How to Open Your Own Property Management Company
Starting a property management company is good way to get involved in the real estate business without needing a license or a lot of investment money upfront. If you don't mind being on call 24 hours a day, like to solve problems, are well organized and enjoy working with people, property management could be a lucrative business for you, whether or not you have your own rental properties. As a property manager, you will advertise rentals, handle repairs, deal with snow removal and landscape maintenance and interview potential tenants.
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Instructions
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Find out if you need to have a license in your state. Look on your secretary of state's website to determine this. In some states, if your duties will include signing a tenant's lease in place of the building's owner, you'll need a broker's license.
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Set up your office. If you do so in your home, you'll need a phone (or separate, business-only cell phone), a scanner/printer/fax machine and a computer with Internet connection.
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Design and print up business cards and a brochure describing your business. This can be done inexpensively online, or you can have it done at your local printer.
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Consider getting bonded, as you may deal with large sums of money at one time that doesn't all belong to you.
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Join a real estate investment club and your local chamber of commerce. Networking with those who own property and invest in it is the best way to get clients.
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Get to know local contractors, lawn maintenance companies and others who work in property service businesses. You will need their help often when managing a property, particularly if you don't intend to do all of the labor yourself. Ask property owners for the names of contractors they trust, and reciprocate by giving out the names of competent workers you have found.
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Establish accounts for your clients either within your own bank account or as separate accounts. If you are taking the rent money directly, make sure you have an accounting method in place to accept the rent and deduct your charges before sending the remainder to the building owner.
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Interview potential tenants extensively before renting them an apartment or house. Follow your state's laws regarding tenant/landlord relations and discrimination.
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Check the background and credit of potential tenants, no matter how much money they make.
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Keep your phone on at all hours, or hire someone with whom you can take turns being on call. If there is a fire, water pipe break or other emergency in one of the apartments or homes you manage, it will be up to you, not the landlord, to solve the problem.
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References
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