Alternative to property management companies, hire in house?

3 Replies

In Ohio it seems to be law that a property management company be under a broker or real estate license. I own 10 properties and know a person close to the community that can rent my units faster and keep a stronger relationship with my tenants and their needs. Can I hire this person and simply pay them a small portion of rent monthly and let them show my units when they’re vacant without them needing to be a property management company with all the requirements stated by Ohio law for property management companies?

You'll have to read the state law. In many states, an employee of the property owner is authorized to manage on behalf of the owner without a license.

% of the rents sounds like a PM fee and not an employee. I think they have to be a W-2 employee and not 1099 commission to avoid this rule.

The license requirement usually comes into play when a PM places or removes tenants, holds security deposits and orders work up to a certain $ amount autonomously, signs leases for you, etc as your agent or rep.

To aid keeping them appearing to be or acting as a PM, avoid compensating as a % of rents or anything that looks like a commission.

I have an onsite guy that does stuff for me, but he doesn't earn % or take applications or holding deposits. Avoid the big 4 duties above that an actual PM does and hire who you need to. 

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