business plan for startup property management company

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a property management business

You prove the ability for your property management company to manage properties by doing it. Real estate owners notice this success and if your company does the job well for a single property, you will get plenty of offers to manage other properties.

Sending reports to property owners about your property management successes is a terrific way to find new business. The owners of properties and their contact information are easily found by simply searching the public tax records.

Going to seminars or conferences that real estate investors attend, networking with them, and handing out business cards is good. Joining business associations, social clubs, and the local chamber of commerce helps promote the business.

Networking online by using the LinkedIn social media system for business persons is a good idea. Having a website with high-quality content that is designed for search engine optimization (SEO) and using pay-per-click (PPC) advertising campaigns on the Internet to create web traffic to your website are also effective.

How to keep customers coming back

Property owners appreciate property management companies that keep everything rented. The goal is always to have a high occupancy rate. Owners also appreciate property management companies that are very successful at finding good quality tenants by conducting a credit and rental history search to make sure the rental applicants have a good history of renting from others, without any record of evictions.

A track record of proven, superb performance in managing buildings will help you retain your customers. This is also the attraction for other property owners to engage your company for managing their buildings and will help expand your operations. Real estate owners are always looking for great property management companies, so if you show a job well done you will retain your existing property owners and find many more property owners that will contract with you for property management services.

Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

Using our website building guides , the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Start a Property Management Business in your State

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Is this Business Right For You?

Your company will be on-call 24/7 and you must enjoy dealing with all kinds of people. The best property management companies treat the properties as if they are the owners, which they also might be. They have full or partial responsibility for the building(s) that they manage and are good at screening tenants to find good ones, without discriminating. They are problem solvers and take appropriate and prompt legal action to evict destructive and/or non-paying tenants. You will have to stay calm and manage emergencies without getting overly stressed about the problems because there will be a constant stream of new problems to deal with.

Real estate brokers are good candidates for starting a property management company as either a division or a subsidiary because they already have many contacts with property owners, as well as relevant experience in the industry.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

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What happens during a typical day at a property management business?

As an owner of a property management company, you will need to be able to manage properties remotely for routine matters and be on-site for matters that require personal attention, such as emergencies and showing vacant apartments or rental spaces if the building is a commercial one.

For example, if your property management company manages a large group of single family homes that are rental units you will be constantly checking on them. You will be working with the vacant ones to get them rented as fast as possible. You will be constantly inspecting properties to make sure everything is OK with them and any work needed is being done properly.

You will have an extensive list of to-do items, which changes every day. There is industry-specific property management software available that helps keep track of everything. You must be able to multi-task and constantly get the most critical things accomplished as fast as possible.

Rental properties need constant maintenance. Any vacant properties need to be cleaned up and repaired quickly to find a new renter. The main responsibilities are to keep everything in good condition, manage the tenant relations, and show the vacant places, which are made attractive to reduce the "down time" when the rental properties are vacant.

What are some skills and experiences that will help you build a successful property management business?

Because it is very difficult to remove a bad tenant, skilled property managers will need to be thorough and meticulous in their professional life. Being organized will not only make the job easier, but it will also help you respond quickly whenever issues do come up, whether it is trouble with a tenant, or with the property itself.

You should also be comfortable dealing with all kinds of people.

Having worked for about three years as a property manager prior to starting your own property management company is a very good idea.

What is the growth potential for a property management business?

A privately-owned REIT called Blackstone in the past years, after the real estate market collapse, bought about 50,000 single-family homes all across the USA, with the intention to convert those properties to rental units. A property management company that lands a contract with Blackstone to manage their rental properties would earn many millions of dollars each year.

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Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

There needs to be an appropriate level of staff that is capable of managing the workload. Adding new staff when increasing the numbers of properties that the company has under management is fairly straightforward. The workload sets the pace and the income earned sets the price you can pay for the additional staff.

Get more ideas with our Business Ideas Generator .

Check out our How to Start a Business page.

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Start a Property Management Company: Beginners Guide

The Beginners Guide to Starting a Property Management Business

Starting a property management company involves an incredible amount of hard work and knowledge in order to succeed. This is especially true in the real estate industry. When somebody decides to start a business of their own, they are committing to spending countless hours dedicated to succeeding. But although there are endless success-driven individuals who are willing to put in the work necessary to succeed, they may not even know where to begin.

If this sounds anything like you, you have come to the right place. Below, we have outlined the entire process of how to start a property management business. We also included some general information and tools that could benefit you along the way.

What is a Property Management Company?

One of the first things that you should be very familiar with when starting your property management company is: What are you going to be doing ?

In simple terms, a property management company is responsible for assisting landlords with various day-to-day tasks of real estate management. The company allows the landlord to not have to worry much about the mundane responsibilities that they deal with.

Now, different property management companies may provide different services, but many of them revolve around similar basic services, including:

Overall, your property management company could be responsible for all of these services, and maybe even more. These are only the basic responsibilities that landlords have to deal with, until they find a reliable property management company.

Still interested? Read on to familiarize yourself with the entire process of how to start a property management company.

How to start a Property Management Company

If you are already committed to starting your business, you are already one step ahead of everyone else. The next step is to gather the necessary knowledge and procedure to make sure that you can execute your idea.

Below, we have listed a comprehensive list of steps that, if followed correctly, will provide you with a robust grasp of what needs to be done to start a property management business.

1. Learn about your state's laws and legal requirements

This is an essential foundation that must be done before anything else in the company. In every state, there is a long list of laws that must be followed in order to avoid any legal conflicts with your business.

Although some of the laws are pretty self-explanatory, some of them can be confusing, and it is important to understand them to their full extent, especially the eviction laws and landlord-tenant laws.

Eviction Laws

In the real estate industry, an eviction is when a landlord forces a tenant to move out of the property. There are many steps that must be taken before carrying out the eviction as it could become a legal disaster. There are also many actions that a landlord is not allowed to take when carrying out an eviction. If the landlord were to break any eviction laws, they could face a heft lawsuit.

Not sure about your state's eviction laws? Find them here to find out exactly what they entail.

Landlord-Tenant Laws

Landlord-Tenant laws are laws and regulations that govern the way that commercial and residential properties are rented out. These laws apply to both the landlord and the tenant, and they should be followed by both parties as well.

As a property management company, it is important that your clients are aware of the legal requirements and regulations. These rules must be followed in order to avoid any legal conflict or lawsuits. If you want to learn about your state's landlord-tenant laws, visit this website to learn everything you need to know.

2. Acquire the necessary licenses and certifications

In most states, it is required that individuals involved in real estate complete a formal education or certification before beginning. Although it may not be required in your state, you should still get some sort of license or certification. This serves to attract more clients and be more knowledgeable about the business.

As a property manager, an important license to obtain before starting your business is the Real Estate Property Management License. This license provides specific training on how to effectively act as a middleman between the property owner and the tenant.

Another license that may be useful to obtain before starting your property management company is a Real Estate Broker's License. This license, along with the coursework and exam, covers various topics like property management, insurance, leases, and many more.

There are only a handful of states that do not require such certification to become a property manager, so it is important that you make sure that you are up-to-date with your state's requirements and that you are following all of them precisely.

3. Write a Business Plan

Now that you have completed the homework for your business, it is time to actually start thinking about the functionality and framework of your company. This is a crucial step when starting up your business, as this is where you are going to describe every single aspect of your business, from marketing strategies, to a potential customer base, to your short-term and long-term goals.

Along with writing a business plan, it is important that you determine where you are going to conduct business, and with what financial resources. This means that you should make sure that you have a suitable workspace that suits your needs as a business owner. You should also set up a business bank account after choosing the legal structure of your company.

A very important aspect of your business plan is the legal structure of your company. Typically, a property management company starts as either a Limited Liability Company (LLC) or a Sole Proprietorship. It is important to know the differences between these two legal entities in order to choose the one that is best for you and your business.

Limited Liability Company (LLC)

A limited liability company is a business structure where the owners of the company are personally protected from the company's debts and liabilities. This means that the owners of the LLC can not be pursued in any way for repayment of the company's debts or liabilities, as it falls on the LLC itself. Also, an LLC does not pay taxes as the entity, as it passes the losses and gains to the members, who report them in their individual tax documents.

Sole Proprietorship

A sole proprietorship is a type of unincorporated business where there is only one owner. The owner of this company pays taxes for the company on their personal tax documents. This is the easiest kind of business to establish, as there is not much regulation, and it is freely set up.

4. Plan your Finances

Although this should be included in your business plan, it is important to continuously monitor every single cent that comes in and out of your business, from the beginning. Apart from recording your company's expenses, it is also vital that you have an efficient method in place for keeping track of all of your client's property expenses as well.

Some of the most common expenses that a property management company faces include:

Apart from planning for your expenses, it is also important to plan out what your future goals are in terms of profit, and form an effective pricing structure to compete with local real estate companies.

For a property management business, there are not a lot of upfront costs to begin managing properties, so a property manager could break even soon after starting the business. After that, it is all about making your business as efficient as possible and setting realistic financial goals to make sure that the company continues to be profitable.

If you struggle to keep up with these goals, or lose track of your company's ex

enses or profits, you may be interested in some sort of real estate accounting software to help you stay on top of your business's finances.

What is a Property Management Accounting Software?

A comprehensive accounting software could be very helpful for keeping track of all of the finances of your company and could help you determine future financial goals. It can also help you, as a business owner, determine what aspects of your business are not generating a profit and which ones are. Also, some accounting software, like DoorLoop , offer a plethora of services apart from accounting services that could help you, as a property manager, streamline your business by keeping track of every aspect of your business, all in one place.

5. Determining your Team

When you have every other aspect of your business settled, it is time to think about the people that you would want on your team.

This does not necessarily have to mean that these people are going to be doing the same work that you do. One single person could manage a plethora of properties by themselves, without the need for assistance. This team of people could refer more to a group of people that help you with external services that do not necessarily have to do with property management. These people do not have to be part of your payroll, or even part of your company, but they can provide services that could become very useful in certain situations.

For example, in the world of real estate property management, there are many chances for a lawsuit to occur. A Real Estate Lawyer, however, makes sure that your company is completely protected from any legal risk that may leave the company vulnerable to a lawsuit. A lawyer can also help you understand your state's laws and regulations and help protect your assets from becoming liabilities.

Other examples of people who you should consider adding to your team are contractors that you hire based on the services that the managed properties require, like plumbers or painters. It is important for you, as a property manager, to have a reliable team of contractors ready to service the properties that you manage.

6. Advertising your Business

One of the last, and most important, steps for kickstarting your property management company is effective advertising and marketing for your company.

There are various different methods for gaining exposure for your business, and it is important that you develop a specific marketing strategy that is catered to your company in order to grow your client base. When done correctly, your company's marketing strategy could kickstart your business and get some of your first clients.

What to include in your marketing strategy?

Although there is no concrete marketing strategy that works for all businesses, property managers who are starting a property management company should make sure that their marketing strategy includes:

Although most of the strategies listed are of the new age and involve the use of technology, the traditional word of mouth marketing method could also prove effective in the real estate industry. For example, you can approach a local real estate agent and inform them that you are a property manager and ask about properties for rent and any contacts of people looking to rent.

Any combination of these, with the right determination, is sure to significantly increase exposure for your company.

7. Invest in Property Management Software

Managing properties, with or without a team, is a complete hassle that involves numerous tasks that must be completed in a timely manner. It can get very difficult to handle all of these tasks by hand, so many property managers turn to property management software to ease some of the stress of having to handle all of these responsibilities themselves.

If you are not sure about what to look for as a property manager, we have outlined some of the most important features down below to help you begin with your search.

What to look for in a Property Management Software?

When looking into property management software, it is important to keep your business's needs in mind first. You want to look for property management services that cater to the tasks that your business is responsible for completing to make sure that you get the most out of your investment.

Some of the most important tools that come with property management software include:

These are all features that become very valuable for property managers and even more important for owners of property management companies. Although software is not required to complete all of these tasks, one that does all of these would really come in handy if you are someone wanting to start a property management company.

Which Property Management Software to Choose?

If you find yourself unable to choose between the plethora of property management software choices available, that's completely normal. It can be tough to know exactly what you are investing in, and you always want to make sure that you are making the correct choice.

To make your life easier, we have put together a list of the 15 best real estate software that you can use to ease the decision-making process.

If you are interested in an all-in-one property management software that offers all of the features mentioned above, and even more, check out DoorLoop for as little as $49/month for the first 20 units.

Bottom Line

Starting a business is nothing close to an easy task. It takes a special kind of person to successfully start their own business and stick with it while it grows over time. Over time, however, you become an expert at managing your properties and advertising your business to more and more customers. If you put the work in and follow the procedures listed in this post, you will find yourself surrounded by clients of a fully functioning real estate management company.

David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!

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How to start a property management company the right way

Download Buildium’s 2020 State of the Property Management Industry Report

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Published on February 7, 2023

The property management industry is projected to surpass $26 billion by 2026. Growth like that makes the market appealing for property managers looking to start a property management company from scratch, take on more doors—or even real estate brokers looking to try it out.

Still, there’s a lot to think about before you dive headfirst into property management. That’s why we’ve put together a comprehensive list of what you’ll need to do before you open your business’s doors to owners and residents.

Read through the whole guide (or check out the video above) on how to start a property management business or jump to each section to get a picture of every bit of hard work that goes into starting your own property management business—and how to make each step easier.

How to Start a Property Management Company: Article Guide

Before you do anything else, you’ll need to be properly licensed, file your business name and create a business plan—which we recommend doing first so you can size up the opportunity in front of you.

How Do You Write a Property Management Business Plan?

A business plan serves as the framework for your entire property management business. The point is to plot out every aspect of your company from your startup capital all the way to breaking even.

Per the Small Business Administration (SBA), a formal business plan has these things:

The SBA also furnishes business plan examples for those writing one for the first time.

Pro Tip: A business plan for property management, specifically, will outline the types of clients you intent to target (multifamily, single-family, associations, etc.). It will also outline the services you will provide. For example, do you intend to operate as a boutique property management business offering concierge services, or will you target smaller owners looking for basic help with rent collection and leasing?

What Property Management Certifications and Licenses Do You Need?

There are only a handful of states that don’t require some kind of licensing for property managers . Before you set up your business, make sure you have the up-to-date licensing to practice in your state, especially since housing regulations tend to change fast these days.

Some certifications, while not required, will help augment your business. A certified property manager, for example, holds a real estate broker’s license and has completed coursework on property management topics.

Finally, there are associations, both national and international, that can help you network, give your business credibility and nurture your staff with continuing education and certification in property management. Those include:

Get a breakdown of licenses, certifications, and associations through our blog post: Property management certifications that give you an edge .

How Do You File Your Property Management Business?

Next, you’ll need to file your business for tax purposes and choose a legal entity. This is critical so that your personal assets are protected and separate from your business.

Most property management firms are set up as an LLC, or limited liability corporation, but S-Corps and C-Corps are also strong contenders with more legal protections.

You will have to think about whether you want to file as a pass-through business like an LLC—where money passes through the business directly to you—or whether you want to file as a C-corporation and be paid as an employee.

C-corporations risk having a double taxation problem, but you shouldn’t have to worry about that if you have a good accountant who knows the laws. S-corporations pass through the taxes to the shareholders, so there is no chance for double taxation. The profits are taxed as personal income instead of business income.

Learn more about filing the tax status of your business here .

Do you have a revenue goal in mind for your first fiscal year? If not, start thinking about one—it should be in your business plan. How much income do you expect? What are your expenses going to be? How much should you put aside for the unexpected?

Keep all of this in mind as you start planning out the financial future of your company.

How to Set Up Your Property Management Accounting

Keeping track of your owners’ properties can be basic as updating a spreadsheet (although we don’t recommend that). There are comprehensive property management accounting platforms , however, that can not only help you keep track of rent and fees, but can monitor expenses and pay regular bills.

They can also help you track money coming in and money going out. Income can include rent and other revenue streams received from renters, for example. While money going out can involve repairs and other payments to vendors for maintenance.

Pro tip: Setting up your bank account structure will create the foundation for disciplined accounting. First, you’ll always want to keep your security deposits in a legally compliant trust account , with a separate account for your owners’ properties and yet another operating account for your business.

If you need an accounting refresher (like pretty much everyone), check out our Accounting for Non-Accountants 1) webinar and 2) guide .

What Expenses Should You Expect?

Record every monthly, quarterly, and yearly expense you have. Don’t leave anything out. Keeping track of every penny that goes out the door will help you set realistic revenue goals and help you stay out of financial trouble.

Your expenses will most likely include:

Forecasting Revenue and Setting Goals

You can expect most of your revenue to come from management fees, which is usually a percentage of the rent charged. Some businesses, however, charge a flat fee for basic services . Owners can then opt for more services for a higher fee.

Other income will come from late fees, key or lock replacement fees, finders fees for bringing in residents, maintenance bill mark-ups, and other smaller fees and charges. Check out a full list in this post: Income and Expenses: What Property Managers Need to Know .

Once you’ve laid the groundwork, it’s time to start getting the pieces together that will fuel your efforts—the people and the tech they’ll use.

How Should You Structure Your Property Management Team?

There are two basic models you can set up for your property management business. The first is to start off as a general property manager who handles all management responsibilities. That would include leasing, inspections, resident communications, owner communications, fees and rent collection, and maintenance.

The other option is to hire staff members to perform more precise roles. You may have one staff member handling leases and other managing maintenance, with repair specialists or contractors working with them.

In that case, you would have a more defined organizational chart, with tiers of staff members reporting up to you.

Defining Your Team

If you’re just starting out, your staff is going to be minimal. It may even just be you for the time being, and that’s fine. As you grow, you’ll organically bring on people to help you.

Your staff may be made up of full-time or part-time employees, or contract workers. The first step is to decide what kind of work you need done and then determine if it’s worth putting someone on the payroll or outsourcing.

Full- or part-time employees you may consider are:

And just because they aren’t on the payroll, doesn’t mean that a team member or company isn’t a dire need. Below are some contractors that property managers rely upon:

When hiring any vendor, make sure to get a copy of their license, insurance certificate, and bond certificate (if they have one) to protect your company if something goes wrong. Also, try to fight for a reduced rate for your property owners—they will appreciate that you worked hard to save them money.

Pro tip: There are software solutions that can be the hub for all your operations. Buildium , for example, provides a platform that helps you handle accounting, 1099 filing, communication and maintenance tasks, reducing the need for extra staff.

Property Management Staffing: Finding and Hiring the Right People

Once you’ve determined which full- and part-time positions you need, it’s time to find the staff that can make it happen. There are two steps to this process. First, you need to get strong candidates in the door for an interview. To do that, write clear job descriptions and use ads that really speak to the culture (and benefits) of your company. Post your ad in the right places for your audience.

Associations such as the NARPM have their own job boards for property managers and most mainstream job sites such as Indeed and ZipRecruiter also list related jobs.

Once you’ve hired the right people, you’ll want to keep them. You also want them to become evangelists for your company and culture. Remember, happy employees are one of the most powerful tools for attracting new talent, as well as representing your brand to residents and property owners. They’re the first to spread your reputation, after all.

To keep your employees happy and boost your business, create a strong company culture from the get go. Provide competitive benefits, stay connected with their needs, and push them to learn and pursue their professional development.

Building Relationships with Property Owners

It’s a no-brainer that valuing employee relationships can build a solid business, but so can relationships with property owners in your community.

Doing so starts with setting expectations before a property owner even becomes a client. Talk to prospective clients before you sign a contract to understand what it is they’re looking for in a property management firm and explain exactly what you can provide for them.

Keep the lines of communication open at all times, send monthly owner draw reports, and give them the opportunity to ask questions and share feedback. At the same time, you should feel confident providing your own proactive feedback to owners and identify opportunities for additional revenue streams.

You want to deliver the best customer service you can for your owners and the best living experience for your residents.

What Property Management Technology and Software Do You Need?

For every business, there is a software solution.

Quickbooks can manage all things financial for your business operating account, from invoices to P&Ls. You can also use it to manage taxes and audits.

Google provides web-based tools that rival Microsoft’s Office Suite. Create documents, spreadsheets, and even slide presentations. And you can store and share your documents on Google Drive.

MailChimp can help you organize your email, while SurveyMonkey can help you gather feedback from residents.

There’s no question you’ll need software tools to help you do business. Picking the right ones is a matter of listing out your business functions and researching which software tools can save you time, resources, and money.

For property managers, in particular, there are property management SaaS (software as a service) platforms that cater to the specific needs of your business without having to cobble together too many software solutions.

Buildium , for instance, gives you the power to accept rent payments online , as well as centralize your property accounting. You can handle your maintenance requests, property inspections, and even renters insurance through it, as well.

For those who will often be out and about, using mobile-enabled technology for property management can keep your business agile and operating from anywhere.

A big part of getting your business to take off is your branding and marketing.

Your branding defines who you are and what you do as a company. It should be a direct representation of your culture and values. Are you a boutique property management company that provides specialized services? Do you focus on HOAs or luxury Class A properties? All of these factors contribute to your brand.

Once you define your brand, it’s time to start marketing. Whether you do it yourself or hire a firm, you should push your business actively through your website, social media, paid advertising, and local networking.

How to Grow Your Portfolio from Zero

At this point, you may have only one property in your portfolio, or none at all. You’ve got to bring in a lot of leads to start building your portfolio, something called “feeding the top of the marketing funnel.”

This is when you cast a wide net, pull in potential property owners and investors and then start talking to them about your services to gain their interest and bring them closer to signing with you.

But those leads don’t come from thin air. You need to start with a multi-faceted marketing strategy to attract potential clients. You can do that with the following tools:

You have your first client. Congratulations! Now it’s time to talk about fees and get that contract signed. Here are some tips to help you determine your fee structure and how you should handle contracts.

How Do You Set a Pricing Structure?

It’s mandatory to do your research when it comes to setting fees. Check out what other property managers are charging for similar services on comparable properties. Look at your own revenue goals to see if you can offer more competitive pricing and consider the types of properties you are taking on.

Staying competitive may depend on the pricing structure and what’s bundled in your ongoing management fee, which includes your baseline service.

While most of the time this fee will bundle handling residents, accepting rents, staying on top of maintenance, and conducting inspections, you want to make sure you don’t assume a one-size-fits-all approach that makes it near impossible to turn a profit.

If you are already going in with a sizable portfolio, you’ll need to know how much you’ll pay each property manager. If you bring them on as independent contractors, will you compensate them by the number of units, gross rents, or percentage of rent collected? These are all tricky questions, again, that can be answered by knowing your market and its workforce.

That said are three common ways property managers usually set their ongoing management fee:

À la carte fees to consider are setup fees, leasing fees, late payment fees, vacant unit fees and eviction fees:

Again, knowing your market and having a firm idea of how you spend your resources will give you some more direction on how to best set your pricing, which will adapt over time. Learn more about setting pricing structure and fees here .

Creating Solid Property Management Contracts

Remember that old saying, strong fences make good neighbors? Well, solid property management contracts make stable business relationships. A contract should spell out the roles and responsibilities of the property manager.

A well-thought-out contract will include:

We recommend to always have a lawyer look over your contracts to make sure everything is locked down, and to put it together a template for all of your contract negotiations.

You and your team will interact with residents every day. Creating a memorable resident experience, where renters are engaged and happy, keeps your properties running smoothly, helps you attract other residents through word of mouth and builds your reputation with property owners.

To do that, target the right residents for your properties, foster a sense of community, and keep the lines of communication open.

Providing the Right Experience and Amenities for Your Residents

The kind of resident experience and service you provide will depend on the preferences of the residents your properties attract. Residents are looking for more than four walls and a roof. They want a convenient arrangement that lines up with their lifestyle—and feels like home. Apartments in the city may attract young professionals, but they may also attract retirees looking to downsize. Houses and condos may attract families.

Take your resident population into consideration for every aspect of your property management business, from emergency planning to facilities to run-of-the-mill communications.

For example, an older population may be more comfortable receiving communications via email or letters in their mailboxes. Their social media platform of choice is most likely Facebook. Meanwhile, a young family may prefer text notifications.

Pro tip: Use an online resident center (or a portal) so your residents can access the information they need, pay their rent, and communicate with you through the convenience of a mobile app.

If you are managing multifamily properties with communal spaces, have you considered the kinds of amenities you’d like to offer your residents? Perks such as an event calendar work spaces, outdoor fitness areas and mailboxes for Amazon packages help properties stand out. Often, you often won’t be able to control what the amenities are, but you can create an amazing resident culture and control how you market them.

How to Handle Complaints, Requests, and Disputes

For every complaint, request, and dispute , hear out your residents and let them know that you take their issues seriously. If it’s something you can resolve or fix, do so as quickly as possible and give your residents a timeline.

If it’s something you can’t fix, explain why.

How to Create Emergency Plans

Property managers need emergency plans for everything from fires and burst pipes to earthquakes and hurricanes. Your plans should be clear, detailed, and tailored to the kinds of emergencies and natural disasters common in your area.

Learn more about creating emergency plans here .

Once you decide—or the market decides for you—which kind of properties to target (single-family, multifamily, condos, etc.), it’s time to start thinking about the requirements you’ll need to meet to manage them.

Handling Maintenance and Repair

Choosing to offer maintenance and repair services could be a big sell for potential clients who don’t want to deal with the time and cost of maintaining their properties or fixing unexpected issues. And it’s a win for your business, too, since you can mark up the cost of repairs while taking one more worry off your property owners’ plates.

Here are some things to keep in mind if you choose to offer those services:

Assembling Your Leasing Services

A big value add that many property management companies offer is filling vacancies. Clearly, you’ll want to minimize unoccupied units that will cost you and your owners money in lost rent.

Likewise, you’ll want to make sure you have a lean and mean process to get high-quality residents into their homes quickly, efficiently, and with a strong first impression from lead to lease. Technology can deliver in spades here. Below are all the ways technology can be the rocket fuel for your leasing process.

How to Remain Compliant

And speaking of building codes, compliance is a very big part of your job that can’t be overlooked. It will be up to you to stay on top of rules and regulations on things like elevators, sanitation, and building permits. You will also have to pass regular inspection with the fire department, which will look for property placement of smoke detectors, extinguishers, and signage for fire exits.

Learn more about legal considerations and compliance here .

To win in property management, you’ll need great customer service and project management skills. You’ll need to keep on top of industry trends as well as local rules and regulations.

You will have to know how to market your business and your properties, pull potential clients and residents down the marketing funnel and get contracts and leases signed. It seems overwhelming right?

You don’t have to go it alone. If you’re serious about learning how to start a property management company, take it piece by piece and always surround yourself with people you truly trust. The only way to go is to build the right foundation for your business that will help you scale up with confidence.

Laurie Mega

Laurie Mega has planned, written, and edited content on a variety of subjects. Her work has been published by HomeandGarden.com, The Economist, Philips Lifeline, and FamilyEducation, among others. She lives in the Greater Boston Area with her husband and two boys.

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How to Start a Property Management Company

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How Big is the Property Management Industry?

What are the Key Segments of the Property Management Industry?

What external factors affect the property management industry, what are the key customer segments in the property management industry, what are the key costs in the property management industry.

Helpful Videos

Additional resources in the property management industry.

If you’re looking to start a property Management Company, you’ve come to the right place. Since we’re going to show you exactly how to do it.

We’ll start with key property management industry fundamentals like how big the market is, what the key segments are, and how revenues and profits are generated.

Then we’ll discuss keys to not only starting a property management business, but succeeding in it!

Download our Ultimate Property Management Business Plan Template here

How Big is the Property Management industry?

According to IbisWorld, there are 239,987 property management company in the U.S., that generated $61.8 billion in revenue last year. This represents an annual growth rate of 1.6% over the past 5 years.

The Property Management industry includes companies that primarily handle the maintenance of commercial, industrial and residential real estate. Residential property management is, by far, the largest source of revenue for the industry. This is followed by non-residential property management and a mix of other property management accounts for the remaining portion of revenue.

A number of factors affect the performance of the property management industry. These drivers include:

Office rental vacancy: Office rental vacancy rates measure the extent to which office space is occupied. The office rental vacancy rate is expected to fall in the coming year, representing a potential opportunity for industry operators.

Rental vacancy rates: Rental vacancy rates measure the percentage of total US residential rental properties without tenants. When the residential vacancy rate is high, industry demand falls, and vice versa.

Per capita disposable income: As per capita disposable income falls, consumers tighten spending habits, discouraging businesses from expanding or causing them to close branches. This trend, in turn, reduces demand for the leasing of commercial space.

Finish Your Business Plan Today!

The largest customer segment in the property management industry are households, followed by commercial properties.

Wages – Wages, are, by far the largest expense category for industry operators.

Purchases and marketing – Purchases estimated to account for 6.1% of revenue. Marketing costs are minimal and estimated to account for about 2.2%.

Rent, utilities and depreciation – Rent and utilities costs vary widely in the industry. Depreciation costs are low in the industry, as very little depreciable equipment is needed to run a property management company.

Other costs – The industry attracts a number of other costs. This includes interest expenses, agent and broker fees, and legal and insurance fees, though some of these costs are associated with purchases due to their necessity in managing property.

What are the Keys to Launching a new Property Management?

What are the Typical Startup Costs for a new Property Management Company?

The cost of starting a property management business is dependent upon size and a host of other factors. Starting a property management business usually costs $2,000-$10,000.

For additional information on the property management industry, consider these industry resources:

How to Finish Your Property Management Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Property Management Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan consulting services can create your business plan for you.

How to Make a Property Management Business Plan [+Template]

Whether you’re looking for funding, planning your goals for the next 18 months, looking to expand into new markets, or simply want to get control over your budget, putting together a proper business plan is crucial for a professional vacation rental manager.

And with the vacation rental property management industry becoming increasingly competitive, making sure you have a solid plan for success is more important than ever.

And that means ensuring your budget and projections are on point as you plan your next 18-24 months in business.

But we know that writing a business plan for your own property management business from scratch can be a real challenge, especially if you got into hospitality to make guests happy, rather than because you’re an expert at making financial projections or setting KPIs! We get it.

Follow our five-step process to create a business plan that’s perfectly tailored to property management, including everything from your mission and vision to marketing and revenue.

A great plan will help you take control of your business goals, so you can invest in the best for your property management company for true long-term success. Start here.

Creating a plan for your property management business?

We interviewed hundreds of property managers on how they plan to purchase tech from now until 2023. See what they said.

Why should vacation rental operators have a property management business plan?

A great business plan will help set you up as a professional manager vs just another Airbnb hobby host | Credit: Airbnb.com

Creating a killer business plan is a major starting point for any professional property manager who wants to differentiate themselves from the hobbyist Airbnb host.

Maybe you’re looking to secure funding or a loan, and you need to show others proof of your goals. Maybe you want to plan your next few months in business and need a strategy to budget correctly, set the right rates, and make accurate financial predictions.

Perhaps you have big ambitions for your business such as adding new properties to your portfolio, expanding into new markets, or paying off your mortgage on your existing units.

Maybe you want to get all your ducks in a row internally, and you’re looking to bring more of your vacation rental operations in-house (such as cleaning and laundry), or hire a manager to manage the day-to-day, and automate your systems so you can expand without hiring a ton of new staff.

Or maybe your goals are more personal, such as fully funding your summer vacations with income from their short-term rentals.

Whatever your dreams for your property, setting down a proper plan is the starting point for making them a reality—not only for investors or outsiders but for you too.

How to create a business plan for property management: 5 steps

Creating a business plan is useful for investors and good for you

There are almost as many different types of business plans as there are businesses, but we recommend starting with this five-step plan to keep things simple.

Use these next five steps as your business plan template and “fill it in” by answering the questions as you go.

The mission and vision

The current market analysis and expansion plans, how the business operates, marketing plan, financial projections and revenue management.

03_the vision and the mission - lightbulb on sky

The mission part of the business plan helps you lay out your overall goals and vision

This is the time to lay out your overall goals for the business, why you started it, and what you ultimately hope to achieve. It’s as much to clarify your own goals and plans over the next 12-36 months, as it is to detail them for possible outside investors.

This is the section where you can think big, but don’t forget to include important, tangible details on how you plan to make your dreams a reality, such as:

Who you are, your background, and your training. Some states require you to have certifications to manage properties legally, so be sure to add that if relevant to you and your business.

Who are your ideal clients; who are you targeting (and who are you definitely not)? Both in terms of property owners, and guests or renters?

What is your long-term vision for the business, and how are you going to ensure it’s sustainable and profitable?

What you’re working on in the next few months, what are your tangible goals?

What property management services will you provide that will mark you out as different or better?

How will you measure success specifically over the course of the plan? You can refer to your KPIs here and go into more detail later in the plan.

04_Current analysis - The Wyman website screenshot

What else is out there within the hospitality market - such as The Wyman, here?

This part of the plan is where you want to demonstrate that you understand the current market, and understand the context in which your business fits.

You’ll want to include:

A brief assessment of your major competitors and what already exists out there that could arguably be seen as similar to your business. For example, is your business similar to the high-tech urban pads offered by Sonder ? Or charming-but-modern like The Wyman ?

Businesses that you see as inspirational or complementary to yours (without replacing the need for your business)—for example, lean start-up Jurny, or digital nomad specialist Mint House ?

Clearly stating what marks your business out as different, and what your unique selling points are compared to what’s already out there—are you targeting a specific type of clients, such as CozyHaus and its “creative thinkers”? Or are you launching a new kind of platform, such as hotel-STR hybrid Locale ?

You can also include your plans for expansion in this section of your business plan and reference how you intend to evolve or grow your business to differentiate from others in the field.

05_Business plan how it works - visual plan

This section contains the main information about how your business actually operates

This section of the plan should include the ‘nuts and bolts’ of your business, so readers can see how it actually operates.

This means including more information on your business model, what your day-to-day operations look like, your org chart and staffing structure, and your KPIs (key performance indicators) that you use to measure your outcomes.

Business model

How does your business actually work? What model does it use, and what is your strategy to run it and generate revenue?

This might include definitions and structures such as:

This section demonstrates the structure of your team and the staff that actually run your business.

Be sure to mention:

Your current staff structure and who does what. How do you assign tasks and ensure the team operates smoothly?

How could your org chart progress in the next 6-12 months? What are your plans, where do you need to hire or develop roles?

What is your plan for the staff operations? Do you want to bring more roles in-house, or work with more external freelancers or specialists? How will you budget for this?

Systems, software, automations, and processes

06_What systems do you use- Operto Guest screenshot

Demonstrating or planning the systems you will use over the next 12-36 months is crucial

The modernization and digitization of hospitality means that it’s more important than ever to detail the systems and software you use or plan to use.

Leveraging powerful platforms and hotel management softwares that connect seamlessly with each other means you can automate tasks that would otherwise have been done manually, freeing up time and mental space.

Ingenious, intuitive software also enables you to operate your space remotely, and empower staff to get out from behind a front desk and go where they’re most needed.

Switching your guest operations to digital also massively improves guest satisfaction, as all the usual awkward stumbling blocks and frustrations (such as check-in issues, stresses in case of delays, or possible difficult communication with hosts) are eliminated.

You’ll want to include details like:

What PMS, if any, will you use to manage bookings and collect guest data?

How will you manage remote check-in and check-out and guest management?

How will you verify guests’ IDs, check backgrounds, and protect against fraud?

What tools will you use to set prices and ensure dynamic, competitive rates?

How will you ensure security, secure locks, and vacation rental safety ?

How will you enable easy guest check-in and check-out?

How will you facilitate communication with guests?

How will you enable upsells and extra payments?

What will you use to communicate with cleaners to coordinate your vacation rental cleaning , and let guests know when their rooms are ready?

What will you do to draw up a vacation rental property management checklist and ensure high-quality cleaning and sanitization at all times?

How will you monitor maintenance and levels of cleaning supplies and other vacation rental amenities ?

How will you use smart tech to monitor noise and occupancy levels?

Will you empower guests to manage their own in-room conditions such as lights or temperature?

What tools will you use to communicate with staff and delegate tasks across your team?

How will you ensure guests leave good feedback and reviews?

Want to automate processes, save time and effort, and improve the guest experience?

Ingenious, hyper-connected software platforms such as Operto help you do all of this and more.

Platforms such as Operto pick up where your PMS leaves off, and make it simple to automate processes—even if you’re not tech-savvy and don’t have the time or patience to learn a new platform.

With powerful integrations such as Hostfully or WebRezPro PMSs, NoiseAware noise monitoring, Yale Airbnb smart locks , Autohost ID checks, Tado thermostats, and more, highly-connected platforms such as Operto house everything under one digital “roof” and keeps switching between platforms at a minimum.

Showcasing how you’ll coordinate all of your digital tools like this is a must-have part of any forward-thinking hospitality business plan.

Setting big goals and leveraging powerful tech is important, but making sure you’re measuring your business progress is crucial.

Deciding what metrics (or Key Performance Indicators) you’ll track over your plan timeline will give your business direction, and enable you to see what’s working and what needs tweaking.

As business author and expert Peter Drucker said, “you can’t improve what you don’t measure.”

Depending on your business goals, you may want to set KPIs for:

Total revenue

Revenue per channel

RevPAR (revenue per available room; your average daily rate x occupancy rate)

Occupancy rate (number of nights booked divided by number of nights available)

Average length of guest stay

Website traffic and hits

Views per channel

Word of mouth referrals

Social media engagement

Guest messages or inquiries sent per channel

Percentage of bookings per channel

Planning how you will market your business and attract new clients is a major section

Demonstrating your basic marketing intentions should also feature in your business plan.

This will depend on your goals and business model, and who you are trying to attract, but in this section, you’ll need to answer questions such as:

For owners and guests:

How are you going to attract them?

How will you grow your audience and/or owner portfolio?

What’s your niche or target market?

Who do you want to attract (and who do you definitely not want to)?

How will you generate leads?

How will you convert leads and inquiries into bookings?

For guests only

What channels will you list on?

How will you diversify your booking channels and get more direct bookings?

How will you gather data, and will you use email marketing + automated messaging?

What will you do to get more owners?

How will you vet owners and ensure they’re right for you?

What will your onboarding homeowners process be?

How will you update and please existing owners so they stay in your portfolio long-term?

Will you use a tool such as Wheelhouse to help plan your finances?

Finally, your business plan should include some financial projections, budget considerations, and your intentions for cash flow and revenue management.

This will include extra details on your budget plans—as already mentioned earlier in sections such as new staff members and expansion details—as well as extra information on any dynamic pricing platforms (such as, say, Wheelhouse) that you plan to use to ensure competitiveness.

Here is the time to answer questions such as:

How will you budget/manage revenue? Will you use a dynamic pricing platform?

How will your budget allow for unexpected repairs or maintenance?

What budget will you allow for extra costs such as training, or extra investment in tech?

Any more details on the financial KPIs you may have mentioned in the last section.

Creating your property management business plan

Overall, if you follow these five steps, your business plan will contain everything needed to demonstrate your overall goals and concrete plans to make your goals a reality.

From your vision to current market analysis, to business operations, marketing, and financial projections, planning out your budget and business goals will enable you to stay ahead of the curve, and invest in modern tools to ensure you stay profitable, competitive, and elevate the guest experience.

Lean staffing, smart tech, guest automation, and digital operations will become of increased importance between now and 2023, as our research shows, and creating a rock-solid business plan will ensure you’re more than ready for what’s ahead.

Frequently asked questions about property management business plans

What is a property management business plan.

A property management business plan lays out your business goals and strategy over the next 12-18 months, including your mission and vision, current market analysis, your future goals, how the business operates, staffing goals, your marketing strategy, financial projections, and how you will measure success and tweak if needed.

How do I start a property management company?

Starting a property management company means getting clear on your business plan, which in itself will differentiate you from the Airbnb hobbyist. Make a proper plan that helps you get clear on your mission and vision, current market analysis, your future goals, staffing, marketing, and business model. For example, will you lease properties, co-host, or something else? How will you attract owners or acquire new units?

You also want to check the local laws in your country, state, or city, and ensure you have the right qualifications, property management licenses, or permissions from local authorities and/or your lender or bank.

How much do property management companies make?

How long is a piece of string? It depends on your goals, your financial projections, revenue plans, geographic location, types of properties, and more. It can vary hugely, but recent reports from salary insights group payscale.com suggest that in the US, the national average salary for property managers is around $50,928 per year for entry level to $75,000 per year for more experienced managers.

What are some things property management companies do?

Depending on your business model, a property management company will likely list, manage, run, and operate everything involved in opening properties, units, or rooms up to short-term guests. This may include everything from staging, photographing, listing, pricing, booking, cleaning, and maintaining the properties, to managing bookings, reviews, marketing, and more.

A management company, as opposed to a ‘hobbyist’ Airbnb host, will take each of these tasks to a professional level, and use property management software such as a PMS or guest communication platform that small-time hosts would not. A property management company will almost certainly get better ROI on a STR unit than a hobbyist or individual host.

What are the different types of property management companies?

Business models vary considerably depending on the way the company operates, but they may include styles such as:

What are the steps in starting a property management business?

First, get clear on your business plan. Outline your mission and vision, current market analysis, your future goals, staffing, marketing, and business model, and go on from there.

You also want to check the local laws in your country, state, or city, and ensure you have the right qualifications, licenses, or permissions from local authorities and/or your lender or bank.

What are some requirements for a property management company?

Depending on where you are in the world and the type of company you have, there may be certain laws or requirements that you must fulfil. For example, in California and Europe, there are data protection laws that you must adhere to if collecting data.

You may also need to be aware of elements such as electrical check certificates, adherence to fire regulations, owner insurance, rent insurance, liability insurance, and permission from your money lender to sublet your property.

What are some qualifications for being a property manager?

This depends on where you are and what you’re planning to do as a business owner—for example, will you rent your units full-time, or only during a few months or weeks a year? Are you operating professionally? Is your business your main source of income, or is your property your main home?

Depending on these criteria, you must check the local laws and requirements for STRs and vacation rentals, as some cities, states, and countries require you to have licenses, register with local authorities, or have certain real estate property qualifications before you can legally manage properties.

For example, to name but a few—in London, hosts can legally only rent an entire property out for 90 days a year on a platform such as Airbnb; while in California and Europe, there are data protection laws that you must adhere to when collecting customer data for marketing purposes.

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Privacy overview.

Starting a small business as a Property Management Company

If you’re ready to start your small business as a Property Management Company, the first thing you need to do is get started with a Business Plan for Property Management Company. To achieve success, you must plan for it.

As a business owner you will need to understand all aspects of your business in order to keep it running like a well-oiled machine. Your business plan will organize every element of your business strategy and provide you a clear map for you to follow for the lifespan of your business.

This free business plan builder template will help you develop your own Business Plan for Property Management Company. The business plan template is an interactive tool that will quickly and easily create a custom business plan just by having you answer questions about your business. The result is a clean, professional plan that is both informative and convincing.

If you want your Business Plan for Property Management Company to be even better after you’ve completed the free tool, you can always get in touch with a business plan or a funding advisor to get a bit more help and guidance.

This is the perfect way to get a Property Management Company Business Plan created for free!

Other entrepreneurs who have successfully used the free business plan template tool have been able to create a District Government Office, Endodontist, Wallpaper Store, Exporter, Consultant, and for many more different business types.

Using the free business plan template tool to create a business plan for an a Property Management Company

The free business plan template builder is divided into a few easy to follow steps.

Step 1. Enter your business information

As you develop your business plan for a Property Management Company with the free business plan template, it’s important to answer the questions about your business such as; what your business is, what your products/services are, who your customers are and what your goals are.

A clear explanation of the products/services the Property Management Company business offers and what you intend on charging to make revenue is very important to ensuring a properly developed business plan. The free business plan builder tool helps you do exactly that by guiding you step by step.

Step 2. Entering your expected revenues

Sales and revenue figures are a critical step to any business plan. So, what do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommend doing a bit more research on other Property Management Company business locally and within your own province to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

Step 3. Discuss your market

As a Property Management Company business, a clear explanation of the market you are in, the industry and the competition will help you take your business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

A properly developed business plan will go in detail and explain each of the above.

Step 4. Discuss the future plan

Getting your Property Management Company business off the ground is important and in order to ensure a solid business plan, it’s important to discuss how you intend on achieving success with your business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Property Management Company business can grow each year.

Keep in mind that often business plans are focused around key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. Enter the financials

A critical piece to any business plan is the financials. No matter if you are seeking funding for your business or not, financials are a must. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year.

If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations.

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that.

The above 5 steps are recommended steps to follow in order to develop a proper business plan. While there are other key points that are a must, the free business plan template will help you start.

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via CanadaStartups.org and through the Small Business Startup Platform .

If you are considering other options aside from a Property Management Company business, consider some of these popular business’s others have chosen to startup.

It takes 30 seconds to learn more about small business funding and if your small business in Canada may be eligible for government funding.

Fill out the form below for more info or give us a call at 1-800-288-9691

Home » Business ideas » Real Estate Industry » Estate Management

How to Start a Property Management Company in 16 Steps

Do you want to start a real estate management company? If YES, here is a guide on how to start a property management business with no money or experience; plus a sample property management business plan template and property management marketing plan. Property management which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start.

This is because it is basically about; lease contracting or accepting rent using legal documents approved for the area in which the property is located. In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.

In the united states, states such as Texas, New York, and Colorado, makes it mandatory for property management companies to be licensed real estate brokers, if they are going to be involved in collecting rent, listing properties for rent or helping negotiate leases and doing inspections as required by their business. Although, a property manager may be a licensed real estate salesperson but generally they must be working under a licensed real estate broker.

A few states, such as Idaho, Maine, and Vermont do not require property managers to have real estate licenses. Other states, such as Montana, Oregon, and South Carolina, allow property managers to work under a property management license rather than a broker’s license. Washington State requires property managers to have a State Real Estate License if they do not own the property.

Landlords who manage their own properties are not required by the law to have a real estate license in many states; however, they must at least have a business license to rent out their own home. It’s only landlords who do not live close to the rental properties that may be required, by local government, to hire the services of a property management company.

Table of Content

1. Understand the Industry

2. conduct market research and feasibility studies, 3. decide which niche to concentrate on, 4. know your major competitors in the industry, 6. know the possible threats and challenges you will face, 7. write a business plan, 8. choose a suitable location for your business, 9. hire employees for your technical and manpower needs, 10. write a marketing plan packed with ideas & strategies, 11. work out a reasonable pricing for your services & products, 12. develop iron-clad competitive strategies to help you win, 13. brainstorm possible ways to retain clients & customers, 15. create a suppliers/distribution network , 16. tips for running a landscaping business successfully, what does it take to start a property management company.

Interestingly, the minimum educational requirement for any one that wants to start his or her own property management business is a High School Diploma and hands on the job experience. It is one of the many businesses that an individual can start with from his or her home and basically with just a business card.

Since property management business is all about managing property / properties on behalf of your clients, then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.

As a property manager, your core business responsibility is to liaise with landlords, tenants, and in some case various contractors and for you to effectively conduct your business, you are expected to have a full grasp of the law when it comes to landlord and tenants relationships et al. As a property manager, it is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors).

For example, you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due. If you can get that aspect of your job / business right, you will sure enjoy your business.

Property management companies are also involved in mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

In fact, there are numerous aspect of the profession and some of them include helping their clients in managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.

No doubt, if an aspiring entrepreneur who intends starting his or her own property management business has the right connections, networks, managerial skills, and takes delight in managing real estate for clients, then he or she is going to find property management business very rewarding and lucrative.

16 Steps to Starting a Property Management Company

In 2009, statistics has it that the total revenue as recorded of the property management industry in the United States of America was about 59 billion U.S. dollars. Regardless of the widespread expectations of slowing rent growth in 2015, the industry still experienced growth. In the 3 rd quarter of 2015, apartment growth hit an all – time high in the United States. This is as a result of escalating prices from the West Coast.

Interesting Statistics About the Industry

Although the sales generated from other industries of Property Management Services are less than those from Residential Property Managers, but beyond every reasonable doubt, this line of business is still experiencing steady growth.

The property management industry is highly fragmented and statistics has it that the top 50 property management companies generates less than 25 percent of the total revenue generated in the industry; smaller and medium scale property management companies accounts for the rest.

For example, in 2014, the federal government of the United States of America spent a total of $189,718,950 on Residential Property Managers basically for coordinating repairs of government facilities. The federal government awarded about 273 contracts to 47 companies, with an average value of $4,036,573 per company – majority of the companies that got the contracts fall within the top 50 property management companies in the United Stated of America.

Going forward, the Operating conditions for the Property Management industry are projected to remain positive over the next five years, and thereafter, it may likely slow down at some point in the future. Which is why in the next few years, the value of residential construction will experience huge growth due to improved consumer confidence and low interest rates, causing an increase in the housing stock.

It is also important to note that, the US home ownership rate will also experience increase. In essence, fewer consumers will require property management services. So, it is important for property management companies to start positioning their companies to diversify now so as to remain in business in the future.

Accommodation is amongst the top needs of humans which is why people do all they can to secure a roof over their heads or a place to run their business from. This is perhaps one of the factors that influence people to start their property management companies. They know that if they are well positioned and they have good relationship with property owners, they are likely going to generate huge properties from the business.

Other factors that influence people to venture into the property management industry is the fact that you can start the business with minimal start – up capital and you can make good returns from the business within a short period of time.

Demographics and Psychographics

In most countries of the world, you can only be permitted to rent an apartment when you are 18 years and above. It means that if you are running a property management company, your target market demography should be from 18 years and above.

Aside from renting apartments to people who are 18 years and above, you should also ensure that you rent apartments or properties to those who are qualified. Most countries of the world don’t allow property management companies to rent apartments to migrants who are not well documented.

In essence the demographic compositions of those who need the services of property management companies are people who fall into the following groups; working class / corporate executives, business people, corporate organizations, documented / legal migrants, campus students, and household / families et al.

There are several areas in the property management trade that you may consider carving a niche in. Some of these areas include:

The Level of Competition in the Industry

It depends on where you choose to pitch your business tent, but on the average property management industry is open to all and sundry and it is indeed highly competitive.

If you choose to start your property management company in a small town, few miles from busy cities, you are likely going to face fewer competitions as against locating your property management company in cities like New York City, Las Vegas, Los Angeles, Maine, and Boston et al.

The competition in these cities is pretty tough. You must develop good sales and marketing strategies to penetrate the market if you are a newbie property management company. Over and above, the demand for properties (leasing, renting et al) is driven by commercial real estate occupancy levels and to a larger extent, profit generation by property managers depends on their creativity and their network base couple with the top notch service delivery.

One thing is certain in the property management industry; the larger your company, the higher your competitive advantage. The truth is that, big property management companies have good leverage points when it comes to performing a wide range of management services in multiple markets.

On the other hand, small property management companies can compete effectively by specializing in the neighborhood marker or the local market as the case may be.

There are property management brands that have done pretty well over the years. These people know what it takes to have started humble and build a successful business within record time. Here are some of the leading property management companies in the United States of America and in some parts of the world:

Economic Analysis

If you are considering starting your own property management company in the United States of America, you can be rest assured that you wouldn’t have to spend a fortune to get the company into full swing operation. As a matter of fact, you can start a property management business from the comfort of your home or from a very moderate office space; it could be shared office space or virtual office space. The bottom line is that the start – up cost is low and the turnover can be pretty high.

It is important to note that the economy of a nation has a major influence on the property management industry of that nation. If the economy is unhealthy, the property management industry will experience struggle and if the economy is booming, the property management company will boom as well.

5. Decide Whether to Buy a Franchise or Start from Scratch

One of the thoughts that may crop up in your mind when you try to build your own property management business might be buying a franchise. But the question is; are there really property management business franchise available?

When it comes to starting a business, in most cases your best bet is to start from the scratch especially if you have a long range vision of the kind of business you want to build; except you are an investor who is interested in expanding your investment portfolio and to make more money.

Also if you don’t have the experience of starting a business brand from the scratch and you are scared of taking the risk of building a new business brand, then you can opt for franchise. Starting a property management company is not as tedious and demanding as other aspects of the real estate industry; which is why most people will prefer to start their own property management businesses from the scratch.

You can start the business on a small scale, from your home and managing one or two properties and then grow the business to as big as you want it to be. In a nut shell, starting from the scratch is the best option when it comes to starting a property management business.

No matter the part of the world a business is located and whatever the nature of the business is, there will always be challenges and threats.

When it comes to property management, some of the threats and challenges that you are likely going to face in the United States of America and of course other parts of the world are unfavorable government policies, global economic downturn, arrival of bigger and well – structured property management companies and unreasonable tenants et al. No doubt; unreasonable tenants can be a pain in the neck for property managers.

If you can successfully pen down your business concept and the strategies you intend working with to achieve your business aims, goals and objectives, then you would successfully create your business blue – print. This is not only needful when you want to set up a conglomerate or multi – million dollars corporations; but also ideally it is important to do this, if you call what you want to do a serious business.

This means that so far as you have decided to start a business, you must have a detailed Business model to fly with. Here is a sample property management business plan template to help you get started.

A Business plan is the blue print of your business; it is a business document can aid you to successfully set up a business and also administer / manage the business. It is not enough to just write a business plan for the sake of writing one, your business should be able to pass reality check; you must put relevant facts, figures and statistics into consideration when writing your business plan.

The truth is that, the main idea of writing a business plan is not just for the sake of having a business document in place; but to have a detail guide on how to effectively set – up, run and manage your business. Your business plan should outline and cover strategies on how you intend to operate your property management company.

When writing your business plan, ensure that you are moderate when it comes to setting projections on income generation et al. It is better to be on the safer side which is why when you are calculating your future income, you should be underestimating and make your plans based on it than to overestimate and get yourself into tight corners when things don’t work as planned. Please ensure that these key areas are covered when writing your business plan;

Executive summary and Company’s descriptions: you are expected to write about the concept of your business, descriptions of your company, your company’s vision statement, and mission statement, where your company will be located, the problem you intend solving and perhaps why people should patronize your services.

Other key components that should not be missing in your property management business plan are your product offering, SWOT analysis, marketing and sales analysis / strategies, pricing, costing and financial projection, management techniques, expansion strategies, publicity and advertising strategy, budget and start – up capital generation.

As regards choosing a location for property management business , you may have your office in one part of the city and manage properties all across the cities and even across the country; the numbers of properties you manage and the locations where they are located is to a larger extent dependent or your relationship with property owners and also your business network.

So, when it comes to choosing a location for your property management business, ensure that you choose an office facility that is visible, a location where people driving pass or walking pass can easily spot your office. You should also choose a location that is not saturated with property management companies, except you have a unique selling strategies and competitive advantage.

Please do not make the mistake of locating your business in a place where majority of the residence are retired people and they live in their own retirement apartments; of course you will struggle to make headway in such areas. You should position your property management business in a busy city, a place that people move to in search of jobs, or better living; a place known to be suitable, peaceful and safe for people to live and conduct their business.

Computer (software) and the internet are the major technical tools you would need to run your property management company. When it comes to securing an office facility, your financial capacity is part of what you need to consider before choosing between renting and leasing an office facility.

If you intend starting on a small scale, then you should consider starting from your home, sharing office with someone or renting a virtual office space.

In order to successfully run a standard property management company you should get set to hire a minimum of 8 employees. These are the key roles that you should look for qualified professionals to occupy in your property management company;

Your ability to market and convince people to patronize your services will go a long a way to help you grow your business. This is why a property management marketing plan is one of the most important documents you need to succeed.

When it comes to property management business, networking is an effective tool. You can build your client base with your business network; so ensure that you network with real estate clubs and also chambers of commerce in your locations. You can also network with real estate brokers who are constantly in touch with landlords and properties owners.

When it comes to business partnership, as a property management company, local lending institutions; the truth is that most often, they have properties for which they are responsible for and also to outsource such properties to property management companies in some cases lenders sometimes find themselves stuck with rental properties, and are not in the business of property management, so they tend to outsource it to property management companies.

You should also look towards partnering with local contractors since they also interface with property owners regularly. Lastly, don’t forget to leverage on the power of the media by advertising your services using both online and offline platforms.

For instance, the phrase “property management companies” is searched about 90,500 times monthly in Google in the U.S alone and the phrase “property management firms” is searched about 30,100 times monthly, which is why you should ensure that you run paid search campaign to capture property owners and even potential tenants who are searching on this subjects within the area that you operate.

You can as well utilize the following avenues to market your property management business;

It is a little bit difficult to determine the price of a property or the commission that you want to get from a property management business deals except when it involves other services like, maintenance, reconstructions, Waste Management et al.

The truth is that the real estate industry is based on commissions and properties are valued by professionals based on the area the facility is located, the type of facility and other factors. No property management company can directly control the pricing system in the real estate industry, although they can influence it to a certain degree, but they would have to abide by what is obtainable when it comes to pricing structure in the industry.

Part of what you need to do when it comes to cutting cost is to reduce to barest minimum all maintenance cost by renting / leasing any property under your care to responsible tenants who won’t cause damage to your facility and also ensure that you request for several quotations before awarding any maintenance contract to a contractor; with that you will be able to analyze and come up with a pocket friendly price.

Some factors that will give you competitive advantage in the property management industry include; trust, honesty, good network and excellent relationship management. Most property owners usually look for these traits and qualities before handing over their properties to a property management company.

It is also very important to be flexible in your business strategies; you should have plans to take care of smaller clients as well as bigger clients. Another strategy that you should employ is to ensure that your employees are well taken care of, and their welfare package is amongst the best in the industry. With that, they will be more than willing to build the business with you and help deliver your organizations’ set goals and objectives.

If your customer service delivery is top notch, you are good with relationship management and the properties under your management are well maintained and with competitive prices, you are sure going to retain your tenants and also attract new tenants.

14. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Any business that wants to grow beyond the corner of the street it operates from must be ready and willing to utilize every available means (conventional and non – conventional means) to advertise and promote the business. Boosting your brand awareness will a go a long way to endear you to both property owners and tenants as well.

Below are some of the platforms that you can leverage on to boost your brand awareness and also to create a corporate identity for your property management business;

In building a robust supplier and distribution network, you have got to be very vibrant when it comes to networking. Do all that lies with you to meet new people, as well as maintain and nurture existing relationships. Why is this important, you just might ask?

This is important because you have to be connected with the right people in order to build your business to an enviable and successful state. One of the strategies that you need to employ in order to stay in business is to continue to expand your network base.

When it comes to property management business, the size of your network has a major influence on the revenue you generate from the business. So, ensure that you maintain a healthy network with real estate clubs, chambers of commerce in your location, real estate brokers and of course landlord / Property owners’ association et al.

If you run a standard property management company, you are expected to meet with your employees every morning, or once or twice in a week to review performance and to set new targets for the week or for the months; regular meetings and of course trainings in as integral part of a successful business. Basically, some of the daily activities of standard property management companies revolves around:

Generally, it is true that if you want to make huge returns on investment, then you must be ready to work hard and smart. One of the areas through which you must learn to work hard and smart in building a successful property management business, is by engaging in only those activities that can bring about good results.

As such, you and your team members have to be determined to cut back on those activities that they be using up resources like money, and yet brings about minimal results.

More on Estate Management

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How to Start a Property Management Company

This is a great time to start your own property management company. A study by Fortune Business Insights projects that the property management market will grow from $15.10 billion in 2021 to $28.21 billion in 2028.

What is property management?

Property Management is the daily oversight, operation, control, and maintenance of residential, commercial, community association, student housing, or industrial real estate by a third-party property manager.

Property owners rely on property management companies to keep people in safe, hygienic homes and businesses operating in safe and professional environments. Despite intermittent fluctuations, property management services are consistently in demand.

If you find yourself reading this article, you’ve probably been in the property management game for a while, and you’re ready to build your own company from the ground up. Or, maybe you’re running or employed by a real estate business and want to transition to property management.

Over the past fifteen years, our team has helped hundreds of entrepreneurs and small businesses start property management companies. We’ve mentored dozens of entrepreneurs in building and growing property management and homeowner’s association management companies. This guide shares the actionable insights, tips, best practices, and expertise we’ve developed after helping over one hundred thousand brands.

Navigating the transition between employee and property management entrepreneur can be tricky. If you’re ready to leap, we’re here to share everything you need to know about how to start a property management company.

How to Start a Property Management Company:

Choose your niche, define your services, write a business plan, decide your legal business structure, fill in the business blanks, crunch the numbers, develop your brand identity.

Choose your property management software

Find the right help

Build an online presence, spread the word.

When starting your own property management company, it will be much easier to stand out from your competition (especially over the long term) if you specialize .

Think about it. Would you go to a general practitioner or an oncologist specializing in lung cancer if you had lung cancer? You’d see a lung cancer specialist because they offer the best chance to solve your unique problem.

The same is true for clients seeking property management services.

Clients want to feel confident that the people managing their property are doing it right. And knowing that you’re an expert in managing their type of property will boost their confidence in your ability to get the job done right.

Here are common niches in the property management industry:

Property management companies that are specialists will appear most qualified to help and be most appealing to the clients with those needs.

You may find that your niche is obvious. For example, it may be the area where you have the most expertise. Or, it may be a property niche that needs to be filled in your local economy. For example, many highly paid professionals become real estate investors and buy rental properties in major cities. They don’t want to manage those properties and often look for capable and respected property managers.

Whatever niche you choose, don’t make the mistake of trying to be the right fit for every client. Marketing directly to the businesses that need your expertise will deliver the best results.

Ensure that the niche you choose provides a meaningful opportunity. Once you assess your total addressable market , you can evaluate whether the opportunity is sufficiently lucrative to be worth your time.

Finally, even experienced real estate brokers and property managers may need special training to deliver the best possible service in a specific property management field. So, take advantage of opportunities to improve your skillset – even if you’re already an expert.

So, what exactly does a property manager do?

Property managers take care of buildings, inside and out, on behalf of individuals or groups of property owners. Property management services may include:

It’s important to decide early which of these services you’ll offer. Potential clients will want clear guidelines of what they can expect of you.

And you’ll need to decide how many employees are needed to manage these services and what tools and supplies you’ll need to own to maintain your properties properly.

Your niche will help you determine if you can reasonably leave any of these tasks off of your list. For instance, residential property managers are more likely to provide mail/package services than commercial property managers.

People often make mistakes when they start a new property management company.

This is because they rush into things before considering their business from all angles.

A property management business plan isn’t mandatory. But, it can help you think many things through – including your services – and avoid many mistakes.

Studies show that entrepreneurs who take the time to write a business plan when starting a business are 2.5 times more likely to follow through and get their business off the ground.

The work that goes into creating a business plan helps new property managers build skills (like analyzing their competition and examining their finances) that will be important to their success.

But don’t get obsessed about getting every detail right in your business plan. You don’t even need to write a traditional 100-page business plan. Instead, do your research and create a one-page business plan .

For insights and free downloadable business plan templates, read this definitive guide on how to write a business plan . And take a look at these business plan tips for more insights.

There are many different types of legal business structures for various business entities. (Note: These legal business structures differ from your business niche.)

For new property management entrepreneurs, choosing the best business entity for your business can feel overwhelming. So don’t rush yourself into deciding to register your business immediately.

For example, while a sole proprietorship or partnership might be quick and inexpensive in the short term, it might expose you to more financial and legal risk, create an unfavorable tax treatment, and lead to problems for you in the long term.

A limited liability company (LLC) is a strong choice for most property management companies. Still, a corporation could make sense for bigger property management companies, especially if you have investors.

So, read about each possible entity your business might fit into.

Then, consider which business structure is most helpful for your business; and how each can help you accomplish your business goals.

And remember that most states require you to register your company with the secretary of state or county clerk in the county in which you operate if you run your business under a different trade name than your legal business name.

This is an easy problem to solve. Just register your actual trade name with your state (and/or local government) by filing a “doing business as” (DBA) certificate.

DBAs are also commonly called “assumed name,” “fictitious business name,” or “trade name.”

Here’s a terrific resource that explains what a DBA is, the DBA state requirements, and how to file a DBA for your property management company in all 50 states and U.S. territories.

While it’s easy to get caught up in the excitement of becoming your own boss, it’s essential to give equal attention to the less glamorous aspect of business ownership – following the rules.

If you don’t operate legally, your new property management business may get shut down before it has a chance to grow. So, let’s talk details.

After determining your business’s legal structure, you must file the necessary paperwork.

The U.S. Small Business Administration tells us that some form of license or permit is necessary to operate virtually every business type legally. Their website has all the info you need to determine what sort of license or permit you’ll need to start a property management company in your state.

In addition to any basic business licenses or permits you may need to operate legally in your state, you will also need some licenses specific to the property management industry.

Property management licenses

Many states require specific real estate and property management licenses or paperwork to legally operate a property management business.

So, check out your state’s real estate commission or licensing board website for the details relevant to your business.

But, some requirements are universal. You, and your employees, may be asked to acquire the following licenses:

For more details on these licenses, read this helpful article .

And this list is not exhaustive. You may need to complete other paperwork as well. For instance, in addition to the licenses required for individual employees (listed above), you may also need to acquire separate licensing in your business’s name.

Finally, check out associations that can help you network and pursue continuing education and certification in property management. A few notable associations include:

Insurance for property management companies

You may need (or want) to carry many different types of business insurance to protect your property management business.

All businesses should carry general liability insurance to protect them if someone gets hurt (or property gets damaged).

And the law requires businesses with employees to carry worker’s compensation insurance to cover any work-related accidents that occur on the job. But that’s only the tip of the iceberg.

You may also want to consider adding the following:

It’s wise to protect your business by investing in the strongest coverage you can reasonably afford.

Getting to know all of the necessary legal and logistical considerations of starting a property management business will create a strong foundation for your company’s successful future.

Property management is a financially complex business.

As with any business, you’ll need to track your revenue. But there’s so much more to think about.

You’ve got to track the billing expenses and rent payments for each tenant in each property you manage, building expenses, and client revenue. But, before you can get there, you’ve got to start at the beginning – with your start-up costs .

Start-up Costs

Your start-up costs are the one-time expenses you’ll need to pay to get your business operating.

Each business is unique. But many property management companies share similar start-up costs.

Start-up expenses and costs for a property business may include the following:

Once you’ve outlined your start-up costs, it’s time to consider what your recurring expenses will be.

Recurring costs for a property management business may include:

Research ahead and run smart calculations to determine how much it will cost to start and run your business. This will allow you to plan for additional financing assistance (if needed) and think about pricing.

Once you know how much it will cost to start, you’ll want to assess your finances and compare the two.

Assess your existing finances

Assessing your existing finances is crucial.

When starting a property management company, you’ve got to know exactly how much money you have to invest into the project.

Setting up offices, acquiring maintenance tools, employee salaries, and insurance payments… it all costs money. You’ve got to know if you have enough.

And you may discover that you need help with your business financing. If you do, there are many business financing options for small businesses .

If you don’t understand the numbers, you’ll have difficulty building a sustainable, profitable business. Most of your strategic decisions will be impacted by your cash flow.

And to help you project your cash flow, you’ll need to outline your prices.

Set your prices

Your pricing strategy is a key factor in the success of every property management business. And, it isn’t a simple matter.

There are several factors to keep in mind when setting your prices.

The hard numbers

To create a competitive pricing structure, you have to start by knowing how much it costs you to run your property management business (your recurring operating costs). While there may always be unexpected expenses, the recurring costs you know should all be considered.

But your operating costs are only a starting point.

Your time has value, and you need to make a living wage.

And it’s essential to bake some profit into your prices as well. Otherwise, it will be challenging to sustain your trucking business over time.

So, make sure your prices are high enough to cover the cost of doing business and deliver some profit.

Your competition

Your potential clients are most likely doing research – and that research includes your competitors, too.

Consciously or not, people gather data about what services like yours should cost and what they’re willing to pay. That means you must be aware of what your competitors are charging, too.

You might feel your services are worth more or charge new clients less than your competitors. And that’s okay.

But, if you’re unaware of what your competitors charge and their ongoing management fees or lease renewal fees, you may miss the mark completely – either costing you profit if you charge too little or business if you charge too much.

Perceived value

Perceived value is the amount a client thinks a property management service is worth.

And your competitor’s prices are a part of that perception – but not the whole picture.

The services you offer and the perceived quality of those services play a big role. Clients care about the tangible results your property management company delivers for them and the tenants in their buildings. The more they stand to gain, the higher your perceived value.

And your branding influences how your property management services are perceived, as well. A professional logo and high-end brand positioning will have a higher perceived value than a cheap logo and discount branding. Clients, especially new clients, may be willing to pay more if they trust your brand.

So, remember to consider your brand, how you present your services, and your competitors’ pricing when creating your pricing strategy.

It’s hard to build a successful property management business unless you take branding seriously.

Branding provides a reassuring level of professionalism that new property management companies sometimes struggle to establish. So, don’t think you can afford to leave your brand identity to chance.

Clients trust property management companies with hundreds of thousands (sometimes millions) of dollars in real estate. A weak brand identity will undermine clients’ trust and make them reluctant to hire you.

So, before you reach out to your first prospective client, ask yourself these critical questions as you develop your brand strategy :

Your answers to these questions (and others like them) will build the core of your brand.

All of your future branding decisions should expand on these ideas. For example, your company name, logo, and website design should grow from the concepts you laid out here.

So, take the time to think – really think – about your brand from the start.

Real estate is a competitive industry. And it’s the property management companies with clear, authentic brands that survive and thrive.

Important branding elements for a property management company include:

And if you’ve already started your property management company, but are struggling to grow it, maybe it’s time to consider a rebrand . It’s possible that your existing branding is holding you back more than you realize.

The cost of brand design

Before you decide that you should put off building a strong brand identity because your budget is tight, rethink that plan.

You don’t have to spend thousands of dollars building a strong brand identity.

Here are a few pricing guides that can help you identify the sweet spot for pricing:

The above guides describe free, cheap, affordable, and expensive options. So, you’ll find a price point that will fit your budget, regardless of the size of your budget.

Get property management software to manage your business

Property management (commercial or residential) requires you to keep track of a million important details.

Which tenants have leases ending soon? When does the elevator inspection certificate expire for Tenant XYZ’s suite? Which tenants pay for their own HVAC repairs?

From regular building maintenance to upgrades and renovations to tenant billing and lease details, you need a single source of truth to keep it all straight.

A good property management software will store the unique data from each tenant’s lease contract, automate processes like tenant billing and rent collection reminders, run financial reports, and more.

But, property management software is not one-size-fits-all.

You’ll want to choose software that is designed specifically for your niche. Two options to consider are software from SparkRental and Yardi , an industry leader in commercial real estate software.

Take the time to research several options to find the right property management software for your business. You’ll be living with it and relying on it every single day.

Finding the right help will be key to building a strong property management business.

As you gain clients, you’ll need to hire employees to take tasks off of your plate so that you can focus on managing and growing your business.

But employees must be paid. So, first, you should only hire for positions that will provide the most immediate benefit to your business.

In a property management company, consider the following types of part-time or full-time employees:

After that, consider what aspects of the business pose the most significant challenges.

Does it make sense to hire maintenance professionals rather than relying on outside contractors? What about hiring brokers to show and lease vacant units?

You’ll know what your business needs as it evolves.

Building a robust and well-rounded team will create a stable foundation for your business. And you’ll sleep better knowing you’ve got a team in the trenches with you that you can rely on.

The legal stuff

Of course, hiring employees for your commercial or residential property management company means you’ll have to deal with all sorts of legalities and paperwork. This isn’t an area where you should “wing it.”

You should :

Get an Employer Identification Number (EIN) by applying on the IRS website (you’ll get your number immediately after applying!). You’ll need an EIN for many things, including to open a business bank account for your trucking company. Register with your state’s labor department. Fill out paperwork to withhold federal taxes from your employee’s wages. Set up workers’ compensation insurance if it is required in your state.

You’ll also need to decide whether you’re hiring full or part-time employees. Part-time employees cost less and require less paperwork to get set up. So you may want to start with part-timers. Then, as the business grows and you can afford it, you can expand their hours.

A website is active online, promoting your business 24/7 – even when you’re onsite doing building inspections or showing vacant units.

So, put this vital business tool to work for your property management business.

Start by ensuring that your website design truly embodies your brand. Visitors should understand who you are and what your company is about when they arrive.

Do you specialize in full-service commercial property management?

Maybe your property management company provides white-glove service for the tenants in your residential properties.

Communicate important brand differentiators (things that set your property management company apart from your competition) like these on your website.

And your website’s visual design and marketing copy should protect your business’s personality and identity, too.

Here are some suggestions:

Besides helping people to get to know your property management brand – increasing the likelihood that they’ll hire you (now or in the future) – your business website is also an excellent venue for showing off your success stories.

Consider sharing testimonials from past satisfied clients and tenants.

Finally, a strong website design will lend credibility and legitimacy to your business.

And don’t worry that you have a brand new website and business. You can overcome that obstacle too. Mandi Ellefson, CEO of The Hands-Off CEO, told us that:

I could take a brand-new company and spin up a website and a logo and make it look like they’ve been around for 10 years.

Perception is everything.

To learn more about excellent website design, check out Grow Your Small Business With These 7 Website Design Best Practices and 11 Biggest Web Design Trends for 2022 .

Marketing is essential , especially for new businesses. You need to find a way to get in front of potential clients.

Whether you’re managing vacation rentals, commercial buildings, or residential buildings, it’s your job to figure out how to let potential clients know you exist.

So, build a game plan for selling yourself and your property management services.

Your marketing efforts will mean the difference between success and failure. So, opt for tactics you can implement daily without taking too much time from your core business – property management.

Here are three tips to get you started:

Take time to develop and rehearse an “elevator pitch” (explaining exactly what your company does, what it does best, and why it’s the best choice) until you can deliver it comfortably and confidently to anyone, anywhere. This 20-30 second explanation of what you do should be interesting and descriptive. After all, you’re the expert in property management – not your potential client. Check out MindTools’ guide to Crafting an Elevator Pitch .

Practice overcoming objections. No matter how excellent your services are, clients and potential clients will always have reservations – after all, their money is on the line. For example, how do you answer questions about your maintenance track record or vendor contract negotiation skills? So, brainstorm as many possible objections as you can think of. Then practice putting those concerns to rest.

Develop and execute a list of day-to-day tactics that will keep your sales/marketing efforts moving forward. If you’re not selling your services, then it’s likely that no one is. So, make sure to make marketing a part of your daily tasks.

Here are a few ideas…

However, you approach it, plan to seek new business proactively – and then stick with it.

Before you go...

For the brave men and women who dare, starting a property management company may be the most rewarding, life-changing decision ever.

Will you join them and start a property management company of your own?

We regularly update this guide to keep it current. We most recently updated this guide on February 26, 2023.

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What’s in this article?

15 steps to start a property management company.

1. Create a business plan

2. Research your market

3. Choose a business name and legal entity

4. acquire the necessary certifications and licensing requirements.

5. Make sure your business is legally protected

6. Get business insurance

7. Identify the best pricing structure and set fees

8. set up your property accounting and financial projections.

9. Design well-planned agreements and contracts

10. Create and set up your business website

11. Invest in advertising and marketing strategy

12. Hire passionate people

13. invest in property management software.

14. Network and grow your business

15. keep an open mind, take the plunge, into your own property management company, frequently asked questions about starting a property management company, what is the first thing you should do when starting a property management business, how do you start a management company, what are the steps in starting a property management business, what are the duties of a property management company.

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Tips For Starting A Property Management Company

Last modified on January 5th, 2021 By Brittany Benz

Thinking about starting a property management company or taking on a career in the industry? Before you dive headfirst into property management, you need to make sure you have the right skills and knowledge. Being in property management may seem simple to those with little experience looking in from the outside, but it is in fact very complex.

If you’re already in property management and are looking to grow your business or make the most of the latest leasing technology, take a look at these helpful resources:

Fill Vacancies Faster: 10 Proven Rental Listing Tips to Convert More Leads

How Online Rent Payments Benefit Property Managers & Residents

How to Make Virtual Showings a Win-Win for You & Your Prospects

Below we’ll take an in-depth look at what a day in the life of a property manager looks like, what is required to start a property management company, and how you can set yourself up for success.

What Is Property Management?

Property Management is the oversight of one or multiple residential, student housing, community associations, or commercial properties. The owner and manager can be the same individual, or the properties can be run by a property management company if the real estate investor doesn’t have the time or experience to manage the properties himself.

What Do Property Managers Do?

Property managers take care of and manage buildings and other real estate properties for individuals or groups of owners. They are classic middle managers that connect owners to renters and also take care of vacant rental properties. Responsibilities of property managers include marketing vacant units, showing the properties, collecting applications, getting leases signed, collecting rent, overseeing maintenance on the properties, conducting move-in/out inspections , and more.

One attraction of property management as a new business venture is that the barrier to entry is low. Startup costs are affordable ($2,000-$10,000), no advanced degrees are required, and you can get into the business with little experience. Having a background in real estate is helpful, but not essential.

Some of the most important traits of a great property manager are the ability to be well organized, to connect and empathize with people, and to be responsive to many types of urgent situations. You’ll have to interact with residents and prospects on a regular basis, so it’s essential you have strong customer service skills.

You will also need to have the skills to form positive working relationships with vendors, as you’ll need a network of contractors to handle maintenance issues, as well as special requests. And ideally, you’ll be proactive in identifying ways for property owners to make valuable enhancements to their properties as well as to save money where appropriate.

Most of your daily tasks will involve working with landlords, residents, and contractors, so your ability to communicate and deal honestly with them is most crucial. Property managers must also be detail oriented, dependable, independent, and consistent. Owners are outsourcing this task so they don’t have to be involved. The successful property manager is a creative and effective problem solver. Finally, you need to have a working knowledge of local, state, and federal housing laws and regulations, as well as a basic understanding of finances.

What Do Community Association Managers Do?

Like property managers, community association managers oversee properties, but these properties are inhabited by homeowners. The homeowners may or may not live in the units they own, and the entire community is run by those homeowners who are elected to the board of the association. The board members are volunteering their time to ensure that their community is the best place for the residents to live in.

If you’re an established community association manager, then take a look at these articles to further enhance your association:

How to Provide a Standout Experience for Your Homeowners & Board Members

4 Ways to Drive Efficiency for Your HOAs & Condos

Back to those who are starting out — property managers can help community associations by processing the monthly homeowners’ dues payments, tracking violations, coordinating maintenance as needed, and communicating with the board and homeowners in addition to other tasks. While there are self-run community associations, a property manager can be a tremendous asset to take busy work off of the board members and streamline communication to help the association run smoothly.

How Much Do Property Managers Make?

According to recent reports from payscale.com , the national average salary for property managers is around $50,161/year for entry level to $75,000/year for more experienced managers.

How to Become a Property Manager

Once you’ve decided you want to get into the property management game, it’s easy. Many states require you have a real estate license, so check to see if your state is one of them. Like with any new industry you’re entering, you’ll have to start out as an entry-level employee and work your way up. Over the years, you’ll learn the ins and outs of management and make some valuable connections, and eventually, you could branch out and focus on starting a property management company of your own.

Do I Need a Property Manager License?

Although many states require a real estate license or other certification, most don’t require an advanced degree. A real estate license or practical experience in the real estate industry is helpful, but not always required. However, having a real estate or property management certification can still be beneficial if you intend to start working for an established property management firm.

How To Get Property Management Certification

There are a number of programs in the U.S. that offer courses for licensed real estate agents and brokers to get certification in property management. The courses teach you how to establish and build a property management business, find clients, and remain compliant. Here are a few of the most popular courses currently available:

NAA Certified Apartment Manager Credential Program

IREM Certified Property Manager Course

NARPM Residential Management Professional Designation

How to Start a Property Management Company

Starting a property management company is similar to setting up any other type of commercial enterprise. You need to establish a legal entity – normally a Limited Liability Corporation (LLC) or an incorporated business (Inc.). You can hire an attorney or you can do it yourself online.

It’s also a good idea to draft a business plan . Having a solid business plan can help you to make better decisions, stay focused, and to take a methodical approach when starting your company. When creating your business plan, consider your short- and long-term goals. Where do you want your business to be in 1,3, and 5 years? What kinds of services do you want to provide to your residents? How do you want to structure your team? How do you plan to handle maintenance? When you’re finished, you’ll have a comprehensive roadmap to successfully run your property management business.

How to Market a Property Management Company & Get Clients

Networking is an effective way to begin building your client base. Find local real estate clubs and connect with local business organizations like the Chamber of Commerce.

Reach out to real estate agents who are constantly in touch with landlords. Local lending institutions are also good sources of leads. They may have properties for which they are responsible and outsource the property management function. Local contractors also interface with property owners regularly, so seek them out for possible introductions.

Finally, advertise your services using both on and offline channels, and be sure to run a paid search campaign to capture property owners searching for property management companies in your area.

How to Run a Property Management Business

Once you’re all set up and have some properties to manage, it’s in your best interest to employ a property management software to keep you efficient and organized to successfully run your business. Daily tasks can be streamlined, so you can focus next on growing your business and making more money.

And while your property management company may start out small, be sure to look for a software solution that scales as your business grows. By doing so, years from now when your business is booming, you will be comforted in knowing that you aren’t going to outgrow your software.

Once you manage 50 or more units, consider implementing an all-in-one property management solution, like AppFolio that gives you the ability to run your business, stay connected, and communicate with customers — from anywhere. For more information on how AppFolio Property Manager can help optimize and grow your property management business check out this helpful guide.

Being a property manager can be challenging, but for the right type of individual, it can be an extremely rewarding career.

Brittany Benz

Property Management Trends

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11 comments

Thiago daLuz

Our property management company in Huntington Beach CA does a pretty good job informing clients about their responsibilities, but a little extra insight never hurts. Thanks for putting this together.

Great article, Aimee. Thank you for the tips. One question I have that was touched on but not explored in more detail (local laws, etc.) is the licensing requirements some states have in place. How onerous can the licensing requirements get?

Collin, each state is different. Call your state’s real estate commission and ask if a license is required. It is in NC!

Good description, the company I work for in south Florida does a pretty good one running the extra mile and providing the owners/investors financial statements for monthly control of their assets.

Nice, Simple, straight and Amazing Article !

I have recently retired from a very large property management co. based in NYC and am looking to start my own co in south Florida. My old co managed over 500 major malls (including Simon Properties) across the US and many high rise buildings in NYC.

Do you recommend partnering with another upstart?

Florida has licensing requirements. Not a big deal.

What do you think the difference is between Property Mgt. and Facility Mgt. Do you recommend combining both as a startup.

Hey Mike, I just came across this article and your post. Curious to see about your progress and what part of Florida?

Sorry for the delay in responding…..I am in south Fl. Palm Beach to Miami. Lots of competition. There seems to be only a few BIG companies with most of the business. I have had little success cracking the managing end, however, I am inundated with the “DO IT” side. Lots of unqualified management people few hands on. Most with little or no formal education. ( I’m an odd ball with a masters in engineering) Easy to get certified here ….20 hrs or so course, test and wa-la I’m A Facility Manager.

However, I have been able to build a nice fix-it business, however, I do find it hard finding qualified tradesman and people with experience with contracts, accounting, budgeting, and project management. Really spreads me this sometimes.

There are some good trades man around, most without work permits and green cards. A potential sink hole. However, I’m moving along and will continue to try to crack a few of the mid-sized properties.

I try and keep you posted.

Thank you for the article. Here in KY a person within the firm must have a valid real estate license and I understand that more states are adding that to their licensing requirements.

Aimee Miller

Glad this article was so helpful — here are a few additional resources that will help you learn more about starting your company: + Educational articles — http://www.PropertyManager.com + Industry Associations focused on property management: http://www.IREM.org ; http://www.NARPM.org ; http://www.NAA.org There are often local meetings for members as well as certification and education to help you ensure you’re meeting the requirements, laws and best practices.

These sound like great tips of advice! Personally, I found the article helpful, informative, and insightful! Thanks for sharing!

Comments are closed.

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Small Business Trends

How to start a property management company.

Looking to start a business offering property management services? Remember there’s an overlap between what a property manager and real estate agents do. They both work in the real estate industry. And have some of the same requirements.

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The future looks good . The property management market will be worth 21.4 Billion USD by 2025. So, if you are looking at how to make money in real estate , property management is one sure way to do it.

What is a Property Management Company?

Absentee landlords hire them for managing properties.

How Much Does it Cost to Start a Property Management Company?

17 important steps to starting a property management company, 1. research other property management companies.

Before you can start your own property management company, you need to know what you’re up against.

2. Choose a Name and Brand Your Property Management Company

3. write a property management business plan, 4. form a legal entity and register, 5. open a business bank account, 6. make sure you have the licenses and permits required in your state, 7. create a business website and choose a location.

A business email hosting service is good. The setup fee should be low .

8. Consider Ongoing Costs and Fees

9. get your taxes in order, 10. purchase business insurance, 11. plan your accounting system, 12. set up your business phone system, 13. hire staff, 14. finalize your services and pricing structure, 15. consider property management software, 16. market your business, 17. expand your portfolio.

Property Management Business Plan

If you are starting a property management company, you may need a business plan in order to acquire third party financing, or better understand how to enter your market. Generic business plan software makes you perform the effort and many business plan writers are simply underqualified. Pro Business Plans is a professional and diverse team that takes the time to understand your business model to create a fully custom property management business plan for internal planning and strategy.

Building a property management company is not simple, it requires the ability to acquire clients and establish a custom operational plan based on the unique qualities of your company. If you are seeking third-party investment to start or grow a property management company, the financiers will request to know how your company is different from others on the market. In many cases, this will require an innovative marketing strategy, strong management background, or other differentiating factors that qualify you to run a property management firm. Pro Business Plans has worked with several companies in the real estate industry to sprout and grow through custom business plans.

Business Model

The business model in a property management business plan constitutes the majority of the content. It explains your unique approach to the market and how you will outperform other companies in year area. This may entail forming strategic partnerships, outlining a strict operations process for managing properties and handling clients, or implementing some competitive edge that other companies have difficulty competing against. Pro Business Plans has worked with many property management companies within the United States and abroad to construct and communicate their business models.

Marketing Plan

The marketing plan section of the property management business plan is among the most important for new companies seeking to quickly establish a client base. This often outlines an approach to win new property management contracts through a combination of marketing channels including traditional sales, digital media, and strategic partnerships. Pro Business Plans has analyzed what has worked for similar companies in the past and leverages the competitive edge of your business model to produce a custom marketing plan.

Financial Projections

The financials of a property management business plan should reflect two primary components that depend upon the business structure. In some cases, small family office employees work to manage the properties directly to receive a dividend or have intentions to sell the company later on. In other cases, all employees are hired and managed by the owner or a full-time management employee. Each condition will have an impact on the expense structure of your company, along with the anticipated client portfolio and fees charged, which will range depending on the location and complexity of the managed properties. Pro Business Plans has created the financial projections for property management firms in the past and collaborates with your team to determine reasonable assumptions about its future performance.

What is Included in Our Custom Business Plan?

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How to Create a Property Management Business Plan

Property management is one of the most lucrative real estate ventures that you can set up in 2019. An increasing number of real estate investors are opting to delegate property management to professionals. Consequently, there has never been a more ideal time to start a property management business. But how to become a property manager ? And what are the steps to creating a property management business plan? In this article, we will explore the nuts and bolts of how to start a property management company and teach you the basics of writing a property management business plan .

The Importance of a Property Management Business Plan

A business should be built on a solid foundation, and the first step of laying it begins with a coherent business plan. This is essentially a document that encapsulates your business and outlines the essential aspects of your activity. More importantly, a business plan is a legal requirement in most states. It is also worth noting that the specifics of how the business plan is structured vary from one state to another. But generally speaking, here are the main points that should be included in a property management business plan proposal:

After going over the basics, let’s delve into further details on how to craft a property management company business plan.

What You Have to Know When Creating a Property Management Business Plan

As you can see from the points discussed above, a property management business plan does contain a wide range of elements. Having a firm grasp of all of them is essential for ensuring state law compliance. Here is a brief look at what you need to be aware of when creating a typical residential property management business plan.

1- State laws

The first step of creating a property management business plan is familiarizing yourself with state laws. Proceeding without checking local regulations can lead to several compliance issues. For example, some states (like New York and Florida ) only allow licensed real estate brokers to become property managers . Conversely, other states have more lax laws when it comes to property management eligibility. In addition to this, the property manager should also be aware of all the laws that pertain to the tenant-landlord relationship.

2- Education requirements

Besides reflecting the business, the property management business plan must also reflect the managers themselves. This is why you have to include relevant education credentials in the plan. Moreover, some states will require you to take several classes before granting you a property manager’s license. To avoid any unnecessary delays, make sure to take the classes before the set deadlines.

3- How to get property management clients

The client is the cornerstone of the management business. These are the investment property owners that managers seek to service. Needless to say, the ability to generate property management leads has to be reflected in the plan. The most effective lead generation methods for a start-up property management company are still networking and paid ads.

4- How to find tenants

Finding clients is only half of the equation. The other half is finding the tenants that will occupy the rental properties that you are managing. The rental properties business plan must contain a section that outlines the manager’s prospecting ideas. Luckily, there is a wide array of options when it comes to finding tenants. This includes everything from online listings to word of mouth.

Now that you’re familiar with the prerequisites for creating a property management business plan, let’s take a look at how you should structure one.

How to Structure a Business Plan

how to structure a property management business plan

Most business plans follow a similar template and feature no more than five sections. Here is an example of a simple and intuitive property management business plan structure:

Section 1: A general overview of the business

The first section should focus on some basics aspects of your real estate management business as well as its overall objectives. This is where you need to identify the ownership of the business and provide a basic overview of what you want to accomplish.

Section 2: Details about the property management company

This section is where you will be adding more details about your property management company. You will have to define several aspects of your activity. This includes a thorough description of your business model, a SWOT analysis , and your long-term and short-term goals.

Section 3: How your business operates

This section of the property management business plan is dedicated to the operational side of the company. In other words, you need to specify everything that pertains to the day to day running of the business. Examples of this are the services you offer to clients and tenants, your fee structure, and the organizational chart of your company.

Section 4: Your marketing plan

As we mentioned earlier, a property management business plan must contain a comprehensive marketing plan. This section should feature as much detail as possible since every aspect of the business needs to be covered. Make sure to expand upon lead generation and client retention strategies.

Section 5: Your financial projections

Creating financial projections is an integral part of a property management business plan . Since this section reflects the financial side of the company, you will have to create a balance sheet. Additionally, you will need to do a profit and loss projection for the first year of operation.

The Bottom Line

Creating a real estate property management business plan requires a fair amount of work. Having said that, the process becomes more streamlined and enjoyable once you have grasped the basics outlined in this article. Just make sure to pay close attention to every detail and avoid rushing through the steps.

Once you have set up your property management business, you’ll be glad to know that there are several tools that can help you do your job! Head over to the Mashboard and start using the best tool for property managers .

Yassine Ugazu

Yassine is a versatile content writer who enjoys crafting compelling copies and articles about the various facets of real estate.

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Property Management Company Business Plan Template & Guidebook
How to Start a Profitable Property Management Company Business in 11 Steps! Table of Contents: 1. Describe the Purpose of Your Property Management Company Business. 3. Build a Creative Marketing Stratgey. 4. Write Your Operational Plan. How to Write a Property Management Company Business Plan in 7 Steps: 1.
Property Management Business Plan Template (2023)
Below are links to each section of your property management business plan template: 1. Executive Summary 2. Company Overview 3. Industry Analysis 4. Customer Analysis 5. Competitive Analysis 6. Marketing Plan 7. Operations Plan 8. Management Team 9. Financial Plan Next Section: Executive Summary > Property Management Business Plan FAQs
Property Management Business Plan Template [Updated 2023]
Below are links to each section of your property management business plan template: 1. Executive Summary 2. Company Overview 3. Industry Analysis 4. Customer Analysis 5. Competitive Analysis 6. Marketing Plan 7. Operations Plan 8. Management Team 9. Financial Plan 10. Appendix Next Section: Executive Summary > Property Management Business Plan FAQs
How To Write A Property Management Business Plan + Template
A property management business plan is a formal written document that describes your company's business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members.
Full Guide On Starting a Property Management Business
Setup Fee: a one-time fee you charge landlords to create an account with your property management, usually it's around $300 Ongoing Management Fee: this is how you really make your money. This fee could be as low as 3% of monthly rental income or as much as 10%, it all depends on your local market.
How to Start a Property Management Company
Your property management business plan should include the following: Executive summary. Company description. Products and services. Marketing plan. Operational plan. Management. Financial plan/projections. Your business plan can be a point of reference as you launch your property management company. 2.2 Formulate your business plan.
How to Start a Property Management Company in 2023 [Guide]
If you want to set up a property management company, know that the barrier to entry is relatively low. The start-up costs are affordable, ranging from $2,000 to $10,000. No advanced degrees are required, and you can enter this business with little experience. How do I start a successful property management company?
Property Management Business Plan [Free Template]
Property Management Business Plan Outline This is the standard property management business plan outline which will cover all important sections that you should include in your business plan. Executive Summary Mission statement Vision Statement Customer Focus Success Factors Financial Summary 3 Year profit forecast Company Summary History
How To Write A Unique Property Management Business Plan
Before you write your plan, there are a few things that you should think about. We recommend getting a blank notebook and using this notebook to jot down any and all ideas that you have about the rental business. Do this for at least one week, and then re-read through the ideas for another week. Add more as you go.
How to Start a Property Management Business
Step 1: Decide if the Business Is Right for You Pros and cons Starting a property management company has pros and cons to consider before deciding if it's right for you. Pros Flexibility - Start from home, set your own hours Good Money - Get a percentage of all the rent you bring in Low Startup Costs - Very little needed to get started Cons
How to Start a Property Management Business
Start a property management business by following these 10 steps: Plan your Property Management Business Form your Property Management Business into a Legal Entity Register your Property Management Business for Taxes Open a Business Bank Account & Credit Card Set up Accounting for your Property Management Business
Start a Property Management Company: Beginners Guide
Below, we have listed a comprehensive list of steps that, if followed correctly, will provide you with a robust grasp of what needs to be done to start a property management business. 1. Learn about your state's laws and legal requirements. This is an essential foundation that must be done before anything else in the company.
How to start a property management company the right way
A business plan serves as the framework for your entire property management business. The point is to plot out every aspect of your company from your startup capital all the way to breaking even. Per the Small Business Administration (SBA), a formal business plan has these things: Executive Summary Company Description Market Analysis
How to Start a Property Management Company
What are the Typical Startup Costs for a new Property Management Company? The cost of starting a property management business is dependent upon size and a host of other factors. Starting a property management business usually costs $2,000-$10,000. How much do Property Management Operators Make?
How to Make a Property Management Business Plan [+Template]
Marketing plan. 7. Financial projections and revenue management. 8. Creating your property management business plan. 9. Frequently asked questions about property management business plans. Follow our five-step process to create a business plan that's perfectly tailored to property management, including everything from your mission and vision ...
How To Develop A Property Management Business Plan
Your property management business plan should contain a detailed proposal in which you address all of the following: Setting up your company Choosing a business model Setting up short-term goals Learning local laws and getting certified Setting up an organizational structure with potential employees
Business Plan for Property Management Company
Using the free business plan template tool to create a business plan for an a Property Management Company The free business plan template builder is divided into a few easy to follow steps. Create Your Business Plan Right Now! Free Business Plan Builder Step 1. Enter your business information
How to Start a Property Management Company in 2022
16 Steps to Starting a Property Management Company 1. Understand the Industry In 2009, statistics has it that the total revenue as recorded of the property management industry in the United States of America was about 59 billion U.S. dollars.
How to Start a Property Management Company
How to Start a Property Management Company: Choose your niche Define your services Write a business plan Decide your legal business structure Fill in the business blanks Crunch the numbers Develop your brand identity Choose your property management software Find the right help Build an online presence Spread the word Step 1 Choose your niche
How to Start a Property Management Company Like a Pro [2022]
15 Steps to start a property management company 1. Create a business plan 2. Research your market 3. Choose a business name and legal entity 4. Acquire the necessary certifications and licensing requirements 5. Make sure your business is legally protected 6. Get business insurance 7. Identify the best pricing structure and set fees 8.
Tips for Starting a Property Management Company
Starting a property management company is similar to setting up any other type of commercial enterprise. You need to establish a legal entity - normally a Limited Liability Corporation (LLC) or an incorporated business (Inc.). You can hire an attorney or you can do it yourself online. It's also a good idea to draft a business plan.
How to Start a Property Management Company
Market Your Business. Increase your real estate sale activities with marketing. A website needs to be optimized. And mobile friendly. 17. Expand Your Portfolio. A property owner needs a successful property manager to maximize their ROI. Starting a property management business is easier with the steps listed here.
Property Management Business Plan
Property Management Business Plan . Building a property management company is not simple, it requires the ability to acquire clients and establish a custom operational plan based on the unique qualities of your company. If you are seeking third-party investment to start or grow a property management company, the financiers will request to know how your company is different from others on the ...
Creating a Property Management Business Plan
The Importance of a Property Management Business Plan. A business should be built on a solid foundation, and the first step of laying it begins with a coherent business plan. ... The most effective lead generation methods for a start-up property management company are still networking and paid ads. Related: How to Get Property Management ...