Starting a property management company

Los Angeles County, California
Managing Your Property
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Starting a property management company

Ahmad Basiri
Member since 2021 · 3 posts · 0 votes

Hello all!

I am investigating starting my own property management company in Los Angeles.

If you were to use my services, what would you like to get, and what services are overrated?

And what would you think is a fair price for the services you'd like to get?

I am looking forward to hearing back from you.

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Sara TalamantesPro Member
Raleigh, NC · Member since 2023 · 13 posts · 7 votes
11mo

I am in process of starting one in NC as well. I can say my biggest issue so far is getting the accounting and all the little details ready. NC laws are very strict accounting wise so I'd suggest making sure you have a good handle on that. I am using REI hub and Rent Redi together so far. The bank I went with is Enterprise Bank and Trust since they have a Property Management specific division. Hope these little tidbits help.

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  • David PeschioBusiness Member
    Richmond, VA · Member since 2019 · 356 posts · 180 votes
    11mo

    I do not live in California but you better look at all state laws and regulations - I know California is very strict and has lots of regulations that can be costly if you are not aware of them.  Making sure you have the systems and expertise to fully support your investors should be your main focus.

    [email protected]804-909-1929
    PMI Richmond4.4297 Reviews
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  • Sara TalamantesPro Member
    Raleigh, NC · Member since 2023 · 13 posts · 7 votes
    11mo

    I am in process of starting one in NC as well. I can say my biggest issue so far is getting the accounting and all the little details ready. NC laws are very strict accounting wise so I'd suggest making sure you have a good handle on that. I am using REI hub and Rent Redi together so far. The bank I went with is Enterprise Bank and Trust since they have a Property Management specific division. Hope these little tidbits help.

    1Reply
  • Nathan Alwin
    Investor · Madison, WI · Member since 2022 · 3 posts · 1 vote
    10mo

    From what I hear, charging from 8% to 12% of gross rents for long term rentals seems to be the standard.  I'm sure it depends on exactly what services you will provide.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    10mo
    Quote from @Ahmad Basiri:

    Hello all!

    I am investigating starting my own property management company in Los Angeles.

    If you were to use my services, what would you like to get, and what services are overrated?

    And what would you think is a fair price for the services you'd like to get?

    I am looking forward to hearing back from you.


     unless you are starting out with 50+ doors under management, it is going to be tough as there are a lot of costs involved in getting it setup and if you are making 8% on a $4k rental that is $320/mo. How many of those do you need to pay licensing, insurance etc. and keep the lights on

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    10mo

    You have some options to get out there and crush at it.. There are a lot of things that need to address for a PM company between compliance with the state, local rent control in a lot of your area you'll be covering, a lot of competition that is in your area, marketing/ads, and so much more. 

    My suggest is that you talk to some people locally that you have met over time, and some connections that you know through friends that can give you insight on what they are doing. I got a guy up in LA that does all apartments and some SFRs, but has been running the PM company for years and charges 5% monthly and 50% of the first months rent. Also, I have another guy that charges 8% monthly and $1,000 for the lease out. These two examples show you that the fee breakdown is very different just in a market you are looking to jump into. 

    Do some digging first and then work on opening your doors once your license is all squared away. 

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  • Kyle Fort
    Property Manager · Miami FL · Member since 2025 · 3 posts · 2 votes
    5d

    Ahmad, I know it’s been a while since your original post, but hopefully you moved forward with starting your PM company. On the services side, one thing I think is overrated is the maintenance upcharge a lot of companies add every single time something gets done. To me, that’s just too much and starts to feel like nickel and diming the owners and can hurt you in the long run. There's plenty of type of services you can offer and you need to figure how that will work with you and clients. Pricing, it will work its way out or you won't have clients. I think Nathan and Peter are hitting the nail though, around 5% can make sense with apartments or a lot of units, while 8% makes more sense with single-family homes and smaller portfolios. It’s definitely challenging, especially in your area, but if you find your niche and get a couple investors or agents sending you leads, it can be done. Good luck, man!

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