Opportunity Identified: Individuals with an investment property(s) require assistance in efficiently and effectively maintaining their asset.
Who: Investors who have long or short-term rental properties
What: They are unable to properly manage the properties themselves due to other obligations
Why: Due to availability of time and the knowledge required most investors need a cost effective company to assist in the turnover or repairs.
Testing the who: Not all investors have this need immediately if they already have a company. However, new investors or those who are unhappy with their current vendor could be a potential client.
Testing the what: The market is quite large, it could include second homes, rental properties, Airbnb rentals, properties that are on the market, and homes for those who are in the hospital or will be away for an extending time.
Testing the why: The goal would be to show prospective clients why employing our services would not only be advantageous from a time savings perspective, but also a return on their investment. This is done by properly maintaining the property, which will keep the value of the property value from decreasing. And if applicable, also by shortening the turnover between renters, be it from short-term renters such as Airbnb or from yearly real estate leases.
Interview #1
During the interview it was determined that the prospective client has a need for the service, but that he is currently involved with another vendor that he is satisfied with. He further mentioned that while he is not totally satisfied, the cost of the service and their knowledge of the property is convenient for him.
Interview #2
During the interview the investor stated that he rather take care of his properties by himself in order to save the money that he would be paying a vendor. The investor stated that he may consider hiring a company if he were to obtain more properties and if he were unable to continue to take care of the properties by himself.
Interview #3
The interview revealed that the prospective client is looking for a reputable company to take care of his investment properties throughout the region. However, he is looking for extreme savings in order to turn over his properties to a new vendor. Therefore, the new company would have to have an established foot print in the area to be able to efficiently manage the properties and still make a profit.
Interview #4
The homeowner has the need for a property management company and he understands the value provided by the company, but is unwilling to pay the required costs due to income restraints.
Interview #5
The homeowner currently has a company who provides minimal service for negligible costs. She is happy with their service and the cost. Therefore, she does not wish to switch vendors at this time.
Summary:
These interviews exposed the fact that many investors already have a property management company if they have existing properties in their portfolio. Therefore, entering into this market will take some time for a new company. However, this slow ramp up will allow time to perfect the skills required in the market along with permitting the company to slowly increase employment.
What did you know about the opportunity that you didn't know before?
It will be much tougher to obtain clients than previously thought. However, with such a large market in South Florida, there will be opportunities due to difficulties that companies have in providing excellent customer service along with the technological aspect of the prospective service that will be offered.
Hey Jeremy,
ReplyDeleteI think your idea and opportunity of a property management company is interesting and exciting. I think it is a great idea to have a huge market, so you have more potential customers. I agree that entering this market may take some time to gain success. But with this time, perfecting the skills and different aspects would separate this company from the competitors, which would be very beneficial in the long run. Great post!