How to Start a Property Management Business in California
Starting a new business presents challenges, rewards, hazards and financial risk. Opening a new California property management company is a brave act in the volatile California estate market. Many management companies have failed. However, if you are ambitious, ready to work hard, and invest time and money in yourself and your business, fortunes can still be made by managing other California investors' properties.
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Instructions
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Obtain a California real estate broker's license. In California, a real estate broker's license is required for all persons or companies that receive compensation for real estate services or management, including anyone who rents or solicits listings for rental properties for prospective tenants. Any person who negotiates the sale, purchase or exchange of properties for others must have a valid real estate license. Contact the California Department of Real Estate for complete licensing information and a schedule of classes and state-approved license exams (see Reference section).
Classes and continuing education training are available at state or community colleges, at vocational schools and from real estate schools on the Internet. Contact the California Real Estate Association (see Reference section) or your local real estate board to find approved classes in your area.
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Gain experience and credibility by working for a major property management firm. Many banks, mortgage brokers and insurance companies have in-house property management departments.
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Select your area of expertise. The majority of property management companies specialize in selected sections of the real estate market. You may choose to manage vacation rental properties, commercial retail space, office buildings or warehouse space. Know your market and research competitive companies to determine if there are enough properties in need of management to build your business.
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Network. Talk to friends, family and business associates and ask for building referrals. Join the local chamber of commerce or social networking groups to make acquaintances and promote your business.
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Join Internet websites that list and promote property management companies in your state. Firms such as All Property Management (see Reference section) provide California property owners with a list of property management companies in their areas of interest.
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References
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