Should property managers be required to have a license?
First I just want to say that I am new to Bigger Pockets and I am meeting new people and learning even after 30 years in real estate. Thanks to all. I think this is a great site. Now on to my post.
I am reading posts where a current landlord is helping his neighbor or friend manage his or her rental unit. I am not sure about other states but here in Florida anyone can manage a property but you must have a real estate license to rent it to a tenant and only an attorney can write a lease. So I want to caution all landlords helping others to be very careful. I think you are putting yourself at risk. For example:
Do you know about the fair housing laws? Is the landlord naming you as an additional insured on their insurance policy? Do you have an agreement in writing to act on the landlord’s behalf? How about giving proper notice for inspections or other matters? What about the last month’s rent or security deposit? You are now responsible for other people’s money. If the tenant becomes upset over something and they decide to sue they are going to sue everyone, including you.
As of now anyone in Florida can open a property management company and start managing properties and thousands of dollars of other people’s money with no license or training required. There is a strong movement in Florida to have all property managers have a real estate license and I think this will become law in the next year or two.
I would like to know what others think. Is this a good idea to have all PM’s have a license? What are the laws in other states? Has anyone had a bad experience managing another person’s property? I would like to hear from other landlords, property managers, investors and agents. How many of you that are managing another’s property would be willing to get a license? What do you think?
There are a lot of good landlords on this site who know what they are doing but I think they should think twice before they take on a property they don’t own.