According to the Colorado Department for Real Estate, property management involves taking care of real estate property and rental services on behalf of the property owner. The duties of a property manager include negotiating leases or the terms of a lease. Property managers are required to comply with the brokerage relationship section of the license law. You need to have served actively as a real estate salesperson in Colorado for at least two years before you can be registered as a property manager. (See References 2)
Register your business. Register with the Colorado Secretary of State. Get an Employer Identification Number (EIN) from the Internal Revenue Service by filing form SS4. Register for withholding tax, use tax, sales tax and unemployment insurance tax. (See References 1)
Get a real estate broker’s license. This can be obtained from the Colorado Department of Real Estate. The license needs to be renewed every three years. In addition to being at least 18 years old, you are required to have completed at least 48 classroom hours in a course on real estate and real estate practice; 48 classroom hours on the preparation of Colorado real estate contracts; and 72 hours of instruction on real estate closings, record-keeping, practical applications and current legal issues. You must answer at least 70 percent of the questions correctly to pass a proctored examination and 75 percent to pass the state exam. (See References 3 and 4).
Pursue continuing education. You must take 24 hours of instruction every year. The required courses are the Commission update course, broker transition and brokerage administration.
Prepare business documents. Consult a lawyer when preparing legal contracts such as management leases, eviction notices, leases and employee contracts, since you may need to hire repairmen for the properties you manage. Keep a proper record of the documents you use. According to the Colorado Department of Real Estate, you need to keep good records for any property management transactions you conduct.
Get a postal and physical address so clients have a consistent address where they can send you mail or information easily. Property managers in Colorado can operate from a home location or a commercial business. You can conduct meetings with clients in a public location or at the property site.
Find properties to manage. Start by contacting real estate agents. You can also advertise your services online, check the local papers or join real estate associations where you can network, such as the Colorado Association of Real Estate Investors.
Tip
If you plan on employing a broker or salesperson, you need 24 hours of instruction on brokerage administration.
