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Starting a Property Maintenance & Renovation Business – A Complete Guide

Do you want to start a property maintenance business? If YES, here is a complete guide to starting a property maintenance & renovation business with NO money and no experience.

Okay, so we have provided you an in-depth sample property maintenance business plan template. We also took it further by analyzing and drafting a sample property maintenance marketing plan backed up by actionable guerrilla marketing ideas for property maintenance businesses. In this article, we will be considering all the requirements for starting a property maintenance business. So put on your entrepreneurial hat and let’s proceed.

Why Start a Property Maintenance & Renovation Business?

As a property manager, your core business responsibility is to maintain and renovate building facilities and to liaise with landlords and tenants. In some cases, you will also have to mediate between various contractors to effectively conduct your business. Because of that, you are expected to have a full grasp of the law when it comes to landlord and tenant relationships.

It is your responsibility to create efficient and effective protocols that will make you relate well with your clients (landlords, tenants and contractors). For example, you are going to be responsible for the full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay his or her rent when due. If you can get that aspect of your job right, you will surely enjoy your business.

Interestingly, the minimum educational requirement for any one that wants to start his or her own property management cum property maintenance and renovation business is a High School Diploma and hands-on-the-job experience.

It is one of the many businesses that an individual can start from his or her home and with just a business card. Since the property management business is all about managing property/properties on behalf of your clients, and then you may not need a huge financial base to be able to launch the business except you just want to start pretty big.

So, if you are serious about starting your own property maintenance and renovation company, all you need do is to read this article and you will be well equipped. You can start your property maintenance and renovation company from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally recognized brand and your business network spread across the length and breadth of the United States of America.

Starting a Property Maintenance & Renovation Business – A Complete Guide

  • Industry Overview

The property maintenance and renovation line of business which is a subset of the real estate industry is perhaps one of the easiest and affordable real estate businesses to start. It is basically about property preservation cum management, lease contracting or accepting rent using legal documents approved for the area in which the property is located. In a nutshell, property management companies are responsible for taking care of and managing buildings and other real estate properties for individuals (landlords) or for groups of owners.

Basically, companies in the property maintenance and renovation or property management industry help to keep vacant properties secure, safe and well-maintained inside and out and also manage residential and nonresidential real estate for property owners.

Property preservation or property management relates to the overall operation of a property which includes general maintenance, rent collection, trash removal, security and other renovation and preservation activities (lawn management, landscaping and painting et al). Some well – equipped property preservation cum property management companies go as far as helping their clients manage their property’s accounting and related services.

Property maintenance and renovation cum property management companies are also involved in mitigation and remediation regarding any maintenance and preservation issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

In fact, there are numerous aspects of the profession and some of them include helping their clients in managing the accounts and finances of the real estate properties, and participating in or initiating litigation with tenants, contractors and insurance agencies.

Property maintenance and renovation is indeed a very large industry and pretty much thriving in all parts of the world especially in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 231,051 licensed and registered property preservation companies responsible for employing about 774,021 employees and the industry rakes in a whooping sum of $75 billion annually with an annual growth rate projected at 4.8 percent. It is important to state that there is no establishment with a lion share of the available market in this industry.

Research shows that the industry operating conditions for the property maintenance and renovation cum property management industry are expected to remain positive in the coming years, though this will eventually slow. Going forward, the value of residential construction is expected to expand rapidly due to improved consumer confidence and low interest rates, causing an increase in the housing stock.

As a result, the US homeownership rate is projected to increase, and fewer consumers will therefore require property preservation or property management services. To combat this, firms are expected to offer more services such as long term maintenance contracts to attract renters and other related real estate services.

No doubt, if an aspiring entrepreneur who intends starting his or her own property maintenance and renovation or property management business has the right connections, networks, managerial skills, and takes delight in preserving and managing real estate for clients, then he or she is going to find the property maintenance and renovation cum property management business very rewarding and lucrative.

The property maintenance and renovation industry will continue to blossom because landlords and organizations will not relent in looking for professionals who will help them to effectively manage and preserve their properties. Despite the fact that the industry seems saturated, there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own property maintenance and renovation company.

Over and above, property maintenance and renovation businesses all over the world are still enjoying good patronage particularly if they are well positioned and if they know how to network with stakeholders and reach out to their target market.

Starting a Property Maintenance & Renovation Business – Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographic composition of those who need the services of property maintenance and renovation companies cut across businesses, individuals and households who own properties hence the demographic composition for the property maintenance and renovation company is all encompassing. The truth is that when it comes to purchasing and investing in properties, there is indeed a wide range of available customers.

So, if you are thinking of starting a property maintenance and renovation company then you should make your target demographics all encompassing.

It should include families who are interested in renting/leasing or acquiring a property, corporate organizations who are interested in renting/leasing or acquiring their own property/properties, land owners and landlords who are interested in renting/leasing out their properties, corporate organizations (real estate agencies, property development companies et al) who are interested in renting/leasing out their properties, foreign investors who are interested in owning properties or leasing properties in the United States of America, and managers of public facilities within and outside the location where your company is located.

List of Niche ideas Within the Property Maintenance & Renovation Business That You Can Specialize in

Most property maintenance and renovation companies tend to carry out general business activities that a standard property maintenance and renovation company is expected to carry out, that is why it seem that there are no niche areas in the industry.

But on the other hand, some property maintenance and renovation companies may decide to major in some key areas or niche area such as;

  • Collecting rent
  • Managing facilities maintenance services
  • Managing security
  • Managing trash and recycling collection
  • Property accounting
  • Legally representing property owners
  • Finding and screening tenancy applicants
  • Coordinating repair contractors
  • Residential property management
  • Nonresidential property management
  • Land management
  • Real estate brokerage
  • Construction
  • Property Management Consultancy and Advisory Services

The Level of Competition in the Property Maintenance and Renovation Industry

The truth is that no matter the level of competition in an industry, if you have done your due diligence and you brand and promote your products or business properly, you will always make headway in the industry. Just ensure that you pay attention to details when carrying out your renovation job on properties and you know how to attract and reach out to your target market.

But over and above, there is several property maintenance and renovation companies scattered all around the United States of America. So, if you choose to start your own property maintenance and renovation company in the United States, you will definitely meet stiff competition amongst property maintenance and renovation companies, real estate companies and property development companies who also carry out maintenance and renovation on facilities in your city or country.

List of Well – Known Brands in the Property Maintenance & Renovation Industry

In every industry there are always brands that perform better or are better regarded by customers and the general public than others. Some of these brands are those that have been in the industry for a long while and so are known for that, while others are best known for how they conduct their businesses and the results they have achieved over the years.

These are some of the leading property maintenance and renovation companies in the United States of America and in the globe;

  • Sweyer Property Management Company
  • USA Real Estate and Property Management Company
  • American Property Management Company
  • USA Service Property Management Company
  • Collins Realty Services & Property Managers
  • RE*USA Northwest LLC
  • American Horizon Property Management Company
  • American Heritage Property Management Company
  • Royal American Management Inc.
  • Wise Property Management Company
  • Association Services of Florida
  • Burlington Capital Properties
  • PMI Clarksville Property Management Company
  • First Service Residential Property Management Company
  • Colliers Rems Property Management Company
  • Progressive Management-America
  • A1 Properties KC

Economic Analysis

The property maintenance and renovation business has been in existence for decades and it is indeed a competitive business; as a matter of fact, you will come across several property maintenance and renovation companies when you go out there sourcing for properties to buy or sell or the services of property maintenance and renovation companies.

So, if you are mapping out your economic analysis, you should carry out thorough market survey and costing of the required amount needed to maintain and renovate properties and also the running cost of the business.

Over and above, if you are considering starting a property maintenance and renovation company, then your concern should not be limited to the cost of registering the business and the working capital needed for maintaining and renovation of properties, but also on branding and on how to build a robust clientele base. The truth is that if you are able to build a robust clientele base and a far reaching business network, you are sure going to maximize profit in the business.

Starting Your Property Maintenance and Renovation Business from Scratch vs Buying a Franchise

If you are looking towards starting a property maintenance and renovation company, then you would have to start from the very scratch because you can hardly get a franchise of a property maintenance and renovation company to buy. It is a business that is open to all and sundry.

Besides starting a property maintenance and renovation company from the scratch is less stressful when compared to other small scale businesses which usually require detailed groundwork before launching the business. With a property maintenance and renovation company, you should try as much as possible to secure your business license, pool your startup capital, build business relationship with key stakeholders and then leverage on every marketing tool within your disposal especially the internet when it comes to marketing your services.

Please note that most of the big and successful property maintenance and renovation companies and players in the real estate industry started from the scratch and they were able to build a solid business brand.

Possible Threats and Challenges You Will Face When Starting a Property Maintenance and Renovation Company

If you decide to start your own property maintenance and renovation company today, one of the major challenges you are likely to face is the presence of well – established property maintenance and renovation companies, real estate companies and property development companies who also maintain and renovate properties in your city or country. The only way to avoid this challenge is to create your own market.

Other challenges and threats that you are likely to face is economic downturn; if the economy is in bad shape, businesses such as property maintenance and renovation and the likes usually struggle to maintain their old customers or even welcome new customers. Unfavorable government policies can also hamper the growth of your property maintenance and renovation company. There is nothing you can do as regard these threats and challenges other than to stay positive that things will work well for you.

Starting a Property Maintenance & Renovation Business – Legal Matters

  • Best legal entity to use for this type of business

You have the option of either choosing a sole proprietorship, general partnership or limited liability company which is commonly called an LLC for a business such as property maintenance and renovation company. Ordinarily, general partnership should have been the ideal business structure for a small scale property maintenance and renovation company especially if you are just starting out with a moderate startup capital and covering just a city. But people prefer limited liability Company for obvious reasons.

As a matter of fact, if your intention is to grow the business and manage properties for clients all across your state and throughout the United States of America and other countries of the world, then choosing sole proprietor is not an option for you. Limited Liability Company, LLC or even general partnership will cut it for you.

Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for sole proprietorships and general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need a board of directors, shareholder meetings and other managerial formalities.

These are some of the factors you should consider before choosing a legal entity for your property maintenance and renovation company; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public. 

Catchy Business Name Ideas Suitable for a Property Maintenance and Renovation Company

If you are considering starting your own property maintenance and renovation company, here are some catchy names that you can choose from;

  • Hilary Tyson and Co Property Management Company
  • Gritty Kitty Property Management Company, LLC
  • Brown Bricks Property Management Company, Inc.
  • Crystal Property Maintenance & Renovation Company
  • Ariel Cone Property Flipping Company, Inc.
  • Rodney Jeff & Sons Property Management Company, Inc.
  • Octopus Property Management Company, Inc.
  • Campbell Dowel & Sons Property Management Company, LLC
  • Brain Tancredo Group Property Management Company, Inc.
  • Corner Piece Property Management Company, Inc.

Insurance Policies

In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.

Here is some of the basic insurance covers that you should consider purchasing if you want to start your own property maintenance and renovation company in the United States of America;

  • General insurance
  • Health insurance
  • Liability insurance
  • Risk insurance
  • Property insurance
  • Workers compensation
  • Overhead expense disability insurance
  • Business owner’s policy group insurance
  • Payment protection insurance

Intellectual Property Protection/Trademark

If you are considering starting your own property maintenance and renovation company, usually you may not have any need to file for intellectual property protection/trademark. This is because the nature of the business makes it possible for you to successful run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Is Professional Certification Needed to Run a Property Maintenance & Renovation Business?

Asides from your ability to manage, renovate and maintain properties, professional certification is one of the main reasons why some property maintenance and renovation companies stand out. If you want to make impact in the real estate industry as a property manager, you should work towards acquiring all the needed certifications in your area of specialization.

You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. Certification validates your competency and shows that you are highly skilled, committed to your career and up-to-date in this competitive market.

These are some of the certifications you can work towards achieving if you want to run your own property maintenance and renovation company;

  • Real Estate Professional Assistant (REPA) Certification
  • Certified Commercial Real Estate Advisor (CCREA)
  • Chartered Real Estate Professionals – CREP
  • Degree/Diploma in Real Estate and Building Engineering Related Courses

Please note that you cannot successfully run a property maintenance and renovation company in the United States and in most countries of the world without necessarily acquiring professional certifications and business license even if you have adequate experience cum background in the real estate industry.

List of Legal Documents You Need to Run a Property Maintenance and Renovation Company

The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized. It is a fact that you cannot successfully run any business in the United States without the proper documentations.

These are some of the basic legal documents that you are expected to have in place if you want to legally run your own property maintenance and renovation company in the United States of America;

  • Certificate of Incorporation
  • Business License (Realtor License)
  • Tax Payer’s ID / Tax Identification Number
  • Business Plan
  • Non – disclosure Agreement
  • Employee Handbook
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
  • Contract Document
  • Franchise or Trademark License (optional)

Financing Your Property Maintenance and Renovation Business

Starting a property maintenance and renovation company can be capital intensive even if you choose to start on a small scale, but if you choose to start the business on a large scale with standard office facility and over a handful of full – time employees, then you would need to go source for fund to finance the business because it is expensive to start a standard large property maintenance and renovation company.

Here are some of the options you can explore when sourcing for startup capital for your property maintenance and renovation company;

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell of shares to interested investors
  • Applying for loan from your bank / banks
  • Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
  • Source for soft loans from your family members and friends.

Choosing a Suitable Location for your Property Maintenance and Renovation Company

It cannot be overemphasized that the location you chose to start your property maintenance and renovation company is key to the success of the business, hence entrepreneurs are willing to rent or lease a facility in a visible location; a location where the demography consists of people with the required purchasing power and investment lifestyle. If you make the mistake of starting your property maintenance and renovation company in an area where you will find it difficult to find properties that are put up for sale, you will struggle to grow the business.

It is important to note that a business facility in good location does not come cheap hence you should be able to allocate enough fund for leasing/renting in your budget. If you are new to the dynamics of choosing a location for a business such as property maintenance and renovation company, then you should feel free to talk to a business consultant or a realtor who has a full grasp of the city and perhaps country you intend starting your property maintenance and renovation company.

Most importantly, before choosing a location for your property maintenance and renovation company, ensure that you first conduct a thorough feasibility studies and market survey. The possibility of you coming across similar business that just closed shop in the location you want to open yours can’t be ruled out.

These are some of the key factors that you should consider before choosing a location for your property maintenance and renovation company;

  • The demography of the location
  • The demand for properties in the location
  • The purchasing power of the residence of the location
  • Accessibility of the location
  • The number of property maintenance and renovation companies and related businesses that in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security

Starting a Property Maintenance & Renovation Business – Technical & Manpower Details

On the average, there is no special technology or equipment needed to run this type of business except for relevant software applications. But you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used.

As regard leasing or outright purchase of an office facility, the choice is dependent on your financial standing, but the truth is that to be on the safe side, it is advisable to start off with a short term rent/lease while test running the business in the location. If things work out as planned then you go on a long term lease or outright purchase of the property but if not, then move on and source for other ideal location/facility for such business. Besides, you can comfortably run a small scale property maintenance and renovation business from your home.

When it comes to hiring employees for a standard property maintenance and renovation company, you should make plans to hire a competent Chief Executive Officer/President (you can occupy this role), Admin and Human Resources Manager, Project Manager, Company’s Lawyer/Secretary, Head of Construction, Head of Assets Management, Head of Acquisition and Disposition, Sales and Marketing Officer, Accounting Clerk, and Front Desk Officer. These are some of the key employees that you can work with. On the average, you will need a minimum of 10 to 15 key staff members to run a medium scale but standard property maintenance and renovation company.

The Services Process Involved in a Property Maintenance and Renovation Company

When it comes to the business process as it relates to a property maintenance and renovation company, there are no hard and fast rule about it. Basically, a property manager goes out there to source for landlords and organizations who own properties and are looking for a property maintenance and renovation company to help them manage their properties.

Before a deal is sealed, a property maintenance and renovation company is expected to carry out inspection on the location and the type of renovation or construction work that will be carried out on the property. This will enable them know the required amount needed for renovating the property and the current market value of same properties within the geographical location for charging their profession fee.

It is important to state that a property maintenance and renovation company may decide to improvise or adopt any business process and structure that will guarantee them good return on their services and investments.

Starting a Property Maintenance & Renovation Business – The Marketing Plan

  • Marketing ideas and strategies

Generally, running a business requires that you should be proactive when it comes to marketing your goods or services. If you choose to launch a property maintenance and renovation company, then you must go all out to employ strategies that will help you attract customers or else you will likely struggle with the business because there are well – known brands determining the market direction for the real estate industry.

As a matter of fact, your marketing strategy should center on reliability, quality assurance, safety, pricing, secured payment platform, and above all excellent customer service. You should ensure that whenever your clients put their properties under your care that they will get great value for their investment. The truth is that if you are able to put the above stated in place, you won’t struggle to retain our old customers and at the same time win over new customers.

Businesses this days are aware of the power of the internet, which is why they will do all they can to maximize the internet to market their services. In other words, a greater percentage of your marketing efforts should be directed to internet users; your website should become your number one marketing tool.

Here are some of the platforms you can utilize to market your property maintenance and renovation company;

  • Introduce your property maintenance and renovation company by sending introductory letters alongside your brochure to families who are interested in renting / leasing or acquiring a property, corporate organizations who are interested in renting / leasing or acquiring their own property / properties, land owners and landlords who are interested in renting / leasing out their properties, corporate organizations (real estate agencies, property development companies et al) who are interested in renting / leasing out their properties, foreign investors who are interested in owning properties or leasing properties in the United States of America, and managers of public facilities within and outside the location where your company is located
  • Advertise your business in relevant real estate and property magazines, newspapers, TV and radio stations
  • List your business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets and still meet their demands
  • Leverage on the internet to promote your business
  • Join local chambers of commerce around you with the main aim of networking and marketing your business; you are likely going to get referrals from such networks.
  • Engage the services of marketing executives and business developers to carry out direct marketing.

Strategies to Boost Your Brand Awareness and Create Your Corporate Identity

If your intention of starting a property maintenance and renovation company is to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.

No matter the industry you belong to, the truth is that the market is dynamic and it requires consistent brand awareness and boosting cum promotion to continue to appeal to your target market. Your corporate identity has a lot to do when it comes to building a business that is profitable.

Here are the platforms you can leverage on to boost your brand awareness and create corporate identity for your property maintenance and renovation company;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events/programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
  • Install your billboards in strategic locations all around your city or state
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness of your property maintenance and renovation company.
  • Distribute your fliers and handbills in target areas
  • Contact families who are interested in renting / leasing or acquiring a property, corporate organizations who are interested in renting / leasing or acquiring their own property / properties, land owners and landlords who are interested in renting / leasing out their properties, corporate organizations (real estate agencies, property development companies et al) who are interested in renting / leasing out their properties, foreign investors who are interested in owning properties or leasing properties in the United States of America, and managers of public facilities within and outside the location where your company is located informing them about your business and the services you offer
  • List your property maintenance and renovation company in local directories/yellow pages
  • Advertise your property maintenance and renovation company in your official website and employ strategies that will help you pull traffic to the site
  • Position our Flexi Banners at strategic positions in the location where your property maintenance and renovation company is located
  • Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo

 

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