---
title: "How to Start a Property Management Company: Licensing, Software and First Clients"
description: "How to start a property management company: the steps, a state licensing table, startup costs, software by portfolio size and how to win your first owners."
url: https://kihanmarketing.com/start-a-property-management-company/
published: 2026-10-27
updated: 2026-10-27
author: "Kiran Dasgupta"
---

# How to Start a Property Management Company: Licensing, Software and First Clients

By [Kiran Dasgupta](https://kihanmarketing.com/kiran/), Founder and Lead Strategist

![A property manager hands a ring of house keys to a new tenant at an open front door in warm evening light](https://kihanmarketing.com/media/brand/real-estate-keys-1900.webp)

To start a property management company, get licensed first. In most states, managing rentals for others for a fee takes a broker license, or a license held under a broker. Then form the business, buy insurance and open a trust account. Write your management agreement, pick software and find your first owners. The license is where most people stall.

**Sound familiar?**

- You learned you need a broker license just to manage other people’s rentals. [A New Jersey poster on BiggerPockets](https://www.biggerpockets.com/forums/52/topics/636971-property-managment-without-a-broker-or-license?page=1) hit the same wall.
- You asked a broker to let you manage under them. But “very few brokers are going to allow an agent under them to do property management,” warns [one BiggerPockets reply](https://www.biggerpockets.com/forums/52/topics/636971-property-managment-without-a-broker-or-license?page=1). The broker answers for what the agent does.
- The path looks long. In Florida, [a forum reply](https://www.biggerpockets.com/forums/52/topics/636971-property-managment-without-a-broker-or-license?page=1) sums it up: “you will need a Florida Real Estate License, then join a brokerage for two years, after the two years you can get your Brokers License and open your own company.”
- You worry about getting sued. [A reply in the same thread](https://www.biggerpockets.com/forums/52/topics/636971-property-managment-without-a-broker-or-license?page=1) calls property management “the biggest source of lawsuits in the real estate business.”
- You have no doors and no referrals yet. And [a BiggerPockets member](https://biggerpockets.com/posts/user/nadirm?page=7) says buying leads “is often a fool’s errand.”

**Key takeaway**

The order matters. Your license must be in place before your first owner, and a trust account before you collect any owner or tenant money. For most people, the realistic path is to manage under a broker first and earn a broker license later. Until then, the broker often holds the trust account.

## What Do You Need to Start a Property Management Company?

You need a license, a business, insurance, a trust account, a written agreement, software and a way to reach owners. The license comes first, since it can take months or years.

1. **A license.** In most states, a broker license, or a license under a broker who lets you manage. Oregon, South Carolina and Montana have their own property manager license.
2. **A business.** Register an LLC or other structure with your state.
3. **A tax ID and a bank account.** The EIN is free from the IRS.
4. **Insurance.** General liability and errors and omissions (E&O) at least.
5. **A trust account.** A bank account just for owner and tenant money.
6. **A management agreement.** It sets your powers, fees and duties in writing.
7. **Software.** To collect rent, keep the books, track repairs and pay owners.
8. **A website and a [Google Business Profile](https://kihanmarketing.com/glossary/google-business-profile/).** So owners can find you and check you out.
9. **Your first owners.** Start with people you know.

### Which starting point is yours?

Most new firms start from one of four places. Each has a different gap to close.

### A real estate agent at a brokerage

You hold a license, but you can’t manage on your own. In Texas, a sales agent may only act for the broker who sponsors them, under [Occupations Code 1101.351](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm). In Florida, a sales associate may only collect rent “in the name of the employer,” under [Florida Statutes 475.42](https://www.flsenate.gov/Laws/Statutes/2025/475.42).

- First step: ask your broker if you can manage rentals there.

### A landlord who manages your own rentals

You know the work: screening, leases, repairs and rent. Many states exempt owners who manage their own homes. That ends the day you manage someone else’s rental for pay.

- First step: find your state’s license path before you take a friend’s house.

### An HOA or community association manager

Running an HOA is a different job from leasing rentals. Georgia has its own Community Association Manager license. It takes a 25-hour course and no experience, per the [Georgia Real Estate Commission](https://grec.state.ga.us/obtaining-a-license/real-estate/).

- First step: check if renting units for owners needs a broker license in your state.

### A multifamily leasing pro going solo

On-site exemptions are written for staff. [Florida’s](https://www.flsenate.gov/Laws/Statutes/2025/475.011) covers a salaried leasing employee of an owner or broker. [Arizona’s](https://www.azleg.gov/ars/32/02121.htm) covers on-site managers hired by the owner or its licensed agent.

- First step: plan for a broker license before you leave your job.

Going solo is common. As of August 2026, the [Bureau of Labor Statistics](https://www.bls.gov/ooh/management/property-real-estate-and-community-association-managers.htm) counts 31% of property, real estate and community association managers as self-employed.

## Do You Need a License to Start a Property Management Company?

In most states, yes. Managing rentals for other people for a fee is real estate brokerage. So you need a broker license, or you must work under a broker. A few states have their own property manager license. The table covers ten states, plus Georgia’s HOA license.

Look for the words “for another” in each law. California, Florida, Arizona and New York define a broker as someone who acts for another person for pay. That is why owners of their own homes are often left out.

| State | License you need | Key exemption | Notable requirement | Source |
| --- | --- | --- | --- | --- |
| California | Real estate broker license, or a salesperson under a broker | Resident manager of an apartment building and that manager’s staff; supervised staff of a management firm doing set leasing tasks | Others’ funds go in a trust fund account at a bank in California | [BPC 10131](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131) , [10131.01](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131.01) , [10145](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10145) |
| Texas | Broker license; a sales agent must be sponsored by a broker | On-site manager of an apartment complex; an owner or the owner’s employee leasing the owner’s property | Broker applicants need 4 years of active experience in the past 60 months; trust records kept 4 years | [Occupations Code 1101](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm) , [22 TAC 535.146](https://www.law.cornell.edu/regulations/texas/22-Tex-Admin-Code-SS-535-146) |
| Florida | Broker license, or a sales associate under a broker | Owner leasing its own property; salaried on-site leasing employee of an apartment community | Broker needs 24 months as an active sales associate in the past 5 years; records kept at least 5 years | [Fla. Stat. 475.01](https://www.flsenate.gov/Laws/Statutes/2025/475.01) , [475.011](https://www.flsenate.gov/Laws/Statutes/2025/475.011) , [475.17](https://www.flsenate.gov/Laws/Statutes/2025/475.17) , [475.5015](https://www.flsenate.gov/Laws/Statutes/2025/475.5015) |
| North Carolina | Real estate broker license (a “Broker-only” state; provisional broker is the entry level) | Ask the North Carolina Real Estate Commission | Security deposits and certain other funds go in an insured trust account | [NC Real Estate Commission](https://www.ncrec.gov/Consumer/PropertyManagement) , [licensing FAQ](https://www.ncrec.gov/Licensing/Licensingfaq) |
| Arizona | Real estate broker license (collecting rent for others is a broker act) | Owner managing its own property without property management fees; on-site managers at one location with no special pay | Property management accounts are trust accounts; deposit within 3 banking days | [A.R.S. 32-2101](https://www.azleg.gov/ars/32/02101.htm) , [32-2121](https://www.azleg.gov/ars/32/02121.htm) , [32-2174](https://www.azleg.gov/ars/32/02174.htm) |
| Washington | Broker license through a licensed real estate firm (property management is a brokerage service) | Owner acting for its own account; staff limited to listed leasing and clerical tasks | Client funds kept separate, in a Washington depository | [RCW 18.85.011](https://app.leg.wa.gov/RCW/default.aspx?cite=18.85.011) , [18.85.151](https://app.leg.wa.gov/RCW/default.aspx?cite=18.85.151) , [18.85.285](https://app.leg.wa.gov/RCW/default.aspx?cite=18.85.285) |
| New York | Real estate broker license (collecting rent for others for a fee is a broker act) | Court appointees, public officers on duty and attorneys | The broker definition covers acts done “for another and for a fee” | [RPL 440](https://www.nysenate.gov/legislation/laws/RPP/440) , [442-f](https://www.nysenate.gov/legislation/laws/RPP/442-F) |
| Oregon | Separate property manager license from the Oregon Real Estate Agency | Ask the Oregon Real Estate Agency | 60-hour pre-license course and an exam; at least one clients’ trust account once licensed | [Oregon Real Estate Agency](https://www.oregon.gov/rea/licensing/get-license/Pages/property-manager.aspx) |
| South Carolina | Separate property manager license, under a property manager-in-charge or broker-in-charge | Unlicensed owner leasing or renting its own interest | 30 classroom hours of property management (or a qualifying degree); trust account titled “trust” or “escrow” | [S.C. Code 40-57](https://www.scstatehouse.gov/code/t40c057.php) |
| Montana | Separate property manager license (since 2023); licensed brokers and salespersons may also manage | An owner of a business entity that owns the property, the property owner’s spouse, a person leasing no more than four residential units, and others | Approved course and exam; $1,000 fine for each cited trust account violation (as of October 2026) | [MCA 37-56-103](https://leg.mt.gov/bills/mca/title_0370/chapter_0560/part_0010/section_0030/0370-0560-0010-0030.html) , [104](https://leg.mt.gov/bills/mca/title_0370/chapter_0560/part_0010/section_0040/0370-0560-0010-0040.html) , [105](https://leg.mt.gov/bills/mca/title_0370/chapter_0560/part_0010/section_0050/0370-0560-0010-0050.html) , [106](https://leg.mt.gov/bills/mca/title_0370/chapter_0560/part_0010/section_0060/0370-0560-0010-0060.html) |
| Georgia (association managers only) | The Georgia Real Estate Commission offers a Community Association Manager license | Ask the Georgia Real Estate Commission | CAM: 25-hour course, no experience required; a separate rental trust account is optional but must be registered with GREC if used | [GREC licensing](https://grec.state.ga.us/obtaining-a-license/real-estate/) , [GREC FAQ](https://grec.state.ga.us/licensed-professionals/faq/real-estate/) |

In most states, you need “a property management license or real estate broker’s license,” says the [Bureau of Labor Statistics](https://www.bls.gov/ooh/management/property-real-estate-and-community-association-managers.htm). Rules change. So check with your state’s commission, and have a broker or lawyer confirm your plan before you take an owner.

### Do you need a license to manage your own rentals?

Usually not. Florida’s license law does not cover an owner that “leases its own real property,” under [Florida Statutes 475.011](https://www.flsenate.gov/Laws/Statutes/2025/475.011). Texas exempts “an owner or the owner’s employee” who leases the owner’s real estate, under [Occupations Code 1101.005](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm).

That stops at your own homes. Once you manage a friend’s rental for pay, the license rules apply. Arizona’s owner exemption in [A.R.S. 32-2121](https://www.azleg.gov/ars/32/02121.htm) does not cover anyone paid a management fee.

### The realistic path: work under a broker first

For most people, the fastest legal start is a license under a broker who lets you manage. You run the doors. The broker oversees you and often holds the trust account. Later, you earn your broker license and go out on your own.

In Florida, you need 24 months as an active sales associate in the past 5 years to become a broker, under [Florida Statutes 475.17](https://www.flsenate.gov/Laws/Statutes/2025/475.17). In Texas, you need “at least four years of active experience” in the past 60 months, under [Occupations Code 1101.356](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm).

The hard part is finding a broker who says yes, since the broker answers for the agent. So ask before you join. Will the firm let you manage rentals? Who holds the trust account? How is the fee split?

### How to start a property management company in Florida

In Florida, you need a broker license, or you work as a sales associate under a broker. Renting out property for another person for pay is broker work under [Florida Statutes 475.01](https://www.flsenate.gov/Laws/Statutes/2025/475.01). Doing it without an active license is a [third-degree felony](https://www.flsenate.gov/Laws/Statutes/2025/475.42). Most people start with a sales associate license. Its course runs up to 63 class hours. The broker course runs up to 72 hours, per [475.17](https://www.flsenate.gov/Laws/Statutes/2025/475.17). Florida brokers must [keep records](https://www.flsenate.gov/Laws/Statutes/2025/475.5015), management agreements included, for at least 5 years.

### How to start a property management company in Texas

In Texas, you need a broker license, and so does your company. A broker is anyone who leases real estate for another person for pay, under [Occupations Code 1101.002](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm). So is anyone who “controls the acceptance or deposit of rent” from a single-family rental. A sales agent may only act for a sponsoring broker. Under [Texas Real Estate Commission rule 535.146](https://www.law.cornell.edu/regulations/texas/22-Tex-Admin-Code-SS-535-146), a sales agent may not keep a trust account, and trust records must be kept four years.

### How to start a property management company in California

In California, you need a broker license, or a salesperson license under a broker. Leasing, finding tenants or collecting rent for others for pay is broker work under [Business and Professions Code 10131](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131). You need that license from the state’s Department of Real Estate before you act as a broker, under [Business and Professions Code 10130](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10130). [Resident apartment managers and their staff are exempt](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10131.01). A broker who holds other people’s money must keep it in a [trust fund account at a bank or other recognized depository in California](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=10145).

### How to start a property management company in North Carolina

In North Carolina, you need an active broker license, per the [North Carolina Real Estate Commission](https://www.ncrec.gov/Consumer/PropertyManagement). The state has no salesperson license. You start as a provisional broker, overseen by a broker-in-charge, per the [Commission’s licensing FAQ](https://www.ncrec.gov/Licensing/Licensingfaq). Security deposits and some other funds must go in an insured trust account.

## How Much Does It Cost to Start a Property Management Company?

Most new property management companies spend [$2,000 to $10,000 or more](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) to launch, by Buildium’s planning estimate, as of August 2026. A home-based start may come in near the low end, Buildium says. An office lease and heavy marketing can push it to the top or past it.

**$3,000 to $7,000** is what some lean startups spend to launch, per ManageCasa.

[Source: ManageCasa, August 2026](https://managecasa.com/articles/how-to-start-a-property-management-company)

**Under $300** is what registering a business with the state costs in most cases, says the SBA.

[Source: SBA, August 2026](https://www.sba.gov/counseling/launch-your-business/)

These are published estimates. Your license fees, insurance and software set your real number.

| Cost item | Published range or price | Source (as of) |
| --- | --- | --- |
| EIN (federal tax ID) | Free | [IRS](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number) (October 2026) |
| LLC formation fees | $50 to $500 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| Broker license and exam fees | $300 to $1,200 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| Licensing and pre-license education | $1,000 to $5,000 (varies with state course hours) | [ManageCasa](https://managecasa.com/articles/how-to-start-a-property-management-company) (August 11, 2026) |
| Errors and omissions insurance | $800 to $2,000 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| General liability insurance | $500 to $1,500 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| Property management software | $600 to $3,000 a year | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| Trust account setup and bank fees | $100 to $300 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| First marketing and website | $500 to $2,500 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |
| Office supplies and lockboxes | $200 to $800 | [ZenBusiness](https://www.zenbusiness.com/start-a-business/real-estate/property-management/) (July 28, 2026) |

The big swing items are license education, insurance and marketing. The license can cost the most time, too, so budget for it first.

[**Already have a website for your new company?** Send the address and we send back what it actually ranks for today, from Search Console, with the gaps marked.](https://kihanmarketing.com/marketing-audit/)

## How Do You Set Up the Property Management Business?

Pick a business structure, register it with your state, get an EIN and open a business bank account. The [SBA](https://www.sba.gov/counseling/launch-your-business/) puts structure first: “You’ll need to choose a business structure before you register your business with the state.”

1. **Write a one-page business plan.** Name your area, the property types you will manage, your fees and the door count you need to break even (see the [calculator](https://kihanmarketing.com/start-a-property-management-company/#break-even) below).
2. **Choose a structure.** Many managers pick an LLC. The SBA says LLCs “protect you from personal liability in most instances,” though that has limits.
3. **Register with your state.** Most states have you register with the Secretary of State’s office or a similar agency. An LLC needs a registered agent in your state before you file.
4. **Get your EIN.** The [IRS EIN tool](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number) is free. It issues the number online “in minutes,” the IRS says. Form your LLC first, or the IRS says your application may be delayed.
5. **Open a business bank account.** You can open one once you have your EIN. This is your operating account, not your trust account.
6. **Get local licenses and permits.** Check your state, county and city rules.

In Texas, check one more thing. A business entity may not act as a broker unless it holds its own license, under [Occupations Code 1101.351](https://statutes.capitol.texas.gov/Docs/OC/htm/OC.1101.htm). So your LLC may need a license, not just you.

You may read that new companies must file a beneficial ownership (BOI) report. As of October 2026, [FinCEN](https://www.fincen.gov/boi) says “U.S. companies are exempt.”

## What Insurance Does a Property Management Company Need?

You need general liability and errors and omissions coverage from day one. Add workers’ comp once you hire. Errors and omissions (E&O) is “also called professional liability insurance,” says [Insureon](https://www.insureon.com/real-estate-business-insurance/property-managers/cost). Property managers pay a median of [$83 per month](https://www.insureon.com/real-estate-business-insurance/property-managers/cost) for it, as of its February 19, 2025 update.

E&O matters in this work. You hold other people’s money and make calls on their homes. A missed repair or a lease mistake can turn into a claim.

| Coverage | What it covers | Median cost for property managers (Insureon, as of February 2025) |
| --- | --- | --- |
| General liability | Bodily injury, property damage, libel, slander and defending lawsuits ( [SBA](https://www.sba.gov/counseling/launch-your-business/) ) | [$44 per month](https://www.insureon.com/real-estate-business-insurance/property-managers/cost) |
| Errors and omissions (professional liability) | Financial loss from “malpractice, errors, and negligence” ( [SBA](https://www.sba.gov/counseling/launch-your-business/) ) | [$83 per month, or $996 annually](https://www.insureon.com/real-estate-business-insurance/property-managers/cost) |
| Business owner’s policy | A bundle of typical coverages in one package ( [SBA](https://www.sba.gov/counseling/launch-your-business/) ) | [$212 per month](https://www.insureon.com/real-estate-business-insurance/property-managers/cost) |
| Workers’ compensation | Required once you have employees ( [SBA](https://www.sba.gov/counseling/launch-your-business/) ) | [$73 per month](https://www.insureon.com/real-estate-business-insurance/property-managers/cost) |

Once you have employees, federal law requires more, says the [SBA](https://www.sba.gov/counseling/launch-your-business/). That means workers’ comp, unemployment and disability insurance. It adds that state laws vary. Insureon’s figures are medians for managers who got quotes through it. Your price will depend on your state, doors and claims.

Ask each owner to keep their own landlord policy too. Yours covers your firm, not their home.

## How Does a Property Management Trust Account Work?

A trust account is a separate bank account for rent, deposits and other money you hold for owners and tenants. That money is never yours to spend. Mixing it with your own money is called commingling. Rules like Washington’s require you to keep the two apart.

North Carolina spells out the flow. All the money you collect goes into trust “before disbursing to owners, vendors or to yourself,” says a [Commission bulletin](https://bulletins.ncrec.gov/top-ten-issues-for-property-managers/). Your fee comes out after the rent goes in, never before.

### What do states require?

Each state below sets its own trust account rules. They differ on how you name the account, how fast you deposit and where the bank must be.

- **North Carolina:** Statements, deposit tickets and checks must say “Trust Account” or “Escrow Account,” per a [Commission bulletin](https://bulletins.ncrec.gov/opening-a-real-estate-broker-trust-account/). The [same bulletin](https://bulletins.ncrec.gov/opening-a-real-estate-broker-trust-account/), from August 2022, lets a broker keep up to $100 of company money in the trust account for bank charges. If monthly charges run higher, the broker may keep more.
- **Arizona:** All property management accounts are trust accounts. Money not in dispute must be deposited within three banking days, under [A.R.S. 32-2174](https://www.azleg.gov/ars/32/02174.htm). It can go in the trust account or the owner’s own account.
- **Washington:** Client money stays “separate and apart” from your own, in a Washington bank, under [RCW 18.85.285](https://app.leg.wa.gov/RCW/default.aspx?cite=18.85.285).
- **South Carolina:** The account name must include “trust” or “escrow,” under [S.C. Code 40-57-136](https://www.scstatehouse.gov/code/t40c057.php).
- **Oregon:** Once licensed, a property manager must keep at least one clients’ trust account, per the [Oregon Real Estate Agency](https://www.oregon.gov/rea/licensing/get-license/Pages/property-manager.aspx).

Many managers open more than one. The [NC bulletin](https://bulletins.ncrec.gov/opening-a-real-estate-broker-trust-account/) says brokers often keep one account for deposits and one for rent. Texas allows that but does not require it. Reconcile on the schedule your state sets, and keep every record.

## What Goes in a Property Management Agreement?

A property management agreement sets what you may do for the owner, what you charge and how you handle the owner’s money. The [North Carolina Real Estate Commission](https://www.ncrec.gov/Consumer/PropertyManagement) lists five things it should clearly outline: scope of authority, compensation, duration, handling of owner funds and reporting obligations.

Get it in writing before you start. A 2011 [NC Commission bulletin](https://bulletins.ncrec.gov/top-ten-issues-for-property-managers/) is clear. A broker must sign a written agreement “before beginning to manage” an owner’s property. Use this list when you draft yours, then have an attorney in your state review it.

- Which properties you manage, and what you are allowed to do on the owner’s behalf
- Your fees, and when each fee is earned
- A repair limit: how much you may spend without asking the owner
- Who picks vendors, and who approves legal action such as an eviction
- How tenants are screened, and how far background checks go
- How often you inspect the property
- Where rent and deposits are held, and when you send rent to the owner
- What owner statements you send, and how often
- How long the agreement runs, and how either side ends it
- What happens to tenants, deposits and records when it ends

Keep signed copies. North Carolina’s bulletin says to keep agreements and leases for three years after you stop managing a property.

## How Do Property Management Companies Make Money?

Property management companies earn a monthly fee, usually a percent of the rent. They add fees for finding tenants, renewing leases, setting up new owners and inspections. Some also mark up repair invoices.

### How much do property management companies charge?

As of September 2026, the average management fee is 8.49% of monthly rent, per an [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) survey. Rates ranged from 3.75% to 14.0% across the 80 metro areas it surveyed. In the same [iPropertyManagement survey](https://ipropertymanagement.com/research/average-property-management-fees) (September 2026), managers who charge a flat fee average $101.04 per unit a month.

| Fee | Published figure (as of October 2026 unless dated) | Source |
| --- | --- | --- |
| Monthly management fee (percent of rent) | Average 8.49% of monthly rent; range 3.75% to 14.0% across 80 metro areas | [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) (updated September 23, 2026) |
| Monthly management fee (planning range) | 8 to 12 percent of monthly rent | [Buildium blog](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) (August 11, 2026) |
| Flat monthly fee | Average $101.04 per unit a month; range $49.00 to $250.00 | [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) (updated September 23, 2026) |
| Tenant placement (leasing) fee | Average 70.6% of rent collected, among companies that also manage | [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) (updated September 23, 2026) |
| Tenant placement (planning range) | 50 to 100 percent of one month’s rent, or a flat $500 to $1,500 | [Buildium blog](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) (August 11, 2026) |
| Lease renewal fee | $100 to $350 | [Buildium blog](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) (August 11, 2026) |
| Setup or onboarding fee | Average $185.24 per contract; planning range $100 to $350 | [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) (updated September 23, 2026), [Buildium blog](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) (August 11, 2026) |
| Inspection fee | Average $106.72 each | [iPropertyManagement](https://ipropertymanagement.com/research/average-property-management-fees) (updated September 23, 2026) |
| Maintenance markup | 10 to 15 percent of the invoice | [Buildium blog](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) (August 11, 2026) |

The [North Carolina Real Estate Commission](https://www.ncrec.gov/Consumer/PropertyManagement) tells owners which fees to expect. Up front: setup, leasing, ads and screening. Then: the monthly fee, repair coordination, renewals, inspections and statements. Pick the fees you will charge, and write each one into your agreement.

### How many doors do you need to break even?

You need enough doors that your fees cover your monthly costs, including your own pay. Start with what one door pays you each month: your fee percent times its rent.

**How many doors do you need?**

- Monthly business costs (software, insurance, marketing, your own pay)
- Average monthly rent per door
- Your management fee percent (type 8.49 for 8.49%)

It divides your monthly costs by what one door pays you each month. Round up to the next whole door.

Here is an example in rent terms. Say your monthly costs equal two months of average rent in your area. At the 8.49% survey average, each door pays you 8.49% of its rent. Two months of rent divided by 0.0849 is about 23.6, so you need 24 doors. At a 10% fee, you need 20.

Leasing and renewal fees come on top, so real break-even can be lower. Vacancies push it up.

## What Software Does a New Property Management Company Need?

You need software that collects rent, keeps the trust books, tracks repairs and pays owners. Pick it by how many doors you have. Per-unit prices look small, but minimums set the bill when you have few doors.

| Software | Published starting price (as of October 2026) | Minimum or limit | Source |
| --- | --- | --- | --- |
| Buildium Essential | From $62/month | Up to 40 units | [buildium.com](https://www.buildium.com/pricing/) |
| Yardi Breeze | $1 per unit per month | $100 minimum per month | [yardibreeze.com](https://www.yardibreeze.com/pricing/) |
| DoorLoop One | $2.50 per unit, per month ($1.50 per unit above 100) | Minimum of $199 per month | [doorloop.com](https://www.doorloop.com/pricing) |
| Rentvine | As low as $1.50 per unit | Priced per active unit, plus a one-time setup fee | [rentvine.com](https://www.rentvine.com/pricing) |
| AppFolio Core | Starting at $1.49 per unit per month | Minimum spend and 50-unit minimum apply | [appfolio.com](https://www.appfolio.com/pricing) |

- **Your first 40 doors.** Buildium Essential covers up to 40 units, per [Buildium’s pricing page](https://www.buildium.com/pricing/). As of October 2026, Yardi Breeze’s $100 monthly minimum is your price until you pass 100 units, per [Yardi Breeze](https://www.yardibreeze.com/pricing/).
- **Around 50 to 100 doors.** AppFolio Core comes into play once you reach its 50-unit minimum, per [AppFolio’s pricing page](https://www.appfolio.com/pricing).
- **Past 100 doors.** Compare full quotes, including onboarding, payment and screening fees, not just the per-unit rate.

For side-by-side detail, read [AppFolio vs Buildium](https://kihanmarketing.com/appfolio-vs-buildium/) and [AppFolio vs Yardi](https://kihanmarketing.com/appfolio-vs-yardi/), or our [software comparison by unit count](https://kihanmarketing.com/expert-property-management-software-solutions-for-growth/). If you pick AppFolio, build your site around its listings, as our page on [AppFolio websites](https://kihanmarketing.com/property-management-marketing/appfolio-property-management-websites/) shows.

**Why take this from us**

Kiran Dasgupta wrote this guide. He is the founder and lead strategist at Kihan Marketing and leads every engagement. We build websites and run SEO for property management companies. A Seattle property manager ran a 5-page AppFolio-based site. We built it a 250+ page website, with a page for every property it manages. We also built AppFolio Listings Pro, a plugin that turns AppFolio listings into pages for each unit. And we help clients shortlist and choose property management software.

## Do You Need a Website and Google Business Profile Before Your First Owner?

Yes. Owners look you up before they trust you with a home and its rent. If they find nothing, or a page with no details, you lose them before the first call.

Your first site needs to answer what an owner asks first.

- Who you are, and the license you or your broker hold
- The areas and property types you manage
- Your fees, in plain words
- How you screen tenants, handle repairs and pay owners
- A clear way to call or send a property for a quote

Set up a Google Business Profile as well. It helps you show up on Google Maps and in the [local pack](https://kihanmarketing.com/glossary/local-pack/) when owners search for a manager near them. Ask your first owners for reviews as soon as you have earned them.

Our page on [property management website design](https://kihanmarketing.com/property-management-marketing/property-management-website-design/) covers the rest.

## How Do New Property Managers Win Their First Owners?

Start with people you know, then let referrals carry you. In [Buildium’s 2027 industry report](https://www.buildium.com/resource/2027-property-management-industry-report/), 53% of growing firms said referrals from their owner clients did the most for their growth. The same report found 47% of rental owners call themselves “Accidental Landlords” or “Unintentional Investors.”

- **Your own circle.** Friends, family and coworkers who rent out a home.
- **Accidental landlords.** People who moved and kept the old house, or got a rental in a will.
- **Local investors.** Landlord groups and investor meetups.
- **Agents who don’t manage.** They meet owners who want a manager, not a sale.

Buildium also lists where referrals start: agents, lenders, vendors, landlord groups, the Chamber of Commerce and NARPM chapters. For the full playbook on [owner leads](https://kihanmarketing.com/glossary/owner-leads/), read our [owner leads guide](https://kihanmarketing.com/property-management-owner-leads/).

## Can You Start a Property Management Company With No Money or No Experience?

With little money, yes. With no experience, usually not on your own. Cash is not the main gate. The EIN is free, state registration is often under $300 per [the SBA](https://www.sba.gov/counseling/launch-your-business/) (August 2026), and software is priced per unit. The real gate is the license, and the years of experience a broker license can need.

So the low-cost start is the broker path. Get licensed, join a firm that lets you manage, and learn the work under its license.

Credentials come later. The National Association of Residential Property Managers (NARPM) offers the RMP designation. To earn it, “You must already manage 100 units over a two-year period,” per [NARPM](https://www.narpm.org/education/designations-and-certifications/residential-management-professional/). The Institute of Real Estate Management (IREM) offers the Certified Property Manager (CPM) credential. It needs “three years (36 months) of experience,” per [IREM](https://www.irem.org/certifications/for-individuals/cpm-certified-property-manager). You can join NARPM sooner. Members “do not have to hold an active real estate license,” per its [membership page](https://www.narpm.org/join/narpm-membership/), but must follow state law.

**Quick check: are you ready to take your first owner?**

1. Do you hold the license your state requires, or work under a broker who agreed to let you manage?
2. Is your business registered, with an EIN and a business bank account?
3. Is your trust account open and set up the way your state requires?
4. Do you have general liability and E&O coverage in place?
5. Do you have a written management agreement and software ready to collect rent?

0 to 1 yesNot yet. Start with the license question. Nothing else is safe until it is a yes.2 to 3 yesGetting close. If question 1 is a no, fix that first. Then close the trust account and insurance gaps.4 to 5 yesNearly ready. If the license is in place, close any item still open and start talking to owners.

[Property Management MarketingWebsites, SEO and Google Business Profile work for property management companies](https://kihanmarketing.com/property-management-marketing/)

## What to Do First

Do these three things in order.

1. **Check your state’s license path.** Read your state commission’s rules. Find out if you need a broker license, a property manager license, or a broker to work under.
2. **Form the business and open the trust account.** Register your entity, get your EIN, then open separate operating and trust accounts.
3. **Build the agreement, software and website.** Have all three ready before you sign your first owner.

## Questions About How to Start a Property Management Company

Is a property management company profitable, and how many doors do you need?It can be, once you have enough doors. The number depends on your fee, local rents and your costs, so use the [break-even calculator](https://kihanmarketing.com/start-a-property-management-company/#break-even) above. Many firms stay small. In [Buildium’s 2027 survey](https://www.buildium.com/resource/2027-property-management-industry-report/), 41% of respondents managed 100 units or fewer.Do you need an LLC to start a property management company?An LLC is a choice, not a must, but many managers form one. The [SBA](https://www.sba.gov/counseling/launch-your-business/) says an LLC protects your personal assets in most cases, with limits. In Texas, the company itself also needs a license.How long does it take to start a property management company?The license sets the pace. The paperwork is quick. You can get an EIN online “in minutes,” says the [IRS](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number). A broker license can take years, since Florida and Texas both require years of sales experience first.Do you need a real estate license to manage an HOA?It depends on the state. [Georgia](https://grec.state.ga.us/obtaining-a-license/real-estate/) has its own Community Association Manager license, with a 25-hour course. [Florida](https://www.flsenate.gov/Laws/Statutes/2025/475.011) exempts a salaried condo or co-op manager who arranges rentals of a year or less. Check your state before you rent units for owners.How do you get a property management license?In most states, you get an entry-level real estate license and manage under a broker. In Oregon, South Carolina and Montana, you can instead meet an education requirement and pass an exam for a property manager license. Oregon asks for a 60-hour course and an exam, per the [Oregon Real Estate Agency](https://www.oregon.gov/rea/licensing/get-license/Pages/property-manager.aspx). South Carolina asks for 30 classroom hours of property management study, or a qualifying degree, under [S.C. Code 40-57](https://www.scstatehouse.gov/code/t40c057.php). Montana asks for an approved course and an exam, under [MCA 37-56-105](https://leg.mt.gov/bills/mca/title_0370/chapter_0560/part_0010/section_0050/0370-0560-0010-0050.html). In broker states, the entry license is usually a sales license, or a provisional broker license in North Carolina. The [broker path](https://kihanmarketing.com/start-a-property-management-company/#broker-path) above explains the steps after that.How much do property managers make?Property, real estate and community association managers earned a median of $69,990 a year in May 2025, per the [Bureau of Labor Statistics](https://www.bls.gov/ooh/management/property-real-estate-and-community-association-managers.htm). In the same [BLS data](https://www.bls.gov/ooh/management/property-real-estate-and-community-association-managers.htm) for May 2025, the lowest 10% earned under $41,010 and the top 10% over $139,680 a year.What fair housing rules apply to property managers?The federal Fair Housing Act bans housing bias by landlords and real estate firms. It covers race or color, religion, sex, national origin, familial status and disability, per the [Department of Justice](https://www.justice.gov/crt/fair-housing-act-1). It also bans rental ads that show a preference based on those traits, under [42 U.S.C. 3604](https://www.law.cornell.edu/uscode/text/42/3604).Can you run a property management company from home?Yes, and it keeps costs down. [Buildium](https://www.buildium.com/blog/how-to-start-a-property-management-company-3/) says a home-based start may come in near the low end of its launch estimate.[**Want owners to find your new company on Google?** Send the address and we send back what it actually ranks for today, from Search Console, with the gaps marked.](https://kihanmarketing.com/marketing-audit/)