Do Property Managers Need a License in Massachusetts?

Short answer: Massachusetts does not list a separate, general-purpose property-manager license. However, the state does regulate real estate brokerage, and the licensing analysis depends on the work performed and whether a statutory exemption applies. Massachusetts General Laws chapter 112, section 87QQ expressly exempts a managing agent acting under a contract with the property owner from the broker and salesperson licensing provisions in sections 87RR through 87DDD. Read the details below before relying on a simple yes-or-no answer.

Photo from @drobotdean of Freepik

What Massachusetts law says about real estate licenses

Under M.G.L. c. 112, § 87PP, the definition of a real estate broker includes a person who, for another and for compensation, rents or leases real estate, negotiates a rental or lease, lists property, advertises it for rent, or helps procure prospects or complete a rental transaction. Section 87RR generally requires a person acting as a broker or salesperson to be licensed, except where the law provides otherwise.

The managing-agent exception for property managers

The important qualification is in M.G.L. c. 112, § 87QQ. It says the broker and salesperson licensing provisions do not apply to “a managing agent while acting under a contract with the owner of the real estate,” or to that agent’s regular employees acting on the agent’s behalf in the regular course of employment. The same section separately addresses an owner and the owner’s regular employees when they manage that owner’s property.

That means a property manager does not automatically need a broker or salesperson license simply because the manager is paid to manage another person’s property. The statutory exception matters even when the management work includes activities that appear in the broker definition. The actual contract, role, and services still matter; a job title alone does not establish whether an exemption applies.

How to apply the rule to a rental property

• Managing under an owner contract: Section 87QQ expressly addresses a managing agent acting under contract with the property owner. Keep the written agreement clear about the property, authority, and management services.
• Managing your own property: Section 87QQ also addresses an owner acting for themselves and the owner’s regular employees acting in the regular course of employment.
• Separate brokerage activity: If a person or business performs real estate brokerage work outside the managing-agent or owner/employee circumstances described in § 87QQ, the broker/salesperson licensing rules may apply. Confirm the facts with the Massachusetts Board of Registration of Real Estate Brokers and Salespersons or a Massachusetts attorney.

What about condominium or HOA managers?

Association management and brokerage are not interchangeable labels. The licensing question depends on the actual work and the contract or authority under which it is performed. Managing association operations does not by itself answer whether a person is engaging in a separately regulated brokerage activity, such as arranging a rental or lease of an individual unit for another person. Review the applicable facts and obtain guidance from the state licensing board or association counsel when the role includes real estate transactions.

How owners can check a manager’s license

Massachusetts provides a Commonwealth licensee search and information through the Board of Registration of Real Estate Brokers and Salespersons. Use the lookup to verify a broker or salesperson license when someone represents that they hold one. The lookup is not a general certification check for every property manager, and the absence of a broker listing alone does not determine whether the § 87QQ managing-agent exception applies.

Before hiring, ask for the proposed management agreement, confirm the scope of services and decision-making authority, and ask who will handle any leasing or other brokerage activity. For Green Ocean’s management scope and fees, review our rental property management services and pricing.

This article is general information, not legal advice. Licensing requirements can depend on the specific facts and may change. Confirm current requirements with the Massachusetts licensing board or a qualified attorney before acting.

If you’re comparing professional management for a Greater Boston rental, contact Green Ocean Property Management to discuss your property and the services you need.