Best Property Management Niche - How To Choose Right

Making the leap into property management is profitable. So, why not get your slice of the pie? Best Property Management Niche.

You need to choose a property management niche. There are three main types:

Single-family,
Multi-family and
Commercial

Each niche has its own set of benefits. But which one is most beneficial to you? You’ll want to examine each one to determine which works best for you.

Commercial: Best Property Management Niche

Managing commercial real estate is a lucrative business. If the business is booming the tenants are not as likely to leave as residential tenants.

There are three types of properties managers can choose to specialize in when setting up shop.

Retail:

These can be large or small storefronts. The location is vital. They need to be found by customers to be profitable. Business owners also need the freedom to place merchandise in easy to see spots in the store.

Point of sale accessibility and safe cash storage locations are important too. Ensuring that the store is safe and secure when the manager locks up is mandatory. Best Property Management Niche

Don’t invite thieves to steal the merchandise or money.

Office:

Office spaces need to accommodate office staff. The office must fit separate cubicles, multiple phones, and computers. And the office needs to have professional and comfortable touches throughout the space.

The office is the client’s first impression of the business. How will you do parking? Paid, free, or validated? Best Property Management Niche

Industrial:

An industrial building should hold many people in a large room. It needs to be well ventilated too. Best Property Management Niche

They will be using mechanical equipment, so it is imperative that it is a safe space for employees to work. If it’s next to office space, make it sound proof so you don’t disturb the other tenants.

The key to managing a successful commercial property is communication and service. You want to keep your tenants for the long run.

Multi – Family: Best Property Management Niche

These are your large apartment buildings or condos. They can vary in size, price, and location. Since you are dealing with so many units you will need to hire plenty of staff to be successful.

The best thing you can do is carefully vet each prospect and have high standards. This will lead too much less headache down the road when it comes to repairs and the dreaded evictions.

Keep in mind, they are sharing walls, community rooms, storage rooms, and parking garages. A bad tenant can make life miserable for your good tenants, which is never a good thing.

Senior Properties:

55 and better and 62 and better properties are exempt from renting to families with children – something to consider when looking at your niche.

Health Concerns:

Each community has occupancy standards to protect the property. Two people per bedroom are fair. Otherwise, it is a health concern.

Let’s say a person with five children under the age of 18 wants to rent a one-bedroom apartment. They may be denied due to occupancy standards.

This usually isn’t the call of the property managers but is something to ask your potential clients.

Single – Family: Best Property Management Niche

Single-family investing is the easiest property management niche to get started in.

With a massive (& growing) market single-family property manager usually has more than enough business to go around in any market.

The most challenging part is developing trust when you’re competing with the big guys.

It’s also easy to expand your client base as you see fit. A great property manager understands that they specialize in what they do.

When you hire out marketing and other services to help you grow – your clients will thank you.

You will be growing, your clients will receive top tier services. And you won’t have to worry about learning new skills.

And you don’t have to stay local either. You can expand nationally as you see profitable in new areas – just be sure to expand your brand with you.

Getting into property management isn’t something you need to do alone. With a license from Property Management Pros, you can hit the ground running with a nationally recognized brand + a set of systems and procedures to be profitable from the start.

Want to learn more about starting on your own vs. using a property management pros license? Read More on our Blog. Best Property Management Niche.