Hi, looking for some advice with the legality of entering into property management.
I'm a licensed Realtor in Florida but not a Broker. A friend of mine is asking if I would like to manage a rental of his and maybe add more under management in the future.
Can I list/lease the property under my broker's name and then manage the property once it's rented on my own or through another LLC? I understand you need a broker's license as a Prop Manger to perform RE activities like listing and leasing, but after that is done and the tenant is in place can I not just have a seperate contract, outside of my brokerage, to manage the day to day operations of the property and get paid directly?
Any advice would be appreciated.
@Mitchell Senkowicz The Management agreement would have to be with your broker not with you.
No. All fees MUST pass through your broker regardless of the timing.
Ok thank you for the responses gentlemen.
Can I structure it outside of my brokerage if I'm added on to the LLC which owns the property or if we start a new LLC together that buys houses in the future? That way it'd be like I'm an employee/member of the company managing the company's properties as a part of the company, and therefore paid through the company. Just like if an individual investor managed his own properties w/o a management company.
@Mitchell Senkowicz You may want to consult an attorney to make sure you are in the clear and will not be reported to FREC but my understanding is that if you have an ownership interest in the property you can manage it yourself. You will want to consult the attorney to make sure that you do it the right way so that your license does not come into jeopardy.
You would need to have an ownership interest in the property or your brokers license. Might be worth taking the brokerage test if you have had your sales associate license for two years