5 Tips To Starting A Property Management Company

For someone with a background in real estate, or even someone looking to begin a career in an entirely new field, starting a property management company can seem like an enticing prospect. Beyond obtaining a real estate license (a requirement in most states), there is often little initial investment necessary, especially relative to the large returns that property management companies can bring in. But as in any other industry, success doesn't come automatically.

Consider these five tips when planning to start your own property management company.

Location, Location, Location

Many landlords hire a property management company because they are located too far away from their properties to handle everyday management tasks. When thinking about setting up your own company, plan to open your offices in a central location that can easily serve multiple prospective properties.

Networking

If you've gained experience in the real estate industry, then you know how important networking is to achieving success. Finding the first few clients can be tough, but aspiring property managers who reach out to a number of sources should find their efforts rewarded. Contact fellow real estate agents and local business organizations, as well as contractors who may know property owners personally.

Availability

Landlords often look to hire property management companies to reduce their own workload and the stress and hassle that comes with it. They will demand that you communicate quickly and effectively both with them and their tenants to ensure that problems are addressed promptly and concerns are related directly. To this end, make sure your offices, whether at home or elsewhere, allow you to communicate at all times by fax, phone, and email. A copier and scanner are also necessary.

Initiative

When necessary, you should never hesitate to communicate with a particular property's landlord. That said, keep in mind that a landlord is looking to hiring a property manager to take over the ''hands-on'' aspects of management. Take initiative to solve potential problems before they become huge headaches, and only involve the landlord if the situation absolutely requires it.

Hiring Contractors

Being hired to manage a property doesn't mean you'll be doing all the work yourself, of course. You'll need a solid network of trusted contractors to perform necessary maintenance across multiple properties during all hours and days of the week. Negotiate contracts with your maintenance staff well before beginning to manage your first property for additional peace of mind.