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.
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.
