While starting your own property management company might be a challenging endeavor, note that property management can be both a highly interesting and rewarding field to get into. Did you know that the property management industry projects to reach almost $22 billion by 2023? And growth like that simply makes it more appealing for property managers looking to start a property management business from scratch.
Want to know how to start a property management company? We have you covered. Like most other businesses, a property management company needs some key business elements to be successful, such as marketing, branding, and strategy. Note that a property management business mainly involves managing various real estate types, such as condos and people. So, you will have to maintain a professional and courteous relationship and communicate with several contractors, tenants, and landlords.
Also, it is worth noting that the need for professional property managers is increasing. The high demand is due to the property market becoming geared toward tenants, not property owners. And because of this, the market for property management is witnessing an increasing demand that you do not want to miss out on
Keep in mind that renting out a property involves more than merely finding tenants who are willing to pay the asking price. Property owners and investors understand that there is a lot involved in successfully leasing out their property. This need is where property managers can provide their expertise.
A well-run and successful property management company leverages marketing, software, branding, and best practices in order to obtain properties and fill them with suitable tenants. Use these tips to start a successful property management company.
1. Choose a Property Management Company Name
There is no doubt that choosing the right name for your management company is very important. Do not forget to think about your property company name beforehand. Note that your property company name is usually the first thing potential tenants, owners, and competitors learn about your property management business.
And it is important to make it memorable and simple by creating a visual name. For instance, if your property management business is by the ocean, then you may consider naming your company Wave Property Management.
2. Registering Your Business
You can decide whether to register as a partnership, sole trader, or company when starting a property management business. The benefit of establishing a legal business entity, like an LLC, helps prevent you from being personally liable if someone sues your property management business. You can choose from many business structures, such as corporations, LLCs, and DBAs.
And if you start as a sole trader, it means that your company’s tax will become part of your individual tax assessment. As a sole trader, you will have the freedom and luxury to work for yourself and only comply with your personal tax requirements.
3. Get a License for Your Property Management Company
You will also need a property license in order to start your property management business. Remember that most states usually require either a property management license or real estate license before you can start working as a property manager. Note that both of these licenses usually require completing a comprehensive educational course, passing a licensing examination, and filing the application as well as fees.
Also, to be successful in your application, it is important that you meet the following criteria:
- Your property company must be of fit and proper nature.
- Your company’s directors should also be of fit and proper character.
- All executives and directors should have relevant qualifications.
- One director (at least) should hold an individual license in the property management industry.
4. Brand your Business
You should adequately brand your property management business from the beginning to set yourself apart from your competitors. Your branding is crucial as it defines who you are and what you do as a property management company. Note that it should be a direct and honest representation of your corporate culture and values.
Are you a specialized and boutique property management firm that offers specific services? Do you only focus on luxury Class A properties or HOAs? Keep in mind that all of these factors often contribute to your overall brand.
Branding also includes creating an engaging and memorable logo and a tagline for your management business. This is because you will be using this in all your branding materials, such as your banners, website, social media pages, flyers, business cards, and stationery.
5. Build Your Company Website
You probably know that having a strong online presence is essential in today’s digital world. So, you have to develop an intuitive property management website for your business where your potential clients and tenants can locate your company. Also, it is vital to ensure that your business website is well-designed and simple to navigate. And you can easily achieve this by working with experienced professionals who specialize in developing sites for property management companies.
Do you want to turn your property management company website into a lead generating machine? Use Podium’s messaging tools to leverage the convenience and ease of texting to get the job done.
Within your website, you should ideally have a property management specific landing page for the relevant area(s)you do business in. A functional property management website will let your target audience and potential clients evaluate you based on case results, reviews, and videos.
Also, make sure that it contains a lead form where your customers can easily contact you. When your website is up and running, the next important step is creating a customized email account for the company. Use Podium Webchat to connect remotely with your website visitors and turn website traffic into leads.
6. Determine Your Fee Structure
Your next step is to determine how you’ll get paid. For example, you can choose to charge a flat monthly property management fee, which is a specific percentage of the rental income that you collect. On the other hand, you may charge additional fees for particular responsibilities, like a setup fee of a couple of hundred dollars in order to set up a new account with a property.
7. Find and Hire the Best Personnel
To run a successful and thriving property management company, you will need strong and experienced candidates for your team to handle various responsibilities. To achieve this, make sure that you write a clear and accurate job description. You should also make the most of ads that detail the benefits, perks, and culture of your property management company.
After hiring the right people for your team, make sure that you keep them motivated, happy, and satisfied. You can use Podium Teamchat to increase collaboration between your team members. Keep in mind that happy employees are usually the best tools to attract and retain new talents and represent your property company to residents and property owners.
8. Marketing Your Business
One of the best tips for starting a property management business is embracing education as a marketing tool. You may know that often landlords and owners hesitate to hire a property manager. And this is usually because it is somebody that they do not know, and they’re handing over one of their most valuable assets. So, embrace education via means, such as blogs, videos, or when somebody calls in to ask questions regarding a specific situation. Keep in mind that the more help you will provide, the more clients you will gain.
9. Optimize Your ‘Google My Business’
Did you know that Google My Business (GMB) is an excellent free listing that your businesses can claim? And it is beneficial if you serve local clients. Many marketers and advertisers also call it the new small business homepage as the listing shows in Google before your potential customers visit your business website. Note that even if your property business isn’t open yet, you would like to create your listing by visiting GMB’s site and walking through all their steps.
After creating your listing, you can add your property company’s photos, contact information, and even solicit reviews from your new customers. Download our Beginner’s Guide to GMB to get your business found and bringing in clientele.
10. Use Offline Marketing
Also, you should give a try to offline marketing. While it might sound a little old school, it certainly works. You can use newspapers, cable channels, and magazines to advertise your business. Choose the right marketing channels after considering the results of your local market analysis.
11. Find Accounting Software for Your Property Management Business
Although you may operate your property management company from your home or a small office, keep in mind that the right software and technology will make it much simpler and more manageable. For example, with the right software tool, you can easily organize your financial records, tenants, properties, and contracts.
12. Leverage a Property Management Software
You have many tasks to complete when listing and renting a new property. These tasks range from advertising your listing online and processing several applications to taking payments.
With modern advancements in technology, you have to look for innovative ways to get the best automation tools and solutions for your business. Note that this will not only make your daily business operations more effective and efficient but can also provide your business with a competitive edge to beat out the competition.
Moreover, it is worth noting that operations-specific management software also works as an excellent marketing tool, helping attract new clients.