If you’re thinking about trying your hand as an entrepreneur, starting a property management business can be a wise decision. After all, everyone needs a place to live, so in that sense, it’s somewhat recession-proof compared to other businesses.
Due to the industry’s lucrative nature, it’s no surprise that the property management market continues to grow. In fact, it’s expected to nearly double between 2022-2029, increasing from $19.33 billion to $37.25 billion.
Unfortunately, you can’t just start a property management business, open your doors, and expect great results. Instead, you need to build your business the right way and ensure it gets started on the right foot.
With that in mind, let’s look at four steps you’ll need to take before you launch your new property management company.
How to Start a Property Management Company
If you’re wondering how to start a property management company, you’ve come to the right place. Although every business is different, these four elements are essential for any successful property manager.
1. Create a business plan.
After deciding to launch a property management business, the next thing to do is create a business plan that describes your company, your desired market, your marketing and sales plans, and how you’ll finance your operations.
During this step, you need to research your competition to discover their markets and customer bases. You’ll also need to create a company name and determine unit prices. Additionally, you’ll want to write down short- and long-term goals and objectives to measure your business’ progress—or lack thereof.
2. Figure out whether you need a license.
Licensing requirements vary for property managers on a state-by-state basis. In most cases, you will need a real estate license to become a property manager. In some states, you may need to meet additional requirements, such as obtaining a property management license, registering as a property manager, or securing other certifications. To learn more about the licensing requirements in your state, check this out.
3. Hire the right team.
Ultimately, people are any business’ most important asset. As you begin launching your property management business, you need to hire the right team members. Otherwise, you may find it more difficult to meet your business objectives.
The best employees have experience in property management. They are patient, professional, and good at customer service. Additionally, they are flexible and productive, with solid communication and organization skills.
Need more tips about building the best team for your property management business? Download our free guide: Attracting and Retaining Talent to Grow Your Property Management Company.
4. Invest in purpose-built software.
As the owner of a property management company, you want your business to operate as efficiently as possible. To do that, you must build your business on a strong foundation with purpose-built software for property managers. Leading solutions can handle several important property management functions, including billing, maintenance, payments, and more. As a result, residents can handle their own tasks, freeing up your team to focus on what’s most important.
When Will You Start Your Property Management Business?
Starting any business is hard work, and that’s no different for property managers. But with the right approach, you can create and grow a strong business, claiming your slice of the property management pie.
Netintegrity can help you on your journey to property management excellence. Our property management platform, INFO-Tracker™, was built with people like you in mind.
To learn more about how Netintegrity can help your property management company set itself up for success, request a demo today.
