Starting an STR Management Company - License Requirements?

Question

Hi All!

I'm considering starting an STR management company.  I've done a bit of research for WA state (where I'm looking to operate), and based on what I've found, not only do I need a Real Estate License, but to actually own and operate the company, I need a Managing Broker's license.  The state requires 3 years of experience while holding a Real Estate License + additional training to qualify as a MB.  I don't have my license yet, so it seems like my option would be that I would need to find a Managing Broker to sponsor me.

Does anyone have any advice on how to structure a deal with a Managing Broker for the sponsorship? I don't think they would be required to do much.  I want to compensate them fairly, but I also don't want to give away my business.

Thanks for the help!

Andrew Steffens · Answer

Its going to be tough - it is a lot of work for a broker, all of the trust accounting.  It is very based on the person, but I would expect to cut them in at least 1/3.

Sean Smith · Answer

Hi @Erin Ramsey the cost of a Managing Broker very much depends on the.. 1) workload and 2) risk... you expect them to take on. Fortunately WA state does allow Designated Brokers to put their license to use multiple companies, where other states do not. If you would like a referral to a few Brokers who would be willing and able to do this I am more than happy to connect you with them.

Brandon Vukelich · Answer

@Erin Ramsey let's connect. I'm a DB/MB that owns an STR. Maybe we can work something out.

Jeremy Jareckyj · Answer

did you confirm that even if the stays are under 30 day , you need a license? (in the state of utah no license is required for under 30 days)

Erin Ramsey · Answer

Hi Michael, I've owned 2 STRs (currently down to 1 and working on finding another). Our first one was managed by a national company. We didn't have a great experience so I know it can be done better! I'm now managing my remaining STR located in N. Georgia.

Michael Baum · Answer

Hey @Erin Ramsey, so what experience do you have managing STRs?

I am sure the brokers will ask...

Mike Grudzien · Answer

Good advice!

Erin Ramsey · Answer

Hi Sean - Yes! I would very much appreciate a couple of referrals. Thank you!

Starting an STR Management Company - License Requirements?

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