Now is a fantastic time to get into the property management business. According to the industry experts, this year rentals will be on the rise. The reason for the increase is that mortgage interest rates are due to rise again this year making some people hesitant about buying a home. In addition, millennials make up a large number of people who would be looking for a home, and they are more apt to rent a home or apartment versus buying. These factors make the property management business a lucrative one, and things are only looking up in the near future.
However, just as with any business, preparation is the key to being successful. This property management startup checklist will provide you with all the things you’ll need to do to get ready to start operating your new business.
As a new business, you will need a license to operate your business. Check with your locality’s exact guidelines about what steps to take. When you get registered to do business in your city, you’ll also get an employer identification number (EIN). This is used on forms to identify your business.
There are different ways to structure your business entity. Your business can operate as any of the following:
Each of these has its advantages and disadvantages. We recommend checking out legal zoom to learn more about each type of business.
It’s important that you don’t mingle your business income with your personal income. You’ll want to keep careful track of how much you have coming in and going out, and the best way to do that is to keep separate accounts. Open up a separate business bank account.
Property managers these days rely on software solutions to automate day to day tasks as well as the complicated marketing process. This software will go a long way into making your daily operations run smoother and not let little things fall through the cracks. Here are a few piece of software you might want to start thinging about.
Posting your clients property online for renters to find sounds easy, but when there are over 50 different sites to post properties to, that can become a really big time investment. Tools such as Appfolio can help you automate the process. Giving you more time to interact with clients and tenants.
Even with a great sales team, managing the sales process by hand can easily get out of control. We recommend PM Rocket Tools, to help here. This is a CRM built for property managers that cuts down on research time and helps you organize all of your contacts into one central location.
Every new business needs to establish itself with a user-friendly website. The website will help direct new clients to your business and answer questions from current clients. It needs to be visually attractive, with a robust and powerful user-interface. Since you will be managing multiple properties, it’s essential that tenants have an easy way to start a maintenance request, pay their rent, and renew their lease when it expires. All of this can be accomplished with the right type of website tools.
Marketing your property management company to prospective clients is a crucial part of your business strategy. In our digitized world, a strong digital marketing component is essential. Many property management companies seek marketing help from an agency, while some firms try to do it on their own. It’s difficult to develop a content strategy while also juggling all the other property management responsibilities. Hiring a marketer could be costly but usually provides the best results and helps you scale in the most effective way.
You will need several different forms for your clients. Lease agreements, eviction notices, pet policies, and so on. Property managers will also need financial forms, such as invoices for maintenance work, receipts, and financial reports. You’ll probably want to print out income and expense data for accounting purposes, as well. All of these electronic forms are a necessary part of having a property management business.
All of these start-up requirements and tasks may seem overwhelming to the entrepreneur, but at Property Management Pros, we found a way to simplify the process. Our business model makes starting your own property management company simple and fast. With our license, you have everything you need to get started right away. We provide you with access to the tools you need to be successful including a customized website, training, technology tools, national brand recognition, marketing tools, and more. It’s like walking into an already-established business and taking over. It’s that easy. For more information about starting your own property management company with the Pros, get in touch with us today and download your Free Cost Comparison Sheet. This informational guide will show you the cost of starting your business on your own compared to getting a license through us. Compare and decide what is best for you and your needs.