HOW TO START A PROPERTY MANAGEMENT COMPANY…

Are you ready to dive into the world of property management? The social media gurus try to make it look easy... but entering this vertical is more nuanced and complicated than you may think. We're here to simplify and explain what it takes to find success in your property management ventures. First off, you'll need to determine if you'll be focusing on short-term rentals, long-term rentals, or both. Having a model for these categories is square number one!

Starting a property management company specializing in short-term rental in 2024 can be an exciting venture, especially with the rise of popular booking channels like Airbnb and VRBO. To kick things off, make sure to research your rental market in the areas you plan to operate and gather data on the other rentals in your market. Understanding the demand for both short-term and long-term rentals will help you determine the best pricing strategies to maximize profits for your clients. You will also uncover the viability of your business venture, avoiding losses created by jumping into fully saturated markets. You at least need to know the initial challenges you're up against!

Next up, don't forget about the nitty-gritty legal requirements. Make sure to obtain all the necessary business licenses in the counties where your properties are located, and check with your county and state to ensure compliance. This step is crucial to verify you are operating legally and it can avoid any potential legal issues down the road. Propety managers are compeitive and they will exploit any legal vulnerabilities in an attept to push you out of the market. Don't fall victim to their malicious efforts. Let's not overlook the accommodation taxes either – be sure to stay compliant and handle these taxes accurately to keep your business on the right side of the law. Using a modern PMP (Property Management Platform) can help you manage the legalalities efficiently and effectively, and there are usually many other benefits suchas the ability to list on all major booking channels, direct website booking integrations, listing creation, and so much more.

When it comes to setting nightly prices for short-term rentals, embrace the power of dynamic pricing models. By analyzing rental market trends and leveraging data-driven insights, you can optimize your pricing strategy to attract more tenants and maximize revenue for property owners. Nightly rates will adjust due to market demand, the other rentals in your market, and 100's of other variables ensuring your calendar is always full and your price are competitive. Tools like PriceLabs can automate this process entirely, and give you valuable market insights as you bring new properties onboard.

These are just a few of the variables propert managers have to contend with, but by no means is an exhaustive list of functions. If you're considering starting a propety management company, or if you're struggling to make your management company profitable and less time consuming, become a TN Livin' Consulting Client to dominate your market.