How to Start and Grow a Successful Property Management Company
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If you love being a property manager, have you thought about starting a property management company? It's an in-demand industry as the rental market continues to expand—with plenty of room for growth. If you're ready to take your career into your own hands and build a company with your goals and unique values in mind, now is an excellent time to start the design process.
There's more to running your own company than being an excellent property manager. While you probably have plenty of industry experience, a successful property management company owner needs insight into business management, developing efficient processes, and building the best team geared toward success.
Ready to get started? We can take your property management expertise and set up your new business with insight from top-performing consultants. If you want to tap into some of our knowledge for free, peruse these tips from the experts here at Real-Time Consulting Services.
What's Your Plan?
Starting and growing a successful property management company requires a business plan! A plan helps you focus your energy on specific goals and provides an actionable direction. Your business plan also enables you to find a business partner and define your market, services, and mission.
If creating a business plan seems like an intimidating task, working with a property management consulting firm can assist in guiding you through the process. They can help you develop a plan that enables you to get started on the right foot. A formal business plan should include:
- An Executive Summary
- Your company's description
- Target market analysis
- How you plan to set up your organization
- The services you'll offer
- Financial projections.
As you develop your plan, think about what will make your property management company stand out from the competition in your area. The more specifics you include in your plan, the easier it will be to find the right partners and investors to help your business grow.
Structure Your Business
To operate as a legal business, your company needs structure as a business entity. Whether you choose an LLC or another entity type, consult an attorney that specializes in business to help you set up the best structure for your property management company.
Giving your business a structure also helps protect you against accrued liability. If something goes wrong with a property or renter, having a structured business entity helps protect your personal assets from a lawsuit.
Get Your Licenses
Are you certified? Set yourself up for success with property management certifications and business licenses that give you credibility in the industry and your market. Most states require licensing to operate as a property management business. Research your state and follow the laws to get the licensing you need before you start managing properties.
As you grow your business and add more doors, courses like the NARPM Residential Management Professional Certification help you continue to build your reputation as the best property management company in the area.
Make sure you also have the appropriate insurance policies to protect your business. You never know what can happen in this industry. When managing properties and residents, it's critical to protect your income with the right coverage to support your long-term success!
You are an expert at marketing properties for rental property owners. Now it's time to market yourself!
To sustain your business, you need to build a network of opportunities and clients. However, marketing for property management can be challenging. Hiring a property management consultant can be the best way to add visibility to your business and stand out against the competition in your market.
You might be the best at what you do. However, if marketing your new business isn't something you do well, outsourcing your marketing can be the right decision to start and grow your property management company to get all eyes on you.
Build and Develop Your Team
Starting a new property management business means you're the boss—but you can't do everything you need to on your own. While you learned the ropes as a property manager for someone else's company, it's time to build your own team of expert property managers.
Hiring and managing people requires different skills than managing properties. To serve your clients well and support the mission you outlined in your business plan, your team must follow your leadership. If you aren't sure where to start building your team, you need a property management consultant!
We can guide you through the process of building and developing your team, including:
- Defining each role
- Developing an effective (and legal) employment application
- Training employees to follow processes and be an extension of your company's brand
- Investing in your team's development to reduce turnover.
Having the right team is critical to your success as a property management business owner. A property management consultant can help guide you to your first hires to support your success!
The Right Guide Matters When Starting Your Next Venture
Being an entrepreneur can be nerve wracking. It's also an exciting and fulfilling way to build your career as a property manager in your market—and you don't have to get started on your own.
Our elite team at Real-Time Consulting Services has helped many property managers start and grow their businesses. Contact us to find out how we can help you map out your business plan with a growth-based trajectory.