How to start my own Property Management Business

Managing Your Property
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How to start my own Property Management Business

Jeffrey Smith
Member since 2024 · 5 posts · 2 votes

Hello! im new here, my names Hunter and I come with two short term rentals and two long term rentals. Id love some input on starting my own property management business to generate cash for more deals. I already manage all of my own rentals with my fiance but im more unsure of the financial part of managing others. I do have an LLC, and have always done my own taxes, but never official book keeping. Any help or advice would be great!

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Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
2y

Your best bet is to either get a job working for a PM or partner with a PM to build the business.

[email protected]239-339-3969
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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    Your best bet is to either get a job working for a PM or partner with a PM to build the business.

    [email protected]239-339-3969
    Bartomeo Property Management4.7150 Reviews
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    1Reply
  • Jeffrey Smith
    OP
    Member since 2024 · 5 posts · 2 votes
    2y

    I have a full time job currently that I feel like ive been at too long to quit. I work 12 hour shifts 3 days a week with an early retirement, so i want something to do on the side that will turn into my new job at 40. Would it benefit me to work under someone else now or should i just start slow and keep investing while taking on a few properties. 

    1Reply
  • Patrick Nolan
    Member since 2018 · 11 posts · 6 votes
    2y
    Quote from @Jeffrey Smith:

    I have a full time job currently that I feel like ive been at too long to quit. I work 12 hour shifts 3 days a week with an early retirement, so i want something to do on the side that will turn into my new job at 40. Would it benefit me to work under someone else now or should i just start slow and keep investing while taking on a few properties. 

    LEO? I am in a similar situation without the super early retirement of 20yrs service, done by 40. I’ve got 23 years done at age 42 and I’ve struggled with how to leave the “golden handcuffs” behind. I had a beer with my brother recently and after I laid out my path forward with all the numbers involved, he said “you can’t afford to stay” … pension won’t be worth enough to justify staying in a job that has a pretty hard cap on earnings for a pension that won’t be worth enough to make a difference in my life, let alone the lives of my children. It’s time to fly and create the prosperity I seek or crash and at least know I took my shot. 
    0Reply
  • Madri Koppe
    Interior Decorator · CA · Member since 2020 · 78 posts · 30 votes
    2y

    If you could get a side job working for a PM that would be a great way to see the ins and outs of running the business. You’d get paid and learn about the process until you feel ready to start bringing on your own clients. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Jeffrey Smith:

    I agree with the others. Talk to some professional property managers in your area and see if they have a part-time position available. You will learn so much faster working for an established company, you'll earn a decent paycheck, and you'll quickly discern if PM is the right path for you. If not, you can quit and walk away without any harm. If you try starting on your own, there will be a lot of mistakes along the way and it will be harder to walk away from when you are solely responsible for the property of others.


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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    2y

    Agree with the posters above- but you also need to know how and IF property management is regulated in your state. That changes the game significantly. 

    PM isn't a great place to simply save money- it's a 24/7 job and there's huge liability if you don't know what you are doing. It's best to start working for another PM and learning the ropes and liabilities around leasing, screening and maintenance. 

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  • Michael McVetyBusiness Member
    Fort Myers, FL · Member since 2024 · 45 posts · 20 votes
    2y

    Starting your a property management company is not simple.  It does not mean that you are simply "adding" another home or condo or duplex.  Each owner you add will have their own thoughts, expectations and how they would like things done.  So the work is harder than managing your own rentals.

    As others mentioned, maybe you could help a local PM company in the area or, of course, you could start a PM company based on your state licensing requirements.  If you start one, you are no longer a landlord but also have to work on all aspects of running a business!  It will be a learning curve for sure.  If you do, join NARPM!  The best investment you will ever make.

    Good luck and let me know if I can help you further.

    [email protected]239-939-1233
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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Jeffrey Smith do you know how many units you need to have under management to make a living at it?

    Logical Property Management4.9453 Reviews
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  • Maham Javed
    Property Manager · Remote · Member since 2024 · 2 posts · 0 votes
    2y
    Quote from @Madri Koppe:

    If you could get a side job working for a PM that would be a great way to see the ins and outs of running the business. You’d get paid and learn about the process until you feel ready to start bringing on your own clients. 


     Hi Madri,
    I am currently in a somewhat same situation as mentioned above. As I am also relatively new to property management, could you be kind enough to guide me on how to I find PM's looking to hire remotely. I have worked as a Co-Host on Airbnb and yes I know, cohosting and property management are two different things. But once i get the knack of how PM works, it would be easier for me to expand my horizons in this market.
    Thank you

    0Reply
  • Bryan Montross
    Real Estate Agent · Crownsville, MD · Member since 2018 · 102 posts · 36 votes
    2y

    I agree that working for a PMC would be a great idea, but here are a couple other ideas. You could look into classes to teach you about property management. Some states require you to be a real estate agent, I think some even require you to take property management courses. Either way classes are good to take, but you'll never learn as much as doing it. Another thing you can do is treat your current activities as if you are an external PM. This will help you to build your systems out as well. Sign a PM agreement between you and the PM company. Send out owner statements to yourself. What are all those things you would expect from a PM? Do those for yourself until you are happy things are working, the maybe start branching out to other people's properties. Those are just a couple different ideas.

    0Reply
  • Jeffrey Smith
    OP
    Member since 2024 · 5 posts · 2 votes
    2y

    Thanks for all of the advice! I am in law enforcement and looking for a way out after I lock in my retirement and hazard pay. As a back story me and my fiancé have four rentals, two long term two short term. I do all maintenance and have never had to outsource anything. I’m a decent plumber, electrician, lawn care, and she does all of the hosting at the short term. I can see a market for people who don’t want everything out sourced. I obviously he r a long way to go, just making a 10 year plan..

    0Reply
  • Madri Koppe
    Interior Decorator · CA · Member since 2020 · 78 posts · 30 votes
    2y
    Quote from @Maham Javed:
    Quote from @Madri Koppe:

    If you could get a side job working for a PM that would be a great way to see the ins and outs of running the business. You’d get paid and learn about the process until you feel ready to start bringing on your own clients. 


     Hi Madri,
    I am currently in a somewhat same situation as mentioned above. As I am also relatively new to property management, could you be kind enough to guide me on how to I find PM's looking to hire remotely. I have worked as a Co-Host on Airbnb and yes I know, cohosting and property management are two different things. But once i get the knack of how PM works, it would be easier for me to expand my horizons in this market.
    Thank you

     @Maham Javed I’d recommend starting with your local market to inquire about PM roles. Let them know you’re interested in learning and getting experience and that you have some transferable skills. I’d contact other PM companies or individuals to see how I can offer assistance in any way possible. Best of luck!

    0Reply
  • Jessica StinnetteBusiness Member
    Property Manager · Herndon, VA · Member since 2024 · 20 posts · 10 votes
    2y
    Quote from @Jeffrey Smith:

    Thanks for all of the advice! I am in law enforcement and looking for a way out after I lock in my retirement and hazard pay. As a back story me and my fiancé have four rentals, two long term two short term. I do all maintenance and have never had to outsource anything. I’m a decent plumber, electrician, lawn care, and she does all of the hosting at the short term. I can see a market for people who don’t want everything out sourced. I obviously he r a long way to go, just making a 10 year plan..


     Where are you located? I agree with everyone on this thread, working with a property management company is going to be hands-down the best way for you to learn everything there is in property management. Similarities to self-management but there is so much more to learn especially if you want to grow your portfolio and add investors, or other landlords into the mix. I would say local property management company is ideal so you learn the legal compliancy, too, BUT we also have many virtual non-local employees that are amazing at their job and have learned a lot in property management even if it's not in the state they live and own their own rental property in. 

    [email protected]703-609-2323
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  • Kumar R.
    Property Manager · Destin, FL · Member since 2023 · 83 posts · 27 votes
    2y

    @Jeffrey Smith, @Maham Javed, I am a property manager, I am happy to mentor you all to get started. There are a lot of moving pieces when getting into Property Management, do not underestimate the amount of effort or work involved. 

    0Reply
  • Stephanie Michael
    Fredericksburg, VA · Member since 2024 · 6 posts · 4 votes
    2y

    If you are looking to learn the PM business or possibly start your own company you would need to check the laws in your state regarding licensure. I would highly recommend NARPM (National Association of Residential Property Managers) to learn about Property Management. They even have classes and designations you can attain to set yourself apart from other companies. You can always network with other PM's as well through NARPM. It is a wonderful place to learn and grow in the Property Management Industry.

    0Reply
  • Lee Dunne
    Member since 2023 · 4 posts · 0 votes
    2y

    My wife and I are also beginning to explore this pathway, having 4 LTR's out of state. We're considering this more out of the benefits for my wife being a full-time mom, to become the PM for our properties, and therefore become a full-time REP. Am I reading this right/wrong!? 

    I also asked the same question to my CPA, but waiting his response! 

    0Reply
  • Sean O'KeefePro Member
    CPA | Accepting new clients | 50 States · Member since 2022 · 1k+ posts · 871 votes
    2y

    @Lee Dunne your wife doesn't need to be a property manager to qualify for REPS. 

    [email protected]628-241-0888
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