Rentals in Merced>Question Details

P C, Real Estate Pro in Merced, CA

If i have a brokers license and want to manage single family houses for rent, do the people that I hire to work for my company have to have a license?

Asked by P C, Merced, CA Tue Jul 5, 2011

Can my employees show and rent property, collect the rent, etc. without having a license ?

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I'm not quite sure what Tina is trying to say or how it exactly applies to your question. But once again I can tell you as a general contractor, developer, property manager and investor of 25 years and a practicing RE broker all you really need to do is follow the guidelines I've delineated in my comment below and you'll be fine.
0 votes Thank Flag Link Fri Jul 8, 2011
Actually DRE law refers to the California Civil Code. You should read the Business and Professional Code Section 10131 regarding activities requiring real estate broker / salesperson license.
http://www.nolo.com/law/CA-BPC10131.19841771.html

Make sure you read the 2nd page regarding rental activites.
0 votes Thank Flag Link Fri Jul 8, 2011
If the work exceeds $650 dollars they need to have a Contractors license. Should they have hired personnel they would need workman's compensation. I would also strongly urge you to require liability insurance as well. They may also need to acquire a city/county business license as well depending on the jurisdictional requirements.

If it's less than $650 they can be classified as a "Handyman" and, depending on the jurisdiction, would most likely have to have a business license for the county or city they were working in as well as liability insurance and workman's compensation. If not you would have to provide it.

In any event I would strongly recommend that you as the broker of record acquire a public liability and property damage policy for your brokerage. When law suits happen attorney's go for any/all deep pockets they can find.

Having been an expert witness in the construction defect arena for twenty years has made me very sensitive to the need for proper and adequate insurance. Hope this helps.
0 votes Thank Flag Link Thu Jul 7, 2011
As a practicing property manager, I agree with AFR that you should look at the Department of Real Estate web site to get more about property managment - http://www.dre.ca.gov
However, in general there only needs to be a broker of record in a property management company - as long as all you are doing is property management.
You should check with you E&O insurance agent to see if they might have additional requirements based upon the description of your business. Many of us do management and sales, so we have to either put up a huge wall between the operations or be more uniform in our license requirement.
0 votes Thank Flag Link Tue Jul 5, 2011
I recommend that you hear it from the horses mouth: California Department of Real Estate. As a Broker, why risk liability with a bad answer??? Good Luck!
0 votes Thank Flag Link Tue Jul 5, 2011
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