Of course, if you want to operate a business that functions as a cash machine, don't just take on property management as your own solo task. Make it a true business. A winning team can manage far more properties than you ever could on your own and by collecting rents, HOA fees, and even handling grounds management and repair services, you can develop a steady stream of cash from landlords only too happy to get this work off their hands.
A typical business model for a property management service is to charge the landlord a percentage of the gross income from rents and other collected fees and another percentage for maintenance and repair tasks. If you're breaking into a high-competition area you may try to go as low as 10% but move your fees up as you develop a reputation and a client list.
As a property manager, there may be additional services you can offer which can relieve your clients of additional tasks they'd happily offload. For example, you could staff the rental office. Why stop there? When looking for residual Income business opportunities, leave no stone unturned. After all, you know who those clients are. Just make sure you have an agreement to advertise services to the renters with the landlords. As long as you have an agreement with the clients, consider offering services to the renters such as off site storage, or RV and boat parking.
As a property manager, you're in a great position to do business. Low over head gives you more room to maneuver so be creative and think to add value to all parties involved.
John_Le_Bleu
0 comments:
Post a Comment