Overview of Property Management Regulation in California
In California, property management is a highly regulated industry. Property managers are responsible for the management of a property on behalf of the owner, which can involve a broad range of tasks and responsibilities, including rent collection, tenant selection, maintenance, and repair of the property. As such, it’s important that property managers operate in a professional and ethical manner. The California Department of Real Estate (DRE) is the state agency responsible for regulating property managers as well as salespersons and brokers in the real estate industry. By ensuring that property managers meet certain licensing requirements and abide by state and federal laws, the DRE helps to protect property owners and tenants alike.Understanding the Role of the California Department of Real Estate
The DRE is responsible for enforcing the California Business and Professions Code, which sets the standards for property management in the state. The agency oversees the licensing of property management companies as well as individual property managers. As part of its regulatory role, the DRE investigates complaints against property managers and has the power to take disciplinary action against those found to be in violation of the law. In addition to its regulatory duties, the DRE also provides education and resources for property managers and the general public. This includes information on best practices for property management and tips for tenants on how to protect their rights.Licensing Requirements for Property Management Companies
In order to legally operate as a property management company in California, a company must have a license from the DRE. To obtain a license, the company must submit an application and show proof of certain qualifications, including:- A designated qualifying broker who holds a valid broker’s license
- A minimum of two years’ experience in property management
- A trust account for the handling of client funds
- A bond or insurance to protect against loss or theft of client funds