Obtain A Property Management License, Permit Insurance

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This is the overview of our topic:

  1. Real Estate Industry Overview
  2. Market and feasibility study
  3. Property management business plan
  4. Property management marketing plan
  5. Property Management Company Name Ideas
  6. Property management licenses and permits
  7. Cost of starting a property management company
  8. Real Estate Management Firm Marketing Ideas

We will consider what it takes to obtain an operating license and permit for your property management business, including insurance coverage and intellectual property protection.

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Obtaining A Property Management License, Permit Insurance

  • The Best Legal Entity To Use In A Real Estate Management Business

When it comes to choosing the legal entity and business framework to use in the Property Management Company, choosing a limited liability company; An LLC is your best bet.

With Limited Liability Company, you can limit business risk only to the business not to your personal property.

In such a situation, only the money you invested in the limited liability company will be at risk.

Limited liability companies are simpler and more flexible to operate and you do not need a board of directors, shareholder meetings and other administrative formalities to prevent you from carrying out your business responsibilities.

Well, if you want to start a property management company on a small scale and perhaps from your home and just to cover a smaller neighborhood, then choosing a sole proprietorship is your best legal entity.

Do I Need A Professional Certification/License To Start A Property Management Company?

In the United States, states like Texas, New York, and Colorado it is mandatory for property management companies to be licensed and certified real estate brokers if they are to be involved in rent collection and listing rental properties.

Or if they are involved in assisting negotiating leases and making inspections as required by your business. Although a property manager may be a licensed real estate seller but generally must be working with a licensed real estate agent.

Some states, such as Idaho, Maine, and Vermont, do not require property managers to own real estate licenses. Other states, such as Montana, Oregon, and South Carolina, allow property managers to work under a property management license instead of a broker’s license.

Washington state requires property managers to have a real estate license from the state if they do not own the property.

These are some of the basic legal documents that you are expected to have in place if you wish to manage your own property management company in the United States of America.

  • Certificate of incorporation
  • Commercial license
  • Real Estate License/Real Estate Agent License
  • Business plan
  • Confidentiality agreement
  • Employment agreement (offer letters)
  • Operating agreement for LLCs
  • Insurance policy

Insurance Policies For A Property Management Business

If your intention to start a property management company is to operate a small-scale business, then you can do two or more different insurance coverages.

The other way; If you are operating a Limited Liability Company and you intend to hire workers to work for you, then you must ensure that you have basic insurance coverage for your property management company.

Here are some of the basic insurance coverages you should consider buying if you want to start your own property management business in the United States of America.

  • General insurance
  • Health insurance
  • Liability insurance
  • Workers compensation
  • Disability insurance for general expenses
  • Business Owner Policy Group Insurance

Intellectual Property Protection For A Property Management Business

To be sure, there are several companies that you cannot operate without first ensuring that you secure intellectual property protection for your works.

Also, there are some companies that can operate successfully without ensuring intellectual property protection, and of course the property management business is one of those businesses.

There is no need to bother applying for intellectual property protection for your property management company, as you will be involved in service delivery (property management for your clients).

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