Setting up a New Property Management company in Columbus Ohio

[Philip Cutting]

Hi guys,

I run a management company for my own properties.  But as my portfolio is getting larger I'm looking to take that part of my business more seriously.  My long term goal is to have 1000's of unit's anyways, so I need to eventually get that set up.  

My understanding is that to have a property management company in Ohio that services properties that you do not have ownership interest in, you have to be a Real Estate Broker.  

Question 1) If you are subletting properties, ie, you have a lease that lets you re rent out properties, do you have to be a broker?

Question 2) Can you run a property management company as a RE Sales agent?

Question 3) Can a company hire a broker to satisfy the requirement?  If so, how involved does the broker have to be? I understand a broker can probably only work for one company and not work for his own brokerage and a property management company as the broker of record?  What would reasonable compensation for a broker be?

Question 4[this probably requires a separate question]) How to really set yourself ahead of others in the area?  What systems/software would be good to use and how to build market share?

Thanks

Phil

[Darrin Carey]

@Philip Cutting 

Here are some short and simple answers. Some of these have been said, but I will consolidate them here.

• You must be a licensed Agent or Broker to manage someone else's property.
• A Broker can only hang their license with one company. 
• An Agent can only operate under one Broker.
• An Agent can do Property Management if the Broker/Company allows it, and is set up correctly for it.
• You do not have to be a Broker to own a Real Estate Agency or Property Management Company. A Broker must oversee all licensed activity. The owner is responsible for business activity, and must be very careful not to act as a Broker if they are not a Broker.
• An assistant can help, but there are limits. See this article from the Ohio Division of Real Estate for specifics. http://www.com.ohio.gov/documents/real_2008Summer....
• If you have a Master Lease with the right to sublease on a property, you can sublet the units without being an Agent of Broker. Be careful, depending on the details, this could go either way. That's a whole different discussion.
• Both Buildium and Appfolio are good.
• A local Property Manager went from 20 to almost 200 units in about 2 years, with almost zero advertising. Almost all referrals.

Hope that helps. Good Fortune.