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So you’ve decided to go into business as a property manager.
Owning properties can be overwhelming. There are difficult tenants to deal with, rent to collect and ongoing maintenance and repairs that can be costly and time-consuming. Many property owners don’t have the time and resources to deal with all of this, particularly if they hold full-time jobs or live far away from their properties. For this reason, many investors decide to call in the services of a property management company to alleviate some of the burden.
Property managers carry out all the day-to-day tasks that come with renting out a property, taking on the responsibilities of a landlord and ensuring that tenants are happy, the property is up to scratch, and the owner receives their rental payments on time.
Starting a property management company can be a highly lucrative business opportunity, but like any business, it takes a lot of hard work to see success. If you are considering entering the world of property management, here are some tips to help you get started.
There is a lot of work to do before getting your business off the ground. The first steps are to make sure your company is licensed and registered, and write a thorough business plan to serve as the framework for your entire business. Depending on your specific regional laws, you may need a broker’s license or a property manager’s licence in order to operate.
You should have a guideline for how much revenue you intend to make in your first financial year, and a plan for reaching it. Work out all of your expenses, including payroll, overheads, services and any professional membership fees. This will help you set realistic goals and avoid financial problems.
Building your business
Now that you’ve laid the foundations, you will need to get your business off the ground by adding the people and technology that will keep it running. Define the structure of your team and take care to find and hire the right people. Work out what technology you need to keep your business functioning.
Once your business is up and running, you need to find clients. A successful marketing strategy is the best way to do this. Assess the available marketing options. Work out what is right for your business and what you can feasibly accomplish with your resources. Social media, pay-per-click ads, blogs and local events are all great ways to draw in clients.
Once you’ve landed your first client, you will have a list of responsibilities for successfully managing your properties. You will have to handle maintenance and repairs, advertise listings and organize showings while remaining fully compliant in everything you do.
Starting a business is no mean feat. There is a lot of work to be done and any number of potential mistakes and setbacks. But by doing your research and putting in the time and effort, you will see your property management business up and running successfully in no time.