Considering starting a rental property management company as I have some rentals and think it would help me with my real estate investing and give me a chance to work with myself and other investors rather than a 9-5
I have not read the book on managing properties by Brandon and heather turner yet. Does anyone know if that mentions prop management business skills? Or just for owner landlords? I’ll probably read the book either way but wondering if it would help with a business
@Andy Rousch - if you want to be a property manager where you collect like 7-12% of rent revenue, you’ll need to be a real estate broker or hire a real estate broker to put his license on the company. It takes 2-3 years of being a full time real estate agent to qualify to sit for the broker exam. If you want to be a contractor and solely do maintenance, you like anyone can pay a couple thousand dollars for insurance / bonding / licensure and start within about a month.
Ah shoot that sucks I am a referral agent but don't have the time to do real estate full time to get up to a brokers license. Thank you! @Natalie Schanne
Hi @Andy Rousch to your direct question. Brandon Turner's book on PM does cover a lot of general skills that you need as a PM but that is the tip of the iceberg. If you want to own a PM company you need to get very local and understand the real estate and landlord-tenant laws of your state. I see you are from NJ, like myself, and @Natalie Schanne hit the first key point - you need to have a brokers licence on the business. Outside of that here are some other key elements to consider that they don't mention in the book:
Banking - As a PM you are going to blow away many banking maximums on transactions and you are going to have lots of accounts you'll have to manage. You'll need to find a good bank that understands what you do and create an enterprise account that work with that (plus you'll need to do it in accordance with all NJ laws).
PM to Landlord Contracts - You are going to need a lawyer who understands property management and can write you a solid contract to have between you and your prospective clients. I've seen PMs try to use a one page contract, you definitely want to stay away from those. There are a lot of moving parts in property management. All of it needs to be outlined in the contract. You need to guarantee some services as much as well as protect both your client and yourself.
COs - While COs aren't uniquely from NJ, the intensity and importance they have in NJ is probably like no other state. Make sure you understand the process or have someone on your team understand the process very well. Working hand-in-hand with townships is very vital to any property management company in NJ (especially when you get into the smaller townships).
If you ever need someone to be your sound board feel free to shoot me a DM. I am a landlord in South Jersey (way down in the swamps) and I also co-own a property management company that specializes in managing properties in five most southern counties.