Looking to get into property management.

[illadin22]

Property*


Hi there everyone, well where do I start... I was wondering if you guys could give me your best advice on how I should start up my own property management business. What qualifications do I need? Where is a good place to get clients? How much does it all cost? etc.

I really am starting from scratch here (apart from money I have saved up). I am young and ambitious and any advice you can give is good advice. Thank you in advance to anyone who can help .

[Maccachic]

It would be beneficial to find a job working for one of the established companys getting some experience behind you and knowledge before you head out on you own.

[illadin22]

Okay, and what qualifications/experience would be valuable before applying for a job with one of the established companies? Or would they hire me right off the bat ?

[Tan]

Have you ever looked after tenants before (ie as a landlord or for a friend) or are you totally new to it?

[Auckland LE]

My understanding is that if you work for a Real Estate company in Property Management you are required to have your Real Estate licence. Not sure if that is necessary for some of the larger commercial property managment companies. I've read that the REAL ITO is putting together a Property Management qualification, but not sure when that will be up and running.

I would be interested in answers to this thread also, as Property Management is something that I'm hoping to get into. Just studying towards my Real Estate licence at the moment.

[Keys]

Read the tenancy forum in this site and see how you could answer some of the questions. There is a wealth of information there.

[The_Dog]

Put yourself in the Landlords shoes. What would you expect if you were paying someone to manage your own property.

Firstly - what is a property? Answer : Probably the most expensive ticket item anyone is ever likely to purchase!! So that should be foremost in your mind, and guide your decisions / behaviour.

A few starters for you :

- Answer your phone! LL's like you to be contactable.
- Look after properties as if they are your own. Would you be happy to have it in that condition?
- Think strategically - long term - think preventative maintenance, think long term quality tenants. Don't be tempted to put a loser in there for the sake of one or 2 weeks rent. Make suggestions to the LL e.g., I suggest cleaning your guttering before we get into winter as there's evidence water has overflowed internal to the end bedroom wall. It will cost $zz. Proceed?
- Think proactively - don't phone the LL with problems, without having solutions / options. EG, don't phone the LL to say "Your fence has blown over". Phone and say "Your fence has blown over. I have phoned the insurance company and they have indicated that it is covered, they will pay $xx, being your half contribution. Question for you, would you like the fence replaced like for like, or take the opportunity to put a block wall / higher fence up. 3 quotes, a) like for like $xx, b) Block wall $xx + $1440, c) 6 foot wooden fence (in same style as existing, but higher) $xx + $370. I've written to the neighbouring property outlining the options, stating the relevant clauses from the Fencing Act 1974, and informed them they are required to pay half. I await their response, and fill forward it as soon as I hear back.

How would you like to proceed Mr / Ms LL?

That's enough to start with. Believe me, if you do the above well you will already be better than 90% of the Managers out there.

All the best.
TD

[One]

me, I'd object to that 'written to the neighbours' bit. I'd want to have the first say. But that's just me quibbling. Other than that, that does sound like an outstanding PM.

[Glenn]

Property*


best advice on how I should start up my own property management business. What qualifications do I need? Where is a good place to get clients? How much does it all cost? etc. .

No offence meant but I am continously asked that question by tenants and other wanabes.
I fail to see why someone out of the deep blue would think they could suddenly start up a business without having even worked in it.
How many people start up the business of being plumbers or electricians without having had some industry experience without even mentioning training and tools.
The first step is go and buy a few rental properties in the worst part of town. You will either learn fast or become another statistic.
Statistic of failed money wise, scared out of your wits and become nervous wreck, or have your car, and house smashed up.
I have not even mentioned your own personal safety.
As for money. I fail to see how anyone with less than a few hundred thousand to throw around for things like IT, vehicles, advertising, and telecoms can make a go of it.
The other thing you need is lots of time (and other passive income) whilst you build the business.
I do not want to sound a bit putting off but as I wrote in the first line. Many dream and think our business is a path for instant riches and a fabulous life style.
Dream again. Go and find a rich man if money is the motivation.

[WGN ex-property manager]

me, I'd object to that 'written to the neighbours' bit. I'd want to have the first say. But that's just me quibbling. Other than that, that does sound like an outstanding PM.

Sounds like a PM with too few customers to fill his time and earn a a living.

No point in messing your tradies around getting quotes before you've got any hint from the landlord that they are actually wanting to spend a dollar.

Try this instead:
"Your fence has blown over. I suggest you consider A) checking with your insurance company to see if you can claim (we'll manage the access for the assessor if needed), B) we recommend spending some money to put it right. With your go ahead we can get 3 quotes to reinstate as it was C) it might pay to look at a higher fence to enhance the privacy of the back yard, and thus the tenant appeal of the property. Would you like us to get quotes for a 1.8m high fence as an option for you to consider?

In my experience it's pretty much a universal rule that the only good PM's are the ones who DO PERSONALLY own properties of the same type they are managing, in the same sort of socio-economic zone. Glenn manages many properties in the lower end of the market that I personally wouldn't, and if we where operating in the same town I'd point the owner of the "WINZ Special" to Glenn rather than me every time because he's better at it. However I own quite expensive home and incomes and standalone houses in outer CBD Wellington, so I'm a pretty good judge of whether to pitch a given property in, say, Kelburn at Students, Young professionals or high end executive power families. I'd hazard a guess that I'd be better at this than Glenn because this is my market, so I know it better

[NovInvestor]

Property*


Hi there everyone, well where do I start... I was wondering if you guys could give me your best advice on how I should start up my own property management business. What qualifications do I need? Where is a good place to get clients? How much does it all cost? etc.

I really am starting from scratch here (apart from money I have saved up). I am young and ambitious and any advice you can give is good advice. Thank you in advance to anyone who can help .

Questions a landlord would ask you before they even think about giving you their business:
1) what experience you have
2) how long have you been a landlord
3) how many properties have you managed at any one time
4) what qualifications you have, and how that help you in property management
5) what quality assurance process you have to manage the tenant, deal with landlord requests, manage trades people, make sure every rental property gets your fair attention
6) and the most important question of all, why should I give you my properties to manage?

You need to sell yourself to the market, and unless you got the goods to sell, you are wasting your time.

Remember, you are dealing with landlords who are educated, experienced, and won't take crap service from anyone!

My best advice to you is, go to barfoot, raywhite rentals department and apply for a job.

That's where you should start.

Good luck!

[Perry]

There are other non-REA PM companies which
may be looking for staff; eg. Quinovic. Use the
Yellow pages to cast around, for your area.

Robin, Glenn
Does a PM working for a REA have to have
a REA licence?

[The_Dog]

Sounds like a PM with too few customers to fill his time and earn a a living.

No point in messing your tradies around getting quotes before you've got any hint from the landlord that they are actually wanting to spend a dollar.

Try this instead:
"Your fence has blown over. I suggest you consider A) checking with your insurance company to see if you can claim (we'll manage the access for the assessor if needed), B) we recommend spending some money to put it right. With your go ahead we can get 3 quotes to reinstate as it was C) it might pay to look at a higher fence to enhance the privacy of the back yard, and thus the tenant appeal of the property. Would you like us to get quotes for a 1.8m high fence as an option for you to consider?

I agree with half of what you suggest. I'm Overseas so don't have the luxury of visiting the property, and quite frankly don't have the time to get involved. I like my Agent to do as much as possible, including dealing with the Insurance company, but that's just me. It will differ for different LLs.

My Agent and I have a good working relationship, which has built up over time. It probably wasn't clear in my post, I don't expect my Agent to rush out and get random quotes of their own bat, we would have spoken about it previously, have general guidelines in place or experience from another property. Perhaps it should have been "I have rung the insurance company, and got 3 quotes on the fence types we discussed when the fence blew down at 39 TheOtherOne Street."

The principal is the same. I believe an Agent should make my life easy, and not bother me with obvious decisions.

Real life example. One of my properties was supposed to be vacated. At the final inspection, rather than a vacant property there were 3 trans-sexuals on mattresses in the lounge, surrounded by used condoms. The tenant was not around, but had left the place to nieces / nephews (I'm not sure which!). The place was trashed. Loads of rubbish, graffiti and holes all over the walls.

I didn't find out about this until 2 weeks later. My Agent threw the ferals out, took photographic records of everything, ordered skips for the rubbish, arranged for repair of the damage, and had the place painted. (Quotes had already been arranged and agreed to have the painting done prior, but first the place had to be in a state it could be painted!).

I was delighted with that as a response. I had to decide whether I wanted a new stove, or a refurbished one, and that was about it.

What I don't want is : "This has happened. What would you like to do? Shall we arrange for a skip to remove the rubbish and get quotes to repair the walls?"

The things needed to be done, and my Agent got on with them. I like that.

I also agree with the other posters suggesting you need experience before starting your own business. Could you cope with the above situation? No? Then best you start and learn from people that have been there and done (doing) it.

TD

[WGN ex-property manager]

RE; REINZ PM"s needing REAA license? Short answer - don't know as I haven't been close enough to being in that position to need to know.

Long answer? I'm guessing the bus sized holes in the REAA 2008 mean that it'll be settle via case law one year.

[WGN ex-property manager]

I didn't find out about this until 2 weeks later. My Agent threw the ferals out, took photographic records of everything, ordered skips for the rubbish, arranged for repair of the damage, and had the place painted.
I was delighted with that as a response. I had to decide whether I wanted a new stove, or a refurbished one, and that was about it.

What I don't want is : "This has happened. What would you like to do? Shall we arrange for a skip to remove the rubbish and get quotes to repair the walls?"



TD

Many landlords don't have $5K lying around to repaint an interior. Once the potential bill is over the PM"s maintenance authority limit (typically $500 with us) then we HAVE to ask before spending the LL's money. Some clients have no spare $ at all, and a $200 pluming bill needs a 3 week notice period for them to take it out of their personal housekeeping budget.