What is the role of a property manager under Colorado law regarding licensing?

• A. Property managers must be licensed or operate under a licensed broker and comply with trust and recordkeeping requirements.
• B. Property managers have no licensing requirements if they work with a broker.
• C. Property managers must be licensed but do not need to handle trust accounts.
• D. Property managers can operate without a license if they manage fewer than 3 units.

Answer: (A)

In Colorado, property management that involves real estate brokerage activity—like negotiating leases, advertising, showing properties, and handling tenant or owner funds—requires licensing or affiliation with a licensed broker. Whether you hold a license yourself or work under a licensed broker, you must follow trust and recordkeeping rules because you’ll often be handling money such as security deposits and rents. These funds must be kept in a trust account and documented carefully, with proper accounting and compliance with the Colorado Real Estate Commission. There is no exemption based on the number of units managed, and simply working with a broker does not eliminate the need to operate under proper licensing and trusted fund handling.