Limits on what an unlicensed property manager can do?
We are a small vacation rental company that manages short-term rentals for homeowners in Los Angeles. We manage ONLY transient occupancies - i.e short term stays under 30 days, for which no brokers license is required. (In California - to property manage rentals above 30 days, we would need to have a brokers license)
We have gotten some requests from guests for stays above 30 days (usually 2-3 months). Instead of denying them, can we refer them directly over to the owner for them to sign a lease with the owner who is willing to effectively manage the contract, payment and relationship BUT would still want to retain us (albeit for a lower fee) to deliver ONLY guest and property care activities (guest communications, organizing cleaning, lawn and pool care etc).
Would this be permitted if we are unlicensed? Essentially it would be supporting the owner to manage their property, and steering clear of any activities that we see as being clearly licensed activities - negotiating, taking payments etc.
Thanks in advance to anyone willing to help me think this one out!
Also, would love suggestions for how we could partner with a licensed broker to accommodate these MTR requests. For example, could we partner with a licensed broker who could handle the negotiation and money and we handle all the things related to guest and property care? Would he/she need to “employ” us, so to speak?
(For context, we are in the luxury market and the guests are very demanding - they want lots of communication, concierge etc.. and maintenance, lawn care, gardening etc is time consuming.. so there’s a big job beyond just brokering and managing managing funds)
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@Jade Smith under your proposal, you would probably need an agent license to work with a broker.
Hopefully, you have a copy of the regulations that allow your interpretation of California licensing requirements and didn't depend on someone's opinion:)
Sounds like it would benefit you to get your RE license and hang with a local broker that will allow you to property manage. Could be the next step in your journey and open you to buying and selling. Suppose one of your clients decided to cash out their property. You would be the perfect agent to sell it and collect that commission. Maybe even buy it yourself if the numbers work and you can keep renting it.
This seems to be such a fine line. The best route is to contact the Department of Real Estate and see what they say.
If business is doing well, it could make sense to get your license. It is inexpensive and you would easily make the money back by picking up more clients.
Thanks Rick. And absolutely, I’m getting my license. Just want to know what we can do in the meantime.
It’s a fine line but would love real clarity on whether it’s actually permissible.
If you are managing for compensation and for another, you need a CA broker license: CA B&P 10131
I don't see anything in there about the length of stay. I'm curious where you found the length of stay exclusion?
Just connect the renters to your home owners. Let them set a month to month lease and then pay you as the cleaner/maid/contact person. Home owners can be the "manager" and you just do the work.