When you’re starting your real estate business it’s a wise idea to ensure you have measures in place that will generate recurring revenue. Having a strong property management portfolio can be the answer - the cornerstone of your successful enterprise.
Our Pathway to Business Ownership programme can help you establish your own real estate business, guide you through launching with low infrastructure costs, and make it the success you want it to be.
In this blog, we list the advantages of including property management in your real estate business.
Here are our top 6 key advantages to including property management:
1. Predictable income: a reliable, regular monthly income spread across tens or hundreds of properties
2. Market protection: income from your property management portfolio is insurance against fluctuations in the real estate market
3. A service to clients: acquire and retain high-value investor clients who want to keep their property management and transactional dealings under one roof
4. A source of leads: eventually most renters become buyers, and then sellers: grow your circle of influence and get to them first
5. An asset to borrow against: when you’re looking for capital to expand, banks will lend against the tangible value of your rental portfolio income
6. Long-term value in your business: a solid property management revenue stream is one of the most effective ways of ensuring your business is a highly valuable enterprise when it’s time to sell.
You may not have been involved in property management in the past but now, as you strive to create wealth through building a company with solid foundations and reliable revenues, it will ensure your business is as profitable, valuable and as likely to succeed as possible.
