The property management sector has been booming in recent months and has proven to be one of the few sectors to continue growing, in spite of the pandemic. In such a competitive industry, investing in a property management franchise can offer unrivalled opportunities. Here’s how you can do exactly that.
As one of the few industries to resist economic doom and gloom, starting your own business in the property management sector is a surefire way of getting a successful business up and running.
Bucking the trend of negative economic forecasts, demand for properties and property managers has remained strong. In December 2020, the Land Registry’s UK House Price Index recorded a 32% year-on-year increase in property transactions, resulting in a 8.5% year-on-year rise in prices.
It’s clear that this sector is still one of the most competitive and exciting sectors to be working in, but what exactly is a property management franchise?
What is a property management franchise?
A property management franchise is a network of businesses all operating under the trading name of a broader, national business. Gone are the days where small and independent property managers operated within local communities. Today, property managers operate as franchisees across the country.
Should I become a property management franchisee?
Property management is a highly competitive industry and though you may feel well-prepared, it can be very difficult for newcomers to this sector to get started. That’s why many are turning to franchising.
Although the number of private renters is expected to rise to six million over the next five years, many of the benefits of an increase in this sector will go straight to many of the biggest franchises. So, if you’re looking to get started in this sector, it is well-worth considering opening as a franchise.
Being a franchisee also means that you’ll be able to benefit from a number of competitive advantages, such as:
- Comprehensive and ongoing training in marketing, sales, site management and other key aspects of running your own business.
- You’ll also have the support of various dedicated business managers, trainers and colleagues.
- You’ll have the satisfaction of being able to help people find their dream homes.
- As your own boss, you’ll be able to work flexibly and to a schedule that suits you.
- As you won’t be building your brand from the ground up, your business will already have an established customer base.
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5 key tips for starting your own property management franchise.
If that all sounds good to you, you could be well-set to start your new adventure in the property management sector. To help you get started, here are another five key things you’ll need to start your own property business.
1. Prepare your skillset
If you’ve decided to take the plunge, congratulations! Before you go any further, it’s worth making a mental note of some of your skills and weaknesses. Ask yourself the following questions:
- Do you have any prior experience in this sector? Most franchises won’t reject you purely because you don’t have previous experience in this sector. However, how can you use some of your other experience to make your business run smoothly?
- Can you manage a team? Depending on the scale and size of your business, you may need to manage a team of property managers.
- Can you communicate effectively? You might need to negotiate with customers or other agents, so you will need to be able to communicate clearly and efficiently.
2. Be well-prepared
There are many different property management franchises, but not all of them will be the right fit for you. Make sure you do your research on the sector; assess the strengths and weaknesses of each option until you can narrow down all your options into a shortlist. And don’t stop there.
Even once you’ve made your choice, remember what you learnt about each franchise. Some of these franchises may soon become your competitors, so make a mental list of the things other franchises offer that you don’t. Research is essential when trying to stay ahead of your competition, so be well-prepared to know everything you can about this market.
3. Decide if you need any qualifications
You won’t necessarily need experience in this sector to take the next step of your career. However, your franchisor may want you to gain some essential qualifications before you open. You may even decide you want to gain some qualifications yourself.
If you decide you want some additional accreditation, your franchisor may be willing to cover the costs for any course you decide to undertake. Before you sign your franchise agreement, let your franchisor know what your future plans are.
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4. Understand your franchise agreement.
And speaking of the franchise agreement, it’s very important you’re fully aware what this entails. A franchise agreement is a legal document that outlines the obligations both you and your franchisor agree to.
It’s very important you understand this document, as if you don’t have a way of meeting these commitments, you could end up having your franchise agreement terminated. If this is your first time working with a legally binding business document, you could consider using a solicitor to ensure you fully understand it.
5. Brush up on your organisational skills
When running your own property management business, it almost goes without saying that you’ll need to be well-organised. It simply goes with the territory. You’ll be working frequently with legal documents, contracts and anything else landlords may need from you. Often, all at the same time.
Your franchisor will most likely provide you with some kind of case tracking software, but make sure that before you get started, you have a good idea of how to keep your accounts organised.
Opportunities in the property management sector
There are a number of very exciting franchise opportunities in the sector at the moment. If you’re looking to get started in this industry, consider one of the following franchises.
1. No Letting Go is a leading supplier to the lettings Industry, with many national customers. As the largest inventory supplier, this franchise will help you to build a six-figure income, with a repeat business model.
To get set-up as a No Letting Go franchisee, you’ll need to make a total investment of £17, 950 + VAT. Whilst the franchisee fee can be financed via a specialist bank, you need to have enough working capital to meet your bills whilst you are starting your business.
In return, you’ll be given both residential and on-the-job training, covering industry legislation, report building, tablet technology, back office systems, sales and marketing. In 2 year, your expected revenue will be around £80,000.
2. S.R.P Inventories undertake regular inspections of rented properties and prepare condition reports to landlords, managing agents and housing associations, using innovative software and systems.
You’ll need to make a total investment of £10,000 + VAT, and in return you’ll have full training, tablet and desktop powered specialist software, proactive support from an experienced team, CRM software, a website, email and more.
Running a property management franchise combines profit and reward
Running your own property management business can be a difficult job. But as a franchisee, you’ll be able to combine the job satisfaction of finding hard-working people their dream homes, as well as running a profitable business.
Working in the property sector is exciting, but there are also other opportunities within the sector. As one of the few recession-proof industries, you can also see how estate agents are looking to capitalise on the booming demand for housing, or find out how the real estate industry is looking to bounce back.
Elliott Fudge, Point Franchise ©