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Property management can be a rewarding career with great advancement opportunities. If you are thinking to become a property manager in Minnesota, this is the perfect guide for you!
To become a property manager in Minnesota, an applicant must obtain a real estate license. The individual can be a real estate broker or a salesperson who works under the supervision of a broker. The salesperson licensee is required to be at least 18 years old, complete 90 hours of pre-license courses, pass a salesperson exam, submit an application, and fee to the Minnesota Real Estate Board.
It is part of the Minnesota Department of Commerce, which is responsible for issuing licenses to real estate salesperson and brokers.
As a property manager, your duties may include finding and screening prospective tenants for a property, negotiating the lease terms. You could also be responsible for rent collection, property inspection, maintenance, repair, providing updates, and communicating with the property owner.
In this guide, I will focus on the steps on getting a “real estate salesperson” license, which is the entry license level. So you may begin your property management career by joining a licensed brokerage firm. I will also cover the income updates and other FAQs about this profession.
But before we start, I want to give a brief disclaimer. This post is not intended as legal advice or state/federal real estate training. It is for general information only. Please always follow your State laws and best practices.
When choosing a real estate school, I prefer one where you could take the courses online. This way, you could study at your own pace whenever and wherever. The CE Shop is a trustworthy real estate education provider. You may click here to see whether they offer pre-licensing course in your state. (**)
A Quick Table Summary of Becoming a Property Manager in Minnesota
| Eligibility | Education | Exam | Fees |
|---|---|---|---|
At least 18 years of age Have a valid Social Security Number | 90 hours of pre-license courses 15 hours of continuing education each license year | 130 items 4 hours Required passing score is 75%. | Pre-licensing courses fees – $420 to $570 (approximately) Exam fee – $63 License fee- $100 |
8 Steps to Become a Property Manager in Minnesota
Step 1: Meet the eligibility requirement
- Citizen of the United States or lawfully admitted alien
- At least 18 years old
- Have a valid Social Security Number
Step 2: Complete the pre-license education
You are required to take 90 hours of course which covers different real estate concept. It consists of three individual courses (Course I, II, III) and 30 hours each. Course I must be completed before you write the exam.
Although Course II and III can be completed before or after the exam, they must be completed before you apply for the license.
It can be taken in a classroom setting or online, but it must from an approved education provider.
Step 3: Pass the Minnesota Real Estate Salesperson Exam
The Minnesota real estate salesperson exam has 130 items and you’ll be given 4 hours in writing it. It consists of two part, the National portion and State portion. The required passing score is 75%.
The test is administered by the Pearson Vue. To register, you need to complete their online exam registration and provide them with the required documents. There is a $63 examination fee which could be paid by credit card.
Since the exam is a computerized test, your result will appear immediately on the screen.
The exam is to test your knowledge on the real estate topics that are covered in the pre-license education. Doing multiple sets of practice questions is an excellent way to prepare for the exam and also boost your confidence.
Step 4: Join a licensed property management company
After you pass the exam, you must work with a property management company who holds the managing broker license in Minnesota. This is the firm who would sponsor your real estate license.
Keep in mind that not all brokerage provide property management services to their clients. Most brokerages focus only on the buy-sell side of the business. So make sure you find one that specializes in property management.
At the time that I’m writing this guide, I can see many online job postings looking for property managers. You may search through job forums such as ZipRecruiter, Glassdoor, or LinkedIn.
There are many property companies out there, but not all are suitable for you. As you start in this industry, it will help if you work for a company that could provide you with proper training and mentorship. And you would likely start out working as an assistant to a property manager.
Rather than having you reinvent the wheels, an established property management company can show you a standard procedure in working with clients.
Step 5: Register with the Minnesota Real Estate Board
In Minnesota, the salesperson license application must be submitted by your real estate broker. You must do so within one year of passing the real estate exam.
In the application, it may ask you to provide personal details, the completion info of pre-license education, exam, and other necessary documents. There is a $100 license fee.
Once your application is approved, you’ll receive a notice from the Minnesota Commerce Department.
Step 6: Provide background documentation
The Minnesota Real Estate Board is responsible for issuing licenses to real estate salesperson and brokers. To protect the public interest, they need to know about applicant’s criminal history.
On the license applications, there are questions on criminal felony/charges or withheld/ deferred judgment. If you have such relevant records, then you need to provide:
- A written statement explaining the circumstances of each incident;
- A copy of the charging document;
- A copy of the official document that shows the resolution of the
charges or any final judgment/ sentencing order
Step 7: Maintain the real estate license
All MN real estate licensees must renew the salesperson license before June 30th of every year. It is to be processed by your Primary Broker, where they could do so through the same online registration portal.
The renewal fee for the salesperson license is $60.
Furthermore, you need to complete 30 hours of real estate continuing education before the license renewal deadline (June 30th). The curriculum must include:
- At least 1 hour of training in courses in laws or regulations on agency representation and disclosure (“Agency Laws”),
- At least one hour of training in courses in state and federal fair housing laws, regulations, and rules, other anti-discrimination laws. OR courses that help licensees to meet the housing needs of immigrant and other under-served populations (“Fair Housing”)
It is the responsibility of the Primary Broker to verify your CE credits. Also, extra courses taken cannot be carried forward to the next license cycle.
Step 8: Keep up with the Minnesota real estate laws
Property managers are constantly tasked with new responsibilities and challenges. With the rise of online rental applications, environmental health and safety requirements, it’s important for property managers to be up-to-date on real estate laws and regulations.
For example, can you charge an application fee? Is it okay to run a background check on to prospective tenants? What happen if the tenants violate the lease agreement? Who will be responsible for the maintenance, repair or damages?
A good resource is the Minnesota Statutes Chapter 504 B, Landlord and Tenant. It consists of rules that could be practical to your daily property management activities. You can find its link in the reference section.
FAQ about being a Property Manager in Minnesota
How much does it cost to become a property manager in Minnesota?
It costs approximately $733 to become a property manager in Minnesota. That’s the cost to get a real estate salesperson license and here’s the breakdown:
- Pre-licensing courses fees – $420 to $570 (approximately)
- Exam fee – $63
- License fee- $100
The above are just the costs of getting the license. But to start a real estate business, there will be other expenses involved such as MLS subscription, E&O premium, phone, internet, and office supplies.
Also, you may want to invest into exam prep. This can increase your chance in passing the exam on the first try, so that you don’t need to waste time and money in retaking it.
How long does it take to become a property manager in Minnesota?
It takes approximately five months to become a property manager in Minnesota. Still, it largely depends on the time it takes you to complete the pre-license course, exam, application, and get employed by a licensed property management firm.
You may speed up in getting the real estate license by taking online courses. This way, you’ll have the flexibility to finish the pre-license education at a quicker pace. Online application submission will also eliminate the mailing time.
Can a felon be a property manager in Minnesota?
The Minnesota Real Estate Board would put into consideration of the applicant’s honesty, trustworthiness, character and integrity. Whether a felon can be a real estate salesperson is subjected to how the licensing commission evaluates the case.
But don’t get discouraged as everyone has a past. The most important is that you can demonstrate that you will serve the public in a fair, honest, and open manner.
You are required to submit
- A written statement explaining the circumstances of each incident;
- A copy of the charging document;
- A copy of the Sentencing Order. (It is an official document that shows the resolution of the charges or any final judgment)
However, before you invest too much of your time and money into this career, you could consult the MN Commerce Department first. They will be able to determine the effect of the offense on licensure.
Here’s another post that covers how to apply for a real estate license with a felony record. In there, you’ll find practical ideas which could help your application.
How much do property manager make in Minnesota?
Property managers in Minnesota make an average annual income of $103,748. It typically range between $90,060 and $119,359. (*) Your earning as a property manager would depend on your skills, knowledge and experience in managing the properties. The type and number of real estate in your managing portfolio may also affect your compensation.
At the beginning phase of your property management career, you could be working as an assistant for a property manager. So your earning could be limited at that time.
But once you have developed the necessary skillset and demonstrated your ability to work independently, there should be a significant improvement to your earning.
(*) Source: Salary.com May 27, 2021
Here’s salary guide you may be interested. In there, you’ll find the income figures for residential and commercial property managers. What makes one earn more than others? How do education, experience, and certification play a factor in earning?
I have more questions about the Minnesota real estate license, whom should I contact?
You may contact the Minnesota Department of Commerce:
- Address: 85 7th Place East, Suite 280, Saint Paul, MN 55101
- Phone: 651-539-1500
- Email: licensing.commerce@state.mn.us
If you are reading up to this point, I bet you must be interested in getting a real estate license. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. The Colibri is exactly that! You may click here to check it out yourself. (**)
Career Tips to Become a Successful Property Managers in Minnesota
Get proper and in-depth education on property management
You could be feeling lost when starting in this field. One of the best to equip yourself to get the proper education from a trusted provider.
You may also consider taking the following courses to equip yourself with the property management knowledge. They are offered by Institute of Real Estate Management (IREM). IREM is an affiliate of the National Association of REALTORS®.
- Managing Residential Properties (**)
- Managing Commercial Properties (**)
- Managing Condominium and Homeowners Associations (**)
Even though they are not part of the pre-license education requirement, your enhanced knowledge will help to set you apart from others in the industry.
Connect with other real estate professionals
You may consider joining the National Association of Residential Property Managers (NARPM). This allows you to connect with other property managers, thus learn from their valuable experience and share ideas with one another. You will also find updates on the housing markets, changes to the laws and regulations.
Another group you may consider is the Minnesota REALTORS. It consists of mostly real estate professionals. If you plan to run your own property management company, this can be a great referral source for your business. They also have great resources such as the classes, events, housing reports and industry updates.
Start your own property management company
As you developed the necessary skillset, rather than working for someone else, you may consider getting a broker license to start a property management company. This allows you to hire other property managers, thus, lead to a scalable business model.
To get a real estate broker license in Minnesota, you must:
- Have at least 3 years of active real estate work experience within the past five years;
- Complete 30 hours pre-license courses from an approved education provider;
- Pass the Broker Exam;
- Submit a Broker Application and fee to the Minnesota Commerce Department
However, running a company is very different from working as an employed property manager. You need to figure out all the different aspects of the business, such as marketing, branding, prospecting, hiring, training, and accounting.
The expenses will also be a lot higher, you need to account for business insurance, staff’s salary and benefits, office rent, furniture, office supplies, software, many more.
So that’s all I have to share for now. Do you like this guide? If so, please share it.
(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our company, JCHQ Publishing will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.
Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.
Reference:
- Minnesota Department of Commerce Real Estate (Source)
- Guide to Real Estate Licensing (source)
- PSI Minnesota Real Estate Candidate Information Bulletin (Source)
- Pearson Vue Minnesota Real Estate Candidate Handbook (Source)
- 2020 Minnesota Statues – Chapter 504 B. Landlord and Tenant(source)
- Salary.com – Property Manager in Minnesota (source)
- Minnesota REALOTRS (source)
