Managing Other People`s Real Estate Without a License? Few Questions...

[Luke_Frerichs]

Hello,



I have a good friend who owns a decent
portfolio of properties and he wants to know if I would be interested
in managing his properties. I have done some research into this and
since I am not a licensed real estate broker I would be classified as
a manager by way of association. (association management) Since I'm
not licensed I would like to operate on a fee-for-service basis. Is
the only thing that separates me from being a licensed real estate
broker the fact that I initially am employed directly by the owner
where a licensed property manager is employed indirectly through a
contract with a property management firm?









What restrictions would I face by
doing this? Since as long as I am taking Rent/Security
deposits/doing evictions and marketing property on the landlords
behalf I should be able to keep myself legal, right?? Say I like
this and it's going well perhaps I may have room for some more employers?? any thoughts or where-abouts of possible landmines would
be welcome.





Happy Investing

 

[wgraham]

Look up Jared Hope and Land lord rescue. This is the model that they use.

 

[Thomas Beyer]

The critical thing is not to handle MONEY. i.e. you might direct tenant to pay owner directly, via post-dated cheques or PayPal or VISA. You will become a services provider, for a fee, to the owner.



I will use Landlord Rescue (Jared Hope) too, for a property I own in StonyPlain (via a collapsed JV partner arrangement) .. and that is the model they use. We'll see how they perform !

 

[Luke_Frerichs]

Thanks for the help guys, I'm glad I made this post..



Cheers

 

[ChrisDavies]

Luke, you're allowed to work for one owner without being licensed. That includes collecting rents for them. Once it's two owners it's my understanding you have to be licensed, even if you're just picking up cheques and not actually depositing them.

 

[RedlineBrett]

Here is a link to the real estate act



http://www.qp.alberta.ca/documents/Acts/R05.pdf



within it it says the following



"(s.1) `property management` includes any of the following:

(i) leasing or offering to lease real estate or negotiating

or approving, or offering to negotiate or approve, a

lease or rental of real estate;

(ii) holding money received in connection with an

activity referred to in subclause (i);

(iii) advertising, negotiating or carrying out any other

activity, directly or indirectly, for the purpose of

furthering an activity referred to in subclause (i) or

(ii);



A year and a half ago my brokerage was investigated for having an unlicensed person (so someone that is NOT a realtor or holds a management license) doing showings and leasing (this includes screening, background checks etc). We were given strict instructions from the council on this.



If you want to do showings and leasing for more than one person and make money doing so you have to be licensed with a brokerage that trades in property management. You can be a contracted employee of someone and do showings and leasings for just them. But you can't go beyond that.



It costs me tens of thousands of dollars a year in licensing fees and salaries to pay for licensed people to keep my company in compliance with the real estate act. If an 'a la carte' style management company opened their doors in Calgary and started competing with me you can bet I'd make sure RECA heard about it and that they were held to the same standard I am. Other legit managers are the same way... so be mindful about how you plan to grow your business!

 

[TodorYordanov]

Come to Ontario. It's open for business and would be property managers friendly. No license needed. Just plain good ol' work ethic

Not like the non-liberal, but still controlling Alberta government.



The above is half true, just to make a point how easy it is to judge another province when we don't know much about it.

 

[Nir]

[quote user=TodorYordanov]Come to Ontario. It's open for business and would be property managers friendly. No license needed. Just plain good ol' work ethic

Not like the non-liberal, but still controlling Alberta government.



The above is half true, just to make a point how easy it is to judge another province when we don't know much about it.






Nice one

1-1

 

[Luke_Frerichs]

Half-way through the Intro to Real Estate Course towards getting licensed in Alberta. Try'ed to reach Landlord Rescue and received no response. Operating this model in Alberta without a license is a deck of cards. Better to be licensed and do the same thing without risk of the hammer swinging down..



Cheers

 

[Thomas Beyer]

[quote user=TodorYordanov]easy it is to judge another province when we don't know much about it.




I've lived there for 3 years .. and close to Eastern Europe and Communism, too !!

 

[TodorYordanov]

[quote user=ThomasBeyer]and close to Eastern Europe and Communism, too !!


I've lived in Eastern Europe and under Communism for 23 years. That is a very meaningless statement.

It is just another system with good and bad.

If you are comparing Ontario to Eastern Europe, is it fair to say that the Capitalist society is allowing this ecologic catastrophe of massive proportions in Alberta because of greed. Where willing participant are rushing in to profit anyway they can.

The propaganda cuts both ways.

 

[bizaro86]

[quote user=TodorYordanov]this ecologic catastrophe of massive proportions in Alberta because of greed.



I'd like to request you either clarify and defend that statement or withdraw it.



Regards,



Michael

 

[TodorYordanov]

[quote user=bizaro86][quote user=TodorYordanov]this ecologic catastrophe of massive proportions in Alberta because of greed.



I'd like to request you either clarify and defend that statement or withdraw it.



Regards,



Michael




What is it that you want me to clarify or defend? Are you suggesting that you are building more parks and green spaces in Northern Alberta?



Just Google "oil tar sands ecology"

Here is two: http://oilsandstruth.org/tar-sands-101

http://www.energybulletin.net/stories/2009-05-05/review-tar-sands-andrew-nikiforuk



Don't get me wrong, IF Ontario had tar sands we'd be all over developing them and laughing all the way to the bank. We are not better!

When there is billions of dollars to be made, every opposing view, idea or concern is promtly dismissed, discouraged or crushed.

"Every opposing view, idea or concern is promtly dismissed, discouraged or crushed".

Doesn't that sound like Eastern Bloc Communist country?

 

[bizaro86]

My colleagues and I are extremely conscientious about the environment and the communities we work in and around. There have been huge advances made in technology for oil sands extraction in recent years, especially for more efficient SAGD (steam assisted gravity drainage).



These projects are now generating much more economic impact with less surface impact, water impact, and air emissions than almost any other kind of industrial activity. (Including things like automobile manufacturing, steel manufacturing, and base metal mining)



Those not involved in oil and gas inevitably see it as some sort of monolith, but that's not the case. I've never made a decision that harmed the environment to save money, and I know for a fact our operations are run to a higher environmental and safety standard than the vast majority of other workplaces.



Regards,



Michael

 

[RealtorDave]

I agree here. The amount of environmental work done in the Oil Sands is amazing. I wonder how environmental regulations are in Nigeria, Libya, Iran, or Saudi Araba?





Its easy to blame the oil sands, but hard to look in the mirror and correct the real problem.

 

[jhoper]

RECA is a very strict group and I feel they know pretty much everything that is going on!! If you feel they don't then they will find you at some point in time. The facts you post about what it takes to become a licensed PM in Alberta is correct. In saying this we have been in business for almost 4 years and we have worked with in the rules of RECA. My company's model has even been approved by RECA after and review of our systems. So although Landlord Resource Center (LLR Canada) is NOT a licensed PM company we are an approved model with the RECA guidelines.



We have been able to work with RECA and develop a new system in which they have approved for us to conduct our business which is in the best interests of the clients (property owners). We the owners of LLR own a large real estate portfolio in which we have used to develop out model.



We will be in Calgary shortly!!!



Jared