The recent real estate “crisis” has caused a number of beneficial effects on the property management industry. There has never been a better time to consider starting a property management business than right now.
1. Houses are not selling, therefore homeowners that need to move and/or investors are forced to rent their units out; thus increasing the rental property supply chain.
2. Houses are foreclosing by homeowners and being bought by investors that in turn rent the property out. This increases the amount of supply as well.
3. The homeowners that were foreclosed upon will now be renters. Thus increasing the rental pool and increasing demand.
The above items create a perfect storm for the Property Management Business Industry. The purpose of my article is to present and discuss the 6 categories that are paramount in developing your property management business plan:
1. Executive Summary
2. General Company Description
3. Description of Services
4. Marketing Plan
5. Operational Plan
1. Executive Summary – Include everything that you would cover in a five-minute interview. Who are the owners, what is their experience in this industry? Explain the fundamentals of your business. What do you think the future holds for your business and your industry? Make it enthusiastic, professional, complete, and concise.
2. General Company Description – This includes your mission, vision and company commitments, Who is your target market (higher/lower end residential, multi-family, commercial), what price range of properties will you target, what area(s) will you target, who are the prospective tenants and what’s the future of your industry? Form of ownership, what factors will make the company succeed? What strengths do you personally bring to the business? Long term: What are your plans for the future of your business? Growth? If so, at what rate and how will you achieve it?
3. Description of Services – Describe in depth your property management service structure. What will you perform on a monthly basis for your property owners? What will be your monthly fee structure? What additional services will you offer such as evictions, project management, maintenance and what will your fee structure and profit center look like?
Much of your service offering will be developed by performing a complete competitive analysis. Your offering needs to be correctly place in the marketplace to make yourself unique. You should know your competitions monthly fee structure, how many properties they manage, number of managers, etc.
4. Marketing Plan – Bottom line: Your plan for how to attract clients. How will you get your company and offer in front of your prospective property owners. How will you utilize the following: (website, SEO (search engine optimization) plan, online marketing, signs, advertisements, associations, relationships, networking, direct mail campaigns, signs, yellow pages, calling for rent by owners, etc.)
By the way, there are methods that are much more effective than others for a start up real estate management company. Be sure to do your proper research before you unnecessarily spend money.
5. Operational Plan – Explain the daily operation of your business; (its location, equipment, people, processes, and surrounding environment.) If you are starting out opening your own prop mgt business, you will want to spend the majority of your free time in marketing techniques.
6. Budget and Financials – Includes your start up expenses, capital expenses and expected monthly recurring expenses. If you are starting out a your business with 0 properties as I did, you will want to start with a minimal budget in mind. Keep your costs as low as possible. What is your expected income based on your predicted growth rate?
Conclusion: Properly developing your property management business plan is the key to your success. Starting a property management business can be very rewarding, however not having the right direction and foresight from the beginning can blind you and your business. Remember; “Failing to properly plan is properly planning to fail.”
Daydreaming about starting an event management business? Maybe you have already worked in the events industry and think about working for yourself. Or perhaps your organized meetings in the past and feel it your life’s passion. Both are good reasons for acquiring the profession.
Starting an event management business is similar to starting a relationship – it’s required to possess appropriate skills and follow some important steps to achieve success.
Gain Event Management Skills and Experience
Scoring a success is based on event manager solid grasp, steady skills and experience:
Verbal and written communications
Organization and time management
Negotiation and budget management
Marketing, public relations and more
Determine Your Event Management Market
Let’s say you’ve been working in the event industry for many years, know all ins and outs and eager to coordinate all kinds of events, from weddings to festivals.
Stop. This is a common mistake many event managers do. First of all, people have different energy levels and different capabilities. And, one can’t be a master of all trades. Recognize that there are distinctive differences between corporate, association, nonprofit and social events. Determine your market accordingly. It’s much easier to concentrate on a certain domain and become a professional.
Develop a Business Plan
Someone once said, “If you fail to plan, you should plan to fail”. Like everything else, starting an event management business requires a business plan. There are a couple of resources that can help you. For example, U.S. Small Business Administration publishes materials about writing business plans. You can find more with Google!
Obtain Business Insurance
Business insurance is mandatory. Event management business should secure general liability and other forms of insurance to protect the business owner’s interests.
Several forms of insurance exist. Speak to an insurance adviser to learn the requirements.
Develop Network of Suppliers and Staffing Resources
Event managers usually work with a wide range of suppliers – communications consultant, stationery designer, promotional products distributor, party rental supplier, caterer, florist, photographer and more. You will also need the staffing resources for sales, marketing, accounting and administrative functions. It’ll be necessary to establish an infrastructure that will support your events from all sides.
Establish Your Fee Structure
You should be conscious of the various ways to cover expenses and make a reasonable profit. Most event planners’ charge is based on the following:
Percentage of expenses
Percentage of expenses plus hourly rate
Business Development and Marketing
With a prepared business plan, established fee structure and determined event manager market it’s time to begin working with marketing materials. Choose the right name for your business; create business cards, stationary, proposals, client agreements and a web-site.
Today, the wonders of globalization have taken great priority in all areas of life and even business choices. Property and rental management, relocation, acquisitions, renting and more have taken on great importance worldwide. The rise of rental and property management concept and a variety of professional degrees and certifications on the similar idea being presented by recognized universities and colleges has not shocked everyone. It’s being regarded as more of a requirement and innovative.
The mounting knowledge and the business possibility with regards to the idea of handling commercial, business and residential real estate by skilled professionals has guided the way to the development of a new kind of business regarded as the rental and property management business. This business is able to use the opportunities to an immense degree as an outcome of which they have developed. In due course, it covered the way for subsidiary businesses and by-products as well.
They serve various responsibilities on behalf of the property owner and the land lord. The majority of land lords favor the space from all the troubles of rent collection, management, maintenance, repairs and the improvements which are in time managed by the skilled professionals. Legal actions and other legal concerns are part of the whole management process as well. Property owners typically decide immediately before handing over the management and maintenance duties to the companies. Moreover, property accounts and finances are handled by management professionals as well.
The expert professionals in rental and property management are known to stick to procedures for success and achievement in this industry. They have made up the term “Land Lording” which they declared to completely understand. As they have implied, the complex liaison between the land lord and the tenant is legally required which they profess to be grateful about the way it should be and capable of expertly managing unwanted cases should they arise. Initially they track down vacant rental units and change them into occupied spaces by means of assertive and effective marketing.
Rental and property units are great on demand which is a spin-off of the developmental stage that the world is experiencing. So, rental and property management companies have emerged all over the world, providing efficient management services for their clients. You can find an extensive list of these companies on the Internet where you can also check the variety of management and maintenance services that they offer.
Property management is a challenging job that demands a real estate license and considerable experience. If you have plans to have a property and rental management business, you can work with a reputable company with a management expertise on real estate properties. Although professionally to acquire a license in managing properties, you’ll have to accomplish the academic demands to earn it.
Starting your own company demands comprehensive study regarding the existing participants in handling properties that can be the major competitors and problems for a beginner. Beginners can start over whether from new customers who have an open requirement of a property manager or changing today’s management company. Next will need a considerable deal of persuasion and convincing, as why the user should want you over their existing or favored management company.
Setting up your own website is another way to make your presence known. With internet marketing and global awareness, you’ll be able to reach prospective clients anywhere and anytime. Before establishing a website, you must first verify your professional company name and your business’ legal address.
To gain success in this business, knowledge and preparation are the standard requirements. The requirements where you reside should be inspected to watch, where permits are necessary. The excellent way to obtain all the important requirements and checklist is through a real estate organization or a membership to a local property managers association. These groups are indeed an ideal source to acquire the essential information you require.
You can check local classified ads and the Internet for property and rental management firms for sale or you can contact some business agents to obtain present business options. Real estate lawyers also have the knowledge with regards to effective management business and they may be interested for a joint partnership for an existing management business.
Your budget for a start up property and rental management business is a major consideration. To promote and bring a fast reliable stand to your business, a bank loan, an online business lender, a partner or family and friends. If the existing business provides long term contracts using their customers, it’s typically simpler to acquire a loan from a third party.
The firm’s broker might assist in negotiating and making a deal, which would be definitely respectable and provides you a respectable beginning with the profits. As soon as all the requirements are accomplished, the possession of a property and rental management firm is anticipated. The decision is yours to take, whether you acquire assistance one right up, purchase an existing business or start a new one.
This mini guide for real estate investors is written to help entrepreneurs like you with the mystery of property management career. The investment risks are higher when decisions are made without enough information. By now you know that you want to invest profitably in real estate or already started the process. All the motivation is coming from your desire for financial independence. I know that, because I am with you right on the very same goal.
Assume you have just purchased your investment property. It does not matter whether it is a 10–unit apartment building, a small office building or a single–family home. It is an attractive rental property and you are asking a fair market value rent.
You should have no problem attracting tenants and maintaining a high level of occupancy. What happens with the tenants once they move in is going to depend on you.
The problems with property management are not caused by the business itself, as much as by a lack of education. The property management is the most misunderstood parts of real estate investing. If you do not have good property management, then you will have high management costs, bad tenant relationships, high vacancies and that will be the end of your business.
You would consider these ideas in making your managing investment decision; I did it when I started:
The money you save, by doing property management, may mean the difference between a positive or a negative cash flow for your rental business.
Managing your own properties, at least in the beginning and learning the management business is something to consider. After you become familiar with the manager responsibilities and acquire more properties, you will be able to do a better job of managing professional managers.
More management and investment resources are available at my website.
How I start my property management? I went to school to gain my knowledge before facing the real life competition. I start my property management from the bottom up. My previous experience with real estate renting was being a good tenant for about five years in two different places.
Eight years ago I passed the real estate agent state examination and I worked for two brokers and managed properties on the side to build experience. I got my associate broker license in real estate about four years ago.
We resettled in the U. S. A. coming from communist collapsing East Europe, in 1990. Our assets at that time were intangible, mechanical engineering education and big hopes.
We did not have this game of “getting rich with properties” in the socialist economies. Actually, it was forbidden to even think about owning properties. It took me five years to comprehend there is a less risky way of investing by using real estate properties and rentals.
For $50 and about one hour conversation with our previous property manager — a very nice lady — I was in business. The management forms I received helped me to build my forms and gave me enough confidence before the closing on my first apartment building. I was on my way, investing in real estate and managing my own properties for profit. This is how I started my property management career. Now, I appreciate a property management career or a job in property management a lot more.
I am not preaching here to manage your rentals yourself forever. For us, property management is part of getting the necessary life experience to succeed in this new country.
Dealing with people and their needs gets messy if you do not use a system. Qualifying the potential applicant over the telephone saves time and money. Renting real estate is the toughest part of the property management job. Here is how my qualifying filter system is working:
The local newspaper classified ads bring most of my renting real estate applicants. I call them Potential Applicants (PA) before submitting the rental application. I give to potential applicants enough info in the newspaper, so they may drive by and talk with our tenants. The prospect applicant should come ready, wanting to rent the apartments from us, because we take good care of the tenants and the apartments.
This is what I want with my ads.
“My town, clean 1 bedroom apt. $500 plus deposit, utilities included, A/C, coin laundry available, 123 Main Street, (222) 333-4444”
They have the address for the location, that the utilities are free and my cell phone number. Here are examples of first conversations over the phone with the potential applicants (PA).
PA: Hello, is the apartment available? Me: Yes, when you want to move in? My name is Ernest. PA: Thanks, my name is Mary. It is for my son John; He is planning to move soon. Me: Sorry, is it a strong reason way your son can’t call himself?
(My experience tells me I may stop here and deal with the real party later, the relatives or friends have a different agenda sometime. In reality, I continue giving information about renting.)
The son is calling me later.
PA: Where is this apartment located?
Me: At the corner of Main and Grand, next to the gas station, across the Seven Eleven. Look for apartment no.30. You can drive by and get from “Take One” box, an application with info printed the other side. PA: Do you accept pets?
Me: What do you have in mind as pet? (Reptiles, rodents, dangerous dogs, etc are not on my list, I ask because the applicant will talk and I can mind his/her personality).
PA: It was my aunt’ cat and she is 10 years old, etc. Me: Yes, we accept a qualified cat with a “Pet agreement”. The no refundable fee is $175. Do you have some pay stubs from your job? That will help us to check your employment; or
PA: No, I receive social security checks, I am on disability.
(To assume when renting real estate that all tenants on assistance or seniors will be bad is wrong. Some may get a co-signer.)
Me: Sorry we only take applications if the total monthly documented net income is 3 times the rent. The no refundable application fee is only $20 and we do a credit report request and pay a different company for that service. (Some applicants just gives up after this phrase.); or
PA: Yes I work two jobs: manager at Mac Donald and telephone marketing at night. My girlfriend is working as telephone marketer. Together we make $1400 a month.
(This is a border line situation, they may pay for a few months and something is happening and girl/boy friend is gone. He/she no longer qualifies by income requirements. In this cases if the vacancy is hurting me and I cannot wait for a better applicant, I might take them, but the lease will have a clause: “If he or she intends to leave any time, they both must leave at the same time”); or:
PA: Yes, I work part-time at “Printing Nice” and I am full-time student. It is my fist time out of home; my mom may co-sign the lease.
Me: OK, bring your mom when you want to see the apartment.
PA: We want to see it, Saturday morning at 12 noon, it is our time to look for apartments.(PA may put some pressure on you)
Me: OK, see you then, at apartment no.30 second floor, a sign “For Rent” is in the window/door.
The potential applicant interview is very important. You have to see face to face the potential applicant and their pet. Watch their car how clean is outside and inside and get an idea about how much that person care about personal staff.
My “good tenant” definition is: A good tenant is paying always on time, takes care of apartment, is friendly and comprehends “quiet enjoyment” words.
Businesses and companies experience multiple problems. If they are able to solve these problems, then it leads to the improvement of their current state, thus attaining success. One of these problems is to manage business contacts. They find it very hard to sort through and manage the list of people that are relevant and important for their business. That is why different programs and softwares are developed to help businesses and companies cope with this perplexing problem. The most important thing to understand is that there are two different types of softwares: one that is downloaded as a computer program and another that is “in the cloud”. Now you may be asking yourself, “sounds great, but what the heck is the cloud?” and that’s a very good question. It basically means that you don’t need to install any software or have an IT technician help you connect it to any fancy servers or network your computers together. Everything, all of your business contacts, are managed online from a website. You simply login and can access your information from any device anywhere in the world at anytime. Let’s have a look at the importance of software for managing business contacts.
Easy Access to Your Contacts
Once you have a software to manage business contacts, it will be a lot more convenient for you to access the list of your contacts at anytime and even on the go. All the interactions you have made, such as phone calls and emails, will be clearly shown there. If you have been called surprisingly by a client and you weren’t able to notice, the necessary information about the client will be stored so that you can answer back with the relevant information (after pulling up their records to see what you last spoke about). The information and data contained in the phone calls and emails are also stored enabling you to better understand the subject matters.
Improved Customer Service
As you have instant access to all contact information, activities, feedbacks, and questions of customers, you will be able to respond faster, making your customers impressed by your efficiency. This can help your company to retain your current clients and also to gain more. You’ll surely see how software programs that manage business contacts improve the customer service of your company.
Save Time by Searching for Information
One of the reasons why you need to use software that manage business contacts is to become more efficient as well as organized. The software that you can use has various options and tools that can greatly help you organize information about clients, conversations with clients, activities in sales and marketing, and support for customers. Without a doubt, this will improve the overall productivity of your company’s daily routine and save you lots of time!
Since your company can manage business contacts with the use of software, you will be able to make customers satisfied and even exceed their needs. This will lead to the reduction of expenditures needed to promote customer satisfaction as well as the time it takes for your employees to check emails and find out more about each client.
Increased Number of Customers
When you manage business contacts of your company, you are becoming more efficient and productive at work, which make your customers highly satisfied. When your customers are enjoying your company’s services, they will tell this to a lot of people. Your company will then become an eminent one and will attract new customers while maintaining the others.
Manage Business Contacts Today!
It really is very advantageous for your company to use software programs that manage business contacts. You do not have to search through hundreds of business cards just to find a person. With just one click, you get all the necessary information. Of course, you are becoming more efficient with the utilization of such software, but most importantly you will become successful.
Learn how the use software programs to manage business contacts better and more efficient! You can also create tasks, to-do lists, events, and more!