I am considering starting a property management company. I have much experience managing my own properties. I also have other streams of income so can be patient to build the business.
My questions to anyone in the business are,
- How many doors can one person manage before adding staff?
- What kind of income potential is available for a portfolio of 250 doors?
- Is is a 7/24 business or if you are a good time manager can you run the business as a 5 day a week business?
- And, feel free to add whatever pros or cons about the business.
The more I read in post about how many "bad" property managers there are My though was that someone with service focus and good business and management experience could create a good business.
Thanks for your input.
I would highly suggest listening to some of the BP podcasts on property managers. There is a lot of good info in there, enough to answers your questions and give you some great ideas. You may also need to check your state laws. Some states require you have your real estate license in order to manage other people's properties.
To answer your questions.
Doors per person depends greatly on the ability of the person and the type of door (apartment that has clustered doors vs SFR's all over town.
I don't think you can classify income potential on a per door basis as it will again greatly vary depending on the door.
It is a 24/7 type of business, even in the middle of the night.
@Colin Smith I understand that it is a vague question I am asking concerning doors managed relative to earning potential given the variable in rents in communities. Just trying to set an expectations on how many units would translate to what type of income. if one door averages $2000/year in gross than 50 doors would equal $100,000 in revenue. Can one person manage 50 doors? What kind kind of expenses could I expect with no employees
And yes, I would need to be licensed which would take me 3 months.
Thanks for the reply
I would recommend talking to local property mangers in TX. I think there is too much of a variable still there. Plus there is all the marketing you're going to need to be doing. Are you marketing to SFR's or apartment complex owners? I know you're wanting a cookie cutter answer but I just don't think there is one. Sorry!
its definitely a all hours of the day kind of thing. I personally believe you should have some type of legal knowledge or connection just incase anything legal comes up. That could be a possible expense in your yearly budget.
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