Advice on new business

[Ernesto Gaxha]

Hi All, 

I'm a new landlord in the Boston Area, and am also trying to start a property management business focused on small landlords with 1-4 properties who might otherwise not be interested in property management. 

I was hoping to run an informal poll on this forum on my core business idea to gauge the interest out there. I'm essentially going to rent (pay for) 2-5 bedroom units from local landlords at full price, and then sublease those rooms out at a markup (I wouldn't charge tenants broker fees and I'd give them flexible leases to justify the markup, among other things).

To the landlords, it would essentially be guaranteed rent from a trusted company, along with free tenant screening and property management (i'm trying to make it as appealing as possible to landlords, as you guys are generally hard to sway). 

What would you think if someone proposed this to you? Anything about the business model you'd be worried about? Honestly any commentary would be super helpful. 

Best,

Ernesto 

[Sam Shueh]

Suggest that you check your state real estate law. To my knowledge all property managers need to become real estate broker( not realtor) in that state with specific E&O business insurance (a few K a year). The equal housing law is so strict that most real estate brokers clearly stay away managing properties. It is OK to manage your own properties carrying extra liability insurance.