If you’re interested in joining one of the fastest-growing business markets in the U.S., property management is for you. Estimated at $84.73 billion in 2025, the American property management market is expected to reach $102.79 billion by 2030.
Recession-, pandemic-, and AI-resilient, the property management industry is poised for substantial growth, driven by technological advances and increasing demand for rental and residential properties. For those with real estate experience, managing properties will come naturally. Even without experience, it could be possible to tap into this growing market.
Find out why this expansive segment is a profitable, long-term business model and how you can be a part of it.
Starting a Property Management Business
Step One
The first step in learning how to start a property management business is to understand the large scope involved and the vast potential of opportunities. While the need for property management services has proven steady, the demand is only growing with the increased number of property owners and renters.
For example, consider the different niches within property management. Areas you can focus on include:
- Residential
- Commercial
- Short-term or vacation rentals, and
- HOA properties
It’s vital to pick a niche early on because each focus area could require different skills. One way of deciding on a niche is to identify the type of client you want to work with.
Step Two
After understanding the possibilities within the market, the next step is to find out what key skills are needed and how you can develop and exercise your strategy for success. The basics of property management include varied disciplines such as tenant relations, rent collection, maintenance coordination, facility and lease management, and legal compliance and property inspections. These could all be jobs in and of themselves.
Additional general business best practices are also essential. In addition to the fundamentals, strong management and interpersonal skills are crucial, including expertise in asset and revenue management, effective communication strategies, process optimization, marketing, hiring, and fostering personnel competencies
Step Three
Another critical step is developing an understanding of the legal and regulatory requirements to manage a business responsibly and ethically. Gaining an adept, working knowledge of local and state landlord-tenant laws and fair housing regulations will help you manage properties confidently and compliantly.
For example, do you need a real estate license for property management? You need to know what is appropriate in your location.
If you plan on operating independently, this knowledge will be your responsibility. If you choose to invest in a franchise model, you have more potential to get extra help from those who have already “been there and done that” and have access to the franchisor’s existing systems, network, brand name, marketing, and established business model. This is what we like to call the Neighborly Advantage. As said by one of Neighborly’s Real Property Management Franchise Owners, Lesha Dickerson:
“I know there was no way I was able to take it as far as I have, in such a short amount of time, if I didn't have [Real Property Management] behind me, teaching me, training me, coaching me.”
Key Trends in Property Management
Knowing key industry trends so you can be ahead of the curve and manage as effectively and proactively as possible is highly beneficial for anyone wanting to start a property management business. Mastering these areas will give you a decided business edge and help you manage as efficiently as possible:
Tech and automation. The internet is making everything and everyone more accessible – from information to experts – as data is running the world now. Advanced technologies such as virtual reality, artificial intelligence, and machine learning are being integrated into property management, further boosting its sophistication and optimization.
Sustainability and green initiatives. The race to reduce the carbon footprint is making compliance and sustainability a priority and necessity, and not just an added benefit. The entire world is going green, preserving vital resources, and being more conscious of what we use, how we use it, and how we dispense with it when we’re done.
Data-driven decision making. Obtaining comprehensive, up-to-date data is not an end in itself. It’s what you can do proactively and actively with it that makes it invaluable. Property managers can leverage data analytics to optimize operations, set competitive rental rates, and reduce vacancies. In addition, predictive maintenance tools can help managers anticipate and address issues before they become problems.
The Next Step in Becoming a Property Manager
Starting a property management business involves many critical steps and navigating them alone can be overwhelming. The best way to set yourself up for success is by partnering with Neighborly, the world leader in home services franchising, and its industry-leading brand, Real Property Management.
As the nation’s largest property management franchise, Real Property Management offers a proven business model, expert training, marketing support, and cutting-edge technology to help you scale efficiently. With Neighborly’s extensive franchise network and decades of experience, you’ll have the resources and support needed to build a thriving, resilient business in a growing industry.
Download our free Real Property Management Franchise Guide to find out how you can start your dream property management business today.
