Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
Hi All,
My girlfriend is currently in school to become a real estate agent in NJ so she can do short term rental property management - No long term leases. She found out that she must be a Broker, not a Sales Agent, which requires working under a current broker for three years before she can own her own company and perform these services.
Is there anyone familiar with offering these services in NJ and how to be compliant (ex. which things she can and can't do if she is not a broker). I find it hard to believe that everyone that performs this service in NJ is a real estate broker, especially when being a broker or agent has nothing directly to do with managing an Air BnB/VRBO listing or offering a quality product to investors.
Rental Property Investor · CO · Member since 2018 · 8 posts · 5 votes
7y
Check your state's rules, but usually if you don't receive funds on behalf of someone you a license isn't required. For example, in Colorado you can handle communication, reservations, cleaning, etc for a short term rental but the money still goes directly to the client. Then you invoice for your % or flat fee and you are in the clear.
Rental Property Investor · CO · Member since 2018 · 8 posts · 5 votes
7y
Check your state's rules, but usually if you don't receive funds on behalf of someone you a license isn't required. For example, in Colorado you can handle communication, reservations, cleaning, etc for a short term rental but the money still goes directly to the client. Then you invoice for your % or flat fee and you are in the clear.
Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
7y
I found this, which we had read previously, but I'm just scratching my head on this...
"Must New Jersey property management companies have a real estate broker's license?
YES. Key components of property management (renting, leasing and collecting rent) are considered real estate activities under existing New Jersey real estate licensing laws. If a property manager is going to rent, list, collect rents, procure prospects or negotiate, assist, or offer to perform any of those acts, he or she will need a broker's license. A salesperson working under a broker may engage in such activities."
So does this mean that to be an AirBnB super host you must provide a license? Really shaking my head at New Jersey as this really just cements that all they do is go for cash grabs with their businesses.
Rental Property Investor · Denver, CO · Member since 2017 · 201 posts · 126 votes
7y
@Cody Z. I agree with @Erik Mehus about the rules of rowing a cohost. As long as you don’t handle the money in Colorado you are good. I would consult a real estate attorney in NJ to clarify. My guess is this is still a gray area as most states didn’t foresee how fast short term rentals would take off. Good luck.