Real Estate brokerage, should I seperate PM in seperate entity?

Real Estate brokerage, should I seperate PM in seperate entity?

Property Manager · Indianapolis, IN · Member since 2018 · 136 posts · 71 votes

In theory if you were creating your own real estate company that would handle residential, commercial, Property Management, lease-up services and due diligence services for clients, would you seperate the different services from each other or off all services to be over insured to cover risk/liability?

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  • Real Estate Agent · Westlake, OH · Member since 2016 · 121 posts · 31 votes
    7y

    Hi @Brandon Wells,

    Great question.  First, I would check the state laws regarding property management.  In Ohio, you cannot manage property for others for a fee without a broker's license or working under a broker as an agent.  Ohio also has stipulations about how you can name your companies.  They basically want the names to be fairly similar.  

    As far as risk and liability, check with your insurance company.  Personally, it's not a bad idea to separate the entities to mitigate risk.

    Sorry I can't provide more details.  Keep us posted on what you end up doing.

    Cheers!

  • Brad LarsenPro Member
    Property Manager · San Antonio and Austin, TX · Member since 2016 · 377 posts · 380 votes
    7y

    For branding purposes, put it all under one name.  Insurance is very "blanket" so work out the details with your insurance agent.  On the pitfall side - if you create brand ONE......do 1,2,3.....people will not know you do 4,5,6 because it's in brand TWO.  See my point?  Good luck and be sure to join NARPM as a Property Manager. 

  • Property Manager · Indianapolis, IN · Member since 2018 · 136 posts · 71 votes
    7y

    @Brad Larsen Thank you for your feedback. I will look into NARPM, but as far as credentials go, I am already a CPM® through IREM. Not sure of the difference between organizations, but definitely worth looking into.

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