What Kind Of License Do I Need To Manage Rental Properties?
I own a duplex in California which I rent out to tenants. Several homeowners in the neighborhood want to pay me to help them rent out their properties and take care of the houses. Do I need a real estate license to do this?
In California, it is not necessary to have a license when managing rental properties which you own, as is the case with your duplex. However, if you are going to manage income properties for others, then you will need a real estate license. In order to get a real estate license, you will need to complete a state approved real estate course and pass a licensing exam. Once you have accomplished those tasks, then you must find a licensed real estate broker who is able to act as your supervising broker while you are a real estate agent.
As a supervised real estate agent, all sales contracts, listings, and leases which you work on will need to be approved by your managing broker. Most managing brokers require their sales agents to share a percentage of their earned commissions with them, and presumably this commission split is the broker's compensation for the office overhead and agent training. As a real estate agent, you can specialize in property management and sell and list properties as well. After a while, you may become a real estate broker who works independently from a supervising broker, in which case you could operate your own property management business.