For anyone who manages a property on behalf of the owner, the first requirement is to have a California property management license. According to regulation 10131-b, buying, selling or leasing property without a license is illegal. Property management activities are considered real estate activities under current California real estate licensing laws. A broker's license is necessary for any person or company that, in exchange for compensation, leases or offers to lease or rent, requests listings of places for rent or solicits potential tenants, negotiates the sale, purchase or exchange of leases of real estate, or collects rents of real estate or improvements thereto. A salesperson who works for a broker can participate in such activities.
In California, you don't need to get your real estate license to become a property manager. However, certain property manager tasks require that you have a license to perform them. The state's real estate department requires broker candidates to document their educational experience and training in the field and pass a state exam to obtain a license. Continuing education requirements apply to all brokers.
Brokers are subject to license suspension or revocation for failing to comply with laws related to property management, as well as other real estate laws. Property managers are not required to have any separate certification specific to property management, but many property managers do. The only exception to this law is for landlords who manage their own buildings. Therefore, the answer is yes - a property manager in California needs a real estate license if they plan to participate in real estate activities such as soliciting tenants, negotiating leases, and collecting rents. Like resident managers, homeowners are also not required to have real estate licenses when it comes to managing properties that they actually own. There is no requirement for a community association manager in California to have a real estate broker license.
Agents interested in becoming professional property managers should consider providing a 45-hour continuing education course for licensed real estate agents, landlords, tenants and property managers on the first Tuesday. The listing of properties for rent or lease and the location of potential tenants can only be reserved to a leasing agent, while the property manager can oversee most of the daily rental operations. It's a highly regulated field in California, and laws that directly or indirectly affect property management appear in 15 different state government codes. Some tasks that do require a license and that can be performed by a property manager include collecting rents and managing the operations of income-generating properties. Therefore, a property manager with a DRE license is better able to perform the functions of both regular manager and leasing agent.
The resident manager of an apartment building or apartment complex who lives there is also no requirement to have a real estate license, especially if they are dedicated to collecting rents. A resident manager and his employees do not need a real estate license to manage the apartment complex. For example, an employee of a property management company hired to manage a residential building or apartment complex may perform certain functions if that person is under the supervision and control of a broker who is also an employee of that company. Administrative and non-discretionary tasks performed by an employee of a broker who manages hotels or apartment complexes are exempt from real estate licensing requirements while the employee is under the supervision and control of a broker. The California Supreme Court has determined that the failure of an administrator to maintain units in accordance with this basic standard can serve as a defense against an eviction action for not paying rent.
In addition, some of these functions can be divided and assigned between a property manager and a leasing agent. The owner-operator does not act on behalf of another person as an agent when managing their own property.
