Property Management Business: How to Start a Property Management Company


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The amazing thing about property management is its low start-up capital. You will think anything to do with property requires huge investment, not property management.
The property manager lends his expertise to supervise and manage someone’s property. A property manager’s job is to oversee a property. The person should have specialized knowledge and networking with people in the property industry.
He needs to understand state laws concerning property and offer effective solutions pertaining to property management.
A property manager can be an individual or own a property management company. The job entails middle management and care of residential, commercial or vacant property.
Property mangers have other responsibilities which include maintenance, inspection and rent collection. Estate agents and Realtor including lawyers moonlight as property managers.
Characteristics of a Property Manager
The first characteristic is the ability to organize things. Others are honesty, dependability and a problem solving. A land lord needs to see these qualities in the property manager to trust him with his property.
Property managers earn good money and they need to know local government laws. There is no hard and fast rule on becoming a manager.
Some countries require the estate manager to have a real estate license. In advanced countries the managers get certified. There are also property management unions or associations to join.
How to Start a Property Management Company
Starting a property management company is no different that starting any business enterprise. You need to register your business name and make it a legal entity.
Incorporate your business as a limited liability company and acquire state license to operate in the real estate sector.
Set-up a corporate office in a moderate area or a home based format. The basic equipment you need is a computer, a fax machine, dedicated number and other office paraphernalia.
You then join an estate agency union or association in your locality. You can connect with property lawyers, building construction companies and learn local government laws on reconstruction, permits and legal issues. The next step is to find property owners like land lords who require property managers.
Your scope of work includes residential houses, offices complex, vacant plots and renovation work. Other things you do are property maintenance, development and supervision.
You need other tools to effectively attract clients such as business cards, advertisement in local daily’s and billboards.
Finding Clients
To find clients that require property managers you can build a website, do aggressive marketing and join associations.
Spend a little on newspaper advertisement and hand out handbills. Find clients at local real estate investment cubs or land lords associations.
Lawyers have landlord clients that regularly need legal representation. Get connected to such lawyers and solicit property management contracts.
It is not unusual for land lords to seek management advice from their lawyers. The lawyer can recommend your services if you’ve made the connection.
Another good referral source is real estate agents. However in some countries real estate agents double as property mangers depriving you of business.
The reason some estate agents hold on to property is to become the direct agent and an assurance of earnings on rent or sale of such properties.
Another source is banks that have lots of acquired property because of bad loans. Going into renting apartments or houses is a grey area for property managers.
It follows the same reasons why real estate agents act as property managers and property mangers doing the function of real estate agents.
To fill rental units place a simple banner in font of the property with ‘House to Let’. Add your office address and phone umber for prospective clients.
Place small advertisements in local newspapers and on classified property websites. When renting a property have a strong lease agreement and verify client’s employment status.
You don’t need someone to pay the first year and become a burden in subsequent years.
Build a Website
You can build a website and target it to your location. Create a local identity and promote the site through social media, paid classified. Another method to reach property owners is through Adwords or Facebook advertisements.
Place your business in yellow pages, use press release and web directories to increase your websites visibility.
Marketing your Business
Apart from having a powerful website to reach clients use print media. Have lots of complementary cards, handbills and do public awareness.
Network with local investors, land lords, lawyers, local business owners and real estate clubs. Not all real estate agents double as property managers reach out to them and offer commissions.
Another way to reach customers is through local building contractors. Promoting your business to local contractors is a good idea because they work closely with land owners.
More on Property Management
A property manger most be dependable, truthful and trust worthy to handle a landlords investment. The job of a property manager is to effectively manage any property in his care.
They minimize risk associated with maintenance, tenancy and renovations. Part of your duty is to maximize the profit potential off a property and adhere to local legal laws.
You need proper networking with building contractors, real estate agents, lawyers and local government authorities. Having competent and affordable contractors guarantees professional work and profit margins.
Develop you own method to estimate service chargers according to the management deal. Every job is different but having a frame work makes reaching a fair price easier.
A good way to learn how to charge is to understudy established property managers. There are also lots of online resources to help determine your charge per property.
Recap-How to Start a Property Management Company.
1             Get a good business name
2             Register your company as a limited liability company
3             Get certification or license to operate in the real estate sector
4             Open a corporate office or work from home
5             Equip your office and get a secretary to type proposals and answer calls
6             Network with estate agents, building contractors and lawyers
7             Promote your business through print or other media
8             Offer professional services and competitive price
Conclusion
Property management is a tough business but the rewards are high. You need to build a good reputation because landlords talk to each other and might recommend your services.
Always put your client’s interests first and abide by state laws and regulations.

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