Texas or Florida?

Question

Good Day Everyone, I am planning on starting a property management company. Managing mix of STR and LTRs and may be starting complimentary business like cleaning and landscaping to generate more revenue. Also want to invest in my personal rental properties and create good cash flowing portfolio. I split between Texas and Florida. Not sure which state would be better to start this business and live. I visited both states. Got two young kids so also want better schooling and family friendly neighborhoods. Would appreciate any advice.

Jordan Moorhead · Answer

I like Texas for the economic outlook and less natural disasters but I may be biased!

Ryan Kelly · Answer

@Puneet Mahi as others have stated, I would do a deep dive on the markets inside each state to determine where you could have an advantage AND where your family would like to live. The second part is very personal and different for everyone.

Michael McVety · Answer

That is a complex question to answer since both states are large and depending on where you live, quite varied.  I live in Southwest Florida.

There are different areas in Florida such as the Panhandle (near Alabama), Orlando, Ocala, Jacksonville, Fort Myers, Miami, etc... all have different school systems and real estate (i.e. Miami is still doing well, Fort Myers is adjusting and has lower real estate than 12 months ago, etc..)

My simple thought, for what it is worth, is choose a place to live and not invest in:  choose the location you and your family WANT to live in ( because of the schools, taxes, weather, other family there, etc...) and then buy and do real estate there (and get whatever licenses you need once you start third party management).

I wish you well!

Drew Sygit · Answer

@Puneet Mahi what about the required real estate brokers license to manage properties you do NOT own?

Phillip Austin · Answer

Better to live is a very personal question and depends heavily on you and your family's needs and wants. I grew up in Texas around the Houston area and loved it. But it's not for everyone, especially the weather.

Regarding starting a PM business, I would want a less mature market that has a lot of growth potential. There are a ton of PMs in Austin, for example, including a bunch of national and local brokerages so the competition is thick. The volatility of Austin's RE market also presents challenges. However, there are several up and coming thriving communities surrounding the Texas metro centers that may be worth looking into. The same can be said for Florida. Follow the building and migration trends. See where the most homes are being built and where populations are growing.

Bruce Lynn · Answer

PM business from what I hear is pretty tough and competitive business.  I always say no on likes their PM.  They all think they charge too much and don't do enough.  No one understands (except the PM) why it cost $100 to send the maintenance guy to change $3 worth of batteries.  I get it, but customers never seem to understand.   In DFW I think there is probably some demand for STR management.  Rare do I hear of recommendations but I do hear people asking.

I would think in any big city you think about, a visit to a local NARPEM meeting or 2-3 visits would be a great idea.  Meet the players.  Hear the stories.

Good luck and best wishes.

Melissa Haworth · Answer

Hi there! It sounds like you’ve got an exciting plan mapped out, and I love that you’re thinking of starting a property management business while building your own portfolio—that’s a smart move. I’ve worked with a lot of investors and property managers in both Texas and Florida, so hopefully, I can help you sort through the options.

Florida Vibes

Florida could be a fantastic choice if you’re leaning toward short-term rentals. The tourism demand is strong year-round, especially in beach towns like Panama City Beach or Destin. STR-friendly markets make it easier to get started and grow your business, and the lack of state income tax is a huge perk. Plus, if you’re also thinking about a lifestyle element, who doesn’t love living near the beach?

For family life, there are great communities with good schools and a lot of kid-friendly activities. Destin, Santa Rosa Beach, or Niceville (yes, that’s the real name!) are areas worth looking into if you want a balance of family living and business opportunity.

Texas Perspective

Texas is a great market for long-term rentals, especially in cities like Austin, Dallas, or Houston, where population and job growth are booming. STRs are an option too, but you’ll need to navigate stricter regulations in some areas. That said, Texas tends to offer more affordable housing than Florida’s coastal towns, so your money might go further if you’re buying properties for yourself and your portfolio.

When it comes to family life, Texas has tons of family-friendly suburbs with excellent schools. Some areas near Austin or Dallas could be perfect if you want a more suburban vibe with plenty of amenities for your kids.

Starting a Cleaning or Landscaping Business

Both states offer strong opportunities here. Florida’s high turnover in STRs means cleaning services are always in demand, while Texas’s suburban sprawl could keep a landscaping business busy year-round. It really depends on whether you prefer the hustle of managing STRs or the steadier income from LTRs.

My Take

If you’re drawn to the energy of the STR market and love the idea of working where people vacation, Florida might be the way to go. But if you’re looking for a more stable, family-friendly environment with lower costs and a focus on LTRs, Texas could be a better fit.

Since you have young kids, I’d dig deeper into school districts and neighborhoods in both states—family life can really shape where you’ll feel at home. If you’re curious about specific markets in Florida, feel free to reach out. I’m always happy to help brainstorm ideas or share what I’ve seen work for others. 😊

Adam Bartomeo · Answer

Trying to run a successful PMC is difficult but trying to run multiple companies - VR, Annual, cleaning, and landscaping is probably going to give you an aneurism. I recommend focusing on one business and becoming an expert before branching off into others.

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