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Updated about 9 years ago,

User Stats

28
Posts
0
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Jeff S.
  • Ferndale, MI
0
Votes |
28
Posts

How Do I Start a Management Company?

Jeff S.
  • Ferndale, MI
Posted

Broad question, right? Yes, I know. But lets get specific. I'll try to be as concise as possible.

I and a partner (Paul) own 6 rental properties. Our company has teamed up with another investor (he owns 35 more with various partners or solo) to buy 14 more SFRs. His name is Brent.  For those scoring at home, that is a total of 55 houses, all self managed. 

We also have friends with properties in need of management and a lack of management companies in the area.....

So....logic would say there is a business opportunity there. Brent has a crew, a warehouse, gobs of tools, and a steady stream of people calling for rentals, work done at their rentals, and people dropping off cabinets, toilets etc (warehouse is next to recycling center... sweet huh?). Brent is also too busy to handle office work, menial tasks etc. I happen to love menial tasks and organizing, paperwork etc. 

So, where would people recommend we go from here?

Form an LLC to handle management duties?

Start pounding the pavement building a portfolio of properties to manage? 

How do we set fees? 

Can we "hire" our new company to manage our existing rentals?

Any other suggestions?

Brent and I would be the only ones involved in this, all others are passive investors.

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