To become a property manager or run your property management business, you need to understand the applicable laws that relate to the industry. There are many specific regulations, certifications, and licensing requirements you have to meet before your business can legally start to run. These vary between states and municipalities, so you’ll need to do further research to make sure meet the requirements in your area.
First of all, to engage in property management activities, most states require that you have a current real estate broker license. While most states don’t list property management companies by name in their statutes about real estate agents, they list many activities commonly undertaken by property managers. Therefore, to legally accept most of the activities your business would need, you would need to possess a real estate broker’s license.
This requirement leads to the second requirement, which is age. To get a real estate broker’s license, you have to go several steps. One of these steps is becoming eligible to be a real estate salesperson. In most states, real estate salespeople must be at least 18 or 19 years old; others require you to be at least 21 in order to become a broker in addition to a salesperson.
Other essential eligibility requirements for becoming a property manager include education level, citizenship, and residency. You’ll need to possess a high school diploma or equivalent in most states. You’ll also need to be a US citizen. Some states require that you be a resident of that state to become a real estate broker or property manager.
Once you have met the eligibility requirements, you will have to take certain classes about real estate. If you complete these courses satisfactorily, you will be given the opportunity to sit for your state’s real estate broker’s exam. To obtain your license, you have to pass this review.
You will also need to prove your trustworthiness. This way, the state knows you aren’t trying to obtain a broker’s license just to scam people out of their money which is done by performing a criminal background check. Some states, although not many, also require a credit check.
Sometimes these requirements are softened or even waived if you have a real estate broker’s license in another state, or if you are currently an experienced real estate salesperson. The requirement to take real estate classes may also be waived for attorneys with a relevant specialty or other people with significant relevant experience in real estate.
Once you have obtained your real estate broker’s license, you can start your property management company. Property management companies can be any business, from sole proprietorships to LLCs to full-blown corporations. There are different requirements to open and run each type of activity depending on your location. The best place to get information about starting a business is through your local Chamber of Commerce.
You may also be required to get a real estate broker’s license in the name of the business that you start. This requirement depends on the state where your business has its headquarters. State laws and statutes will explain the local regulations in enough detail to ensure you meet all the requirements.
Most of the time, you can find the applications for a property management license on the state government’s website. Reviewing the application can tell you what kind of information your state requires issuing a permit. It’s a good idea to do this before you start the process, so you know what exactly your state is going to require you to have.
Starting a new business is always a complicated endeavor. Starting a real estate property management company is no exception to this. You’ll need to make sure you meet all of the local laws regarding real estate brokers and property managers. These laws vary from state to state, so you won’t necessarily be able to trust everything you read online or rely on others’ experiences. Keeping your business up to date on regulations and licensing, to make sure everything you do is legal, should be one of your company’s top priorities.
(Read more on this article: Ascent Real Estate Management Corporation)