Property Managment Business Thoughts

[mlw911]

Does anyone here have experience with using/starting/running a property management business? I am currently doing my due diligence on acquiring a local company that's for sale. I live in a tourist community so it will be primarily involved with tourism related rentals. Any info or thoughts much appreciated?

[davidb3069]

Sounds like a massive can of worms if you don't have experience in it. If you do buy it, make it a condition that one of the experienced staff members has to stay on in a consultancy basis for at least 6 months or a year in order to sell it. You are dealing with collections issues, licensing issues, landlord/tenant law, etc. You need someone very experienced.

[mlw911]

Thanks David. Good point and I have thought about that. In my state a property management business requires a principal with a broker/dealer license. A broker/dealer license requires 2 years of industry experience. Part of the deal would require the current owner to stay on as the broker/dealer until have have the requisite experience to become the B/D (2 years). Additionally I would be required to hold a real estate license to run this business so I would be walking in with actual training.

[davidb3069]

Glad to hear you thought about that. I am not sure the real estate license would be completely encompassing of all your new duties. You would also want to know the status of all clients of their, research any liabilities or legal history or problems they have had. Are you assuming their problems/liabilities by buying them? You need to know that.