What do I need to start a Property Management business ?

Asked by Erika, Texas Thu Dec 23, 2010

Hi guys :)
First of all I wish you Merry Christmas and the best luck for the new year !!!
I recently got my Salesperson License and I would like to start a Property Management business. I have been looking for information but some articles say that a Broker License is not necesary while others say that it is definitely a requirement to start this business. Would you please help me with the right answer ?
Many thanks !
Erika :)
I'm in Austin - Texas

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11
Betty Best, Agent, Springfield, VA
Fri Dec 24, 2010
For anyone following this thread not in Texas, also be aware some states have additional licensing and education requirements to do property management. I'd also caution you about risks involved. As an experienced property manager, active with my local chapter of NARPM (another good resource for you - the National Association of Residential Property Managers) I hear horror stories all the time about lawsuits, damages, eviction nightmares and all the other bad stuff we property managers must deal with. It definitely is not something to do just to make a few bucks if you don't know what you are getting into. Make sure you understand your responsibilities and the risks before taking on clients.
Merry Christmas
- Betty Best, Key Home Management, VA
2 votes
Keith Manson-…, , Milwaukee, WI
Fri Dec 24, 2010
What I would check is check out the Real estate managment web site that will give you ideas about what is involved and maybe on direction on who you might be able to work for to establish the required skills.

Check out http://www.irem.org

Keith Manson
Certified Distressed Property Expert
Metro Milwaukee
http://www.milwaukeebailout.com
2 votes
Kevinbrylejo…, Both Buyer And Seller, Huntington Beach, CA
Sun Sep 25, 2016
Do ask your broker just to be sure.

Alternatively, make use of technology to free up some of your time to focus on your most important tasks. Try property management apps such as https://www.rentigo.com/ which eases communication and payment reminders between property managers and renters.
1 vote
Couldn't agree more! I've been using rentigo for a while and am really happy with them. In the meantime I find that I can manage my properties without paying an external property manager (when I have too many apartments that I can't handle them on my own maybe i'll outsource!)
Flag Mon Sep 26, 2016
Scott Godzyk, Agent, Manchester, NH
Fri Dec 24, 2010
With an agents license you are working under a broker, you would need their approval and have to work with them to manage any buildings. You will need your brokers license to head out on your own and work for yourself. Check with the TX real estate commission for ghuidelines tio get your brokers license.
1 vote
Dallas Texas, Agent, Dallas, TN
Fri Dec 24, 2010
If you just received your license ask your broker OR inquire to State of Texas answer(s) to all your question(s) .

Start Prop. Mgmt company you need knowledge there are many tips and tricks practice perhaps worker for an office prior to getting involved.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
1 vote
Scott Butcher, , Austin, TX
Fri Dec 24, 2010
Agree with Bruce, you have to have a Broker's license in order to do 3rd Party Property Management. As you know from your recent R.E. studies, only a broker can enter into listing agreements/property mangement contract. If you current Broker performs property management, then you can enter into PM contracts through your Broker's name, but your restrained by whatever your splits happen to be.

An option you could consider is have a Broker that you know and trust become your 'Sponsoring Broker' for a C-Corp, S-Corp, LLC, LP, etc. that you own/manage and then you'll can negotiate whatever split you like with said Broker. This would be a way for you to get into that business and have more control over it. Your eventual goal would be to get your own Broker licnese ASAP and then you take out the 'middleman'. The challenge you would have is that you would need to have your license under this same broker.

Feel free to consult with TREC about this as well.

Just my opinion.

Good luck.
1 vote
Bruce Lynn, Agent, Coppell, TX
Fri Dec 24, 2010
All real estate work you do will need to be under the direction of your broker. Some will allow and some won't. They'll be your best resource if interested. If you have not gone to work for a broker yet, then you might consider going directly to a current property manager and working under them to learn the business and partner with them for the business you generate. That way you will have some structure and guidence along the way. You might want to ask around in Austin to find out who has the best reputation and systems and then go to work for them first.

Bruce Lynn
Keller Williams Realty
Web Reference:  http://www.teamlynn.com
1 vote
Janet Quenon…, , San Antonio, TX
Thu Dec 23, 2010
You are under your broker as a real estate agent and must addressed this with your broker. Some brokers do not allow property management as there are additional accounting reporting and IRS requirements.
1 vote
Greg Satterw…, Agent, Plano, TX
Mon Mar 7, 2011
TexasSponsoringBroker.com
0 votes
You can learn a lot about becoming a property manager just by speaking with one. I am looking to become a commercial property manager in the near future. I would like to speak with a few successful managers in the industry so they can steer me in the right direction.
http://www.cbcread.com
Flag Fri Oct 31, 2014
Erika, , Texas
Tue Dec 28, 2010
Hi there :)
Thank you sooo much, guys for all your advises. I really appreciate it :)
Sorry Ididn't answer before !!
I wish you all a very Happy New Year's Eve :) ...

God Bless you !
Erika.
0 votes
Alo webb, Landlord, New Rochelle, NY
Fri Dec 24, 2010
You have to check with the laws of the state where you plan to operate the business. In the state of Texas you are required to work under the direction of a Real Estate Broker if the business is incorporated in Texas. I could not locate any information on the state requirements if the business is incorporated outside of Texas but operates i the state.
0 votes
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