Top Tips For Starting A Property Management Company

Property management is a thriving industry, with more and more people purchasing homes to rent out, whether short or long-term. Landlords all over the world are looking for people to do all the hard work and take control of handling the maintenance and admin of their rentals, which is why it might be the perfect time for you to start your own property management company.

But how do you start one? It isn’t too hard once you know how, and there are some tips that can help ensure success from the start. We’ve picked the best ones for you, so you can start planning your own property management company today. 

What is property management?
 

Property management is a service offered by a company where you help a landlord with the day-to-day tasks of looking after a rental property. You handle many of the responsibilities of a typical landlord and save them time to do other things, especially if they have a 9-5 job to focus on or many properties to maintain. 

What a property manager does will depend on the individual or the company, but it typically involves finding tenants for the property, collecting their rent, managing the books, handling maintenance requests, and marketing the property. You may only work for one landlord, but a successful property management company will have several clients. 

How to start a property management company
 

Ready to start your own property management company? This is what you need to do:

Write a property management business plan

Any successful business needs a plan, which isn’t any different regarding property management. One of the first things you need to do is think about every aspect of the company, such as the marketing strategies you’ll use, what you aim to achieve in the long term and how you’ll get there.

Your property management business plan will outline your financial situation and how much you need to invest in getting the company started, how to keep it afloat, and how to grow it. You’ll also need to identify your company's legal structure, such as if it’s going to be an LLC or a Sole Proprietorship. 

Learn about your state’s laws and legal requirements

There are two main types of laws you need to know about when starting a property management company:

Eviction laws

If you work with a landlord who becomes unhappy with their tenant, you will need to know the laws surrounding eviction. This includes things such as how much notice can be given and what a tenant has to do to warrant an eviction in the first place. 

Landlord-tenant laws

Landlord-tenant laws are rules and regulations that apply to both the tenant and the landlord. It could be anything from how the tenant should treat the property and how the landlord should handle the deposit. You will need to know them to ensure they are being followed by both parties. 

Create a business website and choose a location

Where is your property management company going to be based? Will you be working remotely from home, or will you be renting out an office? Once you know this, you can get ready to start building your company website. 

A company website is at the forefront of many businesses and how you can secure new clients. You will need to use various different lead-generating methods, such as link-building and SEO, to ensure people in your area are finding your website. You may need to hire some extra help for this step so you can start off with the best tools. 

Set up property management accounting

Your finances will be a huge part of your company, so you need to ensure your accounting is up to scratch from the beginning. It would have been included in your business plan, but you’ll also need to monitor it throughout the growth of your company. You should track things such as overhead and salary expenses as well as third-party fees.

Sometimes it can be difficult to stay on top of your finances when you don’t have the know-how, so accounting software may be able to help. You will be able to see important patterns on your dashboard and identify when changes need to be made. 

Structure your property management team

If you want a successful property management company, you can’t do everything alone. That’s why you will need to take steps toward putting together the perfect team. 

Defining your team

Before you start hiring people for your company, you need to figure out what roles you are in need of. How many people do you want managing properties? And who is going to handle the admin side of your business? You may also want separate branches for accounting and IT.

Finding and hiring the right people

Once you know what roles you are in need of, you can start looking for people to fill them. Browse the trusted job-seeking sites for eligible candidates before offering them an interview. It is also beneficial to go through a thorough screening process to ensure you have a trustworthy team. 

Advertising your business

When your business plan is in action, you then want to start picking up clients. Without clients, you won’t be able to grow and become successful. That’s why you should put together the right marketing strategies and find the best platforms to advertise your company on. 

Identify the type of customer market you want to target and find the platforms that they frequent most often. Of course, you can use your website, but you will also want to utilize other methods, such as cold-calling and social media content, to help increase the number of clients interested in hiring you. 

Finalize your services and pricing structure

Once you have clients interested in hiring you, you will want to be confident in what you can offer them and how much you’ll charge for your services. Put together a standard service package and possibly some extra add-ons you can offer any of your clients. You will also want to have a solid pricing structure, so you aren’t over or undercharging anyone. 

Invest in property management software

While you may be able to handle all the property management services, it can sometimes become a bit overwhelming as you take on more clients. That’s when you’ll want to invest in some property management software, such as Hospiria, to give you a helping hand.

Hospiria can help you with everything from rent payments to communication between landlords and tenants. Everything is displayed on one dashboard, no matter how many properties you’re managing, and it will make your job easier so you can grow even more.