Learning how to start a real estate property management company in Las Vegas is a wise decision. The Las Vegas market is slowly approaching pre-recession levels, and those who are comfortable with managing both people and property should definitely look at exploring this career path. While property management is a profitable business to start, it has its own challenges and risks.
Here is a step-by-step guide on how you can begin your property management company in Las Vegas:
Step 1: Get a Property Manager License
In Las Vegas, property managers need to secure a license before they can start operating a property management company. Note that you have to have a Nevada Real Estate license before you can apply for a Property Manager License.
Provide a copy of your property manager exam taken within the past year.
Pay the application fee of $40.00.
Your application will be rejected if it does not include a copy of your original request for your real estate license. Along with a Real Estate Brokers license, you can also conduct real estate sale activities aside from property management.
As with all businesses, you have to determine the business structure you want to operate your property management company. Your legal structure will dictate the paperwork you will file, your personal liability, and the taxes that you have to settle.
Most individuals running a property management company choose to establish a Limited Liability Corporation (LLC) or file as a private corporation. Prepare all relevant papers and register your business.
Once you’re done with all the legalities of your property management company, it is time to work on the logo. Since it will serve as your visual brand, use something that is visually appealing and echoes your brand and services.
To further attract clients, you must set up your own office and website. If you don’t have available funds yet, you can choose to work from the confines of your home, but you have to know that it has certain limitations. Another option that you can do is to secure additional funding your Las Vegas business.
If an office is still an issue, you can reach a broader audience by creating a website. If you want a website that will have good SEO ranking in search engines, you can buy an old domain. But, you must ensure that you do a domain reputation check to see whether it has no shady past that can jeopardize your online presence.
Step 6: Hire the Right Professionals
Once that you have a collection of properties under your care, you need to have a team of professionals who can help you manage these properties. Additionally, most clients prefer to work with a company that has a team of professionals, which includes:
Contractors: Should you have maintenance and repairs, you must have a team ready to respond.
Real Estate Lawyer: Starting a property management company means that you are also ready to deal with clients that require the drafting of contracts and other paperwork that is pertinent for the smooth operations of the company.
Accountant: If numbers are not your forte, you may work with an accountant to help you monitor the profits and losses of your company. You also need an accountant to help you with your taxes.
Your pricing scheme must be competitive enough with the industry yet sufficient to give you a sustainable income. Know the standard pricing in Las Vegas and start from there. Here are the different fees that you should know:
Setup Fee: One-time fee that you can charge landlords for setting up an account with your company.
Management Fee: An ongoing fee used to fuel the operations. You can charge depending on the going rate in your area. The cost should be enough to cover daily activities, including inspections, rent collection, and repair and maintenance requests.
Leasing Fee: A one-time fee, which is commonly equal to one-month rent. It should cover staging of the property, listing, showing to clients, applications, screening tenants, lease preparation, and move-in.
Lease Renewal Fee: This fee is optional. You can charge your clients for successful lease renewals.
Eviction Fee: While this is also optional, it is highly recommended since it is common for clients to call you during the eviction process.
Step 8: Come Up With a Marketing Strategy
Clients will not come out of anywhere searching for your company. You have to be the one to bring your business to your prospective clients, and you can do this through effective marketing techniques. You can leverage multiple online marketing channels such as Pinterest, Facebook, Twitter, and Instagram to reach your audience. You can also benefit from getting a BBB accreditation.
The Bottom Line
Your work is not yet done once you start your property management company in Las Vegas. You have to continue networking to help your business grow. To become a successful property manager, you have to give your dedication and commitment to continue learning and adapting to the ever-changing industry.