Do Property Managers Need a Real Estate License in Colorado?
There are many different ways to pursue a career in real estate. If working as a real estate agent who helps clients buy and sell homes doesn’t align with your interests and career goals, you can work on the property management side of real estate. Being a property manager can provide you with a fulfilling career and a good income, making it an attractive option for many individuals interested in working in real estate.
Before becoming a property manager, it’s important to understand what this job entails and the licensure requirements associated with the role.
When Is a Real Estate License Required for Property Management?
In general, property managers in Colorado are required to have a real estate license if they are involved in leasing, collecting rent, handling security deposits or other core duties associated with managing properties on behalf of property owners (see below for a detailed discussion of property manager responsibilities).
There is one exception to this requirement. On-site residential managers of apartments or condos who are salaried employees and don’t negotiate lease terms don’t have to get a Colorado real estate license. An unlicensed on-site manager doesn’t have to be supervised by a licensed broker, unless they work for a brokerage firm. They cannot be paid on a commission basis. They are considered to be employees of the property owner or brokerage firm, and their duties are limited in scope compared with a property manager with a real estate license.
Do Property Owners Need a Real Estate License to Manage Their Own Rental?
You don’t need a real estate license if you own a rental property and perform all property management duties yourself. However, you will still be required to follow all local, state and federal laws and regulations governing rental properties.
Acting as the property manager for a rental property you own can help you eliminate property management costs and save you money. However, it’s important to understand that you will shoulder additional risk in these situations associated with noncompliance if you’re not familiar with all the laws governing rental property management. This is why it’s often better to work with a property management group that has the proper licensure and training to execute all of these duties in compliance with the law.
Why Do Property Managers in Colorado Need a Real Estate License?
There are several reasons why property managers are legally required to have a real estate license in Colorado. Licensure ensures:
Accurate Knowledge of Current Rental Laws and Regulations – There are many laws and regulations governing property management in Colorado. Maintaining a valid real estate license ensures property managers remain current on all these regulations as they change over time.
Proper Trust Accounting Practices Are Followed – There are regulations governing trust accounting practices associated with the handling of rents and security deposits. Licensure ensures property managers will understand the proper accounts required to hold this money.
Tenants’ Rights Are Protected – The state of Colorado provides certain legal rights and protections to tenants. Licensure ensures property managers will understand the rules and rights protecting tenants renting their properties, as well as the responsibilities owners have to their tenants.
Key Responsibilities of Property Managers
Property managers are responsible for performing the following functions:
Negotiating Lease Agreements – Property managers are responsible for drafting and negotiating the terms of lease agreements for the rental properties they manage. They must ensure the terms of the lease agreements they create are in compliance with Colorado law.
Managing Rent – Managing rent is one of the core duties of a property manager. This involves setting rent prices, collecting rent, enforcing payment policies, adjusting rent to reflect changes in market conditions, providing payment options, and managing financial records of all rent transactions.
Managing Security Deposits – Property managers must ensure security deposits are handled in compliance with Colorado law and all records of security deposit transactions are up to date. Under Colorado law, security deposits must be kept in a separate account, and there are specific rules governing interest payments and deposit returns.
Tenant Relations – Property managers are responsible for vetting potential tenants by performing all necessary background checks required by law, including rental history and criminal background checks. In addition, they must make sure all tenants understand their responsibilities under the terms of the lease, and they must handle any tenant disputes that arise during the lease period.
Property Maintenance – Overseeing maintenance requests and making sure all rental properties are properly maintained according to Colorado law is a core responsibility of property managers.
Legal Compliance – Property managers must stay up to date on local, state and federal laws impacting property management in their area.
Property Inspections – Property managers must make sure regular inspections are conducted on their rental properties to ensure the property is in good condition and to identify any potential issues that need to be addressed.
Marketing Rental Properties – When rental properties become available, property managers must advertise these properties to attract potential tenants.
Coordinating Evictions – In the event that an eviction is necessary, property managers must handle this process and ensure it adheres to all legal requirements.
Colorado Real Estate School Will Set You Up for Success as a Property Manager
If you’re interested in becoming a property manager, getting your Colorado real estate license is the first step in the process to launching your new career. At Colorado Real Estate School, our online real estate courses are packed with all the important information you need to pass the real estate exam and build a successful career.
Our online real estate courses are developed and taught by local, licensed real estate professionals with intimate knowledge of the latest trends impacting the Colorado real estate market. This expertise and insight will ensure you not only learn the material contained on the exam, but also understand the most pressing issues that will impact you as you start managing rental properties. With our online format, you’ll have the ability to work through all the course materials at your own pace, making it easier to fit your studying into a busy schedule that includes work and family responsibilities.
You’ll also benefit from our VideoConnect Success Learning System™ containing the largest library of instructor-led video content available. This video content enhances your overall learning experience by providing engaging lessons that mimic an authentic classroom environment.
At Colorado Real Estate School, we’re committed to your success, and we back up this commitment with our TruSupport Pass Guarantee™. If you don’t pass your real estate exam on the first try, you’ll receive extended access to all course materials and receive a customized study plan from an instructor who analyzed your previous results to identify the areas where you need the most work. This will ensure you devote your study time to the items that were most challenging to you when you first took the exam. Our tailored study plan will place you in the greatest position to master this information and achieve a successful outcome the next time you retake the exam.
Contact us today to learn more about our online real estate courses.
