AirBnB Franchise? Property Management Opportunity
While there is no AirBnB franchise you can still provide services to this growing industry with a property management type franchise. Investment under $100K.
The AirBnB phenomenon is massive and the market keeps growing. More and more people are deciding to rent out parts of their home or entire homes to make some extra money and the private accommodation sector has grown by over 300% over the last few years. Now because of this many people are also discovering that managing, marketing, promoting their properties is a big headache and they decide to hire a property manager.
We like the portable franchises where owners operate from a small or home office. There is no accounts receivable, no inventory or equipment unlike most retail franchises. If you have ever looked at retail rents or rents for restaurant locations you will understand. A home or small office is very inexpensive. The operational costs are manageable and most of your typical costs including taxes, insurance etc are much lower. The next saving over a traditional franchise is your initial investment. With service based franchises in general you are looking at a much lower investment, usually under $100,000 or less including working capital. Some states do require require you to operate from an office, others are OK from home.
Also in some states by law you do require a realtors license to manage properties, and some states are easier than others to obtain that license, we can help you determine that give us a call if you are interested in businesses like this. Now some property management franchise companies actually encourage their franchisees to also sell the real estate from the properties they are managing which provides an additional revenue stream.
Next benefit we like is operational simplicity. There are minimal employees and you can typically start on your own with no employees and scale the business.
Keep in mind there is no one best franchise for everyone and what is a great idea in Orlando may not be as great in Iowa. Part of the selection process is aligning your skills, demographics and market demand to the right franchise.
The activities you would be performing are project managing, hiring contractors. Some property managers when their businesses get large enough will hire full time employees, but to start you will typically use contractors. You will also co-ordinate general maintenance on the properties, handle credit and background checks for longer term tenants, co-ordinate repairs on the properties as needed, and of course on all these services you are paid a mark up. Most property managers charge about 7-10%, varies across the country, but a percentage of the rent plus expenses. So if you have a house under contract $1000 a month you might get paid $100 a month plus the margins on repairs or maintenance. Vacation rentals are obviously paid at a premium. The owners who do the best in the business, as pretty much any business, are the people who make things happen.Proactive. They are out speaking to people in the community, getting referrals, giving estimates. They are just really good with people and we have seen territories doing serious business and managing hundreds of doors.
Now if you have the capital you can actually buy doors before you open, buy existing accounts so it is like you are walking into a cash flowing situation. If you have less start up capital it’ll be up to you to pound the pavement to make it happen.
The drawback with these businesses is that if you aren’t good at staying motivated and driving business forward the business suffers. These businesses are a lower investment, often with superior ROI, but you have to go and get the business. So for people who work hard, its a good fit as the first couple of years you work hard to build up your client base. After that things calm down and you are basically just managing existing accounts.
If you would like to look at property management franchises and compare to find the best one for your situation visit us at franchise city – our services are always free you can learn more by clicking the link above. please like and subscribe and thank you for watching.