How to become a PROPERTY MANAGER?

Question

- Do i just need to form an LLC and find clients?

I am in the state of PA!

Someone help!

Nathan Gesner · Answer

Not an attorney but I believe DC requires you to obtain a property manager license. The good news is that you don't have to work under a licensed broker but you may still want to consider it.

Do you hear the complaints in these forums about property managers? There are a ton of bad ones out there. There are a lot of unprofessional, uneducated, unscrupulous managers out there. It takes a lot of hard work and self-education to become a good property manager. You can accelerate your learning by getting a job with an existing PM company. After you've got a taste for it and an education, then you can step out and build your own company.

starting on your own can be difficult for all but the best.

Nicole A. · Answer

Yes, it's probably best to form a business entity such as a LLC. You would also need to be very familiar with the local rental laws. They can vary county to county within a state! You should also grow your network of contractors so you have people to handle the repair calls.

I also recommend you start going to your local REIA meetings. You can find these meetings by Googling "REIA <your state>" and even the MeetUp website and such.

You'll need documentation such as lease templates, various letter templates, etc. You'll need contracts between you and your future clients (the property owners).

You might need some sort of business license and/or PM license. You will need to research this by networking locally and doing some proper online searches (probably good info that can be trusted on your local government websites).

Finally, if you've never managed rentals before, I would highly recommend you first go work for an existing PM company. Learn the ropes. Gain some inside tips and knowledge. Then build on that with your own brand.

Good luck!

Marc Winter · Answer

In PA, a property management company needs to have a licensed broker.  That doesn't necessarily have to be you, but the broker must be involved in the day-to-day to some extent.

So my question to you is:  you could do it, but are you sure you really want to?  Tenants will test you, owners think you are ripping them off.  No one is ever happy.  It's a non-stop complaint department.

Remember, you'll be taking on all the problems that the owners don't want to deal with, but they expect you to perform a monthly miracle of collecting rents on or before the first of the month and having that in the owner's hands by the 2nd.  Good luck!

Mike McCarthy · Answer

@Charlie Moore you’ll need a realtor license to collect rent and manage a property that you don’t own.

Good luck!

Mike McCarthy · Answer

@Charlie Moore I have no idea how often something like that is actually prosecuted, but I'd imagine it would just take one disgruntled customer to cause you problems.  Looks like it could be considered a misdemeanor or felony based on the state (don't know enough about PA real estate law to say).

https://www.criminaldefenselawyer.com/resources/brokering-real-estate-without-a-license.htm

Marc Winter · Answer

@Charlie Moore, yes, in PA you need to be licensed to legally run a property management company for other owners.  Either you as a broker or under another broker who will have the license.

Charlie Moore · Answer

So in other words, you either need to be a BROKER or work under a BROKER

RIght??

Charlie Moore · Answer

Okay! What happens if i just form an LLC and do it?

is there legal punishments???

Russell Brazil · Answer

Correct, in DC to manage property you need to have a property management license, a brokers or associate brokers license to manage property.

How to become a PROPERTY MANAGER?

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