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How Do I Start A Property Management Company? And What Do They Do?

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David Anderson Profile
David Anderson answered
I suppose my initial response would be if you do not know what a property management company does, why on Earth do you want to open one. The more helpful response would be that you need to understand what type of property you want to manage. There are many types of real properties and each of them are managed in very different ways. For example, the technical knowlege base that you need to manage a high-rise office building is practically not even the same business as managing single family residences. Accordingly, multi-family housing, industrial, retail, strip malls, commercial and virtually every other property type (with consideration to the physical property type, geography, intended use of the property and a series of other material facotrs) are managed differently, require different knowledge bases and skillsets and credentials, in many cases. Your first step is to go get your real estate sales person license and, if your qualify based on your state's requirements, your real estate broker's license. Then, and I belive this is the most important part, work in property management for another firm, so that you have an opportunity to learn from those around you before making embarrasing and expesive mistakes in your own company. Simple mistakes by a property manager that occur because of lack of undertanding of the role and responsibility of a property manager can be considered negligent and possibly even gross negligence, which can open you up to all kinds of liability!
If you absolutely insist on jumping in head first, I would suggest that you start with a property type that has fewer involved parties, simpler facilities to manage/maintain and significantly more elementray accounting requirements. For example, manageing a couple of single family residences is probably the safest way to get your feet wet. Be careful, though, your misaction or lack of action can get you and the property owner into deep water. Lack of knowledge or education is no excuse from liability in the eyes of the law - or any tenant in the space. Keep in mind that, unless you are managing properties that you own, a real estate broker's license is required of a property management company. You can get away with a real estate sales person license if you are working for sombody else, though. This is based on California's situation. I understand that other states are setup the same way, but you definitely want to make sure that you understand the state and local requirements.
Anonymous Profile
Anonymous answered
Can a management company charge what they want to or is there a law to a certain threshold for charges
and how easy is it to start up one and once a management company is appointed can the owners elect to change it please. Look forward to hearing from you 07929 126 534. Sandie.
Yooti Bhansali Profile
Yooti Bhansali answered
Building a successful company is completely doable if one makes proper use of one's resources. Here are tips on how to do so:

Get a concrete plan in place. List down all the obstacles that you are likely to face and think about how you will overcome them. Also make a list of all the resources that you will need to employ for your business plan.

Consult someone who has experience in the field. Employ a dedicated team of individuals who understand the business and its goals. Train them in the effective functioning and implementation of objectives.

Gain a proper knowledge of the real estate market; you should be aware about the changing trends in property management so as to set an example for your employees.
Anonymous Profile
Anonymous answered
Yes, I agree with the other poster here. You ought to find out first what property management is all about before you consider entering the industry. The property management companies work on behalf of the landlord and accept rents or response to the maintenance issues raised by the tenants.  In a word, they assume the role of the landlord who wants to distance himself from tenant issues.You may check out the property development courses   to acquire the necessary knowledge about the property management industry.
Anonymous Profile
Anonymous answered
Both a viable business plan and experience of the industry are required in making a property management business successful. During the current recession, many of the property management companies has suffered in terms of business losses. Hence, it is important for one to understand both the pros and cons of the business before taking it up as a career. Enrolling yourself on a property course can help you in gaining both knowledge and experience of the market.
Jordan  Muela Profile
Jordan Muela answered
I suggest working as an assistant to a property manager if this is something that you don't have any experience with. If you do have experience then I would suggest reading some books on establishing your own company. You can find good reads on the subject at amazon.com

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