Starting a Property Management Company without License

[Alex S.]

I am interested in starting a property management company. I have extensive experience owning and operating a property investment company and would like to scale my business by helping others. I do not have a license in real estate. I do however have a strong relationship with a couple real estate brokers.

Would it be possible for me contract out the leasing portion of the business through one of my real estate broker's? I am thinking I could give them the 1st month rent fee to handle this component of things. Thoughts?

[Brian P.]

Alex

Everyone is giving you answers that are based on you being an agent for the landlord. A more profitable way is for you to master lease the property for say a monthly amount of $100 and then you basically sublease the property for $120, no license required because you are acting as a principle not an agent, just like wholesaling. All the states I have looked into allowed this even though the local agents screamed it was illegal but they were wrong. Unlike a licensed property management company You absorb the vacancies and some items, not the owner.