What are the rules?

Question

BP Fam🫡, I need someone to put me up on game please, b/c I'm kinda confused on this topic.

I keep seeing that to manage a property one has to have some type of real estate credentials. Is that still so, if you're self managing a small multifamily? An can you have ppl working with you w/o needing those credentials?

Drew Sygit · Answer

Most states require either a RE brokers or agents license to manage properties you do NOT have an ownership interest in or that you are not a W-2 employee of the owner.

So, most states do not require licensing to manage what you own.

Keith Jablonowski · Answer

Depends on the state you are in.  Some states require a real estate/broker license to manage properties for other people.  Others require nothing.

In IL you can manage your own properties without being licensed, but need to be licensed to manage any 3rd party owned properties. You can have employees do unlicensed activities but if they are going to do leasing, showings, sign contracts, etc they need to be licensed as well.

Michael L. · Answer

@Keith Jablonowski, roger that🫡!

Michael L. · Answer

@Keith Jablonowski, I'm in Maryland. It's the way that the r/e jargon gets used that makes it confusing. On one hand you can self manage, showings, and lease agreements, but then I've seen info that says you can't negotiate lease agreements. Now I'm wondering how do you do a lease w/o negotiating terms?

Keith Jablonowski · Answer

Every state uses different language and has different requirements.   Since you are still confused on this issue I would advise to get with a RE attorney that practices in Maryland to discuss your specific situation.

Michael L. · Answer

BP, I'm back with a contiuation on this topic.

What I'm seeing is that in some states you can do your own leases w/o a real estate license but you can't negotiate lease agreements. But isn't that the same thing?

Keith Jablonowski · Answer

It would really help to know what specific state you are referring to and post link to or the text from their RE Act/Regulations.

Michael L. · Answer

@Drew Sygit, thanks for the clarity, very helpful.

Michael L. · Answer

@Peter Mckernan, thanks for chiming in with your expertise. It was well received...

Michael L. · Answer

@Jim Johnson, you cleaned that up nicely so it wouldn't be so complicated. Thank you kindly champ!

What are the rules?

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