Are you considering starting a property management company in Anne Arundel County? We have some tips and advice on starting a property management company. Starting a PM company is like starting any other small business; however, there are some additional education and training we recommend to be successful in doing so.
Understanding Property Management in Anne Arundel County
Before getting into the property management world, it is crucial to understand the industry! Property management is a sector of the real estate industry that involves managing one or more properties for landlords/ rental homeowners. Typically, property management involves all the necessary tasks of running a successful rental property. Some of these items include; property finances and budgeting, marketing, leasing, collecting rent, evictions, and maintaining the property.
A reliable property management company has leasing staff, property managers, and contractors for maintenance and repairs available. Also, a good property management company must have the proper software for rent collection, keeping track of prospects, managing finances, and more. This company also needs to have legal knowledge of how to run properties, set rents, evict when necessary, etc.
What Does a Property Manager Do? How do I Become a Property Manager?
What does a property manager do? A property manager takes care of all the tasks we mentioned above. They generally manage a team of leasing professionals and help keep renewal rates high and evictions low. This person likely has a background in leasing or real estate. Daily tasks may include; interacting with tenants, scheduling maintenance, checking in with leasing staff, and managing third-party vendors.
If you are looking to be the property manager at the company you start, what do you need to do to become one? Generally, to be a property manager, you need at least a college degree and some training in the property management/real estate field. In the state of Maryland, you do not need a broker’s license to be a property manager.
However, acquiring a property management license and brokers license are both relatively straightforward. You will be required to take a certain hours worth of coursework in both and pass a test to get certified. Although doing so isn’t necessary, it is a great learning experience and will make you more qualified than other property managers out there.
How to Start a Property Management Company
As previously mentioned, starting a property management company is similar to starting any other business. See the steps below:
- Learn the state laws and requirements for running this type of business. Check for business insurance policies and required.
- Come up with a company name and register it is an LLC. Once your company is legally established (contact a lawyer if needed), you can secure office space and list the address.
- Open a business banking account and consult a financial advisor to come up with a budget and plan.
- Get educated and licensed in real estate and property management. While not necessary to have a property management company, it is highly recommended.
- Hire a staff to help lease properties and manage other aspects of the company for which you lack the necessary skills such as finances or vendor relationships/making these relationships.
- Once the company is ready to open, start marketing. Digital marketing is huge right now, so have social media accounts and business listings on all appropriate sites. Hire an SEO company or professional if it is in the budget. Doing so will guarantee exposure.
- Finally, network and generate leads! One client is a great start. Eventually, you can continue to build a network of clients and references.
Those steps are a general overview of what you will need to do to start a property management company. However, of course, a lot more goes into creating, running, and growing a company. Consult a business advisor or other members in the property management world before going ahead with anything to be sure that the company can be successful.
Tips for Running a Property Management Company in Anne Arundel County
Now that you are a property management business owner, here are some tips to keep everything running smoothly!
- Communication: Always stay in good contact with tenants, the landlord that hired you as well as your employees. The best way to keep everyone happy and run a good company is communication.
- Keep Current: Stay current on industry laws! Always be learning, growing, and changing. Keep up on the industry through reading, attending seminars, and networking with other property management professionals.
- Budget: Stick to your budget for all things, and go under when possible. Going over budget will minimize the profit margin you make for both yourself and your client.
- Policy & Procedures: Have procedures in place for screening prospects as well as rent collection and property inspections. These three items are essential tasks for a property management company and will help ensure good tenants that pay on time as well as properties that are well maintained.
- Outsourcing: Outsourcing can be better than hiring an employee. Make good relationships with cleaning, maintenance, lawyers and tax professionals and outsource to them as needed to remain successful.
- Technology: Using technology will keep you organized and efficient! There are plenty of technology and property management software programs out there to help property managers stay organized, collect rent, run screening on tenants, and more. Use these, don’t attempt to do everything manually and on your own.
Are you a landlord looking to learn more about property management? Bay Property Management Group Anne Arundel County leads the industry with cutting edge technology and full-service property management. Contact our team of Anne Arundel County property managers to get a free property analysis and advice on how to get the most out of your investment property.