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 provide in the property management agreement for eac 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 service 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.
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 be 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 Property management commission shall be withdrawn at least once monthly.