Building "another PM" company. Could use the professional advice!
My proposal is quite basic.
I currently own and manage two properties ( 4br/4bth). They are both condos in the same building, not a difficult tasks. I do everything my self, and it takes about 20 hours of work a year to gain a 10% return. I am able to be a hands-on type LL due to my close proximity of the campus.
As I have began to research other proprieties in my condo, I noticed that a minimum of 65% of owners lived out of state. This can be explained very simply, out of state students who have families able to purchase a house wil in turn make a much better investment.
But, a guy living 6 states away doesn't want to deal with the difficulty of managing a property that far away. Usually makes sense to sell, some still rent.
I want to provide a quasi-co/op property management service. I would provide tenants with the amenities that the large corporate groups can afford. Stretching one service among the same place is a win win for everyone.
So I really am just hoping to gain insight into the world of a PM company. Tenants are not difficult to find, our supply of housing has far exceeded demand thanks to a dip in enrollment after the recession. This year the university had the highest enrollment in history with next year projected to be even higher. College students are great, tenants I think.
My Goal is to start very small, only catering to properties that I know very well. The condos in the building could be easily maintained as they are all fairly new. Anyway, this is a ramble and if you have read this far then thank you!
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What are the laws in your state around property management? In my state, a property manager must hold a brokers license, which requires 3 years of licensing as a real estate agent first.
These types of licensing requirements may not exist in your state, but it's something to look into...