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I live in California and my neighbor has his own "business". A property management company. He has no RE license. He told me that he tells his clients this upfront and that if both parties are in agreement then there is no problem. He offers them a lower % to manage their properties.
The reason I ask is because I wanted to be a prop management but after researching found out that you cannot do so legally unless you have your RE license. Thus the purchasing online courses - Lumbleau real estate so that I could get my license (which I have to say is the MOST boring thing I have ever done in my life - his voice makes me want to stick my head in a microwave (too hot for an oven right now)
It is illegal to perform real estate acts without a license. He can be arrested and charged and you should do something about it. More than likely, you won't, so that's why it happens. People don't report and they go on with their lives... It takes people to report to get it to stop.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Actually, it's perfectly legal to manage your own property without a license. As soon as you take money from someone else to manage their property, you must be licensed. We have property managers that telecommute 3 days a week, it's quite common, but your neighbor could be in big trouble if someone complains and he gets reported. Most states start with a cease and refrain order, then fines, and possibly jail time depending on the number of infractions.
I live in California and my neighbor has his own "business". A property management company. He has no RE license. He told me that he tells his clients this upfront and that if both parties are in agreement then there is no problem. He offers them a lower % to manage their properties.
The reason I ask is because I wanted to be a prop management but after researching found out that you cannot do so legally unless you have your RE license. Thus the purchasing online courses - Lumbleau real estate so that I could get my license (which I have to say is the MOST boring thing I have ever done in my life - his voice makes me want to stick my head in a microwave (too hot for an oven right now)
Thanks!
Just get a license. It's not like you have to attend school for 1 year and pay lots of money to get a license.
I don't think you have to get the boring online course that you mention. There are likely in-person courses that are more interesting. And other online courses from various companies.
Just to clarify, not all states require property managers to have a real estate license. But I assume since you live in California, and you said this was a neighbor, that it is management of California properties.
If so, then if California requires PMs be licensed, then that is what you should do. If you take the chance and risk it without, you WILL have problems at some point, most likely when a tenant finds out and stops paying rent or trashes the house, knowing that you can't take them to court to evict or get a judgment, since you are running an illegal business.
Unless it's changed very recently, when family had property in California here are some of the laws.
A PM can manage even a building without a license.
He/she can work under someone who holds a real estate broker's license.
Applicants are required to document their experience or have education and training and have to take a licensing exam.
Then there's continuing ed.
By law a PM has to make sure properties meet minimum standards for health and safety and building codes, etc; deposits have to be returned in a required fashion; invoices for repairs have to be in a certain manner.
That said, when a person hires a licensed PM they know they are getting a certain quality of service bound by law. They know the PM is doing continuing ed, keeping up with codes etc.
What you could do is go the legal way, find out all you need to do, than advertise...not offensively...but something like "Toopie 28, Licensed Property Manager. We take care of it all, repairs, health, safety, building codes and you relax". Some version that makes people realize there is such a thing as a license for property management and that that can be better.
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(too hot for an oven right now
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