Is a RE license required to manage vacation rental properties for 3rd parties in TX. No leases, just reservations for nightly rentals.

Asked by Presidio, 75115 Sun Dec 19, 2010

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Presidio, , 75115
Mon Dec 20, 2010
Thought I posted this reply earlier, but it never showed up.

Tim -- Thanks for the response. Your answer makes sense and likely applies in some states (obviously in yours). Luckily for me, the enforcement folks at Texas Real Estate Commission advise me that hotel management is exempt and that they consider my proposed management services to be hotel management as long as I am collecting and remitting the mandated hotel tax for all rentals.

Bruce -- Thanks. I was lucky enough to get them on the phone with very little hold time and they were extremely helpful and informative. After much discussion, they assured me I'd be exempt. I'm now waiting on written confirmation for my files. I wont mind too much if I am later required to get a license, I just don't want to be caught by surprise and face being shut down and/or paying fines and facing prosecution for acting as a Realtor without a license. I'm actually now considering going for a real estate license in case I want to pursue more traditional property management (for which a license is definitely required) in the future. Even if I don't strictly need a real estate license, I'm sure that I would gain a lot of valuable knowledge while earning one and having one would undoubtedly enhance my credibility in the eyes of prospective clients.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Mon Dec 20, 2010
Our company has 550 rental homes that we rent to summer vacationers weekly. The people answering the phones do not need a license since they are just taking reservations and booking weeks. The people who call owners of the homes to negotiate special prices or discounted rates do need a license because they are negotiating prices or special terms. A license has nothing to do with taxes here, only if you are in contact with an owner of a house and negotiating.
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Bruce Ericks…, Agent, Dallas, TX
Mon Dec 20, 2010
Presidio,

I would check with the Texas Real Estate Commission. The best way to contact them is by email at information@trec.state.tx.us, you can call them but you will probably be on hold for a long long time.

Their web site is http://www.trec.state.tx.us and that should be of help also.

Best of luck .. Bruce
0 votes
Presidio, , 75115
Mon Dec 20, 2010
Woohoo! Just got off the phone with TREC and was advised that I would be NOT be required to obtain a RE license since I would be collecting and remitting Texas hotel taxes. My faith in humanity is partly restored.

They referred me to the Texas Real Estate License Act # 1101.005 (10)(C).
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Presidio, , 75115
Mon Dec 20, 2010
Thanks for your response. I fear that you may be correct, but this makes no sense to me. I would not be showing, leasing, selling, etc any real estate. Just booking reservations, collecting hotel fees, cleaning fees, pet fees, and hotel taxes. Would a third party hotel management company require a real estate license? If they don't, why would I? I would be doing nothing more than a hotel or B&B manager would be doing.

Why would I need to be a realtor if I'm not going to be be involved in any types of legal agreements or contracts that are designed or regulated by Texas Real Estate Commission? Seems sort of like requiring a store cashier to be a licensed pharmacist in order to ring up a bottle of aspirin.
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Scott Godzyk, Agent, Manchester, NH
Mon Dec 20, 2010
If you are working directly for the resort or owner i would think NO, but if you are doing it as an independant boker or agent and getting paid a commission than yes, you would need a real estate license.
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