Getting started with property management

Property managers play a vital role in the Australian real estate industry by connecting renters with properties and managing the day-to-day tasks for property investors.

As a business, property management is the real workhorse of most real estate agencies, providing consistent cash flow throughout all the different ups and downs of the property cycle. Getting started in property management can take some time, but there are a few things you can do to establish yourself quickly.

Get Licensed

To work in real estate you are required to have the correct certifications and licenses. These can generally be obtained through the various industry bodies in each state. There are often different requirements to work for a licensed agency as well as starting your own property management business but be sure to check with your state’s industry body.

Understand Your Value

For a property owner, the choice of using a property manager or managing a property by themselves is important when it comes to understanding your value proposition.

Typically, property managers take care of a number of problems that many property owners don’t want to deal with like dealing with problem tenants, collecting rent, sorting out late rent and handling any legal issues that might come about.

This is on top of the other requirements such as inspections and maintenance. Another key point of difference is being able to screen and identify high-quality tenants. A good tenant makes life easier for the property manager and the owner and the more work you are able to put in upfront the better life will be for all involved. Be sure that you are able to offer a good value proposition to your owners so they understand why they might want to work with you and not manage a property by themselves.

Understand Your Local Area

Just like in the sales side of things, being an area expert also has benefits in the rental market. One of the key roles of the property manager is in attracting the right tenant and pricing properties correctly to both entice good tenants while still maximising returns is essential.

If you’ve been able to build up a database of both prospective tenants and properties, there are also options to quickly fill vacancies. Similarly, it is easier to find trades to help deal with maintenance issues.

The added benefit of being an area expert as this can also help translate into more sales when investors choose to sell their properties. In addition to understanding your area, it’s also important to understand your client base, whether or not they lie within your locality.

Market Yourself

If you’ve got a point of difference it’s important to make that known in your marketing. Property management can be a tough business that tends to turn over a lot of staff. If you’re experienced and prepared to work hard for your landlords while being fair and transparent with tenants this can quickly set you apart.

Build Relationships

One of the best ways to grow a property management business is through building relationships. A great way to do this is by adding a personalized touch in your work. We know that real estate by and large is a relationship business, but this can sometimes be lost on the management side of things.

Always look to reach out to other businesses that offer complimentary services such as mortgage brokers or builders, who might be able to help refer business to you. In return, you can refer work their way as well when the time comes.

Outsource

Once you’ve got yourself established, it’s important to start removing yourself from as much of the work as possible to give yourself more time. You can do this by outsourcing jobs like property inspections, hiring an assistant to help with opens or through leveraging technology to make day-to-day tasks easier and more efficient.