Start-Over Success Business Under $5,000:
Property Manager
If you love real estate, get along well with people, and love the idea of helping investors as a Property Manager, this is for you.
Property Management is not easy work. Tenants can be difficult, especially when they are upset by a garbage disposal that doesn’t work. Workmen need oversight. And property owners need hand-holding.
Property management a leadership position, where you get everyone doing what they should, while keeping profits in mind.
As the owner of a property management company, you add to your business task list both administrative and marketing tasks.
But, along the way, you’ll not only build great income but also a business you can sell or pass on as legacy wealth.
Don't Just Grow Your Business, Be Profitable From Day 1
According to Salary.com, the average salary in 2023 for a property manager in California is $119,950.
100 properties renting for $1,000, management fees 10% = $10,000.
If 100% of your income is from management fees, and they include everything you do, you’re leaving money on the table
Ancillary Business Services:
- Leasing Fees
- Leasing renewal fees
- Eviction fee
- Maintenance Oversight
- Ex-tenant collections
- Rent Processing Fee
- Marketing & Advertising
GROW TO 100+ UNITS ASAP. Until then, profits will be tough. Next step: Grow to 500 Units for significant profits.
Growth takes great property management, business process, and marketing.
Marc Cunningham, PM Build, YouTube
What Does it Take to Become a Property Manager?
- CHECK YOUR STATE’S REQUIREMENT FOR LICENSES AND EDUCATION. REQUIREMENT.
– Fees for classes and registration. ($400)
– Annual class requirements. ($100)
– Business license ($40), DBA ($20)
– It’s a good idea to form an LLC ($300/annual) or Corp ($400)
– Choose your company name; get a business bank account
– Property Management insurances - Write a business plan, including market analysis, financial plans, and more. (This clarifies your thinking and plans)
- Choose your Property Management niche:
– Single-Family Residential
– Multi-Family Residential
– Homeowners’ Associations
– Commercial Properties - What services will your Property Management Company offer?
- Software to streamline your processes ($195/mo)
SubTotal to start $1,255
Software for Professional Processes
Software help to streamline your processes
1. Customer Relationship Management (CRM) system ($40/mo): A CRM system helps you record important details. Choose one that allows you to save signed documents and maintenance requests. 2. Document signing ($15/mo): To electronically sign leases and other documents.
3. Financial management ($30/mo): Track rental income, invoice customers, and create financial reports.
4. Rent collection ($60/mo): Allow your tenants to pay online and reduce your trips to the bank.
5. Tenant screening ($50/mo): Software to conduct tenant credit and background checks.
(Yardi or RentManager all-inclusive software ($1 per unit/mo)
Approximate Totals Per Month: $195
How to Get Clients for Your Property Management Company? PART 1
Position Yourself and Your Property Management Company as a leader in your community. Yours is a local business, so community involvement and personal networking are key. Set yourself apart from – and above – other management companies.
OUTBOUND MARKETING/NETWORKING – PART 1
– Join the Chamber of Commerce ($400/annual)
– Join charitable groups, Rotary or Kiwanis ($500/annual).
– Attend a networking meeting each week. ($200/mo)
– Attend realtor events ($40/mo)
– Sponsor school & local events ($200/mo) for visibility and to position your company as the one that cares.
– Local newspaper ads ($100/mo), not that they will work, but to show community support.
– Give talks for local group meetings
– Make friends with local media (radio and tv) and be available for interviews on community topics.
Sub-Total Annual $900
Monthly $540 Sub-Total $1,440
How to Get Clients for Your Property Management Company? PART 2
INBOUND MARKETING – PART 2
Website ($3/mo BlueHost, includes Domain name)
Domain name
Theme ($0)
Content Marketing, articles
Images ($0 from Pixabay, Pexels, UnSplash)
SEO – local SEO
Google My Business (optimize)
Social Media Marketing – optional
YouTube Videos, repurpose articles
Email marketing ($0 – $15/mo)
SubTotal $18, if you DIY marketing
TOTAL MARKETING $1,178/mo, SOFTWARE $195/mo
START-UP COSTS $2,155, including Chamber & Charitable
Plus Marketing & software 1st month $1,913
TOTAL START-UP $4,068
Why Should Property Owners Choose Your Property Management Company?
You make it your business to save the landlord money while decreasing possible headaches. Show you understand the investor’s needs and how you will deliver.
- Decrease Liability: As a property manager, you can deflect many of the false claims a tenant may make against a property owner.
- Quality Tenants: Your property management ompany can help get better tenants, which is great news for landlords. The better the tenant, the better the experience will be for owners.
- Shorter Vacancies: You work to fill vacancies with a sense of urgency and efficiency. This directly affects owner profits.
- Lower Maintenance Costs: You maintain a network of trustworthy, effective contractors. Not only that, when a tenant makes a maintenance request, you can troubleshoot and maybe avoid the cost of the contractor.
- Better Reviews: One of the most important things to tenants is maintenance needs taken care of in a timely manner. This leads to good reviews and renter retention.
Pros & Cons of a Property Management Business
As Engelo Rumora says, “Thinking about starting a property management company? Make sure you know what you’re getting into because it’s definitely not all roses and cupcakes.”
It can take 2 or 3 years of hard work to get to build significant income.
What made you think of Property Management as an option for you? Have you considered alternative business models, in the real estate industry, or elsewhere? For example, I was impressed by the Real Estate Appraisal business idea. They are said to have respectable income and a very high work-life balance.
Engelo Rumora, Real Estate Dingo
What's Next For You?
You’ve built your Property Management Company with great service for your investors, tenants, and vendors. You’ve built relationships with real estate people and others as referral and cross-marketing partners. You’ve helped the landlords you work with make more money and you’ve done well financially, too.
Now what? Because of being in the real estate industry and with all the networking you’ve done, you’ve had a first-hand look at lots of real estate opportunities.
Is it time for you to become a serious investor? Or are you ready to sell your business and cash in on the $Millions in equity you’ve created?
