What is involved in starting a property management company?

Answer 1

Many things involved, you should have enough capital, relations with tenants, landlords and other concerning authorities. As a new company your rates should be competitive, also need experience in real estate so that you can cover all aspects.

Answer 2

As with all businesses, you'll first need to determine what your state's requirements are for setting up a legal entity. Most property management companies are limited liability companies or LLCs, which you can usually set up an LLC without the help of an attorney. It is also important to find out if your state has any insurance requirements.
The next step is to learn the property management licensing requirements in your state and get a license. You may be required to become a licensed real estate broker, in which case you would need to take a few courses to get certified.

You'll need to create a company name and set up an office, phone number, email address, website and business bank account. You can set up your office in a dedicated room of your home if you choose not to pay for an office space. In this case it's a good idea to get a post office box so that you don't have to publicize your home address, as large part of your business will likely include receiving rent checks and other correspondence from your renters.

Next you'll need to find clients (property owners and investors). You can use your website to get your name out there and describe your services, but it's important to reach out in order to generate leads for your business. Real estate investors and landlords will be some of your most important customers, and they can be found at real estate investment club gatherings. Join your local club and network aggressively.

Successful property management companies maximize profits by filling and maintaining units, and minimize risk by preventing litigation and damage to rental units. You will need a list of contractors you can call to perform maintenance and repairs to your properties. Qualified and affordable contactors can be hard to find, so consult your colleagues or check out Angie's list for recommendations.

It's crucial that property managers are proactive when handling tenants, as the majority of issues can easily be diffused if they are addressed immediately. Lawsuits, damaged rental properties, and payment defaults can result from problems left unattended to.

Good Luck!!