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Occupational Licensing

Occupational Licensing - Property Management

Issue Overview

Occupational licensing requirements are typically enacted under the guise of improving quality or public safety, but this argument rarely holds up to scrutiny. Research conducted by the U.S. Department of Treasury has shown that tougher professional licensing regulations are not indicative of the quality of service being rendered.  Overall, licensure requirements drive up costs for consumers, act as a barrier to entry into the labor force and limit the mobility of individuals who possess a professional license. In the context of real estate, licensing requirements typically apply to agents and brokers who facilitate sales and purchases of property in exchange for a fee or commission. Some states extend these requirements to cover other real estate transactions, such as leasing, renting or managing rental property. 

As an Owner or Operator, How Does this Affect My Business?

In the context of real estate, licensing requirements typically apply to agents and brokers who facilitate sales and purchases of property in exchange for a fee or commission. Some states extend these requirements to cover other real estate transactions, such as leasing, renting or managing rental property. These additional requirements could impact day to day business operations in a number of ways, as it drives up training costs and lengthens the onboarding time for employees.