Jumping into the property management business can be a great way to earn low-effort income or even become a passive business owner. In this guide we are going to go into depth on how to get started owning your very own property management business.
Before we get started, if you would like to see a condensed version of how to get up and running quickly with minimal investment, check out this article we put together “START YOUR OWN PROPERTY MANAGEMENT BUSINESS [5 STEPS]” . Their you can unlock the secret to starting your own property management business in as little as 30 days.
If you want to learn more in-depth about getting started as a property manager, continue to read for the 10 steps you will need to follow!
Unfortunately, most people can’t just jump into property management (depending on where you live). Often times you will need to become licensed as a real estate agent, or even get certified. These programs are usually rather quick to complete.
If it is a requirement to get a property management based education or not in your area, you should consider studying up on fair housing laws as this will be vital in your success as a property manager. Check out this article to learn more about education and requirements and suggestions on how to get educated.
Property management is not only limited to single-family housing. You may find your self leaning towards multi-family or even vacation focused property management efforts based on the needs of your community.
Deciding on a niche is a key part of starting your property management business. Click here to read our article about property management niches and how to decide which niche is right for you.
Using software to help run your day to day operations will prove to be very useful in automating simple repetitive tasks, and ensuring nothing will be forgotten. That being said there are a few things that you need to specifically keep an eye out for when it comes to property management software when it comes to functionality. To learn more about what you need to look for click here.
Property management software is not cheap and usually requires lengthy annual commitments, so it’s vital to ensure that the software can do everything you need before you sign the dotted line. Give this article a quick read to learn about what you need your property management software to do for you.
One of the great perks of being a property manager is that your day to day experiences can be very diverse always keeping your daily routine fresh.
There are a few tasks that you will more than likely be handling on an ongoing daily basis. Some of these typical tasks include handling a few maintenance requests and talking to some prospective new clients. Click here for a more detailed walkthrough of a day in the life of a property manager.
When starting your own business, it’s often tempting to try and do everything yourself. However, your marketing strategy is one place where you should consider looking for outside help.
By seeking help from a professional for your marketing strategy, you can focus on the operations of your business and overall growth strategy. One way that property managers often generate leads for their business is by purchasing leads directly from lead generators. Many companies offer quality leads specifically for property managers and make it easy to scale up to buy more leads when you are ready. If you want to learn more about different ways to market your property management business you can click here.
Social media is about a lot more than ‘Likes‘ and ‘#hashtags‘, using your social media properly can really help boost your business numbers and provide real-world results. With a great ROI on the horizon, social media is one of the best oppertunities for growing your property management business.
A healthy social media following is like having a great newsletter audience that you can communicate with time and time again without having to pay to access customers. If you would like to learn more ways how you can leverage social media for your business check out this article.
Starting any business has costs associated with the process, and understanding the costs early on will easily help you prepare you for success later down the road.
Many firms consider costs such as paying for office spaces and other office expenses. Not to mention marketing expenses and industry contractors. But many startups forget the costs of technology, important software or even legal bills. For more information on the cost associated with starting up your property management business check out this article.
When you are new to anything, using a checklist will help make sure you don’t leave out anything that is important. Our startup checklist will help you get started off to the right foot when starting your own property management business. Check it out here.
If you haven’t already gotten enough info on starting a killer property management business here are a few extra golden nuggets of knowledge.
If you would like even more tips click here for 6 great tips on how to run your property management business.
Everyone knows that you probably should not be ‘reinventing the wheel‘ when starting your own business and this goes double in the property management industry.
Check out this article to learn more about how to start your property management business the easy way, that is sure to be a cheaper and faster alternative than completely starting from scratch.
If you are interested in starting your own property management business, then you are more than likely excited to learn about how to get started quickly and with a low cost.
To learn more download our cost comparison sheet below to see a real-world price breakdown of what it will really cost you to start from a Business License or starting DIY.
As a property manager, finding the right clients is crucial for your success. You need a constant stream of clients and plenty of properties to manage. Property management is a numbers game. Since you’ll likely be working on tight margins to stay competitive, securing just a few additional clients can often be the difference between negative and positive cash flow.
But, how do you find those clients? Sure, you know that you need quality leads, but how do you go about getting them? Marketing your property management company may seem like a headache. But, with the right strategies and the right marketing model, you can grab those clients and focus on what really matters — managing properties.
Today, we’re going to look at the three most common methods of marketing for property managers. Each of these methods can help you acquire leads, increase branding, and remain financially secure. In fact, some property managers choose to combine two or more of these methods to pull in more clients.
One of the most cost-effective ways to market your business is to use a licensor. Instead of paying to market your property directly, you can use a licensor’s brand name to help you drive business. This means that you reap the bulk of the benefits of marketing that the company you purchased a license from has accrued over their lifetime.
Since the brand that you’re purchasing the license from has already built the brand, you’re essentially purchasing all of your marketing in one package. By using the name and recognition of a licensor, you can quickly scale your property management company without additional marketing payouts.
Of course, some property managers will choose to hire a marketing agency to help them grow their brand and marketability. This approach is best for property managers that have an attachment to their brand name or have the cash flow to support a full-time marketing agency.
Each agency will approach your marketing differently, and services can range from out-of-home advertising (e.g., billboards, newspaper ads, etc.) to digital marketing (e.g., SEO, social media, etc.)
Finally, you can always purchase leads directly, which circumvents the need for aggressive marketing. Since the primary goal of marketing is lead capture, simply purchasing your leads can be a simple solution for many property managers. There are multiple benefits to simply purchasing leads outright.
Since marketing often involves vague returns, calculating exactly how many leads your capturing for your money can be tough. By purchasing your leads, you know exactly where your money is going.
Property management is a competitive market. With purchased leads, you don’t have to deal with complex marketing strategies, and you can jump straight to the point.
Purchasing leads is much faster than organic marketing strategies. Ranking on Google can take months (if not years), and advertising on ad platforms can be difficult and expensive without the right agency support strategies.
Buying leads is often combined with the above strategies for maximum efficiency. Since purchasing leads is typically the most stable source of clients, it works well with any other marketing strategy, and it can provide a consistent stream of sales for your property management team.
Finding a way to reach the right clients at the right time is mission-critical for property managers that want to stay profitable and ahead of the competition. By using one or more of these strategies, your property management team can maintain a steady pipeline of clients, which means that you can continue to focus on operation success and management strategies.
Do you want to learn more about any of these strategies?
While you are in the planning stages of starting your own property management company, you most likely are trying to keep costs down. In many industries and situations, this means employing as many DIY tactics as possible. Although this might seem like the best solution on the surface, the do-it-yourself path of starting a property management company can end up with new business owners who are frustrated, stressed out, and financially drained from trying to turn a profit.
Although start-up costs for property management companies are less than many other businesses, they include more than you might think. Here are some of the common costs for starting a property management company:
One of the first steps that you need to do when you decide to start a property management company is to form a limited liability corporation (LLC). You can have an attorney or accountant file this paperwork on your behalf, or you can file the relevant forms for your state on your own. Fees to form an LLC vary from state to state and you may choose a different structure for your business. Once you have filed your LLC, you will need to secure any permits or licenses required by the state where you want to start your property management company. These costs also vary greatly from state to state but are often no more than a few hundred dollars.
Like many other businesses, property management companies need office space to work and communicate with clients and tenants. You need a quiet space to work with computer equipment, a landline or VOIP phone line dedicated to the company, possibly a business cell phone, a good printer, possibly a fax machine, and a copier. If your budget and space allows, you should also have a separate meeting area or room that you can use as a meeting space. The cost of your office space will depend on whether you buy or lease, the size of the space, and its location. Expect to spend more than $1000 per month as long as your willing to compromise on your exact location in the city.
With today’s digital world, marketing doesn’t always involve loads of printed materials, but it still makes up a good portion of start-up costs for a property management company. You need leads for your prospective clients and tenants to turn a profit as quickly as you can, so your success greatly hinges on the quality of your marketing efforts and materials. You need a dynamic website that works well on mobile devices and desktops too and business cards at a very minimum. As you grow, you will need to continue to invest in advertising whether on the internet, television, radio, or billboards. Adding sales collateral such as brochures, eBooks or online quizzes with help you build a robust sales process. Expect marketing to cost you no less than $500 per month to play it safe.
Some startups want to avoid spending money on technology for their businesses. As a property manager, you need to spend the money to invest in the right software from day one. As your business grows, you need to be able to manage clients and tenants in an organized fashion. Not only does this save time and money, but it also gives you an advantage over other startup property management companies. The right software helps you gives your property owners the ability to get statements and receive quick payment. Tenants can make maintenance requests and pay their rent online, and potential tenants can search for properties and request showings. The software can range from thousands a month to nothing at all. We recommend checking out PM Rocket Tools, a free CRM built for property managers.
Above are only some of the costs of taking the DIY path when starting a property management company. The early phases of a business are rampant with uncertainty and startup costs. Even when using a business plan and following a set budget, you will find that costs will vary greatly, making it difficult to pin down exact costs. Purchasing a license through Property Management Pros will help eliminate a large portion of that uncertainty and help you on the path to success.
Contact Property Management Pros today and download our Cost Comparison Sheet to learn about how we can help you uncover the hidden costs of opening your own property management company.
Now is a fantastic time to get into the property management business. According to the industry experts, this year rentals will be on the rise. The reason for the increase is that mortgage interest rates are due to rise again this year making some people hesitant about buying a home. In addition, millennials make up a large number of people who would be looking for a home, and they are more apt to rent a home or apartment versus buying. These factors make the property management business a lucrative one, and things are only looking up in the near future.
However, just as with any business, preparation is the key to being successful. This property management startup checklist will provide you with all the things you’ll need to do to get ready to start operating your new business.
As a new business, you will need a license to operate your business. Check with your locality’s exact guidelines about what steps to take. When you get registered to do business in your city, you’ll also get an employer identification number (EIN). This is used on forms to identify your business.
There are different ways to structure your business entity. Your business can operate as any of the following:
Each of these has its advantages and disadvantages. We recommend checking out legal zoom to learn more about each type of business.
It’s important that you don’t mingle your business income with your personal income. You’ll want to keep careful track of how much you have coming in and going out, and the best way to do that is to keep separate accounts. Open up a separate business bank account.
Property managers these days rely on software solutions to automate day to day tasks as well as the complicated marketing process. This software will go a long way into making your daily operations run smoother and not let little things fall through the cracks. Here are a few piece of software you might want to start thinging about.
Posting your clients property online for renters to find sounds easy, but when there are over 50 different sites to post properties to, that can become a really big time investment. Tools such as Appfolio can help you automate the process. Giving you more time to interact with clients and tenants.
Even with a great sales team, managing the sales process by hand can easily get out of control. We recommend PM Rocket Tools, to help here. This is a CRM built for property managers that cuts down on research time and helps you organize all of your contacts into one central location.
Every new business needs to establish itself with a user-friendly website. The website will help direct new clients to your business and answer questions from current clients. It needs to be visually attractive, with a robust and powerful user-interface. Since you will be managing multiple properties, it’s essential that tenants have an easy way to start a maintenance request, pay their rent, and renew their lease when it expires. All of this can be accomplished with the right type of website tools.
Marketing your property management company to prospective clients is a crucial part of your business strategy. In our digitized world, a strong digital marketing component is essential. Many property management companies seek marketing help from an agency, while some firms try to do it on their own. It’s difficult to develop a content strategy while also juggling all the other property management responsibilities. Hiring a marketer could be costly but usually provides the best results and helps you scale in the most effective way.
You will need several different forms for your clients. Lease agreements, eviction notices, pet policies, and so on. Property managers will also need financial forms, such as invoices for maintenance work, receipts, and financial reports. You’ll probably want to print out income and expense data for accounting purposes, as well. All of these electronic forms are a necessary part of having a property management business.
All of these start-up requirements and tasks may seem overwhelming to the entrepreneur, but at Property Management Pros, we found a way to simplify the process. Our business model makes starting your own property management company simple and fast. With our license, you have everything you need to get started right away. We provide you with access to the tools you need to be successful including a customized website, training, technology tools, national brand recognition, marketing tools, and more. It’s like walking into an already-established business and taking over. It’s that easy. For more information about starting your own property management company with the Pros, get in touch with us today and download your Free Cost Comparison Sheet. This informational guide will show you the cost of starting your business on your own compared to getting a license through us. Compare and decide what is best for you and your needs.