The Real Estate Investing Authority®

How To Start A Property Management Company - Part 1 of 2

START YOUR OWN SUCCESSFUL PROPERTY MANAGEMENT COMPANY: Part I

Smart investors know that real estate offers a unique opportunity for long-term returns with minimal risk. The prospect of paying 25% of an investment while someone else (rent paying tenants) pays the remaining 75% just can’t be beat.  Let’s make sure that math is clear: The buyer pays 25% down initially, call it $75,000 on a $300,000 building, and then as rent is collected, the property owner uses that money to pay off the remaining loan for the next two decades. It really is that simple, if you have the rest of your affairs and systems in order. As more and more people begin to take advantage of this opportunity, the more demand there is going to be for property management companies to help in creating those systems and improve property values as owners continually scale up.

 

[ Learn More: A CLOSER LOOK AT THE MIND-BOGGLING NUMBERS BEHIND REAL ESTATE INVESTMENT ]

 

Property Management is a great avenue to create purpose and identity for yourself. With favorable history and a promising future, starting your own property management company could be the single best way to maximize the opportunities that the real estate market has to offer. Take the first steps by learning more about why this might be the industry for you and what important steps you’ll need to take before you sign your first client.

 

WHAT YOU NEED TO KNOW AND DO BEFORE OPENING THE DOORS TO YOUR VERY OWN PROPERTY MANAGEMENT COMPANY[1] 

 

 

FOUR REASONS PROPERTY MANAGEMENT IS THE RIGHT CAREER CHOICE FOR YOU

 

IT’S REWARDING (BOTH MORALLY AND FINANCIALLY)

Property Management is a service industry that, when done right, leads to win-win situations for all stakeholders. If you think of it as a pyramid, it’s you (and your team) at the very top, and the people your team interacts with the most, the tenants, at the bottom. By doing your due diligence, your maintenance and management most directly impacts those tenants so by aiming to make them happy, you naturally increase the length of tenancy and decrease the amount of hassles.  Happy tenants make happy owners, and happy owners continue to pay for your services and recommend you to others in the investment world. So there is a natural financial cycle that works for all involved, as long as your pricing and value addition is fair and consistent and everyone up and down the pyramid benefits. If you do the job well, you will be justly compensated. You’ll then be able to provide appropriate and incentivizing compensation for your employees as well…which is a huge moral piece for you as a team leader. At Nexus, we’re proud to offer unique compensation, health insurance, 401Ks, paid vacation time, and incentives to help our team members purchase investment properties of their own.  Again..the goal is win-win situations for all parties.

 

But let’s return to the tenants. If you follow the Nexus model, which targets properties with three units or more, the reality is that your management is directly improving the lives of those in the community with the least financial flexibility. There are people out there who manage like slumlords and it’s not OK. There are people out there who just do the minimum to meet federal regulations in exchange for guaranteed rent. If that’s your approach, you’re not going to stay in the game long. If you truly want to be successful in this service industry you need more purpose than just profit. Aligning your interests and services with improving the lives of those in need of a reliable place to live is (in our opinion) one of the best ways to make a living. And by operating your own property management company, you provide that opportunity for countless others.

 

[ Learn More: PROS AND CONS OF BECOMING A PROPERTY MANAGER ]

 

Nexus Property Management Franchise Opportunity

 

IT MEETS MODERN LIFE’S DEMANDS

The world is a bit different today than it was a decade ago…or really pre-2019.  More and more people are leaving their jobs or starting new careers…and we get it.  According to International Bestselling author Josh Kaufman, Americans are looking for “a greater sense of autonomy, flexibility, and security from their work”.  This is exactly what property management provides.

 

[ Franchisee Jesse Mayo Explains Why Opening A Nexus Office Was More Rewarding Than His Old Job ]

 

As a business owner, you’re in the driver’s seat. You have the freedom to create your own hours, work from where you’d like, and really tailor your business to meet your own needs, as long as you can be reached reliably by your clients. You’ll need an office but it’ll be as much for marketing and visibility as it will be for office tasks.  In today’s technological world, a smart property manager and his/her employees can do much of their work from anywhere with a wi-fi connection.

 

And if you really want a greater sense of security, explore the opportunities that exist by entering into a franchise rather than starting from scratch on your own. 

 

[ Learn More: THE GREAT RESIGNATION IS CHANGING WORK IN AMERICA, AND EXPERTS SAY IT’S HERE TO STAY ]

 

RELIABLE MARKETS

It’s been said that real estate investment is a recession-proof industry. The housing bubble of 2007-2008 still lurks in the shadows for some investors, but the market has rebounded and lenders are more cautious…which helps reduce risk on our end. The short of it is: people own homes, people invest in homes, and people need those homes managed if they want to make money

 

Despite fear generated from the effects the pandemic had on people and businesses alike, 2021 was a very good year for the housing market. We saw the highest number of home sales in 15 years and historically low foreclosure rates. And we know supply is still lagging well behind demand so prices are expected to stay strong. Again…people are buying homes, people are investing in homes, and people need those homes to be managed efficiently if they want to maximize their profits.

 

[ Learn More: THE U.S. RENTAL PROPERTY MARKET OUTLOOK ]

 

 

How Nexus Property Management Does It

 

SCALABILITY

When we first opened our doors we had one employee. Nexus’ founder, Nick D’Agnillo, was able to manage about 10 units on his own and because he had nearly zero overhead, he turned a profit quickly. As a business, the goal is growth, so naturally a maintenance expert was brought on board because 10 units didn’t align with Nick’s ambitions. But that need didn’t arise immediately so there was no strain on the budget. And then when there was more demand than Nick could keep up with, he hired a leasing agent to help out with those responsibilities, and in time, additional maintenance technicians. A decade later, that original office in Pawtucket, Rhode Island employs 16 full-time staff and manages over 725 units in a 30-mile radius.

 

In property management you grow as quickly as you’re able to based on demand. Throughout that growth you should always be able to turn a reliable profit. If you do it right, you should never have to mortgage your future to weather the present. To do it right, you’ll need to do your homework about the area you choose to service. Reaching out to local property managers to ask general questions is a good first step. Inquiring about available franchise options is another strong option when trying to envision and create your business plan.

Nexus Franchise Brochure

 

Part II:
WHAT YOU NEED TO KNOW AND DO BEFORE OPENING THE DOORS TO YOUR VERY OWN PROPERTY MANAGEMENT COMPANY?
[2] 

Nexus Property Management Offices

Link to Part II

 

 

 Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

 

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

 

You Could Own A Nexus Property Management® Office For Less Than You Think!

 

Property Management Franchise Opportunity

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

Add new comment

Nexus Feedback

This company deserves 10 stars! I was looking for a very specific type of house for me and my family and I came across a video tour of a house that I absolutely fell in love with. Within a week I was invited to view the home, was approved for a lease and picked up the key! Greg walked us through every part of this process and made it a truly enjoyable experience. They are thorough, efficient, friendly, and Greg went above and beyond his job title to make sure that the owner or the house and my family and I were all extremely happy with this rental. I would recommend this company wether you are home owner looking for tenants or if you are not happy with your current rental and looking for something different. They will take care of everything for you!

21 Nov 2014

Nexus is composed of a group of excellent property managers, maintenance crew, and leasing agents. Nick responds to emails at all hours of the day and quickly follows up on issues. Additionally, he provides detailed property walkthroughs on a monthly basis and lets me know of any issues immediately. I travel several days a week and am happy that Nick and team are watching after my properties.

07 Oct 2013

Greg is very knowledgeable, responsive, and offers great communication skills. He is easy to work with and very professional as well. Highly recommended!

27 Dec 2020