Starting a property management company is a great way to make a living. You’ll need, however, to obtain the proper licenses and permits. In this article, we’ll outline what licenses you’ll need and how to get them.
Licenses You May Need For Your Property Management Company
The exact license you need for your property management company will vary based on your state and local regulations. However, there are a few licenses that are generally required.
Business License: This is the most basic license you’ll need. It gives you permission to operate your business in your state.
Property Management License: In order to manage properties, you’ll need to obtain a property management license. The requirements for this license vary from state to state, but they generally involve taking a test and/or completing a course.
Real Estate Broker’s License: If you want to manage properties on behalf of other people, you’ll need to obtain a real estate broker’s license. This allows you to act as an intermediary between property owners and tenants.
Real Estate Salesperson License: If you’re working for a real estate broker, you’ll need to obtain a real estate salesperson license. This allows you to show properties and sign leases on behalf of the broker.
However, keep in mind that every state has different requirements for licensing. Be sure to check with your state’s Real Estate Commission to find out what licenses you’ll need in order to operate legally.
How To Get Each License
Now that you know which licenses you’ll need, let’s take a look at how to get them.
Business License
The first license you’ll need is a business license. This can be obtained through your state’s secretary of state office. You’ll need to fill out an application and pay a fee. Though the fee varies, the average cost is around $100. Once you have your business license, you’ll be able to operate your business legally.
Property Management License
The next license you’ll need is a property management license. The requirements for this license vary from state to state, but they generally involve taking a test and/or completing a course. The course typically takes around 40 hours to complete, and the test is usually multiple-choice. It costs about $100 to take the course and $75 to take the test.
Once you’ve met the requirements, you’ll need to submit an application to your state’s Real Estate Commission. Once you’re licensed, you’ll be able to manage properties in your state.
Real Estate Broker’s License
If you want to manage properties on behalf of other people, you’ll need to obtain a real estate broker’s license. The requirements for this license vary from state to state, but they generally involve taking a test and/or completing a course. The course typically takes around 40 hours to complete, and the test is usually multiple-choice. Depending on your state, costs range from $500-$1,500 to take the educational course and the test.
Once you’ve met the requirements, you’ll need to submit an application to your state’s Real Estate Commission. Once you’re licensed, you’ll be able to broker deals between property owners and tenants.
Real Estate Salesperson License
If you’re working for a real estate broker, you’ll need to obtain a real estate salesperson license. The requirements for this license vary from state to state, but they generally involve taking a test and/or completing a course. The course typically takes around 40 hours to complete, and the test is usually multiple-choice. It costs about $100 to take the course and $75 to take the test.
Once you’ve met the requirements, you’ll need to submit an application to your state’s Real Estate Commission. Once you’re licensed, you’ll be able to show properties and sign leases on behalf of the broker.
Conclusion
Starting a property management company is a great way to make a living. But in order to do so, you’ll need to obtain the proper licenses and permits. In this article, we’ve outlined what licenses you’ll need and how to get them. Be sure to check with your state’s Real Estate Commission to find out what specific requirements you’ll need to meet in order to operate legally. With the proper licenses in hand, you’ll be on your way to starting a successful property management company.
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