Non-licensed property managers are becoming increasingly common in the real estate industry. While some states require property managers to have a real estate license, others do not. As a result, many people are wondering what exactly a non-licensed property manager is allowed to do.

Generally speaking, non-licensed property managers are allowed to perform a variety of tasks related to property management. These may include tasks such as showing rental properties, screening tenants, and collecting rent. However, there are some tasks that non-licensed property managers are not legally allowed to perform, such as negotiating rental agreements or contracts, and approving rental applications or leases.

It’s important to note that the specific tasks that a non-licensed property manager is allowed to perform can vary depending on the state in which they are working. Some states have very strict regulations regarding what non-licensed property managers can and cannot do, while others are more lenient. As a result, it’s important for property managers to familiarize themselves with the laws and regulations in their particular state.

What is a Non-Licensed Property Manager?

A non-licensed property manager is a person who performs property management activities without holding a property management license or a real estate broker’s license. Property management activities may include advertising rental properties, screening tenants, collecting rent, maintaining rental units, and handling tenant complaints.

Non-licensed property managers may work for property owners or real estate brokers, or they may work independently. They may also work in residential or commercial property management.

While some states require property managers to be licensed, others do not. In states that require licensing, non-licensed property managers may be limited in the activities they can perform.

Non-licensed property managers may perform some or all of the following activities:

  • Advertising rental properties
  • Screening tenants
  • Collecting rent
  • Maintaining rental units
  • Handling tenant complaints

However, they may not be able to perform other activities that require a license, such as negotiating leases, showing rental properties, or setting rental rates.

Non-licensed property managers may be able to offer lower rates than licensed property managers, but property owners should be aware of the risks of using a non-licensed property manager. Non-licensed property managers may not be familiar with local property management laws and regulations, and they may not have the necessary experience or expertise to handle complex property management issues.

In summary, a non-licensed property manager is a person who performs property management activities without holding a property management license or a real estate broker’s license. While they may be able to offer lower rates than licensed property managers, property owners should be aware of the risks of using a non-licensed property manager.

Responsibilities of a Non-Licensed Property Manager

Responsibilities of a Non-Licensed Property Manager

As a non-licensed property manager, there are several responsibilities that you can perform in the area of residential property management. These responsibilities include leasing activities, maintenance and repairs, collecting rent and deposits, residency and disclosure, and clerical and administrative tasks.

Leasing Activities

A non-licensed property manager can exhibit or show residential rental units to prospective tenants and furnish published information regarding the property. They can also supply applications and leases and receive applications and leases for submission to the owner or broker for approval. It is important to note that the non-licensed property manager cannot sign the lease agreement on behalf of the owner or broker.

Maintenance and Repairs

A non-licensed property manager can coordinate and schedule maintenance and repairs with the owner’s approval. They can also communicate with tenants regarding maintenance requests and ensure that repairs are completed in a timely and efficient manner.

Collecting Rent and Deposits

A non-licensed property manager can collect or accept rents and/or security deposits which are made payable to the owner or real estate brokerage. They can also ensure that all rent and deposits are properly accounted for and deposited into the appropriate accounts.

Residency and Disclosure

A non-licensed property manager must comply with all residency and disclosure requirements as set forth by state and federal laws. This includes providing tenants with all required disclosures and ensuring that all residency requirements are met.

Clerical and Administrative Tasks

A non-licensed property manager can perform a variety of clerical and administrative tasks, including but not limited to, answering phones, responding to emails, and maintaining records and files. They can also assist with the preparation and distribution of marketing materials and other promotional items.

In conclusion, while a non-licensed property manager has limitations on what they can do, they can still perform many important tasks related to residential property management. By understanding their responsibilities and limitations, they can provide valuable support to property owners and real estate brokerages.

Licensing Requirements for Property Managers

When it comes to property management, there are certain licensing requirements that vary by state. In this section, we will discuss the licensing requirements for property managers in California, Oregon, and Ohio.

California Licensing Requirements

In California, property managers are required to have a real estate broker’s license to legally operate. This license can be obtained by passing a licensing exam and completing criminal background checks. The California Department of Real Estate is the governing body that oversees the licensing process and ensures that all property managers meet the necessary requirements.

Oregon Licensing Requirements

In Oregon, property managers are required to have a property management license. This license requires 60 hours of approved education, passing a licensing exam, and completing criminal background checks. The Oregon Real Estate Agency is responsible for overseeing the licensing process and ensuring that all property managers meet the necessary requirements.

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Ohio Law and Licensing Requirements

In Ohio, property managers are not required to have a real estate license or a property management license to operate. However, if they engage in any real estate transactions, they must have a real estate license. Additionally, property managers must comply with Ohio law, which requires them to provide certain disclosures to tenants and maintain accurate records.

It is important to note that licensing requirements can change over time, so it is important to stay up-to-date with the latest regulations in your state. Additionally, it is always a good idea to work with a licensed professional to ensure that you are in compliance with all applicable laws and regulations.

In conclusion, property managers must meet certain licensing requirements in order to legally operate in their respective states. These requirements can vary by state and can include education, licensing exams, criminal background checks, and more. By staying informed and working with licensed professionals, property managers can ensure that they are in compliance with all applicable laws and regulations.

Benefits of Hiring a Licensed Property Manager

Hiring a licensed property manager can provide numerous benefits for property owners. Here are some of the most significant advantages:

Expertise and Knowledge

A licensed property manager has the necessary expertise and knowledge to manage a property effectively. They are familiar with local laws and regulations, as well as the best practices for managing properties. They can provide valuable guidance on how to maximize rental income, minimize expenses, and maintain the property’s value.

Tenant Screening and Selection

A licensed property manager can handle tenant screening and selection, which is a critical part of property management. They can ensure that tenants are reliable, responsible, and financially stable. They can also help avoid legal issues related to discrimination and fair housing laws.

Rent Collection and Financial Management

Rent Collection and Financial Management

A licensed property manager can handle rent collection and financial management, which can be time-consuming and stressful for property owners. They can ensure that rent is collected on time and that expenses are paid promptly. They can also provide detailed financial reports and help with tax preparation.

Property Maintenance and Repairs

A licensed property manager can handle property maintenance and repairs, which can be a significant burden for property owners. They can ensure that the property is well-maintained and that any repairs are handled promptly and professionally. They can also coordinate with contractors and vendors to ensure that work is done efficiently and cost-effectively.

Legal Compliance

A licensed property manager can ensure that the property is in compliance with all applicable laws and regulations. They can help avoid legal issues related to tenant-landlord disputes, fair housing laws, and other legal matters. They can also help with eviction proceedings if necessary.

Compensation

A licensed property manager typically charges a fee for their services, which can vary depending on the scope of services provided. However, the benefits of hiring a licensed property manager can far outweigh the costs, especially for property owners who do not have the time, expertise, or resources to manage their properties effectively.

Overall, hiring a licensed property manager can provide numerous benefits for property owners, including expertise and knowledge, tenant screening and selection, rent collection and financial management, property maintenance and repairs, legal compliance, and more.

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Conclusion

In conclusion, it is important to note that non-licensed property managers have limitations on what they can do when it comes to managing properties. However, there are still a number of tasks that they can perform to assist property owners.

When it comes to policies and procedures, non-licensed property managers can assist with creating and implementing them, but the final decisions should be made by the property owner. In the event that a dispute arises, small claims court may be necessary to resolve the issue. It is important to seek legal advice before proceeding with any legal action.

For entrepreneurs looking for business opportunities, professional property management is a great option. With the rental market expected to continue to grow in the coming years, there is ample opportunity for growth and success.

It is also important to keep in mind the impact of inflation on rental prices. Property owners should stay up-to-date on published information and be prepared to adjust rental prices accordingly.

While non-licensed property managers cannot engage in real estate sales or leasing activities, they can assist with routine maintenance and showing properties to prospective tenants. However, rental applications and leases for submission should be handled by a licensed real estate professional.

Property owners should also be aware of property management laws and licensing laws in their state to avoid fines and legal issues.

Overall, non-licensed property managers can provide valuable training and support to property owners, as long as they understand their limitations and follow the terms and conditions set forth by licensing laws.

Frequently Asked Questions

What tasks can an unlicensed property manager legally perform?

An unlicensed property manager can perform a variety of tasks related to property management, such as advertising rental properties, screening tenants, collecting rent, and handling maintenance requests. However, they cannot engage in leasing activities or collect rents on behalf of the property owner without a license.

What is the difference between a licensed and unlicensed property manager?

A licensed property manager has completed the necessary education and training requirements, passed a state exam, and obtained a license to practice property management. They are also required to adhere to state laws and regulations governing property management. On the other hand, an unlicensed property manager has not met these requirements and may not be knowledgeable about the legal and ethical responsibilities of property management.

What are the consequences of practicing property management without a license?

Practicing property management without a license can result in legal and financial consequences. In many states, it is illegal to engage in property management activities without a license, and violators may face fines, penalties, and legal action. Additionally, unlicensed property managers may not have the necessary knowledge and skills to effectively manage properties, which can lead to costly mistakes and legal liabilities.

What are the requirements to become a licensed property manager?

The requirements to become a licensed property manager vary by state, but typically involve completing a certain number of hours of pre-licensing education, passing a state exam, and meeting other eligibility criteria such as a criminal background check and proof of insurance. Continuing education may also be required to maintain the license.

What laws govern property management in North Carolina?

In North Carolina, property management is governed by the North Carolina Real Estate Commission, which regulates property managers and sets standards for licensing, education, and ethical conduct. Property managers in North Carolina must also comply with state and federal laws related to fair housing, tenant-landlord relationships, and property maintenance.

What are the benefits of hiring a licensed property manager?

Hiring a licensed property manager can provide several benefits for property owners, such as ensuring compliance with state and federal laws, minimizing legal liabilities, and improving tenant relations. Licensed property managers are also required to adhere to ethical standards and have the necessary knowledge and skills to effectively manage properties.

About the author 

Eric Lee

Eric, Co-Founder of REIInsiders, brings extensive real estate investing expertise and a finance background to drive growth and oversee marketing and business development efforts.

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