Am I allowed to do this?

[Kath Russell]

It's been so long since I've been on here I seriously had to think how to post a new thread..........

Hello! I need your help please.

I'm in QLD and may be given the opportunity to manage the administration (no going inside properties) of some 40+ residential and possibly some commercial properties for someone I'm a customer to. This has just come up and have a meeting with them tomorrow.

Should I go into this meeting and state we're not allowed to do it as we need to be licensed, or as it's only the administration, is this allowed?

We will obviously get legal advice before we go ahead with anything. Just wanted to know if anyone can give me a heads up. I don't want to rely on my internet research. Yes, we will charge management fees, but is there a fine line with this. Or, flat out, I'm not allowed to do it??

Cheers

 

[Terryw]

You would need to be licenced to collect rent and manage properties. Maybe you could come under the licence of the agent that wants you to administer it.

 

[Scott No Mates]

Is this person/company the owner of the properties or are they an agent?

If they are the owner, then there is no requirement for anyone that they employ to be licensed or hold a certificate of registration. If they on the other hand manage those properties on behalf of someone else or in a JV, then there would be a requirement to act in the capacity of agent and you may need to hold a cert of registration.

If you are not actively involved in the leasing/dealing with tenants then there may not be a requirement eg as accountant.

The key to the answer will be the ownership of the properties.

 

[Kath Russell]

Thanks very much for your replies.

The properties are owned by a company (we're dealing with the sole Director). She's taking the properties off a licensed PM / RE office.

She's also had advice if she employs someone as a PAYG employee, they can do everything for her. But, she was also advised, if going into the property on her behalf, they need to at least sit the first module of a PM's course.

Still looking into it to see if it's even viable to take on amongst other business.

Cheers

 

[Scott No Mates]

Hi Kath, it is probably not the case (but laws do vary between states). I'd suggest contacting the Office of Fair Trading and speak to their licensing team. The main reasons for the exemption is that the owner is self-managing & that you would be working for him, you do not have access to the funds as the rent goes directly to the owner/bank, you are only administering the portfolio. Worst case scenario, if you were doing the leasing, you are still working for the owner who does not require a licence to self-manage.

If you were to act as his agent ie to replace the current managing agent, run a approved statutory trust fund etc, then you would need to hold a full licence not just the first few modules.