What are the Property Management Laws in Texas?

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Property Management Agencies Must Have an Active Real Estate Broker’s License.

Property management agencies in Texas are required to have an active real estate broker’s license.

This is because leasing and renting, which are critical components of property management, are considered real estate activities by current Texas real estate licensing laws.

A property manager will need a broker’s license for any of the following situations:

  • Leasing (or listing for lease) real estate
  • Negotiating (or attempting to arrange) for the rental of real estate
  • Aiding in locating real estate for lease
  • Controlling the acceptance or deposit of rent from a resident of a single-family residential property unit
  • Holding oneself out as engaging in any of the above activities

A salesperson working under a broker is permitted to engage in these activities.

There Is An Exception to the Real Estate Broker License Requirement.

This exception is that a Texas property owner may manage their own home as a rental property without a license.

Additionally, if a property owner has a salaried employee, that employee does not need to have a real estate license to manage or lease property owned by his or her employer. Also, community association managers and condo association managers in Texas are not required to hold a real estate broker’s license.

Here are the Requirements to Become a Licensed Real Estate Agency in Texas

The following are required to become a licensed real estate broker in the state of Texas:

  • 18 years of age or older
  • US Citizenship or lawfully admitted immigrant
  • A legal resident of Texas
  • Must complete 270 classroom hours of core real estate classes
  • Must show an additional 630 hours in related courses acceptable to the Commission (a bachelor’s degree or higher from an accredited college/university will satisfy this)
  • Must demonstrate qualifying experience per Commission guidelines and have at least four years of experience in Texas as a licensed real estate salesperson or broker during the five years preceding filing the application
  • Application fee of $375.50
  • Recovery Trust Account fee of $10
  • Fingerprint submission and background check

License renewal is prohibited if a licensee has defaulted on a student loan guaranteed by the Texas Guaranteed Student Loan Corporation.


When it comes to hiring a property manager to manage your rental property in the state of Texas, always make sure he or she is licensed appropriately. You can check the license status of Texas property managers on the Texas Real Estate Commission website.

For more information on other licensing requirements and exceptions, contact the Texas Real Estate Commission.

Remember, everything from marketing to qualifying renters to signing the lease is considered a real estate transaction and should be handled by someone with the proper licensing.

Red Wagon Properties has a team of appropriately licensed house property management companies ready to manage your rental properties in the San Antonio area.

Contact us today for more information.

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