How to Start a Property Management Company in Florida

Most people searching for a Florida property management license are really asking one question: do I need a real estate license to manage rentals for other people? In most cases, yes. Florida does not issue a separate property manager license for ordinary residential leasing, so the license that matters is a real estate license. Once that question is settled, the rest of the work is forming the company, opening the right bank accounts, and meeting local and vacation rental rules.

This guide covers those steps in the order most new operators handle them. It is informational content, not legal or tax advice. Licensing and tax treatment depend on the exact services you offer, so confirm each point with the agency named and speak with a Florida real estate attorney and a CPA before you sign your first management agreement.

Do You Need a License to Be a Property Manager in Florida?

Under Chapter 475 of the Florida Statutes, renting or leasing property for others in exchange for compensation is real estate brokerage. A company that markets units, finds tenants, negotiates leases, or collects rent for owners generally needs a real estate broker license, or its staff must work as licensees under a licensed broker. Owners managing only their own property are in a different position, and the statute contains other exemptions, so check your specific activities against it before you assume one applies.

Searches for a florida property management license requirement usually lead to the broker license because that is the rule that governs most of this work. Florida has no general state business license. The local business tax receipt is a tax under Chapter 205, not a competency license, and not every county or city levies one. Your city or county can tell you whether one applies to your address.

Three situations add separate requirements:

• Vacation rentals: Each vacation rental unit needs a vacation rental license from the DBPR Division of Hotels and Restaurants. A manager can hold a collective license covering up to 75 units. Confirm the conditions for that collective license with the division before you plan your portfolio around it.
• HOA and condo management: Community association management is a separate CAM license under Chapter 468, Part VIII. Your real estate license does not cover it, and the CAM license does not replace the real estate license.
• Trust accounts: Rents and security deposits you collect for owners must be held in a trust or escrow account, not your operating account. Confirm the handling, recordkeeping, and reconciliation rules with the DBPR Division of Real Estate before you open accounts.

What You Need Before You Start

Gather these items before you file anything:

• A licensing plan: your own broker license, or a licensed broker who will supervise your leasing activity. Confirm education, examination, and application fees on the DBPR licensing portal at myfloridalicense.com.
• A company name that ends in LLC, L.L.C., or Limited Liability Company and is distinguishable on state records.
• A Florida street address for your registered agent. A P.O. Box will not work.
• Filing fees: $125 in total for Articles of Organization, which includes the required $25 registered agent designation.
• An EIN from the IRS for tax filings, bank accounts, and hiring.
• Two bank accounts: an operating account and a trust or escrow account.
• Insurance quotes for general liability and errors and omissions coverage, plus any coverage your owners or lenders require.
• Draft management agreements, lease templates, and a fee schedule reviewed by a Florida attorney.
• Accounting software that can produce a trust ledger by owner and by unit.
• A startup budget that covers filing fees, licensing costs, insurance, software, and a reserve for the first months of operation.

Step-by-Step Instructions

Step 1: Define your services and confirm which license applies

List what the company will do: long-term residential leasing, commercial leasing, vacation rentals, HOA or condo management, or maintenance coordination only. Each category triggers different rules. Leasing and rent collection for others triggers the real estate license. Vacation rentals add the DBPR vacation rental license. Association management adds the CAM license. Write this list first, because it determines every step after it. If any activity is unclear, ask the relevant agency directly before you advertise.

Step 2: Get licensed or put a licensed broker in charge

You have two paths. You can earn a real estate broker license yourself, which involves education, examination, and experience requirements that differ from the sales associate path. Confirm the current requirements with DBPR before you enroll in any course. Or you can work under a licensed broker, who supervises the company's leasing activity while your licensed staff operate under that broker. Some new operators start this way while they build revenue. Either way, do not let unlicensed staff quote leases, show units for compensation, or collect rent.

Step 3: Check and reserve your company name

Search the name on the Sunbiz business search at https://search.sunbiz.org/Inquiry/CorporationSearch/ByName. The name must end in LLC, L.L.C., or Limited Liability Company and be distinguishable from existing names on Department of State records. You can reserve a name for 120 days for a $25 fee if you need time to finish licensing paperwork. A reservation does not complete the filing, and you should not assume the name is approved until you receive a filing acknowledgment.

Step 4: File Articles of Organization

File Articles of Organization with the Florida Department of State, Division of Corporations, through Sunbiz eFile at https://dos.fl.gov/sunbiz/start-business/efile/fl-llc/. The required total is $125 ($100 filing fee plus the $25 registered agent designation). The Division states that online filings are processed in the order received, and images of electronically filed documents post within 3 business days of processing. Non-electronic filings post within 5 business days. No guaranteed turnaround is published, and the Division does not offer expedited filing. For same-day help, the walk-in office at 2415 N. Monroe Street, Suite 810, Tallahassee, is open Monday to Friday, 8am to 5pm, and most requests are completed while you wait.

Step 5: Appoint a registered agent

Every Florida LLC must designate a registered agent with a physical Florida street address. The agent must sign the filing to accept the appointment. Your company cannot serve as its own registered agent, but an individual owner or officer can. The designation carries a required $25 fee for an LLC, and changing the agent later costs the same amount. If you use a commercial registered agent service, ask about its fees, the Florida address it uses, and how quickly it forwards legal papers to you.

Step 6: Register a fictitious name if you will use a trade name

If the company will operate under a name other than its LLC name, register a fictitious name. Registration costs $50 and is valid for 5 years, expiring December 31 of the fifth year. Renewal costs $50 and is filed between July 1 and December 31 of the expiration year. The name must be advertised at least once in a newspaper in the county of your principal place of business, though no proof of advertisement is filed. Registration is statewide with the Department of State, not the county. File at https://dos.fl.gov/sunbiz/start-business/efile/fl-fictitious-name-registration/.

Step 7: Get your EIN and check your tax registrations

Get an EIN from the IRS before you open bank accounts or hire staff. Florida has no personal income tax. An LLC taxed as a corporation for federal purposes pays the 5.5% Florida corporate income tax on net income for tax years beginning on or after January 1, 2022. An LLC classified as a partnership or disregarded entity generally does not file a Florida corporate income tax return, but a Florida Partnership Information Return is required if one or more owners is a corporation. Confirm your obligations with a CPA. If any of your services are taxable, register as a sales and use tax dealer with the Florida Department of Revenue before you begin business. The state sales tax rate is 6%. Whether your management fees are taxable is a question to confirm with the Department of Revenue at https://floridarevenue.com/taxes/eservices/Pages/registration.aspx.

Step 8: Check for a local business tax receipt

Many Florida cities and counties require a local Business Tax Receipt for the address where you operate, but not all of them do. The receipt is a tax under Chapter 205, not proof that you are qualified to manage property. Ask your city or county whether a receipt applies to your office, and confirm the current cost on the local website. Do not assume the rules match across jurisdictions, especially if you manage properties in several counties.

Step 9: Open trust and operating accounts and set up bookkeeping

Open a trust or escrow account for owner funds and tenant deposits, and keep operating money in a separate account. Commingling funds is one of the most common compliance problems for new operators. Your bookkeeping should track each deposit and disbursement by owner and by unit, and you should reconcile the trust account on a regular schedule. Confirm the specific account and recordkeeping requirements with the DBPR Division of Real Estate before you open the account.

Step 10: Get insurance and write your contracts

Talk to an insurance broker about general liability and errors and omissions coverage, and ask what your owners and lenders require. Then have a Florida attorney review your management agreement, lease forms, and disclosures. The management agreement should spell out the scope of services, fees, how owner funds are held, who approves maintenance spending, and how the contract ends. Lease forms must comply with federal and Florida fair housing laws, and staff should be trained on those rules before they show a unit.

Step 11: Add vacation rental or CAM licensing if you need it

If you manage vacation rentals, each unit needs a vacation rental license from the DBPR Division of Hotels and Restaurants. A manager can hold a collective license covering up to 75 units, which can simplify administration for a larger portfolio. Confirm the eligibility conditions with the division. Short-term rental income may also be subject to state sales tax and local tourist taxes, so confirm those obligations with the Department of Revenue and your county. If you plan to manage HOAs or condominiums, apply for a CAM license under Chapter 468, Part VIII, and keep it separate from your real estate license.

Step 12: Calendar your annual report and renewals

Your LLC annual report is filed each year between January 1 and May 1, and the fee is $138.75. A $400 late fee applies to reports received after May 1, bringing the total to $538.75. If the report is not filed by the third Friday in September, the LLC faces administrative dissolution. File at https://dos.fl.gov/sunbiz/. Put your license renewal dates, the fictitious name renewal window, and any vacation rental or CAM renewal dates on the same calendar. Confirm each renewal deadline with the agency that issued the license.

Common Mistakes to Avoid

• Assuming you need no license because you only find tenants or help owners. Renting or leasing for others for compensation generally falls under Chapter 475.
• Letting unlicensed staff negotiate leases, show units for pay, or collect rent.
• Depositing owner rents or tenant deposits into the operating account.
• Forming the LLC before checking the name on Sunbiz, which can force a rename after you have printed contracts and signage.
• Missing the May 1 annual report deadline and paying the $400 late fee.
• Skipping the local business tax receipt check because the state does not issue a general business license.
• Using a template lease that no Florida attorney has reviewed.
• Treating one license as covering another. A vacation rental license and a CAM license each require their own application, and neither replaces your real estate license.

What to Expect After Setup

Completing these steps does not guarantee a fast start or steady income, but it can place the company on a compliant footing. Operators who finish licensing, trust accounting, and contracts before taking their first owner may spend less time correcting problems later. Results also depend on local market conditions, your fee structure, and the portfolio you build. Expect the full process to take longer than the filing itself, because licensing steps depend on coursework, examination scheduling, and agency processing.

Resources

• Florida Department of State, Division of Corporations (Sunbiz)
• Sunbiz business name search
• Sunbiz eFile for Florida LLCs
• Fictitious Name Registration
• Florida Department of Revenue
• DBPR licensing portal (myfloridalicense.com)
• Florida SBDC Network, which offers business advising. Confirm which services are available and at what cost.

Disclaimer: This article is informational only and is not legal or tax advice. Licensing, filing, and tax rules change and depend on your specific activities. Confirm current requirements with the agencies named, and consult a qualified Florida attorney and CPA before forming your company or signing contracts.