Property management is a rewarding endeavor to venture into, but one must have the passion and willingness to learn. Recent statistics show that the global property management size is expected to reach $23.6 billion by 2026. This growth looks appealing to folks who want to start a real estate-related business from scratch. That said, a well-run company must follow the best practices to fill the premises with suitable tenants. Here is how to start and maintain a successful property management company.
Leverage on Technology
In today’s digital age, property managers must use technology to their advantage. A software that can help businesses automate administrative tasks to save time and money. Other than that, property management software can market the business and create a checklist of preferences. It should feature customized tools to manage maintenance, schedule check-ins, etc. What’s more, technology will help the company communicate with clients via text and email. For the landlords, there should be a user-friendly website that facilitates communication between the stakeholders. The idea is to automate every aspect of the business.
Build a Professional Team
The success of a property management company is as good as the team. To start with, the company must have an accountant that specializes in real estate management. This person tracks income, expenses, company books, and tax issues. Another critical professional is a real estate lawyer. They protect the business from any possible legal problems that can put the company in trouble. The team must also conduct due diligence as tenants enter and leave the premises. After all, a wrong tenant can compromise the reputation of the property.
The company owner should also establish a relationship with contractors and landscaping professionals within the area. Meanwhile, property managers should know how to handle emergency situations that involve the rental property. For instance, if there’s a pest infestation, they should know how to deal with common pests and communicate with tenants about the cost of pest control treatment. The goal is to solve any possible issue that they may come across.
Pricing the Services Competitively
A property management company must strike a balance between competitiveness and profitability. That said, the services should not be too far from the reach of potential clients. This is where networking comes in. The trick here is creating connections with other industry professionals and keeping in touch with the current trends. The best pricing should take into account what other property managers charge in the area.
First, a property manager should determine the account setup costs. There should also be some ongoing management fee. Generally, the fee covers expenses like inspections, communication, and rent collection. There could also be a lease fee that covers the advertisement of new units. Simply put, the pricing should not inconvenience the tenants, but it should be enough so that the company can make enough money and maintain a standard of service.
A successful property management company should keep up with the changes in the fast-paced real estate industry. One must be willing to work hard to build a flourishing business. Furthermore, the company must maintain a positive relationship with the stakeholders. That way, it’s easier to build confidence in new clients and keep them happy.