I just passed th NC Real Estate Broker License test, and want to start up a property management business. There are so many different things that need to be done in order to launch the business...a bit overwhelming. Does anyone want to offer advice on what actions are most essential to get done first in order to set the best foundation for long-term success of this business?
I would study what other property management companies are doing. Find out what their policies and fee's are and make sure yours are as good or better.
Identify areas where you do not want to manage homes. Those areas will not help you long term and the investor owners will see your company in a negative light of things dont go well so have a strict criteria of where you will and wont manage.
Are you just looking to manage a few properties for friends or do you want to have this business pay the bills?
The first is relatively easy, the second not so much.
If you are looking to say goodbye to the 9 to 5, I would consider buying an existing company to hit the ground running. It takes a significant number of units under management to generate a decent primary income.
Write a policy and procedures manual for your company.
As @Curt Davis said, set limits at to what you will manage. Perhaps a portfolio minimum average rent.
Create a marketing plan.
Learn search engine optimization so your company can be found easily on Google. Pay attention to your online reputation.
That should give you a few ideas. Let us know how it goes and best of luck!
First of all do you know anything about the landlord business? A big difference between being a Broker who buys and sells. Most Brokers I've encountered who do Property Management don't even own properties themselves and therefore have the worst lease agreement I've ever seen, leaning heavy towards the tenant and not protection of the landlord or his or her property.
What qualifications do you have to manage other people's properties?
Do you understand the landlord and tenant laws of your State?
Do you understand the City Ordinances for every city your properties will be managed in?
Do you have a Real Estate Attorney that deals in Landlord Tenant Laws. Just because they are a Real Estate Attorney or an Attorney doesn't mean they know the laws of the Landlord Tenant Courts.
It's a disaster if you've never been a landlord. But lots of Real Estate Brokers are doing it because a lot of home owners can't afford their homes and are trying to rent them out, and who do they choose to manage their homes for them...... Brokers who don't know what they are doing. Sad situation.
Do you have a broker you can hire to manage the firm? You'll have to be in business for a few years before you can open your own company unless you hire another broker to be the broker in charge.
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