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The property industry has always been a popular choice for those with extra cash looking to invest in a portfolio, start a business or change career due to the potentially lucrative returns. However, there are many property ventures and business models, how do you know which is the right one for you? The answer to this question very much depends on your goals, your personality and how much start-up capital you have available. We’ve compared 4 property business types to give you insight into each option.

A Property Management company

Legally, substantial building developments require a property management company to be appointed to oversee the daily operations of the property. A property management company essentially acts as a ‘middleman’ by managing communications between both the landlord and tenant. These companies are generally paid via the service charge that leaseholders or rental tenants will pay. Therefore, depending on the size of the development and the overall building type, a property management company can deliver a sizable amount of income.

If you are looking for continuous monthly revenue, it would make sense to go for larger properties as your firm would be paid for each unit or flat managed. For more information about property management, visit LevelUP Property Management.

Property Renovations aka ‘flipping property’ for a profit

One of the most profitable and tried and tested business models in the property sector involves the buying and selling of properties. This is essentially the process of buying a tired property that is in need of upgrade and repair, giving it some love and then selling it for a substantial profit. This type of model tends to suit those who are creative, with an eye for a bargain with start-up capital to back their endeavors.

Executing this model however isn’t as simple as just buying a property, renovating it and expecting a huge profit. The investor needs to decide whether he / she wants to employ a team or contractors to handle the renovations or do it themselves. Whilst property flipping can be a lucrative side income if you’re not handling the work yourself (or if you can afford to do it slowly), it can quickly become a full-time job if you don’t have the funds to hire skilled tradesmen to help you. Unlike that of property management, property renovation does not give a recurring stream of revenue as the highest proportion of the revenue will be delivered only when the final property is sold.

A Property Rental Business

Another popular business model regarding property is property rental. This involves buying an existing property or renovating a property and then proceeding to rent it out for a period of time. Although this model delivers great consistent revenue, your profit is very much dependent on whether the property’s monthly cost is lower than the rental income received.

Property rental can net you the biggest profit margin when your property is mortgage-free. The beauty of property rental is that it is rather simple to do and it gives you an element of freedom you would not get from other property ventures, whilst giving you a steady stream of cash flow. There are of course, challenges to the rental market – as the landlord, unless you hire a property management company, you’ll need to deal with the demands of your tenants which can be full-time job should you have several rental properties.

Related Property Services

Interestingly enough, there are plenty of options and business models in which you don’t require a property to actually run a property related business. There are so many laws/practices involved when running a property that have given rise to the need for property-related sub-services.

These might include the likes of the safety of the building, the security of the building (especially vacant property services) and even the cleaning of the building. The point is, the possibilities are never-ending particularly if the building complex is extremely large, more often than not a helping hand will be required.



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