Property Management company getting into Property Maintenance

Discussion in 'Starting a Lawn Care Business' started by merrimacmill, Feb 12, 2008.

  1. merrimacmill

    merrimacmill LawnSite Senior Member
    Messages: 515

    Hey, I'm new here on Lawn Site. I've been on plow site for sometime now, some of you may recognize my user name from over there.

    Anyways, we're a property management company that owns our own properties. We've been plowing our own lots for years, but this year we got into plowing snow commercially. Its been a nice getting more checks in the mail other than rent checks, so we're now tossing around the idea of getting into Property Maintenance. Like mowing lawns, aeration, fall and spring clean ups, that kind of stuff.

    For equipment that we have already for this kind of stuff, we have 4 21'' mowers, 4 string trimmers, 2 blowers, a compact tractor w/FEL, 3 pt aerator, 72" landscape rake, spreader, and a 62" MMM, we have a JD ride on mower with a 48inch deck, a 16 foot landscape trailer, a couple trucks and an array of hand tools. All this equipment is for our property management company and is only used once every 2 weeks or so. (sometimes a little more, depends on how the grass is looking)

    So right now, we would not have any investment into equipment and vehicles, or insurance. Our maintenance crew does our lawns which are not big. But I would plan on hiring a part time employee to go around and perform the duties of this division of the company, as I have no time to do all the work myself. I plan on being more on the paper end of things. Besides going and making sure everythings done right. Once our client base builds up to enough people where a full time employee would have something to do all day long, then he would be full time. I already have someone I know in mind for this.

    But to get to my question, how did you guys fuiger out how much your net revenue would be? I have no idea how much money is really in this business, so I don't know if it would even really be worth it. I haven't the slightest clue what the average gross or net revenue of a property maintenance company is or can be since thats not something I can just go up and ask someone. So how do you guys fuiger it? Do you think this venture would be worth it? The way I see it is, since I would have no investment in equipment I don't have to much to loose.

    Thanks for any help on this,

  2. DuraCutter

    DuraCutter LawnSite Senior Member
    Messages: 806

    haha... that is so funny. Maybe someone who is an lco in your town will help you figure things out so he can lose some work to your company.

    Doing your own properties, cool, but coming on here to discuss how to get more work as a management co. doing lawncare and competing agaings lco. the economy isn't that great, it's hard to keep jobs in the us? maybe it's just me...but :dizzy:

    Anyways good luck

  3. brianlooft

    brianlooft LawnSite Member
    Messages: 42

    You are new to this area, as I am. But it seems to me you have the opportunity to create some jobs. Do the rite thing and hire legal people and good luck!
  4. merrimacmill

    merrimacmill LawnSite Senior Member
    Messages: 515

    I didn't say anything about hiring any illegals. I would never higher illegals. Everyone in our company is paid very well, and are legal citizens of the US. I don't even understand where the notion of hiring illegals came from...

    And I'm not trying to get more work as a "management" company. We own a building that we manage and thats as far as we'll go with that end of things. Theres not enough money in managing other peoples properties. I'm trying to get our company into another, related, industry. Such as I already have done with snow removal. Your all in it for the money aren't you? And at one point or another you all "steal a job" from another company. As long as theres no low balling going on, I don't see the problem.

    Brianlooft is correct, I do have the opportunity to create jobs in the community with this. Its not like its some huge number of jobs, but either way its a couple more than there were before. Correct me if I'm wrong, but I don't see how someone starting a property maintenance company can be anything but GOOD for the economy wether that person has a property management company as well or not...

  5. Armadillolawncare

    Armadillolawncare LawnSite Senior Member
    Messages: 570

    You are missing his point. He doesn't want to assist you because he feels their are LCOs out there that you will being taking potential work from by doing what you are doing.
  6. merrimacmill

    merrimacmill LawnSite Senior Member
    Messages: 515

    Oh okay. But I still don't understand, what would separate me from another LCO if our company was in fact an LCO. Does he mean that since I have another job and company that I would not be an lco and would just be stealing jobs from "real lco's"? Can anyone see where I'm comming from? Just doesn't make sense to me.
  7. merrimacmill

    merrimacmill LawnSite Senior Member
    Messages: 515

    No more input anyone?
  8. Sunstate Lawn

    Sunstate Lawn LawnSite Member
    Messages: 143

    I think your going to get the general answer that everyone gets when they ask this question. Figure out how much it costs for you to operate, then figure your profit margin, then you have your net revenue. If your looking for someone to give you a firm price, that's not really feasible. Everyone here charges something different. If your trying to figure out what YOUR market will bear, the only good way is trial and error, or walk over to your local lco and ask him.
    Good luck
  9. barefeetny

    barefeetny LawnSite Senior Member
    Messages: 533

    you got to understand

    property managers to an lco are like ....ugh

    don't take this wrong... you guys are impossible sometimes

    you have unrealistic expactations for unreasonable compensation

    i applaud you.... i wish every PM would do there own at least once... it would make my job easier

    i plow snow and i swear to god all the companys i deal with have never seen a flake

    good luck with your endevour...

    ps. if you spill your guts about pm companys conduct buisness... someone will help you

  10. merrimacmill

    merrimacmill LawnSite Senior Member
    Messages: 515

    I understand what your saying about property managers being impossible. I've seen it in others. Generally pm's get bit**ed at by the tenants and they don't want things to be their fault, so they act as the middle man and try to blame everything on the contractors. We've never acted like this.

    Everytime we've hired a contractor, we never haggle prices or call up complaining about how everything needs to be done faster and cheaper. We've always understood that theres only so much time in the day, and they need to make a profit just like we need to in what we do. I'd rather pay more money for a good service, than a lot less for crappy service. Lots of PM's are VERY unloyal to their contractors and will leave them for a bid a few bucks less in a second.

    Since we've been doing snow removal for others, I can really see why contractors get so PO about property managers. Some people will put us in that stereotype, so thats why we do almost everything "in house". But everyone must remember, not all pm's are alike. Some do things right, some are jerks. I guess that goes with any kind of company though..

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