YES. Key components of property management (renting and leasing) are considered real estate activities under existing Illinois real estate licensing laws. A person needs a real estate license if they provide assistance intended to result in the sale or lease of real estate. The definition of the word "broker" in the Illinois Real Estate Act provides 11 examples of the types of "assistance" that require a real estate -license. Included are: representing clients in the negotiation of real estate sales contracts or leases, and issuing advertisements for the sale, purchase or lease of real estate.
Property management activities that involve general administration, like contracting for property maintenance (garbage pick-up, etc.) and paying general expenses (utilities, etc.), do NOT require a real estate license. Serving as an accountant for association dues also does not require a real estate license.
Property management activities that involve a conveyance of real estate by contract or lease require a real estate license. Examples of property management activities involving a conveyance include: showing a unit for sale or lease, negotiating lease or real estate contract terms, maintaining security deposits, rent payments or earnest money deposits.
Yes. For example, a "leasing agent" license is available and can be used only for residential leasing activities. Leasing agents must be sponsored and employed by a sponsoring broker. In addition, onsite residential managers who engage in leasing activities are exempt.
For more information about these and other Illinois property management requirements and exceptions, please contact the Illinois Department of Financial and Professional Regulation - Real Estate Division.
Before hiring a property manager to manage your Illinois rental property, you should always check that he or she is licensed appropriately. You can check the license status of Illinois property managers at the Illinois Department of Financial and Professional Regulation license lookup webpage.
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