Owning a rental property can be a great way to generate ongoing, consistent income. But one big question is whether you need a license to manage a rental property in Texas.
Managing rental property requires following all state and local laws and regulations. If you are not in compliance with these laws, then you could face potentially stiff fines or penalties.
Understanding the property management license requirements in Texas is key to successful Austin property management and generating positive returns in real estate investing.
We’ll take a closer look at that topic in this article below.
Do You Need a License to Manage a Rental Property on Your Own in Texas?
One avenue that you may decide to take is to do everything yourself. There are some major downsides to managing rental property on your own, but inexperienced real estate investors may think they can save money by doing so.
If you take this route, you likely will not have to obtain a license in Texas. You will be the person responsible for handling all aspects of rental property management, which includes:
- Getting your home ready to rent
- Listing it for rent
- Finding tenants and completing leases
- Collecting rent
- Handling maintenance requests and any issues should they arise
You likely won’t need a license to manage a rental property in Texas when handling these tasks yourself.
Does a Property Management Company Need a License to Handle Your Property?
There are some things in Texas that you do need a license for.
According to the Texas Real Estate Commission, any person who shows or leases a rental property on behalf of an owner and gets paid for doing so must obtain a real estate license. A license is also required for anyone who accepts rent or deposits from residents of single-family residential units in Texas.
These property management license requirements in Texas apply not just to the licensed property managers at a company level. It also applies to any individual who handles these duties at the company.
The individuals need to be licensed real estate agents. Also, the leaders in charge of the company need to hold real estate brokers licenses in Texas.
Hiring a Single Individual to Manage Your Rental
But, what about hiring another individual who doesn’t own or work for a property management company to manage your property? If you pay someone like this to manage your property for you, do they need to have a license?
The answer is yes. In Texas, anyone who handles money on behalf of someone else in relation to the management of rental property must not only be licensed to do so, they must be a real estate broker.
In essence, then, unless you are handling every aspect of managing the property on your own — which is typically not in your best interest — then the company and/or people you are hiring to do it for you must hold a real estate broker’s license to legally operate in the state of Texas.
Why Should You Always Work with Licensed Property Managers?
Hiring an experienced Austin property management company that holds all appropriate and required licenses is a key to success in real estate investing. In many ways, it’s just like hiring a licensed contractor to do work on your home. Or it’s also like choosing a licensed health-care provider to serve as your primary care physician.
When the company you hire meets all the property management license requirements in Texas, you can rest assured that the company and all of its agents are up to date on all local landlord-tenant laws. You know they’ll do everything “by the book,” which helps protect you against any liability in case something were to go wrong.
In addition, licensed property managers care about their business and about the property owners they work with. They have taken the necessary educational and financial investments to obtain and maintain their licenses, which demonstrates their commitment to ethical and quality services.
These companies, such as 1836 Property Management, are often the most experienced in the field and have the local expertise to help you get your property ready to rent. They also can market and price your property right so that you can attract quality tenants who take care of your home while they’re living in it and want to renew their lease year after year.
Work with 1836 Property Management to Achieve Success in Real Estate Investing
The best way to achieve consistent returns in real estate investing in Texas is to partner with a licensed Austin property management company.
1836 Property Management is the leader in the industry.
We meet all property management license requirements in Texas, and put our clients’ needs and success at the forefront at all times.
1836 Property Management can be reached at (512) 994-4323. For more information, please contact us today.
