Landlords

Why You Need A Licensed Property Manager

Save your time and energy as investor. reduce your risk

Why licensed?

Below is the information from Texas Real Estate Commission website:

• Sections 1101.351(a) and 1101.758 of The Real Estate License Act establish that it is a crime for an unlicensed person to engage in activity for which a real estate license is required.
• The list of activities requiring licensure may be summarized and placed in two categories (but remember, this is a summary only and not all inclusive). First are those activities in which a person directly helps another buy, sell, or lease real property.
• The second category of activities might be referred to as "indirect" activities and are more troublesome. Section 1101.002(1)(A)(viii) of the License Act requires licensure of those persons who procure or assist in procuring prospects to buy, sell, or lease property. Two critical components of property management are leasing and renting, which are considered real estate activities under existing Texas real estate licensing laws. If a property manager is going to lease (or list for lease) real estate, or negotiate or attempt to negotiate for the lease of real estate, or aid in locating real estate for lease, control the acceptance or deposit of rent from a resident of a single family residential property unit, or if he or she holds himself/herself out as engaging in any of those activities, he or she will need a broker's license. A salesperson working under a broker may engage in such activities. One of the exceptions is salaried employees of property owners need not have a real estate license for managing or leasing property owner by the employer. Before hiring a property manager to manage your Texas rental property, you should always check that he or she is licensed appropriately. You can check the license status of Texas property managers on TREC website.