Starting a property management business under a broker

10 Replies

Hello everyone,

I’m new here and hoping to find some advice/ tips on starting a property management business under a broker. I just recently got my affiliate brokers license in Tennessee and ready to hang with a brokerage. My husband and I have several rental properties that I currently manage. I am currently using apartments.com but am ready to start using on Buildium or another property management software. I understand I need to have some things in place before I pitch this to my future broker. Any words of wisdom would be helpful. 
Thanks!

Hi @Candace Bass !  It's great to see you growing from your own rental portfolio to helping others!  When you're an investor yourself, it certainly helps as you work with other investors.  I'll leave it to the PMs here to suggest software and those details.  I'd note not every broker is interested in doing PM, so when interviewing, make sure they are at the beginning.

@Adrienne Green Thank you! Yes so far I have found not too many are willing to carry that liability but I believe I have found one that is definitely interested, so now I just need a good pitch to sell him on it, and any advice on where to start is greatly appreciated. 

@Candace Bass You may also want to see if you can find a PM company that services Chattanooga but maybe not certain suburbs or areas of Chattanooga that you would be willing to serve. Go to them and see about teaming up where you open up your own "office" and service those areas where they may have been turning down properties in the past. They would now be able to send them to you and you obviously would pay a percentage of some sort to them. You still are able to manage properties in the areas they serve as well though. You'll just want to be sure you agree with how they do business as you will more than likely adopt a lot of their policies and procedures. 

The issue with this is the broker is the one responsible for auditing all the files and they are the ones on the hook with TREC if things aren't done properly.  It's one thing to have good systems in place, but it's another to go through all that info on a semi-regular basis.   So with that said the split can eat into your margins.  I've got my own PM company here in town so happy to discuss if you'd like. 

Originally posted by @Candace Bass :

Hello everyone,

I’m new here and hoping to find some advice/ tips on starting a property management business under a broker. I just recently got my affiliate brokers license in Tennessee and ready to hang with a brokerage. My husband and I have several rental properties that I currently manage. I am currently using apartments.com but am ready to start using on Buildium or another property management software. I understand I need to have some things in place before I pitch this to my future broker. Any words of wisdom would be helpful. 
Thanks!

You are in a good company Candace!

 

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