Individuals operating as property managers in California without the required real estate broker or salesperson license are engaging in unauthorized practice. This can involve tasks like collecting rent, advertising properties, negotiating leases, or handling tenant issues on behalf of property owners. For example, someone collecting rent for a friend’s apartment while the owner is out of the country, without holding a license, would be considered acting illegally.
Complying with licensing regulations provides essential consumer protection by ensuring practitioners meet specific competency and ethical standards. The California Department of Real Estate oversees these standards, helping to safeguard both property owners and tenants from potential fraud or mismanagement. Historically, the licensing requirement evolved to address growing complexities in the real estate market and the need for professional oversight. Licensed professionals are required to adhere to a code of ethics and maintain professional standards, which fosters trust and transparency within the industry.
