Real estate is quickly becoming one of the preferred means of investment in Texas.

Unlike managing one's household, investment in real estate needs to be handled like a business if one is to realize significant profits from their property.

This is why many property owners that are involved in the Texas real estate business end up working with a designated broker to handle all their property management needs.

In this article, we will look at the certification requirements when a property manager is hired by a real estate owner in Texas.

Property Manager

A property manager is an individual or a real estate business entity (real estate broker) in charge of the operation of a real estates property, such as a residential unit or commercial building.

Real estate property management business entities are in charge of the day-to-day running of a piece of property in situations where the owner is not able to do so.

In return for these services, owners will pay the property managers a fee or a percentage of the rent.

The state of Texas has its laws regarding property management, as dictated by the Texas real estate commission, such as the need for a property management company to have a separate license, such as a real estate license or broker license.

Property Management Company

A property management business entity or real estate brokerage firm will agree to do the following:

  • Collect rent and security deposits on behalf of the owner and see to the requirements of the tenants in all properties in their care
  • Include the property owner in all important decisions regarding the Texas real estate property, such as rentals and lease agreements, whether commercial, residential, or others
  • Provide monthly statements of receipts for all income and expenses related to the real estate property
  • Deposit all receipts of income generated by the real estate property, after deducting their fees, into a mutually agreed Trust or financial institute
  • Exercise reasonable care, diligence, expertise, and honesty as befits a real estate broker of good standing
  • Furnish their real estate license or broker license when required to do so

Things To Include

While different companies have their specific way of conducting business, a Texas real estate property management certification will need to include the following permissions granted to the property manager:

  • Advertising the availability of the property on various platforms at their own pace and at the owner's expense
  • Oversee the screening of all potential tenants, including running a credit and background check
  • Sign, terminate, or renew any lease agreements on behalf of the property owners
  • Make repairs on the properties and manage the general upkeep of all the buildings in question, including the hiring of any labor required for these tasks
  • Ensure the provision of electricity, gas, fuel, water, sewer, garbage, and other basic services required by the tenants
  • Disclose any relevant information to the tenant on behalf of the owner, such as the presence of lead-based paint, mold, or any other health hazards


As part of the property management agreement, the owner will agree to pay the real estate business entities some or all of the following as compensation for services rendered:

  • Monthly management fees
  • A percentage of the first month's rental income for leasing services
  • Part of any late fees collected
  • Initial inspection fees
  • An hourly rate for any services rendered that are outside those clearly stated in the property management agreement

Build Your Own

While you may have gotten a lot of useful information here, you may still find it a little difficult to draft your own property management agreement. If that's the case, all hope isn't lost!DoorLoop provides you with three convenient options that cover those who want a prebuilt or customizable template for their property management agreements. Check out the options below:


• Word

• Custom

Final Word

If a real estate owner wishes to make the best use of their property, hiring a property manager is the best course of action.

The information contained in this article will help real estate investors to choose the right property management solutions for their needs.


What Licensing Does a Certified Property Manager Need?

Of all the licensing requirements for a property manager, the most important is a real estate license which entitles the holder to operate in the Texas property business.

Is a Property Manager the Same as a Real Estate Sales Agent?

No, a real estate broker/agent mainly deals with the buying, selling, or leasing out of a property while a property manager deals with the daily managing of a property.

Are Agreements With Property Management Companies Legally Binding?

Yes, a property management certificate is legally binding between the agent and the real estate owner.

This also includes any executors, administrators, or heirs that will take over the property.

Can I customize my own form or agreement?

Yes, you always can, however if you want to be 100% sure you are protected, you should consult an attorney in your local area.

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David is the co-founder & CMO of DoorLoop, a best-selling author, legal CLE speaker, and real estate investor. When he's not hanging with his three children, he's writing articles here!