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By Daniel Rodriguez•Last Updated June 27, 2025

Do Property Managers Need a Real Estate License? State-by-State Requirements and How to Get Started

Understanding Property Management Licensing Requirements

Property management is a dynamic profession involving the oversight and care of residential, commercial, or vacation properties on behalf of owners. A critical question for those entering the field or seeking to hire a property manager is whether a real estate license is required. The answer varies by state, the scope of duties, and ownership status. Knowing these details is essential for compliance and professional growth.

When Is a Real Estate License Required for Property Managers?

Across the United States, licensing laws are determined at the state level, and the requirements for property managers can differ significantly:

General Rule: In most states, if you are managing properties on behalf of someone else for compensation (money, goods, or services), and your duties include activities such as marketing rentals, negotiating leases, collecting rent, or handling deposits, you must be licensed as a real estate agent or broker.

For example, in Utah , any individual who manages property for others and is compensated must hold a real estate sales agent or broker license. This includes advertising, negotiating lease terms, and executing rental agreements. However, owners managing their own property, on-site managers residing in the property, and certain employees are generally exempt from this licensing requirement. The Utah Division of Real Estate provides clear guidance on these distinctions [1] .

Similarly, in California , handling core functions of property management-such as leasing, rent collection, and negotiating rental agreements-almost always requires a real estate license. There are specific educational and age requirements, as well as a state exam to pass before you can be licensed [3] .

Key Exceptions and Special Circumstances

While the general trend is toward requiring a license, there are notable exceptions:

Property Owners: If you own the property you are managing, most states do not require you to have a real estate license. For example, in Tennessee, owners leasing their own homes do not need a license, but hiring someone else to manage the property typically does require licensing [5] .
On-Site Managers: In some states, on-site apartment or building managers (who often live on the property and receive reduced rent) may be exempt if their duties are limited to supervision, showing units, and collecting rent-but cannot negotiate leases or handle security deposits independently [1] .
Special Entities: Hotels, motels, and short-term rental managers (for stays under 30 days) are usually not required to have a real estate license in many jurisdictions [1] .
Community Associations: In Louisiana, managing a community or condo association does not require a broker’s license, but managing rentals or leases for others for compensation does [4] .

Examples of State Licensing Requirements

Below are detailed examples from several states to clarify how licensing works in practice:

Utah

Anyone engaging in property management for another party for compensation must be licensed as a sales agent or broker. There are specific documentation and trust account requirements for brokerages offering property management. Owners managing their own property, employees of a single owner, and on-site apartment managers are among the common exceptions [1] .

Texas

In Texas, a real estate license is generally required if you control the acceptance or deposit of rent from a resident or if you show or lease properties for pay. There are exceptions for salaried employees of owners, but most third-party managers must be licensed. You can verify licensing requirements and definitions through the Texas Real Estate Commission [2] .

California

Those looking to become property managers must meet age and educational requirements, enroll in an accredited real estate school, complete required coursework, and pass a licensing exam. Only after obtaining a real estate license can you legally perform most property management duties for others [3] .

Louisiana

Key property management activities-renting, leasing, listing, procuring tenants-are considered real estate activities and require a broker’s license if performed for compensation. Administrative and maintenance tasks are generally excluded. For managing community associations, licensing is not required, but for rental units, it is. You can confirm license status through the Louisiana Real Estate Commission’s online tools [4] .

Tennessee

Property owners do not need a license to lease or rent their own property. However, if you hire someone else to manage your property, that person or company must be licensed by the Tennessee Real Estate Commission unless their duties are strictly limited to showing units or collecting rent. Always verify the licensure of a property manager before hiring [5] .

How to Get a Real Estate License for Property Management

The process for obtaining a real estate license typically includes:

Meet the Basic Requirements: Be at least 18 years old, hold a high school diploma or GED, and be a U.S. citizen or permanent resident. Requirements can vary slightly by state.
Complete Pre-Licensing Education: Enroll in an accredited real estate school and complete mandatory coursework, which usually covers real estate principles, practices, and an elective subject.
Pass the State Licensing Exam: Schedule and pass your state’s real estate licensing exam. You’ll need to bring proof of completed coursework (certificates) to be eligible to take the test [3] .
Apply for Your License: Submit your application and pay the required fee. Some states require fingerprinting and background checks.
Affiliate with a Brokerage: In many states, new licensees must work under a licensed broker before operating independently.

Each state has its own licensing authority. For the most accurate and up-to-date information, contact your state’s real estate commission or licensing board. Search for the official agency name and “real estate licensing” in your state for direct access to requirements and application forms.

Hiring a Licensed Property Manager: What to Look For

If you are a property owner seeking to hire a manager, there are important steps to follow:

Always verify the property manager’s license status through your state’s real estate commission or licensing portal.
Ask for references and confirm the property manager’s experience in managing properties similar to yours.
Review the scope of services offered, including leasing, rent collection, maintenance coordination, and reporting.
Be aware that unlicensed management can lead to legal issues, fines, or voided contracts if state law requires licensure.

Alternative Approaches and Considerations

If your property management activities are limited to administrative or maintenance tasks, some states do not require a real estate license. However, as soon as you step into the realm of negotiating leases, collecting rent, or representing owners for compensation, licensing is almost always required. If in doubt, review your state’s real estate commission website for specific guidance, or contact the commission directly for clarification.

For community associations, on-site managers, and owners handling their own properties, check for specific exemptions in your state’s laws. If you operate in multiple states, be sure to comply with each state’s unique regulatory framework.

Potential Challenges and Solutions

Navigating licensing requirements can be complex, especially if you manage properties in more than one state or if your role involves a mix of administrative and leasing functions. Solutions include:

Consulting with your state’s licensing board for clarification on ambiguous situations.
Obtaining the necessary education and license to expand your property management services legally.
Structuring business operations to take advantage of licensing exemptions where appropriate (for example, focusing on administrative support or maintenance only).

Next Steps: How to Get Started or Verify Licensure

To begin a property management career or hire a property manager:

Research your state’s requirements by searching for your state real estate commission’s website and “property management licensing” section.
For aspiring managers, enroll in an accredited pre-licensing course, collect required documentation, and schedule your licensing exam.
Owners looking to hire a manager should request proof of licensure and verify status using the official state licensing portal.
For the most accurate guidance, contact your state’s real estate commission directly. Many commissions offer support lines or email for licensing questions.

By following these steps, you ensure compliance, reduce legal risks, and position yourself or your property for success in the real estate market.