There are two ways in which pricing can be affected in your Property Management Business. It can either be when you’re opening your new company or buying a property management company that is already in existence for continuity. In both cases, the bottom line would be differentiating you from the competition, which means a pricing structure that is friendly and beneficial to the company as a priority in the business.

If you’re opening a new company, research is key. Find out from local competitors how much they are charging and use this as leverage for setting out your prices. You will be better placed if you put lower prices than the average to attract new clients to your property management business. You can also calculate a percentage amount that can be charged for monthly management services, and another one from services that clients may require separately.

If you’re buying a property management company that is already in existence, and you don’t agree with the current prices, it’s possible to change that. In order for existing clients to understand the increase in prices, they should see the value which adds on the management part as well. You can add extra services that were not yet utilized and explain this as the reason for the increase in price. Alternatively, you can retain the same price for some time and prove your service delivery as more reliable and better, so an increase in price in the future will not discourage clients from paying.

You can introduce per service payments based on what owners want to do to their properties. By educating clients on the importance of some of these services, clients would be willing to pay for the extra services every once in awhile. Look at the challenges affecting property management in your local area and try to see how you can change this to work to your advantage. You can also hire a professional property management coach for more insight on how to open up new possibilities in your business.

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