CalBRE Alert on Vacation Rentals and Property Management

Short term rentals of less that 30 days that are subject to a hotel, motel tax (“transient occupancies”), are exempt from many landlord tenant laws as well as the requirement of having a broker’s license in order to manage such properties for a fee.  The California Bureau of Real Estate (CalBRE) has become concerned that unlicensed persons are taking advantage of this exemption to engage in the property management of long term rentals (more than 30 days) but claiming an exemption.  For non exempt rentals an active broker’s license is needed and not merely a salesperson’s license.
In light of their concern, CalBRE has recently issued an Alert to Real Estate Licensees and Others Who Solicit, Offer, and Manage “Short-Term” Residential Rentals as Agents for Another or Third PartiesThe Alert notes that, for properties that do not fit the exemption, a licensed broker must be involved and any salesperson managing the property must be licensed through that broker. CalBRE cautions that they will take appropriate action if they are informed that an unlicensed person is misusing the exemption. Be aware that CalBRE has put the real estate community on notice – they are watching “transient occupancies” and property managers.

Sorry, comments are closed for this post.