If you are looking for a business venture which requires minimum educational qualification or experience and can be easily started with the least investment, then the property management business from home is the best option for you. The basic responsibility in this business is to manage the different requirements of your clients like contractors, landlords and tenants.
To operate the business in a profitable way, you need to have an interest in the Real Estate and know or learn about the local laws related to landlords and tenants. There is virtually no or very least requirement of capital investment; however, there is a need for a lot of hard work. So if you are still interested in this business, this article will provide you with the details about the same.
Job Responsibility in a Property Management Business from Home
An owner can also be a property manager; however, they prefer to hire others to do the job to avoid the different responsibilities or to get the service of a professional property management company. The basic responsibility of a property manager is to take care of and manage real estate properties and building of an individual or a group of clients.
The basic responsibility of a property manager includes: –
- Take care of the vacant property like maintenance and servicing and keep it in good condition,
- Connect owners of the properties to the renters.
- Market the vacant properties and showing them to the interested people for purchasing or renting.
- Completing all kind of legal formalities like rent or lease agreements, collecting rent in the due time, conducting a proper inspection during the move in or out.
- Respond quickly to the needs of the clients like the property owner or the tenants for any kind of emergency maintenance and others.
You need to provide a 24/7 service as the leakage of the pipes or any kind of emergency situation may arise at any point of time. So, you need to be ready to provide your services at any point of time as asked by the clients.
For Whom the Business is Suitable For?
As mentioned earlier, this business doesn’t require a huge investment or high experience in the field. Neither do you need specialized skills. However, having an experience or knowledge in the real estate will be helpful.
The required capital to start a property management business from home is also very low. A minimum investment will suffice the need to set up your office and for taking the required legal permissions. You may need some money for the marketing of the business.
The most critical part of the business is the time of the work. You need to be available 24/7 for any kind of emergency situation. Along with this, you will also need to interact with different types of people on a daily basis. Thus, you need to have skills in handling people and should be very polite in nature.
How the Property Management Business from Home Makes Money?
The property owners and the real estate investors who own rental properties are the actual clients in this business. Your client may have a single property or different others. Thus, they will pay you for your rendered services.
Below are the different ways through which you can make money in this business: –
You can charge a percentage of the rental income through the property under your management.
Fixed Contract Fees: –
You can also provide services on a fixed fee contract. Under this, even if there is no need for maintenance or servicing or any other jobs, the property owner needs to pay a fixed fee to the property manager.
Base Rent Guarantee Contracts: –
Under this, the property owner accepts a base rent for the provided tenants by the property manager. These base rents are usually lower than the market rate. Thus, you can earn the different of the rent as your fees. So, if you have provided 20 different tenant services, you can get the excess rent as your monthly fees.
Revenue Sharing: –
This type of contracts is usually made for commercial properties. In this contract type, the property manager pays a share of profit from the property instead of paying rent of the same.
Hybrid Agreements: –
In this, the property managers may include both fixed base rent and revenue sharing options to the property owner.
Thus, you need to select the type of contact as per your convenience. However, the basic hurdle in this business is the get and attracts clients. Networking is the best and the most effective way to build a client base. Create your own website and use social media to market your property management business from home.