Property Management Question

[Dom Palladino]

I am interested in creating a small property management company. I currently have my New Jersey Real Estate Sales License, but not my brokers. NJ law states that to own this type of company one must obtain a brokers license, this is not currently possible due to the fact that I will never become a full time sales person for the mandated 3 consecutive years. I am an accountant by trade.

Now after doing some prelim research it seems that as long as my license is hanging with a broker I can perform all duties of a property manager. All of my tenant advertising/leases/tenant placement will have to be funneled through my brokerage office and obviously they would receive their regular commission cut.

Now it doesn’t seem that there are any laws restricting all other duties of a PM. You don’t need any licensing to pick up the phone and call contractors or do bookkeeping for the owners.

My questions are that if you were a property owner, would this somewhat different way of conducting business perturb you from allowing me to manage your property? Will there be any legal ramifications on my broker if an eviction attempt goes awry and to court? Has anyone ever heard of a property management company being run this way?

I have played devils advocate for a while over this and I feel there could be some issues, but nothing that seems too insurmountable.

Any feedback is appreciated.

Dom