* Percentage based – This is the most common property management business model being used by many property management companies that do manage a handful of property units. What actually happens is that, once a property owner signs an agreement with the management company, then he will give the management company permission to let him perform the daily tasks in order for the property to be rented out and collected rent. He only gets paid a percentage of the rent that the property gets collected, which can be anything between ten to eighty percent depending on how much the property’s value is.
* Own Property Management Service – This type of business model is very similar to the percentage-based model, but instead of a percentage being paid, you will be paid a fixed amount per month or year. You have to make sure that you get the maximum amount because that way you can start making a profit. It is very important that the owner you work for knows that you will be charging him a fixed amount and you won’t have to deal with any commission.
* Own Small Office Space – This business model is a little different from the percentage-based model because instead of the owner getting a fixed fee, you will be charged based on the square footage that your property has. In other words, you will get an amount equal to three times the number of rooms that you need to rent out. The larger the property’s square footage, then the higher your rate will be.
* Property management services – This is one of the simplest and cheapest ways to go about owning a property. It does not require any financial investment or even a mortgage. All you need is a lot of space, usually two to five acres, a lot of water, and lots of land. Then you will have to ensure that all the rental properties that you manage are in good shape and that there are no security issues.
* Own Property and rent out – This type of business model is a little more complicated than the two previously mentioned but it is definitely possible. In this case, you will need to manage the properties yourself but you still need to make a profit.
* Own Property and then rent out – This is a great way to start making money from home. You will start by renting out the properties that you are managing for other people so that they can pay for the properties that they are in need of. For instance, if there are people that live in a rented apartment, you will then rent out their apartment to someone who needs to live in that apartment. It will take some work to make the rent amount as high as possible, but in the end, you will be making a profit.
There are a lot of other models that can be applied to these business models but the ones that I have described above are the ones that most people use. There are a lot of things that can be done to get more profit in the long run if you are willing to put in the time, effort, and capital.
Some people prefer to use the percentage-based model while others like to use the rent-to-own model when it comes to property management. Some people also do not want to deal with tenants. In either of the two models, you need to make sure that you have a good relationship with your tenants. A good relationship will keep you motivated and will also help you generate more income.
Some successful business owners even use the combination of both. This way, they get the benefits of having tenants and also have the benefits of making money.
So, as you can see, this is not just another home business that you can get into. If you have the will to invest a lot of time and energy, then this can be a very good business that you can go into.
