My wife and I own and manage a couple vacation rentals in southern California. We have been approached by some neighbors of our properties and they are asking about us possibly managing them. My question is what is the license needed to be able to manage a short-term rental in California? do you need to have a broker's license like you do if you were to manage long-term tenants? Any advice or help would be greatly appreciated thank you.
Hi All- I know that this is an older post but just encountered this question from my client who is looking to set up a MTR Property Management Business. In the quick research that I did, I found the guidance from the DRE at the link below that exempts Owner/Managers and a narrow exemption for folks managing STRs for compensation from the licensing requirement. It does however state that a license is required and "will be enforced" for individuals serving as Agents on behalf of owners managing properties that require a >30+ stay. Absent further clarity I would operate with the understanding that managing STRs offers a gray that you can potentially work around. Managing MTRs or LTRs however, you're better off securing your license to be on the safe side.
@Wes Delabar I don't believe there is any California mandate for licenses to manage other peoples' properties, however there could be at the city or county level that you will want to check first. I would simply reach out to the contact email for whatever municipality you are currently paying your occupancy taxes to as a first step in answering that question.
For business licenses, you will have to ask your local municipality. It's different for each city/county.
I recently took a Vacation Rental class through California Association of Realtors and the teacher said that a DRE license is not required for short term rentals, but he strongly recommends it. It is required for 30+ day stays.
If you ask the DRE, brokers, agents, or local MLS's directly, they will probably tell you that you should get it. I think it's probably best to get a license when doing work on behalf of others if you are going to scale and make a business so you won't get in trouble.
If you do get a license, then you would have to hang your license with a broker. The broker will take a split from that commission that you get.
We manage 13 STR properties on behalf of other owners and we are licensed under a broker.
With that said, I do see short term rental property management services locally with no DRE license at all.
Hi All- I know that this is an older post but just encountered this question from my client who is looking to set up a MTR Property Management Business. In the quick research that I did, I found the guidance from the DRE at the link below that exempts Owner/Managers and a narrow exemption for folks managing STRs for compensation from the licensing requirement. It does however state that a license is required and "will be enforced" for individuals serving as Agents on behalf of owners managing properties that require a >30+ stay. Absent further clarity I would operate with the understanding that managing STRs offers a gray that you can potentially work around. Managing MTRs or LTRs however, you're better off securing your license to be on the safe side.