How to become property manager in PA on pyaroll?

9 Replies

Hi guys,

Ive heard it was difficult to become  a property manager in Pennsylvania, plus it was hard to find a good company to be a property manager.

I have a handyman who has been doing a good job managing, but the problem is he can not represent me in eviction court, I have to hire an attorney which is pricey. So, since I am paying the handyman for management monthly fee anyway, is there a way he can represent me in court? What if I put him on my company's payroll then as an employee he can, right? Or is there another way?

@Mary Jay In Pennsylvania all property managers, unless they are the owner, must have a state license. Legally your property manager is violating the law unless he is licensed by the state. In some counties/ District Justice Courts, the Judge will not allow an individual to represent an entity like an LLC, S Corp, C Corp etc unless that individual is a licensed attorney in Pennsylvania. I have never seen that challenged in the courts.

If your handyman is a W-2 employee of your LLC, there are some counties/District justice Courts where he would still be barred from representing you. I have heard, but never seen it actually done where the manager becomes a small percentage owner like 1%, and is therefore able to honestly represent to the court that they are an owner, however small.

@dave krulac is right.  The reason that property management mostly sucks in PA is that is it difficult to legally become a property manager.  You can either work for a broker for 3 years in order to qualify to get your own prop manage license; or like the majority of "property managers" in PA, you operate illegally.   The legal loophole is that someone with an ownership stake, as little as 1% can manage a property as an owner.  Back to your specific problem. It might not be a great idea to have a handyman represent you in an eviction.   The skill set for handyman doesn't generally translate to the eviction process.  There are property managers who will charge you an a-la-carte price for the specific services that they provide. So it is possible to hire a prop manager to just handle evictions.  

Originally posted by @Josh Caldwell :

@dave krulac is right.  The reason that property management mostly sucks in PA is that is it difficult to legally become a property manager.  You can either work for a broker for 3 years in order to qualify to get your own prop manage license; or like the majority of "property managers" in PA, you operate illegally.   The legal loophole is that someone with an ownership stake, as little as 1% can manage a property as an owner.  Back to your specific problem. It might not be a great idea to have a handyman represent you in an eviction.   The skill set for handyman doesn't generally translate to the eviction process.  There are property managers who will charge you an a-la-carte price for the specific services that they provide. So it is possible to hire a prop manager to just handle evictions.

I have to think with the size of your cities at least the major ones and the HUGE number of renters there has to be eviction services.. I know we have a few in Portland.. so we can self manage but we hand the evictions off to the service usually 600 to 1000 bucks done and done right.. 

 

Originally posted by @Jay Hinrichs :
Originally posted by @Josh Caldwell:

@dave krulac is right.  The reason that property management mostly sucks in PA is that is it difficult to legally become a property manager.  You can either work for a broker for 3 years in order to qualify to get your own prop manage license; or like the majority of "property managers" in PA, you operate illegally.   The legal loophole is that someone with an ownership stake, as little as 1% can manage a property as an owner.  Back to your specific problem. It might not be a great idea to have a handyman represent you in an eviction.   The skill set for handyman doesn't generally translate to the eviction process.  There are property managers who will charge you an a-la-carte price for the specific services that they provide. So it is possible to hire a prop manager to just handle evictions.

I have to think with the size of your cities at least the major ones and the HUGE number of renters there has to be eviction services.. I know we have a few in Portland.. so we can self manage but we hand the evictions off to the service usually 600 to 1000 bucks done and done right.. 

 

In Philadelphia only, a landlord group called HAPCO offers evictions handled by a law firm for around $400 or so. There is an annual membership fee to be a member of HAPCO - but if a Philadelphia landlord needs an inexpensive eviction, they can join and get the eviction deal for a total that is less than two hours of an attorney billing by the hour.


 

Thank you so much, guys! You are super helpful!

Do you know by chance anybody in Pittsburgh area who would deal with evictions only?

Originally posted by @Andy Madden :

@Mary Jay

I will send you a direct message with some information that may be helpful.

 Thank you, Andy. I replied to your message

Property management is a licensed activity. And a sub-contractor must be through a brokerage.  I'm unclear why someone would use a handyman as a property manager? The fees wouldn't be less, the liability, losses and expenses would increase, and rents would be far lower.

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