Because of being lucrative, there is a constant rise in the popularity of the property management industry. There are more than 280,000 property management companies in the United States that raise the revenue of a whopping $88 billion for the industry.
You might be tempted to venture into this business, but do you know the difference between property management and simply being a landlord? Given the current situation, what type of market is there for property managers, and what kind of resources are available?
While property management may appear to be an intimidating profession for newbies, it is a surprisingly easy and affordable field to enter. It is a multi-faceted business that requires you to deal with tenants, landlords, and contractors.
If you can understand the local tenant-landlord laws, generate efficient and effective protocols, handle the risks and challenges well, you are going to enjoy the property management business, and see how rewarding it can get.
As with any other business, you have to start by setting up your company as a legal entity. This will determine the regulatory paperwork to file, the amount you’ll have to pay in taxes, and personal liability regarding investment properties in your business.
Look for the right location for your office and better find someplace where you can explore your creativity and have higher chances of being noticed by potential clients. We recommend getting a street-front office where you have a dedicated door and can attract more walk-ins.
Having a website is as important as having a physical location for running a business. You must hire reputable website development services to create a remarkable website that boosts your credibility and improves your function as a 24/7 salesperson. As many as 93% of potential buyers visit websites when they are looking for a new home.
Right from an attractive landing page to an easy-to-fill form where the customers can contact you, everything should be perfect on the website. Also, display your working phone number on the main page so that potential buyers don’t have to wait to contact you.
There are more than 60,000 businesses in the United States that fund real estate loans. The biggest names in the real estate loan industry are Federal National Mortgage Association, Federal Home Loan Mortgage Association, Navient Corporation, and SLM Corporation.
These corporations can provide you the resources to make a start and establish yourself as a property manager. Remember that it can be a challenge to enter the $33.6 trillion-dollar industry, equal to the combined GDP of China and the U.S., without enough capital in your pocket and the right kind of help.
According to the startup statistics in the United States, real estate agents and brokers are able to make a 14.3% net profit margin, making property management one of the best startup options in the country.
Some real estate agents are paid on commission, making the first few months difficult. Even after putting in hours of hard work and labor, you might not be able to get the first check until a couple of months. However, once you settle, the job gets rewarding.
You might think of it as an expensive and unnecessary investment, but given the intense competition in the market, you must set yourself apart right from the start. You can look for an affordable logo designing service that can design a bespoke logo and generate a catchy tagline.
The logo and the tagline will be used in all of your branding materials, including the website, social media pages, banners, business cards, flyers, and stationery. Your distinct identity in the market will make you stand out and easily recognizable.
Besides creating a user-friendly and attractive website, you must invest in various marketing tools so that your online presence doesn’t go unnoticed. Useful tools like SEO marketing, YouTube videos, and Google AdWords make it easier for potential clients to find your business online. Around 50% of buyers find their homes through the internet.
One of the best ideas are to invest in Google my business listing, as that is how most property managers attract their customers. By ensuring maximum visibility in your locality, you can become the go-to property manager in your town.
Many people think that a property manager can manage multiple properties on his own, and this is true to a great extent. It is said that a single man can manage about 100 doors. However, since you are going to step into the industry for the first time, it is better to hire some help.
Working with certain professionals can help you grow in the real estate industry, and clients also prefer to hire those property managers who have a strong team consisting of an accountant, a real estate lawyer, and contractors.
An accountant will track the company’s income and expenses, manage books, keep records, ensure financial transparency, and provide proper forms to keep you out of tax troubles with the IRS. They can also offer business advice to maximize profit.
A lawyer, on the other hand, will protect your company from any legal liability and look over the paperwork to mitigate the risks of a lawsuit. Lastly, a property manager requires the services of various contractors to perform maintenance and repairs on properties to be sold.
After you’ve set up your company and landed a few clients, it’s important to remember that your work doesn’t end here. To grow in the real estate industry, you need to rely on heavy networking and create connections with prominent lenders, contractors, and agents.
The best way to improve your network is to get involved in property management networking groups and make some friends within the industry. You can’t sit in the corner and expect clients to walk through that door without you doing anything.
You're current clients can also help in growing your network as they can suggest more people looking for property managers and bring in some additional investment properties. While this will appear time-consuming and tiring in the beginning, it will eventually become second nature for you if you love your job.
By talking to people, maintaining relationships, and through effective communication, you can reach greater heights in your business. In the end, it comes down to staying in touch with the community as they can keep you updated with the latest best practices in the industry.
Getting the answers to how to start a property management business is only the beginning. To be successful in this route, you need to have the dedication and put in a lot of hard work to make your name in the market.
Becoming a property manager might mean that you’ll be on your own, and that is why it is something not for everyone. However, if you have the confidence and strength to take risks, then go for it! With only 7% of buyers wanting to make a direct purchase from the owner, the scope of venturing into this career has always been broad.
With a property management company of your own, you’ll be looking forward to some big rewards if you have an eye for the right investments. No matter how time-consuming and effort-requiring the job is, your passion will lead you forward amidst intense competition.
Waiting to welcome you to our amazing family of loyal customers and are excited to work with you.