real estate, usually as a real estate agent, for a couple of years, so you’ll need previous experience.
One these real estate licenses have been acquired, you’ll need to set up your business licenses and establish the business with the state.
Write Your Business Plan
Your business plan is the backbone of your property management company. This determines how you plan to function, make an income, market yourself, and succeed as a business.
When writing the business plan, determine which services you plan to provide to rental property owners. Will you be a full-service property management company or offer limited services? How much will you charge – a flat fee or percentage of the monthly rent?
This is also the time where you spend making partnerships with other services you may need such as plumbers, electricians, home inspectors, and brick masons like Brickworks Property Restoration. These are the people you’ll call when you need maintenance or repairs done to a rental property you manage. Try to make an agreement where you receive a discount on their services due to consistent work too.
Establish Your Brand
A business is nothing without solid branding. Your property management company is no exception.
Choosing the right name, logo, and slogan is crucial for your company’s success. Don’t rush this process – take your time to find the right one.
Determine what separates your property management company from others in the area. Maybe you fill vacancies in seven days or less. Or you could only work with luxury rental properties. Remember, you need to cater to both tenants and property owners!
As you establish your brand, you’ll have to build a complete and attractive website and start your marketing campaigns to gain attention and leads from the community.
Start Small and Scale
Starting a property management company is a growing process. Once you’ve established your business and brand, it’s time to get your first clients. Managing just three or four properties in the beginning is perfect. Slowly, you’ll gain more clients through referrals and your marketing efforts and you’ll build your portfolio.
Remember, starting small is never a mistake. It gives you time to learn and achieve your business goals strategically and successfully.