Step-by-Step Guide to Becoming a Property Manager in California (2026)

Are you interested in finding out how to become a property manager in California? The Golden State offers massive opportunities for real estate professionals, but the barrier to entry is higher than in many other states.

Here is the short answer: California does not have a specific "Property Manager License." Instead, property management is considered a real estate activity. To manage property for others legally, you generally must hold a standard California Real Estate License (Salesperson or Broker) issued by the Department of Real Estate (DRE).

Finding and vetting new tenants, negotiating lease conditions, collecting rent, and maintaining the property are all regulated activities.

Key Takeaways (TL;DR)

• License Required: You almost always need a California Real Estate Salesperson or Broker license to manage properties for others.
• Time Commitment: Expect 3 to 6 months to complete the required 135 hours of education and pass the exam.
• Initial Costs: Budget approximately $500+ for DRE fees (Application + License + Live Scan) plus the cost of your pre-licensing courses.
• Education: You must complete three college-level courses: Real Estate Principles, Real Estate Practice, and one elective.
• New Laws (2025/2026): Be aware of strict new rules regarding security deposits (AB 12) and move-out photos (AB 2801).

What Does a Property Manager Do in California?

Property managers are professional people responsible for overseeing the daily operations of rental properties.

In California, this role carries significant fiduciary responsibility. You are often handling trust funds (rent and deposits) belonging to others, which requires strict compliance with DRE standards.

Furthermore, property managers will often take over when property owners don't want to or are unable to handle the day-to-day. People often refer to property managers as:

• Asset managers
• Real estate managers
• Property administrators
• Landlords (though technically, they represent the landlord)
• Investment managers

It's crucial to keep in mind that real estate managers are not necessarily responsible for buying or selling real estate, though their license allows them to. Their primary focus includes:

• Marketing and Leasing: Showing units, handling rental applications, and negotiating lease terms.
• Rent Collection: Collecting funds and managing trust accounts.
• Maintenance: Coordinating repairs and work orders.
• Compliance: ensuring the property meets California's strict habitability laws.
• Owner Reporting: Providing monthly financial statements.

Do You Need a Real Estate License to Be a Property Manager in California?

Yes, for most scenarios. According to the California Department of Real Estate (DRE), acts such as renting, leasing, or collecting rent on behalf of an owner require a license.

When a License Is Required

If you are a third-party manager or a company managing properties you do not own, you need a license to:

• Negotiate leases or rental agreements and run tenant background checks.
• Solicit prospective tenants (marketing vacancies).
• Collect rent payments.

Exceptions That Do Not Require a License

There are limited exceptions where you can work in property management without a license, typically if you are a "Resident Manager" living on-site at an apartment complex, or if you perform purely clerical tasks under the supervision of a licensed broker.

Step-by-Step: How to Become a Property Manager in California

If you want to join a property management company in California or start your own, you must acquire a real estate salesperson license from the California Department of Real Estate (DRE). Here is the updated process for 2026 and beyond.

Step 1: Confirm You Meet the Basic Requirements

To be eligible for the license, you must:

• Be at least 18 years old.
• Be honest and truthful (Conviction of a crime may result in the denial of a license).
• Proof of legal presence in the United States is required.

Step 2: Complete California Real Estate Pre-Licensing Education

You must complete 135 hours of pre-licensing coursework at a college-level institution or an accredited private real estate school. The required courses are:

• Real Estate Principles (45 hours)
• Real Estate Practice (45 hours)
• One Elective (45 hours) — We recommend Property Management, Real Estate Finance, or Business Law.

Step 3: Apply for the Exam and Complete Live Scan

Once your coursework is done, you will submit your application to the DRE. You can apply for the Exam only or the Exam/License Combination (recommended to save time).

Current Fees (as of 2025):

• Salesperson Exam/License Combo Fee: $450 (Paid to DRE).
• Fingerprinting (Live Scan): Approximately $49 (Paid to the Live Scan provider).

Step 4: Pass the California Real Estate Exam

The California Salesperson Exam consists of 150 multiple-choice questions. You have 3 hours and 15 minutes to complete it, and you must score 70% or higher to pass.

Step 5: Work Under a Broker or Become a Broker

As a licensed salesperson, you cannot work independently. You must "hang your license" with a licensed Real Estate Broker. Many property management companies are headed by a Broker who will sponsor you.

To operate your own independent property management company without a boss, you must eventually obtain a Broker License. This requires 2 years of full-time salesperson experience (or equivalent education) and passing a more difficult exam.

Step 6: Set Up Your Property Management Business the Right Way

Once licensed, you need to set up your operations to be efficient and compliant.

• Trust Accounting: You need a dedicated bank account for tenant funds, separate from your business operating funds.
• Insurance: Secure General Liability and Errors & Omissions (E&O) insurance.
• Software: Use property management software to automate rent collection and maintenance.

DoorLoop Pricing: DoorLoop creates a professional backbone for your business starting at just $69/month (billed annually) for your first 20 units. This includes accounting, leasing, and tenant portals.

Property Management Certifications in California

While the DRE license is mandatory, additional certifications are optional but highly valuable for career advancement and trust. These are typically offered by industry associations.

California Certified Residential Manager (CCRM)

Offered by the California Apartment Association (CAA), this is a state-specific certification that focuses on the unique laws and practices of managing rental housing in California.

National Apartment Leasing Professional (NALP)

Applying for entry-level employment, such as a leasing agent, is often the first step. The NALP credential educates leasing agents on the fundamental abilities required to perform their professions well.

Certified Apartment Manager (CAM)

Training for Certified Apartment Managers (CAM) is designed for onsite managers. This certification enables California property managers to serve as the best possible advocates for local property owners.

Certified Property Manager (CPM)

This is a highly regarded title in the property management business, typically requiring a broker's license or significant portfolio experience.

Master Property Manager (MPM)

A Master Property Manager, or MPM, is the highest level of distinction one may obtain in the property management industry, requiring 60 continuous months of employment.

California Rental Laws Property Managers Must Know

California is known for having some of the most tenant-protective laws in the country. To succeed, you must stay current on regulations.

Security Deposit Rules (AB 12 & AB 2801)

Recent legislation has significantly changed how you handle deposits:

• AB 12 (Effective July 1, 2024): Security deposits are generally capped at one month's rent for unfurnished and furnished units alike (with limited exceptions for small landlords).
• AB 2801 (Effective April 1, 2025): Landlords must provide photographic evidence of the unit's condition before repairs/cleaning (after move-out) and after repairs/cleaning if deductions are made.

Statewide Rent Cap (AB 1482)

Under the Tenant Protection Act of 2019, annual rent increases for covered properties are capped at 5% plus the local CPI (Consumer Price Index), not to exceed 10% total.

Property Manager Salary and Job Outlook in California

Salaries for property managers in California vary widely depending on location, portfolio size, and whether you own the management company or work as an employee.

• Job Outlook: The BLS projects a 4% growth in employment for property managers nationally from 2024 to 2034.
• Salary Range: While entry-level salaries may start around $50,000, experienced managers in high-cost-of-living metros earn significantly more.
• Metro Example: In the San Francisco-Oakland-Fremont area, the mean annual wage for property managers is approximately $104,510 (BLS May 2024 data).

A higher pay grade is often influenced by your understanding of the industry and technology, including well-known systems used to streamline operations.

Skills

Property management companies look for certain skills in real estate managers, such as:

• Patience: It takes persistence and skill to resolve conflicts among renters or calm down a stressed property owner.
• Communication: A property manager is frequently in contact with tenants, owners, vendors, and potential applicants. Strong written and verbal communication is essential!
• Basic Accounting: Property managers need a basic understanding of accounting to manage tasks, including tracking rent payments, calculating late fines, and maintaining spending reports.
• Organization: Real estate managers have many responsibilities, and it takes remarkable organization to keep track of all the many operations.
• Attention to Detail: Legal paperwork and sensitive information are involved in managing rental property. Therefore, accuracy is crucial when completing contracts and delivering notices.

The Bottom Line

Are you interested in becoming a property manager? You need to be prepared to work hard! While obtaining your California real estate license takes time and study, the career offers stability and high earning potential.

To learn more about real estate and property management, check out our blog!

Once you receive your license, you'll want the best tools to run your business efficiently. DoorLoop helps you collect rent, manage work orders, and handle accounting with ease.

... and to see it in action, click here to request a demo!

Sources

• California Department of Real Estate (DRE) – Fee Changes (Effective July 1, 2024)
• California Department of Real Estate (DRE) – How to Apply for the Salesperson Exam/License
• U.S. Bureau of Labor Statistics – Occupational Outlook Handbook: Property Managers
• U.S. Bureau of Labor Statistics – SF-Oakland-Fremont OEWS Release (May 2024)
• SF.gov – AB 12 Deposit Cap Summary
• FindLaw – California Civil Code § 1950.5 (Security Deposits & Photos)
• California Rental Housing Association – CPI and Rent Cap Information (AB 1482)