How Much Does It Cost to Start a Property Management Company in Montana?

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Starting a Property Management Company in Montana typically costs between $11,130 and $58,300, with a median estimate of $25,440. Montana’s cost of living runs 6% above the national average, which increases commercial rent and labor costs. LLC formation in Montana costs $70 to file. Most property management company businesses take 2-4 months to launch.

Last updated: March 2026

Property Management Company startup costs illustration — typical equipment and setup

How Much Does It Cost to Start a Property Management Company in Montana?

Low

$11,130

Medium

$25,440

High

$58,300

National average: $10,500 – $55,000

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Startup Cost Calculator

Property Management Company in Montana

Budget:

Real Estate Broker License

$2,650

Property Management Software

$1,590

General Liability & E&O Insurance

$2,120

Business Formation

$424

Trust Account Setup

$318

Marketing & Client Acquisition

$2,120

Office Setup

$2,120

Working Capital

$12,720

Options

Include 3 months working capital

Employees:Just Me1–34–10

One-Time Costs

$24,062

Monthly Costs

First Year Total

$24,062

Full Cost Breakdown

Cost Category	Low	Medium	High	Notes
Real Estate Broker License	$1,060	$2,650	$5,300	Most states require a broker or property manager license; 25 states require broker license specifically.
Property Management Software	$530	$1,590	$4,240	Per-unit pricing: Buildium at $2–$3/unit/month for under 150 units.
General Liability & E&O Insurance	$848	$2,120	$5,300	Annual cost; critical protection for habitability and discrimination claims.
Business Formation	$159	$424	$1,060	Separate LLC for management company vs. personally owned properties.
Trust Account Setup	$106	$318	$848	Strict state regulations govern property management trust accounts — commingling is illegal.
Working Capital	$5,300	$12,720	$31,800	At $100/unit/month management fee, you need 30+ units for sustainable income.
Marketing & Client Acquisition (optional)	$530	$2,120	$6,360	Real estate agent referrals are the highest-value client acquisition channel.
Office Setup (optional)	$530	$2,120	$6,360	Most property managers operate home-based initially.
Total Startup Cost	$8,003	$19,822	$48,548	Required costs only

Licenses & Permits in Montana

General Business License

Montana does not have a statewide general business license. Businesses must register their entity with the Montana Secretary of State and register with the Montana Department of Revenue for withholding taxes. Montana has no sales tax, which simplifies business registration. Some Montana cities and counties require local business licenses. The state's outdoor economy and tourism industry influence many licensing requirements.

Industry-Specific Licenses

Food and Drug Establishment License — Montana Department of Public Health and Human Services — Food and Consumer Safety
Cost: $50-$400 • Renewal: Annual
Contractor Registration — Montana Department of Labor and Industry — Employment Relations Division
Cost: $70-$250 • Renewal: Annual
Cosmetology Salon License — Montana Board of Barbers and Cosmetologists
Cost: $50-$150 • Renewal: Annual
Real Estate Broker License — Montana Board of Realty Regulation
Cost: $100-$300 • Renewal: Annual
Outfitter License — Montana Board of Outfitters
Cost: $200-$800 • Renewal: Annual
Child Care Facility License — Montana Department of Public Health and Human Services — Child Care Licensing
Cost: $50-$200 • Renewal: Annual
Beer or Liquor License — Montana Department of Revenue — Liquor Control Division
Cost: $400-$10,000 • Renewal: Annual
Pesticide Dealer License — Montana Department of Agriculture
Cost: $50-$150 • Renewal: Annual

Home-Based Business Rules

Home-based businesses in Montana face minimal regulation in rural and unincorporated areas, which make up most of the state's land area. Bozeman, Missoula, Billings, and Great Falls regulate home occupations through local zoning ordinances with standard restrictions on signage and customer traffic. Montana's cottage food law supports home-based food production. Remote home-based businesses are common in Montana's scattered rural communities.

Resources

Monthly Operating Costs

After launch, plan for these ongoing monthly expenses for your Property Management Company:

Low

$1,500/mo

Medium

$4,000/mo

High

$10,000/mo

Revenue Potential

Annual Revenue Range

$40,000 – $500,000 (annual)

Profit Margins

20-40%

Break-Even Timeline

6-18 months

How Montana Compares to Neighboring States

Montana is a higher-cost state for starting a Property Management Company, with a cost-of-living index of 105.6 (national average is 100). Compared to neighboring North Dakota ($23,760 median startup cost), Montana has higher costs for a Property Management Company.

State	Est. Cost	LLC Fee
Montana (current)	$25,440	$70
North Dakota	$23,760	$135
South Dakota	$23,280	$150
Wyoming	$24,000	$100
Idaho	$24,720	$100

Common Mistakes to Avoid

1
Commingling client funds with business accounts
2
No written management agreements
3
Inadequate owner communication leading to contract terminations
4
Undercharging vs. market rates (industry standard is 8–12% of monthly rent)
5
Taking on too many units before building reliable maintenance vendor network

Next Steps to Launch Your Property Management Company

1
Form your LLC in Montana — property managers handle client funds and face tenant claims; LLC protection is essential (filing fee: $70)
2
Obtain your Montana property manager license or real estate broker license — required in most states before managing third-party properties
3
Open a separate trust/escrow account for tenant security deposits — Montana law dictates how tenant funds must be held
4
Get general liability and professional liability insurance — $1,500–$4,000/year; landlords require proof before signing management agreements
5
Set up property management software — AppFolio, Buildium, or Rent Manager for rent collection, maintenance, and accounting
6
Create your property management agreement template covering management fee (8-12%), lease-up fees, and maintenance authorization limits
7
Build a vendor network of licensed plumbers, electricians, and HVAC technicians for maintenance dispatching
8
Register with your Montana real estate commission and maintain your license in good standing with required continuing education

Frequently Asked Questions

Starting a property management company typically costs $15,000–$35,000, including real estate licensing ($1,000–$2,500), property management software ($500–$1,500/year), liability and E&O insurance ($800–$2,000/year), and working capital while building your portfolio.

At 10% management fees, a property managing $1,500/month rents earns $150/unit/month. You need 30–50 units for a sustainable solo business ($4,500–$7,500/month) and 100+ units to support a small team. Growth comes from property investor referrals and real estate agent partnerships.

Requirements vary by state — 25+ states require a real estate broker license to manage properties for others for compensation. Some states (CO, WI, ID) allow a separate property manager license. A few states (KS, VT, MS) have no licensing requirement. Check your state's real estate commission.

Standard fees include monthly management (8–12% of collected rent), leasing fee (50–100% of first month's rent), lease renewal fee ($100–$300), maintenance coordination (10% markup on invoices), and late payment fees. A 100-unit portfolio at 10% on $1,200 average rent generates $12,000/month gross.

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Start a Property Management Company in Other States

See the national overview for Property Management Company or browse all businesses you can start in Montana.