Property Management question

3 Replies

I'm hoping this is the right place for my question!

My father is currently in the process of buying a multi-unit building in my area (he lives in another state). He wants me to do the property management, since I have previously worked in Property Management Accounting for one of the major RE companies (as well as many many years of customer service). Granted, I have a lot to learn and to research, but I believe I would be able to do well.

My problem is this: I am finding/getting conflicting information as to what I need to do in order to be the property manager. I need a broker's license, no I don't need a broker's license if I'm a resident manager, or no I don't need one at all. And that's after looking for state-specific answers. 

My husband had an idea to maybe get around the needing a license issue - if my father made me part owner in his LLC (at even 5% stake), that should be enough to allow me to do the managing for his LLC (rather than through our own).

Thoughts, suggestions? 

@Brin Weins , welcome to BP. Don't guess. The consequences of running afoul of the law could be severe. Contact a local real estate attorney and double check their answers with your State licensing board.

Generally if you are an owner in the property you can avoid some of the property mgmt laws and regs. That's a general comment. I would also consider contacting your local real estate commission as they may have lawyers on staff who can answer that question.

Originally posted by @Chad Lopes :

Generally if you are an owner in the property you can avoid some of the property mgmt laws and regs. That's a general comment. I would also consider contacting your local real estate commission as they may have lawyers on staff who can answer that question.

 I did email the IA Real Estate Commission this morning, but she just sent me a link to a PDF of Administrative Rules that seem to apply to those who are already Property Managers. The best info I got from it was the following: a licensee cannot do a list of duties "...unless the licensee’s broker holds a current written property management agreement or other written authorization signed by the owner of the real estate or the owner’s authorized agent." Like I said, I'm very new to this, so it isn't translating well for me. There will be no brokers involved, just myself and the owner. We would have an agreement in place - we all want to do this the right way.

I definitely don't want to run afoul of any pertinent laws, like @Jeff Rabinowitz mentioned. I was hoping to find a clear answer online, but will try to find a local real estate attorney. 

Does anyone know why a resident manager would be exempt from needing a broker's license? From what I understand, it's the same job, just a different home address.