Property management has been a growing field for some time. Even under a pandemic, many of these businesses are managing to keep afloat from increased demand from socially distant customers stuck at home. There’s more of a demand for property management now than ever before, and it’s only growing and diversifying as COVID19 changes how these companies conduct business.
But potential franchisees should also consider diversifying along with the industry. Owning a property management franchise is an excellent investment for some, but for others, it might simply just be a starting place.
Expansion is the next step, and starting with any business, that next step often looks like a property service franchise. Service industries have been thriving as of late, and for a franchisee, they are often worth the investment. Some industries that franchisees in property management should look out for are those that complement their properties; painting, insulation, maintenance and disaster repair are among the most common options.
Doubling down on these sorts of franchises makes sense from the perspective of an owner looking to diversify their assets: they all provide different revenue streams and can be used to service the owner’s other properties. If any of the franchise’s clients need such a service, then the revenue all comes back right to the owner. It’s a solid strategy for those looking into expanding their portfolio and wanting to move beyond owning basic property management franchises.
Something important to consider, however, is that research is more important than ever when making such investments. Franchisees should take the time to look into the properties managed by their firms, understanding what businesses could be the most useful and which might be a poor choice: a company managing single-bedroom apartments for a demographic of single millennial workers is obviously not going to benefit from a senior care or home care firm as much as a suburb full of families.
One of the more important things to consider is cost-effectiveness. Disaster recovery is something essential that is seldom used but involves higher costs and revenue. At least, compared to typical home maintenance, which might have more work, but often doesn’t lend itself to the extremes of fire or water damage repair.
There are a range of options, and a franchise owner shouldn’t be afraid to get creative when using their resources to determine what the best way to diversify should be. Home-bound remote workers are spending more time and money on lawn care than in previous years. Sanitization is also on their minds as much as it is in those of business owners complying with new cleaning regulations.
Painting and maintenance are also high-expense ventures that can be a useful asset for a franchisee to own in terms of property services; they provide useful services to keep everything in working order and looking beautiful, a demand that never seems to falter under the worst of circumstances.
It is well worth the time and resources for those looking to get into property services to research owning multiple franchises. Not to mention the variety of options to consider, turning the industry into something incredibly diverse and exciting for those who might feel that owning a single franchise is more of a start rather than a finish line.
Contact me or schedule a call (below) to talk about these and other opportunities. If you’re interested in Franchise Resales, visit the Resales section of this site. There are many businesses still available for resale.
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