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One thing both landlords and property managers have in common is the role of overseeing rental properties, but the latter requires certain real estate licenses to practice. Learn the requirements for both so you can discover the crucial aspects of being a landlord or property manager in Texas.
Does a Landlord Need a Real Estate License in Texas?
Texas law allows property owners to rent out their property without a real estate license. Landlords need to keep in mind that there are still real estate permits and registrations to obtain, or are encouraged to acquire, to rent their property out legally.
Rental Property Registration
No ordinance covers the entire state of Texas. Some cities do have registration requirements, such as Dallas, where landlords need to register their rental property each year with the city. Consult professionals with local expertise, like real estate brokers, to be sure.
Sales and Use Tax Permit
If you are a property owner renting or leasing property in Texas, you are required to obtain a Texas sales and use tax permit. This applies to individuals, partnerships, corporations, or other business entities operating in Texas.
Health and Safety Inspection
Since landlord-tenant law states that rental properties must be habitable, property owners are expected to comply with the health and safety standards that have been set. That means that the electrical, plumbing, and HVAC systems should be in working order, and the structural integrity is sound.
Does a Property Manager Need a Real Estate License in Texas?
The short is yes. Texas property managers are required to acquire a real estate broker license to practice their trade if their duties include showing or leasing the property for the owner for which the manager gets paid, as per the Texas Real Estate Commission.
To be accredited for a real estate broker license, you need to pass the broker's exam, as well as show proven experience in the field as a licensed sales agent with 10 to 100 hours of broker training courses.
Among the exceptions to this requirement of a broker's license are community association managers and condo association managers.
What You Need to Be a Certified Property Manager
A real estate broker license status won't be enough to attract clients who need professional property management. There are property management certifications you can get to gain an edge and become a master property manager in Texas.
Here are organizations that provide courses and licenses for property managers:
- Institute of Real Estate Management (IREM)
- National Apartment Association (NAA)
- National Association of Residential Property Managers (NARPM)
- National Association of Realtors (NAR)
- National Apartment Leasing Professional (NALP)
What You Need to Be a Licensed Property Manager
Certifications are different from a license, and if you want to be among the top Texas property managers, you will need a Texas real estate license. By being a licensed property manager, the Texas Real Estate Commission (TREC) will allow you to lease and rent out properties on behalf of a property owner or landlord.
You can choose to work under the supervision of a licensed real estate broker or a property management firm, but you can also pave your own way as a property manager in Texas. If you have a license, you can also be a real estate sales agent and generate extra income.
To qualify, you must fulfill the following licensing requirements:
- Being 18 years old or older
- Being a US citizen or a lawfully admitted alien
- Meet TREC's qualifications for honesty, trustworthiness, and integrity
- Complete 180 hours of approved Pre-Licensing education.
- Pass the course final exams
- Complete the license application
- Provide necessary information and fingerprints
- Pass the Texas Real Estate Salesperson License Exam
- Select a sponsoring broker
What You Need to Start a Property Management Business
When you reach a certain point in your property management career, starting your own property management company might be the next big step. Texas can be particular about the requirements to start a property management company, such as:
- Being 18 years old or older
- Being a US citizen or a lawfully admitted alien
- 270 classroom hours of core real estate classes
- An additional 630 hours in related courses acceptable to the Commission, such as a bachelor's degree
- Qualifying experience per Commission guidelines and have at least four years of experience in Texas as a licensed real estate salesperson or broker
- Payment of the $375.50 application fee
- A recovery Trust Account fee of $10
- Fingerprint submission and background check
If you intend to head your own property management company, you will need a Texas real estate broker license.
Note: Lease renewal is prohibited by property management laws if the licensee has defaulted on a student loan guaranteed by the Texas Guaranteed Loan Corporation.
Texas Real Estate License FAQs
How long does it take to acquire a property management license in Texas?
- Qualifying as a real estate manager typically takes around four to six months. Initially, you must complete a real estate education course and pass the required exams to become a licensed professional.
What is the average salary of a property manager?
- That can depend on whether you work under a property management company or not, but a licensed property manager can earn up to $100,000 a year.
When do I need licensing requirements?
- When you intend to start a property management company, conduct real estate transactions, or generally enter the real estate industry. While it's not required in some cases, many property managers opt to get certified or licensed to gain an edge in the property management field.
Go For the Easier Route with Precision Realty
You can enter the real estate industry without having to go through all the steps to become a property manager. At Precision Realty and Management, you can easily earn by being a referring agent. We have designed an Agent Referral program to give the same level of care and attention that you would give to your clients.
If you want to learn for the sake of efficient property management, you can hire us for a full property management service. With experience and expertise under our belt, your rental property would be cared for as we handle maintenance requests, rent collection, managing tenants, and other crucial property management responsibilities.
We would love to tell you all about how we can benefit each other. Give us a call, and you can determine whether we are the right company for your real estate goals.
