Starting a small property management company

Starting a small property management company

Homeowner · HI · Member since 2008 · 9 posts · 1 vote

I hope I'm posting this in the correct section.

I am going to start a small business with property management. I wan't to focus on single family residential and charge landlords either 10% or 15% of the rent.

I have tried looking for books on Amazon on how to start this up but haven't had much luck.

I do know that here in Georgia I need to have a Real Estate License to do this, and that's not a big deal. I'll be starting the classes soon, in fact.

I'm just not sure what sort of business insurance I would require, and also what a good way of handling payments would be. In other words, when I collect rent from a tenant, take out my cut, and then pay the owner of the property, how is that handled.

Thanks in advance.

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Chris ClothierBusiness Member
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
15y

Matt -

We started a private property management company about 7 years ago with a partner and went through a heck of a learning curve. @ years ago we broke off and started our own property management company in Memphis called Premier Property Management Company. I will tell you that this will be a struggle like most businesses until you reach critical mass. As you build toward critical mass you will be lucky to break even and find yourself doing the workload of several people before you are able to provide the best service possible. That was the bad news. The good news is that after reaching critical mass, this can be a very profitable business.

By the way, we currently manage 714 properties for 257 investors from around the country and charge 9% monthly plus 1st month's rent and 15% mark up on maintenance. In return, our clients will tell you they receive remarkable service and communication. Feel free to contact me and I will share anything you need including mindmaps we used to organize our business, our growth plan and the paperwork we use to run our company.

Best of luck,

Chris

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  • San Francisco, CA · Member since 2017 · 4 posts · 0 votes
    8y
    @nick j. Do you have a Real estate attorney in phoenix az that you’d recommend? I need one ASAP, thx!
  • Durant, OK · Member since 2017 · 40 posts · 4 votes
    8y

    In case anyone is wondering, here is a list of all 50 states and the basic requirement for being a property manager. 

    https://www.allpropertymanagement.com/propertylaw/

  • Hemet, CA · Member since 2017 · 3 posts · 1 vote
    8y

    Curious about his as well, I am a Realtor in Southern California and want to do PM on the side. Anyone know if I have to do this through my brokerage or can I do it independently and stay with my brokerage?  

  • Chicago, IL · Member since 2015 · 414 posts · 94 votes
    8y
    Originally posted by @Jackie Romo:

    Curious about his as well, I am a Realtor in Southern California and want to do PM on the side. Anyone know if I have to do this through my brokerage or can I do it independently and stay with my brokerage?  

     Bumping for essentially the same question

  • Real Estate Agent · Little Elm, TX · Member since 2016 · 5 posts · 2 votes
    8y

    I have almost 20 years of prop Mgmt experience but I am also just getting started on my own. I have an LLC set up and I am ready to go. I am really looking to acquire a group of Mgmt contracts in Texas. I have been able to add some one at a time but I would really like to spend the money upfront and expand the company quickly.

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