Starting a professional property management business can be a very exciting opportunity for someone with entrepreneurial spirit and previous real estate experience. Property management is a $76 billion industry. However, are you fully prepared to open your new venture in residential real estate brokerage? Have you gone through all the proper channels to ensure you’re legally allowed to do business where you want to do business?
Did you know that in most of the United States, you actually need a real estate license in order to become a professional property manager? Luckily, at Keyrenter, that is part of the onboarding process when starting your franchise ownership.
How Do I Become a Property Manager?
Technically, anyone with a certain attitude and skillset can become a professional property manager. Excellent communication, organization, and interpersonal skills are all very important. Sales, management, and customer service skills are also essential to operating a professional property management business, and while not always required, some prior experience with real estate (either selling, owning, managing, building, or coordinating maintenance) is very helpful.
You also need a certain level of financial capability in order to become a professional property manager. For capital investment, you’ll need $55,140 to $122,395, depending on the size of your territory and personal background. Having a credit score of 675 or higher, you should have a minimum net worth of $150,000 and at least $50,000 in liquid assets. You need to maintain a small office space, although technology and software will allow you to access certain information about your property management business from a smartphone.
Do I Need a Real Estate License?
The short answer to this question is, “more than likely, yes.” In most of the United States, you need a real estate license in order to become a professional property manager. In reality, this is for good reason: a lot of the responsibilities you will face as a property manager are similar to the tasks of a real estate agent.
There are several states where you do not need a real estate license in order to become a professional property manager, including:
- Washington D.C.
While a real estate license is not required in these states, it certainly wouldn’t hurt to have one, especially if you plan on managing properties in multiple states in the long term.
I Want to Become a Professional Property Manager in a State Not Listed Above. How Do I Go About Getting a Real Estate License?
Much like states having different licensure level requirements, the process through which one acquires a real estate license is slightly different from state to state as well. At the most basic level, you’ll likely have to pass a criminal background check, be a legal U.S. resident, take a few classes, and pass the required exam.
Be sure to check with the state real estate commission for the full residential real estate brokerage requirements in the states where you would like to operate your professional property management business. Keep in mind that just because you are licensed in one state does not automatically give you a license in another. It can also take up to 4–6 months to obtain proper real estate licensing and start your business if you’re starting from scratch.
Do you think you are ready to enter the exciting world of professional property management? Click here to request your FREE Franchise Report!