Secrets of Success: 4 Tips for Running a Successful Property Management Business
The great thing about starting a property management business is you don’t need to invest a lot of money, have any special education, or experience. Property management revolves around managing properties for different stakeholders, including unit owners, landlords, contractors, and insurance providers among others.
Although you don’t need much capital to start and run a property management business, there is a lot of work that you have to do to successfully operate your business. Here are four tips on how to run a successful property management business.
Know the law
You need to be familiar with the rental and real estate laws from the beginning. All stakeholders, including tenants, expect that you have legal answers to the issues they may face – from settling disputes to maintenance repairs and how to break a lease. Therefore, it is crucial that you acquire information about eviction notices and tenancy agreements. Additionally, avoid working with unlicensed contractors, especially for plumbing and electrical work. You may be held liable by an insurance company in case of an accident.
Build a good team
You will not be able to manage all your clients without the right team in your corner. Although there are different property management software that will minimize the number of people you hire, there are essential members of staff that you will need for your business to run smoothly:
Accountant: You should hire an accountant specializing in real estate to take care of the business’s books, offer tax forms, track your income and expenses, and provide you with sound business advice.
Contractors: It’s crucial that you work with experienced contractors. This includes termite and pest control, landscaping, locksmiths, HVAC, home inspectors, roof inspectors, plumbers, and electricians, among others.
Real estate lawyer: Your real estate attorney will protect you and your business from legal risks. They’ll also provide you with relevant business advice about your fiduciary duty and help you by protecting your assets and limiting liability.
Take care of maintenance
The appearance of the properties you manage is a reflection of your ability as a property manager. Additionally, prospective clients will use your projects as a reference for your quality. Therefore, if you maintain the properties you manage properly, you can expect potential clients to entrust you with their properties.
Ensure that all common areas of the properties you manage are in mint conditions through timely repair and maintenance. This means conducting regular inspections, sticking to maintenance schedules, working with talented contractors, and getting EICRs (electrical installation condition reports) for all your properties.
Screen all tenants
When filling vacant units, you need to screen tenants thoroughly. Don’t rush to fill a vacant unit without doing your due diligence. The wrong tenant can cost you valuable time and money down the road. You should do a background check on all tenants and only issue a lease agreement after getting the all-clear.
The property management business is very lucrative, as most property owners don’t have the time to manage all daily operations. Therefore, if you’re passionate about property management and you are prepared to put in the hard work, then your property management business will thrive. Be sure to make all properties appealing through regular inspections and maintenance. That way, you will be sure that you’re attracting the right tenants and keep all stakeholders happy.