How to start a property management company

Property management is associated with the need to make difficult decisions and activities aimed at ensuring the proper economic and financial management of the building. Therefore, very often property owners decide to cooperate with a professional property management company. Do you want to run your own business and wonder how to start a property management company? We answer in the article.

General characteristics of a property management company

The tasks of the administrator include, among others, determining and collecting rent from residents, providing security to property users and ensuring the proper operation of the managed building. The above is related to the development of investment plans in the area of ​​necessary expenses and maintaining the property in a non-deteriorated condition.

The manager is also responsible for the day-to-day administration of the property, e.g. choosing the right heat energy supplier, waste disposal, sewage disposal and maintenance of green areas.

Accurate regulations regarding the scope of duties and the rights of the administrator to act on behalf and for the benefit of the property owner should result from the contract concluded between the parties. This agreement must be made in writing, otherwise null and void.

Preliminary requirements for running a property management company

Due to the deregulation of professions, since 2013, property management no longer requires obtaining additional licenses. There is also no need to have specialized education. Therefore, property management can be dealt with by anyone who has sufficient knowledge or experience in a given subject. The selection of managers is based on general principles and results from market conditions and the freedom to conclude contracts and provide services. However, the property manager must insure himself against civil liability for damages that may arise as a result of improper performance of the duties entrusted to him.

Acceptable forms of running a property management company

Running a real estate management company is possible in any form, except for a partner company. The enterprise can therefore prosper as a sole proprietorship, partnership, general partnership, limited partnership, limited joint-stock partnership, limited liability company. or in the form of a joint stock company.

How to start a property management company

If the entrepreneur decides to run a real estate management company in the form of a sole proprietorship or a civil partnership, he must register it with CEIDG, while in the case of choosing one of the other forms of activity, the company must be registered in the National Court Register.

As a rule, a person running a business who intends to sell goods or services subject to VAT, must submit a VAT-R form no later than on the day preceding the commencement of the sale. The form is used to register the entrepreneur as an active or exempt taxpayer of value added tax. The completed form should be delivered to the tax office competent for the place of business.

Determination of PKD for a property management company

The basic PKD for a property management company is 68.32.Z Property management performed on request. This class does not include:

• building maintenance activities, including interior cleaning, maintenance and minor repairs, garbage removal, security services, see 81.10

The best form of taxation for a property management company

When running a property management company, the taxpayer can choose:

• lump sum on registered revenues,

• taxable on general principles,

• flat tax at the rate of 19%.

The general rules allow you to pay 18% or 32% of the tax (after exceeding the first threshold of the scale - PLN 85,528 of income). In the case of taxation according to general rules, the taxpayer may additionally reduce the tax amount by appropriate allowances or deductions and paid insurance premiums.

An entrepreneur, taxed with a flat tax, pays 19% of the tax regardless of the amount of income. However, a linear taxpayer is not able to take advantage of most tax reliefs or joint settlement with a spouse.

As for the lump sum - its rate for the provision of real estate management services on commission is 17%. An entrepreneur choosing a registered lump sum automatically loses the right to settle accounts jointly with his spouse or in the manner provided for single parents. He is also not entitled to pro-family relief. Lump-sum taxation, however, does not deprive the entrepreneur of the right to apply other reliefs. The entrepreneur may reduce the tax amounts by social security contributions and health insurance contributions.

A property management company with or without VAT

Property management involves the taxation of transactions with VAT. The entrepreneur may, however, take advantage of the subjective exemption from VAT provided that in the tax year it does not exceed PLN 150,000 of the turnover limit.

Attention! In the first year of operation, the exemption limit of PLN 150,000 is calculated in proportion to the period in which the activity was conducted.

 

Being a non-visitor pays off especially when:

• the offer is addressed to private persons who cannot deduct VAT on purchases or entities exempt from VAT,

• the subject of activity are products or services that do not require large financial outlays.

ZUS contributions of a property management company

If the real estate management company will be run in the form of a sole proprietorship, a sole proprietorship limited liability company. or a civil law partnership, general partnership or limited partnership, the entrepreneur is obliged to register himself with the Social Insurance Institution (ZUS) for insurance. Each partner from the above-mentioned companies is a premium payer for his own insurance. Calculated for themselves, as a person conducting non-agricultural activity, the contributions for individual types of insurance should be accounted for by entrepreneurs in the settlement declaration (ZUS DRA form).

Attention! Persons starting a sole proprietorship on the basis of the Act on the social insurance system may take advantage of the so-called preferential ZUS rates for a period of 24 months. Thanks to the reduced rates of ZUS, new entrepreneurs will pay less for social insurance. In addition, people benefiting from preferential ZUS rates are not obliged to pay the Labor Fund.

 

On the other hand, real estate management in the form of a multi-person limited liability company, limited joint-stock or joint-stock company does not constitute a title to any insurance at ZUS. These companies, by themselves, are not subject to social and health insurance. However, they are contribution payers in the case of employing employees.

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Business account for a property management company

Setting up a business does not always mean having a company account, but it is necessary when providing services to companies or when the value of a one-off transaction exceeds PLN 15,000. The conditions that must be met to open a business account are imposed by the bank. There are no additional regulations here. Usually, you should go to the bank with:

• a certificate (or a photocopy and original available for inspection) on the entry in CEIDG,

• ID card,

• company stamp,

• specimen signatures of persons having the account are also required.

Commercial law companies (general partnership, partnership) should additionally submit:

• deed of establishing the company,

• certificate of assigning the REGON number and the current excerpt from the National Court Register.

Before choosing a business account, it is worth paying attention to the amount of fees related to maintaining the account and whether the transfers are paid. When making a large number of transfers, each fee may turn out to be an unnecessary expense.

What housing conditions for a property management company

All necessary resources and equipment needed for effective property management may be stored in utility premises belonging to the community, the property owner or owned by the administrator. However, running a property management company requires additional office space. Social and living conditions should comply with general sanitary regulations, fire protection. and construction law.

Marketing of a property management company

An effective marketing strategy is the key to the success of your business. When running a property management company, it is worth promoting yourself via the Internet at the beginning. As a rule, creating a website does not require large financial outlays, and will allow potential customers to get acquainted with the company's offer. With time of the company's development, it is worth expanding the website, e.g. by posting photos of buildings that the company already deals with. Concrete examples will surely increase the trust of future customers.

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