If you like to deal with administrative tasks and at best come from the real estate industry, you may have thought about starting a property management services. As a property manager, you are responsible for a wide variety of tasks. They commission craftsmen are at the tenants’ disposal for questions, compile utility bills and ensure that everything runs smoothly. Your customers include various property owners who do not want to worry about all this but prefer to commission an external service provider with the work. So far the theory. But how is the foundation of a property management in practice designed?
Building a property management services company: what requirements must be met?
Starting property management sounds unspectacular and as if there were only a few hurdles to overcome. But is it really like that? Does a prospective caretaker have to meet any requirements or provide some evidence before he can start his own business in this industry?
The job of the caretaker is not subject to licensing and can, therefore, be exercised by anyone. However, it is beneficial if you bring specific knowledge and other properties.
What this actually about reveals the following list:
- business knowledge
- technical knowledge
- rental law knowledge
- (general) real estate knowledge
- Experience in working with craftsmen
- communication skills
- an organized and structured way of working
- the sense of responsibility
- decision-making ability
As you can see, those who want to start a property management company must have a wealth of specialist knowledge and many qualities or abilities. Of course, you can learn a lot in the course of time, but you should not underestimate the challenge at the beginning of your self-employment under any circumstances. If you want to win numerous customers from the beginning, you should attract attention with professional and confident work and convince with technical expertise. Someone who has no idea of “Tuten und Blasen” will find it difficult to position themselves in the market.
Basically, it is advisable to acquire the appropriate specialist knowledge in training or study. The classic career path of a property manager often leads to the profession of a real estate agent or a related degree. In addition, you have the opportunity to attend a training course at the IHK in advance and thus, for example, become a “certified real estate specialist”. Although these qualifications are not a must, you will definitely be able to help them:
- They gain the required expertise and other skills
- You exude a professional appearance to the outside and gain the confidence of your customers faster
Found a property management services company: How much does it cost?
The good news right away: Anyone who plays with the idea of founding a property management company can look forward to extremely low investment costs. You will be able to do most of your work from the desk. Materials such as a PC or laptop, a telephone, writing utensils, printers and of course the table itself are therefore mandatory. However, you do not need any other special equipment or materials to handle your job as a property manager.
Another nice piece of information: It is quite legitimate to build your property management services in the home office. In the end, it will not matter to the tenants and property owners where you will do the administrative work. The only important thing is that you are reachable – and at best not only during the day but also in the evening.
Overall, it is quite realistic to start a property management services with start-up capital of € 1,000 – assuming you already have the most electronic devices. Once your business has established, you can gradually replace it with new ones.
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Sign up for business and start a property management services
But not only the investment costs are manageable, but also the start-up process itself. Any law does not impose any qualifications or conditions that must be demonstrated or fulfilled in order to establish a property management company. This means the bottom line: You just have to decide on a legal form and register a trade with the competent trade office. Afterward, you can start immediately.
Most property managers start their business as a sole proprietorship. This legal form is considered to be particularly unbureaucratic and requires no share capital. Their disadvantage, however, lies in the fact that in the case of failure of entrepreneur you have to be liable not only for professional but also for private property. If you want to avoid this problem, you should think about the establishment of a GmbH or UG (haftungsbeschränkt).
A good network as a basic requirement for property managers
As a caretaker, you can think of yourself as a kind of control center in which different strands converge. They are not only the most important link between tenants and real estate owners, but also a contact point for craftsmen, lawyers, building authorities and Co. This may seem frightening to one or the other, but just belongs to this profession.
In order to meet the various challenges, it is essential to building a good and comprehensive network as a property manager. Every contact you make during your career can help you in different situations. Therefore, nurse them intensively and do not be afraid to help yourself if it is appropriate.
When setting up a property management company, you should pay particular attention to contacts in these areas:
- Crafts (for example tilers, painters, roofers, plumbers, and carpenters)
- Lawyers (especially specialists in construction and tenancy law)
- Real estate Agents
- property owners
- Representatives of the tenants (tenants associations etc.)
Marketing and customer acquisition: You have these options as a property manager
The real estate industry is highly competitive. This is also noticed by caretakers every day. Nevertheless, in order to prevail against the competition, you should think about suitable marketing concepts, marketing strategies, and marketing techniques as soon as possible and initiate appropriate steps. The ultimate goal should always be: step out and become visible.
In order to be successful in marketing and to win new customers and fulfill the tank of these customer’s satisfaction, it makes sense to get a professional on board. For example, if you have a low budget for advertising, you can “let off steam” on social media. Above all, Facebook, Twitter, LinkedIn, and XING are suitable for your industry and offer various possibilities of self-marketing. But classic marketing channels such as trade fairs and magazines should not be ignored.
Read more: Impacts Of Social Media On Business
Ultimately, a balanced mix of different measures usually proves to be particularly promising. It’s best to try different options and track which will get you through to the most potential customers.
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