Property Manager requirements in Washington State
Want to be a Legal Property Manager? OK.
- You must be duly licensed, working for a Designated Broker who has authorized this “Landlord Service” you will offer the public.
- You must know what you are doing, see the following free information and then check the State of Washington Department of Licensing Website for further information.
- I recommend you join an organization like www.narpm.org who will help you in many areas, plus help to provide credibility.
Property Management Activities
Real estate licensees cannot perform property management without approval from the designated broker. Property management includes ANY activity relating to the marketing and leasing of property. This includes showing, advertising and rental agreements whether or not there is a payment. The designated broker has responsibility for property management activities done by his or her licensees. Properties that the licensee personally owns may be exempt.
Properties managed by the firm must be supported by a written management agreement signed by the Designated Broker and the owner. WAC 308-124D-215
Property management agreements must include:
- The firm’s compensation
- The type of property and number of units
- Whether or not the firm is to collect and disburse funds and for what.
- Authorization if any to hold security deposits
- Frequency of submitting summary statements to the owner
Each owner of property managed by the firm must be provided a summary statement as provided in the property management agreement for each property showing the carried balance, total rent receipts, owner contributions, other receipts, itemization of all expenses paid, number of units and ending balance.
The firm may provide other services for the owners of properties with full disclosure of Broker’s relationship with any parties providing services.
Any amendment of modification to the property management agreement must be in writing.
Property Management Trust Funds
Trust accounts for property management transactions are exempt from the interest-bearing requirement of RCW 18.85.285.
Interest-bearing accounts may be established for Property Management funds if in writing for an individual owner established in writing with interest to accrue to the owner and for only damage or security deposits for tenants of residential properties managed by the firm with interest paid to the owner under certain provisions under the Landlord-Tenant Act RCW 59.18.270.
Mortgage payments for the owner are not permitted to be deducted from the trust account if it contains security deposits or funds belonging to more than one client.
A single check maybe is payable to the firm for property management fees and commissions if supported by a schedule of commissions. Property management commission shall be withdrawn at least once monthly.
When the property management agreement is terminated, the funds shall be disbursed according to the agreement including the damage or security deposited.