Apartment Locating Franchise
Have you ever wondered how to become an apartment locator? If you are considering starting an apartment locating company, this article is going to cover what you will need and why a franchise might be the best option for you.
First, I will say that being a franchisee is not a different sponsorship level, and it is not an additional cost for your sponsorship. Coming from an apartment locating background, I wanted to create a business structure that would allow a real estate licensee the ability to leverage their abilities and be able to not only make 100% of the commissions for the deals they work but also earn income off agents that they recruit and support.
What You Will Need
Here’s what you’ll need to become a successful apartment locator:
- You will need a reliable and quality lead source. Leads are the lifeblood of a real estate company, because without them you won’t have a company for long.
- You are required to take a 6-hour broker responsibility CE course. This will prepare you for managing other agents.
- The ability to encourage, lead, and manage others so that they can perform at or above their usual capabilities.
What does it mean to manage others above their capability? Managing agents is not as simple as just answering questions they have. It’s giving them tools like a CRM, preformed emails, a proven sales process, and tips and tricks to be efficient. It’s also anticipating their problems before they have them and putting processes in place that will avert them for future agents.
How Can You Become Better?
Experience is the best teacher. If you are good at your apartment locator job already, how can you formulate your process and then teach others to reproduce it?
What makes this a franchise is that you have the ability to make a broker split on the agents you recruit and manage. The cost comes in where you are paying for the agents’ sponsorship dues. There are cost breaks with more agents available. Your 3rd and 10th agent do not have any sponsorship dues.
You are required to manage your agents, but all of the administrative duties are handled by Spirit Real Estate Group.
- Vendor Compliance
- Accounts Payable
- Incentive Disbursement
- Free CRM
Yes, your monthly cost will be a little higher and there is still the $15 transaction fee, but if you look at all you are getting, it will bring it into perspective.
When you own your own apartment locating company, you have to handle all of the administrative duties yourself on top of trying to maintain your own income. Or, you will need to hire someone and pay them an hourly rate for the admin duties. Other costs include the desk space, office supplies, additional FICA taxes for your hourly employee.
Breaking It Down
Here is a chart to map out the comparison:
- 10 agents each
- An average 15 deals a piece per month
|Your Company||Franchise||Admin Duties Required|
|100 hours @ $12 : $1200||$0||Hourly Employee|
|$60||$0||Vendor Compliance fees|
What this comparison chart does not take into consideration is the cost of branding and professional web presence for your company. Also, it does not include the additional administrative duties that an hourly employee would not be handling. All of which are taken care of with Spirit Real Estate Group, LLC.
Yes, franchising it is more expensive by $50 to $100 per agent per month, but the question you should ask is “what is your time worth?”
- You do not have to develop and maintain an invoicing process
- Vendor Compliance is paid for and maintained for you
- Incentive and agent payroll is taken care of
- An hourly employee can take some but not all of the administrative duties that are provided. So there are going to be some secondary duties you will need to handle in order to keep your company operating.
- Better brand recognition with an established company
The chart cannot put a price on the items above. But how much time will you invest doing each of these, and then how much could you have earned with that amount of time if you had focused it on income producing activities?
Working With An Apartment Locator Sponsor
Some of you may have that entrepreneurial spirit and want to have something of your own that you made from the ground up, and I do not blame you. LLC sponsorship is perfect for you.
For those of you who want to focus your time on income-producing activities and growing a business faster with fewer burdens, a franchise is going to be your best option. Your upfront costs are going to be much lower because you are just signing up as a sponsored agent and won’t be a franchise until you bring on your first agent.
We even have programs where you are handed agent leads that do not meet the independent contractor criteria. Find out more about how to make the most of your apartment locator job by contacting Spirit Real Estate today!