Becoming the owner of a property management franchise presents lucrative financial opportunities and quality-of-life benefits. In fact, the residential property management industry is booming these days because more U.S. households are renters than in the past 50 years at almost 37 percent. The property management industry is a $75 billion industry, and experts forecast that it will grow at a rate of 7.6 percent per year over the next few years. Furthermore, property management is a recession-proof business because people will always need a place to live, and when the economy is in a slowdown, more people opt to rent than buy.
If you like the idea of working for yourself in an industry that presents a reliable income stream, a property management franchise may be the ideal opportunity for you. Here are some aspects of the job and qualities to look for in a top notch property management franchise opportunity.
What do property management franchise owners do?
As the owner of a property management franchise, you get both the exciting and demanding responsibilities that any entrepreneur or owner of a business has, but you benefit from a tried-and-true business model vs. making a foray into an area that can be full of risk. Depending on your geographical area and the rent amounts for the properties you manage, you can make thousands of dollars per year for every unit you have under management.
Property management franchise owners handle the day-to-day aspects of running a property management company, but you get a built-in support that makes the process easier and will help you be more successful. Your responsibility will be to market the property, including networking and finding quality tenants. You’ll also handle rental paperwork and process rent and deposit payments. In addition, you’ll be responsible for property inspections, maintenance, and repairs. In the event a tenant breaks the rules of a lease, you’ll be responsible for evicting them and finding a new tenant.
Why is a property management franchise better than starting a company from scratch?
Operating an established property management franchise vs. starting a property management company from scratch has a variety of benefits – as long as you work with a high-quality franchise. Here are some of the benefits:
- You get training from seasoned experts.
- You have immediate access to all of the materials you need, from the legal aspects of being a property manager to rental agreements, rental payment processing systems, and more.
- You get tested marketing and advertising materials, such as ad creative, video scripts, social media content, signate, presentations, and more.
- You get the benefit of having an established brand right from the start vs. having to take the time to create a brand yourself and then building brand awareness in the marketplace as you simultaneously build your business.
What to Look for in a Top Notch Property Management Franchise
All property management franchises are not created equal. You want to work with the best company so you can increase your odds of success. Here’s what to look for in the best property management franchises:
- The franchisor is already running a successful business and has an established track record of success. A history of success is one of the best determining factors for future success. Intempus Property Management has been in business for over 15 years and has over $1.5 billion in assets under management. Quite simply, if you’re investing in a franchise, you need to know that the franchisor knows what they’re doing, and nothing beats joining an organization that is already successful and is focused on scaling that success.
- The franchisor has a great reputation in the marketplace. A stellar reputation in any industry takes a long time to build. Evidence of a firm’s reputation can be found in both online consumer reviews as well as assessments conducted by independent, third-party rating services. For example, Intempus has been reviewed by the independent review service Three Best Rated, which assesses businesses using a comprehensive 50-point inspection process. Intempus Property Management was named one of the top three property management services based on a wide variety of factors, including availability to clients, range of services offered, and value provided for the fees charged.
- The franchisor has name recognition. With a track record of success and a strong reputation in the industry, the franchisor should already have a strong brand and name recognition. This is a big reason for getting a franchise in the first place. When the franchisor has an existing strong brand, your job as the franchisee is much easier.
- You get a high ROI on the franchise fees charged. When it comes to the costs associated with buying and running a property management franchise, you want to focus on ROI vs. looking for the low-cost leader. Just because one property management franchisor charges lower fees doesn’t mean you’ll come with high profits.
It’s important to make a full assessment of the opportunity, including all associated costs and the potential upside. A high-quality firm will be transparent about all fees and the other costs associated with running the franchise. Afterall, they’ll view you as a business partner and will want you to be successful vs. just raking in the fees.
- The franchisor provides everything you need to be successful. When choosing one property management franchise opportunity over another, it’s critical that you have the confidence that the franchisor is going to provide you with everything you need to be successful. After all, this is a business partnership and you need to know that your partner fully has your back. Working with partners that you like and respect and who will do everything within their power to help you be successful is key to selecting the right property management franchise opportunity.