Steps to Starting a Property Management Company
Starting a property management company is an ambitious goal. With all the work involved, it may even seem like an impossible task. If you’re thinking of starting a property management company, check out these steps to make the process a little easier.
Step 1: Learn About Community Management
Before you jump in and start creating a company, it’s beneficial to make sure you know all about the business. Learn everything you can about how to successfully manage a community and what skills are necessary, such as leadership, communication and motivation. Don’t forget to check the laws regarding managing property, especially the Fair Housing Act.
Step 2: Create an Entity
When it’s time to actually create your business, you need to create the legal entity. While there are many different types of businesses, most property management companies are limited liability companies. To create the entity, you’ll need the appropriate paperwork and money to pay for the fee. Don’t forget to ensure you have any necessary licensing for your state.
Step 3: Build a Plan
Don’t run out and start finding clients yet. First, you need to create a plan. You’ll be competing with a lot of other companies, and since your business is new, you won’t have the experience these other companies have. Instead, you need to wow potential clients with your management plan. This plan involves everything about running a property, including what your maintenance guidelines are, how you’ll deal with difficult tenants, who your vendors are and everything in between.
Step 4: Find Some Clients
With a genius management plan, now you need to start finding clients, which means it’s time to start networking. Join real estate investment clubs, workshops or anything relevant. This will help you meet people who can directly offer you business, or refer business to you. Some of the best people to get to know are real estate agents who work with investment properties and hard money lenders.
Step 5: Attract Residents
Last, you need to get some residents into the property, which seems easy. However, you don’t want just any residents. You need to find the right residents, which means finding people who won’t destroy the property or harass the neighbors. Running background checks and requesting references is a great way to help spot the good tenants from the bad ones.
Creating a property management company is like creating any company. You need knowledge, a plan and some good clients.
To learn more about AtHomeNet, click here.