Follow These Tips to Start Your Own Property Management Company Today!
Updated: Jul 29, 2020
Starting a business is always daunting. But to start a business in the property management sector? That takes some serious courage. The property market is always fluctuating and recently we are seeing a decrease in houses being purchased.
People are now more likely to rent and this means that a lot of the commission will be lower. But it is a market that will continue to grow, regardless. It just depends on the timing in which the world is in that will cause some dips here and there in your business.
So, you’ve decided to open your own property management company? Let us break down some tips into what you need to do before starting your own company.
Setting Up The Structure of Your Company
Here in Malaysia, there are multiple ways to incorporate a company. There are 5 different types of business entities in Malaysia.
Limited Liability Partnership, also known as LLP
Private Limited Company, commonly known as Sendirian Berhad or Sdn Bhd
Public Limited Company, locally known as Berhad
It really depends on you what you want to go for. Most of the time, if you are planning to have other people work with you, you should go for a Sdn. Bhd. as a lot of people usually use that.
These business types will differ in how you as the owner has control over the business. This site is a great page for you to read more about it.
Doing your research is extremely important as it will help you figure out what you need to do in the future and your rights as well as the owner. Or if you ever want partners and what their share and workload would be in the long run.
Once you’ve figured out what kind of company you want to open, you will need to register yourself with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOCAEP) to become a certified property manager in Malaysia.
To register, you can do son on their website linked here. This is extremely important as without the license you will not be able to start your company legally.
Set Up Your Online Presence
Here comes the fun part! Once you’ve gotten your license and have created your own company, you will need to set up your online presence.
Doing this is extremely important as the digital age is upon uis. Yes, word of mouth is still incredibly useful, but at the starting you will need to cast your net as wide as possible. And the only way to do that now is using the internet.
Purchase a simple domain according to your the name you’ve chosen to use for your company and set up the website. Good websites usually :
State what you do
How you do it
What makes you different
The services you offer
Any reviews you might have from friends and family about your credibility
Pictures of you and an introduction to yourself and the company
How to contact you
The website does not need to be perfect immediately, but you need something so that people can refer to it.
Determine Your Pricing Structure and Legalities
This is your bread and butter. The pricing structure as well as having all your legal issues sorted. Property management is a tedious job, so having a lawyer on your side is crucial.
Besides that, you will need to be able to sustain yourself with a good income right? So here are the few things that you need to keep in mind:
1. Introductory Fee/ Setup Fee
This is usually the fee that you ask landlords to pay to open their account and understand more about their needs and what they need done
2. Management Fee
- This is where you will get your recurring income. This is usually around 3-4% of the rental income. This is good to have as it is recurring and will be the main source of sustaiinablity for you.
3. Leasing/ Rental Fee
- This is a one time fee when a house gets sold or rented out. In Malaysia, it is usually the first month rent if the house is being rented out and usually 3-5% of the total cost of the house that is being sold.
Getting a Property Management Software
Just reading all those different types of fees can get you tired. Imagine not having a dedicated system that can keep track of all the clients you have and the invoices you need to bill? You will need to get a property management system that can help you keep things in order.
A system like T+ can help you do all of the above and on a low cost too. Our system is built to cater to the Malaysian market and is almost 60% cheaper than any other tool out there.
If you want to learn more, drop us an email and schedule a demo with one of out T+ agents today!