Property ManagementTexas Property Management Regulation

In Texas, property management isn’t just a business; it’s an essential service that thousands of property owners and renters rely on. However, just like any other service, it requires a level of professional conduct and oversight. This begs the question: Must property managers be licensed in Texas? Let’s dive deep into the regulations governing this profession in Texas.


For starters, the Texas Real Estate Commission (TREC) is the official body responsible for licensing real estate professionals in Texas.

TREC’s powers are derived from Chapter 1101 of the Texas Occupations Code. This chapter, referred to as “The Act” or the “Licensing Act” among industry insiders, gives TREC its mandate. Additionally, TREC has the authority to promulgate various rules, known as “The Rules” or “TREC Rules” to govern real estate-related activities.

Property Management

According to 1101.002 (x) of the Texas Occupations Code, TREC’s authority is crystal clear when it comes to property managers. If you’re a property manager overseeing the acceptance or deposit of rent for a single-family residential property, you MUST be licensed. Simply put, property managers of houses or condo units must have the requisite license to accept security deposits or rents. However, if your role is just about overseeing repairs or coordinating them, the licensing requirement doesn’t apply.

Legislative History

Prior to September 1, 2011, property managers for single-family homes operated in a wild west of sorts, with no regulations. Such an environment posed significant risks to both tenants and property owners, with property managers enjoying near-complete freedom.

The Post-2011 Landscape

Since that pivotal moment in 2011, TREC has swung into action, channeling significant resources towards regulating the property management sector. And while this intervention has successfully shielded the public from potentially dishonest property management practices, it’s not been all smooth sailing. A notable outcome has been a surge in tenant complaints, primarily centered on issues like repair response times and property upkeep.

Navigating the Delicate Balance

An inherent challenge in this scenario lies in the dual role of property managers. They are agents representing property owners and are bound by a fiduciary duty to prioritize the owner’s interests. This can occasionally clash with tenant expectations and interests. Thus, while tenants undoubtedly deserve fairness and professionalism, it’s imperative for both the public and regulators to understand that property managers are duty-bound to prioritize the owner’s interests.

The landscape of property management in Texas is shaped by clear regulations and the presence of TREC. For those contemplating a foray into property management or owners in search of a property manager, understanding these regulations is invaluable. As always, professional conduct, transparency, and staying informed are the keys to navigating the intricate world of property management in Texas.


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