Are you thinking of starting your own property management business?
How to Start a Property Management Business
By 2023, the property management industry should reach about $22billion. There’s is potential to make money, but if you’re new to property management it might seem daunting. You might not know where to start.
Don’t worry, we’re here to help! Read our guide on how to start a property management business and build for success.
Is It Right For You?
You’re going to need to be a people person to work in property management. This is one of the biggest property management tips we could give you. You’ll be taking with various people each day including:
- vetting companies
- maintenance contractors
This means you’ll need great communication and interpersonal skills. It’ll help if you have high motivation and focus, as well as experience in training and hiring staff.
Join Our Small Business Community
Get the latest news, resources and tips to help you and your small business succeed.
You’ll need more staff, after all, as your business starts to grow and you take on more properties.
Make Sure Your Business is Viable
Before starting a property management business speak to friends and family. Ask them what experiences they’ve had with property management companies.
This can help you start to work out issues in the industry you want to “fix” or do differently. Run your ideas past them and ask their opinions. You need to be flexible to change and other opinions, don’t get defensive.
Check your competition and find their strengths, weaknesses, and opportunities to fit in. Is there something you think you can offer that currently isn’t on the market? Work out what will make you stand out.
Write Your Business Plan
You’ll want to write your idea into a business plan at this point. It’s going to explain the niche you’re filling and how you plan to grow. It’s also where you want to set out your legal structure.
Sort Out the Legalities
You’ll need to set your business up as a legal entity which you can do online yourself. If this is your first venture though, it’s better to call on an experienced attorney to guide you through.
Most of the time, it’ll be a Limited Liability Corporation (LLC). If you’re doing it online go to your state’s official website and you’ll need to fill out the LLC form.
Figure Out Your Start-Up Costs
Depending on the level of service you want to offer, your start-up costs will vary. If you want to branch into a lettings and rental property business as well, you’re looking at higher costs due to needing an office.
You’ll also need to think about your insurance, staff, admin, and marketing budgets. Printing, mailing, admin, and phone costs are especially costly.
Get Your Name Out There
If you want to get clients and grow your business, you’ll need to get your name out there.
Property management marketing will be vital to your success. You need a strong brand image; it’s what people will associate with you and make you trustworthy. So make sure you’re memorable.
You’ll want to set up a company website. This will be the perfect place to advertise what you can offer, putting all that information in one place. If you’re offering lettings, you can showcase them here too.
How to Start a Property Management Business Made Easy
So, there you have it! Now you know these steps on how to start a property management business, you’re well on your way.
Property management isn’t for everyone, so make sure it’s the right fit for you. Then, work out your business idea and make sure there is a place in the market for it.
After that, it’s a case of sorting out the legalities and getting yourself out there trading. With a bit of planning and hard work, there’s nothing you can’t do!
If you found this article helpful, check out our other blog posts today.
Some other articles you might find of interest:
Make your business rock with these business plan writing skills:
Would you like to know how investors value a startup?