Property owners are constantly being told that one of the best things they can do is hire a property manager. If you know a thing or two about the rental market, it’s time to consider taking on that role.
By starting a property management business, you can cash in on the thriving rental market without the headache of investments. That’s not to say, however, that it’s easy to start a business.
We’re here to walk you through the first few steps to take when putting together your own property management company.
Read on to learn how to take this great idea and put it into action.
Start With the Legal Things
Almost every state will require that you possess a real estate license in order to become a property manager. The good news is that becoming licensed takes far less time and money than getting something like a four-year degree.
You will also want to register your property management business as an LLC or Inc. This step will open the door to securing financing, a location, and more.
Put Together Your Business Plan
Next, it’s time to put together a business plan. This is going to include everything from the name of your property management company to your mission to the projections you’re setting for the next one, three, five, and ten years.
A business plan is crucial because it works as both a pitch to investors and a guide for your own purposes. As you continue to operate and grow your property management business, you can continue to reference your business plan to ensure that you’re on track–and pivot if you aren’t.
Put Together Your Team
Property management isn’t a one-person job. It requires a team–even a small one–that can tackle everything from showing properties to collecting rent to fixing a leaky faucet. Usually, these teams consist of a few full-time employees and a handful of trustworthy contractors.
Not all of your team is going to be, essentially, customer-facing. Find out more right here about why you will want to work with a consulting firm to help you keep operations running.
Start Marketing Your Property Management Services
Once you have enough of the internal organization in place, it’s time to start marketing your property management services. This is the time to make use of any personal connections. Reach out to any real estate investors or agents that you already know and start building up a portfolio.
Remember, you don’t want to rely on word-of-mouth, alone. Market your services online and off and take advantage of any networking opportunities in your region.
Get Your Property Management Business Off the Ground This Year
There are tons of property owners out there who don’t want to function as landlords. By starting a property management business, you can help them to grow their investments and turn a handsome profit at the same time.
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