Dear Patty - Property Management Startups
Wednesday, June 1, 2011
Dear Patty the Property Manager,
I am interested in offering property management services to my clients and would like to start my own property management company. Do I need to be a broker in order to start my own property management company? If it is acceptable to hold only a salesperson’s license, may I offer property management services in Orlando and work for a broker whose office is in Tampa?
--Exploring My Options
Chapter 475 of the Florida Statues clearly states that when an individual leases, sells, or in any way provides a service of real estate on behalf of another and for compensation, they must hold a valid and active Florida license as a real estate broker and/or brokerage entity registered with the DBPR.
If you intend to lease and manage property that is owned by others you must either be a broker or be employed by a property management company or by a broker who offers property management. Make sure your broker is aware that you want to offer these services. Not every broker is willing to accept the additional risk (their E & O Insurance may not cover property management) or to take on the additional bookkeeping required to maintain security deposit accounts, collect rents, pay owners and to provide monthly statements. These are services that only a broker can oversee.
If you decide that you want to place your license with a broker whose principle office is in Tampa and your intent is to manage properties in and around Orlando, it is the public perception that you represent an office of the broker. It is the purpose of regulation to always protect the health, safety and welfare, of the general public. Therefore, when you conduct business in an office or any location other than that of the principal office, the broker must register an Orlando branch office.
"Patty the Property Manager” appears courtesy of the ORRA Property Management Subcommittee. Readers are invited to submit property management related questions to Patty by sending an e-mail to firstname.lastname@example.org.