If you’re in the market to invest in a franchise—perhaps you’re toying with a few ownership opportunities. If property management is on your list of options to consider, let’s unpack some information to help you with your decision.
The Services Provided by a Property Management Company
The property management business is actually a pretty complex concept. These types of firms specialize in managing properties on behalf of property owners. Properties can include apartments condos, townhomes vacation homes, and even rental homes. These companies provide a range of services that can include finding and screening tenants, collecting rent payments, handling maintenance and repairs, enforcing leases, and dealing with legal issues related to the property.
A property management franchise is typically hired by property owners who don’t have the time, expertise, or desire to manage their properties themselves. This can include individual property owners with one or a few properties, as well as institutional investors with large portfolios of properties. It’s a tough job as the ultimate goal is to maximize the value of the owner’s investments by ensuring that properties are well-maintained, fully occupied, and generating rental income. Services may also include accounting and financial reporting, marketing and advertising, and legal and regulatory compliance.
For the services provided, the property management franchise will charge a fee, which is usually a percentage of the monthly rent collected from tenants. The specific fees and services offered can vary depending on the company and the specific needs of the property owner.
The Pros and Cons of a Property Management Franchise
Like any business, there are advantages and disadvantages when you own a property management franchise. Pros of owning a property management company include:
- Flexibility: Property management companies can be run from anywhere, as long as you have a phone and internet connection.
- Growth potential: As more properties are added to your portfolio, your revenue will increase. You can also expand your services to include other types of real estate.
- Variety of tasks: The job of a property manager is varied and can include marketing vacant units, handling maintenance requests, and screening potential tenants.
However, like all things, the good typically accompanies the less than favorable. There are a few cons of owning a property management company.
- Income: Since your income is dependent on filling vacancies, revenue can be unpredictable.
- High level of responsibility: Property managers are responsible for the safety and well-being of their tenants, as well as the upkeep of the property. This can be a heavy burden to bear.
- Legal liabilities: You must comply with various state and federal laws and regulations. Failure to do so can result in lawsuits, fines, and even criminal charges.
- Time-consuming: This can be a time-consuming job, particularly when it comes to handling maintenance requests and dealing with tenant issues.
- Stressful: There can be high levels of stress, particularly during times of tenant turnover or when dealing with difficult renters.
- Financial risk: When owning a property management business, you must invest significant amounts of money in advertising, maintenance, and repairs, with no guarantee of a return on investment. Additionally, economic downturns can lead to a decrease in demand for rental properties.
A Better Business Option
When there’s more “cons” than “pros” on the list, it means you may want to reconsider your options. Instead of property management, think about owning a restoration franchise that serves the community as an essential service, helping customers in their time of need. Restoration businesses are part of a $4 billion industry, according to recent stats from IBISWorld . Due to climate change conditions, the industry is experiencing growth due to increased demand.
Owning a restoration franchise means you provide a much-needed service, specializing in restoring and repairing buildings or structures that have been damaged by natural disasters, accidents, or other events. As a franchise owner, you lead a professionally trained team with the expertise and equipment necessary to perform restoration work.
ServiceMaster Restore Has Greater Benefits
When you work with a recognized name like ServiceMaster Restore, you benefit from being part of an established, well-respected brand with high standards and a strong reputation built from 65 years in the industry. We specialize in storm damage, water damage restoration caused by leaks, floods, fires, and other natural and manmade disasters. We take care of fire and smoke damage by cleaning and repairing impaired structures. Plus, at ServiceMaster Restore, our technicians receive comprehensive training to not only reconstruct damaged property but we are a mold remediation franchise —preventing further damage and ensuring safety.
As a franchise owner with ServiceMaster Restore, you will work with residential, commercial, and industrial properties to restore any damage to pre-loss condition.
After examining these franchise options, ownership with ServiceMaster Restore means you partner with a leader in the restoration industry, providing essential services to your community in their time of need. If you’re ready to learn more, get started by filling out our information form and we will be in touch.