When you want to own a property management company, you have the option of buying into a franchise or starting your own independent business. Today, weâ€™re talking about the differences.
Pros and Cons of Franchising
I do property management coaching for a few clients in a franchise. One of the things people need to realize before buying a property management franchise is that there may be a misconception about the work thatâ€™s involved. People think that when they buy a franchise, they have all the systems in place and it will be easier because theyâ€™re working with a well-known name. But remember – youâ€™re still an entrepreneur. And, youâ€™re still going to have to do the work. Keep that in mind.
Do your research so you know what costs are involved when youâ€™re buying into a franchise. One of the great things about being in the franchise is that you have built-in name recognition, and there are often procedures and foundational processes in place. They also have corporate training to help you along. So, if youâ€™re a complete newbie to property management and you know nothing about it or youâ€™re changing careers, a franchise may be the best way to go.
Pros and Cons of an Independent Property Management Business
If youâ€™ve been in the property management business or real estate industry for a long time, you might want to start your own company. Thatâ€™s all good and great, too. There is no one way of accomplishing the same goal. Keep your market in mind. In Santa Cruz, we donâ€™t have franchises. Itâ€™s very local; and business owners know that franchises donâ€™t work. We have been trying to get an In- N-Out Burger for ages, and it will never happen. Our market includes independent owners only. So, do your research. Find out what kind of tools youâ€™re getting if you do franchise. If youâ€™re doing an independent business, youâ€™ll need to establish those procedures and systems. Either way, it will take a lot of work to make it happen, so be prepared.
If youâ€™d like to talk more about franchise vs. independent business, please contact me at The Property Management Coach. Iâ€™d be happy to help you make this decision.