Start a Property Management Company in Idaho | 2024 Guide

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Team
Last updated: 
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Idaho Property Management Company

Are you considering starting a property management company in Idaho? 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 Idaho.

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

What is a Property Management Company?

A property management company in Idaho 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 Idaho. 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 Idaho Secretary of State and paying an initial filing fee.

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How to Start a Property Management Company in Idaho

Starting a property management company in Idaho can be a lucrative and rewarding business venture especially if you are in Boise. 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 Idaho.

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 Idaho, 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 Idaho, 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 Idaho 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 Idaho, 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 Idaho. 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 Idaho Limited Liability Partnerships (LLP). Each partner contributes to the business and shares in profits and losses. Partnerships must file a partnership agreement with the Idaho 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 Idaho, you must file the Certificate of Organization with the Idaho 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 Idaho requires filing the Articles of Incorporation with the Idaho 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 Idaho, you must file the Articles of Incorporation with the Idaho Secretary of State and adhere to any licensing and permitting requirements.

Before choosing a business structure for your property management company in Idaho, consult with a Business Attorney in Idaho 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 Idaho property management company is important to establish your brand identity and attract potential clients. Here are a few suggestions to consider:

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

Remember to check the availability of your chosen business name with the Idaho Secretary of State Business Entity Search and ensure it’s not already in use by another company. There is a complete guide on Idaho 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 Idaho DBA (doing business as)

However, before filing a DBA, you should know that you need to renew your DBA every Indefinite, which costs $25 Filing Fee and $20 Additional processing fee if filing a hard copy by mail or in-person.

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 Idaho, every business entity, such as an LLC or a corporation, must have a Registered Agent with a physical address within Idaho. 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 Idaho, 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 Idaho Registered Agent Services.

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File For Certificate of Organization or Articles of Incorporation

If you form an LLC for your Idaho property management company, you must file the Idaho Certificate of Organization, which costs $100. However, you must file the Articles of Incorporation if you form a Corporation for your Idaho property management company. The Articles of Incorporation filing fee costs $120 for filing in-person and by mail. 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 Idaho from the IRS if you will open a bank account or hire an employee for your Idaho property management company. 

The application of an EIN in Idaho 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 Idaho, you must obtain legal licenses and permits. Here are some common licenses and permits you may need:

  • Business License: Idaho requires businesses to obtain a Business License to operate legally. The business license fee in Idaho 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 Idaho Real Estate Commission or similar governing body for the requirements and application process.
  • Salesperson License (if applicable): If your Idaho 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 Idaho State Tax Commission 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 Idaho 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 Idaho’s laws.
  • Professional Liability Insurance: Idaho 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 Idaho 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 Idaho 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 Idaho 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 Idaho, 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 Idaho 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 Idaho:

  • Steady Income: Property management is a growing industry in Idaho, 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

Is property management licensed in Idaho?
Yes, property managers in Idaho need to be licensed.
What are the requirements for a property management license in Idaho?
One must first obtain a real estate agent or broker license and then complete additional property management coursework.
Can I own my property management company in Idaho without having a real estate license?
Yes, you can own the company, but you cannot act as a property manager without a real estate license.
How do I register my property management company in Idaho?
One must register their company name with the Idaho Secretary of State and obtain a tax ID number from the state.
What types of properties can I manage in Idaho?
You can manage all types of properties including single-family homes, multi-family units, and commercial buildings.
Do I need to obtain business insurance to operate a property management company in Idaho?
It is not legally required, but it can help protect your business from any potential liability claims.
How do I create a business plan for my property management company in Idaho?
Research the current market and determine your target demographic.
Can I self-manage my own properties in Idaho?
Yes, as long as you have a valid real estate license.
Can an out-of-state resident own a property management company in Idaho?
Yes, as long as they follow Idaho state laws and obtain a real estate license.
Do I need to have a physical office location to operate my property management company in Idaho?
It is not required by law, but having a professional-looking office can be beneficial.
Are there any specific landlord-tenant laws in Idaho that I should be aware of as a property manager?
Yes, there are certain laws that pertain to security deposits, notice periods for evictions, and habitability requirements.
How do I determine the right rent amount for my properties in Idaho?
Research comparable rental properties in the area and adjust rent based on property amenities, location, and other factors.
Are property management fees regulated in Idaho?
No, you can charge whatever fees you think are fair.
Can I hire property management staff while starting my own company in Idaho?
Yes, you can hire staff if needed.
How much do property managers earn in Idaho?
The median income for a property manager in Idaho is around $52,000 annually.
How do I market my property management company in Idaho?
Utilize online advertising, networking events, and referrals from established clients.
Can property managers also sell properties in Idaho?
Yes, property managers can have a real estate license that allows for property transactions.
Do I need an attorney to start a property management company in Idaho?
It is not required, but it may be helpful to have an attorney review any contracts or legal documents.
Can I get a property management license in Idaho with a past criminal history?
It is possible, but a felony record may make it difficult to obtain a license.
How can a property management company obtain financing in Idaho?
Consider traditional bank loans, grants, crowdfunding, or specialty financing programs.
Can I offer maintenance services as part of my property management services in Idaho?
Yes, however, you must have a valid contractor’s license to provide certain maintenance services.
How much property management experience do I need to start a company in Idaho?
It depends on the specific business plan and goals for your company.
What should I include in a property management service agreement in Idaho?
Review and address all required legal issues such as lease termination terms, length of agreements, and rent fee structure.
How often should I conduct property inspections in Idaho?
Regular property inspections should be conducted at least every six months.
Do property management companies need to submit financial documents to the state of Idaho?
No, although an Accrual Excel Report is expected to be submitted on a yearly basis.
Is there a minimum or maximum age requirement to become a licensed property manager in Idaho?
You must be at least 18 years old.
Are there specific zoning regulations for property management companies in Idaho?
Zoning laws differ depending on the state locality.
What technologies should I use for my property management company in Idaho?
A trusted property management software platform that suits specific needs in relation to technology, client preference, and management costs.
What are the tax requirements for a property management company in Idaho?
Property management companies are subject to business income taxes, additional sales tax collections, and potential penalties.
What are the licensing requirements for starting a property management company in Idaho?
A property management company in Idaho needs to have a license issued by the Idaho Real Estate Commission.
Do property managers in Idaho have to be licensed?
Yes, in Idaho, any person or company who manages property on behalf of someone else must hold a real estate license.
Is there a minimum age requirement to obtain a real estate license in Idaho?
Yes, in Idaho, a person must be at least 18 years old to obtain a real estate license.
What type of real estate license do property managers need in Idaho?
Property managers in Idaho need a broker’s license with a property management endorsement.
Are there any pre-licensing education requirements for property managers in Idaho?
Yes, in Idaho, property managers need to complete 90 hours of pre-licensing education.
Can someone with a felony conviction become a licensed property manager in Idaho?
It depends. A felony conviction does not automatically disqualify someone from obtaining a real estate license in Idaho. It will be evaluated on a case-by-case basis.
Are there any continuing education requirements for property managers in Idaho?
Yes, in Idaho, licensed property managers need to complete 12 hours of continuing education every two years.
Is Idaho a landlord-friendly state?
Yes, Idaho is viewed as being generally landlord-friendly.
What is the average property management fee in Idaho?
The average property management fee in Idaho is around 10% of the gross rental income.
How many rental units can a property manager in Idaho manage without requiring a real estate broker’s license?
In Idaho, a property manager can manage up to 12 rental units without requiring a real estate broker’s license.
Can property management fees in Idaho be negotiable?
Yes, property management fees in Idaho are negotiable, and it can depend on factors like the number of units, the type of property, and the services provided.
What is the most populous city in Idaho?
The most populous city in Idaho is Boise.
Are there any restrictions on collecting security deposits in Idaho?
Yes, in Idaho, landlords cannot require security deposits that are greater than one month’s rent without a written lease agreement or rental agreement that allows for it.
Can renters withhold rent for repairs in Idaho?
Yes, renters in Idaho can withhold rent for repairs, but only under very specific circumstances.
Are there any laws in Idaho that regulate rental application fees?
In Idaho, there are no laws that specifically regulate rental application fees, but the fee should generally be reasonable and reimbursable.
Is it legal to include non-refundable fees in rental deposit amounts in Idaho?
In Idaho, non-refundable fees cannot be included in the amount of the security deposit.
What is the notice period for ending a month-to-month rental agreement in Idaho?
In Idaho, either the landlord or the tenant must give written notice of termination of tenancy to the other party with at least 30 days’ notice.
What is the maximum security deposit that can be charged for a rental unit in Idaho?
The maximum security deposit in Idaho cannot be more than the amount of two months’ rent.
What needs to be disclosed to potential tenants in Idaho?
In Idaho, property managers and landlords must disclose certain information to potential tenants, including the condition of the property and any hazardous materials present.
can landlords in Idaho lease a dwelling for use as a section 8 or other subsidized housing program participant?
Yes, landlords in Idaho can lease a dwelling unit to a Section 8 or other subsidized housing program participant.
What is the difference between a real estate agent and a property manager?
A real estate agent helps buy or sell real estate, while a property manager is responsible for the day-to-day management of real estate properties.
Can a property manager also be a real estate agent in Idaho, or do they have to choose one or the other?
Yes, property managers in Idaho can also be licensed real estate agents.
Is it easy to find tenants for rental properties in Idaho?
Yes, demand for rental housing in Idaho has been growing lately, making it relatively easy to find reliable and long-term tenants.
Are there any laws in Idaho that protect tenants against retaliation by landlords?
Yes, in Idaho, tenants are protected against retaliation by landlords if they complaint about problems with the property or report code violations.
What is the best way to screen potential tenants in Idaho?
To screen tenants in Idaho, you should use a tenant screening service or agency. Make sure you comply with Fair Housing laws.
Is it legal to charge a late fee for overdue rent in Idaho?
Yes, in Idaho, it is legal to charge a late fee for overdue rent. The first late fee may not exceed four percent of the overdue rent, or $25, whichever is greater.
What should be included in a lease agreement in Idaho?
In Idaho, a lease agreement should include information about the rent amount, the length of the lease, the security deposit, and who will be responsible for repairs and maintenance.
How can a property manager in Idaho deal with difficult tenants?
Property managers in Idaho need to follow the law and attempt to resolve any issues peacefully. In more extreme cases, landlords may need to go through the eviction process.
Do property managers in Idaho need to have errors and omissions insurance?
While it’s not required in Idaho, property managers, and landlords are encouraged to have errors and omissions insurance, which can help protect against lawsuits and claims of negligence.

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Conclusion

Starting a property management company in Idaho 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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