Home property management is a growing trend for homeowners seeking professional property management without renting their homes.
Property management companies can expand their services and profits by starting a roofing company and offering roofing inspections and repairs to clients.
Establishing a real estate brokerage within a property management company can prevent properties from leaving inventory and maximize profits.
Deep dives
Home Property Management for Homeowners
The concept of home property management, or property management for the house you live in, is gaining popularity in various cities across the US. This service aims to help homeowners who are new to an area and lack connections to reliable contractors and service providers. For a monthly fee of around $200, homeowners can sign up and receive property management services tailored to their needs. This includes quick response times for repairs and improvements, access to a network of trusted vendors, and in-house employees available to handle various tasks. The fee typically includes a markup of around 15% on services rendered. While this concept has been successful in vacation rental markets, it is now expanding to cater to homeowners who want the benefits of professional property management without the need to rent out their homes.
Starting a Roofing Company
Starting a roofing company can be a profitable venture for property management businesses with a sizable number of properties under management. By leveraging the existing infrastructure, staffing, and client base, property management companies can offer roofing services as an additional value-add for clients. With high-profit margins in the roofing industry, property management companies can capitalize on the opportunity to provide free roofing inspections to their clients, potentially leading to roofing repairs or insurance claims. By subcontracting or eventually establishing their own roofing crews, property management companies can create a new revenue stream around controlling the asset and ensuring that homeowners receive exceptional service.
Hiring an Agent to Start a Brokerage
Establishing a real estate brokerage within an existing property management company is possible with the right approach. One simple method involves hiring a mid-level agent willing to work on a 50-50 split model. This agent should be tasked with contacting property management clients on a quarterly basis, offering free comparative market analyses and identifying potential opportunities to sell their properties. By intercepting the sale process and leveraging an existing network of investors, property management companies can prevent properties from leaving their inventory and maximize profits. Tracking transactions and managing commissions may require the development of in-house sales licenses or partnerships with existing brokerages to ensure control and transparency.
Incentivizing Employees for Business Success
The podcast episode discusses the importance of incentivizing employees, particularly in the role of a number two. The speaker emphasizes the need to compensate employees well, including offering profit sharing, so they are highly invested in the company's financial performance. The example of a maintenance person engaging in dishonest practices is mentioned, highlighting the significance of having employees who are motivated to pay attention to all aspects of the business.
The Potential of Running a Self-Sufficient Property Management Business
The podcast episode explores the idea of running a property management business that requires minimal daily involvement. The speaker shares personal experiences and references other property managers who have achieved this level of autonomy in their businesses. They emphasize the importance of shifting mindset and embracing the idea that it is possible to automate and delegate tasks to create a self-running operation, allowing more time for other ventures or personal pursuits.
