Leasing Agent versus Property Manager Texas

As a property manager I run across angry owners (landlords) that do not really understand the difference between these two services.  It will vary among agents so I recommend you have a discussion about what your expectations are as you are interviewing agents.  Below are actual state licensing requirements:

Property Management requirements in Texas

Must Texas property management companies have a real estate broker's license?

Yes, if a property manager is going to lease or list real estate, or negotiate or attempt to negotiate to perform any of those acts, or if he or she holds herself out as engaging in any of those activities, he or she will need a broker's license. A salesperson working under a broker may engage in such activities.

Must Texas community association managers have a real estate broker's license?

NO. A broker's license is not required to manage community associations in Texas.

When you hire a leasing agent:  You are basically hiring someone to "list" your rental unit and "find" tenants for you.  They typically will find out your requirements of lease amount, pet deposit or pets if any allowed and other information found on the TREC promulgated forms.  An application will be included in those forms however running credit checks, criminal background histories, sex offender registries etc will be up to the landlord (owner) unless otherwise stipulated.  Owners will be responsible for collecting forms, documenting property condition as well as any ongoing maintenance or tenant issues.  Basically once the lease is agreed upon, all deposits received and agents paid the rest is up to you as the owner/landlord.  If you need to evict, collect additional moneys due to damages, etc that has nothing to do with the leasing agent(s) involved.  

When you hire a property manager: You will fill out a property management agreement that is a TREC promulgated form that the agent will provide for you, you will also agree to follow all fair housing guidelines as the agent is required by TREC to do so,  You will need to decide with that manager who will be keeping the security deposit, collecting rents, taking care of maintenance etc.  You will also stipulate your tenant requirements.  The requirements will have to be on file so that the agent can comply with TREC if there is a reason to check and make sure that you are equally applying said requirements.  If you set up with the agent to do credit reports, background check etc you will need to do for ALL tenants that apply universally.  The property manager will typically take a leasing commission (all of these may vary)  I personally make it equal to 1 full monthly rent per annum so if 6 month lease it is half for example.  I also take a monthly percentage of rent and a minimum if the home is not leased for any period of time.  I handle meeting repairman as well as getting estimates etc.  I am the number that people call, fax or email for maintenance items and I have an amount I am authorized to spend for immediate repairs without owner consent.  I have a vested interest in keeping the home rented and making sure I don't place troublesome renters in the property.  It does matter to me if the property is left in good condition after each tenant leaves.  I manage the security deposits and their return and if there is an eviction I do take care of it with all additional fees being paid by owner.  

Just make sure you find out EXACTLY what your property manager will be responsible for and fees that are related and the same for a prospective leasing agent.  It will save you a lot of grief later.