What’s the aim of any business? To grow. No matter what industry you’re in, you want to grow and find other ways to meet your goals and bring in a higher income. This is the same for any property management business, and one of the ways you can grow one of these is by expanding it to multiple locations - either national or international.
A property management business in one location only has so much potential, as there are only so many properties you can look after. However, when you move to other areas, you have the potential to bring on new clients and more revenue.
But how are you able to do this? We have the answers for you.
Create an expansion plan
Before you start growing your property management business to multiple locations, you need to create an expansion plan. This includes a few things you can do:
Find new owners to introduce yourself to
You can’t have a property management business in a new area with no properties to manage. That’s why one of the first things in an expansion plan is finding new owners in the area who you can approach and start pitching to.
When you’re putting together your plan, it is a good idea to write a list of potential clients and get in touch with them either in person, over the phone, or online. Ensure you have a compelling pitch that is full of your successes as a business and sell, sell, sell.
Buy a management company
While you already have your original property management company, it may be time to purchase another one to help you grow. It can sometimes take work to bring an entirely new business into a different area, so you should look for other management companies that are known in the area and are looking to sell.
Before you purchase the business, be sure you’ve checked that the company has a good reputation, as it may take a while to try to build it up again. You’ll also want to ensure it has a good standing with the IRS and it makes a reasonable income each year.
Start a franchise
If you don’t want to spend money on purchasing another property rental company, you can put in the extra work and try to franchise the business you already have. The best way to do this is to look for expert property managers in the areas you’re looking to expand and try to get them to join your brand.
When you have a talented team by your side, they can put in a lot of the work to help get you where you want to be. They will most likely already have connections with property owners in the area, and they should be able to help you build up a client list in no time.
Gather information about the target areas
When you know how you want to expand your business, it’s time to look at the areas you want to move into. Property markets can vary drastically from location to location, so you’ll want to put your research in to ensure you are bringing your business somewhere where the market is strong, and you’ll be able to succeed.
States also have different regulations regarding owning and renting properties, so you’ll want to have all the relevant information in case you decide to expand to that area. This can include things such as property taxes, zoning, contracts, and occupancy laws.
Work out what an expansion will require for your company
You can’t be in multiple places at the same time, so you will need to find staff to work for you in the different locations you’re expanding to. Some of your current staff may be willing to relocate to help train new employees, but you will probably want to look for staff with expertise in the industry.
How will you manage the properties, and what sort of software and equipment are you using? With even more properties to look after, it can be difficult to stay on top of them all. However, with the help of Hospiria and our property rental management software, you can keep everything under control at all times.
Set a budget and assess
Expanding a business isn’t free; you need to spend some money to make even more money. However, you will need to figure out how much you’re willing to spend. Look at how well your business is currently doing and see how much you can dip into those profits without hurting the overall revenue too much.
When your budget is in place, don’t just leave it there. You will need to go back and look at it every now and again to see if it still matches your goals. From there, you can adjust it to fit in with your current vision and help ensure success.
Know when to stop
Expanding is great for helping your property management business grow, but it can be addictive and not always necessary. You don’t need to have an office or clients in every state or country in the world. Instead, you need to learn where you need to stop and keep your business there until you are sure you can start expanding again.
Put a benchmark in place for how many properties or markets you want to manage. It will ensure you don’t overspend and that you actually bring in excess income rather than falling behind.
Property management is a lucrative business with many opportunities for them to expand in multiple markets. Doing this can help you achieve all the goals you set out for when you first started your company.
However, you will need a little helping hand, and Hospiria is always here to help with our software and expertise. Get in touch with one of our representatives today, and we can walk you through a demo and how it can assist with your expansion.
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|Booking management - Fully synced Bookings list|
|Single & Multi-calendars - flexibly update your availability and see your properties all in one place|
|Performance reporting in one dashboard - see your key metrics by Company or Apartment|
|Dynamic pricing - Managed in-platform and powered by Pricelabs, to increase revenue through rate optimisation.|
|Enquiry management - Track, action and convert direct bookings in one place|
|Smart Availability Search - Match enquiries with available properties through smarter searches.|
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