Alternative to property management companies, hire in house?

General Landlording & Rental Properties
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Alternative to property management companies, hire in house?

Michael P. Zembower Jr.
Rental Property Investor · Youngstown, OH · Member since 2018 · 6 posts · 8 votes

In Ohio it seems to be law that a property management company be under a broker or real estate license. I own 10 properties and know a person close to the community that can rent my units faster and keep a stronger relationship with my tenants and their needs. Can I hire this person and simply pay them a small portion of rent monthly and let them show my units when they’re vacant without them needing to be a property management company with all the requirements stated by Ohio law for property management companies?

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y

You'll have to read the state law. In many states, an employee of the property owner is authorized to manage on behalf of the owner without a license.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    You'll have to read the state law. In many states, an employee of the property owner is authorized to manage on behalf of the owner without a license.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    1Reply
  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    7y
    % of the rents sounds like a PM fee and not an employee. I think they have to be a W-2 employee and not 1099 commission to avoid this rule.
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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y

    The license requirement usually comes into play when a PM places or removes tenants, holds security deposits and orders work up to a certain $ amount autonomously, signs leases for you, etc as your agent or rep.

    To aid keeping them appearing to be or acting as a PM, avoid compensating as a % of rents or anything that looks like a commission.

    I have an onsite guy that does stuff for me, but he doesn't earn % or take applications or holding deposits. Avoid the big 4 duties above that an actual PM does and hire who you need to. 

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