Real Estate Agent - new to long term property management

[Kerri Tomasicyk]

Hello!

New to Bigger Pockets, I am a real estate agent located in Panama City Beach, FL. I have had success in my first year and a half of real estate, but was recently asked to manage a long term rental for one of my investor clients, and then was asked by my broker if I wanted to set up a "division" off of our brokerage. I am just getting started setting this up and have several questions. 

1. Set up as my own LLC or run under the brokerage? I would like to protect as this will be my side gig business.

2. If under the brokerage, do you use their E&O insurance or get your own? Any other insurance I should have?

3. What percentage do you pay brokerage for commission or do you recommend referral fee?  Broker will not be part of managing, but will most likely send referrals. 

4. Do you set up your own non bearing interest account to hold security deposits?

5. Favorite place to set up customized lease. 

6. Set up as a straight LLC or S-Corp?

Thank you!

I have more questions, but will start with these. Appreciate any advice I can get!

[Michael Smythe]

@Kerri Tomasicyk check your state laws, but believe Florida requires a PMC to have a brokers license.

1) So, you will need your broker to setup any separate division.

2) Your brokers E&O policy may need to be revised to cover your PM functions.

3) Negotiate the best split you can!

4) Typically a separate account is required for SDs, check with state requirements about interest-bearing.

5) Get as many competitor leases AND management contracts to cut & paster your own. Then have real estate attorney review.

6) See #1.