Starting a PM company in TX without a broker's license. Anyone used a broker for hire

Austin, Texas
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Starting a PM company in TX without a broker's license. Anyone used a broker for hire

Arthur Ehrlich
Realtor · Austin, TX · Member since 2026 · 1 post · 0 votes

I've had my Texas real estate license since 20,19 but never got my broker's license because I didn't think I needed it. I spent some time traveling, my license lapsed, and now that I'm back I don't meet the experience requirement for the broker's license.

I have investor clients asking me to manage their properties, so I'm looking to start a property management company. From what I understand, one option is licensing the company as a business entity with a hired designated broker.

Has anyone here set up a PM company this way? A few things I'm curious about:

How did you find your designated broker, and how did you structure their pay (flat monthly fee, percentage, equity)?

Did you run into problems with the E&O requirement or with the broker's level of involvement?

Would you do it this way again, or just work under an existing brokerage until you qualify?

Appreciate any insight.

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
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    Arthur, sounds like you’re at an interesting point where your real estate experience can potentially translate into a service business.

    The biggest thing I’d focus on is making sure the business model works before scaling. Property management can look attractive from the outside, but the margins depend heavily on systems, staffing, software, maintenance coordination, owner communication, and how efficiently you can manage each additional property.

    For the broker structure and licensing side, I’d make sure you confirm the current Texas requirements directly with the appropriate licensing resources or a real-estate attorney, since those rules can change and the details matter.

    From the business side, I’d also think through the relationship with the designated broker carefully. The compensation structure, responsibilities, compliance oversight, insurance requirements, and expectations should all be clearly documented before bringing someone into the business.

    From the tax side, I’d set up the bookkeeping and entity structure correctly from day one. A property management company has different tax considerations than owning rental properties, and as revenue grows, it may be worth evaluating things like S-Corp treatment based on profitability, reasonable compensation, payroll costs, and the overall business structure. Feel free to DM me, I’d be happy to share a few resources on setting up the tax and accounting side of a real-estate business.

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