Looking To Start A Management Company
I am looking to start a management company in Philadelphia PA and wanted to first learn how to manage properties. Anyone know of a course or book that can start me on my way. After learning the basics, i wanted to know do you need a license to manage properties that you don't own, or is it as simple as setting up an LLC and getting clients.
Does anyone know of a good website or resource for this? Any intelligent and helpful responses are appreciated.
MImi
Look up local real estate rental management association- kind of like a board or association for realtors. There are many books in your library and online but-You will need to learn a variety of things which aren't all book learning- handyman maintenance skills, people sales skills, how to read a credit report, accounting....
maybe get hired on to a company that already exists and learn some of the business tools from a pro... best wishes cg the-loanlady.
If you want to be a property manager for properties other than your own you will have to be a licensed RE Broker. You can not negotiate terms of leases or sign a lease for a client w/o your broker license. This is a federal law. You should start by checking with your states Realtor association for RE classes. Then go from there.
I'm not sure that you have to be a licenesed broker. In OR you have to be a licensed property manager, not a broker. I took the state designated course through a local CC. I don't remember learning that it is a federal law that you must be licenses in order to negotiate and sign leases on behalf of owners. I think it varies state to state.
shouldnt you first learn how to manage properties before you start a company doing it??
or do you plan to get on the job training :-D
My understanding is that in PA, individuals doing property management must have at least a sales license and be supervised by a broker. There must be an individual with a broker's license serving as the broker of record for the entity (company, corporation, etc.) if it is not structured as a sole proprietorship.
This is for the most part state specific and you should consult an attorney for the best advise. You will likely have to obtain some sort of license and work under a broker but not all states are this way.
GOOD LUCK.
So why do you want to start a management company anyway.
Manage: to guide or handle with skill or authority; control; direct
To manage sucessfully takes real time & effort. A certain nack for seeing behind the obvious. As well as tenacity to see things thru to completion
Ccmmercialking, I plan to buy alot of rentals and want 2 of my family members to manage my properties so that I don't have to. I want to keep as many resources for my real estate business in house. They will be managing my properties only. I know that you can manage your own properties without a license, but I will not be managing my own properties.
There are not alot of good management companies out their. I will ba able to have full supervision on what is going on. Most imprtantly, I trust them to do well. ALso, in response to what someone stated about me starting a management company without knowing how to manage property, no disrespect but if you reread my initial post it states that I wanted to get a source, course ,book , or tape set on how to first learn how to manage properties and then learn what I need to set it up. I thank everyone who took the time out to respond intelligently .
Thanks
Mimi
Well Mimi, sounds like you've a fairly well thought out plan. Keeping family members working is an excellent reason to have a management company. As someone who has both owned and run management companies I will give you some advice:
Management companies don't make a lot of money and there is a lot of day to day work involved. But they do make it possible to make a lot of money in related activities. They frequently cover all the expenses of office space, secretaries, equipment, phones, etc for the brokerage companies to which they are attached. This makes a lot of sense because management contract money is slow and steady money-- most management contracts call for the manager to get a perecentage of the rents collected each month so the cash-flow is pretty steady. In addition most mangement contracts have a clause that if the owner decides to sell he will list the property with the management companies brokerage arm, thus creating a second revenue stream.
The best management courses are taught through the Institute for Real Estate Mangement which is attached to the National Association of Realtors. They offer a couple of professional designations which are roughly equivalent in complexity to a college degree from a so-so school in terms of difficulty to achieve and added monetary value to a carreer.
Property management money is get-rich-slow money. Its not as exciting as quick flips, etc. but if you train your staff well it gives you the freedom to pay your bills even when you aren't working.
As with Commercialtaliking, I have also owned and run a RE mgmt. firm. The advice given is accurate to my experience. Prior to moving forward with your venture, consider the following.
1) Insurance costs
2) Liability and legal exposure
3) reconsider #'s 1 & 2
4) emergency coverage
5) Spell out charges- include an hourly rate for general time.
6) Do not include all your services under one fee.
Good Luck!