Property Management in Kentucky without broker license

Property Management in Kentucky without broker license

Investor · Louisville, KY · Member since 2013 · 36 posts · 8 votes

Hello, I own and self manage 128 units.  I have owned and managed property for 3 years.  Other owners have asked me to manage property here in Louisville KY.  I am not a real estate agent or broker.  

How can I legally manage others property?

Thanks BP

Jimmy

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Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
9y

@James Wright  KRS 324 forbids Property Management for compensation by unlicensed people unless you meet one of the exceptions detailed in KRS 324.030.  (In my very non-legal opinion, you won't meet them).  

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  • Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    9y

    Hi @James Wright

    I can't speak for Kentucky, but in PA unless you are an agent you can't manage for a fee. You could become an employee of someone and work on only their properties, but I'm pretty sure you couldn't be the employee of a ton of different people :)

    You could simply get the license and work under a broker and manage. Were you trying to do this as a favor for someone or as a revenue center for yourself?

  • Investor · Louisville, KY · Member since 2013 · 36 posts · 8 votes
    9y

    I was trying to do this as a revenue center. Thanks for your input. 

  • Investor · Louisville, KY · Member since 2011 · 331 posts · 278 votes
    9y

    @James Wright  KRS 324 forbids Property Management for compensation by unlicensed people unless you meet one of the exceptions detailed in KRS 324.030.  (In my very non-legal opinion, you won't meet them).  

  • Investor · Louisville, KY · Member since 2013 · 36 posts · 8 votes
    9y

    Thanks Erik, Looks like I need to get a real estate license and find a broker

    "A nonlicensed person under the supervision of a licensed real estate broker who contacts the public for the purpose of setting an appointment for the broker to meet with them regarding buying or selling property and giving out general public information specifically authorized by the broker."

  • Investor · Louisville, KY · Member since 2010 · 55 posts · 42 votes
    9y

    The only work-a-round that I recall is you must have an ownership interest in the properties you manage (eg: 1% ownership of an LLC may work?) I'm a single entity LLC and I'm permitted to manage my own properties. Not likely someone needing management would do that, but for the sake of being thorough, just thought I would mention it.

  • Rental Property Investor · Oconomowoc, WI · Member since 2016 · 996 posts · 431 votes
    9y

    I don't know about KY but in some states the broker requirement can be worked around as long as you aren't accepting payments made out to your company and are not pooling multiple owners together financially.

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