Can anyone provide any input on steps, advise on starting a property management company for residential homes in utah?
Most states, Utah included, require you to be licensed to engage in the managing of properties that are not your own. So you would either need a broker's license, or to be a licensed sales agent working under a broker.
Here's some more info: Utah Property Management Licensure
Do you already have a number of properties of your own that you manage?
Have you considered buying a smaller company to get your start?
In my opinion, it would be more difficult to start from scratch unless you already have a reasonably-sized portfolio to manage. Or you have sufficient cash to support yourself until the company reaches reasonable size.
Either way, I recommend you check out the National Association of Residential Property Managers and Landlordsource.com.
The former is our industry professional organization and they have educational offerings and conferences that support the property management industry.
The latter is a company run by a long-time property manager that offers products to property management company owners like templates for policy and procedures and employee manuals as well as information about how to buy and sell property management companies. Disclosure: I have no financial relationship with them, just a satisfied customer.
Licensure will be required to manage properties for third parties. If you are not currently licensed, you will need to work under a principal broker for a minimum of 3 years. In Utah, there is something called a dual license that allows principal brokers to split their license into a full service license and a property management license. (They are phasing this out). Many PM co's in Utah start by "renting a broker" under the unused portion of a PB's dual license.
That said, we have been approached by at least 4 parties wanting our help starting a PM company in the last year and I have talked them all out of it because none of them asked the simple question, "Is there a need for another PM company in my market?" Business planning 101.
There are a lot of people out there with a handful of properties and relationships with a some other landlords that think starting a PM company is a good idea. You will need at least 200-300 doors to break even.
In other words, why are you considering starting a property management company?
Depending on how you want to structure the management company there are ways around the broker license requirement.
I started my accounting career for a Property Management firm and still working as an Accountant Property for another company. I am also in the middle of starting up my own Property Management firm that will be handling small to large real estate owners.
You can hire a broker to work for you to take care of the licensing requirement.
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