How To Open a Property Management Company
Are you ready to combine your love of real estate with your talent for working with people? Opening up a property management of your own can be a rewarding career move, but it requires some prep work before it can happen. You're going to need to talk with property owners, look for homes that need tenants, and be able to know how to find good renters that will provide income for everyone. It all begins with establishing your name in your community. As you prepare to open your property management company, get out there and meet with business owners. Speak with property owners. Have a 30 second sales presentation planned that can open doors. This is the moment of your first impression. You must make it count.
1. You May Need to Pursue Certification and Licensing
Some jurisdictions require property management companies to hold specific certifications that show they have the knowledge to do the job correctly. Most businesses today will also need a business license in order to legally operate. Secure these certifications and licenses before officially opening your doors.
2. Create a Solid Business Plan
The highlight of your business plan should be your fee schedule. How much are you planning on charging property owners for your work in finding new tenants for them? Will you also charge a percentage of the monthly rent for ongoing property supervision? Finding the right fee schedule will make you money and have property owners feeling like they got a good deal.
3. Secure a Domain with an Optimized Website
Most potential tenants are going to look online to see what rentals are available in your community. Instead of going to a free site like Craigslist, you can create more potential prospects by optimizing your site so that it appears at or near the top of search engine listings.
4. Network Like You've Never Networked Before
You never know who might have a friend that is looking for a great property management company. You cannot discount any connection that may form in your community and you've got to be proactive at forming them. If you ignore the wrong person based on assumptions, then you are very likely costing yourself profits.
5. Be the Change That People Want to See
Property management companies aren't very popular because they enforce the law. They're even more unpopular because tenants feel like it is an “us vs. them” type of environment. If you're the change that people want to see, the property management company that is willing to form solid relationships with tenants, then you'll be able to build a company from scratch in no time at all. If you want to know how to open a property management company, then these 5 tips are just the start of the process. You will need to work every day, be on call 24/7, and build relationships with local contractors so that emergency repairs can be completed as mandated by law. Get to work today on your certifications and licenses and then keep working hard.
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