Do you need a Realtor license to be a property manager in Colorado?

Question

All,

I understand that to be a property manager in Colorado you must be a licensed realtor.  Can anyone verify if this is accurate?

Also, does this apply to an owner who owns and manages their own portfolio?  Or only to properties being managed in an external Property Management function?

Thank you.

Kevin

Steve K. · Answer

I think your biggest issue with any "work-arounds" is going to be your legal liability and holding the proper insurance in case something goes wrong, which I'm going to assume you'd need to be properly licensed in order to be properly covered by insurance.

As an agent, I make sure to avoid any activities that could be considered managing properties that I do not own because I am not insured for that. You can ask an attorney about having them on retainer but I'm guessing they would not want that liability either and it might end up being more expensive than just getting your license. Personally I would just get the proper licensing and insurance if I wanted to manage properties for others.

Trace Adams · Answer

Steve - if I were considering starting a STR/MTR property management company but do not have a real estate license, are there workarounds? For example, for any lease-related activities (negotiating terms/pricing, signing lease, etc.) could I just have a real estate attorney on retainer to do these activities? Or have a real estate agent on staff to do them?

Thanks!

Krista Lance · Answer

@Steve K. thanks! That's helpful!

Ian Landy · Answer

What about if you set up a maintenance company that maintains all of the properties, then you have a real estate attorney prepare all of the lease agreements. Do you still need to have a licensed brokerage company?

Mike Dumas · Answer

Is it right that short term rentals are considered as licensing the property for use (similar to a hotel) and not a lease for a long term rental and therefore do not require a brokerage license to provide management services that include price adjustments?

https://drive.google.com/file/d/1m43wp-WZGjtzeFhnb2nV-aJxdMO...

Steve K. · Answer

Hi Krista, Yes you need a broker's license to legally manage property that you do not own in CO. The only exception is for on-site managers, like you'd find living in one unit of an apartment building and managing the building on behalf of the owner. These folks do not need to be licensed but there are limits on what they can and can't do, and they have to be salaried employees of the owner or report to a licensed property manager. As a co-host for short term rentals, you may not need a license as long as you're not crossing over into activities that could be considered brokerage activities like handling any contracts, collecting rents, doing any accounting, approving tenants, etc. You'd have to stick to tasks like messaging guests, scheduling cleaners, etc. Here's more info on what co-hosts can do according to Airbnb: https://www.airbnb.com/help/article/1534

Michael Smythe · Answer

@Kevin Greer this took 10 seconds to Google:

https://dre.colorado.gov/working-licensed-real-estate-profes...

@Randy Rought you are confusing agent & broker licenses. Appears that in Colorado you need a brokers license, which is what you were referring to.

Krista Lance · Answer

Hi all - I have a new-modern day question regarding this: What about if I want to manage a "medium-term" rental (i.e. 30 days or more). TECHNICALLY, this falls within the long-term laws because there are only 2 categories - long-term or short-term. I have a client who wants to rent his home for 30 days or more, but not full year leases, just a few months at a time. Would I need a Real Estate License / Property Management business for this? Thanks for the help!

Randy Rought · Answer

To be a property manager for others in Colorado, you DO need the Real Estate license. Years ago, being a property manager was what I planned on doing for my retirement gig. Handle a few properties for other owners, minor repairs, find new tenants, and rake in 10% .

Here in Colorado, you need to have a real estate license, and in order to get your license you need to go through what basically amounts to an apprenticeship for two years (associate), before you can have your own firm.  If you are the property owner, you can manage your own properties without the license. There are some great on-line real estate courses, and I have found the information within them has really been helpful for my investment business.

Jon Holdman · Answer

As an owner you're allowed to manage your own properties.  You still have to comply with all relevant laws.  You need a license if you're going to manage other people's properties.

Do you need a Realtor license to be a property manager in Colorado?

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