How to become a Property Manager

Question

I did a quick research on how to become a Property Manager. I found some saying you need to be an agent or broker while others offered education classes. I am a little confused on how to actually become one. I am interested in investing. However, with the lack of funds, I thought becoming a property manager to get experience would be a great place to start. So if anyone has any suggestions or know how to become one the help would be greatly appreciated.

Michael Noto · Answer

@Philip Johnson If you are managing other people’s properties in Connecticut you either need your brokers license or your company needs to be affiliated with a licensed broker and you would basically work under their license.

As far as operating without the needed licenses/certs that obviously goes on a lot not only in Connecticut, but other markets as well. I would just go into it knowing the bigger you get the more important it is that you are legit from that standpoint. Best of luck.

William Joseph · Answer

@Philip Johnson

Conceptually, it is pretty easy to start a management company. There is probably a market too for a small manager who will devote lots of time to small portfolio or individual property. Getting the clients in the beginning is the hardest part. My advice to you would be (1) Start a separate LLC, (2) Get a GL policy for that LLC, (3) Get a management platform - I use Buildium, (4) don't co-mingle client's funds,and (5) be transparent with your client on all invoices and work orders. The rest will come to you. Best of luck!

Philip Johnson · Answer

Thanks, but I prefer my philosophy.  If I took your recommended approach of over-worrying about details to investing in real estate, I would have zero properties, and would still be lost in the weeds.  I would prefer to be thrown into a pool and learn how to swim, then to be taught how to swim and put my life on hold.  More people would have businesses if they just started one, and then refined and become more legitimate as they went along.  Why invest 100's of hours in something if 90% of businesses fail within the first year?  Better to try it, then get your ducks in a row if you like it, and actually get business. If there's a way to legitimately be a co-manager, why not do that first? I live life on the wild side, for example, I go outside without a mask on.

Marc Winter · Answer

@Philip Johnson, that 'start now and worry about the details later' is a recipe for disaster.  Do your own research, speak with other property managers, real estate brokers, attorneys.  Read your state's real estate and property management guidelines.  Get the facts.  Do yourself a favor and get the details FIRST.

John Underwood · Answer

Skip the certifications of being a PM and just do Master leasing. This gets you out of many legal requirements.

You lease a property with the understanding that you are subleasing the property to a long term renter. You take the calls from the tenant but the owner pays for repairs as they are your landlord.

You can guarantee the rent to the owner or do a performance based lease where they get paid when you get paid.

Filipe Pereira · Answer

"Co-manager" isn't really a thing in CT. It sounds like the closest thing may be a "building super" short for "superintendent". The position of a building super is to oversee maintenance requests, work orders, etc. I'm not sure they're even allowed to collect the rent without a RE license. There is also a requirement that they must live at the property to be able to show units to prospective tenants. Lots of the bigger PM firms get away from having to pay RE agents a commission to place a tenant by just having other tenants show the units in exchange for discounted rent, or by using a building super.

At the end of the day though - to manage property that you don't own, a broker's license is the most hassle free way of doing it. Unfortunately in Connecticut you need to have 2 years as a licensed RE agent before you can get your Broker's license. In MA it is even worse, at 3 years.Good luck and reach out if you have any questions! I own a highly rated property management firm north of Hartford.

Philip Johnson · Answer

Thanks for the advice! Luckily your first few steps are much cheaper here than they were in California where I just transplanted from.

I'll check out Buildium, how does it compare to Appfolio?  Do all of these have monthly fees, or are they based on the number of accounts you have?

Philip Johnson · Answer

Kenny, thanks for the post. Can you please elaborate a little bit on this, I'm in the state of Connecticut. I have six years of PM experience and see no reason to put my business idea on hold, I would prefer to start now and worry about the details later.  How do I become a "Co-manager"... ??? TY !!! Any ideas on where to look for restrictions on this in the state of CT?

Michael J Ralph · Answer

Thank you everyone for your advice and help.

Kenny Dahill · Answer

@Michael J Ralph, I believe 47 states require some type of license: PM, realtor, broker.  Research your state requirements.

@John Underwood had a great suggestion as well.  It's a quasi-loop hole but a lot of people do this.  You can also consider being a co-manager with landlords, in most states you only need a license to discuss rates & terms.  So leave that to the landlords and then you handle all the tenant screening, maintenance requests and rent collection.

How to become a Property Manager

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