Why Should You Be Starting A Property Management Company?
Property management is the perfect self-employment opportunity for a few different reasons. This business has a low start-up cost (usually less than $10,000, depending on what exactly you need and how big you plan on being), you don’t require any special degrees or licences to get started, and it’s not a job that requires you to have any previous experience to master.
If you’re a well-organized people person, you’re already equipped with half of what you need. Having some sort of real estate background can be helpful to your business, but it’s not a huge deal if you don’t.
What You’ll Need
Once you’ve decided that you want to get into property management, there’s a couple of things you’re going to want to do before you start looking for clients. First, you’re going to want to build relationships with local contractors, electricians, cleaners, landscapers, and anyone else that you feel would be beneficial to helping your business grow (unless you’re small-scale and intend to do all of this yourself).
Once you’ve established enough relationships to be comfortable, go to your prospective clients (make a list of ideas and properties you’d like to manage beforehand) and suggest various ways that they could improve their lot (enough to show you’ve been paying attention, but don’t rip apart their establishment). The goal is to have the owner outsource his/her duties to you.
Then all you need is a legal entity (LLC and INC are fairly common) and an office (which can usually be remote and/or mobile) and you’re good to go!
You could go out and pound the pavement until the soles of your shoes wear out, but obviously getting leads is quicker and easier. Make friends with real estate agents, contractors, cleaning companies, and anyone else you know that works on properties. Becoming a part of your local Chamber of Commerce can also get you some good business.
As for advertising, you should utilize both online and offline channels. Print business cards and flyers, but also focus on your website and email lists. Hold local workshops, but remember to post them (or at least parts of them) on YouTube, Facebook, and other social media sites. Word of mouth is a powerful thing, use every outlet you can to get that word out there.
What are your tips for beginners that are thinking of starting a property management company?