At JS Tech, we like to post things of interest to the we think would be of interest to the NYC community. Recently, we’ve been seeing a lot of changes in the property markets and we thought that this content would be a great read for other entrepreneurs like ourselves.
With the pandemic still looming over New York, the prices of rented living spaces have plummeted. While this might seem discouraging for property managers, there’s a silver lining: The younger generation in the Big Apple are taking this opportunity to move out of their cramped one-room apartments and into more spacious, single-occupancy studio rooms. So despite the drop in rental fees, now might be the best time to start a property management business and cater to this burgeoning market.
So, here are five things you’ll need in order to accomplish this particular goal:
1. The Right Paperwork
First, ensure that your business is legally permitted to begin operations. To do this, you need to map out your company’s business model and register it with the state.
In this regard, many fledgling business owners opt to start a limited liability company (LLC) as it has fewer requirements than any other kind of business. But how do you start an LLC in New York? First, it entails registering your name, agent, articles of organization, and operating agreement with the Secretary of State’s Office. Once that’s done, you’ll also need to meet the New York Publication Requirement by publishing either a copy of your articles of organization or notice of your company’s formation in two separate newspapers. Upon publication, you should receive two Affidavits of Publication, which you’ll have to send to the New York Division of Corporations with a completed form and payment for filing. When all the paperwork has been approved, then you can start building your property management business.
2. Planned Finances
The next thing you’ll need to worry about is your funding. How much do you expect to earn by the end of your first year? What else will you be paying for to improve your property? Will you be setting up an emergency fund and, if so, how much should you store there? These are all questions you need to answer as you start working on your company. A simple spreadsheet should be sufficient to keep track of all your rent and fees, so get that set up and make sure to update it daily.
3. A Secure Property
Now, it’s time to make sure your tenants are safe. In general, it’s recommended that you invest in technology that makes your life, as well as your tenants’, more comfortable.
Indeed, The New York Times writes that the pandemic has forced the real estate industry to adapt. With new technologies that range from high-tech cleaning tools to mechanized furniture, apartments and condos are moving into the future. While these certainly aren’t a requirement, a tight security system is. Consider investing in security cameras. If there’s already an older model wired through your property, you can opt for the HD-TVI camera system upgrade, which allows users to view properties remotely, get alerts, and much more — all without overhauling the old wiring. Investments like these give your tenants peace of mind, reassuring them that they’re safe in your property.
4. Reliable Employees
Depending on your needs, you’ll have to hire a team of employees to help with your finances and the property’s general upkeep. Hiring a real estate lawyer is always a good idea, as they can help you understand any relevant legal information and protect your assets against any risks. An accountant can help track income and ensure that all fees, like taxes, have been paid. You’ll also need maintenance workers to keep the place clean and ensure that everything is up and running.
5. A Marketing Strategy
Finally, you’ll need an effective marketing strategy to get potential clients interested in your properties. This means having a good website, social media accounts, and targeted advertisements to maximize visibility. A unique brand for your business also helps. Having a logo, a consistent color palette, and pleasing visuals can set your company apart from the competition, making it even more enticing choice for potential tenants.
And those are the five things you’ll need to start your property management business. If you need help with some of the more technological aspects, we at the JS Technology Group would be happy to lend a hand. Book a consultation, and we’ll answer all your IT questions!