Property Management Company Requirements

[UniversityOfProperty]

Good Afternoon Lads and Ladies,

I'm looking into the possibility of starting a Property Management company in my city. It should be noted, I am in Scotland.

What are the requirements, if any.

I know that you don't need anything to manage your own property. Just knowledge, and I already do this with all my own properties.

However, what is the deal with managing the properties of others?

Any advice will be gladly received.

 

[totallyproperty]

First of all I think your should look at putting everything into a company - that way if there are any legal issues, etc then your personal assets are protected.

If you have experience of managing properties then this would be a good start and then maybe look to build up your own buy to let portfolio? Is that what you have in mind?

Regards,

Mark

 

[UniversityOfProperty]

First of all I think your should look at putting everything into a company - that way if there are any legal issues, etc then your personal assets are protected.

If you have experience of managing properties then this would be a good start and then maybe look to build up your own buy to let portfolio? Is that what you have in mind?

Regards,

Mark

My general plan is to bring in more income doing what I'm already doing. What I mean is...I already manage my own properties. Managing others' properties brings me income, without the required finances to buy more property.

I want to grow my buy-to-let portfolio, yes.

I feel that because I'm not going to be a large company, I don't have the large overheads. Work via my own property etc. Therefore I can offer far more competitive rates.

 

[UniversityOfProperty]

Need to find out about the laws specifically

 

[totallyproperty]

I have companies outside of property and a company allows you to keep all of the potential liabilities boxed off within a company. If you were sued for any reason, assuming the company was set-up without any personal guarantees or liabilities, your private assets would be safe.

This is not specific advice, just general advice which I received. A lot will depend upon your own circumstances.

 

[UniversityOfProperty]

I have companies outside of property and a company allows you to keep all of the potential liabilities boxed off within a company. If you were sued for any reason, assuming the company was set-up without any personal guarantees or liabilities, your private assets would be safe.

This is not specific advice, just general advice which I received. A lot will depend upon your own circumstances.

Sorry, correct me if I'm understanding you wrong. You're recommending I set it up as a separate legal entity (IE a Limited Company),so I essentially cover my backside if something were to happen? - This was going to be an obvious move anyway. I plan to make this a serious and legitimate business, IF I can figure out the legal aspect.

What I need to know is whether, essentially, anyone could become a Property Manager, or whether there is some sort of legal licensing requirement. Like, you can't be a Letting Agent without a specific training (The name escapes me at the moment)

Thank you for all your advice though mate.

 

[totallyproperty]

Sorry, I understand your situation now - I mentioned the company issue because that is something I came across with another online business venture. I have also come across many people who do property management in their spare time and don't always take advantage of the many benefits of setting up a limited company.

I think you will find this link very useful:-

Property Managers Association Scotland Limited

Regards,


Mark

 

[UniversityOfProperty]

Sorry, I understand your situation now - I mentioned the company issue because that is something I came across with another online business venture. I have also come across many people who do property management in their spare time and don't always take advantage of the many benefits of setting up a limited company.

I think you will find this link very useful:-

Property Managers*Association Scotland Limited

Regards,


Mark

Thanks for your input Mark. You've been great.

It would only cost me £89.99 to get a decent levelled LTD set up (Including business bank accounts, certificates etc)

After having a read, I think it's beneficial. One, for security, and two, for profitability. HUGE tax benefits for a LTD. HOWEVER, it depends on income. As, currently, I don't have to pay tax being a student. I'm sure there will be a cut-off to that, which i'll need to look into. Otherwise everyone would just sign up to universities while running their billion dollar businesses haha

Studying Accounting and Corporate Finance at university. Therefore I can easily do my financial documents myself.

"Long Term" aim, is to grow this plan to a size where I could employ people to run it for me in a few years time, and just have a cash cow sitting there, while I continue my property investment plans.