Start and succeed in your home-based property management business!
If you know a thing or two about residential or commercial maintenance, and are looking for something that is a combination of working in a home office and hands-on work, then a property management service could be the home-based business to start.
A property management service is one of the most lucrative businesses to start, whether you choose to work from home or set up shop in a traditional office. However, for the purposes of this article, we will focus on home property management service and how you can get started right away.
Check local and state regulatory agencies to make sure the business you start stays within the limits of the law. This will most likely require a business license, tax ID number, etc. However, in some locations, you will need to be careful about the actual services you offer, as these services may even require a real estate license.
Research the local market to determine if there is a need for the services you plan to offer, and if so, how much competition you will face as a new business owner.
Make a very detailed list of the services you will offer. No general list. Break it down with as many details as possible. Include inspections, cleaning, tenant issues, maintenance, gardening, etc., on your list.
Decide how much you will charge for each type of property and for the different levels of service you will offer. For example, if you’ll be regularly managing the entire property, you’ll want to consider charging a flat fee for certain services. If you will only be managing certain aspects of the property, then you may charge a different fee or you may choose to charge for each service you perform. Be sure to factor the size and type of property you’ll be managing into your price.
Plan and start marketing your new business. The best way to reach absentee homeowners is by using the Internet, but consider other ways to market your business, such as placing ads in your local newspaper in the amenities section.
Gather the tools you’ll need to perform each of the services you intend to offer and have them available (in your trunk, truck, etc.) when you meet with prospective clients. This will not only give the appearance that you are already managing other properties, but it will lend credibility to your claims that you will do an excellent job with your property.
As you begin to get responses to your marketing efforts, you will typically meet with the owners at your property to discuss the services you have to offer and why they should allow you to manage their property compared to the current arrangements they have. Even if you have to negotiate a bit to get your first client, do it! Remember, word of mouth is your best advertisement, and your first customer will probably be your best referral, and can help you land your next customer… and your next… and on and on!