Can an unlicensed person be a property manager?

It depends. A license is required for anyone who controls the acceptance or deposit of rent from a resident of a single-family property if the person has the authority to do any of the following:

-Use the rent to pay for services related to management of the property
-Determine where to deposit the rent
-Sign checks or withdraw money from a trust account.

In addition, only a licensed broker or sales agent may perform leasing activities, such as finding tenants, showing properties for lease, and negotiating leases. However, there are certain activities that do not require a license, including bookkeeping or arranging for repairs. Also, on-site managers of apartment complexes do not need to be licensed.

What tasks can my unlicensed office manager do?

Unlicensed individuals can train or motivate agents, as well as handle office administration and personnel matters. An unlicensed person can also serve as bookkeeper for the company.

However, TREC Rule 535.4(d) prohibits an unlicensed person from directing or supervising agents in their work as license holders. This means an unlicensed person cannot advise agents about helping others buy, sell, or lease property. An unlicensed person cannot review contracts or be a party in deal-making. 

The Texas Real Estate Licensing Act Section 1101.002(1)(A)(x) prohibits an unlicensed person, on behalf of another, from controlling the acceptance or deposit of rent from a resident of a single-family residential real property unit in exchange for, or with the expectation of, a commission or other valuable consideration. TREC Rule 535.4(h) further defines controlling the acceptance or deposit of rent, stating that a person must be licensed if the person has the authority to:

  1. use the rent to pay for services related to management of the property;
  2. determine where to deposit the rent; or
  3. sign checks or withdraw money from a trust account.

Can my unlicensed assistant unlock the door for potential buyers if I'm running late?

No. TREC Rule 535.4(c) states that a person must be licensed as a broker or sales agent to show a property. “Show” includes causing or permitting a property to be viewed by a prospective buyer or tenant, unlocking or providing access onto or into a property for a prospective buyer or tenant, and hosting an open house at the property. As such, an unlicensed assistant must refrain from any activity that allows the buyer to be able to view the home, which includes unlocking doors.