A Property Management Company Startup?
Before the Corona Virus pandemic, rental property owners were making money hand over fist and it was fueling a demand for property management companies.
Heading into 2024, the challenge is a little different. As rent yields begin to erode, landlords will be looking for their property managers to manage expertly to keep their business healthy.
Property managers themselves are pressured by a lack of talented staff (our poll results), regulations, rising costs, and old-school business management processes.
To solve these challenges, property management software developers have provided the right solution — subscribable digital services that make management a breeze. And the digital platform ensures efficiency by requiring all parties to work cooperatively within the system.
Current property management companies have legacy issues that hurt their profitability going forward. New startups don’t have that drag. They start out fresh to leverage the full business power of the next-generation solutions to manage current assets and to rollout new revenue-generating services. Less cost plus potential revenue growth is inviting for real estate investors.
Earnings and Wages Rising
There still is awesome revenue potential in rental management. It’s not an easy business however, and having the right digital tools today makes all the difference. Yes, there’s more needed such as capturing landlord leads, mastering tenant acquisition, managing budgets expertly, and conducting maintenance like a pro.
The potential of it plus the skill needed has resulted in salaries for competent property managers accelerating fast to an average earnings approaching $100,000 per annum in higher volume businesses.
Property managers with skills in marketing, lease negotiation, and tenant acquisition skills will excel. Longer-term though, in 2023 and beyond, automation in financial management, tenant management, and added services will take precedence.
Those entrepreneurs who leverage automation technology hosted on the cloud will enjoy a big advantage. Older property management firms are slow to evolve to these systems, leaving ripe opportunities for progressive start ups.
With the right tools and attitude, you may be able to launch a successful startup for these exciting times ahead. Landlords are overwhelmed, even with digital solutions, and they will need to adopt the right business model, hire the right staff, and communicate effectively.
Good communication and analytics/reporting tools and you’ll be able to find what’s not working and fix it. Landlords want that kind of positive, proactive manager for their properties.
Which Services are Property Management Firms delivering right now?
- rent collections
- property maintenance
- financial management
- legal insight
- tenant management and communications
The above services are in demand now, however within one year, the services property management companies are expected to help with are tech adoption, touchless technology, property inspection, rental advertising, suite showing, and maintenance management of course.
There will be a lot on your plate, which is why you must evolve to the new modern platforms.
To set up a property management company that beats the competition, you must review how property managers accepting rental applications, screen tenants, managing paperwork, communicating to residents and owners, and accepting payments. You must find a better way to do everything.
Check out some property management companies located in the Bay Area, Florida, Arizona, Southern California, Illinois, South Carolina, Colorado or in Australia. You need to understand how some are doing it wrong and how other digitally enabled managers are setup to deliver the services desired in 2021.
The market for your property management services will change and it should be factored into your business model.
Why is this the Right Time?
- rental property market is hot
- house rental rent prices rising fast
- inner city apartments priced low and will return after the pandemic
- housing markets still have room to grow
- the US economy is growing
- multi-tenant dwelling construction was strong
- interest rates are still low
- interstate migration is high moving mostly to Texas, North Carolina, Utah, Arizona, Florida
- new property management software helps managers handle more properties
See our Step by Step Guide to Starting Your Property Management Business
Choosing the Right Property Management Solution
You’ll also need to find a good starter residential property management software. You can compare solutions available. There are hundreds of software solutions serving this booming sector. Some are sluggish, demanding, heavyweight software products with complicated widgets, plugins, and knowledge requirements.
Large property management companies who have a broad array of general support staff with huge overhead use those types of rental property management solutions.
The result is a heavy workload involving face to face meetings/interactions with tenants, owners and contractors as well as contractor work orders. It’s advisable to adopt a modern approach to property management.
“I feel more organized than ever. With ManageCasa I’m able to oversee the 8 multi-unit buildings from a single dashboard. Tasks that used to take forever are now a breeze.” — Mike Green, ManageCasa customer.
Build a Successful Business on a Powerful Business Foundation
Allowing software automation to take a prominent functional role while you provide solid human care, is a better way.
With work minimized on an individual property or tenant basis, you can add many new properties. If it cuts your workload by 75%, you can then triple your current number of properties. A tripling of properties revenue also means your cost per account drops.
Of course, there are some catches. You may have to reside in the country and state you are managing, and you may need licensing, an office, and work experience. If you don’t have that, you may need to hire or partner with someone in that state (or country) who does.
People are Still the Focus in Property Management
Great property management is about people, emotion, satisfaction, comfort, and other simple benefits tenants demand.
People don’t necessarily want to buy homes. What they’re really after is comfort, security, and a feeling they’re living a good life. Renting is a suitable and reasonable choice. And happy tenants are a breeze to communicate with and manage. These tenants pay on time and don’t wreck the place.
And that’s what property owners want.
Manage better with a modern automated solution which gives you more time to focus core business needs.
Contact us now at 415.800.1245 to discuss your current challenges and how could help.
See also: Property Management Software | Best Property Management Software | Software | Renters Insurance | Rental Housing Market | How to Reduce Tenant Turnover | Property Management Company | Accounting Software | Property Management Scams | Tax Tips for Rental Property Managers | Rental Property Portfolio Tips | Starting a Property Management Business | Property Management Tenant Screening | Should I Use Property Software