Property Management Laws in Colorado

Must a Colorado property management company have a real estate broker's license?

YES. Key components of property management are considered a real estate activity under existing Colorado real estate licensing laws. Leasing and subsequent management of real estate for a fee or compensation is a real estate activity for which a license is required. The Colorado Real Estate Commission has specific trust account and accounting requirements for brokers in the handling of security deposits and rental receipts. Brokers must also comply with the brokerage relationship section of the license law and applicable rules. Please refer to CP-27 (Commission Position on the Performance of Residential Property Management Functions) for specific requirements.

Are there any exceptions to the requirement that a Colorado property manager have a broker's license?

On-site residential managers of apartments or condominiums are exempt if they are salaried employees and do not negotiate lease terms.

For more information about these and other Colorado property management requirements and exceptions, please contact the Colorado Division of Real Estate.

Before hiring a property manager to manage your Colorado rental property, you should always check that he or she is properly licensed. You can check the license status Colorado property managers at the Colorado Division of Real Estate licensee search.

Colorado Community and Homeowner Association Manager Licensing

A real estate broker's license is not required to be a community association manager in Colorado. However, if a licensed broker is performing association management, any allegations of theft or dishonesty will be investigated by the real estate commission.

Colorado Independent and Employing Broker Requirements

Colorado no longer follows a two-tiered system for real estate licensing. Salespeople are called "associate brokers" and brokers are called "independent brokers" or "employing brokers." A broker cannot engage in an independent broker practice without first having served actively as a real estate broker or salesperson for two years. In addition, independent brokers must complete 24 clock hours of instruction in brokerage administration before employing another broker or salesperson.

An applicant for an independent or employing broker's license must meet the following requirements:

• Age: At least 18 years of age
• Residency: provide proof of lawful residency in the U.S.
• Trustworthiness: Background check (including fingerprints) to prove truthfulness, honesty and good moral character
• Experience: Two years active licensure at the "associate broker" level
• Examination: Successful completion of broker's examination
• Insurance: Must provide proof of E&O Insurance
• Fee: Broker Application fee is $400; broker examination fee is $85

Colorado Association Broker Licensing Requirements

• Age: 18 years of age
• Education: 170 classroom hours of classes specified by the Colorado Division of Real Estate
• Residency: Provide proof of lawful residency in the U.S.
• Trustworthiness: Background check (including fingerprints) to prove truthfulness, honesty and good moral character
• Examination: Successful completion of broker's examination
• Insurance: must provide proof of E&O Insurance
• Fee: Broker Application fee is $400; broker examination fee is $85

For more information about these and other Colorado licensing requirements, please contact the Colorado Division of Real Estate.