Property Management Regulations

So, I work for All Property Management, LLC.  Our website, www.allpropertymanagement.com,  connects property owners with property managers (we're in the "lead generation" business).

As part of my job, I'm doing a bunch of research on property management regulation in each state, and I've noticed a couple of things that I thought I'd throw out there. 

While states are pretty consistent in requiring a broker's license for listing or offering to list property for purchase, sale or exchange, or offering to engage in those activities, there is a fair amount of variation between states in terms of which property management activities require a broker's license. 

For example, in Idaho property management activities are not regulated, so it appears a property manager there can negotiate leases, collect rents and list properties for rent and show properties without a broker's license.  At the other end of the spectrum, some states, such as Connecticut, not only require property management companies to have a broker's license if they collect rent, negotiate leases or show properties for rent, they also require community association managers to have a license and be working under a broker.  Of course exceptions apply, such as if the person collecting the rent is the apartment manager living in the building, but if the building has a property management company taking care of it, that probably isn't the case.

Anyway, for all you property managers out there who are not brokers or whose companies don't have a designated broker, if you are listing or showing properties, negotiating leases or collecting rent you could be in violation of your state law - in fact you're probably in violation of your state law because most states define those activities as real estate activities requiring a broker's license.  Make sure that you're allowed to engage in these activities with your local real estate commission, or consult an attorney in your state.  And also keep in mind that even if you're collecting rent checks that are in the owner's name and depositing them directly into the owner's bank account, if your state requires a broker's license to "collect rent" you may have an issue with your state's real estate enforcement division if your property management company doesn't have a broker's license.

Finally, because our website collects leads for property management companies, we have all sorts of useful information for property managers about where the most requests are coming from (geographically), and for what types of properties.  More on that later...

By the way, I'm actually the designated broker for All Property Management, LLC and I'm also a recovering real estate attorney too - I gave up my law license a few months ago.   Please let me make this clear that this is not meant to be legal advice of any kind.  If you have any questions or concerns you should consult an attorney licensed to practice in your state.