Property Management Company Start-up

[Trang Herman]

Hi Investors, 

I am currently working on a project in Entrepreneur Finance Class. We have to come up with the pro forma numbers for financial statements of a start-up company and we chose Property Management Company. I have no experience in estimating these numbers before, so I think it's a good place in this Forum to ask. 

Can you help me to come up with estimation of the 1st year, maybe the 2nd year and 3rd year of a Property Management Company for the following costs: 

• operating capital
• salaries and wages
• insurance premiums/prepaids
• legal fees
• accounting fees
• rent deposits
• utility deposits
• office supplies
• office equipment
• advertising
• licensing

And : 

Revenue:

• Income from rentals (percentage of gross rent)
• Income from agents
• Income from property mgmt. services (finders fee, tenant placement, evictions, collections, repair management, etc.)
• Other income (late fees, interest)

Assets/Liabilities:

• Cash
• Accounts receivable
• Accounts payable
• Long-Term loans
• Prepaid expenses
• Office furniture
• Office equipment
• Other fixed?

Any short, long answer appreciated. 

[Curt Davis]

Most people who start out in property management dont start out with everything you have. It takes time and years to truly build it up to what you call a normal business. 

Some guys rent an office for $500 per month, very small and the furniture is included. 

Good luck, thats a lot of details!