It may seem like a no-brainer to hire an individual who has gone through all the hassle of becoming licensed by the city in which they manage properties, but many people also allow unlicensed individuals to handle their property management needs. Here are some reasons why you shouldn’t permit an unlicensed individual to manage your home, even if that person has experience managing properties or claims to know how to run your rental business more effectively.
What does being licensed mean?
When it comes to property management, being licensed means that the individual has met certain requirements set forth by the state in which they practice. This usually includes completing a certain amount of coursework and passing an exam. Licensed property managers are also required to complete continuing education courses on a regular basis. A license can only be revoked if someone is convicted of fraud or another felony.
Maintaining a high level of professionalism and integrity should be your number one priority when choosing a property manager. Choosing someone who is not properly licensed could mean that you have less protections in place for you, your investment, and your tenants’ rights.
How do I find a licensed manager?
If you're looking for a property manager, it's important to make sure that they are licensed and insured. This will protect you in the event that something goes wrong. There are a few ways to check if a property manager is licensed. One way is to contact your state's department of commerce and consumer affairs division or any equivalent in your state. They will have a list of all the state-approved managers in your area. You can also ask friends or family members who live nearby for referrals; word-of-mouth recommendations from people you trust are often the best option.
Are there penalties if I don’t use a licensed real estate manager?
There are penalties if you don’t use a licensed real estate manager. If something goes wrong, you could be held liable. Additionally, your insurance may not cover any damage that occurs as a result of using an unlicensed property manager. Furthermore, you could end up losing your money if your property manager makes any unauthorized changes to your home without your knowledge or consent.
Is it required for my listing agent to be a licensed broker?
While not required, it is generally recommended that your listing agent be a licensed broker. The main reason for this is that brokers are held to a higher standard than agents when it comes to managing property. In addition, brokers are required to take continuing education courses on a regular basis, which helps them stay up-to-date on the latest laws and regulations.
How does the unlicensed person collect rent and pay my mortgage if they can’t handle my home?
Allowing an unlicensed individual to manage your property can be a huge risk. Not only are they not legally allowed to perform many of the duties required of a property manager, but they also may not have the experience or knowledge necessary to properly take care of your home. This could lead to big problems down the road, including damage to your property and difficulty collecting rent or paying your mortgage.
What are some things I should know about finding an apartment management company?
When you're looking for an apartment management company, there are a few things you should keep in mind. First, make sure that the company is licensed and insured. This will protect you in case anything goes wrong. Second, check to see if the company has any complaints against it. You can do this by searching online or contacting your local Better Business Bureau. Third, ask for references from the company and follow up with those references to make sure they're happy with the service they've received.
Can I list someone as an agent even though they aren’t licensed?
It is against the law in most states for an unlicensed person to perform property management duties, even if they are working under the supervision of a licensed agent. The risks to tenants and landlords can be significant as properties may not be well maintained or managed, tenants may not be screened properly, and leases may not be handled appropriately. If a dispute arises between the tenant and landlord, it will likely take longer and cost more to resolve because neither party has legal representation or knowledge of how to pursue the matter. A lot of these potential problems can be avoided by only hiring a property manager who is licensed by their state.
Comments