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Representative McGrew seeks new property-management license to ease route for local managers

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE · October 10, 2024
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Representative Richard McGrew presented Exhibit E, a draft bill to create a property-management broker classification with targeted education and experience requirements so individuals can manage others' properties without completing the sales-broker path.

Representative Richard McGrew introduced Exhibit E, a draft property-management bill aimed at creating a separate license and training path for managers who oversee other people's rental properties. McGrew said the bill is intended to provide targeted education and practical experience rather than forcing would-be property managers into the two-year sales-broker track.

McGrew described the current path: prospective managers must take 60 hours of education, serve two years as a licensed sales broker (including sales-focused coursework), and then take another 60 hours before a broker test. "To manage someone else's property... I could be convicted of a felony for doing that," McGrew said, using his own experience managing hundreds of units to underscore the mismatch between sales training and property-management skills.

Under the draft, the state would offer a property-management broker license that requires property-management-specific coursework (60 hours) and a measurable experience threshold; McGrew suggested raising the draft's minimum experience (he said the current draft's threshold of four units should be higher, and proposed at least a dozen to 15 properties). The bill would also create an associate/apprentice path with 30 hours of education and up to two years of supervised experience before eligibility to test for the management license.

McGrew argued the change would strengthen local capacity, help "mom-and-pop" owners and low-income housing providers, and reduce recovery-fund claims tied to mismanagement. He invited questions and said the draft will be refined; no committee vote was taken on Exhibit E during the meeting.

Next steps: sponsor will continue refining the draft with stakeholders and return language for further committee consideration.