The Best Home Business Ideas

If you know something about residential or commercial maintenance, and you’re looking for something that’s a combination of working in a home office and hands on work, then a property management service might be just the home based business for you to start. 

A property management service is one of the most lucrative businesses to start, whether you choose to work from home, or set up in a traditional office.  For the purposes of this site, however, we’ll focus on the home based property management service, and how you can get started right away: 

Check your local and state regulatory agencies to make certain that the business you start will stay within the confines of the law.  More than likely, this will require a business license, tax identification number, etc., however, in some localities, you will need to be careful about the actual services that you offer.  For example, if you live in an area where vacation rentals are common, or you become involved in long term property management services, you may not be able to actively participate in securing tenants for the owner, as this may require a real estate license.  And, honestly, speaking from experience, your main focus should be servicing the property, while the owner of the property handles all agreements and monetary transactions related to paying tenants.

Research the local market to determine if there is a need for the services that you’re planning to offer, and if so, how much competition you’ll face as a new business owner.  Not sure how to research your local market?  Start by checking the yellow pages under the headings for Property Management Services, Residential and Commercial Maintenance Services and Cleaning services.  (If you live in or near a larger metropolitan area, or in an area where tourism and vacation rentals are a large part of the local economy, you’re probably very safe in starting your own property management service.)

Make a highly detailed list of what services you will offer.  No generalized list.  Break it down into as much detail as possible.  Categories to cover include:

• Regular Inspections
• Cleaning Services
• Meeting & Greeting Tenants
• Handling Tenant Requests or Complaints
• Move In and Move Out Inspections
• Routine Maintenance Services
• Routine Landscaping Services
• Routine Pool Care
• Routine Security Services
• Meeting with Vendors for services that you do not provide
• Supervising repairs and improvements to the property in the owner’s absence
• Preparation for and recovery from Storms (this is especially important in areas affected by hurricanes and severe cold/winter weather)

Decide what you will charge for each type of property and for the different levels of service you will offer.  For example, if you will regularly manage the entire property, then you’ll want to consider charging a fixed rate for certain services.  If you will only manage certain aspects of the property, then you may charge a different rate, or you may choose to charge for each service you perform.  Make sure that you factor the size and type of property that you will manage into your pricing. (If the property you will be managing is a smaller home on a one year lease, then your rate will be significantly different than you will charge for a large vacation rental with heavy use during peak seasons.) 

Plan and begin marketing your new business. The best way to reach absentee owners is through the use of the internet.  Placing ads on sites like Craig’s List, Vacation Rentals by Owner, Home Away, and other sites where owners typically advertise their property will provide the best way for you to interact with them.  You can also select individual properties that you would like to manage that are listed on these sites and introduce yourself to these owners via email.  Other ways to market your business include placing ads in your local newspaper under the services section.  Targeting a certain geographic area with flyers (often not effective with absentee owners) or introductory letters to property owners based on public ownership records.

Gather the tools that you will need to perform each of the services you intend to offer, and have them available (in your trunk, car, etc.) when you meet with prospective clients.  Not only will this provide the appearance that you’re already managing other properties, but it lends credibility to your claims that you will do an excellent job with their property.

As you begin to get responses to your marketing efforts, you will typically meet the owners at their property to discuss the services that you have to offer, and why they should allow you to manage their property versus the current arrangements that they have in place. Even if you have to negotiate a bit to land your first customer, do so!  Remember, word of mouth is your best advertisement, and your first customer will most likely be your best reference, and may help you land your next customer…and your next…and so on!