How to Start a Property Management Company

Starting Property Management Company

Property management is one of the most affordable and interesting fields you can venture into. It requires very little capital and minimal education and experience. However, since the field requires interacting with people of different types including landlords, tenants, and contractors, it requires that you possess high interpersonal skills.

When starting the business, you need to make sure you familiarize yourself with laws affecting the landlord and the tenants. You also have to create effective and efficient protocols that will help you succeed in the field. These requirements somehow limit the number of people who venture into the business. However, if you still feel that you want to venture into the business, you need to first understand what property management is all about.

 

Understand property management

This involves overseeing one or several residential, commercial, and student housing. You can decide to manage your own property or start a property management company and help property owners manage their buildings. In most case, real estate investors who have no time to manage their property hand over that responsibility to property management companies.

 

Your responsibilities as a property manager

As a property manager, you will act as a bridge between the property owner and his tenants. You will be in charge of taking care and managing buildings and other real estate investments on behalf of the owners. In this capacity, you will handle;

  • -Seeking tenants to occupy vacant houses
  • -Collecting rent
  • -Overseeing property maintenance and repairs
  • -Showing property
  • -Receiving applications
  • -Managing inspection before move in and after a tenant vacates

 

You will also be required to work closely with landlords, contractors, and tenants. For this reason, you need to possess exceptionally excellent communication skills. You also need to be honest since during your career you will require handling a lot of cash. Remember the property owner is entrusting you with collecting monthly rent and paying for any repairs required within his building. If you are not honest and accountable, you might incur losses that may result in scratching your career.

 

How competitive is the property management field?

There are over 150 property managers in Florida that you will be competing and liaise with once you start your property management company. Once you get into the industry, you should expect to make at least $38,000 per year. The amount will hike to around $53,000 per year once you become well experienced.

 

Venture into the business

Once you have acquainted yourself with the industry, it is time to take the most important step of venturing into the business. Instead of starting a company at first, consider seeking employment from a property management company and work your way up. During this time, ensure you learn all the ins and outs of the industry. Also get valuable connections that will help you once you finally branch out to start your own company.

 

Get a license to operate

The only most important certification you require as a property manager is a license to operate. To get a license, you need to enroll in programs that train real estate agents and brokers how to establish, build, and find clients for your business. You don’t need any degree or other educational certifications whatsoever. Once you are set with the certification, establish a legal entity, an incorporated business, Inc. or Limited Liability Corporation, LLC. You can hire an attorney to do it for you or if you are good with the internet, get online and fill it for yourself.

At first, you don’t need to rent an office but instead open a business email and website and then operate from a home office. Other requirements include business cards, a computer, a printer, fax machine, and scanner. Since you will require constant communication with contractors and clients, you will also need an office line although your personal phone can also do at first.

 

Marketing your property management company and getting clients

Your success as a property manager is determined by your ability to network. Join local clubs and business organizations such as the Chambers of Commerce. You also need to create a good relationship with real estate agents who are in constant contact with the landlords. You can also get connections with property owners by working closely with financial lenders. Other people who know property owners and can help you is the local contractors.

In addition to networking, you also need to market your services both online and offline. Ensure you have interactive social media accounts and an efficient blog. Also, make effort to have your company listed on http://www.floridapropertymanagement.com/.