11 May Can I call myself a Property Manager?
Can I call myself a Property Manager? Be very careful about calling yourself by this legal title. I might not end well.
In the state of Illinois an employee can manage property for their employer. However. Only a “Licensed Real Estate Agent” can manage property for others.
To be a “Property Manager” you need three things. First go get your real estate license. Second go to work for a Broker and let them teach you. Third make sure you are properly insured. This includes liability and Errors and Omissions insurance.
WARNING!
Do not publish or distribute any business cards, flyers or other material claiming to be a property manager. Do not do this until you are licensed and trained.
The title “Property Manager” is being protected by the Illinois Board of Realtors. Tread softly.
SERIOUS EXAMPLE
A landlord up in the Chicago area was recently taken to task for calling themselves a Property Manager. The owner is a good landlord. They actively practice and implement sound and knowledgeable asset protection strategies. This strong business practice makes their ownership invisible. As far as the world is concerned they own nothing.
Their business entity manages all the properties. The deeds to all of their real estate are held in Illinois Land Trusts. These are two tried and true asset protection strategies. The owner also has more than adequate property and liability insurance.
Here is the problem. The Illinois Board of Realtors took them to court. They claimed the landlord was in violation of the law. How could they you ask? Isn’t it obvious the owner was managing their own properties. Well no. The owner is practicing advanced asset protection strategies. They had legally distanced themselves from the actual ownership of the units they were managing. Therefore, they could not act as a property manager. At least according to the Illinois Board of Realtors.
Here is an article on How Realtors work:
https://home.howstuffworks.com/real-estate/buying-home/realtor1.htm
ASSET PROTECTION LIMITATIONS
Active and well thought out asset protection is a great strategy. It can shield you from all types of grief. It also establishes an invisible barrier between you and your assets. Sole proprietors can be held fully liable. Properly executed Business entities shield the “Owner”, That is the reason business entities must hire a lawyer to represent them in court. The entity is not you and cannot represent themselves.
https://ilreia.com/llcs-are-not-the-only-business-entity/
Can I call myself a Property Manager?
Remember, you need to abide by what your lease says. If the lease says Chitown Properties, LLC then Chitown Properties, LLC is the business entity in control. Not You! Are you receiving a W-2? If not, you are not an employee. Because of this very same reason, you cannot call yourself a Property Manager. You are no longer the owner.
For more information on leases ask about our lease book.
DISCLAIMER
The author is not an attorney and not attempting to practice law or give any legal advice. The author is rendering an opinion. Always consult a qualified attorney before implementing an asset protection strategy
Good Luck and Good Investing
George Skidis, President Illinois Real Estate Investors Association, Inc
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