Learn How to Start a Property Management Company
You’re interested in setting up a property management company, but you aren’t sure how to go about it. You know you need to do it the right way, so you don’t run into any problems down the road. Follow some tips to start your property management business.
Choose the Legal Structure
Before you engage in property management in Huntington Beach, you need to choose the legal structure of your business. Most property management companies form LLCs, S-Corps, or C-Corps. If you are not sure which is right for you, talk to your accountant.
Get the Necessary Licensing
If you are going to run a property management company in Huntington Beach, you need to obtain the proper license. The state requires that property managers have a real estate broker’s license. The only exception is if they work under someone who has such a license.
Familiarize Yourself With Local Laws
California has various laws regarding property management. For example, every property you rent must meet the minimum habitability standards. You also must meet the guidelines regarding rent.
Governor Gavin Newsom passed a rent control bill in 2019, stating you cannot raise the rent more than 5 percent (plus the cost of local inflation) each year.
Familiarize yourself with all the laws, so your company is in compliance. If you break any laws, your property management company will have a bad reputation and will have a hard time getting new clients.
Choose Your Pricing Structure
Your property management company will use a pricing structure to make money. This includes the:
- Onboarding fee
- Leasing fee
- Lease renewal fee
- Management fee
- Late fees
- Maintenance fees
- Eviction fees
Find the balance between making a profit and still attracting customers. Once you create your pricing structure, put it in writing. Then you can refer to it when you talk to new clients.
Choose Your Staff
You probably can’t take this on as a solo venture. You will need some staff members when you open your doors, and you will need to add to the staff as your company grows and takes on more clients.
First, hire an accountant and real estate lawyer to help you manage your business. You will also need contractors you can use to maintain your properties. You need people who can handle every aspect of property maintenance and repairs, from the roofs to the floors. When you grow, you can add a property manager to your business.
Get Office Space
Next, you need to set up your office space. You can choose a home office if you’re trying to work within a tight budget. After you expand and get more staff, you can move to a new office outside of your home.
Even if you choose a home office, you need to fill it with the necessary equipment. That includes a computer, copier, fax machine, and other tools. Also, get a dedicated phone line for your office. This should be separate from your home phone line.
Set Up Your Website
Your virtual office is just as important as your physical office. Set up a professional website that you can use to attract people to use your business. Include a contact form that people can fill out to request additional information.
Build a Local Network
You need to do some networking to generate business. Join a local organization for property managers. Also, go to events where you will meet real estate professionals. Bring lots of cards with you to hand out at these events. You’d be amazed by how many referrals you can get when you build your network. Yes, it takes hard work, but if you put the effort in, your new contacts will send people your way.
Market Your Business
Finally, engage in some marketing to attract business. The internet is an excellent tool for attracting business. You’ve already set up a website. Now, run advertisements to draw people to your website. Also, set up social media networks to connect with potential clients.
Get Help From an Established Property Management Company
While you could follow these steps to start a property management company, you could also take the easier route and hire West Point Property Management, Inc. The company is already established in Huntington Beach and can handle your property management needs.