A Quick Guide to Franchise Opportunities in the Property Management Industry

A property management franchise is a type of real estate franchising. When you run a property management company, you will provide a range of property management services to your clients. These might include arranging and managing short-term rental tenancies (such as vacation rentals), maintenance, accounting, and collecting rent.

You’ll provide a turnkey solution for people who have real estate but are not experts in the field of managing rental properties. Their lack of experience in the property management business is your chance to take advantage of some great property management franchise opportunities ─ such as Keyrenter Property Management, Nexus Properties, and Real Property Management.

Should you invest in a property management franchise?

This list of pros and cons will help you decide.

The Pros and Cons of Buying a Property Management Franchise

Though the work you do is different and requires different skill sets to other types of real estate business, property management franchise owners share many of the same advantages and disadvantages experienced by independent real estate brokers and franchisees.

As a business that helps people save time and money, as well as serve their tenants professionally, you should develop a highly loyal and profitable client list that’s going to help you continue to grow your business, as they will naturally recommend your services to others.

To help you understand the pros and cons of different property management franchise opportunities, we have segmented them under five headings ─ summarizing the pros and cons and providing tips to maximize the pros and mitigate the cons.

1. Ready-made expertise

Pros:

It’s in the best interests of the franchisor to ensure you are well-prepared for success in property management. Therefore, you’ll benefit from a range of support, including:

• Industry and business-specific training

• Marketing support

• The advantage of operating a tried and trusted business model

Cons:

• Not all franchise opportunities offer the same level of support. While most will provide comprehensive training, you should be aware that some may offer lower levels of marketing and other support.

When assessing a property management franchise, you should ensure that it provides the knowledge and support you’ll need to be successful.

2. The franchisor’s rules

Owning a franchise business is unlike starting a business from scratch. The franchisor’s success and reputation are built on years of experience and experimentation. You’ll be obliged to follow its rules and processes.

Pros:

• Access to operating procedures and best practices for everything. Fantastic when you face challenges in areas in which you have little or no experience.

Cons:

• A lack of freedom to be creative and make your own rules

• You must follow the franchisor’s way of doing things (for example, when collecting rent, managing vacancies, and marketing to property owner leads)

If you want a business in which you make all the decisions and can develop your own processes, then management franchises aren’t for you. If you are disciplined and able to work within the franchisor’s system, then you could be very successful as a franchisee.

3. Marketing tools and services

Successful marketing can be the difference between business success and failure. So, it’s crucial to get the level of support you need.

Pros:

• You can rely on marketing support, and some franchisors will provide full support, overseeing all your marketing for you.

Cons:

• Not all franchisors offer full support. Some will provide the tools and resources you need and a set of guidelines to follow, but then leave you to it.

It’s essential to assess your experience and capability in marketing a business. The franchise in which you invest should provide the level of marketing support you need.

4. Business Reputation

It can take years to build a reputation in the business. Owning a property franchise business circumnavigates this. You’ll benefit from immediate brand recognition.

Pros:

• Trading under a well-known name and reputable brand means it will be easier to attract new business and fill rental vacancies ─ as well as make it easier to hire new employees.

Cons:

• You have little control over the reputation of the business. If it suffers, your own business could suffer, and you may find it challenging to attract potential clients.

Our tip here is to do your research. Speak to other franchisees, and check out the franchisor’s reputation over the history of the business.

5. Property management franchise costs and profitability

There are many reasons to buy a real estate franchise. Often, you can run a property management business without an office, meaning start-up costs will be lower. While operating under the franchisor’s rulebook, it is still your business ─ and while a salary might pay the bills, profits could make you wealthy.

Pros:

• There are property management franchise opportunities to suit most budgets, with some very affordable franchises available for investment

• Over time, you can develop a steady stream of income and profits

• You can set your own work schedule

• For many franchise opportunities, no previous industry experience is necessary

Cons:

• The initial franchise fees and ongoing fees can be high

• The franchisor may levy fees for resources such as software, marketing, training, and renewals

• Some property management franchisors may also impose penalties for things like overdue payments and bounced checks

You should always ensure that you conduct comprehensive due diligence on franchise opportunities ─ and always ensure that the investment is within a budget that allows you to set aside an adequate contingency.

How do you get started with a property management franchise?

If you are considering buying a property management franchise, the first step is to speak to an experienced franchise consultant. Here at NGC, we help you to find the perfect opportunity for your needs and goals.

With the right help, there is no reason your investment should not be rewarded with a financially successful business that provides stability for your family and achieves your lifestyle goals.

Start your journey now by taking our franchise aptitude test.

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