PROPERTY MANAGEMENT WITHOUT A LICENSE

12 Replies

A FRIEND ASKED ME TO MANAGE HIS DUPLEX FOR HIM IN LOS ANGELES CA. AND SAID HE WOULD PAY ME TO DRIVE FROM SAN BERNARDINO CA. TO MANAGE THE UNITS BY TAKING CARE OF TENANT PROBLEMS, REPAIRS AND TO PICK UP RENTS HE IS IN HIS 80'S NOW AND SAYS IT IS TOO MUCH OF A HASSLE FOR HIM NOW BUT NEEDS THE INCOME 

Why do you need a license for pm?

I would check your state real estate laws. In many states you need a real estate license to manage properties for others.

It may just be a simple fee, if you even need one. My commercial construction license was literally a $12 fee. That’s it. No test. Nothing.

Just see what your state requires.

Like everyone says check your state's requirements. In FL you need a license for that. 

Here's what I found in the internet :

"Licensing. California requires property managers to have or work under someone who holds a real estate broker's license. The only exception to this law is for property owners who manage their own buildings"

I DIDN'T THINK IT WAS ANY DIFFERENT THAN BEING AN APT. MANAGER FOR SOMEONE ELSE 

You need to be licensed in the State of California if you are managing property for someone else. California is one of the most difficult states because of all the regulation so you don't want to take on that responsibility as an amateur.

Thanks I'm starting to see this may be a nightmare I might not be able to help with as a manager, but what about as a business assistant ?

I am not in the west coast but here in Pennsylvania as well you need a Real estate license in order to be a property manager for other people. If it is your own property you have the company managing for then its all good, but once your PM company is doing anything for someone else's property, then yea license all the way.

there are only VERY FEW states were Real estate license is not required.. probably less than 5.. CA is not one of them.

apartment managers that LIVE ON SITE do not need to be licensed but the rent still has to be collected through a license brokerage.. the on site manager just pass's the checks or rent to the licensed brokerage and there job is showings and day to day maintenance etc.. also referring tenant issues..

what U describe is a licensed activity.

Check the details of the law. If he has an LLC or corporation he may be able to hire you as an employee and then you can manage as the 'owner'. He could also sell you 1% of the business for $1 and have a written agreement that at any time he can buy the 1% back from you for $1. Now this would have tax implications because you would be owed 1% of the business profit every year, but all I am saying is that their are ways that you could be an owner and therefore not need a license. I would consult the law and even an attorney familiar with CA real estate law before proceeding. You dont want to be dragged into court for practicing real estate without a license!

@Brian Adzadi Thanks for making me aware of that.  You might have saved me some legals trouble that could have resulted from different people doing PM work across different LLCs.  https://www.allpropertymanagement.com/propertylaw/property-management-law-in-pennsylvania.html

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here