RENTAL PROPERTY MANAGEMENT – MEETING A HOUSING MARKET NEED
Approximately 60 percent of homes in the housing market are occupied by homeowners. While real estate brokerage firms remain dependable to buy and sell homes, profit increases when they expand their business to include property management services for owner clients with renters in their respective properties. There is always a demand for rental property. Real estate firms expand by serving the other 40 percent of renter homes in the housing market.
BENEFITS TO REAL ESTATE COMPANIES INCORPORATING PROPERTY MANAGEMENT SERVICES
Continual profit remains the goal of any successful company. As rental property remains a constant market need, real estate brokerage firms incorporating rental property management into their business helps to cover additional overhead expenses.
Networking with rental property owners helps to establish new business contacts and increase company recognition. Networking takes time to grow. As new business relationships gradually develop over time, real estate firms become recognized in the housing industry as professional agents who also serve the needs of rental property owners.
Real estate owners who incorporate property management services grow their business platform to the potential of reaching 100 percent of the housing market in their communities. As new relationships succeed between the real estate business and rental property owners, clients entrust more properties helping to contribute to the overall success and expansion of the company business.
HOW TO ADD PROPERTY MANAGEMENT SERVICES TO YOUR REAL ESTATE BUSINESS
1) Go through your contact list of clients who purchased rental property through your business. Contact them and make them aware your business now provides property management services.
2) Start by adding only a few accounts. Allow time for your staff to learn, and have your bookkeeper keep a separate account for rental property owners.
3) Set fees for your new properties. Some management companies assess a start-up base fee of one month’s rent and charge 10 percent of all rent and fees collected. For larger clients exceeding 20 units, consider a starting percentage uniform base rate, and charge a standard fee of 10 percent on all rent and fees collected.
4) Experiment with several property management software programs. Update your systems management to the program software that works best for you.
5) Hire staff when needed. Include an accountant familiar with your accounts receivable program. Seek legal advice regarding the new changes to your business.