Florida’s massive rental market creates strong demand for property management services. With millions of rental units, vacation properties, and investment homes, property owners need professional managers to handle tenants, maintenance, and compliance.
Starting a property management company in Florida requires a real estate license—a significant but achievable barrier that keeps competition manageable. This guide covers everything you need to start a property management company, from licensing to landing your first clients.
Do You Need a Real Estate License?
Yes. In Florida, property management activities that require a real estate license include:
- Leasing, renting, or offering to lease or rent real property
- Collecting rent on behalf of property owners
- Negotiating or advertising for the rental of real property
- Showing or listing rental properties
Activities That Don’t Require a License
- Managing your own property
- Employed on-site managers at a specific property
- Managing properties owned by a family member
- Salaried employees of property owners performing incidental management tasks
If you’re collecting rent, finding tenants, or advertising rentals for other property owners, you need a real estate license.
Step 1: Get Your Real Estate License
Pre-License Education
Complete a 63-hour pre-license course from an approved provider:
- Online courses available
- Cost: $200-$500
- Topics include Florida real estate law, contracts, and property management
Pass the State Exam
After completing the course, pass the Florida real estate sales associate exam:
- Administered by Pearson VUE
- 100 questions, 3.5 hours
- Minimum 75% to pass
- Cost: $36.75
Background Check and Application
- Submit fingerprints for background check ($52.50)
- Apply to the Florida Department of Business and Professional Regulation (DBPR)
- Application fee: $83.75
- Wait for license issuance
Broker License (Required to Own a Property Management Company)
Here’s the catch: To own a property management company in Florida, you need a broker’s license, not just a sales associate license.
Broker requirements:
- Hold an active Florida real estate sales associate license for at least 24 months in the preceding 5 years
- Complete 72 hours of broker pre-license education
- Pass the broker state exam
- Complete post-license education
Alternative: If you’re newly licensed, you can work as a property manager under an existing broker while accumulating the 24 months of experience needed for your broker license.
Another option: Partner with a licensed broker who handles the licensed activities while you focus on business development and operations.
Step 2: Form Your Florida LLC
An LLC provides essential protection for property management companies. You’re handling tenant disputes, maintenance issues, and large sums of money—all creating liability exposure.
Why an LLC?
- Asset protection: If a tenant sues or claims damages, your personal assets stay protected
- Professional structure: Property owners trust established businesses
- Multiple members: Easy to structure partnerships
- Tax flexibility: Choose pass-through taxation or S corp election
Formation Steps
1. Choose your business name
Check availability on the Florida Division of Corporations (Sunbiz) website. Your name must include “LLC.”
Property management company names typically:
- Reference property, management, or real estate
- Sound professional and established
- Work for local and potentially expanded service areas
2. File Articles of Organization
File online through Sunbiz for $125. Processing takes 2-3 business days.
3. Create an Operating Agreement
Establish ownership percentages, roles, and operating procedures. Essential if you have partners.
4. Get your EIN
Apply for a free Employer Identification Number from the IRS at irs.gov.
5. Open a business bank account
Property management requires multiple accounts:
- Operating account for business expenses
- Trust account for security deposits and rent held for owners
Register Your Brokerage
Once you have your broker license, register your LLC as a real estate brokerage with DBPR:
- Submit application for broker registration
- Designate your LLC as the legal entity
- Pay applicable fees
Step 3: Set Up Trust Accounts
Florida law requires property managers to maintain separate trust accounts for client funds.
Security Deposit Trust Account
- Holds tenant security deposits
- Never commingled with operating funds
- Interest belongs to landlord (unless otherwise agreed)
- Specific record-keeping requirements
Rental Income Trust Account
- Holds rent collected before disbursement to owners
- Clear accounting of each owner’s funds
- Disbursement per management agreement terms
Trust Account Requirements
- Must be in Florida bank or credit union
- Account name must include “trust” or “escrow”
- Monthly reconciliation required
- Detailed records of all transactions
- Available for DBPR audit
Violation of trust account rules can result in license revocation and criminal charges.
Step 4: Insurance Requirements
Property management exposes you to various liabilities. Comprehensive insurance is essential.
Required Coverage
General Liability Insurance
Covers third-party bodily injury and property damage claims.
Typical coverage: $1,000,000 per occurrence Cost: $1,000-$2,500 annually
Professional Liability (Errors & Omissions)
Covers claims arising from professional services:
- Failure to properly screen tenants
- Lease errors
- Property damage from negligence
- Fair housing violations
Essential for property managers.
Typical coverage: $1,000,000 Cost: $1,500-$3,000 annually
Fidelity Bond/Crime Insurance
Covers employee theft and dishonesty. Property owners may require this.
Cost: $500-$1,500 annually
Recommended Coverage
Workers’ Compensation
Required if you have 4+ employees in Florida.
Cyber Liability
Covers data breaches involving tenant and owner information.
Commercial Auto
If employees drive for property showings and inspections.
Umbrella Policy
Additional liability coverage above primary policies.
Step 5: Property Management Software
Modern property management requires software for efficiency and compliance.
Essential Features
- Tenant portal: Online rent payment, maintenance requests
- Owner portal: Financial reports, statements, communication
- Accounting: Trust account management, owner distributions
- Leasing: Applications, screening, lease generation
- Maintenance: Work order tracking, vendor management
- Marketing: Listing syndication, vacancy advertising
Popular Platforms
| Software | Monthly Cost | Best For |
|---|---|---|
| Buildium | $55-$375 | Small to mid-size portfolios |
| AppFolio | $1.40/unit (min $280) | Growing companies |
| Rent Manager | $1/unit + modules | Larger portfolios |
| Propertyware | Custom pricing | Single-family portfolios |
Budget: $100-$500/month initially, scaling with portfolio size
Step 6: Pricing Your Services
Fee Structures
Percentage of Rent (Most Common)
- Typical range: 8-12% of monthly rent collected
- 10% is standard in many Florida markets
- May be lower for larger portfolios
Flat Fee Per Unit
- Fixed monthly fee regardless of rent
- Typical range: $75-$150 per unit
- Predictable for owners, but risky if rents are low
Hybrid Models
Combination of base fee plus percentage, or tiered structures based on portfolio size.
Additional Fees
Beyond monthly management fees, most companies charge:
| Service | Typical Fee |
|---|---|
| Leasing/tenant placement | 50-100% of first month’s rent |
| Lease renewal | $100-$250 |
| Eviction coordination | $200-$500 |
| Property inspections | $50-$100 |
| Maintenance markup | 10-20% of vendor invoices |
| Setup fee (new properties) | $200-$500 |
Pricing Strategy
- Research local competitor pricing
- Consider your overhead and profit targets
- Start slightly below market while building reputation
- Raise rates as you establish track record
Step 7: Legal Documents
Property Management Agreement
Your contract with property owners should include:
Scope of Services
- What services you’ll provide
- What’s not included
- Decision-making authority
- Spending limits for repairs
Compensation
- Management fee structure
- Additional fees and when they apply
- How and when you’re paid
Term and Termination
- Contract duration
- Notice requirements for termination
- What happens to current leases upon termination
Trust Account Handling
- How funds are held
- Disbursement schedule
- Security deposit handling
Owner Responsibilities
- Insurance requirements
- Reserve fund requirements
- Response time for approvals
Liability Limitations
- Your liability limits
- Indemnification provisions
- Insurance requirements
Lease Agreements
Use Florida-compliant lease agreements:
- Required Florida landlord-tenant law disclosures
- Security deposit provisions per Florida statute
- Lead-based paint disclosure (pre-1978 properties)
- Radon disclosure
- Move-in/move-out inspection procedures
Have an attorney review your lease template.
Fair Housing Compliance
Understand and follow Fair Housing laws:
- Protected classes (race, color, religion, national origin, sex, familial status, disability)
- Prohibited practices in advertising, screening, and leasing
- Reasonable accommodation requirements
- Document all decisions and criteria
Fair housing violations can result in significant fines and lawsuits.
Step 8: Finding Clients
Target Markets
Individual investors: Own 1-10 properties, often self-managing but overwhelmed Out-of-state owners: Need local representation Inherited properties: Heirs who don’t want to manage Builder/developer portfolios: New construction rental communities HOA management: Community association management (requires separate licensing)
Marketing Strategies
Online Presence
- Professional website with services, pricing, and testimonials
- Google Business Profile for local search visibility
- SEO targeting “property management [city name]”
Networking
- Real estate investor groups (REIA)
- Real estate agents (referrals for investor clients)
- CPA and attorney referrals
- Local business organizations
Direct Marketing
- Target rental property owners through public records
- Direct mail to out-of-state owners
- Advertisements in real estate publications
Referral Program
Incentivize current clients to refer other property owners.
Growing Your Portfolio
- Deliver excellent service to retain clients
- Expand services (maintenance, renovation project management)
- Consider acquiring portfolios from retiring managers
- Target property management opportunities in growing submarkets
Ongoing Compliance
License Renewal
Florida real estate licenses renew every two years. Complete:
- 14 hours continuing education (for broker)
- Renewal fee
Annual Report
File your Florida LLC annual report by May 1 each year. Fee: $138.75.
Trust Account Audits
Maintain records for potential DBPR audits. Regular self-audits ensure compliance.
Tax Obligations
- Quarterly estimated federal taxes
- Reemployment tax (if you have employees)
- Annual federal income tax return
- 1099 reporting to property owners
Total Startup Costs
| Expense | Estimated Cost |
|---|---|
| LLC formation | $125 |
| Sales associate license (total) | $500-$800 |
| Broker license (after 24 months) | $400-$700 |
| Brokerage registration | $100-$200 |
| General liability insurance | $1,000-$2,500 |
| E&O insurance | $1,500-$3,000 |
| Fidelity bond | $500-$1,500 |
| Property management software | $500-$2,000 (first year) |
| Website and marketing | $500-$2,000 |
| Office/home office setup | $500-$2,000 |
| Initial operating capital | $5,000-$10,000 |
| Total (existing broker) | $10,000-$25,000 |
Add $15,000-$25,000 if you need to wait and obtain your broker license.
Start Your Property Management Company Today
Property management offers recurring revenue, scalable operations, and strong demand in Florida’s rental market. With proper licensing, trust account compliance, and quality service, you can build a valuable business managing residential and commercial properties.
IncCraft handles your LLC formation while you focus on obtaining your license and building client relationships. We’ll file your Articles of Organization, obtain your EIN, and provide registered agent service.
Get started with your Florida property management LLC today.