Property Management

A Minnesota property management company manages residential rentals on behalf of 12 property owners. Under Minnesota law, must they hold a real estate broker's license?

ANo, property management does not require a license
BYes, managing properties for others for compensation requires a broker's license✓ Correct
COnly if they manage more than 10 properties
DOnly if they collect security deposits

Explanation

In Minnesota, managing real estate for others for compensation is a licensed activity under Chapter 82. Property managers who manage properties for multiple owners must hold or work under a licensed broker. Individual property owners managing their own properties are exempt. This requirement ensures professional standards and fiduciary responsibility in property management.

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