Property management can be a very successful and rewarding career if done properly. Just like any other big decision you make in life, it’s best to do your research and form a plan before you take action. Otherwise, you might run into some unforeseen problems that could have been avoided. Before you can begin operating, there are a few legal requirements you must fulfill and other things you should take into consideration. Let’s take a look at some below!
1. Obtain Your License
The first thing you need to take into consideration is that many states require you to have a real estate brokers license or a property management license. There are only six states that do not require any licensing (Idaho, Maine, Vermont, Massachusetts, Maryland, and Maine). To obtain your license you may have to meet certain conditions such as two to three years of relevant experience, take courses and pass an exam, and undergo a background check. With the courses and exam fees, this could cost you up to $1,000.
2. Join a Property Management Organization
After receiving your license (if needed) you should join a property management organization. This a great resource to have in your back pocket as doing so will help you network, gain exposure to the industry, and other opportunities. There are fees associated with some organizations, but the fee is worth the investment. Your organization should provide you with industry news and updates, learning and certification opportunities, and access to the new industry-related tools and technologies.
3. Develop Your Business Plan
Before you can begin operating, you will want to have a business model and plan in place. This will help you plan what needs to happen and when something needs to happen. Without a plan, you could be all over the place and easily miss a necessary step or deadline.
Your plan should include:
- Initial company set-up (Including your physical office set-up)
- Business model
- Register your property management company as a legal entity
- Short and long-term goals
- Fee structure
- Contract, emergency plans, and other document creation
- Job responsibilities
- Property maintenance
- Company name, logo, overall branding
- Marketing and advertising (Including website development and social media presence)
- Acquiring and maintaining tenants
4. Take Advantage of Property Management Software
The above-bulleted list may seem like a lot to do, and it can be overwhelming for one person to handle everything. Luckily, there are programs available to supplement this. Use a property management software to your advantage, by streamlining and automating certain tasks. This will free up time for you to focus on more important business functions. There are tons of programs available, so it’s best to find one that aligns with your business needs and goals.
5. Find Tenants
Now that you’ve got your real estate brokers license, registered your property management company as a legal entity, and have your properties ready to go, all you have left to do is find some tenants. You can do this a number of ways from creating rental listings on a number of rental websites, utilizing your own site, social media, word of mouth, referrals, and more.
Ready to take the step in your property management journey? Contact us to learn more about how Filejet can help you form and maintain legal entities.