Have you been thinking about starting a new venture in the world of real estate? Maybe even considering diving into real estate property management, but you don’t even know where to commence on how to manage properties? Effectively and efficiently managing properties is an art form to do it in a way that it succeeds year in and year out. Starting a property management company means you’re not only dealing with your own employees, but also managing different properties, landlords, tenants, and...
Have you been thinking about starting a new venture in the world of real estate? Maybe even considering diving into real estate property management, but you don’t even know where to commence on how to manage properties? Effectively and efficiently managing properties is an art form to do it in a way that it succeeds year in and year out. Starting a property management company means you’re not only dealing with your own employees, but also managing different properties, landlords, tenants, and the vendors or contractors who maintain your property or properties.
It definitely takes a particular kind of person to want to be a property manager. If you feel you would be comfortable managing that many different types of people, all with their very own sets of needs, wants, and attention, then be a property manager might be the right career path for you.
Now that we’ve gotten that out of the way, starting a property management company can be a gratifying business. Here are our five tips for starting a property management company.
1. Your Property Management Company’s Legal Status
Whether you’re starting an accounting firm or a property management company, this step is always first. It would be best if you decided on the legal structure of your company. There are some things to think about and take into consideration before you finalize the legal structure of your company.
Most people who start property management or manager company end up setting them up as Limited Liability Companies (LLC) or, depending on if it’s just you running it, as an S-Corp. Look at the pros and cons of both before just deciding on one.
Another thing to consider is if you need to get any license to run your property management company in the state you’re operating in. Every state has different requirements, so you’ll want to take the time and research the licensing requirements for yours. A Real Estate Brokers License is usually a must that you’ll need to obtain before you can start renting out to tenants.
2. Pick your name and announce your company to the world!
Now that you’ve got all the legalese sorted out for your company, it’s time for the fun stuff. Deciding on your company’s name and designing a logo. If you’ve been considering starting this venture for a while, you most likely have a solid name picked out.
Once that’s all done, announce your company to the world by building a property management website. There are design firms that specialize in building sites specifically for the management of residential and commercial properties.
3. Find your Offices and Hire your staff.
To be a successful property manager will truly rely on your ability to hire the right real estate professionals for your team. You cannot do it all alone, and you shouldn’t if you want to succeed in the real estate business. Hiring a group of people who know more in areas than you the ones you don’t, is always a good idea. They’ll be able to see things that you can’t when it comes to the management of your properties.
Look for an accountant that has an extensive resume and knows the ins and outs of property management accounting and tax law. Keep a real estate lawyer on retainer, and be sure to take the time to research one that has the experience you need for your building. And DO NOT forget to hire vendors and contractors who come highly recommended by others in your business. If you see their facilities are well kept, then you can usually depend on their recommendations.
4. Automation Solutions
ntegrating property management technology will save you time and make things easier on both you and your tenants. Please do not skip this step when it comes to starting a property management company. Consider looking into a software product like Dashboard for your property management needs.
5. Market your properties
When navigating the world of online marketing, it’s good to hire a team of experienced professionals that know the market. Be sure that they also know how to help get your property the marketing strategy it needs to succeed. Your property should be showing up in search engines in your area every time someone is looking for rental properties.
These are just a few of the tips for starting a property management company. Our team at Rounded Triangle is always here to help for any property management needs you may have. We love to manage properties and help other property managers grow and succeed.