Property managers understand that they can grow their rental property management business organically by providing a great service or product. Additionally, streamlining expenses by outsourcing daily tasks, such as phone calls and driving efficiency with technology like electronic payments, makes for an efficient use of capital.
You can also accelerate the growth of your property management business by acquiring an established competitor and adding their clients and assets to your existing business. When you decide to purchase an existing property management business, the years of hard work required to gain new clients has already been accomplished for you.
With this in mind, here are some ideas for ways to make this happen:
Call local businesses
Many single family property management businesses that are for sale do not explicitly advertise that they are available for sale; other property management business owners may not be considering selling right away but might do so if someone discusses options with them. If you are a business owner, give them your best sales pitch. You built your business; you have to have some sales acumen, right?
Often times, a business owner may not want to alarm current customers or employees by announcing that they are for sale. If you start calling around, you might connect with an owner that has contemplated the possibility.
Attend industry events
You should always strive to be active in single family industry organizations and events. Two great single family industry organizations are NARPM National Association of Residential Property Managers and IREM Institute of Real Estate Management. While you are at events, you can network and ask around for references or professionals who can help you find the right competitor who might be willing to sell. Networking is an indispensable step in discovering potential property management businesses for sale.
Connect with business brokers
A commercial loan broker can facilitate a loan for you, but did you also know that a business broker can point you in the direction of a small business for sale? Business brokers are often hired by the business sellers to help with locating buyers and negotiating.
Search for advertisements
Watch local newspapers or relevant property management publications for single family businesses for sale. You can also search online and locate small businesses for sale in your area. In addition, create your own online ads showing your interest in purchasing a property management business.
You can grow your business in multiple ways. Owners of rental property management businesses should strive to drive efficiency and reduce expenses to achieve growth. You understand your market and you should already believe that you provide a differentiated and exceptional service or product. Consider the option of acquiring competitors as another method to fast track the growth of your property management company.