Full Time Property Management Company
Before the Corona Virus pandemic, rental property owners were making money hand over fist and it was fueling a demand for property management companies.
Rental properties and tenants have to be well managed, since poor management practices could ruin all of those profits. And the pandemic is pushing some property management businesses over the edge.
Yet amidst the turmoil of this pandemic crisis firestorm, are the seeds of opportunity for viable future businesses.
Those entrepreneurs who look forward to 2021 and the next 5 years, post Covid 19, visualize client needs, see how to improve service, and understand what the tech driven realm of property management will become, can get a step on the competition. Given the size and persistence of the rental market, rise of the service culture, new technology entering, it is ripe for new business ideas.
Earnings and Wages Rising
That’s resulted in salaries for competent property managers accelerating fast too, to an average earnings approaching $100,000 per annum in higher volume businesses. Obviously a lot of money is being funneled into the rental markets as well as the property management software sector too. The reward was there in 2019, and it will return after the pandemic period in 2021.
The emergency situation in New York for instance is demanding property managers with skills in rent collection, lease negotiation, and tenant acquisition skills. Longer term though, 2021, and beyond, automation in financial management, tenant management, and added services will take precedence.
Economic shockwaves create business opportunity. Right now, companies are reorganizing and upgrading to compete in this new rental property management ecosphere. With the right tools and attitude, you may be able to launch a successful startup for these exciting times ahead. Landlords are overwhelmed, and they will need help.
The Migration to New Property Management Software
A movement of old school property managers to high tech, automation tools is changing how property management is done. Any time there is big change or tech waves transforming industries, it’s an opportunity for new entrants to the market to fill the new need before old businesses can adjust.
That’s why starting a property management company now makes a lot of sense.
With the new proptech tools and a new style of management utilizing those tools, and lower profit margins, old school property managers are in serious trouble. They can’t deal with scaling up, creating a mobile business, and offering new digital services, etc.
New firms can handle more tenants, manage them better, and turn a better profit. As time passes, landlords and corporate owners are moving their portfolios to the modern property management businesses.
There is big money flowing into property management software and into property management businesses. As we arise from the pandemic period, some property management firms might be acquired by larger companies or investors. The market is in flux and this may be the right time to begin a new business either to build it long term or to be acquired for a quick profit.
What 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 disinfections, property inspection, rental advertising, suite showing, and of maintenance.
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, or Colorado. You need to understand how some are doing it wrong and some are setup to deliver the services desired in 2021.
The market for your property management services will change. So you want to begin with this insight before you create your business model to serve the apartment rental, house rental or multifamily rental market in your state.
Why is this the Right Time?
- rental property market is hot
- housing markets still have room to grow
- the US economy is growing
- multi-tenant dwelling construction is on the rise
- interest rates are still low
- interstate migration is high moving mostly to Texas, California, Florida
- new property management software helps managers handle more properties
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With rental market growth continuing, property managers are adopting work automation to get more accomplished efficiently. Adopting rental property software is the only way you can simplify property management, tame your workload and increase your property ROI. Old school paper and spreadsheets won’t work.
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. There are hundreds of software solutions serving this booming sector. Some are sluggish, demanding, heavy weight software products with complicated widgets, plugins, and knowledge requirements.
Large property management companies who have a large, trained support staff with huge overhead use those types of rental property solutions.
Such property management companies are typically stressed by the real life tenant and property demands and typically use old school management processes.
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.
Instead, letting the software automation take a prominent functional role while you provide solid human care, is a better way.
The key to good software is simplicity. Easy to learn and use applications will be enjoyed by you, your tenants, contractors and owner/investors.
Don’t underestimate how much your customer relations will improve with online property management software. And with all the friction and rework avoided, they’ll be relieved.
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’s 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 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.
In the end, your portfolio success depends not slolely on computers and widgets to learn, but rather on good communications and delivering the emotional value tenants actually want.
Go ahead and grow that portfolio because with an automated system of delivering satisfaction to tenants, investors and homeowners will want to hire you.
Take a FREE test drive of ManageCasa and review it for yourself. It could be the tool that allws you to go full time.
See also: Rental Property Software | Renters Insurance | 2021 Rental Housing Market | How to Reduce Tenant Turnover | Property Management Company | Growing Rental Investment Property Revenue | Rental Property Cash Flow | 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 | ManageCasa Rental Property Software Solution