How to start my own Property Management Business

Question

Hello! im new here, my names Hunter and I come with two short term rentals and two long term rentals. Id love some input on starting my own property management business to generate cash for more deals. I already manage all of my own rentals with my fiance but im more unsure of the financial part of managing others. I do have an LLC, and have always done my own taxes, but never official book keeping. Any help or advice would be great!

Michael Smythe · Answer

@Jeffrey Smith do you know how many units you need to have under management to make a living at it?

Michael McVety · Answer

Starting your a property management company is not simple.  It does not mean that you are simply "adding" another home or condo or duplex.  Each owner you add will have their own thoughts, expectations and how they would like things done.  So the work is harder than managing your own rentals.

As others mentioned, maybe you could help a local PM company in the area or, of course, you could start a PM company based on your state licensing requirements.  If you start one, you are no longer a landlord but also have to work on all aspects of running a business!  It will be a learning curve for sure.  If you do, join NARPM!  The best investment you will ever make.

Good luck and let me know if I can help you further.

Adam Bartomeo · Answer

Your best bet is to either get a job working for a PM or partner with a PM to build the business.

Jeffrey Smith · Answer

I have a full time job currently that I feel like ive been at too long to quit. I work 12 hour shifts 3 days a week with an early retirement, so i want something to do on the side that will turn into my new job at 40. Would it benefit me to work under someone else now or should i just start slow and keep investing while taking on a few properties.

Sean O'Keefe · Answer

@Lee Dunne your wife doesn't need to be a property manager to qualify for REPS.

Lee Dunne · Answer

My wife and I are also beginning to explore this pathway, having 4 LTR's out of state. We're considering this more out of the benefits for my wife being a full-time mom, to become the PM for our properties, and therefore become a full-time REP. Am I reading this right/wrong!?

I also asked the same question to my CPA, but waiting his response!

Stephanie Michael · Answer

If you are looking to learn the PM business or possibly start your own company you would need to check the laws in your state regarding licensure. I would highly recommend NARPM (National Association of Residential Property Managers) to learn about Property Management. They even have classes and designations you can attain to set yourself apart from other companies. You can always network with other PM's as well through NARPM. It is a wonderful place to learn and grow in the Property Management Industry.

Kumar R. · Answer

@Jeffrey Smith, @Maham Javed, I am a property manager, I am happy to mentor you all to get started. There are a lot of moving pieces when getting into Property Management, do not underestimate the amount of effort or work involved.

Jessica Stinnette · Answer

Where are you located? I agree with everyone on this thread, working with a property management company is going to be hands-down the best way for you to learn everything there is in property management. Similarities to self-management but there is so much more to learn especially if you want to grow your portfolio and add investors, or other landlords into the mix. I would say local property management company is ideal so you learn the legal compliancy, too, BUT we also have many virtual non-local employees that are amazing at their job and have learned a lot in property management even if it's not in the state they live and own their own rental property in.

Madri Koppe · Answer

@Maham Javed I’d recommend starting with your local market to inquire about PM roles. Let them know you’re interested in learning and getting experience and that you have some transferable skills. I’d contact other PM companies or individuals to see how I can offer assistance in any way possible. Best of luck!

How to start my own Property Management Business

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