Investor · Montpelier, VA · Member since 2015 · 12 posts · 12 votes
I live in Virginia. I have 5 homes that I manage myself. I'll be getting my real estate license in a few months. My question is. Do I legally have to run my personal rental agreements through my brokerage and pay them a fee on my own deals. I like to use Craigslist to market my homes, and would rather not list them on the MLS.
Real Estate Agent · Richmond, TX · Member since 2016 · 43 posts · 19 votes
10y
In Texas, you must be licensed to a property manager, which in turn requires you to be sponsored by a broker. My current brokerage does not allow property management, so I would suggest you check into that first. An exemption to the "must be licensed" rule is if you're managing your own property or being paid a salary by a property owner directly. Both of which do not involve your sponsoring broker.
So based on Texas law, you'd be ok if you stick to managing your own properties ONLY and not co-mingling that PM activities (and funds) with your other real estate activities through your broker. Hope that helps.
Real Estate Agent · Richmond, TX · Member since 2016 · 43 posts · 19 votes
10y
In Texas, you must be licensed to a property manager, which in turn requires you to be sponsored by a broker. My current brokerage does not allow property management, so I would suggest you check into that first. An exemption to the "must be licensed" rule is if you're managing your own property or being paid a salary by a property owner directly. Both of which do not involve your sponsoring broker.
So based on Texas law, you'd be ok if you stick to managing your own properties ONLY and not co-mingling that PM activities (and funds) with your other real estate activities through your broker. Hope that helps.
Investor · Montpelier, VA · Member since 2015 · 12 posts · 12 votes
10y
That does help Kevin. Thanks! Best case scenario for me is to manage my own properties myself (outside of the brokerage), and other peoples property through the brokerage. It'd be great if someone from Virginia could chime in here.
Real Estate Broker · Philadelphia, PA · Member since 2014 · 159 posts · 108 votes
10y
Hi Wesley,
I would say that it's better to play it safe here and run everything through your brokerage. In Virginia, you do need to have a RE license to manage properties and collect rent. My best advice here would be to find a brokerage with little or no fees, and works regularly with agent-investors/managers. (Shameless plug: check out Customer Realty, based out of Fairfax)
You will never have to list your properties through the MLS, and you don't have to become a realtor or join a local association (i.e. VAR), which is where the majority of the regular licensing fees come from.
Investor · Montpelier, VA · Member since 2015 · 12 posts · 12 votes
10y
Thanks Andrew! Thanks for the plug too. I'll check Customer Realty out. The complicated part that I'm beginning to find out is running my investment business and my future real estate agent business separately. It's starting to like like I'll be somewhat forced to run them together. Good idea on the lows fees brokerage part. That may be the route I go when selecting a brokerage.
It is the same in VA as what Kevin says it is in TX. You only have to be licensed if you are managing other people's properties. You do not have to be licensed to manage your own properties in VA. You should absolutely be able to keep your two businesses separate with the exception that you will now have to disclose that you are a licensed RE Agent. Always, always, always disclose that you are licensed and ensure that whoever you are dealing with understands (preferably in writing) in what capacity you are representing yourself and/or them.
In terms of your Broker, I have never worked with one of the big houses so I cannot attest to what their policies are. My broker pretty much only works with investors so he could care less about my properties. He does require a fee if I manage for someone else's property but not my own.
It is always good business to keep your broker informed about what you are doing or intend to do with your properties or investing since they are ultimately liable for you. They should be a good source of info as well even if they don't hold your hand like a national brokerage, especially if you take the time to find the right one.
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
10y
@Wesley Smith Welcome to Bigger Pockets! The BP site is extensive and offers much to new and experienced investors. Just so you know, there's a landlord forum that you may want to check out. The renters discussion forum isn't the best place for your question. Although enough people did see it to garner you some good advice. :-) Good luck!
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Renters Discussion: "This is the forum for renters who are looking for advice in dealing with their landlord. Ask questions about dealing with landlords, leases, tenant rights and other important issues."
Landlord Forums and Rental Property Questions: "Forum topics include discussions for landlords and potential rental property owners, including those on finding and dealing with tenants, property managers, management companies, and other issues affiliated with residential income properties."
From BP elsewhere on the BP site.... "NOTE: We've assembled several comprehensive guides that revolve around landlording. Be sure to check them all out: