In Florida, property management is a heavily regulated industry. There are specific laws in place dictating what property managers can and cannot do without a license. If you are considering becoming a property manager without a real estate broker’s license in Florida, it is crucial to understand the legal ramifications of doing so.
Or, if you are searching for a property management company, it’s essential to know if they are licensed or not. There are important legalities to be aware of when it comes to property management without a license in Florida and the penalties associated with it.
Can I Be a Property Manager Without a License in Florida?
The simple answer is, no. You cannot be a property manager without a license in Florida, as this is considered illegal real estate practice. Property managers in Florida must have a valid real estate license to perform their duties legally. This includes everything from marketing and leasing properties to collecting rent and handling maintenance issues. Without a license, you would not be able to perform any of these tasks and could face significant penalties if caught.
Many landlords and property owners will only work with licensed property managers, which is another essential reason to ensure that you are appropriately licensed. Obtaining a real estate license in Florida is not difficult, and once you have your license, you can begin enjoying all the benefits of being a property manager. This rule’s main exception is managing personally owned properties.
What Can an Unlicensed Property Manager Do in Florida?
In Florida, unlicensed property managers are limited in what they can do. They can collect rent, but they cannot create a lease or rental agreement. They also cannot advertise the property or show it to potential tenants. In addition, they cannot conduct background checks or screen tenants.
Unlicensed property managers typically only work with already leased properties and do not require any major changes. For landlords looking for someone to take on all the day-to-day tasks of managing a property, an unlicensed property manager may not be the best option.
What Do You Need to Become a Property Manager in Florida?
There isn’t a specific property management license in Florida. To obtain a real estate license in Florida, you must complete an approved course of study and pass a state-administered exam.
Once you’re licensed, you must renew it every two years by completing continuing education courses. While working as a property manager without a license in Florida is possible, it is not advisable. Without a license, you will not be subject to the same regulations and standards as licensed property managers or be able to provide the same property management services. As a result, you could put yourself and your clients at risk.
What is the Penalty for Providing Real Estate Services Without a License in Florida?
You could face serious penalties if you provide real estate services without a real estate/property management license in Florida. According to Florida law, any person who engages in the business of dealing in real estate without being properly licensed is guilty of a third-degree felony. If convicted, you could face up to five years in prison and a fine of up to $5,000. In addition, the court could order you to pay restitution to any person who suffers a financial loss due to your actions.
If you are considering providing real estate services for rental properties in Florida, make sure you have a broker license since there isn’t such a thing as a Florida property management license. Otherwise, you could be facing some severe consequences.
Florida Property Manager License Requirements
To become a licensed real estate broker in Florida, an individual must meet specific requirements set forth by the state. First, they must be at least 18 years of age and have a high school diploma or equivalent. They must also complete an approved pre-license course consisting of 45 hours of instruction.
Once the course is completed, the individual must pass the state examination with a 75% or higher score. After passing the exam, the individual must apply to the Department of Business and Professional Regulation. The application must include proof of completion of the pre-license course, fingerprints, and the required fee.
Once the application is approved, the individual will be issued a license. Licensed real estate brokers can perform property management services legally for a property owner.
The Importance of Hiring a Licensed Property Management Company
When it comes to managing a rental property, there are a lot of essential details to keep track of. Property management can be a full-time job, from collecting rent to handling maintenance requests. As a result, many landlords hire licensed property management companies to handle the daily grind. While there is an upfront cost to doing so, the peace of mind that comes with knowing your property is in good hands is well worth the investment.
A professional Florida property management company will have the knowledge and experience necessary to handle all aspects of the rental process, from screening tenants to handling repairs. In addition, they will be able to provide valuable insights into the local market, which can help you maximize your profits. Remember the benefits of working with a licensed property management company if you’re considering renting out your property.
Hire the Best Property Managers on the Emerald Coast
When managing Florida real estate, you want to ensure you have the best team behind you. We provide an extensive list of services for our property owners and ensure your tenants are taken care of. Pass the headache onto the experts and let us handle the daily tasks. Owning property is an investment, and we want you to get the most from that investment.
Have questions for us? Give us a call! We would love to speak to you about your property and goals.