Property managers – pay close attention! In most states you need a real estate broker’s license to do property management. I don’t want to state the obvious, but I’m sometimes surprised by the companies out there who claim they don’t need a license. This doesn’t mean you can “borrow” a friend’s license number. I was an active attorney for a while. I couldn’t borrow another attorney’s license to practice law – and it’s the same for property managers.
If your state requires property managers to have a broker’s license, it generally means the owner of the property management company has to have a broker’s license in THEIR name, OR that the broker’s license is issued to the company itself!!! Sure, there are some states that don’t have this requirement but there really aren’t many. To check, contact your state real estate commission (google your state name and then “real estate commission”), and ask. I’ve found these folks to be very friendly and helpful – they don’t want to issue citations – they want to HELP people comply!
It makes sense to have the broker’s license in the owners or companies name, AND it’s good business. All states now offer license checks online – and if you don’t have a license in your name or your company’s name, potential clients will not find you in the database if they’re trying to verify you’re properly licensed. And remember, these laws are there to protect the public – and if you can’t get the proper licensing, why should people trust their property with you?
And, remember, if you’re looking for a property management company, ALWAYS check that the company you want to go with is properly licensed by checking with your state real estate commission, either online, or by picking up the phone. Even if you see a company on this website – Check Their Licensing directly with the state real estate commission. Other information you can find is whether or not there have been any complaints filed against the company, in addition to whether or not they have a license.