Property Management Law Florida
Yes, property managers in Florida are required to be licensed either as real estate brokers or as community association managers. The licensing agency and regulator is DBPR, the Department of Business and Professional Regulation.
According to the Florida Statute §475.01 definitions.
“Broker” means a person who, for another, and for a compensation or valuable consideration directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation or valuable consideration therefor, appraises, auctions, sells, exchanges, buys, rents, or offers, attempts or agrees to appraise, auction, or negotiate the sale, exchange, purchase, or rental of business enterprises or business opportunities or any real property or any interest in or concerning the same, including mineral rights or leases, or who advertises or holds out to the public by any oral or printed solicitation or representation that she or he is engaged in the business of appraising, auctioning, buying, selling, exchanging, leasing, or renting business enterprises or business opportunities or real property of others or interests therein, including mineral rights, or who takes any part in the procuring of sellers, purchasers, lessors, or lessees of business enterprises or business opportunities or the real property of another, or leases, or interest therein, including mineral rights, or who directs or assists in the procuring of prospects or in the negotiation or closing of any transaction which does, or is calculated to, result in a sale, exchange, or leasing thereof, and who receives, expects, or is promised any compensation or valuable consideration, directly or indirectly therefor; and all persons who advertise rental property information or lists. A broker renders a professional service and is a professional within the meaning of s. 95.11(4)(a). Where the term “appraise” or “appraising” appears in the definition of the term “broker,” it specifically excludes those appraisal services which must be performed only by a state-licensed or state-certified appraiser, and those appraisal services which may be performed by a registered trainee appraiser as defined in part II. The term “broker” also includes any person who is a general partner, officer, or director of a partnership or corporation which acts as a broker. The term “broker” also includes any person or entity who undertakes to list or sell one or more timeshare periods per year in one or more timeshare plans on behalf of any number of persons, except as provided in ss. 475.011 and 721.20.
In order to do any of the property management duties, a real estate license is required.
In Florida, there are two types of property management licenses:
- Residential and commercial property managers
- Community association property managers
Residential and Commercial Property Managers
Residential and commercial property managers are required to be licensed real estate brokers or real estate agents working under the supervision of a real estate broker. Very few if any real estate brokers will allow a real estate agent to perform property management duties if the brokerage does not offer property management.
Community Association Property Managers and Companies
The community association managers and firms are regulated by DBPR but are subject to different licensing requirements than the real estate licensees.
A real estate broker will need a CAM license to provide management services to Community Associations.
What Can an Unlicensed Manager Do?
An unlicensed manager can perform property management duties if they work as an employee for the owner of the property but not for other people.
An unlicensed person can also be an owner or partner of a real estate brokerage if they have a qualifying real estate broker.
Florida Real Estate Commission- FREC is the regulator for the real estate licensees. FREC is under the umbrella of DBPR, the Department of Business and Professional Regulation.
FREC regulates real estate sales associates, real estate brokers, real estate companies, schools, and instructors.
Can a Real Estate Agent Work as a Property Manager?
As long as the real estate brokerage allows property management activities, a real estate licensee can work as a property manager.
If the real estate broker doesn’t permit property management, the other option is for the real estate agent to get a real estate broker license and open a brokerage.
Getting a Real Estate Broker License
Requirements
To get a real estate broker’s license, the applicant must have had an active real estate sales associate license for two years. Fingerprinting and background checks are required.
Education and Exams
Seventy-two hours of pre-license education has to be completed before the state exam. If the applicant has a four-year degree in real estate they may be exempt from the pre-license education requirement.
Getting a Community Association License
Requirements
The applicant needs to be at least 18 years of age and must be of good moral character. Background and fingerprinting through an approved vendor are required.
Education and Exams
Sixteen hours of Community Association Management approved prelicensure education is required before
Initial Fees
The total fees for the application, exam and license are around $250. Fingerprinting and pre-license classes are extra.
