A property management company usually deals with the financial affairs of buildings. More and more property owners decide to employ her. In this article, you will learn how to set up a property management company in 6 steps.
What is running a property management company?
Running a property management company is a business of managing buildings, in particular, their finances. First and foremost, the property manager determines and collects property management oxnard rent from residents, provides residents with security, and ensures that the building is properly used. Property management is also associated with investment planning aimed at maintaining the property in good condition.
The property management company also deals with real estate administration. These are the following tasks:
- Choosing the right heat energy supplier,
- Garbage collection,
- Sewage disposal,
Maintenance of green areas.
In general, however, what the employed property management company will do will result from the contract that must be made in writing.
Establishing a property management company property management Oxnard does not require the consent of any state authority. In addition, the manager does not need to have a specialized education. All you need is sufficient knowledge or experience.
Civil liability of property managers
The property manager is subject to compulsory civil liability insurance for the damage caused in connection with the management of the property. This insurance also covers other persons (including employees) performing activities under the supervision of the administrator. A copy of the insurance document should be attached to the property management contract.
Civil liability insurance covers the civil liability of the property manager for damages caused by his actions or omissions in connection with the management of the property. Do you want to run your own business but don’t know how to set up a property management company? Below are some steps to take to set up your property management company
Choose the legal form of running your business
The legal form of business is the first decision you must make in the process of setting up your own property management company. The choice of legal form influences the further fate of your company in terms of the costs of its establishment, the amount of taxation or social security contributions, and liability for company obligations.
You can run a property management company in the following legal forms:
One-man business – this is the simplest form of business that you can set up in one day. You don’t need any share capital to set it up. In addition, you do not have to keep full accounting in it. The disadvantage of this type of activity is full responsibility for the company’s obligations, which also extends to the joint property of the spouse.