The people over as Hostfully were nice enough to include my thoughts about the most important part of a property management business plan.
As you’ll see from their article, there’s a lot that goes into creating a good property management business plan as well as the overall real estate business plan for your company or investment portfolio.
But time after time I’ve seen new property managers overlook this key point when putting together their business plan.
Key Factor In A Property Management Business Plan
Here’s what I told Hostfully:
Jeff Rohde, author at JScottDigital.com says one of the most important things when developing your property management business plan is the focus on a “specific real estate asset class, and then ‘drill down’ to a specific sub-class.”
A residential example would be to decide if you’re doing for a single or multi-family homes. After that, narrow it down by price range, geographic area, and a number of units. A commercial example would be deciding on multi-tenant retail or office type of property. “After you chose that, focusing on the class of property (A, B or C), and the property size in terms of square footage.”
This is how you’d develop your niche, because, as Rohde puts it, “tenant personalities and issues, wants and needs, will be similar. Owner personalities and investment goals will be similar. And the skill set that the property manager develops will easily transfer to similar properties to manage.”
Getting Started In Real Estate Property Management
If you’re a new real estate agent or thinking about getting into real estate property management, consider going to work first for a firm that is already in the business.
It’s a good way to learn the ropes, so to speak, and to find out if property management is really what you want to do. You’ll also discover some of the key ways to spot a problem property owner.
If it is, you’ll be able to hit the ground running. Just remember, there are a lot of ways to make money in real estate property management!