Basic Essentials for Starting a Property Management Company
Your property management company's whole structure is built on a business strategy. The goal is to plan out every part of your business from the start-up to the break-even point. A formal business plan includes the following elements,
·Organization and Management
·Service or Product Outline
·Marketing and Sales
If you want to set up PMC, your company needs to be licensed, meaning your company needs to be regulated by one of the government-approved redress schemes. The approved schemes are The Property Ombudsman and Property Redress Scheme. If you cannot provide your license and you act as a PMC, you are facing a fine of up to £5000, and you can be banned from performing your duties. While certificates aren't necessary, they can help you grow your firm. For example, a certified property manager possesses a real estate broker's license and has completed a property management curriculum.
Types of Licenses
Real Estate Broker’s License: Includes taking courses and passed the exam that covers property management as well as related topics such as insurance, taxes, and contracts.
Property Manager’s License: This license also requires coursework and an exam.
Filing Your Property Management Company
You must file your business for tax purposes and select a legal entity. This is crucial in order to keep your personal assets safe and distinct from your business. The majority of property management companies are organized as LLCs, or limited liability corporations, although S-Corps and C-Corps are also viable options that provide additional legal protections.
Organizing Your Finances
Have you set a revenue goal for your first operating year? If you don't have one yet, start thinking about it—it should be already included in your business plan. How much money do you anticipate making? What are your projected costs? How much money should you save aside in case anything unexpected happens? Keep all of this in mind when you begin to plan your company's financial future.