I am not a real estate agent but my relatives and friends bought some properties in Texas and ask me to set up a managment company to managed the properties for them.They pay me 5-8% collections and I will billed them all repairs cost.
Question: Can I set up a mangement company in Texas and be the property manager even though I do not have a texas real estate license?
Must I seek realtor help when finding tenants or can I do it myself without realtor help?
I will not be living or stationed in the few samll complex I plan to manage through my new LLC managemnt company.
You may want to call the Landlord-Tenant Council to make sure, but I believe you have to be licensed to run a full-fledged property management company for another person. Otherwise, you can’t lease the properties or represent the owner in some of the capacities as a property manager.
It all depends on what the property manager is doing for the property owner. Collecting rent and seeing to the upkeep of the property do not require a real estate license. If the duties include showing or leasing the property for the owner for which the manager gets paid, a license would be required. See Rule 535.13(b).
I have a property management company. May I have some of my unlicensed employees solicit business for me?
No. Rule 535.13(c) states that rental agents soliciting prospects by telephone must be licensed.
I will be holding the security deposit for an owner whose property I am managing. In
what type of account should these security deposits be placed?
You are prohibited from commingling these funds with your own funds. The funds should be deposited in a trust or an escrow account where other funds from the managed property or properties are kept. The security deposits can also be deposited in an account separate from the trust or escrow account, but this is not a requirement. [Rule 535.159(g)]
Can a salesperson be the owner of a property management company?
Yes. A salesperson may own the firm but the business must be conducted through the salesperson’s sponsoring broker.
Once you get the legal details figured out I would cut a deal with the family and ask them if you can keep all of the late payment money. Tell them you will make all their payments to them on time but any late payments you get to keep. I have heard of people doing this and making a great income solely off of colloecting the late payments!