Does anyone have any advice on how to start a property management company? One of my family friends is having trouble dealing with property managers for his multifamily and told me it is a good plan to start a property management company. So I guess I already have a client with about ~ 15 units to start.
Any good reading material. I am looking around the forums here to start and also look into getting my real estate license.
Hey @Victor Wong!
The requirements for property management vary by state. In California, I believe all you need is to be a licensed real estate agent. Other states require a broker's license and even sometimes property management certifications.
This might be helpful: https://schorr-law.com/when-a-property-manager-requires-a-real-estate-license/
Look into irem.org
Just because your friend wants you to do property management does not mean you would actually like it. It takes a certain skillset and not everyone has the aptitude for it. Lot's of investors think property management companies make too much and provide little to nothing for service in return. It's a common theme. Property management companies do not make that much money doing that in fact it is one of the lowest financial returns out there compared to other avenues a licensed salesperson could focus on.
You might want to take some classes and see if it is something you even want to take on.
@Victor Wong In CA you need a real estate license to perform property management. As an agent you need to be working under a broker.
Practically speaking, you need knowledge and expertise in these areas among others:
- Landlord / Tenant laws
- Fair housing laws
- People skills
- Business skills
- Systems/organization in place for all aspects
- Contacts for cleaners, painters, contractors, hvac, handyman, etc
- Accounting system
- Various documents: lease agreements, 3day notices, MIMO, applications, inspections/maintenance
Hope this helps
I created one 3 years ago because I wanted to make more money. I realized I was really good at it and have slowly built it up on the side in addition to my day job. You will need to know what the laws are for your state in order to be licensed properly (some states don't require a license).
Then a lot of it is trial and error and building the proper organizational skills, proper vendors, etc. You learn every day. You are under appreciated by the owners and have to act like a psychologist at times for tenants. If you don't set boundaries and rules people will run you right over.
I wish there was a forum on here for property managers that work for clients. I have asked @Mindy Jensen to speak to @Brandon Turner and the other people that run this site and have gotten unfavorable feedback. A lot of questions out there on BP for that niche and no forum to discuss it where others could learn.