A little background: My partners and I started our company a little over a year ago. We wanted to start flipping/holding, but we had extensive knowledge in wholesaling so decided to start with what we knew. After we complete a large multi-million portfolio in East Texas, we decided to find more of those deals. We then contracted one in the TCU area in Fort Worth, Tx. We found people were wanting a property manager, and we thought, "Hey! We could easily do that for you." Since we live in the area it would be quite easy to collect rent and answer questions. We also know a contractor who would be able to do maintenance and repairs for us.
My question is to anyone with experience starting their own property management company, what is the best route to get this going? One of our close contacts is looking to get into the rental game and thought we might be able to manage his first rental in Fort Worth. It would give us some credibility and we could build our clientele from there. We have always wanted to expand out of wholesaling. This way, we could build some capital to help us start flipping and holding houses for the long term. In advice (negative or positive) would really help. We are just four young guys starting our journey to wealth. Thank you!
Have you listened to Chris Clothier's bp podcast? His company manages in Memphis and DFW I believe. Might be a good place to start if you missed that one.
Customer satisfaction rates are pretty low in residential property management. If you can provide excellent service you will really stand out, but I think it's hard to do and make money. You also have to be a licensed broker to manage property for others.
Having churned through PM's in multiple cities till we found a good one our biggest complaints were
1. Complete dishonesty by the PM staff and owners and
2. Nickel and diming you on maintenance and doing maintenance without permission.
Don't do either of those and you will be a rock star.
@Tim Bishop I have not, but I will look into those! Thank you so much.
@Jon Klaus I did not know about the broker part. One of my partners is about a year out from being able to get his brokers license. Thank you for that information.
@Dean Letfus we would not even think about being dishonest, because my partners and I believe in the importance of honesty and integrity when doing business. It has helped us grow our company in the last year. Our name is all we have. Thank you for the advice!
@Ross Schneider - I am actually in the processing of starting my own Property Management firm. However, you do need to have a broker license in order to collect rent on behalf of your clients.
I am taking a different approach on this whole property mgmt because my whole accounting career was working in Property Management Firms as well as my partners.
It's a big different game when it comes to management. My firm's main focus will be Financial/Accounting side, but we will also have asset management and some of stuff.
Ross, do you have a broker license? If not, I think your option is to go for the Asset Management, which is maintaining the properties.
@Simon W. Awesome advice!
I do not have a brokers license, but one of my partners is about a year away from being able to get his brokers license.
The asset management side has always been something I wanted to do, but I think that is a direction we would want to go further down the road.
What do you mean by maintaining the properties?
Maintaining = asset management :)
Just making sure repairs are done when needed, be sure of any safety hazard, and the likes.
You and your partner should open up the firm, but do not collect rent until your partner have the license. That would be your best bet. Definitely consult with an attorney, different States have different laws. I think it is safe to say that most States are similar.
@Ross Schneider Good Luck to You and Partners. Sounds like You have the right formula for success. honesty and Service.
@Tom Keith Thank you! We hope this works out for us.
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