All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books
ForumsArrowTax, Legal Issues, Contracts, Self-Directed IRAArrowProperty management agreement
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Property management agreement

2 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 148
  • Votes 46

Jake Kain
Realtor from Phoenix, AZ

posted over 3 years ago

Hey BP! Hoping that I am posting in the correct forum.

My grandmother has moved into an assisted care facility, giving power of attorney/attorney in fact to my parents. Her house is completely paid off and my parents are wanting to rent it out to help cover the cost of her assisted living facility charges. My parents do not have experience with renting out property to tenants so I offered to help walk them through the process. They have been super busy and I have been doing most of the legwork thus far. Am I able to just step in as the property manager for them? It is my understanding, in Arizona you do not need to have a RE license if you are only managing one property and are not receiving compensation from managing that property. I am doing this completely for free, just to help them out and make sure they get a good tenant and everything works out smoothly and my grandmother's expenses are covered. 

I know that in order to run background checks on rentprep, you have to provide documentation for either owning the property, power of attorney or a property management agreement. I just want to make sure I am not doing anything illegal if we create a contract between us, stating that I am the property manager and we can even spell out that I will not be receiving compensation for management.

Any input would be appreciated and if someone has a property management agreement they would be willing to share with me would be awesome.

Thanks!!

Rotate Log in or sign up to reply
user profile avatar
  • Posts 74
  • Votes 29

Eric Worral
Investor from Buffalo, New York

replied over 3 years ago

Jake,

I work for RentPrep and hopefully I can help clarify.

As far as documentation proving ownership of the rental, that is only necessary if you plan to add a credit check onto your Basic, Pro, or Platinum report.

If you want to know the credit score but don’t want to deal with verifying ownership I’d recommend either not adding a credit check or using our SmartMove product.

SmartMove is tenant driven in that you’d create an account with us and then provide the tenant’s email and the tenant applicant would take it from there including paying for the report.

As far as being a “property manager” you’re right about looking into your state laws because it varies from state to state with regulations as far as managing other people’s property. One suggestion is to try a service like avvo where you can buy a 15 minute consultation with a local attorney to address some of these types of questions. Doing it this way would be more cost efficient and you can have peace of mind that you’re setup the right way.

Hope that helps.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Single Family and Residential
  • Posts 467
  • Votes 299

Doug McVinua
Property Manager from Gilbert, AZ

replied over 3 years ago

@Jake Kain The exemption is very clear in Arizona when a person is managing their own properties, however managing a property for others generally requires a license. The penalty for crossing the line can be a felony and as such, I would suggest you contact an AZ attorney that deals with real estate law to be clear that what you desire is actually legal.

The Department of Real Estate has frequently directed unlicensed property management to the Attorney General for cease and desist action as well as other actions, none of which you want to be a part of.

You can do all of the property work at Grandmas house, prepare it carefully so that she can achieve maximum rent etc. with no issue.

We offer lease up as well as management and sometimes that is a more affordable path that gets everyone started on the proper path with all correct forms, leases etc.

Rotate Log in or sign up to reply
  • 1
Related Resources Tax, Legal Issues, Contracts, Self-Directed IRA
21 Real Estate Professionals You Need on Your Team (Updated 2021)
Do You Need a Real Estate Partner?
Selling Your LLC? Make Sure You Transfer Your Ownership Interest Correctly
How to Protect Your Property With Landlord Insurance
Customer Relationship Management: The Holy Grail of Business Success
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Ashish Acharya
Ashish Acharya
Atlanta, GA
9.52
Score
Michael Plaks
Michael Plaks
Houston, TX
5.36
Score
Dmitriy Fomichenko
Dmitriy Fomichenko
Anaheim Hills, CA
3.4
Score
Veronica Ivy
Veronica Ivy
Charlotte, NC
1.93
Score
Jay Hinrichs
Jay Hinrichs
Lake Oswego OR Summerlin, NV
1.62
Score

Tax, Legal Issues, Contracts, Self-Directed IRA Trending Discussions

  • "We charged a penalty on your Partnership tax return"
    7 Replies
  • New Jersey Inheritance tax
    4 Replies
  • Real Estate Professional Tax Status - Help!
    15 Replies
  • Do I need a CPA / How best to get set up for Accounting
    3 Replies
  • Need a Real Estate focused CPA, unfortunate situation
    2 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.