AboutMike Fortunato Expertise Very familiar with all aspects of property management, from tenant/landlord issues, to lease administration, to facilities maintenance. 20+ years in property management
Experience I have been in real estate management for 20+ years, both residential and commercial properties. Currently own and operate a commercial real estate management company in southern California.
Organizations belong to Current member of Both BOMA and IREM
Expert: Mike Fortunato Date: 5/12/2008 Subject: Startup Cash for Prop Management Company?
Question Hi Mike, Me and a partner are going to start a Residential Property Management business here on the east coast. Would only 1 of us need to become a broker? Or Both? We will be a LLC. Also what type of startup money can we expect to have to come up with to pay for space, a website,advertising, signs,office equipment, so forth.
Answer Not sure about the regulations in your state, but here in California there only needs to be one broker's license. However, each person acting as a property manager must hold a real estate salesperson license at a minimum. You'll need to check with your state's department of real estate to verify if those same rules apply.
Hard to pinpoint starting funds since a lot depends on costs in your area. But I would imagine you should set aside at least $50K (probably more) to have enough operating capital until the business generates enough income.
