Sales Associate/Broker Relationship for Short Term Rental Manage

[John McCormack]

I come to the all-knowing massively experienced forum members for their help and guidance once again! I'm on a fact finding mission to determine the best way to start a new company for short term rentals and trying to determine the best practices to do so.

What is known thus far:

- I have to have a RE license in order to manage properties for third parties when accepting commissions for bookings. I have obtained license and in search of broker to hang license.

- I have to work under a broker for 2 years before I can apply for my brokers license in state of FL

- I have to split my commission profit with broker and all funds/payments must be made out directly to the broker

- the percentage commission I negotiate with property owners is my decision

Determine best path to form Vacation Rental Property Management company being aware of my new status a sales associate

- can I start my own business entity to establish and brand my VR management company now, or would/should I just wait the 2 years, get brokers license and then do so. Concerns: time wasted building future company and not having the company name/business/brand out there first. In FL, I believe RE sales associate can form business entities for tax purposes but it must specifically be the name of the person such as: John Smith, LLC. I do not want to brand the business with this name

- type of business entity to form?

- amount and types of insurance to carry? E&O, separate commercial liability?

Any suggestions for approaching RE brokers who might be interested in forming a relationship based upon our future VR Managment business

- after working under broker for 2 years and then deciding to part ways what is the best way to retain properties brought on by myself. Is this and up-front individual conversation with each broker during interview process to find out more?

- again, spending 2 years building up a rental portfolio which we anticipate to have healthy returns and under the banner of the broker, how would one part ways amicably.

Future Goals

- not necessarily to bring on as many properties as possible. We value quality over quantity and working with owners/investors who “get it” and are open to our input and control in order to help them succeed as we are VR owners/operators ourselves.

- residential sales/buyers agent for out of state visitors who may transition into snowbirds and/or 2nd home investment properties

We’ve already spoken to attorneys and it seems we have “very good questions”. Some research has already been put into this but we wanted to get a sounding boards from others who may have already gone down this path. We value everyone’s input no matter how small or large and being a part of this community! Thanks much for any help you can provide and we look forward to your answers!