Licensed Property Management

There are many people/companies who try to emulate what we do with our turn-key approach. Many of these companies say they offer everything we do, including property management. One thing these companies lack is being a LICENSED property management company. I recently spoke with Bert Less of Leco Property Management here in Memphis who manages over 1,000 properties in the area. Here is what he had to say:

"As an owner of rental property have you ever considered using a non-licensed property management person to handle your rentals? Don’t do it. First of all, someone not licensed that is managing property is breaking the law. The Tennessee Real Estate commission clearly states: “It is unlawful for any person to engage in the business or capacity of a rental location agent in this state without first having obtained a license from the real estate commission.” Additionally, it requires training and years of experience to manage rentals. Remember these people are making decisions for you that could have serious implications. For example, using non-skilled vendors to repair gas lines or sewers could come back to haunt you if they are not performed correctly. Someone that is not in the business on a daily basis may not know whom to call. A good property management company will match the right vendor to the right job thereby saving you money. You have to have a certain amount of business to create a loyal group on vendors. Section 8 does require a management agreement between owners and management companies before they will execute a lease. As stated above it is illegal to execute an agreement if you are not licensed. A non-licensed person could not legally evict a tenant; they cannot appear in court on your behalf. Additionally, an un-licensed individual would not be bonded in the event of missing funds or if someone just ran off with your money. A licensed real estate agent has a recovery fund with the state in the event of a missing money claim."

Make sure the company you work with is licensed. You can check here: http://licsrch.state.tn.us/default.aspx

As you can see, this is not something you want to mess with if you are an investor, especially out of state. Our investors feel comfortable knowing that we own a licensed management company to take care of their investments hundreds of miles away. Visit us today at MemphisInvest.com.