Can a Real Estate Agent Be a Property Manager? Requirements, Benefits, and How to Start

Understanding the Relationship Between Real Estate Agents and Property Managers

Many individuals interested in the real estate industry often ask whether a real estate agent can also serve as a property manager . The short answer is: yes, in most states, a licensed real estate agent can legally act as a property manager . However, the precise requirements, exceptions, and pathways depend on state regulations and the specific nature of property management tasks.

What Is Property Management and How Does It Overlap with Real Estate Practice?

Property management involves handling the day-to-day operations of rental properties on behalf of the owner. Core responsibilities include finding and screening tenants, negotiating leases, collecting rent, maintaining the property, and representing the owner’s interests in rental transactions. These duties frequently intersect with activities regulated by real estate law, such as leasing and negotiating rental agreements.

For example, in states like Ohio, activities such as showing property, negotiating lease terms, and collecting rent are defined as real estate activities, requiring a real estate license [4] . This overlap means that real estate agents are generally authorized to perform property management functions, provided they adhere to state licensing requirements.

Licensing Requirements for Property Managers

Most states require a real estate license to engage in property management for others and for compensation. The rationale is that property management tasks often involve legal contracts and negotiations similar to those in traditional real estate transactions [1] . For example:

Ohio: A real estate license is required for anyone who, for a fee, manages or rents property for another person. This includes negotiating leases, setting lease terms, and collecting rent [5] .
Other States: Requirements may vary, but most either require a real estate license or a specific property management license. Some states have additional certification options through recognized organizations such as the Institute of Real Estate Management (IREM) [1] .

To verify the requirements in your state, you can consult your state’s real estate regulatory agency. Many states offer online resources and licensing lookups through their official Department of Commerce or Real Estate websites.

Common Exceptions and Special Cases

There are a few important exceptions to the licensing rule:

Property Owners: Individuals managing their own properties do not typically require a license.
Onsite Employees: Some states exempt W-2 employees managing property owned by their employer from licensing requirements.
Court Appointees: Individuals appointed by the court, such as executors or trustees, are often exempt when managing specific properties.

Always review your state’s official guidelines or contact the relevant department for clarification, as these exceptions can vary in scope and application [4] .

How a Real Estate Agent Can Become a Property Manager: Step-by-Step

If you are a real estate agent considering expanding your career into property management, here are the typical steps:

Verify State Requirements: Every state has specific licensing and educational requirements. Start by visiting your state’s Department of Commerce or Real Estate regulatory board to review the latest property management statutes.
Complete Required Education: Many states require specific coursework related to real estate or property management. These can often be taken online or at accredited institutions [1] .
Pass the Licensing Exam: If you do not already hold a real estate license, you will typically need to pass a state licensing exam. This process may include both coursework and a test covering real estate law, contracts, and ethical standards.
Find a Sponsoring Broker (If Required): In many jurisdictions, real estate agents must work under the supervision of a licensed broker. This is also true for property management activities [2] .
Consider Professional Certification: While not always required, certifications from organizations like the Institute of Real Estate Management can enhance your credibility and open more opportunities.
Apply for Property Management Positions or Start Your Own Business: With the proper licensing, you may seek employment with property management firms, real estate agencies, or operate independently (where permitted).

Benefits of Combining Real Estate Sales and Property Management

For real estate agents, expanding into property management can diversify income streams and provide more stable, recurring revenue. Unlike sales, which are often commission-based and unpredictable, property management typically involves steady management fees.

Agents who manage properties can also build long-term relationships with property owners, which may lead to future sales listings or referrals. Furthermore, property management experience deepens knowledge of local markets, which can enhance a real estate agent’s advisory services and overall value proposition.

For example, an agent who helps an investor buy a rental property can then offer management services, providing end-to-end solutions that increase client satisfaction and loyalty. Many agencies now offer both sales and property management divisions to meet this demand [3] .

Challenges and Considerations

Despite its benefits, property management comes with unique challenges:

Legal Compliance: Property managers must stay current with landlord-tenant laws, fair housing regulations, and local ordinances.
Time Management: Managing multiple properties can be time-consuming, requiring excellent organization and responsiveness.
Conflict Resolution: Property managers often handle disputes between tenants and owners, requiring strong communication and negotiation skills.

To address these challenges, consider joining professional associations, attending continuing education courses, and leveraging property management software for efficiency.

Alternative Pathways and Additional Opportunities

Some states and organizations offer specialized property management certifications or designations, such as the Certified Property Manager (CPM) from IREM. These programs may not be required by law but can set you apart in a competitive market. Additionally, some agents partner with licensed property management firms to refer business or handle only certain aspects of management.

If you are not yet a licensed real estate agent but are interested in property management, you can begin as an assistant or onsite manager (where permitted) and work towards required credentials over time [1] .

How to Access Property Management Opportunities

If you are seeking property management services or want to verify a manager’s license, follow these steps:

Visit your state’s Department of Commerce or Real Estate division website for official directories and licensing lookup tools. For example, in Ohio, you can use the License Lookup function provided on the Department of Commerce website.
Contact local real estate agencies to inquire about property management divisions or referrals.
Consider national professional organizations such as the National Association of Residential Property Managers (NARPM) or Institute of Real Estate Management (IREM) for certified professionals in your area.

For those wishing to transition into property management, reach out to your real estate broker for guidance, explore continuing education options, and network with local property management professionals for mentorship opportunities.

Key Takeaways

Licensed real estate agents can generally act as property managers in most states, provided they meet state-specific licensing requirements. This dual role offers career flexibility, steady income, and opportunities for professional growth. However, it’s critical to understand and comply with all legal, ethical, and practical obligations associated with property management.