If you’re looking to make serious money in today’s recession-driven market, now is the time to start thinking seriously about real estate!
Sure, certain classes of real estate have taken a hit since March, mostly in the commercial sector. There are, however, other types of residential real estate that are likely to hang tough and may even become more widely marketed as savvy investors expand their rental portfolios to take advantage of low-interest rates.
Therein lies an opportunity for an aspiring property management firm!
A property manager is a person or entity that manages the day to day tasks related to running commercial and residential properties. These tasks are completed in exchange for a portion of the collected rent.
To hit the ground running with a property management venture of your own, keep reading to take in our essential tips for success!
Get Experience Before Launching
We get that the prospect of being your own boss is an exciting one. Believe us when we say though, that running a solo operation takes a lot of work and even more experience.
If you don’t have that experience, get it.
The best way to become a more skilled property manager is to get a job at an existing firm. If that’s out of the question, connect with other property management companies. You can always pick their brains on the ins and outs of their business.
A little bit of education upfront can go a long way when it comes to ensuring property management success.
Determine If You’re Going to Freelance
Some property managers forgo building a formal, legally structured business and, instead, opt to freelance as a property manager to start. Doing this is as simple as declaring yourself a freelance property manager and marketing your services to landlords.
Landlords in small markets that are managing small amounts of units may be interested in working with freelancers since their rates are generally lower. Bigger operations are more likely to gravitate towards formalized, buttoned-up firms.
Keep that in mind as you explore whether or not freelancing is right for you.
Know If Licensure or Other Documentation Is Required
In most states, you don’t need any formal licensure to get started in property management. Certain territories, however, may require a real estate license or a business license.
Talk to your city’s chamber of commerce to see if they can walk you through what you might need to work out of your area. If there are requirements, be sure to meet them before taking on work.
Operating a business without required licenses can result in fines and closures.
Set up an Office
Some small-time property managers work out of their houses. In most cases, though, property management operations will have a small, self-funded office to welcome clients.
If the thought of taking on an office lease sounds daunting, know that now more than ever, office lease prices are down. There’s a good chance you can bag a stunning space for well below standard market rates, which can do wonders for your company’s image.
When clients start pouring in, you’ll need to manage the collection of their rent, maintenance requests, and more. How are you going to do all of that?
Many modern property management operations have turned to technology as a solution.
There are several pieces of cloud-based software in the market that enable the seamless management of all things related to rentals properties. Explore a handful of them, their cost, and decide whether or not you’re going to invest in those tools to help you more effectively run your business.
Start Taking on Clients
You’ve got an office, technology, and appropriate documentation settled. Now it’s time to start pulling in clients.
As with any business, capturing clients isn’t a particularly easy process but is a necessary one. To get started pulling in leads, consider investing in property management marketing through a firm.
They’ll be able to help you run digital ads, direct mail campaigns, and more.
If you’re a confident marketer, you can certainly go at it alone. Just be sure not to get discouraged if picking up traction ends up being a slow process.
Learn and Grow
Running a successful property management firm requires trial and error. Always take learnings from your setbacks and keep making adjustments to serve your clients and your business better.
For example, if you do something that ends up carrying legal ramifications with a tenant, make it a written policy to go about similar situations in a better way. If you’re finding it hard to attract clients at your current rates, consider lowering rates for landlords that sign on multiple units.
The sky is the limit when it comes to tweaks you can make to your business that’ll bolster your bottom line.
The Success of a Property Management Firm Is Bound Only by Creativity
We love the idea of opening a property management firm because we feel it’s a venture that’s poised to weather today’s economy and flourish in tomorrow’s. All you have to do to promote success is to be creative, be open to pivoting when necessary, and above all else, love what you do.
If you combine passion with ingenuity, the sky is the limit!
Are you hungry for more of the best tips on business, technology, and more? If you are, we welcome you to explore additional content we have published in our blog.
You’ll be glad you did!