Under the Texas Real Estate License Act (TRELA) and TREC Chapter 1101, any person or entity that manages residential or commercial property for compensation must either hold a Texas real estate broker license or be sponsored by a TREC-licensed designated broker. This requirement applies regardless of the size of the portfolio — whether you manage 5 properties or 5,000.
Broker sponsorship for property management means that a TREC-licensed Texas broker agrees to serve as the designated broker for your property management entity — taking legal responsibility for your company's licensed real estate activities under TREC rules.
Property management involves activities that TREC classifies as real estate brokerage — specifically, the negotiation of leases, collection of rents, and management of trust accounts on behalf of property owners. These activities require broker-level oversight to protect consumers (both property owners and tenants) from fraud, mismanagement, and non-compliance.
The designated broker is personally responsible to TREC for the licensed activities of every agent and entity under their supervision. This is why choosing the right designated broker is one of the most important decisions a PM company can make.
Active, Clean TREC License
Verify the broker's TREC license is active and has no disciplinary history. Search the TREC license lookup at license.trec.texas.gov.
Specific PM Experience
Not all real estate brokers understand property management. Your designated broker should have direct PM experience, including trust account management, TREC PM rules, and fair housing compliance.
Structured Oversight Process
A quality PM sponsor will have a defined oversight process — regular reporting requirements, trust account review schedules, and a clear communication protocol.
Transparent Pricing
PM broker sponsorship fees range from flat monthly fees to percentage-of-revenue models. Understand exactly what you are paying for and what oversight you are receiving in return.
Responsive Communication
Your designated broker is your compliance partner. If they are difficult to reach during the sales process, they will be even harder to reach when you have a compliance question at 4pm on a Friday.
Texas Broker Sponsor™ developed PM Accelerator™ specifically for property management companies that need more than a signature on a TREC form. PM Accelerator™ provides structured designated broker oversight, quarterly compliance reviews, trust account monitoring, and direct access to Ron Miranda — a Texas real estate broker since 2012 with over 25 years in Texas real estate.
For institutional PM companies managing 300+ units, PM Multi-family Enterprise™ provides the same oversight at the scale and depth that large portfolios require.
Yes. Under TREC Chapter 1101, any person or entity that manages residential or commercial property for compensation must be licensed as a real estate broker or be sponsored by a licensed Texas broker. Operating without a designated broker is a TREC violation and can result in license suspension or revocation.
In Texas, the terms are often used interchangeably for property management entities. The designated broker is the TREC-licensed individual who is responsible for the real estate activities of the entity. The sponsoring broker is the licensed broker who agrees to oversee and be responsible for the licensed activities of the entity or individual. For PM companies, the designated broker is typically the sponsoring broker.
A Texas property management entity can only have one designated broker at a time. However, the entity can have multiple licensed agents or associate brokers working under the designated broker's supervision.
If your designated broker's TREC license is suspended, revoked, or expires, your property management company must immediately cease all licensed activities until a new designated broker is appointed. This is why choosing a broker with a clean, long-standing TREC record is critical.
Apply for PM Accelerator™ or PM Multi-family Enterprise™ today.
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