The more you automate and simplify your operation, the more time you’ve got to grow. Growth could mean increasing the number of properties you manage or breaking into new sectors; either way, with an efficient and effective system running the day-to-day, it’s up to you how to use your extra time to build your empire.
I am a huge advocate of proptech. From digital keys and smart contracts to automated bookings and service requests, if there’s a job we can outsource to technology, we want to make that happen.
3. Pick your people and teams carefully.
It’s not only my time that’s important; I have the same attitude about my colleagues’. When it comes to my teams, I choose those with the same passion and energy as I have, and I wouldn’t get the best from them if I didn’t allow them the time to develop ideas they believe can improve our operation. And if I have a member of staff who doesn’t fit the role they’ve taken on, I find them one that does.
Your teams are your best asset, so pick them wisely.
What Skills Do Property Managers Need?
You’ll need to be calm under pressure, a great communicator, patient, forward-thinking, practical, and, as I said already, a born problem-solver.
You’ll need plenty of common and financial sense and be great at scheduling to maximize your time. Oh, and you must be incredibly motivated, with energy to spare.
Guidelines For Setting Up A Property Management Company
With my three personal tips out of the way, the second part of this piece will use more of a list-style format.
Here are the things you’ll be expected to do:
• Office space, rent, rates, payroll, etc.
• IT equipment: Computer and phone systems, essential software
• Tax, insurance, legal aspects, contracts—check whether you need licenses or certificates
• Marketing and advertising: Website, networking, finding clients, social media and content management, etc.
• Administration and accounting
• Recruiting a team
• Market research and analysis
• Deciding how you’ll charge for your service
• Building a business plan that caters for funding and financial projections
• Registering your business
Running A Property Management Business
There’s a lot more to running a business than just doing the job. I was fortunate enough to learn a lot of the skills I needed from those around me, and where that wasn’t an option, I attended courses and seminars. Short- and long-term education in your chosen area is a must, so taking classes and speaking to experts should be standard for as long as you’re in business.
Also, following the industry trends and the latest technology to stay ahead of competitors is essential. For example, I was hooked when Bitcoin/cryptocurrency first raised its head. From exploring crypto, I was drawn into how blockchain and NFTs were being used outside of their usual environments. This led me to consider how they would become a standard for smart contracts that streamline many real estate dealings.
Checklist:
• Choosing your preferred niche to operate in
• Finding and screening tenants
• Selecting the ideal accounting, organizational and property management software
• Onboarding new clients and properties
• Organizing property tours (virtual and automated)
• Automating smart contracts and digital signatures
• Collecting rent and paying your clients
• Handling requests, complaints, rent arrears, disputes and evictions
• Advertising properties and knowing which will be their ideal platform(s)
• Networking with suppliers and contractors
• Optimizing rent strategies to maximize income and ROI using AI
• Providing impeccable customer service, automating as many straightforward requests and demands as possible
• Developing contingency plans for emergencies
• Scheduling inspections, maintenance, upkeep, and repairs
• Compliance—whether property-specific, city or national legislation
By no means is this list comprehensive. For every item on it, there are a hundred rabbit holes you’ll go down. That’s why spending so much time understanding the industry and every detail of its operation is essential.
Final Thoughts: Do Your Due Diligence
There’s so much more to any business than we see on the surface. If you’re considering exploring property management, then you must do your due diligence to understand exactly what you’re getting into.
For those with the right skills and mindset, there could be a great career waiting for you with excellent opportunities for financial returns.
