Commission for all-in-one Property Manager under broker

Commission for all-in-one Property Manager under broker

Member since 2024 · 7 posts · 0 votes

Hello! I’m an experienced property manager/licensed real estate agent trying to develop a proposal for my management fees for starting an STR branch for a big name agency. I’m bringing a portfolio of STR clients with me and am an experienced property manager ready with all the channel management software and integrations running and wrenches already worked out, ready to build new listings and find clients for this agency. They have the accounting and marketing systems in place to make this a big success in a relatively untapped market. I’m thinking my split on a 20% fee of owner’s STR rental income would be 75% + a finder’s fee for new clients of $1000 or 1% of first year’s 20% rental fee (whichever is greater) + 90% of the $1500 listing setup fee which covers all the work of creating the listing, coordinating the photography, on-boarding to channel management and dynamic pricing software + referral fees on rental properties that go to list. Am I in the right ballpark? Suggestions are greatly appreciated!

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Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
2y

If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Yeah @Marie Martin. I agree with @Sarah Kensinger.

    You should just hang out your own shingle on this. You can create a real unique PM experience for your clients. I feel pretty confident you can do it on your own.

    Get with Sarah as she runs a similar kinds of business.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I agree with @Michael Baum and @Sarah Kensinger

    What you will gain on name recognition from the big company name will be lost by people fearing that a big name company is unable to care for their property as a smaller company can.

    The loss of marketing and accounting systems can be replaced by hiring a company like Vintory and a Bookkeeper through a CPA.  A bit of added overhead but you will be keeping quite a bit of your hard earned revenue!

  • Member since 2024 · 7 posts · 0 votes
    2y
    Quote from @Sarah Kensinger:

    If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.


     We have to operate under a broker even if licensed as a real estate agent.

  • Member since 2024 · 7 posts · 0 votes
    2y
    Quote from @Andrew Steffens:

    I agree with @Michael Baum and @Sarah Kensinger

    What you will gain on name recognition from the big company name will be lost by people fearing that a big name company is unable to care for their property as a smaller company can.

    The loss of marketing and accounting systems can be replaced by hiring a company like Vintory and a Bookkeeper through a CPA.  A bit of added overhead but you will be keeping quite a bit of your hard earned revenue!


     I am trying to make the best of a requirement in my state that one has to operate under a broker. So as a licensed real estate agent I can't operate independently. There's going to be a loss no matter what, so trying to sell the fact that I bring a lot of expertise from having operated on my own (before I was aware of the legal requirements to be under a broker). Just not sure where to start in asking for my cut.

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y
    Quote from @Marie Martin:
    Quote from @Sarah Kensinger:

    If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.


     We have to operate under a broker even if licensed as a real estate agent.

    That's why you co-host until you meet the requirements of a broker. Many brokerages can't have a PM on staff due to insurance anyway. You might also want to check and see if STR are excluded from the licensing requirements. Most of the laws are for LTR and either there's an exemption for STR or it's a serious gray area.  
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I am licensed broker anyhow, but in FL you do not need to be a broker to manage transient housing.  It is looked at the same as managing a hotel. I know this is not so in a lot of other states, but do you qualify to upgrade your license to a broker?

  • Member since 2024 · 7 posts · 0 votes
    2y
    Quote from @Sarah Kensinger:
    Quote from @Marie Martin:
    Quote from @Sarah Kensinger:

    If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.


     We have to operate under a broker even if licensed as a real estate agent.

    That's why you co-host until you meet the requirements of a broker. Many brokerages can't have a PM on staff due to insurance anyway. You might also want to check and see if STR are excluded from the licensing requirements. Most of the laws are for LTR and either there's an exemption for STR or it's a serious gray area.  

    Unfortunately, STR is not exempt. It is engaging in real estate activity, and so is co-hosting. All of it requires a real estate license and operating under a broker. I fully researched everything, got licensed, now ready to go under a broker. Just not clear on what to ask for compensation.

  • Member since 2024 · 7 posts · 0 votes
    2y
    Quote from @Andrew Steffens:

    I am licensed broker anyhow, but in FL you do not need to be a broker to manage transient housing.  It is looked at the same as managing a hotel. I know this is not so in a lot of other states, but do you qualify to upgrade your license to a broker?


     No, you have to operate for two of the last four years under a broker as a licensed real estate agent, then go through broker licensing and exams before becoming an associate broker under a responsible broker.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y
    Quote from @Marie Martin:
    Quote from @Andrew Steffens:

    I am licensed broker anyhow, but in FL you do not need to be a broker to manage transient housing.  It is looked at the same as managing a hotel. I know this is not so in a lot of other states, but do you qualify to upgrade your license to a broker?


     No, you have to operate for two of the last four years under a broker as a licensed real estate agent, then go through broker licensing and exams before becoming an associate broker under a responsible broker.


     Understood.  Well as Sara mentioned you can do co-hosting which should not fall under license law as you are assisting the owner, or you can go under the broker.  What you outlined seemed like a fair split.  I would make sure you can take your portfolio once you become eligible for a brokers license.

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y
    Quote from @Marie Martin:
    Quote from @Sarah Kensinger:
    Quote from @Marie Martin:
    Quote from @Sarah Kensinger:

    If you have a portfolio of STR owner clients, why aren't you starting your own company instead of going under a big name agency? Homeowners are leaving companies like that in droves and you may be just as successful on your own.


     We have to operate under a broker even if licensed as a real estate agent.

    That's why you co-host until you meet the requirements of a broker. Many brokerages can't have a PM on staff due to insurance anyway. You might also want to check and see if STR are excluded from the licensing requirements. Most of the laws are for LTR and either there's an exemption for STR or it's a serious gray area.  

    Unfortunately, STR is not exempt. It is engaging in real estate activity, and so is co-hosting. All of it requires a real estate license and operating under a broker. I fully researched everything, got licensed, now ready to go under a broker. Just not clear on what to ask for compensation.

    I would be curious as to what state your operating in. The compensation you outlined in the post sounds reasonable, but you'll need to talk with the broker since from my understanding they would have the final say. On rare occasions I've heard of brokers wanting nothing except referral clients to purchase property through them, but again that's pretty rare.
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