Property Management Laws in Minnesota

Must Minnesota property management companies have a real estate broker's license?

YES. Key components of property management (renting and managing) are considered real estate brokerage services under existing Minnesota real estate licensing laws. If a property manager is going to lease, rent, list, procure prospects or negotiate, assist, or offer to perform any of those acts, he or she will need a broker's license. A salesperson working under a broker may engage in such activities.

Are there any exceptions to the requirement that a Minnesota property manager have a real estate broker's license?

YES. For example, employees of the owner or manager of a residential building who lease residential units in the building are exempt from the license requirement.

For more information about these and other Minnesota property management requirements and exceptions, please contact the Minnesota Department of Commerce/Real Estate Division.

Before hiring a property manager to manage your Minnesota rental property, you should always check that he or she is licensed appropriately.

Must Minnesota community association managers have a real estate broker's license?

NO. A broker's license is not required to manage community associations in Minnesota. However, The Department of Commerce has stated that if an association management company is engaged in trust activities or if it is signing contracts, then it must have a real estate broker license.

Minnesota Real Estate Broker Licensing Requirements

Minnesota real estate broker licensing requirements include:

• Experience: As of July 1, 2011, Minnesota law increased the experience requirement to at least three years experience within the five years prior to the date of application to take the broker's exam.
• Age: Must be at least 18 years old
• Education: proof of successful completion of education requirement
• Exam: must pass the broker licensing examination
• Insurance: provide proof of mandatory surety bond
• Fee: $225 (license lasts two years)

Minnesota Real Estate Salesperson Licensing Requirements

• Education: proof of successful completion of education requirement
• Age: Must be at least 18 years old
• Exam: must pass the salesperson licensing examination
• Insurance: provide proof of mandatory surety bond
• Fee: $135 (license lasts two years)

For more information about these and other licensing requirements, please contact the Minnesota Department of Commerce/Real Estate Division.