Business plan
Take your time and formulate a strategic and thorough business plan.
A real estate consultant with rental property experience if often a good source in developing your business plan. A well-written business plan will include detailed financial, sales & marketing and management plans. Be thoughtful and thorough. Make sure to factor legal fees into the regular expenses, as property rental disputes often find their way into litigation. The better your business plan, the easier it will be to implement and the more likely your business will succeed.
Consult with professionals
Real estate professionals including brokers, consultants and investors, real estate attorneys, accountants and other applicable service providers can help guide you. If you are not familiar with the rental property business, seek out others who are. If you know the business, but have not started a company before, seek out the counsel of an accountant and real estate attorney with small business experience.
The process of forming a company can be confusing and an attorney and accountant will help you decide the best legal and tax-based approaches to take. It is also important to learn about the legal trials of renting property. Know the the state laws regarding late rent, repairs, deposits, evictions and overall landlord-tenant law. Also, know the legal framing of the business before you open the doors.
Legal Formation
Choose a business entity and file a creation document with the Secretary of State. Though options and requirements may differ by state, generally you will have the choice to form your business as either a sole proprietorship, corporation, non-profit, partnership or limited liability company. Take the information you received from your research, choose the business entity form and register with the applicable Secretary of State's office.
Apply for EIN
Contact the Internal Revenue Service and apply for Federal Employer Identification Number (FEIN). All businesses much register with the IRS for federal tax purposes. To obtain your tax ID number, visit: irs.gov.
State and Local Permits
Obtain any required city, county and state licenses and permits. Though not every city or county will require local licenses and permits, check with the offices of the County Commissioner and City Clerk to identify their requirements.
Real Estate Professionals
Choose a real estate brokerage with real estate professionals with experience buying, selling, leasing and investing in the type of real estate you are interested in.
For a free consultation about investing in real estate in today's market contact Own Realty Group by completing our contact form online or call (281) 891-3007
