In what scenario is a Property Manager's license not needed?

A Property Manager's license is not needed when managing properties for a close relative of a property owner. This scenario is significant because many states, including Montana, have specific exemptions in their real estate regulations. Individuals who manage properties owned by their immediate family—such as parents, siblings, or children—do not typically require a professional license to do so.

The rationale behind this exemption lies in the nature of the relationship. Since there is often a personal interest in the well-being and management of the property due to familial ties, the state allows such arrangements without imposing licensing requirements. This encourages family members to assist one another without the additional burden of regulatory compliance.

In contrast, managing multiple properties for different owners or working under multiple brokers involves a business relationship where professional oversight and accountability are needed, thus requiring a license. Managing over ten units typically requires a property management license to ensure that proper standards are maintained, and the interests of all parties are protected.