I have an interesting theory about being a property manager and/or property management group. I know of an area that I'm very familiar with that would be pretty good for purchasing rental properties. However, there are no PM's there to manage those properties. I know there are deals to be had, but since I'm at a distance I'd need a PM. I have family in the area that are business minded and are very interested in real estate and ready to take action.
So.... If you were going to be the only game in town...would you do it?
Yes, if it was a good town! Do you have any ideas why there are currently no PMs in that town?
Yes, I don't see why not? What is the area you are considering?
@Logan Allec it's in Southern Missouri. I grew up there so I'm super familiar with it.
I'm a property manager here and there's a fair amount of competition. But I've seen places where there were only 2 or 3 PM's and it wasn't pretty..... standards are so low..... seemed like everybody suffered, nobody cared.....
@Atwan Kwan I can't imagine that one could change an entire town/city by having standards, but I feel like they could set the proper standards. It would be a few very lean months I'm sure, but if the PM and the investor could stomach the lean times then they could find good tenants. And from the investment side, if you have enough properties with a property manager who knows what they're doing, sticks to their standards, one could have a significant impact on the market. Was that the intention and it just went south after a while?
@Tyson Hosey didn't really understand your response. Point I was trying to make was that minimal competition didn't really provide incentive for standards from what I saw. I guess one could set good standards, but who knows if they would maintain if you're the only shop in town and you're growing.
@Atwan Kwan sorry for the scattered post. I guess the risk is that you're trying to set standards where tenants can be a little rough. So sticking to standards would be tough and you might go without tenants for a little while, while searching for solid tenants. I could see how it would be easy to slip on standards and run yourself into some trouble.
@Tyson Hosey exactly.... it's not really a new business problem at all. But just foreseeing how it could turn into a miserable chop shop.
Knowing you are your clients only option, doesn't give you much reason to provide sharp advertising, consultation or keep up with latest local landlord/tenant laws.....
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