Property Management Start-up in Kansas City

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Property Management Start-up in Kansas City

Brent Kiger
Kansas City, MO · Member since 2013 · 131 posts · 64 votes

Good afternoon BP,

I'm considering starting my own property management company in Kansas City. I currently own and self-manage a medium sized portfolio in KC, and am looking for ways to increase revenue. I came across the property management company idea by having a few investor friends suggest I should start a PM company since I self-manage and know what it takes to manage well. That combined with there being a massive demand for reliable, trustworthy and communicative managers seems to be the perfect storm for entering that market.

I understand the difficulties of property management from my own portfolio and understand its no walk in the park. However, I have always enjoyed navigating those waters and solving problems. My tenants have often mentioned the difficulties they've had with previous managers and I see a pretty big opportunity here. 

I'm looking for anyone else who has been in my similar situation and decided to start their own company to manage not only their own properties, but properties for others as well. Curious to your experience in doing so, and some things to look out for that maybe don't appear quite so obvious.

Curious to the community's thoughts, and thank you in advance. Looking forward to hearing from the group.

Brent

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  • Kenny Dahill
    Investor · Tempe, AZ · Member since 2018 · 1k+ posts · 731 votes
    7y

    Hi @Brent Kiger, best of luck starting your firm.

    I'm not a property manager but a few things I've learned from my experience dealing with hundreds of managers.

    • License:  You will need to confirm with your local regulations to determine any licensing and insurance requirements.
    • Criteria:  Property management typically falls into 2 strategy categories: anywhere-everywhere or selective.  Before you get too many units thrown your way, determine what your preferred strategy will be regarding the location of properties.  It can be by zip, neighborhood, town, or even the asset type.
    • Growth:  How do you intend to grow your portfolio of assets under management large enough to cover business expenses?  A lot of managers prefer not to pay for any type of marketing, relying completely on word of mouth.  Others decide to pay for marketing/leads whether it is AllPropertyManagement, Thumbtack, Burbz, and even Google Ads.
    • Systems:  You will need to organize your own business systems that will allow you to grow to whatever level is ideal.  That might require you paying for PM software or hiring out certain services like leasing, maintenance coordination, etc.  This will dictate how many people you need to hire overtime for your firm.  There is enough technology that you could grow to a decent size by yourself and utilize web apps.
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  • Brent Kiger
    OP
    Kansas City, MO · Member since 2013 · 131 posts · 64 votes
    7y

    @Kenny Dahill Thanks for the input. All good points to consider. I appreciate you reaching out. I had not heard of Burbz before, but it looks quite intriguing. The reason I like it is the same reason my firm will do well. I believe there is a shortage of high quality managers and it looks like Burbz helps bring excellent managers to investors who require quality service.

    Thanks again for reaching out. 

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    @Brent Kiger I'll jump on board and say you may have to work under a Broker for a couple years before you can break out on your own. I would try to find someone to work under that wouldn't take a huge chunk of your income until you can start your own company.

    I also recommend you join NARPM. This is a group of professionals that hold themselves to a higher standard, as you apparently already do. It's worth the money 10x over because we are all very open to helping others grow their businesses. It's the best money I've ever spent!

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