Property Management in Texas


Is any sort of license required to call yourself a "Property Manager" in Texas?
Here is the reason I ask. I own several properties I manage myself. When I deal with tenants, I never tell them I am the owner, I tell them I am the property manager. Similarly, when I am looking at property to buy, I tell the seller I am a property manager.
One seller said "If I decide not to sell this house, what would you charge to rent it and manage it for me?" In another case, a realtor told me "You should not call yourself a property manager unless you have a license."
 I have read that some states require a real estate license before you can call yourself a property manager. But what about Texas?

Bud Branstetter:
Yep, I believe that is the case.   If you manage property for someone else then you are supposed to be a licensed realtor.  Or you can work for the company that has a licensed realtor.  Or someone that you employ for the company you own to manage your own properties.  

Of course, if you were the trustee of a land trust that had that persion as the beneficiary then you would own title and be able to manage it with violating that provision.

The previous answer was not correct, you can manage property in Texas without a license, collect rents maintance the property etc,but you cannot write lease aggrements without a license.

Preliminarily, the real estate brokerage activities must be "for another" person or entity. This means that persons who are buying, selling or leasing their own property do not need a license; they are acting for themselves and not for another person. The activities must also be for a fee or something of value, or with the intention of collecting a fee or something of value. This means, for example, that an unlicensed person whose neighbor has been transferred out of state may solicit tenants and negotiate a lease on behalf of the neighbor so long as the person does not receive or expect to receive anything of value for helping.

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, and as used in the paragraph above, are those activities in which a person directly helps another buy, sell, or lease real property. These activities, such as negotiating a listing agreement with a property owner, spending the afternoon with a couple showing houses for sale, or negotiating a contract to buy or lease real property, obviously require licensure. These "direct" activities are seldom the subject of debate or controversy.

The second category of activities might be referred to as "indirect" activities and are more troublesome. Section 1101.002(a)(ix) of the License Act requires licensure of those persons who procure or assist in procuring prospects to buy, sell, or lease property. Section 1101.002(a)(x) of the License Act requires licensure of those persons who procure or assist in procuring properties to be bought, sold, or leased. If the words "assist in" were read broadly enough, virtually everyone working in a real estate office would need a license. Common sense dictates, however, that many activities can be legally conducted in a real estate brokerage office that do not require licensure. There may sometimes exist only a thin line between those activities that require licensure and those that do not. The foregoing general rules and the following discussion of factual situations may help licensees accurately draw this line.

Thanks, Sterling! It is great to get a response from someone who is obviously knowledgeable! I found the in that same URL, and it precisely answers my question. Basically, I am fine managing my own property, but without a license I cannot manage for other people.

"Commission Rule 535.13(b) states that those who hold themselves out as "property managers" for others and for compensation must be licensed, provided the person also rent or leases the property for the property owner. However, many property management functions appear to fall within categories of activities that do not require licensure. These include bookkeeping functions and arranging for repairs. So long as an unlicensed person carefully limits his or her property management activities to those which do not require a license, neither criminal charges nor Commission disciplinary action would be warranted. Note that persons acting as on-site managers at apartment complexes are exempt from licensure under Section 1102.005(7) of the License Act. "

Does anyone out there know the answer to the same question but regarding OH.  I am about to move to Pittsburgh, and I have a friend who does an excellent job managing his own properties, who I would feel safer with than I would a mgt. co.  Can I get away with this in OH, he would be handling leases too.



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