Start a Property Management Company in Georgia | 2024 Guide

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Georgia Property Management Company

Are you considering starting a property management company in Georgia? Property management is an excellent business opportunity for individuals with a passion for real estate who are detail-oriented and can effectively manage multiple tasks simultaneously. The demand for property managers continues to grow, making it an attractive and lucrative Limited Liability Company in Georgia.

Webinarcare Editorial Team will help you gain knowledge through thorough research and market study. Before Starting a Property Management Company in Georgia, all the steps in this article must guide you.

How to Start a Property Management Company in Georgia

What is a Property Management Company?

A property management company in Georgia is a professional firm that handles the administration of residential, commercial, or industrial real estate. Such companies deal with all aspects of managing a property, from finding and vetting tenants to repairing and maintaining the property, collecting rent, and handling tenant issues. These companies are an asset for property owners who may not have the time or expertise to manage their properties effectively and efficiently.

Forming a Limited Liability Company (LLC) can be a strategic decision for those considering starting a property management company in Georgia. Starting an LLC provides several benefits, including the protection of personal assets. In an LLC, the owner’s assets are protected in case of any litigation or debt incurred by the company. It also offers greater credibility and potential tax advantages and allows for an easy ownership transfer. Starting an LLC involves filing the necessary paperwork with the Georgia Secretary of State and paying an initial filing fee.

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How to Start a Property Management Company in Georgia

Starting a property management company in Georgia can be a lucrative and rewarding business venture especially if you are in Atlanta. With the right planning, resources, and dedication, you can create a successful company that caters to the needs of property owners and investors in your area. Here is the step-by-step guide to launching a property management company in Georgia.

Step 1: Understand Property Management

Property management oversees and operates real estate properties, including residential, commercial, and industrial properties. The role of a property manager is to manage the day-to-day activities of properties, ensuring that they are well-maintained and that rent is collected on time. Property managers also deal with tenant issues, repairs and maintenance, and marketing vacant properties.

Step 2: Evaluate The Market

Before starting a property management company in Georgia, you need to evaluate the local market to determine if there is a demand for your services. Here are some factors to consider:

  • Type of Properties: Determine the properties in Georgia, such as single-family homes, multi-family buildings, commercial properties, or vacation rentals.
  • Competition: Identify other property management companies and analyze their services, pricing structures, and market share.
  • Market Trends: Research the local real estate market trends, including rental rates, vacancy rates, and property values.
  • Potential Clientele: Determine the number of property owners and investors in your target area who may require property management services.

Step 3: Create a Business Plan

A solid business plan is crucial for the success of your property management company. Your business plan should include the following elements:

  • Executive Summary: A brief overview of your Georgia property management company, including its mission statement, goals, and objectives.
  • Market Analysis: A detailed analysis of the local real estate market, competition, and potential clients.
  • Services: Describe the property management services you plan to offer, such as tenant screening, rent collection, property maintenance, and marketing.
  • Marketing Strategy: Outline your marketing plan, including your target audience, marketing channels, and budget.
  • Financial Projections: Provide financial projections for your property management company, including revenue, expenses, and projected profits.

Step 4: Register Your Business and Obtain Licenses

To start a property management company in Georgia, you must register your business and obtain the necessary licenses and permits. Here are the steps to follow:

Choose a Business Structure

For starting a property management company, several business structures are available in Georgia. Each structure has its benefits and drawbacks, depending on your business goals, financial situation, and personal preferences. The common business structures you can choose from are:

  • Sole Proprietorship: This is the simplest business structure, which involves a single individual owning and operating the property management company. The owner has complete control over the business and is personally responsible for all debts and liabilities. There is no formal registration process for a sole proprietorship, but you may still need to obtain licenses and permits specific to property management.
  • Partnership: A partnership is a business structure where two or more people share ownership of the property management company. Partnerships can be general, limited, or Georgia Limited Liability Partnerships (LLP). Each partner contributes to the business and shares in profits and losses. Partnerships must file a partnership agreement with the Georgia Secretary of State and obtain necessary licenses and permits.
  • Limited Liability Company (LLC): An LLC is a hybrid entity that combines a partnership’s flexibility with a corporation’s limited liability protection. Owners, known as members, are not personally responsible for the company’s debts and liabilities. To form an LLC in Georgia, you must file the Articles of Organization with the Georgia Secretary of State and comply with any licensing and permitting requirements.
  • Corporation: A corporation is a separate legal entity from its owners, known as shareholders. Corporations offer limited liability protection and can issue stock to raise capital. There are two types of corporations: C Corporations and S Corporations. Forming a corporation in Georgia requires filing the Articles of Incorporation with the Georgia Secretary of State.
  • Professional Corporation (PC): This type of corporation is designed specifically for licensed professionals, such as real estate brokers, who wish to form a corporation for their property management company. Professional Corporation offers limited liability protection and must comply with all state regulations for the specific profession. To form a Professional Corporation in Georgia, you must file the Articles of Incorporation with the Georgia Secretary of State and adhere to any licensing and permitting requirements.

Before choosing a business structure for your property management company in Georgia, consult with a Business Attorney in Georgia to discuss the best option for your situation. Remember that each structure has its tax implications and requirements, so it is essential to understand your choice’s financial and legal ramifications.

Choose a Business Name

Choosing a business name for your Georgia property management company is important to establish your brand identity and attract potential clients. Here are a few suggestions to consider:

  1. Georgia Premier Property Management
  2. Georgia HomeGuard Property Services
  3. Georgia Nexus Property Management
  4. Georgia BlueSky Property Solutions
  5. Georgia KeyPoint Property Management

Remember to check the availability of your chosen business name with the Georgia Corporations Division and ensure it’s not already in use by another company. There is a complete guide on Georgia Business Name Search for you to have a property management company name. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for Georgia DBA (doing business as). 

However, before filing a DBA, you should know that you need to renew your DBA every Indefinite, which costs $172.

Once you’ve settled on a unique name, you can hire a Registered Agent and obtain the required licenses and permits.

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Hire a Registered Agent

A Registered Agent is a person or entity designated to receive important legal documents and correspondence for your business. In Georgia, every business entity, such as an LLC or a corporation, must have a Registered Agent with a physical address within Georgia. The Registered Agent’s primary role is to ensure that your business complies with state regulations and be available to receive any legal notices or official government correspondence.

In Georgia, the cost of having a Registered Agent ranges from $50 – $150. However, suppose you are still wondering how to hire a Registered Agent. In that case, you can also serve as your Registered Agent, appoint a friend or family member, or hire the Best Georgia Registered Agent Services.

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File For Articles of Organization or Articles of Incorporation

If you form an LLC for your Georgia property management company, you must file the Georgia Articles of Organization, which costs $100. However, you must file the Articles of Incorporation if you form a Corporation for your Georgia property management company. The Articles of Incorporation filing fee costs $100 for filing online and $110 for filing it by mail and in person.. It is crucial to provide accurate and complete information on this document, as errors or omissions may result in delays or rejection of your filing.

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Obtain an Employer Identification Number

You must first obtain an Employer identification number (EIN) in Georgia from the IRS if you will open a bank account or hire an employee for your Georgia property management company. 

The application of an EIN in Georgia can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Get the Necessary License and Permits

When starting a property management company in Georgia, you must obtain legal licenses and permits. Here are some common licenses and permits you may need:

  • Business License: Georgia requires businesses to obtain a Business License to operate legally. The business license fee in Georgia ranges from $50 – $300.
  • Real Estate Broker License: In many states, property management companies must have a licensed real estate broker or designate a licensed broker to oversee the business operations. Check with your Georgia Real Estate Commission or similar governing body for the requirements and application process.
  • Salesperson License (if applicable): If your Georgia property management company also engages in leasing or renting properties, you may need to have a licensed salesperson working under the supervision of a licensed broker.
  • State Tax Registration: Register with the Georgia Department of Revenue to collect and remit sales and use taxes and other applicable state taxes.
  • Local Zoning and Land Use Permits: Depending on the nature of your Georgia property management services and the location of your office, you may need to obtain zoning and land use permits. 
  • Workers’ Compensation Insurance: If you have employees, you’ll likely need to obtain workers’ compensation insurance by Georgia’s laws.
  • Professional Liability Insurance: Georgia property management companies should consider obtaining professional liability insurance (errors and omissions insurance) to protect against potential legal claims related to business operations.

Before starting your property management company, consult a Business Attorney in Georgia to ensure you obtain all the necessary legal permits and licenses. Failing to do so can result in fines, penalties, and even the closure of your Georgia business.

Step 5: Set Up Your Office

While starting a property management company without a physical office is possible, having a dedicated workspace can help establish your credibility and professionalism. Select a location that is convenient for both you and your clients. This may be a home office, a co-working space, or a commercial office space. Also, you will need basic office equipment such as a computer, printer, phone, and filing system.

Step 6: Market Your Property Management Company

Effective marketing is crucial for attracting clients and growing your Georgia property management business. Usually, the best way to market your property management company is to advertise in local newspapers, real estate magazines, and direct mail campaigns.

Step 7: Build a Team

As your property management company grows in Georgia, you may need additional staff to help manage your workload. Consider hiring property managers, administrative assistants, maintenance technicians, and marketing professionals. Ensure your team is knowledgeable, professional, and committed to providing excellent customer service. However, before hiring an employee for your Georgia property management company, you should obtain an EIN and open a bank account.

Benefits of Starting a Property Management Company

There are several benefits of starting a property management company in Georgia:

  • Steady Income: Property management is a growing industry in Georgia, and there is always a demand for qualified professionals to manage properties. This means starting an LLC property management company can provide a steady income stream.
  • Low Startup Costs: Starting a property management company requires minimal investment, as you do not need to purchase any property. You can start with just a few clients and gradually increase your portfolio.
  • Flexible Work Schedule: Property management companies offer flexible work schedules, allowing you to work around other commitments such as family and other business ventures.
  • Growth Opportunities: With the right marketing strategies, you can rapidly grow your property management company and increase your client base.
  • Diverse Client Base: Property management companies cater to a diverse range of clients, including landlords, tenants, and property owners. This means that there is always a demand for your services.

FAQs

What is the process involved in starting a property management company in Georgia?
To start a property management company in Georgia, you’ll need to follow these steps
Do I need to be licensed to start a property management company in Georgia?
Yes. Georgia requires property management companies to have a real estate broker’s license or a community association manager’s license.
What is the difference between a real estate broker’s license and a community association manager’s license?
A real estate broker’s license allows you to manage any type of property, while a community association manager’s license only applies to managing community associations, such as HOAs.
What kind of education do I need to obtain a real estate broker’s license in Georgia?
You’ll need to complete a certain amount of pre-licensing education, typically around 75 hours, and pass the Georgia real estate broker’s exam.
What kind of education do I need to obtain a community association manager’s license in Georgia?
In Georgia, you’ll need to take 25 hours of pre-licensing education and pass the community association manager’s exam.
Can I start a property management company in Georgia without any experience in real estate or property management?
It’s possible, but having experience in the industry is highly recommended. It could be helpful to work for a property management company first to gain some practical knowledge and experience.
What kind of insurance do I need for a property management company in Georgia?
You’ll need general liability insurance, and it’s advisable to obtain professional liability insurance as well.
What are some common services offered in property management in Georgia?
Some common services offered include
What’s the typical fee structure for property management companies in Georgia?
Property management companies in Georgia generally charge around 8-12% of the monthly rent, plus fees for additional services like tenant placement.
Can a property management company manage rental properties in multiple counties in Georgia?
Yes. Property management companies can manage rental properties in multiple counties in Georgia, as long as they are properly licensed.
When should I hire a property management company for my rental property in Georgia?
Some landlords may choose to hire a property management company right away, while others may decide after dealing with the stress of managing properties on their own for a while. Common reasons to hire a property management company include being too far away from the rental property to manage it effectively, not having the necessary experience, or simply not having the time.
Can property management companies in Georgia handle home owner associations (HOAs)?
Yes. Property management companies can manage HOAs in Georgia.
What responsibilities do property management companies have when handling an HOA?
Some common responsibilities include
Can a property management company handle both residential and commercial properties in Georgia?
Yes. Some property management companies specialize in one or the other, while others may handle both.
What is the difference between managing commercial and residential properties?
Managing commercial properties generally involves more complex leases and tenant relationships, while residential management deals more with tenant placement and day-to-day property maintenance.
Can property management companies in Georgia deal with eviction proceedings?
Yes. Property management companies in Georgia can handle the eviction process, but a licensed attorney must handle all legal proceedings.
Is property management a regulated industry in Georgia?
Yes. Property management is regulated by the Georgia Real Estate Commission and must comply with the real estate license laws.
Do property management companies have to comply with fair housing laws in Georgia?
Yes. Property management companies must comply with fair housing laws in Georgia, including the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, sex, national origin, familial status, and disability.
Is it necessary to have a website for my property management company in Georgia?
While not legally required, having a website can help build your online presence and make it easier for potential customers to find and hire you.
Is it necessary to have a property management office in Georgia?
Not necessarily. While having an office can help with professionalism and organization, some property management companies work remotely.
Do property management companies in Georgia have access to my bank account information?
No. Property management companies should never have access to your bank account information. They may collect rent payments and handle finances, but should always use a separate account in your name.
What is the best way to find a reputable property management company in Georgia?
One way to start is by asking for referrals from friends or other rental property owners in the area. Additionally, searching online for reviews and ratings can be helpful in finding a reputable company.
Can a property management company withhold a security deposit in Georgia?
Yes, if there is a legitimate reason, such as unpaid rent or damage to the property. However, they must follow the proper procedure to withhold the security deposit, which involves providing an itemized list of damages and costs to the tenant within 30 days of move-out.
How does Georgia law address property owner-tenant relationship disputes?
Georgia law provides specific procedures for resolving disputes between landlords and tenants, which may include filing a claim in court or pursuing mediation or arbitration.
Are property management companies responsible for paying taxes on rental income in Georgia?
No. Property management companies are not responsible for paying taxes on rental income; that is the responsibility of the property owner.
If I hire a property management company, do I still have control over my rental property in Georgia?
Yes. As the property owner, you retain full ownership and control over your rental property. The property management company works for you and should always act in your best interest when managing the property.
Can a property management company help me lease my rental property in Georgia faster?
Yes. Property management companies typically have access to a wider pool of potential renters and perform tenant screening, which can help expedite the leasing process.
Can a property management company help me find reliable contractors for repairs and maintenance in Georgia?
Yes. A good property management company should have a network of reliable and trustworthy contractors for repairs and maintenance. This can save landlords the time and hassle of finding reliable contractors on their own.
How often will a property management company inspect my rental property in Georgia?
This can vary depending on the property management company and the agreement made with the property owner. However, it’s common for companies to perform inspections at least once a year, or more frequently if needed.
What are the legal requirements for starting a property management company in Georgia?
To start a property management company in Georgia, you need to register an LLC with the Georgia Secretary of State and obtain a license from the Georgia Real Estate Commission.
Do I need to have a real estate license to start a property management company in Georgia?
Yes, if you are going to buy, sell, rent, or lease real estate properties as a property manager, you need to have a real estate license in Georgia.
Is it mandatory to have an office location to start a property management company in Georgia?
Yes, you need to have a physical location to operate your property management company in Georgia.
Can I start a property management company in Georgia as a sole proprietor?
Yes, you can start a property management company as a sole proprietor in Georgia if you get a license from the Georgia Real Estate Commission.
What are the fees associated with obtaining a property management license in Georgia?
The application fee for a property management license in Georgia is $170, and the renewal fee is $130.
Are there any educational requirements to become a property manager in Georgia?
Yes, property managers need to complete a pre-licensing course of 75 hours to obtain a license in Georgia.
What is the scope of work for a property manager in Georgia?
The property manager’s scope of work in Georgia includes rent collection, lease agreements, tenant screening, property maintenance, and financial reports.
Can a property management company handle all aspects of property maintenance in Georgia?
Yes, property management companies in Georgia can handle all aspects of property maintenance, including repair, pest control, emergency maintenance and groundskeeping, amongst other responsibilities.
Is there a limit to how many properties a property manager can handle in Georgia?
No, there is no limit to how many properties a property manager can handle in Georgia.
Can a property management company evict a tenant in Georgia?
Yes, a property management company can evict a tenant in Georgia if they have to violate a lease agreement.
Can a property management company charge fees if its responsibilities include leasing a property in Georgia?
Yes, property management companies in Georgia can charge fees for completing lease agreements on behalf of their clients.
How much should I charge for property management services in Georgia?
The fees for property management services in Georgia vary by company and based on the type of arrangement placed between clients and property managers.
How can I attract clients for my property management company in Georgia?
You can attract clients for your property management company in Georgia by offering high-quality property management services and marketing your company online and via referrals.
Do I need to carry liability insurance as a property management company in Georgia?
Yes, carrying liability insurance is necessary to start a property management company in Georgia to protect yourself against potential lawsuits and other claims.
Can I get a property management license as a non-resident of Georgia?
Yes, you can get a property management license as a non-resident of Georgia if you meet qualification criteria set by the Georgia Real Estate Commission.
Are there any rules in Georgia regarding trust accounts for property management companies?
Yes, all security, pet or other deposits must subscribe to the Georgia Residential Mortgage Act secure.
What is the landlord-tenant law in Georgia regarding security deposits?
In Georgia, landlords are required to return tenant security deposits within a reasonable timeframe after the tenant leaves the property barring damage caused by tenants or current safety violations against the property.
What is the notice requirement for raising a tenant’s rent in Georgia?
Landlords in Georgia are required to provide a 60-day written notice before raising rent on their tenant.
What happens if a client wants to terminate the property management agreement in Georgia halfway?
The terms of the client-transaction will preside over how the agent accepts verbal notification.
How can one switch property management companies in Georgia?
Clients ultimately decide to get another management company if there’s sufficiency of unjustified delays or inconclusive warranty activities from their current property management company
Are there any disclosures a property management company has to make to clients in Georgia?
No disclosure requirements at a state level but always at your legal right to express notification. In Georgia Federal regulations audit property practices every two years.
What is the process for filing a complaint against a property management company in Georgia?
For violations by Georgia Real Estate Commission licensed individuals, the greenheart of grievances handles initial stages until litigation commences.
Can property management companies in Georgia handle rent collections?
Yes, managing rent collections is within a common property manager duty set.
Are there Georgia State mandated habitability requirements for rental properties?
Paying rents for a habitable house is an unwritten constitutional law. The tenant has the right to vacate residence finding deficiencies.
What is the requirement of regular inspection of rental properties in Georgia?
There isn’t a provision for customary inspections outlined, but All upkeep checks must be periodic ranging throughout the evaluation property list outline.
As a property management company in Georgia, am I legally responsible for the actions of tenants?
A tenant is liable for actions caused that generates their receipt on the extent tabulated.
What are the eviction laws in Georgia?
The Georgia Residential Landlord and Tenant Act provide GRLTA law attributes governing most property management details in eviction laws.
What is prohibited discrimination for property management companies in Georgia?
Property managers are prohibited from performing any acts of discrimination amongst the Federal title list, including color, national origin, gender, physical/activity limitations, pregnancy resources and family unitism.
What is tenant screening required for property management company legally by the State of Georgia for rejection of credit?
Assessing Credit is permissible, but by neither the Federal Law and GRLT Law must deficiency-neutral rejection obtain even using alternative methods.

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Conclusion

Starting a property management company in Georgia can be rewarding and profitable. By following the steps outlined in this guide, you can launch a successful property management business that meets the needs of property owners and investors in your area. Remember to stay up-to-date on industry trends and continually refine your services, marketing strategies, and customer service to ensure the long-term success of your property management company.

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