Registered: 1495040004 Posts: 1
Reply with quote #1
Ive just finished college, and am looking to get into the property management business. My parents own real estate, and I am planning on following suite once I have the capital necessary. For now, I am interested in starting, and operating, a property management company in Wisconsin. While probably not the easiest of professions, this will give me hands on experience with dealing with tenants, along with meeting others who are in the field that I wish to pursue. After doing some research, I've loosely come up with these numbers:
8% for rents <$1000mo 7% for rents $1001--$3000mo 5.5% for rents $3001mo and over Along with this structure, I was planning on charging $22.00 an hour for work that I have to complete myself on the units, with there being no fee on repairs that I do not complete. Furthermore, I was thinking that 50% of the security deposit seemed fair for advertising, and renting, any apartment with that fee being refunded if the tenant makes it less than say 6 months. How do these fees seem? They are less than what most other companies change in the area, and I know that I would provide better service. Furthermore, I ran the numbers and these numbers would also be profitable for me, but is there anything I am missing, etc? Any help or knowledge would be greatly appreciated Thanks, Andy
Registered: 1472494503 Posts: 441
Reply with quote #2
With any business, it is best to start by working for someone else in that business. Sure, you won't make as much money those 2-3 years, but you will get first-hand experience at how that business operates. Your growing pains will be fewer, faster, and on someone else's dime. You will see how they do it right, and learn first-hand how they do it wrong. What you learn from that experience will be worth more than the reduced pay you might experience (assuming you would actually make as much on your own with no experience and no reputation as you dream you will make).
Then split off on your own.