Owner-Occupied: Multiunit Property Management (Licenses??)

[Keeya WangJones]

Hey BP Community!

As I venture into rental property management, I have a few questions:

• 1.) Owner-Occupied Property in Texas: Will I need a property management license if I owner-occupy the property in San Antonio, Texas?
• 2.) Broker Requirement: It seems like becoming a broker may be necessary to obtain a property management license. Is this accurate?
• 3.) Revenue During License Process: I'm eager to get licensed but don't want to lose revenue while awaiting completion. Any advice on navigating this effectively?
• 4.) Operating in Multiple States: If I expand to multiple states, do I need separate property management licenses, or can I operate under one license across multiple locations?
• 5.) Specific Business License: If I create an LLC specifically for the property management side of things, can I obtain a specific business license for this?
  6.) Do I need both a property management license and a business license?
• 7.) Tax Considerations: What taxes should I be aware of for property management services, even if the properties are mine?

I appreciate your guidance and insights on these matters.
Thank you for your help!

Best regards,
Keeya

[Patrick Pendley]

I am in Texas and all of these answers are based on Texas.

1) you do not need a License to do PM if you Own the property. Weather you live in it or not. If you are doing management for others (Third-party Property Management) you need a Real Estate License, and your Broker has to maintain the trust account and allow you to do Property Management. 

2) You don't have to be a Broker to do PM. But you need to be licensed, and have a Broker Sponsor you or be a Broker yourself. In either case the Trust account needs to be maintained in the Broker's name

3) Not sure how to answer this. what revenue? Are you currently managing property?

4) each state has different rules, it will be a state by state answer.

5) if you are operating the OM company as an LLC, then the LLC needs a designated Broker and the Trust account is maintained in the Brokers name.

6) In Texas there isn't a P<m specific license, it is governed under the RE License. I am not aware of a business license in Texas. 

7) Consult a CPA. I recommend Badger and Badger in San Antonio.