Starting a property management business is similar to starting any other business. All in all, the steps are the same but the industry is different. Statistics show that this might be one of the most profitable business options for entrepreneurs as this industry is currently valued at $99.449 billion.
That being said, starting a property management business requires a lot of dedication and hard work, along with the right skills and planning. If you are looking to join the most profitable property management businesses, follow these steps to ensure success.
What is a property manager?
Before you start your business, it’s important to have a better understanding of what your role as a property manager is. When starting your own property management company, your job is to manage the property portfolios of other people.
You can serve a variety of clients, including landlords with one property and investors with multiple properties. You will be responsible for tasks such as screening tenants, drafting lease agreements and other types of contracts, property inspection, and much more.
Write a captivating business plan
A business plan is important for every new venture. A well-written property management business plan will not only outline the vision of your company but also provide a roadmap detailing how you intend to achieve success. If you are not well versed in business plan crafting, you can always use the helping hand of templates.
With templates, you will put all your ideas on paper quickly and effectively. It’s important to mention that a business plan is dynamic and you can easily change it whenever you feel that the opportunity calls for it.
Find the perfect office location
Finding the right location for your office will be vital to its success. For starters, you need to research the area for other property management businesses nearby. After you are done with that, take note of how their stores are set up and what kind of services they offer.
Even if the competition in the area is fierce, find out whether there are affordable rent options so that you can set up your business properly. To maximize your chances of competing with other businesses, you will need a strong storefront that will encapsulate what your business is all about.
Set up a website
As the world becomes more tech-savvy and mobile-friendly, the internet is becoming an integral part of every business. A website is a company’s most valuable marketing asset and can boost sales by an average of 15% or more.
You can either hire a web designer to create your website, or you could just use a quick web browser search and find pages that create a website with your input in just a few seconds. Your website should have a landing page for property management, a contact form, and a phone number.
However, even if you have the best website in the world, it won’t serve a purpose if it’s not easily discoverable on web search results. For this reason, consider working with expert digital marketing agencies that will optimize your website for better search engine results.
Create a team
Many property management companies start as a one-man show. If that’s the situation in your case, you will be responsible for everything in your business, including leasing, maintenance, and inspections. But, if you have the resources to hire staff, it’s important to only work with trusted individuals that have had previous experience in the field of property management.
Expertise aside, you will also have to provide your team with above average salary to keep them motivated.
Take care of your tenants
Because you will be dealing with many different people every day, it is important to have excellent interpersonal skills. Every person you deal with, from the landlord and maintenance contractors to tenants, will have different needs and expectations. It is important to communicate clearly and effectively with all parties.
Furthermore, your tenants are those that bring profit to your business and due to that, it’s important to treat them properly and with respect. View tenants as investments and work to keep them happy. If you’re looking to be a landlord and manage your own property, it’s important to understand the duties of tenant management and how to achieve that perfect balance between your tenant’s needs and the needs of the building.
Owning an investment property is a lifelong commitment that will require a lot of work and effort. You must manage tenants, collect payments, do regular maintenance, and take care of a million tasks every day. However, without the right expertise, managing such assets can be difficult. That’s why an increasing number of property owners and investors are hiring property management companies to take care of their tasks as landlords.