Management co.-can anyone start one

[Jana]

I`ve been investing in AB RE for number of years and we manage our own properties, locally anyways. I`ve had number of people ask if we could manage theirs as well. Can anyone manage properties, that are not their own, or does one have to be licensed to operate it legally?
Thanks in advance
Jana

 

[bluerockgroup]

Hi Jana,
I`ve researched this before and here`s the black and white answer. NO. It comes from the Real Estate Council of Alberta as they are the licensing and managing organization of realtors, brokers, appraisers and managers in our province. From their website (www.reca.ca), here is a quote:

"Can I manage my own real estate portfolio?
When private individuals and companies (or their employees) manage their own property, they do not require a real estate licence. For example, a firm called Real Estate Investors Ltd., owns fifteen four-plex units. The company or its employees may manage the property, without a licence.

Also, co-owners of property who own a “substantial interest” in the property do not require a licence to manage that property. The term “substantial interest” is not defined in the Real Estate Act; however RECA interprets substantial interest as a property ownership interest greater than 33 1/3%. Therefore, if Ivan Investor owns property with Mike Mogul and Larry Landlord and Ivan’s share of the property is 33 1/3% or more, he may manage these properties on behalf of the three owners, without a licence."

Here`s the link to that page: http://www.reca.ca/consumer_information/co..._management.htm

Please be careful and stay out of the gray.

-Grant

 

[Jana]

Thanks for your response Grant! I wonder though if there is a way to make it happen, legally of course, for some one in my situation?
Things that make you go hmmm

 

[MikeMcCrae]

That is a very good question. RECA is the real estate profesional association. According to association guidelines it may be against their rules, but is it against the law? hmmmm

 

[bluerockgroup]

Way to look around the wall Mike. Let`s see if a lawyer can chime in on this topic. Their legal opinion may just open a few doors for us.

-Grant

 

[brentdavies]

HI,

I have been a licensed property manager in Edmonton for over 24 years.

To act as a property manager for other property owners, I must be a licensced Real Estate Brokerage and Broker, with all funds going through the Brokereage`s trust account. ( same as a lawyers trust account). All accounting rules must be followed and annual reports are sent to RECA, the governing body. Infractions, such as shortage of funds are serious breachs of the rules and are dealt with harshly by RECA

I am not required to operate my my own property through the brokage ( Any property which I own more than 1/3 interest in ALberta.)

I would advise not to manage property for other people, unless you are licensced to do so.

However if you wish to manage for others, contact me directly and I can show you how to do it.

Brent