Hey guys,
I'm new to the real estate realm (only licensed since 11-2010), and I want to get some cash flow going. I thought of property management but my brokerage/company is moving to 'if you do property management, that's all you do' (no listings or sales) - I don't want to limit myself in that fashion, so I thought of doing BPO's.
I have questions though:
What are the requirements to do them? Just be a licensed agent?
Do they pay me directly or my broker? (I'm pretty sure it has to be my broker, right?)
So if my broker is paid initially for it, I have to split it then, right?
Does my broker have to allow me to do them, or is it up to me?
Are companies even going to allow me to do them because I'm such a new agent?
I have done the pictures for them, interior and exterior, for another agent in my office - so I'm not totally new to the idea.
Any advise? Any companies that you recommend or don't recommend? Any help would be appreciated!
Thanks
James Roy
Realtor - Florida
RealtorJames - welcome to our forum.
If you are referring to managing an apartment complex and collecting monthly rental income, In Florida, a BROKER may do property management for developments of up to 50 rental units with just a Broker license.
If the development has more units, then a Florida CAM License is required. An sales agent can also qualify for a CAM license by attending an passing a 3 day course.
The Broker must make the contract with the complex, BUT may install any sales agent they wish to do the actual management.
The Broker must set up 2 escrow accounts - one for rental income, and a second for managemnt expenses, and it must be balanced at all times and is subject to audit.
You may NOT accept any fees directly - they must all be paid to your BROKER, and the Broker will pay you whatever percentage of that which you have both agreed upon.
If you are referring to simply managing vacant properties which are pending foreclosure or are for sale, the rules are still pretty much the same. You may not do any work beyond what your BROKER allows you to do, and the payments for services must still be sent thru your broker, regardless of the fact that you are doing all the work.
You should sit down and negotiate this with your Broker. If you feel he or she is not reasonable, you have a wide variety of choices of moving your license to a Brokerage that charges you a flat monthly fee and allows you to keep 90-100% of your commissions. For rental units you would then be advised to obtain a CAM license, but in the long run, if you are new at this, I would suggest moving slowly and gaining some experience before setting out on your own. But in any case, GOOD LUCK, and WELCOME to our forum!
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