What are Unlicensed property manager restrictions?

6 Replies

I have a question for my fellow biggerpocketers 

Being the great entrepreneur I am (jk), I am looking to start a property management company. Ive had some pretty dumb ideas in the past that didn't work out,  and im wondering if this is one of them (considering I don't have a salesperson or brokers license).

I reside in an area where summer homes are popular. Airbnb is also everywhere. I would like to offer my services to manage these homes, whether it is just property maintenance, winterizing, common repairs, cleaning, etc.

But am I capable of drafting up leases and finding renters for the Airbnb customers? Would I be legal if It were signed by the owner of the property?

@Brian Ellis Property managers in Mass are required by the state to be licensed.  You don't want to start off a new venture having to dodge the law.  One complaint and things will get ugly.

Or you could come to Maine where property managers, home inspectors and general contractors are all not required to be licensed.

Originally posted by @Charlie MacPherson :

@Brian Ellis Property managers in Mass are required by the state to be licensed.  You don't want to start off a new venture having to dodge the law.  One complaint and things will get ugly.

Or you could come to Maine where property managers, home inspectors and general contractors are all not required to be licensed.

Thanks for the response, Charlie.


My question is: what exactly is illegal in terms of being unlicensed? Would it just be real estate transactions? Am I able to show the property, screen the tenant and manage it while having the owner do the lease signing?

@Brian Ellis typically, if a state requires a license, it applies to everything you've mentioned.

To sum it up - anything you do regarding properties that YOU DO NOT OWN, you need a license to do it.

@Brian Ellis you mentioned: property maintenance, winterizing, common repairs, cleaning, etc.

You might talk to the local PM company and offer these maintenance services and become a vendor. Great way to get a foot in the door. You can also talk to them about becoming a PM assistant or office admin. Work on your license at the same time and eventually work up to getting your BIC and firm license.

Originally posted by @Drew Sygit :

@Brian Ellis typically, if a state requires a license, it applies to everything you've mentioned.

To sum it up - anything you do regarding properties that YOU DO NOT OWN, you need a license to do it.

 Through all the research ive done, simply managing someone elses property isn't illegal. Im trying to find out where the fine line is. I just cant handle peoples money is the impression I am getting?

@Chris London thank you, that isn't a bad idea.

@Charlie MacPherson @Drew Sygit

I found the following:

In Massachusetts, a broker's license is not required for: Employees of real estate owners if the employees are performing the acts of a real estate broker or salesman for the subject property and if these acts are performed in the regular course of, or incident to, the management of the property. Any management agent (or regular employees of the agent acting on the agent's behalf in the regular course of business) while acting under a contact with a real estate owner. Massachusetts does not have other licensing requirements for property managers. (Mass. Gen. Laws ch. 112, § 87QQ.)