Property management is a fulfilling career that offers great opportunities. If you want to become a Colorado property manager, this is the perfect guide for you!
In order to work as a property manager in Colorado, you need to have a real estate license. The person can either be a broker or an employing broker who works under a broker's supervision. The Colorado Division of Real Estate requires the real estate broker licensee to be at least 18 years old, complete 168 hours of pre-license coursework, submit an application, pass the broker exam, pay a fee, and agree to a background check.
What Is a Property Manager?
Property managers are real estate professionals who are responsible for managing rental properties. Keep in mind that property managers are not real estate agents. They are not responsible for the buying and selling of properties but rather oversee the day-to-day operations of the rental properties.
Furthermore, property managers act on behalf of a property owner or real estate investor.
Colorado property managers can either be:
- Residential property managers
- Commercial property managers
- Industrial property managers
Prospective property managers in Colorado need to meet the following requirements:
- Be 18 or older
- Have a high school diploma or equivalent
- Have a valid Social Security Number
According to indeed.com, the average salary for a Colorado property manager is $47,838 per annum.
Keep in mind that numerous factors affect this figure. Location, education, certification, and the company you work for all affect how much you make as a property manager.
Property management companies do numerous tasks. From admin to finance and more practical tasks, you do it all. A few of the most common tasks property managers are responsible for include:
- Screening applicants
- Negotiating lease terms
- Communicating with property owners
- Collecting rent payments
- Conducting a property inspection
- Overseeing property maintenance
Real estate managers are responsible for adhering to all the terms set out in the property management agreement they signed. Therefore, property managers are responsible for ensuring that all terms in the lease agreement are followed by landlords and tenants.
However, there's no need to panic. Property management companies will outline what you're responsible for doing.
Like any other profession, there are certain skills you need to have to be a property manager. Since you will be dealing with people on a daily basis, you need these essential skills:
- Basic accounting knowledge
- Effective communication
You must complete a number of steps (each of which is detailed on the state's Department of Regulatory Agencies website) in order to become a property manager in Colorado.
The state advises licensing applicants to identify which of their educational requirements apply to their position in order to start this process. Former brokers and brokers with reciprocity agreements (i.e., brokers who hold a license in another US state) are subject to lower requirements, but brand-new licensees must complete 168 hours of in-depth coursework. The majority of candidates fulfill these criteria by earning a property management degree from an authorized university or real estate school.
You must pass the state's "Real Estate Broker's Exam" after submitting documentation of your school credentials to the state. These exams are given by a third-party vendor, who in turn requests that candidates choose their own exam day and time.
Education Requirements for Commercial and Residential Property Managers
You must complete 168 hours of pre-license broker education at a college or university that has been approved by the Colorado Real Estate Commission.
The following must be covered in the curriculum:
- Colorado Contracts and Regulations (48 hours)
- Real Estate Law and Practice (48 hours)
- Current Legal Issues (8 hours)
- Trust Accounts and Record Keeping (8 hours)
- Real Estate Closings (24 hours)
- Practical Applications (32 hours)
The Colorado Broker Exam
The National component and State portion make up the Colorado Real Estate Broker Exam. It has 154 questions, and you have 230 minutes to complete it. With regards to the National component, a passing score of 60/80 is necessary, whereas, for the State portion, it is 53/74.
The PSI Services is in charge of administering the exam. Registration with PSI, the testing vendor, is required before you can take the exam. You can register online on the PSI website.
You must include supporting documentation proving you finished the prerequisite courses. Additionally, there is an exam fee of $44.95.
Bring two forms of identification on the exam day.
This is an online exam; therefore, you will receive your marks as soon as you have completed the test.
Furthermore, this exam tests your knowledge and comprehension of real estate law, principles, and practices, as well as mathematics.
All real estate license holders, according to the Colorado Division of Real Estate, are required to get errors and omissions insurance (E&O).
Property Manager Certifications
Property manager certifications are national accreditations. There are various certifications you can choose from, such as:
National Apartment Leasing Professional (NALP)
In order to receive this certification, you need to complete all the requirements within 12 months. This accreditation is all about learning the basic skills of what it takes to be a property manager.
Certified Apartment Manager (CAM)
This is the second step in the property management industry. It needs to be completed within 12 months and gives you onsite experience of working for property management companies.
Certified Property Manager (CPM)
This level of certification is highly regarded in the property management industry. You need to complete the course within 12 months. The CPM certification teaches individuals how to manage the minimum portfolio of rental properties.
Master Property Manager (MPM)
If you want to obtain this certification, you need to have a minimum of 60 hours of consecutive real estate management employment.
Real Estate license
In Colorado, a license cycle lasts three years. Every second year following issuance, all real estate licensees must renew their broker licenses on or before December 31.
You must finish 24 hours of continuing education courses for each cycle of your license. The following subjects must be included in the curriculum:
- Three different versions of the Annual Commission Update Course - each version is four hours.
- Any combination of elective credit courses for the remaining 12 hours.
Colorado property managers have a number of responsibilities they need to take on. If you're interested in becoming a property manager in Colorado, you need to have your real estate broker's license. Whether you work for a real estate investor or a property management firm, this career is extremely rewarding.
Do Property Managers Have to Have a Real Estate License in Colorado?
Yes, under current Colorado property management laws, important aspects of property management fall under real estate activity. Activities requiring a license include leasing and subsequent management of properties for a fee or remuneration. Brokers managing rental receipts and security deposits must adhere to the particular trust account and accounting criteria set forth by the Colorado Real Estate Commission. Brokers must also abide by the relevant rules and the license law's provision on brokerage relationships - for specific criteria, please see CP-27 (Commission Position on the Performance of Residential Property Management Functions).
Do You Have to Join a Licensed Property Management Company?
You need to work with a property management company that has a managing broker license in Colorado once you pass the exam. This property management company will sponsor your Colorado real estate license.
Remember that not every brokerage offers its clients property management services. Most brokerages simply concentrate on the buy-sell aspect of the market. Therefore, be careful to choose one that focuses on property management.
Are There Exceptions to the Real Estate Broker's License in Colorado?
If they are salaried employees and don't negotiate lease conditions, on-site residential managers of condos or apartments are excluded from the real estate license requirement.
Please get in touch with the Colorado Division of Real Estate for further information on these and other standards and exceptions for property management.