8 Best Practices for Running Your Property Management Startup
Starting a property management business comes with its unique challenges and complexities. As you embark on this entrepreneurial journey, you ideally want to establish a strong foundation that positions you for long-term success.From doing thorough research to leveraging technology and prioritizing tenant experience, we explore eight best practices that will help you succeed even as a newbie in the property management industry.
1. Do Your Research
Starting your business without in-depth knowledge of your industry is like groping in the dark. Every successful property management startup should begin by conducting extensive research on its target market, services offered, pricing strategies, marketing efforts, and financial projections. The trends and findings from your research can serve as a roadmap guiding your decisions regarding how to market yourself, talk to clients, set rates, etc.
Pro Tip: Conduct thorough market research to identify opportunities, competition, and the specific needs of property owners in your target area.
2. Legal and Regulatory Compliance
Property management is a highly regulated industry. Ensure that you comply with all federal, state, and local laws and regulations governing property management. This includes understanding landlord-tenant laws, fair housing regulations, and licensing requirements.
Consult with legal experts or industry associations to ensure your compliance with all relevant regulations. If you want to build trust with clients and avoid costly legal troubles, you have to stay legally compliant.
3. Boost Efficiency Using Technology
Technology isn’t your competitor but your ally. Businesses today, including property management, can benefit tremendously from cloud-based software solutions. As a property manager, there are myriad property management solutions available to choose from. The top property management software can streamline and enhance various aspects of your business, from rent collection to maintenance and financial management.
This technology allows you to efficiently manage leases, track rent payments, and generate financial reports. It also provides an online platform for property owners and tenants to access information and communicate with you. In short, it can be an all-in-one solution.
There are also VR and AR solutions with which you can conduct remote house showings. In fact, if you’re not leveraging technology, you may have to manually carry out so many tasks that waste your time and leave you weary.
4. Effective Marketing
Marketing is how you attract property owners and tenants. Start by establishing an online presence with a user-friendly website and social media profiles. Utilize search engine optimization (SEO) techniques to ensure your business ranks well in online searches. When clients in your city look for property managers near them on Google, your website should come up.
Highlight your unique selling points, such as exceptional customer service, transparency, or specialized services, in your marketing efforts. Make your business appealing to property owners.
5. Provide Exceptional Customer Service
This one is a no-brainer: outstanding customer service is a cornerstone of any successful business. Building strong relationships with property owners and tenants is crucial for long-term success. If you want clients to recommend you to others, and for tenants to remain in the property, give them a stellar experience. Promptly addressing inquiries, concerns, and maintenance issues is how you achieve that.
Using property management software can be helpful here, as it streamlines communication and maintenance requests. Speaking of which…
6. Prioritize Prompt Maintenance and Repairs
Tenants want their maintenance requests to be addressed quickly, otherwise, they will leave your property and go hunting for another. You don’t want to have vacant apartments at all times, as that underscores tenant dissatisfaction with the property. So, honor their requests wisely.
Establish relationships with trusted contractors and service providers who can respond quickly to maintenance requests. It’s also helpful to conduct regular property inspections so you can identify and address issues proactively.
7. Let Your Accounting Be Transparent
Transparency in financial matters is crucial. Use property management software to maintain clear and accurate accounting records. Property owners should have easy access to financial statements, expense reports, and rent collections. If clients do not understand how you handle their money, they won’t trust you. And that’s bad for business. Consider providing property owners with a dedicated online portal to access financial data and reports at their convenience.
8. Use Scalable Systems
As a startup looking to grow in the future, plan for scalability from the beginning. That’s because as your property management startup grows, you’ll need systems and processes that can handle increased workloads. Invest in scalable software and automation tools to streamline operations and manage a growing portfolio of properties.
It’s worth reviewing and updating your processes regularly to ensure they remain efficient and adaptable as your business expands.
With these best practices at the back of your mind, you can build a reputable and successful property management business that provides exceptional service to property owners and tenants. Note that ongoing learning, adaptability, and a customer-centric approach will be key to your long-term success in the property management industry.