Real Estate Division Taskforce Decides on Property Management Credential
December 28, 2018 |
In late 2016, the Ohio Division of Real Estate Property Management Taskforce began meeting as a follow up to the Division’s Ohio Licensing Structure Taskforce that culminated in H.B. 532 (which was enacted in April of 2017). The Ohio Real Estate Commission charged the taskforce with determining whether a real estate licensee should obtain a permit or endorsement to perform property management services.
From 2016 through 2018, the taskforce met a total of 10 times to consider recommendations for a property management certification, exemption for certain licensees with property management experience and educational requirements. The taskforce also considered whether association management professionals should be credentialed and any grandfathering or grace period for compliance.
The taskforce concluded with proposed definitions for property management, a property manager and a property management agreement. The inclusion of written agency and requirement that a property management agreement be in writing were also recommended.
Specifically, the taskforce made the following recommendations:
- Anyone engaged in property management services must hold a property management certification issued by the Division of Real Estate.
- A brokerage’s principal broker or a management level licensee must have the property manager certification in order for any affiliated licensees to obtain the property manager certification.
- Both residential and commercial managers would be subject to the certification requirement.
- Homeowners and Condominium Owners Associations would be required to obtain the property management certification.
- Those seeking certification would have to take a 20-hour course in management and operation, marketing and leasing, Ohio license law and local, state and federal laws pertaining to property management. The course can be offered at an institution of higher learning, national associations or other appropriate education providers.
- Owners would be prohibited from using corporate formalities in an attempt to evade the certification requirement.
- An applicant for a property management certification will be able to petition the Superintendent for a waiver of some or all of the pre-licensing course requirements, and if denied, can appeal to the Real Estate Commission.
Upon the Commission’s review of the taskforce’s recommendations, the Commission will make a decision on whether to proceed with legislation to enact the new provisions. Those licensees engaging in property management or considering adding this service to their practice should follow the Commission’s deliberative process carefully, as their decisions could impact your property management practice in the future.