What is the requirement for a property manager who is paid by commission?

A property manager who is paid by commission must be licensed as an active real estate broker. This requirement is in place because managing property and receiving a commission for such services is regarded as engaging in real estate brokerage activities. The role of a property manager often includes responsibilities such as leasing properties, negotiating contracts, and managing tenant relationships, which all fall under the purview of a licensed broker's duties.

In many jurisdictions, while a real estate salesperson can operate under a broker, they are typically not authorized to manage property on their own and earn a commission. Therefore, having a broker's license ensures that the individual is fully qualified to handle the complexities involved in property management and can legally receive commissions. This licensing serves to protect consumers by ensuring that property managers meet the required legal and professional standards for conducting real estate transactions.