Q: Can an HOA employee act as a property manager?

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Q: Can an HOA employee act as a property manager?

Q: Can an HOA employee act as a property manager?

Can an HOA employee handle leasing since I am basically paid by the owners through their HOA dues? 

Dallas, Texas

answer-icon-masterCan an HOA employee act as a property manager?Generally, “handling” a lease is considered by regulators to be engaging in the practice of real estate or property management.

And therefore, most states (though not all) require a real estate license – frequently a brokers’ license, which is one grade above a typical garden-variety real estate agent’s license – to handle leases. That is, to execute (sign) a lease on behalf of the landlord or property owner, or to explain any of the terms of the lease to a prospective tenant, most states will expect you to maintain a license.

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That said, many states carve out an exception for an employee who works for a single owner and who is paid by salary, rather than by commission. And yes, Texas is among them, on two counts:

So as long as you are clearly in the employ of a homeowners association (are you receiving a W-2? Are you salaried rather than commissioned?), then you should be in good shape. It won’t hurt to get that license, though. The education requirements and ongoing continuing education will probably serve you well, and if you are a quality manager, you should have a lot more options with a real estate license than without one!

 

Author Bio
Writing about personal finance and investments since 1999, started as a reporter with Mutual Funds Magazine and served as editor of Investors’ Digest. He now publishes feature articles in many publications including Annuity Selling Guide, Bankrate.com, and more.
Author Bio for Jason Van Steenwyk

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