Starting a property management company requires a good foundation and a lot of preparation. Every day, I talk to people who are planning to get into this business. They ask me what they need to know, and there’s actually a lot that needs to be done. Today, we’re covering the basics so you’ll know where to start.
Decide What Kind of Company You Want
The first thing I ask people is: what do you want from your business? Other questions I ask include:
- What kind of company do you want?
- How do you envision yourself a year from now?
- Do you want to be a boutique property management company?
- Or, would you rather be a large company?
- Are you working for investors?
What do you want?
Research Your Market
Once you have established what you want, you need to research your market. Decide how you will set yourself apart from your competitors. Figure out the strengths and weaknesses of your market, and research logistical things like licenses. Not all places require property managers to be licensed, but here in California, you do need a license. Check on the insurance requirements as well. Once you get these things into place, you can start building your company.
Establish a Foundation
Finally and most importantly, you need to get your foundation in place. Put together a policy and procedure manual. Write up your property management agreement and put together a lease. You need basic forms so you can roll out your marketing plans and start meeting with new clients.
At PM Made Easy, we have products that can support you in all of these areas. If you have any questions about how to start a property management company, please don’t hesitate to contact us at PM Made Easy.
Disclaimer: PM Made Easy does not represent the article content in this website as legal advice. It is shared information only and up to the reader to use this information responsibly, seeking legal advice as necessary to their business.
Kathleen Richards, is the owner of PM Made Easy and The Property Management Coach. With her 12 years as a broker/owner of a property management company she speaks from experience. She authored Property Management A-Z and teaches regularly at community colleges and conferences on property management topics. She is active in her field and holds professional designations as Master Property Manager (MPM®) and Residential Management Professional (RMP®) from NARPM®. Kathleen has served at the local and state level on the boards for NARPM® (National Association of Residential Property Managers).