As a property manager, expanding your operations doesn’t just involve setting up shop in a new location with the hopes of finding clients through your extensive business network. It takes more than that to leap from one to multiple locations successfully. There’s a lot to consider besides rent collection when it’s time to think about property management. The duties and responsibilities of a property manager are vast. When you’re interested in expanding your agency, you need time to plan for growth. Here, we’ll discuss six crucial steps to grow your property management business to multiple locations.
Develop An Expansion Plan
This step involves three main methods including:
- Bring on new owners
You can decide to bring on new owners from other locations to help control your growth as you slowly add properties. Doing so allows you to assess your expansion success.
- Buy another property management company
There could be various professional proper
- Set up your company as a franchise
This method involves bringing on other owners to manage their areas under your brand. You would have to adopt a franchise model to help your business expand without being physically detained to one location. However, you should expect to change your entire business model as you’d have to invest in a franchise one. If this is your preferred method, you can register with the Federal Trade Commission and set up your franchise model to start its operations.
Research Your Target Locations
You have to research the best locations for expansion and the right people to bring into your property management business. You need to know where your target market can be found and the laws and regulations you must follow. Never assume that you can apply the same management rules in all your targeted areas because the laws differ between locations with diversity in demographics and cultures.
Familiarize Yourself With Local And State Regulations
Local and state regulations differ, and if your targeted properties are outside your current area of operation, don’t expect to use the same management techniques. Without a clear understanding of the regulations, your operations might violate the laws leading to the plan’s failure. Examples of such laws and regulations include property taxes, zoning laws, tenant screening, occupancy laws, and property maintenance and safety issues. It would be wise to work with an experienced attorney who is well-versed in the area’s ordinances.
Assess The Need To Expand
Before deciding how and where to expand your property management business, assess the company’s needs to grow. Try to figure out what would be required and identify gaps within your business that must be filled to ensure the expansion’s success. During the assessment, you must pay close attention to your staff and infrastructure. This would help you know the various departments requiring more staffing when adding new properties and the type of equipment and software needed to handle the job.
Know Your Budget
The goal of such an expansion is to maintain or reduce your operating margins to keep making profits. The cost of growth should never outweigh the benefits that are expected out of it. Therefore, you need to account for every expected cost, such as regional and operational taxes, staffing, and equipment costs.
Monitor The Expansion Regularly
Be sure to assess the progress of your new and old properties. You can talk to your staff, clients, and the residents of these properties to ensure all their needs are satisfied. You might even have to cut off any of your owners who seem burdened by the responsibilities.
Have A Stopping Point
Always have a limit to which you can consider your growth successful. Without this stopping point, your business might grow beyond your expectations or plans leading to problems such as unaccounted costs.
Stick To Your Plan
Expanding your property management business may seem like a luxurious and straightforward investment. Still, it carries risks, especially if the plan isn’t adhered to. If you own property and wonder how you can manage it effectively, get in touch with myHomeSpot today for their services.