Start a Property Management Company in Nevada | 2024 Guide

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

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

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

What is a Property Management Company?

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

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How to Start a Property Management Company in Nevada

Starting a property management company in Nevada can be a lucrative and rewarding business venture especially if you are in Carson City. 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 Nevada.

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

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

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

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

However, before filing a DBA, you should know that you need to renew your DBA every five years, which costs varies by county.

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 Nevada, every business entity, such as an LLC or a corporation, must have a Registered Agent with a physical address within Nevada. 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 Nevada, the cost of having a Registered Agent ranges from $50 – $300. 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 Nevada Registered Agent Services.

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File For Articles of Organization or Articles of Incorporation

If you form an LLC for your Nevada property management company, you must file the Nevada Articles of Organization, which costs $75. However, you must file the Articles of Incorporation if you form a Corporation for your Nevada property management company. The Articles of Incorporation filing fee costs $75 for filing online, fax, 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 Nevada from the IRS if you will open a bank account or hire an employee for your Nevada property management company. 

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

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

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

Do I need a special license to start a property management company in Nevada?
Yes, you need to have a Nevada Real Estate Broker’s License.
What is the process to obtain a Nevada Real Estate Broker’s License for a property management company?
You need to complete pre-licensing education, pass the state and national exams, submit an application and pay the corresponding fees.
Do I need to incorporate my property management company in Nevada?
No, you don’t need to incorporate your property management company in Nevada, but it may have certain advantages for tax purposes and liability protection.
What are the advantages of incorporating my property management company in Nevada?
Nevada has a favorable business tax environment, asset protection laws, and privacy laws for business owners.
Should I obtain a business license for my property management company in Nevada?
Yes, you need to obtain a business license for your property management company in Nevada to be in compliance with local regulations.
Does the state of Nevada require property management companies to have insurance?
Yes, property management companies in Nevada are required to have general liability insurance.
Do I need to have errors and omissions (E&O) insurance for my property management company in Nevada?
No, E&O insurance is not mandatory in Nevada for property management companies, but it may provide additional protection and credibility for your business.
What is the difference between a property manager and a real estate agent in Nevada?
A property manager is responsible for overseeing the leasing, maintenance, and financial aspects of rental properties, while a real estate agent helps clients buy or sell properties.
Do property managers in Nevada need to have a background check?
Yes, property managers in Nevada must undergo a criminal background check as part of the licensing process.
Do property managers in Nevada need to have a property management agreement with their clients?
Yes, property managers in Nevada must have a signed property management agreement with their clients that outlines the terms of their professional relationship.
Are there any limitations on the fees that property managers can charge in Nevada?
No, property managers in Nevada are free to negotiate their fees with their clients as long as they are fair and reasonable.
Can non-residents own a property management company in Nevada?
Yes, non-residents can own a property management company in Nevada, as long as they have a Nevada Real Estate Broker’s License.
Is it possible to own a property management company and a real estate agency at the same time in Nevada?
Yes, it is possible to own both a property management company and a real estate agency in Nevada, as long as you have the corresponding licenses.
Are there any specific advertising regulations for property management companies in Nevada?
Yes, property management companies in Nevada must comply with the state’s advertising rules, which require transparency and accuracy in their ads.
Can property management companies in Nevada engage in tenant screening and selection?
Yes, property management companies in Nevada can perform tenant screening and selection, as long as they comply with fair housing laws and don’t discriminate against protected classes.
Are property management companies in Nevada required to maintain tenant security deposits in a separate escrow account?
Yes, property management companies in Nevada must maintain tenant security deposits in a separate escrow account.
Can property management companies in Nevada evict tenants on behalf of their clients?
Yes, property management companies in Nevada can assist their clients with the eviction process, as long as they comply with state and local laws.
Are there any specific training or education requirements for property managers in Nevada?
Nevada doesn’t have specific training or education requirements for property managers, but having relevant training or certification can enhance one’s professional capabilities and reputation.
Can property managers in Nevada enter a unit without a tenant’s permission?
Property managers in Nevada can enter a unit without a tenant’s permission for specific reasons, such as conducting repairs, showing the unit to prospective tenants, or in emergencies.
Can property management companies dictate which vendors to use for maintenance services in Nevada?
Property management companies in Nevada can recommend vendors to their clients for maintenance services, but ultimately it’s the client’s choice to hire or not to hire a specific vendor.
Can property management companies in Nevada negotiate rental rates on behalf of their clients?
Yes, property management companies in Nevada can negotiate rental rates on behalf of their clients, as long as it’s within the legal and ethical boundaries.
Can property management companies in Nevada hold onto a tenant’s personal property as collateral?
No, property management companies in Nevada cannot hold onto a tenant’s personal property as collateral, as it’s against the law.
Can a tenant sue a property management company for discrimination in Nevada?
Yes, a tenant can sue a property management company in Nevada for discrimination under state and federal fair housing laws.
Can property management companies in Nevada require tenants to have renters insurance?
Yes, property management companies in Nevada can require tenants to have renters insurance as a condition of their lease, but it’s not mandatory under state law.
Are there any income tax obligations for property management companies in Nevada?
Yes, property management companies in Nevada must pay state and federal income taxes on their business earnings.
Can a property management company turn late rent payments over to a collections agency in Nevada?
Yes, property management companies in Nevada can turn late rent payments over to a collections agency, but they must comply with applicable laws and regulations.
Are there any legal prohibitions against renting properties to undocumented immigrants in Nevada?
No, there are no specific legal prohibitions against renting properties to undocumented immigrants in Nevada, but federal immigration laws may be relevant in certain situations.
Can a property management company be held liable for personal injuries that occur on rental properties in Nevada?
Yes, property management companies in Nevada can be held liable for personal injuries that occur on rental properties if they can be proven to have been negligent.
Are there any maintenance or safety standards that property management companies in Nevada must follow for rental properties?
Answer? Yes, property management companies in Nevada must follow certain maintenance and safety standards for rental properties to meet the state’s habitability requirements.
What legal formation options does Nevada offer for property management companies?
Nevada offers limited liability companies (LLCs) as the main option for a property management company.
Am I required to have a property management license in Nevada?
Yes, a property management company must have a brokerage license or at least one broker owner with a property management permit in Nevada.
How do I obtain a property management permit in Nevada?
You need to complete the Nevada Real Estate Division’s pre-licensing course for property management, pass the exam, and file the application with the required documents.
What liabilities could arise for property management companies in Nevada?
Property management companies in Nevada could be liable for negligence, breach of contract, or discrimination lawsuits.
What insurance should I get when starting a property management company in Nevada?
At least, you’ll need General Liability, Errors and Omissions, and Workers’ Compensation insurance coverage.
How do I separate my personal and business finances for my Nevada property management company?
Creating a separate bank account and legal entity (like an LLC) are great ways to segregate your personal and business finances.
Can I have an out-of-state property management LLC that operates in Nevada?
Yes, but you’ll need to be registered as an out-of-state LLC with the Nevada Secretary of State.
Is it necessary to have a physical office for my Nevada property management company?
You can either have a physical office or utilize a registered agent’s office for your Nevada property management company.
Is it expensive to maintain a property management company in Nevada?
It varies, but the initial formation costs could range from $400 to $800 and depend mostly on the lawyer’s fees if you choose to hire one.
How could I promote my Nevada property management company?
Being online, maintaining a blog, and being involved in the real estate community are great ways to market yourself and build your reputation.
Can I personally manage my own properties in Nevada?
As long as you hold the applicable license and you disclose your interest in the property, the Nevada Real Estate Division allows brokers to engage in the management of their own property.
What’s the deadline for paying state and federal taxes for my Nevada property management company?
April 15th is the deadline, unless you filed for an extension.
Are there any restrictions on the number of properties that I can manage in Nevada?
Depending on the brokerage’s size, a property manager could manage multiple properties through multiple tenants, lease agreements, and evictions if required.
Which forms do I need when starting a property management company in Nevada?
You need to file Articles of Organization for an LLC and the permit application from the Nevada Real Estate Division.
How do I vet tenants for the properties I manage in Nevada?
You need to keep yourself aware of fair housing laws when screening for your tenants’ history.
Can I advertise rental listings for my Nevada property management company on social media?
Yes, you can advertise rental listings on social media as long as they’re within fair housing guidelines.
Can I use my personal insurance policy for my Nevada property management company?
You cannot utilize your personal insurance policy for your Nevada property management company to guard yourself against liabilities
How often should I communicate with property owners in Nevada?
Regular communication is essential when holding rental property owners to maintain a healthy relationship.
How do I outsource duties for my Nevada property management company?
An alternative is using contractors, virtual assistants, freelancers, and sometimes administration-based companies promising tenants from a qualified tenant list.
How long does it take to start a property management company in Nevada?
This typically depends on multiple factors, but it can range from weeks unto months to create a property management company from start to finish.
Besides permits is there anything else I need from the Nevada REC to start my property management business?
You need to choose a responsible Nevada licensee for supervision who assists you in depositing trust funds and managing other important activities.
What’s needed under Nevada law, to legally evict tenants from properties I manage?
Three-day official eviction notice granted by the sheriff from the court, citing reasons for eviction like non-payment or holdover tenancy violation.
Does a “responsible broker” need to manage the operations of the Nevada property management company?
Yes, a consumer service or neighborhood organization’s fiduciary authority surrounding the oversight concerning the scrutiny of any potential legal violations such as open regulation claims.
Is a “real estate broker” license different from a “property management broker” license in Nevada?
“Real estate broker” and “property management broker” need different licensing requirements under NRS.
How many brokers do I need to serve on my Nevada property management company executive board?
According to the regulatory licenses for brokers and various county legal restrictions, probably one licensed broker.
Can my Utah-based property management company render services in Nevada under a reciprocal agreement?
No, Upwards of 40 provider states consent to license sharing arrangements with management firms just Nevada is not among them.
How do I develop rental agreements for my Nevada property management firm?
Several purchasing options are available for access to proficiency agreements, such as building a daily rental agreement.
For revenue projections, what’s the typical management fee percentage in Nevada?
Typically, new property management companies charge between 6% and 10% of gross rent collections as per the stipulated market in Nevada.
Is there annual state reporting for Nevada property management businesses?
Nevada does not proactively enforce periodic reports mandatory to property management LLCs far beyond Articles of Organization if you opt to elect protection separately.

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Conclusion

Starting a property management company in Nevada 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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