Rental Property Investor · Santa Fe, NM · Member since 2013 · 33 posts · 3 votes
In NM, where I live, property managers have to have a broker's license. I assume this is not the case if you manage your own property. But what if I manage the property for the LLC that I am a member of?
Also, do I have to keep tenant security deposits and last month's rent in a separate trust account? Would the answer to this question change if I owned the condos in my own name?
Real Estate Agent · Chicago, IL · Member since 2013 · 386 posts · 218 votes
11y
You do not need a license if you are managing property you own.
You need a license if you are doing third party management and not a salaried employee.
I'm sure this is true in all states
Rental Property Investor · Santa Fe, NM · Member since 2013 · 33 posts · 3 votes
11y
Let's say the LLC has revenue of 100k, and it pays me 10% to manage the properties. If I am a salaried employee, then the LLC pays 7.5% employment tax, and I pay another 7.5%. That's $1500 extra tax we pay, not including gross receipts tax. If I choose to get a realtors license instead, about how much would that cost me to acquire and maintain each year?
If I choose not to do either, would it be easier for the veil of my LLC to be pierced, because I am managing the property myself, without hiring myself as a property manager?
It looks like having the LLC is going to cost me thousands each year. Is it really worth it?