Property Management Laws by State

Property Management Laws in Alabama

Must an Alabama property management company have a real estate broker's license?

YES. Key components of property management are considered a real estate activity under existing Alabama real estate licensing laws. A real estate broker's license is required for any person or company that, for compensation, engages in the lease or rental of real estate in Alabama, who offers real estate for rent or lease, who negotiates the rental or leasing of Alabama real estate or who lists, offers, attempts or agrees to list real estate for rental or lease. A salesperson working under a broker may engage in such activities.

Are there any exceptions to the requirement that an Alabama property manager have a broker's license?

Yes. For example, a real estate license is not required of persons acting as the manager for an apartment building or complex. However, on-site managers of condominium buildings or complexes must be licensed. In addition, if a licensed real estate company takes on the management of an apartment building or complex, the Alabama Real Estate Commission expects compliance with real estate law and rules, including running security deposits, rent and payments for repairs through a trust account.

For more information about these and other Alabama property management requirements and exceptions, please contact the Alabama Real Estate Commission.

Before hiring a property manager to manage your Alabama rental property, you should always check that he or she is licensed appropriately. You can check the license status of Alabama property managers at The Association of Real Estate License Law Officials website.

MUST-KNOW INFO FOR PROPERTY MANAGERS:

Alabama Eviction Laws

Evictions are awful - perhaps the worst task property managers must perform. If you're in the business long enough, you'll likely have to go through the eviction process at least once.

Here's a local example of an Alabama eviction: Early in 2014, the Alabama Power-owned Pleasure Point Park and Marina was cited by Tallapoosa County Health officials for unsafe conditions. According to reports, of the 70 properties on the land, 19 had failing or illegal septic systems. Shortly after this revelation, the company told residents they had six months to find new places to live.

Alabama Community Association Management Licensing

There is no requirement that a community association manager in Alabama hold a real estate broker's license. In 2010 the Alabama Real Estate Commission made some efforts to consider licensing for community association managers, but according to the Commission's legal department, those efforts didn't get anywhere.

Alabama Real Estate Broker Licensing Requirements

Alabama real estate broker licensing requirements (for those not holding a current real estate license in another state) include:

  • Citizenship/Permanent Resident: Be a U.S. citizen or lawful permanent resident
  • Age: must be at least 19 years old
  • Residency: show proof of bona fide residency in any state in the U.S.
  • High School: show proof of high school graduation or equivalent
  • Education: successfully complete an approved 60 clock hour pre-license course
  • Trustworthiness: must not have been convicted of a felony or a crime involving moral turpitude; must not have had a real estate application or license rejected or revoked in any state
  • Experience: must have held an active real estate salesperson license in any state for at least 24 months of the 36 month period immediately preceding the date of application
  • Exam: must pass the broker licensing exam

Alabama Real Estate Salesperson Licensing Requirements

Alabama real estate salesperson licensing requirements (for those not holding a current real estate license in another state) include:

  • Citizenship/Permanent Resident: must be a U.S. citizen, permanent resident alien or legally present in the U.S
  • Age: must be at least 19 years old
  • Residency: show proof of bona fide residency in any state in the U.S.
  • High School: Show proof of high school graduation or equivalent
  • Education: successfully complete an approved 60 clock hour prelicense course; AND complete a 30 hour post license training course within the first twelve months of licensure
  • Trustworthiness: must not have been convicted of a felony or a crime involving moral turpitude; and not have had a real estate application or license rejected or revoked in any state within the past two years
  • Exam: must pass the real estate salesperson exam within 12 months of completing the prelicense course

For more information about these and other licensing requirements, please contact the Alabama Real Estate Commission.

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