How to Begin Managing Property Professionally

[Michael Miller]

I am aiming to establish a property management firm in 2016-17 after I have obtained adequate experience.  However, I feel a bit confused about the difference between legal requirements and actual industry practices. 

I am currently employed as a leasing agent for a few-hundred unit student housing community, and despite performing many property management functions, this doesn't require any specific licensing.  I learned that I must have a brokers license to practice as a property manager in most states (links: 1, 2).  Is this true, or are there exceptions and industry practices contrary to this?  My confusion can be further illustrated by this example: I have met property managers here in my hometown who practice without licensing and manage hundreds of units.

As much as I'm willing to do the work required to achieve my goal, if there is a way to avoid having to get my sales/provisional real estate license, then practice under a broker for two years before finally becoming a legal property manager, then I would like to take the more expedient route.

I appreciate everyone's time.

[Franklin Spees]

One thing you might consider to get started would be to co-venture with a licensed broker colleague who is a very successful sales agent or someone who has no interest in managing property.  Build your business under them as a salesperson license, gain two years experience, splitting profits generously, then break off when you obtain your brokers license.  The keys to this strategy would be to find the right broker & and begin with a great real estate attorney to draft and organize an agreement between you to define the relationship, duties, responsibilities, profit split, liability, and a predetermined exit strategy.  If you do it right, the broker should be in the background only and your transition should be seamless when you branch out independently.  Best of luck.