Starting PM Company In New York State
Investor · Long Island, NY · Member since 2019 · 50 posts · 22 votes
I currently manage some of my out of state rentals, but would like to create my own property management business locally in New York (Long Island).
I am a licensed RE salesperson in New York, but I am wondering about the requirements to start a PM company. Based on what I am seeing on the Department of State website, in order to do this I'll need to be a licensed broker. Are there any New York PM company owners here that could weigh in on the requirements?
If the answer is that I need to become a licensed broker before I can start the company, does anyone know about the broker points scoring system? I only recently became licensed, so I would have a long way to go in order to comply with the 2-year experience requirement, but I have been an active investor for 5 years so I am wondering if I would fall within the 3 year exemption, below:
Thanks in advance!
Hey Dan,
I recently launched my own property management company in Nashville, TN, and my biggest hurdle was finding a broker. You’ll want to focus on either finding a broker who’s okay with you doing property management or getting your own broker license. I'm not sure what the state specific rules are in New York. Are you going the franchise or independent route?
I currently manage some of my out of state rentals, but would like to create my own property management business locally in New York (Long Island).
I am a licensed RE salesperson in New York, but I am wondering about the requirements to start a PM company. Based on what I am seeing on the Department of State website, in order to do this I'll need to be a licensed broker. Are there any New York PM company owners here that could weigh in on the requirements?
If the answer is that I need to become a licensed broker before I can start the company, does anyone know about the broker points scoring system? I only recently became licensed, so I would have a long way to go in order to comply with the 2-year experience requirement, but I have been an active investor for 5 years so I am wondering if I would fall within the 3 year exemption, below:
Thanks in advance!
There's no way around it unless you specifically work for one person only. Seeing how you want to work for multiple people, a brokerage licence is required. I tried when I was an agent. If you have the experience then you should become a broker and go for it. Then sell on the side, extra pipeline for revenue.
I currently manage some of my out of state rentals, but would like to create my own property management business locally in New York (Long Island).
I am a licensed RE salesperson in New York, but I am wondering about the requirements to start a PM company. Based on what I am seeing on the Department of State website, in order to do this I'll need to be a licensed broker. Are there any New York PM company owners here that could weigh in on the requirements?
If the answer is that I need to become a licensed broker before I can start the company, does anyone know about the broker points scoring system? I only recently became licensed, so I would have a long way to go in order to comply with the 2-year experience requirement, but I have been an active investor for 5 years so I am wondering if I would fall within the 3 year exemption, below:
Thanks in advance!
There's no way around it unless you specifically work for one person only. Seeing how you want to work for multiple people, a brokerage licence is required. I tried when I was an agent. If you have the experience then you should become a broker and go for it. Then sell on the side, extra pipeline for revenue.
Just curious, did you ever look into starting it under the umbrella of your sponsoring brokerage, but create it as a DBA? For ex: Sponsoring Brokerage Realty DBA Dan's Property Management Company. And it would be marketed/operated on a client-facing basis as Dan's Property Management?
I plan to speak to my broker and it's probably a question for their lawyers, just wanting to check all my options before I choose a route
Hey Dan,
I recently launched my own property management company in Nashville, TN, and my biggest hurdle was finding a broker. You’ll want to focus on either finding a broker who’s okay with you doing property management or getting your own broker license. I'm not sure what the state specific rules are in New York. Are you going the franchise or independent route?
Good info Andrew! Just curious, did you start the company under the brokerage's name, or your own? If the latter, how does that look on a day to day in terms of operating, marketing, and the ownership structure? Thanks in advance!
Tennessee probably works a little different than New York. I started my company in my name or more accurately my firms name, but it is affiliated with a broker. In most states, you'll have to be a licensed realtor for at least 2-3 years until you can become your own broker.
Marketing - I'm using an all of the above approach. Everything from pay per click, to networking (I've found BNI groups to be a great resource), to cold calling. There's always a trade off of time and dollars.
Ownership Structure - I found the LLC to be the best way to go for me.
Operating - It's just me, but I did decide to go the franchise route. I'm able to do this with the support from their corporate office and systems they have to ensure smooth operations.
Appreciate all that! I will DM you to connect