Looking to start a business offering property management services? Remember there’s an overlap between what a property manager and real estate agents do. They both work in the real estate industry. And have some of the same requirements.
A broker can work as a property manager. An outline of property management activities follows. And how you can start one of these businesses for a rental property or investment property.
What is a Property Management Company?
These are the people who look after the property owned by someone else. That includes all kinds of residential property and industrial and commercial spaces. They do things like collect rent, advertise properties and clean and maintain them.
Absentee landlords hire them for managing properties.
How Much Does it Cost to Start a Property Management Company?
You need to consider capital and operating expenses to start this type of business. Property management enterprises start out with costs averaging $19,267 dollars. They can work with a real estate agent to sell apartment buildings. And get involved helping out with other activities.
17 Important Steps to Starting a Property Management Company
Starting a property management company requires following several steps. Like the following.
1. Research Other Property Management Companies
Before you can start your own property management company, you need to know what you’re up against.
That means market research into the property management industry. Potential property managers need to know who their direct and indirect competition are.
- Who their customers are. These are your potential clients.
- What products they offer. Do they sell properties too?
- Their pricing. What’s a month’s rent worth?
Remember, direct competitors are other property managers. Indirect competition can include in house managers. And those who sell real estate.
2. Choose a Name and Brand Your Property Management Company
A well thought out name supplies a lasting impression. Here’s a few tips for property managers looking to brand a new business venture. Successful property management companies start out branding.
- Make sure the name is unique. There’s legal issues about duplication in most states. Try a Google search to see what’s taken.
- Choose the url carefully. It needs to be memorable. Don’t just focus on the SEO value. You’ll get traffic from one people remember. It shouldn’t be hard to spell or understand.
3. Write a Property Management Business Plan
Any good property manager knows a solid business plan will keep their enterprise focused. They help with a variety of things like setting goals and even choosing a business model.
Following are a few points that need to be…
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