Attorney · Bettendorf, IA · Member since 2015 · 106 posts · 47 votes
I am kicking around the the idea of partnering with my brother on a buy and hold property in davenport. The formal requirements for the property would be met and the property would likely be held by an llc. Now, looking at Iowa code section 543B, it appears that anyone acting as a property manager for somebody else, must be a real estate broker.
So, if I am a 50/50 owner on an LLC and want to manage my own property, does this mean broker's license?
Real Estate Broker · North Liberty, IA · Member since 2014 · 42 posts · 22 votes
10y
Yes, as someone who is a Broker in both states of Iowa, and Illinois. Brokers in IL are just that an agent with a new title. The actual Broker of a firm would have a Managing Brokers license.
Here in Iowa, A Broker is still a Broker and a Real Estate agent is just a licensee.
Regardless of your pursuits if you are not a Principal Broker of a firm than any rental property or listing belongs to them not the agent.
Rule of thumb - If you are collecting a fee for property you have no financial interest in, you would more than likely need a license no matter what state you reside.
Investor · Indianola, IA · Member since 2015 · 51 posts · 10 votes
10y
no you are acting as your own property manager. Just because somebody else is a part owner with you does not affect your ability to manager your own properties.
Investor · Des Moines, IA · Member since 2014 · 238 posts · 230 votes
10y
@Matt Roghair technically, you would only need a salesperson license but your broker (whom your license would be under) needs to be competent in property management. They are more-or-less responsible for your actions.
You can self manage your own properties including those owned in LLC without any licensing though. Make sure you check rental certificates / inspections in your area... A lot of people forget about those and get in a hair of trouble when they learn about em.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y
NOTE TO THE THREAD: Illinois is one of the states that fiat declared all real estate agents to have the lofty new title of "broker," and then all the actual brokers got some fancy new title like "mega ultra broker" or whatever.
A real estate "broker" in Illinois is not actually a real estate broker, the way most of the country reads it.
Illinois "broker" = IRL a basically qualified agent that passed a test.
Real Estate Broker · North Liberty, IA · Member since 2014 · 42 posts · 22 votes
10y
Yes, as someone who is a Broker in both states of Iowa, and Illinois. Brokers in IL are just that an agent with a new title. The actual Broker of a firm would have a Managing Brokers license.
Here in Iowa, A Broker is still a Broker and a Real Estate agent is just a licensee.
Regardless of your pursuits if you are not a Principal Broker of a firm than any rental property or listing belongs to them not the agent.
Rule of thumb - If you are collecting a fee for property you have no financial interest in, you would more than likely need a license no matter what state you reside.
Investor · IA · Member since 2017 · 88 posts · 36 votes
7y
@Tom Webber - so in Iowa do you only need a real estate SALESPERSON license to be a property manager?
We are thinking of starting a property management business in which we manage mostly short term rentals for owners of vacation homes. My husband is a real estate agent but I don’t want his broker taking a cut of all of our profits. Does my husband need to be a broker then?
Investor · Independence, IA · Member since 2016 · 103 posts · 88 votes
7y
The property management agreement is with the broker. So whether you want to or not, the broker has to be involved. I would recommend getting your brokers license once you've had your salesperson license for 2 years and start your own brokerage!