How To Start A Property Management Company

Are you thinking about starting your own property management company? Do you want the chance to work for yourself or need a job in property management and can't find any other open doors? In many communities, it often costs less than $10k to get a property management company off of the ground. Although having a real estate background is helpful, it isn't required. As long as you get your certifications and licenses that your jurisdiction requires, you're ready to get into business.

It all begins with how you set up your office. You can work out of your home if you wish, although most customers and potential tenants would likely be more comfortable going to an off-site location. You'll need your typical office equipment, a solid website, and other items that will help you begin to network.

Establish a Customer Base

In order for you to be in business, you've got to have clients. Property managers need property owners to sign on, but you've also got to find tenants to fill those properties. Occupation rates will make or break you as a property manager. If you can't find people who can pay rent, then property owners aren't going to contract with your agency.

Maintain Open Communication Lines

Your ability to operate in a transparent, honest method will be your greatest attribute. Property owners want to know that they're getting good services that are keeping their assets in good condition. Tenants want to know that you'll treat them fairly and not try to steal their money. Make sure everyone knows your expectations beforehand and you'll have few problems afterward.

Be Proactive

The biggest challenge that any property management company faces is problematic tenants. Be proactive about tenants that slip through the cracks of your background and credit checks to make sure they're following the leasing agreement. If rent isn't paid on time, serve notice according to the agreement as soon as possible, quickly investigating any complaints. Do regular inspections based on local laws to make sure tenants are maintaining compliance. This way problems can be stopped before they start... or can be eliminated quickly.

Offer Incentives

A tenant relationship is ultimately a business relationship. If you want to make money, then you've got to make sure that you are creating a level of perceived value in each property that is being managed. If there's no value, then there will be no tenants. The same is true with your property managers. If they don't see any value in your services, then they won't sign on with you.

Form Relationships

Go beyond the tenant relationship and even the property manager relationship to establish your business. Speak with local businesses about their needs. Get to know community leaders. Join local organizations that make sense. If you put yourself out there and begin to form relationships through networking, then you'll be giving yourself a strong foundation of success for your business for years to come.
Posted on Sep 12, 2014


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