I've worked in the multi-family housing industry for 19 years, including having been a property manager for numerous apartment complexes. My father owned several single family homes as rentals, and I helped him from time to time, but I have never personally owned/managed a SFH or duplex/triplex. While there are obviously some differences between SFHs and a 300-apartment complex, I'm thinking the rules and processes are very similar, if just on a smaller scale.
I am not in a position to quit my full-time job yet, but have been thinking of what I'd like to do as a side job/self-employment. Managing properties keeps coming up: I'm really good at it, there is a very large rental market here in my area, I'm certified in numerous regulatory programs, including being a Fair Housing trainer, and I enjoy it. I read the For Rent sections of the local papers and Craigslist for fun (letting my geek shine, I guess!). Because of all of this, I'm thinking of trying to pick up some property management contracts for SFHs in the area. This would be my first time doing a business on my own and I'm hoping you folks can help me with some questions.
1) Should I create an LLC first, before beginning, or wait until I've actually got some business? Or not do an LLC at all and just track my income/expenses on a spreadsheet and include them with my personal taxes? Or something else?
2) I've noticed that in my area, there are many businesses with "Property Management" in their names, but they are physical property managers, like landscaping, lawn mowing, snow-plowing, tree removal, etc. How do I differentiate myself from these types of businesses in small ads?
3) Where should I advertise? What is important information for you, as a rental owner, to know when trying to choose a manager?
4) 10% of the rent per month seems to be the going rate for an owner's agent. Does that seem right to you? Do you still pay that on months when there's a vacancy? Meaning, is it 10% of the rent charge, or 10% of the rent collected?
5) What is your contract with your manager like?
6) Should I always provide applications, leases, etc. or do most owners have their own that they'd want me to use?
7) Do you as the owner appear in court for your own evictions, or do you trust your manager to do it for you from start to finish?
And anything else you think of on the subject would be greatly helpful.