Difficulty: Moderately Challenging
Step1
Have a centralized location to conduct business. Treat the property management business as its own entity. Don't try to mix it into your everyday life. Have a separate office designated to the business. Start at home and then move to a commercial building as your property listings and demands require.
Step2
Maintain relationships with several contractors and specialists. Plumbers, electricians, HVAC professionals, realtors and rental agencies will be essential to your business. Maintain a working list of contacts with multiple listings of people with different skills. Have an emergency contact list as well.
Step3
Set up the finances. Go to the bank and open a small business banking account. Hire a payroll company or buy computer software to do your own payroll. There are several software programs available for each level of computer experience. Try Microsoft's Office Small Business software. Call Suntrust Bank for online payroll services. Stay on top of your books and have a journal where every transaction is recorded. Keep the books and banking information in a fireproof safe or a safety deposit box.
Step4
Incorporate the property management business. There are liabilities involved in managing other people's properties and your own. When a disaster happens, people sue everyone associated with the transaction. Incorporation will insulate you from lawsuits to some degree. Contact a business planning lawyer for the most protection. For a few hundred to a few thousand dollars, you can be heavily insulated.
Step5
Maintain contact with your tenants. A tenant is legally in control of the property, but you can know what is going on in the home without being nosy and invasive. Maintain a friendship like relationship. Ask if they need anything. Let them know you want to update things regularly or fix things. By doing this, you can get legal access to the property and know that it isn't being abused.
