Business Plan for Property Management

Part of my plan for generating Passive Income in Real Estate includes property management. But what kind of a property management business plan works? Well, I am going to give you the approach that could be utilized, as well as inform you of how I am going to proceed. I would love to get some feedback on this one guys, as I am still some what new to property management marketing. I am only managing 3 houses currently. The houses that I am managing currently are owned by friends of mine, which I guess is as good a reason as any to get going in a business. Here are the steps that I am taking / considering:

  • Continuing to Work Established Contacts
    A couple of friends from Church moved away, and recognized my abilities in real estate through the investments that I have currently made in the area. And with the added bonus of having a realtor license, they felt comfortable enough to use me as their property manager. Already, one has referred me to a friend of his to manage his house. Referrals are fantastic. Also, my real estate broker knows that I am going in to managing property, and she referred to someone who was considering selling his property management company. Unfortunately, he retracted the offer before I was able to act on it. Hopefully he will reconsider in the near future.
  • Putting Up a Property Management Website
    This is something I am considering, I may be able rank in the search engines for real estate queries in my specific local. Most of the realtors in my area do not know much (if anything) about the Internet. Many have websites, but I doubt they have much knowledge of Internet marketing. The Internet is very powerful, but here in a small town, I am just not sure how much people utilize the Internet in their search for rental / for sale properties.
  • Placing Some Signs Around Town
    This is a cheap and easy way to promote myself. I figure a few small signs around some of the major intersections may attract some attention. Who knows? Again, it is a small town, but maybe that is a good thing.
  • Utilizing Craig’s List
    Craig’s List is an unbelievable high traffic, free online classifieds anyone can use to push their business. Very easy, and you can upload 4 images per article. Craig’s List is localized, and thus, you can target your specific market, very good for a property management realtor.

These are just a few steps I know of that are available to me. But again, I haven’t been in this business long. If you have any suggestions, I would sure like to know what they are. Feel free to leave your comments at the bottom of the page, and stay tuned via my RSS feed for more great information on personal finance and real estate investing.

12 thoughts on “Business Plan for Property Management

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  5. Yeah I have to agree with you that referrals are really fantastic. Once they are referred to you, their trust on you is almost 70%. So you just show your professional in your presentation or works, then they will 100% pass the deal to you. This is why I think old customers and networks are very important for any kind of business.

  6. I think going the online route is one of the best bets, though local promotion is also very important. It’s great that we live in an age when literally anyone can build a website, even if they don’t have a big budget.

    Platforms like WordPress and others have truly made business management a democratic process, not something that only the rich, large businesses can go into.

    Thanks for the posts and sharing your methods.

  7. Dear Jeffry,
    I too am a licensed Realtor & recently had a position as a Property Manager for 25 apt complexes. All of them were based on income/LIHTC & Section 8/HUD…and so on. Anyhow I quickly realized that property management was a field that I want to make my career! I’m just in the beginning stages but unsure of the first steps I should take. My mother started her own Real Estate office in 2007 & is the broker, that being said; she has established many relations w/landlords in our community…and I’ve got the drive/desire to take charge of all aspects of PM and just wondering what advise you may have for me. I sure look forward to hearing how PM-Property Management is going for you!
    God Bless!
    Melissa G

    • Melissa – Thanks for writing in. It’s exciting to see folks write in who are having some success. You have the right idea, use your existing contacts to establish relationships in the community. One thing I will tell you, the real estate market has become highly dependent on the web, and having a quality website that draws traffic and leads is a must for any real estate professional. Trulia reports 82% of home buyers begin their search online, and most end up working with a real estate agent.

      We are almost finished developing a solution to meet this need, and if you are interested, I will let you know when we go live…

      Thanks – Jeffry

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