Understanding the differences between a franchise and independent businesses can be difficult for a rental property owner. It often amounts to a wash between the two. The franchise agreement allows the owner to run the business while the franchisee competes to sell the same product or service.
As a result, they are an excellent opportunity for entrepreneurial and corporate individuals who want to own their own business and still accomplish their career objectives without building their customer base. That being said, several key benefits make franchise businesses unquestionably better for rental property owners.
1. Increased profits
You’re going up against a large brand without the backing of a franchise; they’ll have access to more marketing dollars, which means they can out-advertise and out-market you. With a rental property management franchise, you’re not competing against a competitor but partnering with another owner who knows the system and has provided exceptional operational tools. Their advertising dollars will be focused on increasing your company’s exposure while they take care of all the marketing, advertising, and training aspects.
2. Trained Staff
The owners of franchises are experts at what they do and understand how to optimize all aspects of their businesses for success. They will provide you with training to maximize efficiencies and minimize costs. You can also visit their official website and observe how they run their business. Franchising professionals train you on their systems so that you have an overall advantage over independent property managers without the same knowledge of their business processes.
One of the essential benefits of franchising is that it gives landlords decision-making power. You decide what you want your business to look like and operate like. These are decisions that are crucial to their success as well as yours.
With a genuine franchise, they will train and provide you with information on how they can optimize your selling strategies and profit margins, but they still need to be some flexibility on your part.
Any problems with your business are your responsibility, and their business is dependent on the stability of your research property. As a franchisee, they will provide you with all the tools and training needed to run a successful business; however, if you fail to meet specific goals or standards, they have the right to void the franchise agreement. This puts both parties on equal ground, primarily since you’re investing in them as much as they’re investing in you.
5. Long Term Relationship
Franchises are profitable because of their longevity and loyalty to their customers and franchise partners. These are long-term relationships that can be sustained for the lifetime of a single property. Franchisees can expect to be working with their franchises for decades and beyond as long as both parties are benefiting from this long-term relationship.
The reality is that both franchises and independent rental property management companies are great options. However, the decision ultimately comes down to the people involved, their experience, and the opportunity they want instead of what they perceive as a better option.