How useful would forming a property management company be

Question

If you are a business owner in rental properties, would it be helpful to create another business specifically for property management? How would you automate it? Who would you hire?

Nathan Gesner · Answer

You don't need to be licensed or to create a business to manage your own rentals unless you have a large number. In most states, you can hire someone to manage your properties as long as they are a salaried employee and they are only managing for you. That's probably all you need is an employee to help out.

Ben Raygor · Answer

@Owen Thornton Having a property management company might provide some amount of legal and administrative benefits. However, you would also be adding legal and admin complexities in different ways.

This is generally not a question I see investors reasonably spending much time considering until they have a larger rental portfolio. Even then, the appeal of adding your own PM company to the mix will depend a lot on your involvement in your rental portfolio.

Matt J. · Answer

@Owen Thornton I don’t have the answers to your questions but wanted to add you might want to check with your state to see what the legal requirements are. I know in WA that you needs to have a Managing Brokers license as part of/to run a property management company.

How useful would forming a property management company be

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