Crushing it in property management will bring both professional and financial rewards.
However, overseeing one or several residential or commercial properties isn’t as simple as it may seem. Your primary responsibilities will include advertising vacant units, screening tenants, overseeing inspections, collecting rent, and handling maintenance as a property manager.
While the internet is filled with information on starting a property management business, what comes next? How will you make sure that your business is running smoothly and grows to a successful company? Below are some tips that will help you to grow your property management business.
Have a Business Plan
If you want to run a successful property management business, you will have to write an elaborate business plan. Your business plan should include all aspects of your business, including the steps you intend to take to grow your business. With a detailed business plan, you will present your vision and goals to investors and other stakeholders.
Brand Your Property Management Business
Branding is a key part of running a successful property management business. To begin with, you will need a logo that describes your business name. The logo will act as your business's visual representation, which means you can include it in posters, videos, flyers, websites, business cards, and brochures. If you’re unable to develop a good business logo, you can hire a professional graphic designer to do the job for you.
When it comes to branding, color is also an important aspect. According to NCBI, colors can influence mood, behavior, and signal action. For instance, white is often associated with purity and innocence, while yellow represents warmth and energy. Therefore, ensure that you choose a color that represents what your business stands for.
The property management business is prone to several liabilities. For instance, the rental property you manage can be destroyed or damaged by fire, weather, vandalism, or any other accident. Therefore, as a property management business owner, you will need different types of insurance, including:
- Liability insurance
- Commercial property insurance
- Business interruption insurance
- Automobile insurance
Although purchasing insurance can help you when the unexpected happens, insurance firms are businesses like any other, and they will want to pay off as little as they can. Therefore, to protect your business, you may want to work with a public adjuster who will work for you and not your insurance company.
Even when you purchase insurance, you will still need to maintain the properties you manage. The appearance of the buildings is essential. As you motivate your workforce to create a positive image of your business, a rundown building will do the opposite of what you want. Therefore, you should conduct routine checks to ensure that all properties are in pristine condition.
Whether you manage commercial or residential properties, there are some key areas that you should regularly inspect and maintain, including the roofing, paint, signage, glass, parking areas, and landscaping. You should also inspect and maintain interior areas, including the floors, walls, plumbing, furnishings, and fixtures. Additionally, ensure that everything is in good working condition, clean, and up-to-date. A well-maintained property will appear presentable and professional, and most people will pay top dollar for such high standards.
Invest in the Latest Technology
The digital scene has greatly impacted the real estate industry. Property managers, landlords, investors, and agents are all capitalizing on the opportunities that come with new technology. From the value added by smart technology on rental properties to the cloud, which makes it easier for property managers and tenants to connect, there are several benefits of investing in the latest technology.
Today, technology is playing a significant role in almost all aspects of property management. Some of these aspects include:
- Energy conservation
- Landlord communication
- Social communities
Another property management area that has been greatly impacted is the payment process. You can invest in the latest technology to automate and streamline the entire payment process. Instead of processing invoices and rent manually, which can waste a lot of your valuable time, you can automate the payment processes. Some of the property management tools you should leverage include:
Accounting software: Such software will come in handy for running payrolls, tracking revenue, generating financial reports, and managing expenses.
Property management software: Such software can help you in scheduling meetings, storing vital rental property information, organize billing, and more.
Maintenance management software: This type of software may come in handy to track renovations and schedule repairs.
Employ the Right People
Your employees are the lifeblood of your business. Therefore, it’s impossible to run a successful property management business if you don’t have the right employees. Additionally, you cannot do everything yourself. Some of the critical positions you may want to consider include:
- Resident manager
- Property manager
- Maintenance coordinator
- Office secretary
- Sales rep
- Payroll administrator
While these positions are essential, it doesn’t mean that they should all be filled at once. You can get started with two to three people and add more as your business grows.
Focus Your Attention on the Gen Z
The current tenant market is mostly made up of millennials. However, as a property manager, you should focus your attention on future shifts in the tenant area. According to CNBC, Gen Z is expected to grow to over 55 million within the next few years. Keep in mind that Gen Z has lived most of their lives using and learning through technology and the internet. Therefore, when they become a major part of the labor market, you will have to be well-prepared and equipped to meet all their technology needs. Therefore, you should focus on offering tech solutions, such as:
- Free Wi-Fi
- Keyless door entry
- Online payments
- Modern and high tech fitness areas
- Charging stations
- Fireplaces and outdoor heaters
The majority of millennials are tech-savvy, and they may not settle for traditional ways of doing business. Therefore, if you want to grow your property management business, start by upgrading the amenities.
Market Your Property Management Business
Today, most property management business owners are trying out new marketing strategies, and most of the strategies being used focus on digital marketing. Therefore, to market your business, you should first create a business website that includes all the information about who you are and the products and services you offer. Having a company website is especially important because it increases visibility, attracts new property management leads, and boosts your credibility. If you’re not a web designer, you can talk to a professional web developer to design a mobile-friendly website.
Apart from having a website, you can create social media accounts for your property management business. Consider creating accounts on platforms such as Facebook, Twitter, LinkedIn, and Instagram. You can post social media updates and use paid ads to help you reach more clients and tenants.
While property management quotes and funny memes are a good way to increase your visibility, you must remain professional when posting content on social media sites and create an image of a person that your followers and readers can work with. Keep in mind that everything you post online will represent your brand.
When thinking about the best way to market your business, you may also want to join the commerce local chamber. By doing so, you will create a wide network with prospects. As a member of your local chamber, you will also have access to some essential services at a discounted fee.
Green and intelligent buildings are the pathways for success in property management. This is a new trend that appeals to environmentally-friendly people. However, there are other benefits of going green; for instance, LEED-rated projects are more energy-efficient and have lower operational costs. Therefore, such properties will also attract cost-conscious people.
Conduct Regular Upgrades
As a property manager, you will need to keep up with the times and provide your clients with the latest features, especially commercial properties. Ideally, the upgrades should encompass all aspects of the space rented by your clients, from unique pantry features to modern alarm and surveillance systems. Potential tenants want a convenient place with all amenities they may need. Therefore, if your property can take care of most day-to-day hassles, you will attract more long-term tenants.
Explore Other Investment Opportunities for Your Clients
Apart from maintaining residential and commercial properties for your clients, you can also go the extra step of identifying investment properties for your clients. There are several tools that you can use to identify various types of rental properties for your clients. Some of these tools can even calculate the return on investment and help you locate properties that match your client’s property type and goals.
Investing in real estate is one of the best ways to generate passive income. However, if you want your property management business to flourish, you should apply the tips mentioned above. Always remember that a property management business can be very demanding, but it is also gratifying.
Michael launched Wealth of Geeks to make personal finance fun. He has worked in personal finance for over 20 years, helping families reduce taxes, increase their income, and save for retirement. Michael is passionate about personal finance, side hustles, and all things geeky.