Broker license a property manager requirement in California?

Question

I've just read that to be an outside property manager in California one must have a brokers license, not just a real estate salesperson license. Is this true?

Rusty Eddy · Answer

One way around needing a brokers license is if you are a principal, meaning you have a financial interest in the property.  Such as a Master Lease Agreement (aka Sandwich Lease), you arrange to be the master tenant from the owner, then sublet the property.

Craig E. · Answer

To own/operate your own outside PM company, yes.

Michael Quarles · Answer

In California anyone can own a Brokerage Company... You'll just need to hire a managing Broker, pay them 200 a month, and have your license with theirs...

There are a lot of retired Brokers willing to be that Broker...

James T · Answer

Rusty,

Thank you for the reply. I currently manage my own properties(in Los Angeles,CA) and had someone ask me to manage a few they currently have. I don't have a license(broker or salesperson) so I am trying to figure out how I could manage legally without a license. I called my lawyer about the master lease idea but he thought a broker would still have to sign off on it to make it valid. Also told me to contact the DRE before I go forward with anything(left a message today and no call back yet).

Any help or suggestions would be appreciated.

James T · Answer

Hey Brian P,

Could you explain in more detail how you go about getting around it?

Thanks,

james

Brian P. · Answer

Mark

What the others said is true, however there is a legal way around it but it limits your clientele, but on the other hand you can make more money net.

Mitch Kronowit · Answer

What Craig said.

Real estate sales license if you're going to manage property while working for a PM firm, a broker's license if you're setting up your own shop.

http://www.ehow.com/how_6699996_become-property-manager-california.html

Broker license a property manager requirement in California?

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