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