Do property managers need a license?

Yes. California Business & Professions Code §10130 requires a real-estate broker license to manage rental property for compensation for someone else. A salesperson can manage under a broker's supervision. Owner-operators managing their own property don't need a license.

What's a Responsible Broker?

A PM company must have a designated Responsible Broker (DRE-licensed broker) accountable for the firm's compliance and trust-account handling. The Responsible Broker's name is on the company DRE record. Verify the Responsible Broker is active and the company's license is current at the DRE website.

How are trust funds handled?

Tenant deposits and pending rent must be held in a separate DRE-supervised trust account. Commingling is a serious violation. Annual trust-fund audit by DRE is standard. Ask any prospective PM how their trust accounts are structured and verify with DRE.

What's the vendor-of-choice rule?

PM cannot funnel work to undisclosed affiliates without owner consent. Affiliated vendors require written disclosure under DRE rules. Watch for hidden markups on affiliated maintenance vendors — ask for itemized invoices and confirm pass-through vs cost-plus structure.

What about a Property Management Agreement?

DRE-licensed brokers must use a compliant PMA covering scope, fees, trust-fund handling, indemnification, and termination. Read carefully. Common red flags: long auto-renewal terms, vague maintenance markups, weak termination rights, undisclosed affiliated vendors.

DRE broker · Trust funds · Vendor disclosure

PM licensing in California. Broker license. Trust accounts. Disclosures.

B&P §10130 requires DRE broker license to manage for others. Designated Responsible Broker. Trust funds segregated. Affiliated vendors disclosed. Verify current license before signing a PMA.

TL;DR

DRE broker license required (B&P §10130). Trust funds in segregated DRE-supervised account. Affiliated-vendor disclosure required. Verify license at DRE website. Read the PMA carefully. NGC is a licensed DRE broker — verify our license #.

PM Fees Typical
LLC vs Personal

Common questions — PM licensing

License required?

DRE broker, per B&P §10130.

Responsible Broker?

Designated, accountable, named on DRE record.

Trust funds?

Segregated DRE-supervised; no commingling.

Vendor disclosure?

Affiliated vendors must be disclosed.

PMA red flags?

Long auto-renew, vague markups, weak termination.