Property Management Requirements in New York
If a property manager in N.Y. is going to collect rent, rent a property, or list a property for sale, they will have to obtain a broker’s license. However, not everyone needs a license. A salesman or secretary can work under the property manager and do all the things listed above without having to obtain a brokers’ license. So only the owner really needs the license and everyone else in the office can just piggyback off of him or her.
Another instance where a license is not necessary is when the property manager only does the maintenance and repairs of the property. So in most cases being that rent is usually collected by the property management company, a license would be necessary.
This is only applicable to regular rental properties. A community association does not have the same requirements and no license is needed the manage them.
To get a broker’s license is a two-step program. First, you have to get a salesperson’s license. In order to obtain a salesperson's license in New York, you have to pass the Department of State (D.O.S.) exam. You would first sign up for a forty-hour course from a real estate school. You would then find a broker to sponsor you. After having a year’s time of experience as a real estate salesperson, you then have to take a real estate broker’s course. You would still have to pass another exam.
Most professional property management companies in Manhattan have licenses. There are still plenty of those who don't, and chances are they probably won't ever get caught. But if you ever want to be part of the big game, you would be much better off taking the effort to get one. Any property owner who owns a decent size apartment building will not just pass off the responsibility to a company that doesn't have a license. They want to see what other buildings you have managed, and they will certainly look at your credentials. It’s not only prestige, it’s common sense.
Truthfully, it’s worth taking the courses so that you can service your clients in the best way. A lot of information you will pick up on the way to getting your license will help you out as a property manager. This includes legal aspects of the real estate industry in New York.
Eventually, they might make a license specifically for property managers in NY, but that is still under debate. Even if they do, having a broker’s license will still be a major asset to your company.
