The question is, “How do I start a property management company?” The answer is, “It is either easy or difficult.” How do you want it? Starting a property management company is no different than starting any business; you need an entrepreneurial spirit; you need capital, and you need experience.
Many people have the first two prerequisites but not the third, and it is often the lack of experience that is the cause of a small business failure.
The tough way is to start from scratch; you will have to set up your business, register it with the authorities, and get stationery and business cards. That’s the easy part; the hard part comes next. You must find clients that will trust you with their investments, and if you establish a client, can you perform? Can you keep the unit or units fully occupied with quality tenants? Can you ensure the maintenance and repair is at a minimal cost? Can you handle the financial feedback that the owner will demand? There are many other issues that you will have to address, and if you have never had any management experience, you will be like a fish out of water.
How to start a property management company the easy way is through franchising. Entrepreneurs have turned to franchising for many reasons; the primary reason is to learn and take full advantage of the years of experience the franchisor can offer you. Why should you struggle to learn something that is already available? You have decided to enter the property management business for good reasons; the core reasons being,
Revenue potential: A strong support system from the franchisor will maximize your revenue and earnings.
Track record: When you deal with a group that has many years of experience, you gain instant access to the most up-to-date tools available; you ramp up quickly and avoid frustrating, costly errors.
Tested system: A successful franchisor will have tried and proven systems that have been developed and honed over the years. The best systems give the opportunity to take advantage of a true competitive advantage.
Growth industry: More than 30 percent of all real estate transactions are between a tenant and an investor-owned property. Investors continue to purchase foreclosed properties at an amazing rate.
Branding: Real estate investors will migrate to a brand they recognize and trust with their property portfolio.
Recession resistant: People always need housing, and owners always need tenants; as the facilitator, you stand to win.
How you go about starting your property management company is your choice; you can go independent and lose valuable time and opportunities, or you can fast track by franchising from a well-respected company.
When you want to know how to start a property management company, look no further than Real Property Management. With 25 years experience and over 200 franchised offices, nobody knows property management better.
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