Property Management - Posted by dave

Posted by Nancy in NC on April 03, 1999 at 19:35:42:

The caretaker aspect sounds good.

Property Management - Posted by dave

Posted by dave on April 03, 1999 at 16:02:15:

Anyone out there familiar with the legalities of property management? I am in the process of purchasing 4 townhomes that rent primarily to college students. The units are currently managed by a relative of the seller and is also working as an employee of the seller.

It is my desire to keep the current property manager in place once I take the properties over. However, this individual does not have a real estate license and does not know if it would be legal to manage the properties for me.

Does anyone know if a license is needed to manage a property for someone else? If so, is there some way around it legally? I would really like to make this work somehow so I am open to any suggestions. Thankyou.

Re: Property Management - Posted by JPiper

Posted by JPiper on April 03, 1999 at 20:34:47:

Dave:

In the states in which I was licensed in the past, there were certain exemptions to the licensing act. One of those exemptions was for an employee of your company if your company owned the property.

My suggestion would be to take a look at your state licensing law as to it’s exemptions. If I were a betting man I would bet that exemption will exist in some form in your state. However, don’t bet on it…check it out.

JPiper

Re: Property Management - Posted by Nancy in NC

Posted by Nancy in NC on April 03, 1999 at 19:33:50:

In North Carolina you have to have a license to manager for someone else. However he could lease the properties from you and then manage them. Sort of defeats the purpose doesn’t.

I do my own property management, so only have limited advice. Even when you hire a property manager YOU must manage the manager. In other words, make sure they are inspecting the property, doing regular maintenance checks, and looking for “reasonable prices” on repair work etc. Also be aware that renting to college students means more wear and tear on carpets, paint etc. Make sure you have regular pest control.

College students don’t always take the trash out. You should have seen my daughter’s place. Especially if it rained that week.

Re: Property Management - Posted by Den

Posted by Den on April 03, 1999 at 19:31:47:

Glad to see some one else in the student rental business I have been in it for 10 years. Have him be your caretake and you manage the property he can do maintainence, cleaning and answering the phone in the middle of the night ( more than likely that is what he is doing now)he would not be able to sign leases or nego. rents. I would advise you to hire a Property Management Co, if you don’t want to management the property yourself, remember there is a difference between manager and caretake. If I can help you with any questions please e-mail me

Re: Property Management - Posted by Rob FL

Posted by Rob FL on April 03, 1999 at 19:07:23:

Your state laws may differ, but I can only think of two ways.

  1. Make him a part owner/contract for deed/lease option. Something like that.

Or 2) Don’t pay him.

Re: Property Management - Posted by PBoone

Posted by PBoone on April 03, 1999 at 17:37:34:

It depends on your state laws. In Oregon you must be licensed to manage property for another person, This license is different from an agents requirements. Call your local Board of Realtors.
Pat

Re: Property Management - Posted by dave

Posted by dave on April 03, 1999 at 20:55:12:

I like this idea of hiring an employee to manage the properties. This is what the current owner has done. However, the manager is a relative of the current owner. Hopefully, this should not make a difference. I will check into this some more. Thanks
Dave

Re: Property Management - Posted by Another Nancy(NC)

Posted by Another Nancy(NC) on April 04, 1999 at 21:41:24:

Hi Nancy:

I had thought you could hire an employee to manage your own properties and they would not have to have a real estate license in NC.

Nancy(NC)