Thinking about opening an eviction services business? We tell you what you need to know to get started.
Eviction Service: How Does It Work?
Each year, countless numbers of residential and commercial lease providers are forced to evict tenants due to nonpayment of rent and other lease violations. Rather than handling evictions themselves, landlords often find that it is more efficient to outsource eviction services to a third-party provider.
As an eviction services entrepreneur, you will be expected to deliver a range of services to your clients. While some clients may only require limited assistance, others will request end-to-end eviction services.
Since the laws concerning eviction are complex, you'll need to be prepared to navigate the legal and practical requirements of initial processing (legal paperwork and eviction filings), physical eviction (performed in collaboration with law enforcement) and collections (recovering back rent and judgments).
To stay current on industry developments and current eviction laws in your state, we recommend regular participation in the National Apartment Association (NAA) and other trade organizations.
Getting Started as an Eviction Services Provider
So what does it take to launch an eviction services business? Requirements may vary based on the size and scope of your operation, but most startup entrepreneurs need to be prepared to tackle a laundry list of startup challenges and hurdles:
- Administrative Resources. Although your business will occasionally be involved with physically removing an unwanted tenant from a rental space, the overwhelming majority of the work your business performs will be administrative. Subsequently, you'll need skilled administrative personnel and a technology capable work environment to effectively serve your clients.
- Rental Industry Expertise. Although eviction services isn't an exceptionally complex field, you need to know what you're doing to avoid legal complications and snafus. If you don't have experience in the rental industry, you'll need to hire staff that do.
- Pricing. Pricing is critical for emerging eviction services providers. Your prices need to be competitive, but they also need to be capable of covering your costs and profitability benchmarks. Consider offering your clients both a la carte pricing and package deals that discount end-to-end service bundles.
Proven Strategies for Eviction Services Company Business Plans
The idea of writing a business plan is intimidating to most aspiring eviction services business owners. If it's comprehensive and well-written, however, your business plan will serve as a strategic anchor point and a calling card for external stakeholders.
After you have written you plan, you'll also need to develop a strategy for your next steps.
A business plan distribution strategy represents the backend of your business planning requirements. To help monitor your progress, you'll need to implement a system for tracking business plan distribution in your startup.
Don't Ignore the Competition
Well in advance of opening an eviction services business within your community, it's worthwhile to see how strong the competition is. We've provided the link below to help you generate a list of competitors in your area. Simply enter your city, state and zip code to get a list of eviction services businesses in your town.
Gain a knowledge of how existing firms have positioned themselves in the marketplace, and then design your business in a way that sets you apart from the others.
Getting Advice from Experienced Entrepreneurs
After you've evaluated your local competitors, it's a wise move to talk to somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. It'd be crazy for them to teach you the business.
However, a fellow entrepreneur who has started an eviction services business outside of your community can be a great learning resource for you, provided that you won't be directly competing with them. Many business owners are happy to give advice to new entrepreneurs It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
Where can you find an owner of an eviction services business who is willing to talk to you but doesn't live nearby?
Here's how we would do it. Try the useful link below and key in a random city/state or zipcode.
Leveraging the Branding Benefits of an Eviction Services Business Acquisition
Startup eviction services businesses typically suffer when it comes to brand recognition because unlike entrenched competitors, new brands lack visibility and history with their customers.
To compensate, one of the techniques entrepreneurs use is to buy a business to get an established brand. As a startup, the best you can hope for is to gradually develop brand awareness over a period of months and years.
However, an eviction services business acquisition can put you at the helm of a brand that is already highly trusted by your target market.
Is Franchising the Right Option?
Tapping into a franchise opportunity makes it a certainty that you tap into best-practice tactics that were developed by experienced entrepreneurs who know your industry inside and out.
Before opening an eviction services business, you would be wise to assess whether franchising might alleviate your startup process.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you came here to learn about selling to eviction services businesses, you're in the wrong place. These resources are more appropriate for you:
If you are still exploring all of your options, please browse our directory of guides below.