Property management is a growing industry that can be very lucrative and rewarding. If you want to start a property management company in Florida, you’ll need to obtain a real estate broker’s license and register with the Florida Division of Corporations. Here’s what you need to know about forming a property management company in the Sunshine State.
What is a property management company?
A property management company is a business hired by rental property owners to manage the daily operations of the property. Property management companies can provide a range of services, including:
- Advertising and showing the property
- Screening tenants
- Collecting rent
- Overseeing repairs
- Enforcing the lease and conducting evictions
Can I start a property management company in Florida?
Yes! Florida is a popular state to move to, so it’s an excellent state in which to form your property management company. However, before entering into a major business venture, it’s smart to consult a business attorney or CPA to make sure you have your (legal) ducks in a row. Here are a few other things to take care of before you start your property management company:
- Obtain a real estate broker’s license. Licensure is required by FL Stat § 475.42 (2021). Before you can apply for a license, you’ll need to take a 63-hour real estate course that has been approved by the Florida Real Estate Commission (unless you have a four-year degree in real estate). After you complete the course, you will need to apply for a license. Once your license has been accepted by the Florida Department of Business and Professional Regulation (DBPR), you will need to take the Real Estate Broker Exam.
- Decide on your business entity type. You’ll need to decide whether to structure your company as an LLC or corporation. Both provide liability protection, but LLCs are more flexible and have more options for how they can be taxed.
- Maintain an office. According to FL Code § 475.22, a real estate broker must maintain an office with an “easily observable” sign at the entrance with the words “licensed real estate broker” on it.
Learn more about starting a Florida LLC or Florida corporation.
Do you need a FL property management license?
No. Unlike some other states, Florida doesn’t have a property management license.