Starting a Property management company

thejourney

I want to set up a property managing company, providing my own cleaning, gardening and maintenance services. I have a qualified licensed property manager ready to work for me.

They company will market rentals, collect rent, handle maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.

I know 4 landlords who are willing to give there properties to me to manage for a fixed fee every year on a ten year contract.

What legal structure do I need for this company? There is very little info available on the web

trobbin

thejourney wrote: »

I want to set up a property managing company, providing my own cleaning, gardening and maintenance services. I have a qualified licensed property manager ready to work for me.

They company will market rentals, collect rent, handle maintenance and repair issues, responding to tenant complaints, and even pursuing evictions.

I know 4 landlords who are willing to give there properties to me to manage for a fixed fee every year on a ten year contract.

What legal structure do I need for this company? There is very little info available on the web

You are going to "persue evictions"? That's not gonna work out well. Have you any idea the cost of this, not to mention the hassle.

You've got people living in houses the last 7/8 years that haven't paid a penny off their mortgage, yet banks have been unable to evict them. They've been forced to sell their mortgages to vulture funds, which will try and entice these people from the said houses.

I'd take that off your list of services.

thejourney

trobbin wrote: »

You are going to "persue evictions"? That's not gonna work out well. Have you any idea the cost of this, not to mention the hassle.

You've got people living in houses the last 7/8 years that haven't paid a penny off their mortgage, yet banks have been unable to evict them. They've been forced to sell their mortgages to vulture funds, which will try and entice these people from the said houses.

I'd take that off your list of services.

Thank you. I will remove this service from my list. The landlord will have to do this themselves.

JustLen

thejourney wrote: »

I have a qualified licensed property manager ready to work for me.

Is this person working in the industry at the moment?

antoinolachtnai

I suppose I am wondering whether you are going to register with PRSA (as I think the law requires)and what that will involve.

The big issue that I am thinking of is how you are going to market your business and make money. To bring in 100k a year you need to rent out a fair few properties.

thejourney

JustLen wrote: »

Is this person working in the industry at the moment?

She is working for a company, and will join mine, as I will form a relationship with her if you know what i mean.

thejourney

antoinolachtnai wrote: »

I suppose I am wondering whether you are going to register with PRSA (as I think the law requires)and what that will involve.

The big issue that I am thinking of is how you are going to market your business and make money. To bring in 100k a year you need to rent out a fair few properties.

Yeah, I will follow the law the whole way.

I will be getting 20% return. The properties bring in 1000000 per year. That is 200,000 but the owns live abroad.

corglass

Forming relationships?
20% return or 20% fee?
€1m rental income and you'd the landlord will hand over 20% to you for it services? The tiger back

thejourney

corglass wrote: »

Forming relationships?
20% return or 20% fee?
€1m rental income and you'd the landlord will hand over 20% to you for it services? The tiger back

Too clear the record. The fee is 20%. Yes, the landlords dont live in Ireland. They have no interest in there real estate except making a return. They never want to be contacted, and I must take care of all problems thats why I want to offer all services. 20% is a over the top fee however I am only doing this for that reason.
They are High net worth individual who don't really need a huge return, they value a safe property management company.

They are making a lot of money in Dublin. They bought in 1997_1999.

antoinolachtnai

That is great. You will be paying 3.75 percent of that 20 percent straight to the government in VAT though. When you take it into account, it's not necessarily that much if you ask me. It depends on the quality and turnover and what exactly you are going to take care of.

You need a business plan for this. There is a lot to consider.

jimmii

20% is huge fair play for being able to get that. I would imagine it would be hard to find that many people willing to give up so much. If you can there's definitely a good business there though.

JustLen

This property manager that is currently working for a company in industry should really be aware that you cannot legally enter into a management contract for 10 years.

If you are employing them on the basis they will be able to guide you through the vast amount of legalities in the industry - you should see this as a red flag.

By the sounds of it your knowledge in the area is minimal at best. I would suggest you look at professional indemnity insurance before going any further.

What your talking about is no small task. I wish you the best of luck.

In my opinion this has the potential to end very badly for at least one of the parties involved - be it yourself or the property owners.

thejourney

JustLen wrote: »

This property manager that is currently working for a company in industry should really be aware that you cannot legally enter into a management contract for 10 years.

If you are employing them on the basis they will be able to guide you through the vast amount of legalities in the industry - you should see this as a red flag.

By the sounds of it your knowledge in the area is minimal at best. I would suggest you look at professional indemnity insurance before going any further.

What your talking about is no small task. I wish you the best of luck.

In my opinion this has the potential to end very badly for at least one of the parties involved - be it yourself or the property owners.

On paper you can't, but they are willing to stick with me for 10 years. They have more to lose than me, and need me more.

My knowledge of real estate is ok, however when there is money to be made from this idea I will do well

Real estate is the best investment in the world, if you don't get some you will miss out. God is not making anymore land in the west

JustLen

thejourney wrote: »

On paper you can't, but they are willing to stick with me for 10 years. They have more to lose than me, and need me more.

My knowledge of real estate is ok, however when there is money to be made from this idea I will do well

Real estate is the best investment in the world, if you don't get some you will miss out. God is not making anymore land in the west

You have it all figured out. Best of luck with it

thejourney

JustLen wrote: »

You have it all figured out. Best of luck with it

Thanks Len

antoinolachtnai

thejourney wrote: »

On paper you can't, but they are willing to stick with me for 10 years. They have more to lose than me, and need me more.

My knowledge of real estate is ok, however when there is money to be made from this idea I will do well

Real estate is the best investment in the world, if you don't get some you will miss out. God is not making anymore land in the west

Mark FitzGerald and his colleagues will do the same job as you for the same price or less. He will do the job on a yearly contract without any big tie-in. His firm is not perfect but he knows basically everything there is to know about real estate.

What is to stop the owners moving to another cheaper agency once you get everything sorted out and working reasonably smoothly?

You can of course contract for such services for ten years or longer.

You are entering into a pretty big and complex business and you owe it to yourself and your customers to get the advice you need.

Bandara

thejourney wrote: »

Too clear the record. The fee is 20%. Yes, the landlords dont live in Ireland. They have no interest in there real estate except making a return. They never want to be contacted, and I must take care of all problems thats why I want to offer all services. 20% is a over the top fee however I am only doing this for that reason.
They are High net worth individual who don't really need a huge return, they value a safe property management company.

They are making a lot of money in Dublin. They bought in 1997_1999.

A few days ago you posted that a family member wants to buy 2m of property now, and you were unsure if you were a property manager and if you were allowed to charge for your work.

http://www.boards.ie/vbulletin/showthread.php?p=102720168

You now (three days later) are saying you have 4 overseas landlords that want to go with you with their properties they have had for almost twenty years, despite you having no experience whatsoever (you say you know a lady who is in the property business yet her knowledge seems to be very dubious), and these landlords are prepared to give you complete control of their property with rental income of 1 million per year, I'm estimating 50 this is approx properties. Ahead of all the established agencies.

You have not even got a company setup. How do you intend to manage multiple properties ? Have you any idea what this entails ?

Which is it ? Are you signing up international landlords, or is your family member looking to buy 2 million of apartments ?

Or is this Walter Mittyesque?

JustLen

antoinolachtnai wrote: »

You can of course contract for such services for ten years or longer.

The maximum term you can enter into a property management contract is 3 years as set out in the property services regulation act 2011.

In my opinion this idea is nothing but a pipedream as it stands due to the obvious lack of knowledge on the topic shown by the OP.

I'd like to open a mega casino in Vegas with unlimited coke and strippers at my disposal - doesnt mean I can ask a few questions on boards and Bob's your uncle

thejourney

Bandara wrote: »

A few days ago you posted that a family member wants to buy 2m of property now, and you were unsure if you were a property manager and if you were allowed to charge for your work.

http://www.boards.ie/vbulletin/showthread.php?p=102720168

You now (three days later) are saying you have 4 overseas landlords that want to go with you with their properties they have had for almost twenty years, despite you having no experience whatsoever (you say you know a lady who is in the property business yet her knowledge seems to be very dubious), and these landlords are prepared to give you complete control of their property with rental income of 1 million per year, I'm estimating 50 this is approx properties. Ahead of all the established agencies.

You have not even got a company setup. How do you intend to manage multiple properties ? Have you any idea what this entails ?

Which is it ? Are you signing up international landlords, or is your family member looking to buy 2 million of apartments ?

Or is this Walter Mittyesque?

It's a complicated situation. I DONT want to go into much detail. Everything I have stated is true. She is very good however I need to know if the legal stuff makes sense. Mixed real estate. I will now approach my legal advisor for further details.

antoinolachtnai

JustLen wrote: »

The maximum term you can enter into a property management contract is 3 years as set out in the property services regulation act 2011.

Can't find this section (and unlikely to be tenable in European law if it does exist).

I'd like to open a mega casino in Vegas with unlimited coke and strippers at my disposal - doesnt mean I can ask a few questions on boards and Bob's your uncle

Also saturated and competitive markets now, alas!

pedroeibar1

thejourney wrote: »

On paper you can't, but they are willing to stick with me for 10 years. They have more to lose than me, and need me more.

My knowledge of real estate is ok, however when there is money to be made from this idea I will do well

Real estate is the best investment in the world, if you don't get some you will miss out. God is not making anymore land in the west

thejourney wrote: »

as I will form a relationship with her if you know what i mean. …………………..They have no interest in there real estate except making a return. They never want to be contacted, and I must take care of all problems……..They are High net worth individual who don't really need a huge return, they value a safe property management company.

I don’t know what you mean but I can guess. I am a high net worth individual. The reason I hold that position is because I manage my assets. I know the cost of ‘things’ and those who think that I (or people like me) don’t care about a return, particularly those who cannot spell, punctuate or understand basic syntax do not even get in my door. Those that think I need them more than they need me don't even get in the gate.

I’ve often wondered about the mindset of those idiots who think HNWI potential customers are idiots who know the value of nothing. How do they think we acquired those assets?

pedroeibar1

Bl##dy Boards, Page 2 has just appeared, sorry Bandara.

thejourney

pedroeibar1 wrote: »

I don’t know what you mean but I can guess. I am a high net worth individual. The reason I hold that position is because I manage my assets. I know the cost of ‘things’ and those who think that I (or people like me) don’t care about a return, particularly those who cannot spell, punctuate or understand basic syntax do not even get in my door. Those that think I need them more than they need me don't even get in the gate.

I’ve often wondered about the mindset of those idiots who think HNWI potential customers are idiots who know the value of nothing. How do they think we acquired those assets?

So am I, Just not as much as them. So its a handy number