Real Estate license for property management entity in PA

[Tatyana M.]

hello BP!

i realize this topic has been discussed before but i have a little twist on this question.

according to PA law one does not need a re license to manage own properties. what if i create an LLC that will manage properties that i and my holding LLCs own (and ONLY those properties)? in other words, a management company (myself as the owner) managing properties that i own or have majority interest in. would a real estate license be required for the management company? Real Estate Commission was not able to answer this question :) thank you!

[Chris K.]

@Tatyana M.

As a practical matter, you might be okay. But I'm not sure what exactly the benefits would be. For example, it's unclear whether you would have additional liability protection if you handle you act as your own property manager. This is because Pennsylvania law recognizes something called participation liability/theory. It basically stands for the proposition that if you --- as an LLC member --- personally do something wrong, you can be personally held liable even if you do it on behalf of the LLC.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.