Do I need a license in California to manage a rental house for a friend? He wants to compensate me for my time since he is out of state, but will make all financial and maintenance decisions. I will just be the local contact/management for repair requests from the tenant, and manage service people my friend contracts with. I will pick up the rent and deposit it into his account. He will run the credit check and make the approval. Basically, I will be a facilitator, not the decision maker. He just wants someone local since he is far away and not very reachable.
In reference to Property Management requirements in California
A California property manager or management company must have a real estate broker's license.
Key components of property management are considered a real estate activity under existing California real estate licensing laws. A broker's license is required for any person or company that, for compensation, leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase or exchanges of leases on real property, or collects rents from real property, or improvements thereon. A salesperson working under a broker may engage in such activities.
There are some exceptions to the requirement that a California property manager have a broker's license.
Certain exemptions apply. For example, certain functions can be fulfilled by an employee of a property management firm retained to manage a residential apartment building or complex, if that person is under the supervision and control of a broker who is also employed by that firm.
For more information about these and other California property management requirements and exceptions, please contact the California Department of Real Estate.
Disclaimer:Attorney and Fraud Examiner.One of few that are Certified Fraud Examiners (CFE)*. The information contained in this website is provided for informational purposes only, and should not be construed as a legal advice on any subject. No recipients of content from this site,clients or otherwise,should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. The content of this website contains general information and may not reflect current legal developments, verdicts or settlements. The Karamanlis Powers Law Offices expressly disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this website, weblogs, twitter, facebook, google+. *the certification is not a specialty recognized by the California State Bar.
The short answer is yes. You have to be a licensed real estate agent in California.
This response neither constitutes legal advice nor establishes an attorney-client relationship. Inquirers must seek the advice of their own legal counsel prior to undertaking any course of action related to his or her inquiry.
One does have to be a licensed real estate broker to be a "property manager." One does NOT have to be a licensed real estate broker to be a "property supervisor." Property managers, generally, find tenants, negotiate leases, and collect rent. You'd have to be a licensed broker to do that stuff. Being the contact person for repairs and the like does not require being a broker.
This is all very general, you should contact a local attorney to discuss the specifics and advise you on how to avoid falling on the wrong side of the law.
ATTORNEY ADVERTISEMENT. Of course, without having heard the whole story and reviewed the relevant documents, I can't give you advice, just my general opinion. If you're serious, you should contact a local attorney, rather than relying on any opining on the Internet. Jason L. Eliaser is licensed to practice law in California (State Bar number 248394.) This is a communication concerning my availability for professional employment within the meaning of California Rule of Professional Conduct 1-400(A). Viewing of this post does not constitute the provision of legal advice and no attorney-client relationship is formed by viewing or responding to this post.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline