The unmet need is the fact that the current field for these services are fractured, service is not consistent, and very costly. Investors, owners of short term rentals, Snow birds, who will be away for an extended amount of time. Property management is not a new idea, but has greatly expanded in recent years due to platforms such as Airnbnb, Homeaway, and etc. I am believe that with the right plan an opportunity exists to enter this market and become successful.
The ideal customer would come in various forms: investors, individuals with second homes "Snow Birds", and Airbnb owners.
Interview #1
65yo male, married, retired with a primary home in Ohio and winter home in South Florida.
Who takes care of your home while you are away for extended amounts of time? I have a property management company.
Was it difficult to find someone that you trust? Yes, we went through numerous companies.
Is the cost of their service reasonable? Yes, I believe so.
How long have they been servicing your property? Five years.
Do they do any work on your other properties? No.
Do they work for anyone else that you know? Yes, for a neighbor.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? I'm not sure.
Would you be willing to switch vendors? Not at this time.
The ideal customer would come in various forms: investors, individuals with second homes "Snow Birds", and Airbnb owners.
Interview #1
65yo male, married, retired with a primary home in Ohio and winter home in South Florida.
Who takes care of your home while you are away for extended amounts of time? I have a property management company.
Was it difficult to find someone that you trust? Yes, we went through numerous companies.
Is the cost of their service reasonable? Yes, I believe so.
How long have they been servicing your property? Five years.
Do they do any work on your other properties? No.
Do they work for anyone else that you know? Yes, for a neighbor.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? I'm not sure.
Would you be willing to switch vendors? Not at this time.
If not, why? It's not worth the trouble.
What would persuade you to switch? The current company would have to present some severe issues.
Reflection #1
It appears that there is an opportunity present, but that it would be difficult to get the company started as most of the potential clients already have vendors to service their properties.
It appears that there is an opportunity present, but that it would be difficult to get the company started as most of the potential clients already have vendors to service their properties.
Interview #2
54yo female investor living in Colombia with investment homes in South Florida.
Who takes care of your investment properties? I have a real estate company.
Was it difficult to find someone that you trust? Yes, I have used several Real Estate Agencies.
Is the cost of their service reasonable? No, it is too expensive for what they provide.
How long have they been servicing your property? Almost three years.
Do they do any work on your other properties? Yes, several.
Do they work for anyone else that you know? No.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? They have a website, but it does not provide options for what I need.
Would you be willing to switch vendors? Yes, if it could be done easily.
Was it difficult to find someone that you trust? Yes, I have used several Real Estate Agencies.
Is the cost of their service reasonable? No, it is too expensive for what they provide.
How long have they been servicing your property? Almost three years.
Do they do any work on your other properties? Yes, several.
Do they work for anyone else that you know? No.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? They have a website, but it does not provide options for what I need.
Would you be willing to switch vendors? Yes, if it could be done easily.
As written in the first reflection, an opportunity exists, but it would take a significant amount of time to become established with a healthy customer base. Therefore, it would be wise to begin with an efficient operating platform to help ease some of the administrative tasks. Online advertising would be helpful, but expensive. The best and cheapest way would be word of mouth.
Interview #3
42yo male investor living in South Florida with investment homes in South Florida.
Who takes care of your investment properties? I have a property management company.
Was it difficult to find someone that you trust? Yes, I have used several different companies.
Is the cost of their service reasonable? The cost if fine, but the service is poor.
How long have they been servicing your property? Two years.
Do they do any work on your other properties? Yes, four.
Do they work for anyone else that you know? No.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? No, but that would be nice as it would save me a time.
Would you be willing to switch vendors? Yes, if the company has a track record of providing reliable service.
Was it difficult to find someone that you trust? Yes, I have used several different companies.
Is the cost of their service reasonable? The cost if fine, but the service is poor.
How long have they been servicing your property? Two years.
Do they do any work on your other properties? Yes, four.
Do they work for anyone else that you know? No.
How do you normally contact them? On the telephone.
Do they have an online platform where you can reach out to them easily? No, but that would be nice as it would save me a time.
Would you be willing to switch vendors? Yes, if the company has a track record of providing reliable service.
Once again, it appears that the business is there, but there is also no shortage of competition. I believe that if one was to develop a client base that provided excellent customer service while effectively performing their services, they would no doubt continue to grow.
I still believe that the original opportunity is there. Property management is not a new idea, but it appears that there hasn't been any advancements in the way that these business conduct their day-to-day operations or allow their clients to interact. If one could develop new ideas in this field, such as an online platform that could easily allow the consumers with these needs to schedule and track services then I have not doubt that there is an opportunity to enter this field. I definitely think that as this new business was to continue, you would need to continue to speak to the current and prospective customers to determine what you are doing right, what you could do better, and and what you need to start doing. If you don't listen to the customers, then they will leave to someone who will.
Hey Jeremy,
ReplyDeleteI think your idea of forming a property management service geared towards investors, snow birds, and short term rental owners is interesting. I believe that there may be strong competition, but gearing it more towards the above mentioned customers could narrow that competition down to a point where your idea is very successful. I think the opportunity definitely exists and the idea is very clever.
Jeremy,
ReplyDeleteI believe this is a great business opportunity. In recent years, property management has began to get off the ground and has quickly developed. You have a good ideas in regards to the people you are trying to gear it towards. This industry is competitive, but I strongly believe that there is still a lot of ways to venture out. Property management is a great investment and can definitely lead towards success.