If you have a passion for the rental property business and a keen eye for detail, you might have what it takes to open a property management company. Such businesses allow a landlord to turn over the duties of overseeing a piece of real estate to a professional organization. Making a management company successful requires the ability to multitask, knowledge of both single-family and multifamily units, and a high level of patience when dealing with problem tenants.
1 Get the proper license to operate a property management company in your state and, if needed, your municipality. Each state will have an agency that handles business licenses, which must be secured before you open your doors.
2 Build relationships with contractors. You must have a trustworthy repair team whom you can call on to fix things at a moment's notice. Remember that the reason clients hire you is because they do not want to deal with issues such as toilet repair, painting of rental units, and annual inspections.
3 Prepare a list of the services you will offer. These should include collecting rental payments, finding tenants, screening would-be renters, and handling background checks for potential renters. It could also include maintenance services such as lawn mowing and landscaping.
4 Advertise for clients. You can take out classified ads in print publications such as newspapers and trade journals, or use one of the free online portals to attract business. Network in the real estate industry, and hand out business cards to prospective clients.
5 Prepare service contracts for your clients, ideally with a lawyer's help. These documents should clearly state the duties you will perform, fees you will collect, and the exact times you complete each management task. When terms are put in writing, each party can refer to the actual contract in the event anything is not clear. You should require the paperwork to be completed before any money changes hands.
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