I'm in Utah and thinking about doing some Property Management for others. However, I am wondering if getting the licenses and certs are all worth it in the end? From my research, I will end up needing to either work under a Broker with my real estate license or become a Broker at some point. Is that right? I'm trying to speed up my investments a little and the job only does so much.
@James Kirby property management is a low margin business so you will need to wear a lot of different hats while you scale up. When I did the math, the number you need to be profitable was between 200 and 300 units. When I did the math the numbers weren't attractive till I reached 500 units, and to be honest that seemed like a lot of work to me for the margins I was seeing.
@James Kirby You are right about the setup you would need. I have managed my own properties for a long time and then after I got my real estate license, it was sort of a natural progression to offer property management to investors I was working with. I work with a lot of investors and some of them are out of state. I often got asked for management recommendations and a few asked me outright if I would manage for them. I finally gave in and it has been a good move. It helps me stay in contact with my investors and develop good working relationships with them. I have no intention of scaling my property management business, because I would rather focus my energy on the real estate investing side. But it can be a way to offer a valuable, currently needed service to any investors that you work with.