Property management licence

[Pablo]

Hi,

I have the opertunity to undergo some subsidised training through work. Since I privately manage my IP's one of the courses I was considering is Property managment. If I do this and gain a licence how will it effect me with regards to privately managing my own properties? I think I have read before that it does effect it in some way.

 

[Pablo]

Anyone????

 

[Burbs]

Hi Pablo.
Well I am all for taking advantage of subsidised training, why not do it in an area of interest?
Will it benefit you? Not much if my own experience is any guide.
Years ago as a budding young property investor, I wanted to learn how to do things properly so I did the property management course. I learnt a lot about rules and regulations, particularly with regards to the agent-owner relationship; BUT ALMOST NOTHING ABOUT NUTS AND BOLTS PROPERTY MANAGEMENT. About the only useful part of the course was the detail on the different termination notices.
What I should have done next was found a friendly local real estate agent and obtained some unpaid work there, to put the theory into practice, and obtain a property management licence.
Anyway, years later I find myself working in property management; and employing property managers. I have employed several people who have completed the course, but have not worked as a property manager or indeed in real estate previously. These are mature adults with substantial work experience. THEY HAD NO IDEA WHAT TO DO. One lasted three weeks, his departing sentiment being that property managers were heartless *******s; and the other lasted two months, and she was going visibly greyer by the day. The staff that last in property management are those that have no previous experience but start in an entry position, and get trained in my systems and procedures from the ground up; while simultaneously completing their formal qualification.
Hope that is of some help.

 

[Pablo]

Thanks Burbs,

So just doing the course doesn't give you a licence? You have to also work in the field?

 

[Burbs]

I am only speaking for WA law, however I imagine it is similar in other states. Doing the course merely completes the education requirements for obtaining registration as a property manager; which allows you to work for someone else who holds a real estate agents license. You will not be able to hold yourself out as a property manager of your own properties unless you also have a real estate agents license. Which is much more difficult to get than simply completing a short course.
Burbs

 

[traveller]

But surely Pablo can self manage the properties without any course or license.

Do we need any license to self manage our own IP's or on someone behalf like family member?

 

[boods99]

But surely Pablo can self manage the properties without any course or license.

Do we need any license to self manage our own IP's or on someone behalf like family member?

In a nutshell, you need to have an equity stake in the property to be able to manage it without holding a real estate license.

Boods

 

[Burbs]

But surely Pablo can self manage the properties without any course or license.

Do we need any license to self manage our own IP's or on someone behalf like family member?

Yes there is no license required to manage your own IP's; however you will need one to manage a property you do not personally own. Although I imagine a breach of the law for a single property of a close relative would not be vigorously pursued by the authorities.

What I was referring to in my previous post was a desire to hold oneself out to tenants as a property manager for a real estate agency. If you want to do this in any substantial way, you will need a license.

 

[Xenia]

You need a real estate license and a trust account to manage anyone's properties that are not your own even family members.

Section 4 of the real estate act... Fines are heavy in SA, $20,000 for any money recieved for each real estate transaction (sale, purchase or management) conducted without a license.

And yes that includes "spotters fees" on real esate deals.

To this date I have never met a self manager who has done it correctly. Usually rents are under rented, wrong contracts are used (OCBA leases are not investor friendly at all!!!), bonds are lodged incorrectly etc...

Infact when we bring properties into our agency from a self managing landlord they are in complete shambles and there is a lot of cleaning up to do before they are "legal" and current.

I challenge any self managing landlord to send in their, leases, condition reports, quarterly inspection reports, bond forms, tenant ledgers etc... I would like to see one (just one) that matches the quality of a professional real estate agency!!!

Maybe we could have a contest between professional property managers and self managing landlords? Up for the challenge?

 

[Xenia]

Oh by the way, agencies with a focus on sales are not any better off than self managing landlords (shambles), agencies with a focus on just property management tend to be more on the ball.

 

[wylie]

To this date I have never met a self manager who has done it correctly. Usually rents are under rented, wrong contracts are used (OCBA leases are not investor friendly at all!!!), bonds are lodged incorrectly etc...

You just haven't met me yet Xenia.

Infact when we bring properties into our agency from a self managing landlord they are in complete shambles and there is a lot of cleaning up to do before they are "legal" and current.

Could I respectfully suggest that it would only be self-managers who are having problems or not coping, or even have given it a try and decided it is too hard that would want to hand over to a PM.

I challenge any self managing landlord to send in their, leases, condition reports, quarterly inspection reports, bond forms, tenant ledgers etc... I would like to see one (just one) that matches the quality of a professional real estate agency!!!

I have no plan to send anything, but I believe we run our places as well as a professional PM. We know what needs doing and when, and anything that crops up that we don't know, the RTA site is a click away or a phone call away.

I gather from posts on SS that in other states this information may be a bit harder to find.

Having only a small number of properties, there is no chance that the rent will be late without our knowing about it. We manage any problems quickly and professionally, but keep the personal touch.

Whilst we find it easy, I would not like to work as a PM and manage other people's properties or problems.

 

[familyguy]

Do detect that you're giving yourself a bit of a plug there Xenia, I reject the notion that a real-estate sales office is a shambles when it comes to property management, we have taken over management of properties from both types of agencies ( rental only, sales and rental ) where the owner obviously wasn't happy. At the end of the day your agency is only as good as the people it employs. I do tend to agree about the professionalism of self managers, thats why we see so many here in this forum asking "Help, what do I do next" They find out that its not simply a case of sit back and watch the rent roll in.

 

[Xenia]

Yes! Cheeky of me wasn't it