Managing a property for an aquaintance

General Landlording & Rental Properties
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Managing a property for an aquaintance

Michael Balducci
Rental Property Investor · Huntsville, AL · Member since 2018 · 7 posts · 11 votes

A friend of my girlfriend is moving out of state and wants to rent out her home. She's asked us about managing the rental for her. While I'm comfortable with managing my own, what are the considerations for managing someone else's property (specifically in Alabama) ? Are there any licensing requirements ? Should I form an LLC just for that purpose ? Or should I just politely decline ?

Thanks in advance!
- Mike   

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Tracy StreichPro Member
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
5y

AL requires a Brokers License to manage property for others    I would just tell them this and decline.   

[email protected]918-728-8080
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  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 994 posts · 783 votes
    5y

    get a soldi management agreement in place so you know what you are agreeing to.  what is the charge for leasing? Management, what happens if there is a big insurance claim for you to deal with, et.c  What are your responsibilities if tenants dont pay.  what will you do to rehab the property. etc. 

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  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    AL requires a Brokers License to manage property for others    I would just tell them this and decline.   

    [email protected]918-728-8080
    1Reply
  • Filipe Pereira
    Property Manager · Windsor Locks, CT · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Michael Balducci:

    A friend of my girlfriend is moving out of state and wants to rent out her home. She's asked us about managing the rental for her. While I'm comfortable with managing my own, what are the considerations for managing someone else's property (specifically in Alabama) ? Are there any licensing requirements ? Should I form an LLC just for that purpose ? Or should I just politely decline ?

    Thanks in advance!
    - Mike   

    Alabama requires a license. I would politely decline unless you want to be at the beck and call of tenants that aren't even yours. Believe me, it isn't worth the 10% you could charge unless you are doing it at volume. It's a great way to ruin evenings and vacations with your loved ones. Most people only build the systems necessary to avoid this once they are doing it at scale. 

    If you don't want to feel like you are leaving them high and dry, research some highly reviewed property management companies for your friend, and refer them to those companies. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    5y

    Make sure to read Alabama residential real estate management statutes. You may be able to find a creative and legal way within them to satisfy your friend. 

    For instance, you could handle the maintenance and inspections, but have them hire an agent to find new tenants.

    [email protected]248-209-6824
    Logical Property Management4.9465 Reviews
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  • Michael Balducci
    OP
    Rental Property Investor · Huntsville, AL · Member since 2018 · 7 posts · 11 votes
    5y

    Thanks for the responses.  Given the licensing requirements and the associated legal risks, I've let them know that they should find an existing PM firm.

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