Starting your own property management company can be tuff but the rewards are astronomical. Typically, property management companies vary in size, from gigantic firms that manage thousands of properties like apartments and commercial plazas to smaller firms that represent a handful of residential rental properties. The underlying goal, regardless of your size, is to increase your profit. There are many ways to approach this problem, for the young and aspiring entrepreneur, listed are six ways to tackle this issue, even if you’re just starting out.
Brian Setencich possesses a great deal of knowledge when it comes to working in both private government sectors. Working as the General Manager for First Service Residential has granted him some significant insight into how a profitable property management company operates. For starters, get familiar with owners associations. Both commercial and residential property management firms will typically create owners associations and hire them to manage their physical properties, including dealing with the headaches of filing government paperwork.
Use Modern Technology To Manage Your Properties
Using computer software or cell phone applications to keep track of how your properties are being managed is a must. Having the ability to receive automatic updates when rent is paid while being able to review and approve maintenance request on the go saves you time and money. Otherwise, if you choose to retain a third party, like an already existing property management company, prepare to pay a hefty fee. According to a recent article in Forbes, managing your own properties through a property management app may be cheaper but hiring a firm can help prevent legal issues which are likely to arise with a property owner beings to operate who is unfamiliar with the laws in their state.
How To Get Clients
Offering property management services to other larger firms is a great way for a property management company to make money on the side in lieu of simply possessing and renting real estate. To find clients, consult with local realtors and join the chamber of commerce in your area. Both of these strategies are a sure fire way to start procuring clients rather quickly with little to no overhead besides that of your own time.
Have A Portfolio
As with any business, having a portfolio is essential in the success or failure of your company. Think about it, when you look for a product online you want to see reviews; a portfolio if you will of the efficacy of the product. Those products with an overall negative review have a sullied track record and therefore probably aren’t a wise investment. It’s the same in property management. Having a company already established that has a track record of managing a few properties under its belt is ideal but not necessary. Another way to establish a portfolio would be to work for a larger firm like Brian Setenich and First Service Residential. Lastly, consider purchasing real estate and managing it under your company’s name, establishing a portfolio for yourself while simultaneously growing your company’s wealth.
Buy Ugly Homes
If you have the extra funds, look into buying ugly homes and remolding them. Construction contractors are usually pretty cheap and homes can be repaired relatively shortly if the damage isn’t severe. The main thing to avoid here is a property that has foundation problems; these can be the most costly and will hinder your company’s growth when just starting out.
Go To Tax Auctions
Those who haven’t paid property taxes on their homes eventually have them repossessed. In these cases, property buyers may attend regularly held IRS property auctions and procure exceptional real estate for a very reasonable cost; the unpaid taxes owed.
Brian Setencich graduated summa cum laude from California state university with a Bachelor of Arts in Business Administration. He has served as a City Councilman in Fresno, California; representing his district in the California State Assembly. His government experience was primarily gained while working as the Operations Manager for a 911 Emergency Response Project in San Francisco.