PropertyManagementMaven: Why aren't more Property Management firms being formed?

Why aren't more Property Management firms being formed?

We have a very robust rental market in Central Virginia....many area home sellers are being transferred to other locations for employment and leaving un sold homes to be rented by local property managers and sometimes their unsuccessful selling agent.

With this increase in rental home inventory, why have only 1.5 new property management firms been created over the last several years?  One firm is actually a long-time home builder who has accummulated a rental inventory of several hundred duplexes over the years.  They have stopped building homes, laid off their workers except for a slim staff who deal with their rental units.  The second firm is actually 2 gentlemen who I have known for years and who started their own property management firm 2 years ago.  I am mentoring them with forms, software, procedures, etc. and they have accummulated almost 100 units in less than 2 years from scratch.  After I choose the properties I get prospect calls on, I refer callers to this new firm which has greatly increased the property inventory.

If I am getting 3 to 4  calls for prospective owner clients with no yellow page ad, virtually no newspaper advertiging and few rental signs out as most of my properties have rented, I suspect that these client prospects are finding me from my daily listings on CL.

I can only imagine how quickly someone who has a modest advertising budget, knows how to farm for rental property owners and has basic knowledge of VA landlord-tenant laws could establish a property management firm in the current housing market.

 Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

View our available Charlottesville, Albemarle and Lake Monticello rental homes online with photos and floor plans


"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous

 

Comment balloon 4 commentsWallace S. Gibson, CPM • October 18 2008 04:24PM

Comments

Makes good sense, Wallace, as all of your posts do.  Thanks again for, not only this post, but all the others you've done that are such a help to me in starting my own PM company in Arizona.  Keep up the great work!

Posted by Dave Hamill, Prescott, Arizona Real Estate (EXIT Realty Legacy) about 10 years ago

How do you start 1/2 of a company?  Anyway, there are lots of new players in our area in California.  Maybe people do not want to play in the snow.  80 degrees here today and we picked up a couple of new accounts.   Thanks for the post!

Posted by Robert Machado, CPM MPM - Property Manager and Property Management (HomePointe Property Management, CRMC) about 10 years ago

I've been surprised that no one in our area has started a property management firm. Our business is booming. Maybe prop. man. scares them?

Posted by Leslie Prest, Owner, Assoc. Broker, Prest Realty, Payson, (Leslie Prest, Prest Realty, Sales and Rentals in Payson, AZ) about 10 years ago

Half = they were already doing property management for 100 builder-owned units and have now gone into fee-management.

I went to a state wide property management seminar where Betty Fletcher, NARPM president, was speaking...almost everyone in the room except for 3 old timers were RE agents turned property managers over the last 5 years....her's was not a newbie presentation (asset protection) which is why it was well attended; however, local Realtor and PM organizations need to get back to basics and educate the next-generation of PMs....investor/landlords can afford trial and error in learning the ropes - a professional property manager should not.

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) about 10 years ago

This blog does not allow anonymous comments