With the change in the market there seems to be a proliferation of folks entering the property management field – ADRE sees this has caused some problems.
The first issue is one you all cannot do a great deal about, and that is people who are performing property management without holding a real estate license. If you learn of any such operations ADRE encourages you to file a complaint with uthem so that they can be aware of it and address the issue.
The second problem that ADRE is seeing fairly often is licensed salespersons or associate brokers who start a “side business,” usually an LLC, and conduct property management functions through that business and outside their brokerage. This is, of course, not legal, since all their real estate business, and payment therefore, must come through their employing broker. A secondary issue with this situation is that the salesperson/associate broker leaves the employing broker and moves to another and expects to take all the property management clients of the LLC along. Since the clients officially belong to the employing broker, not the agent, this puts the agent in the position of having the clients breaking a contract to enter into another for the personal benefit of the agent.
Barbara Freestone
Arizona Association of REALTORS®
VP Professional Development
602-248-7787
