Property Mgmt Laws in CA - managing other peoples' rentals

[Justin R.]

Hellllooo BP Nation!

One of the interesting side effects of (successfully) owning and self-managing a bunch of your own local rental units is that friends and family may ask you to manage theirs.  Has anyone (who isn't a professional and licensed property manager) agreed to do this for a family member?  

In CA, one must have a license to perform the activities of property management UNLESS (https://www.kts-law.com/property-management-compan...)...

(A) The activity is done without compensation or

(B) The property is owned by the person doing the management

So, if your family member is willing to grant you an equity interest in the property, would you feel comfortable that you're managing within the law?  50% stake?  10%?  5%?  1%?

I realize this is a lawyer question, but wondering how others have approached this situation.  TIA!

@Dan H.@Casey Murray@Katie L. come to mind as people who may have experience with this.

[Katie L.]

@Justin R.

Can’t say I’ve had to deal with it personally but gifting or selling a part of a property comes with several implications: how to take title, right of lender to call the loan, right to partition, gift tax, property tax reassessment, capital gains, etc.

Also, I’m not sure how accurate that link you attached is with regard to the current law but your 2 bullet summary above seems to leave out some other options. You might want to look into the power of attorney option they have listed there. I’m not sure if that’s a valid option so do not take any of this as advice but seems that would be a simple fix to your question.

*none of this post is intended to be legal or professional advice and does not create an attorney-client or cpa-client relationship. Readers are advised to seek professional advice.