Do you need a Real Estate License to be a Property Manager?
Do you need a real estate license to be a property manager? Yes, most of the time, but this is dependent on your current location. Property management is an in-demand profession with a low barrier to entry. Having the proper training can make it easier to get better jobs.
The word is gaining in popularity as more property owners hire a property manager to oversee the day-to-day operations of their properties because they can no longer handle the duties themselves.
Most property managers must have an asset management license or a real estate broker’s license to conduct real estate operations, such as property management and leasing.
Only a few states are exempt from this rule. A property manager handles a real estate property’s rental, leasing, and general operations. This can be a house, a housing development, apartments, or a commercial establishment.
Being a property manager is not an easy job. Keeping the day-to-day activities running smoothly requires a lot of effort. To become a real estate manager, there are specific requirements: to have a real estate license.
When Do You Need A License To Become A Property Manager?
Most states require property managers to have a proper manager’s license, a real estate agent and broker’s license, or both to conduct real estate deals and transactions. This is because many states have laws that protect the rights of tenants and landlords. Additional training and licensing are required to ensure that the property manager understands these requirements.
Requirements
If you are engaged in any of the following six activities, you will almost certainly need a real estate license:
- Publicize available rental properties.
- Draws up or discusses a property management agreement with a lessor
- Lease negotiations and lease terms
- Display a rental property.
- Be required to drive or accompany a prospective tenant to a rental property.
- Rent is to be collected.
Real estate license
If a real estate license is required, you must meet the following criteria before you are considered:
- Must be over 18 years of age and at least 21 years of age in certain territories.
- Have a high school diploma.
- A high school diploma or its equivalent is required.
- They usually have 2 to 3 years of experience in the real estate industry.
- Must be a United States citizen. State residency is required in several circumstances.
- Complete specific real estate education courses at accredited educational institutions, as the state requires.
- At a previously approved location, pass a real estate agent examination.
- Finally, must pass a background check and, in some situations, a credit check.
Property/ Asset Management License
In the unlikely event that you will need a property/ asset management license, you must also comply with this:
- Enroll in property management and continuing education courses that are approved.
- Be able to pass a criminal background check.
- Pass the examination to become a property manager.
- Be at least 18 years old and have a high school diploma or equivalent.
- Be in good standing with the state real estate board.
How Much Does a Property Manager Make?
The average compensation for a property manager, according to most experts, ranges from $40,000 to $50,000. However, this varies widely depending on experience level, education, certifications, location, and several properties maintained. Knowledge of popular systems such as Yardi, Propertyware, and Realpage and understanding the industry and technology can help you command a higher salary.
- Baltimore prices range from $40,000 to $95,000.
- Philadelphia prices range from $38,000 to $90,000.
- Washington D.C., prices range from $41,000 to $96,000, while in Richmond, prices range from $34,000 to $82,000.
Operating as a Property Administrator
Residential or commercial property administrators may function in different types of properties. They usually oversee all areas of on-site control and the financial operations of the asset. This encompasses receiving rent, processing payroll, exposing the asset to potential tenants, and paying maintenance and landscaping fees.
In addition, they attend to all feedback from renters and other community members. The property administrator is the main contact point for many building-related issues, including ensuring adherence to all regulations regarding the accessibility of units and the enforcement of leases.
License Paths for Real Estate Agents
So, if you desire to be an asset administrator, contact your state realty division and inquire about how to obtain a property management license. This information is usually available on the state’s attorney general’s website. Getting an appointment usually requires the following components:
- Receiving a particular education diploma.
- Succeeding in a licensing examination
- Completing a state application document
- Make a fee payment
You can choose one of several schools. Even states with a compilation of approved schools, such as Nevada, offer a variety of offline and online courses.
Essential Qualifications to Become a Property Manager
Only six U.S. states do not require licenses to become property managers. However, as with other jobs, there is a minimum requirement, and additional training is necessary for anyone interested in becoming a property manager.
Qualifications for a Property Manager
The minimum age you need is 18 or 21 in some states.
Be a legal resident of the United States or a legal citizen of the United States with a high school diploma or GED equivalent, and pass the real estate licensing exam (if required by state law).
Every property manager requires these fundamental skills.
A property manager is constantly in communication with someone, whether landlords, tenants, vendors, or prospective tenants. As a result, an agent requires practical verbal and written communication skills. That said, property managers write emails, respond to messages, talk on the phone, and give written notices daily.
Patience
Resolving tenant disputes or calming the nerves of an anxious landlord requires patience and effective de-escalation strategies.
Attention to detail
Managing rental properties involves handling sensitive data and legal documentation. Meticulousness is essential when drafting contracts, sending notices, and complying with all applicable regulations.
In addition, managing leasing processes maintaining billing and accounting require time management and multitasking skills.
Accounting Fundamentals
Property managers are responsible for rent payments, calculating and recording late penalties, and maintaining expense report logs. They also require basic accounting skills to fulfill their duties.
While numerous software applications help property managers keep smooth bookkeeping, familiarity with industry best practices is necessary.
Beginning Your Asset Management Enterprise
After determining how to evolve into an authorized property manager, you can choose to consider the equipment you will need to operate your company. Many managers begin their career with an established company to gain experience before venturing out independently. Consider the following:
- Create a business outline/ plan.
- Search for the necessary permits and authorizations.
- Get insurance. Specifically,
- Obtain commercial insurance to ensure that your company gets all the protection.
- Obtain general liability insurance to protect your company from legal action.
- Purchase asset management coverage to protect yourself and your business.
Average Salary for a Property Manager
The average remuneration for a property manager is $46,634. Salaries vary depending on the type of property manager—commercial, retail, or residential—the geographic area in which the property manager works, and whether the property manager works for a property management company or runs their own business.
Although property managers get payments on an annual basis, they can also be paid on an hourly basis, as needed, which is often the case with seasonal hires. Some property managers, such as apartment leasing agents, may also receive bonuses and additional compensation based on property occupancy rates.
Frequently Asked Questions
What Can an Unlicensed Property Manager Do?
For starters, a property manager does not need a real estate license if they don’t participate in leasing or rent collection. (10131: Bus. & Prof. C.)
Second, the Code exempts “a resident manager of an apartment building or apartment complex… or his or her employees” from licensing requirements, (10131.01) ((a) Business & Professional C. 10131.01).
This means that a property manager who resides on-site in an apartment building is not required to obtain a license to conduct leasing or rent collection.
In addition, employees of such on-site management are not required to hold a license. (10131.01) ((a) Business & Professional C. 10131.01))
What Does a Property Manager Do?
Lease management is one of the most critical responsibilities of a property manager, screening any tenant who applies. Either through background checks or by reviewing tenants’ credit scores. It is the intermediary who, as a property manager, must keep both the landlord and tenant informed.
They are also in charge of finances and accounting. From the collection of rent to the payment of expenses,
In addition, property managers are in charge of home inspections. The initial assessment takes place when the tenant moves in, and the final inspection takes place when the tenant moves out.
Is it mandatory for the property manager to have a license?
It depends on the property manager’s performance for the landlord.
When do you need a real estate license to manage a property?
Since each scenario is unique, contacting your state licensing department is always wise. According to Michigan Public Law, everyone involved in property management must obtain a Michigan real estate license under the term “salesperson” or “broker.”
How do Property Managers Get Paid?
They can receive compensations on a flat fee, often paid monthly, and agreed upon between the property owner and the property management agency’s sponsoring agent.
The other option is for the property manager to earn a commission on the total building rent and an incentive percentage on the number of units rented. If the property manager is not an agent, they must split the commission between the managing agent and the property manager.
Bottom line
By 2020, the U.S. property management industry will peak at more than $88 billion. The property management industry, growing steadily since 2017, offers many professional and financial success opportunities. Becoming a property manager is an excellent career choice for motivated individuals who enjoy interacting with others.
Property managers are critical components of local real estate markets. Once they complete the transactions, the property manager is responsible for the building and grounds. Typically, they also manage the building’s budget and recommend rental and sales rates to the owner.
Numerous property managers obtain specific designations. Nevertheless, the Bureau of Labor Statistics indicates that official licensing is only mandatory in eight states and the District of Columbia.
