Looking at the cost of the average house, it’s clear that real estate is only on an upward trajectory these days. Over the next 10 years, experts estimate that the market will double in value.
As the saying goes, get in while the getting is good. There’s no better day than today for starting a property management company.
But while it can be a lucrative business opportunity, there are a few startup tips you should know. Funding a business and venturing into managing properties is easier said than done.
Join us as we discuss the main things you should keep in mind as you start your business in real estate properties.
Before Starting a Property Management Company, Get Your Licensing
It probably comes as no surprise that anybody who wants to deal in real estate needs the proper licensing to do so. This will depend on how much you want to be able to do. If property management is fine with you, then you just need to get a property management license.
This will require you to take some coursework and an exam. You will get your license via your state, which will allow you to manage properties in that area. You may need to get additional licensing if you move to another location.
If you plan to purchase and sell properties, then you will need to obtain a real estate brokerage license. It can take some time to get this license. If purchasing, reselling, or else brokering houses will be part of your business model, consider getting this license now.
Find the Right Business Software
A big part of your new job as a real estate manager will be recordkeeping. Thanks to modern technology, you can handle all of this with cloud-based software. Spend some time choosing the right business software for you.
Many companies will bundle all the software you need into a single platform. For example, BAS Yardi Voyager Training. In most cases, you will be paying for a subscription model service.
Prioritize software that keeps your security in mind. You will often be working with sensitive documents that need protection. Ideally, you will only use software that has end-to-end encryption to store all its data.
Get Your Finances in Check
It goes without saying that properties are expensive, and so are all the costs associated with maintaining them. If you can, set aside some money ahead of time to prepare yourself financially for this career lifestyle.
Consider making your business into an LLC to reduce your tax burden and liability. Open business-focused bank accounts to manage all of your finances.
Become a Property Manager Today
Starting a property management company is no small feat, but it can be an incredibly rewarding and profitable venture. If you do decide to start your property management business today, then keep the above startup tips in mind. Work on funding a business, getting your licensing, and finding the right business software for your needs.
Visit our blog for more essential property management tips and tricks.