There are several steps within a guide to starting a property management company. With the property management industry projecting nearly $20 million in revenue, the market is very appealing. That’s why so many management professionals are looking to start their own company from scratch. As a property manager, you should familiarize yourself with the steps to start and run your own company from the ground up. This way, you can start offering clients property services and solutions. Read on to learn about the steps to starting a property management company.
Create A Business Plan
First, you should create a business plan to build your property management company. Ideally, as a property advocate, you should write an actionable and achievable business plan that will secure funds for your start up. Of course, you should set both long and short term goals that you wish to accomplish in the upcoming years. In addition, give a brief description of why you want to enter the property management business. Also, include any skills or experience you have that makes you a perfect fit for the industry. More so, add a market analysis that states how many properties you currently own and how many you wish to own in the future. Furthermore, list your estimated financial projections to give investors an idea of how much money you want to borrow. Surely, your business plan is essential to starting a property management company.
Establish The Legal Structure
Second, you need to establish the legal structure for your property management company. Typically, property managers and realtors opt to establish a Limited Liability Corporation (LLC) or an incorporated business. With an LLC, you’ll be protected from personal responsibility for any debts or liabilities. On the other hand, you can choose to incorporate your business as an S-Corp or a C-Corp. Once you decide which type of legal entity you want to run your business as, you can file the proper paperwork. In addition, you can determine what your liabilities are regarding investment properties. Also, you’ll know which taxes you have to pay as a business owner. Of course, establish a legal structure to determine how you want to secure your corporate assets.
Obtain Proper Licenses And Certificates
Next, you have to obtain proper licenses and certificates to start a property management company. First, familiarize yourself with your state’s licensing requirements. Typically, you’ll have to get a real estate broker’s license to gives you the authority to help clients buy and sell properties. There are plenty of online real estate broker courses to help you get your license. In addition, you might be required to obtain a real estate property management license or certification. With this, you can take a course that includes specified property management training. Additionally, you can obtain other certifications that may not be necessary, but can supplement your knowledge. These can include certificates in apartment, residential and community management. In short, you should understand which licenses and certification you need to start a property management company.
Set Up Services And Pricing
Then, you should set up your services and pricing structures to start your property management company. Typically, property management companies offer services that include listing real estate, conducting showings, and screening processes. In addition, you can offer lease agreement, inspection and tenant services. Along with your services, determine your own pricing model for each of your services. Ideally, try to remain competitive with local property management companies in your area. Create a menu of your services and charge each landlord a la carte price. Certainly, setup your own services and pricing models based on your preferences when you start a property management company.
Find Clients To Service
Furthermore, find clients to service when you’re ready to start your property management company. Typically, you’ll want to market your property management company as a new business. Create a website that highlights your business goals, services and outcomes to attract potential clients. In addition, you can use social media to network with other contractors and maintenance professionals in the area. Plus, you should pursue your local real estate organization to stay connected with your community. Of course, you can get assistance from real estate coaches. This way, you can develop strong relationships with local property owners to offer them your services. Additionally, you should prove your strong customer service to build your business reputation. Definitely, stay connected with your local community to find clients to provide your services.
There are several steps to starting a property management company. First, create an actionable business plan to attract potential investors. Second, establish the legal structure for your business to determine how you’re going to file paperwork and pay taxes for your business. Next, obtain the proper licenses and certifications to run your property management company. Then, set up a servicing and pricing structure based on your offerings. Furthermore, find clients to service by networking and connecting with your community’s professionals. These are the steps to starting a property management company.