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Michigan Real Estate Academy Blog

Michigan Property Management Requirements Guide

Jessica Alvarez

Posted by Jessica Alvarez
Jul 14, 2016 2:20:22 PM

There are different property management requirements for each state in the U.S. and not every state will require a property manager to have a real estate license/broker license. In this post, we will focus specifically on Michigan law as it pertains to property management, answering the most commonly asked questions on the subject. 

Michigan Definition of Property Management

According to Article 25 of the Occupational Code, Act 299 of 1980 the definition of “Property Management” is the leasing or renting, or other valuable consideration pursuant to a property management employment contract. “Property management employment contract” is defined as the written agreement entered into between a real estate broker and client concerning the real estate broker’s employment as a property manager for the client; setting forth the real estate broker’s duties, responsibilities, and activities as a property manager; and setting forth the handling, management, safekeeping, investment, disbursement, and use of property management money, funds and accounts.

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Do Michigan property management companies needs to have a real estate broker's license?

The answer here is YES. Property management is a real estate activity under current Michigan real estate licensing laws. Under the Michigan Public Act, anyone who engages in property management MUST have a real estate broker’s license, unless they are a real estate salesperson employed by a real estate broker to engage in property management. Property management is defined as leasing or renting, or offering to lease or rent, the property of another for any fee, commission, compensation or other valuable consideration pursuant to a property management employment contract. If the activities provided do NOT include leasing or renting services, a license would not be required.

Are there exceptions?

The answer here is YES. Property management is a real estate activity under current Michigan real estate licensing laws. Under the Michigan Public Act, anyone who engages in property management MUST have a real estate broker’s license, unless they are a real estate salesperson employed by a real estate broker to engage in property management. Property management is defined as leasing or renting, or offering to lease or rent, the property of another for any fee, commission, compensation or other valuable consideration pursuant to a property management employment contract. If the activities provided do NOT include leasing or renting services, a license would not be required.

Do community association managers in Michigan need to have a real estate broker's license?

NO. A broker’s license is not required to manage community associations or condo associations in Michigan.

 

What are the licensing requirements for Michigan real estate salespersons?

  • Education: 40 hours of approved real estate instruction
  • Exam: pass the salesperson licensing examination earning a 70 percent or higher

 

What are the licensing requirements for Michigan real estate brokers?

  • Experience: Minimum of three years’ full-time experience in real estate
  • Education: 90 hours of approved broker instruction
  • Exam: pass the broker licensing examination earning a 75 percent or higher

For more information about Michigan property management requirements or other licensing requirements, visit the Michigan Department of Licensing and Regulatory Affairs website.

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