Can AI help run a US property management company?

Do I need a broker license to manage rentals for other owners?

In most states, yes. Leasing, rent collection or management for others for a fee is brokerage, so you need a real estate broker license or must work under a broker.

That is the rule in California (Cal. Bus. and Prof. Code sec. 10131(b)), New York (N.Y. Real Prop. Law sec. 440) and Florida (Fla. Stat. ch. 475); in Texas it covers negotiating leases and handling rent on single-family homes (Tex. Occ. Code sec. 1101.002(1)(A)) (As of Oct 2026). An owner managing its own units, and its direct employees, are usually exempt, and an unlicensed manager may be unable to sue for its fees. Name the broker of record on every management agreement, and check whether your leasing agents need a license too. See the Academy lesson on licensing and trust money.

How must I hold owners' money?

In a trust account in the broker's name for the owners, never mixed with operating money, with the owner ledgers reconciled to the trust records every month.

California's rule is 10 Cal. Code Regs. sec. 2831.2, and Florida brokers follow chapter 475 and the real estate commission's rules (As of Oct 2026). A shortfall is a license case and often a fidelity claim. If one owner's rent bounces, cover the gap from operating funds at once and record why: one owner's money never pays another.

What are the security deposit rules in my state?

The cap, where you hold the deposit and the return deadline all differ by state, so never borrow another state's rules.

California allows at most one month's rent since July 1, 2024, with a narrow small-landlord exception, needs an itemized statement within 21 days, and adds up to twice the deposit for bad faith (Cal. Civ. Code sec. 1950.5). Texas has no cap; refund with an itemized list within 30 days after surrender once you have a forwarding address, or bad faith costs $100 plus three times the amount wrongly withheld, plus attorney's fees (Tex. Prop. Code secs. 92.103 to 92.109). New York allows at most one month's rent, returned with an itemized statement within 14 days of move-out, or you lose the right to keep any of it (N.Y. Gen. Oblig. Law sec. 7-108). Florida has no cap, but you send notice of intent to claim within 30 days after the tenancy ends, by certified mail or by email under sec. 83.505, or the claim is forfeited (Fla. Stat. sec. 83.49(3)) (As of Oct 2026). See the Academy lesson on leases and deposits.

What does fair housing law require in listings and screening?

Describe the unit, never the tenant, and screen every applicant against the same written criteria.

The Fair Housing Act bars discrimination by race, color, religion, sex, national origin, familial status or disability, including in ads, so "adults only" or "perfect for a single professional" breaches it (42 U.S.C. sec. 3604(c)). California and New York add source of income (Cal. Gov. Code sec. 12955; N.Y. Exec. Law sec. 296). Assistance animals are not pets (24 C.F.R. sec. 100.204). If a consumer report leads to a denial, send an adverse action notice; willful violations cost $100 to $1,000 per consumer plus punitive damages (15 U.S.C. secs. 1681m and 1681n) (As of Oct 2026). See the Academy lesson on owners and listings.

How much can I raise rent, and with what notice?

Price from comparable leases, then apply any state or local cap and the required notice. If a cap applies, it wins.

California's covered units can rise at most 5% plus regional CPI, never more than 10% in 12 months, with 30 days' notice for an increase of 10% or less (Cal. Civ. Code secs. 1947.12 and 827). Oregon's 2026 cap is 9.5% and Washington's 9.683%, both 10% for 2027, generally with 90 days' notice (ORS 90.323; RCW 59.18.700). Texas generally bars city rent control (Tex. Local Gov't Code sec. 214.902), and Florida preempts local regulation of residential tenancies (Fla. Stat. sec. 83.425) (As of Oct 2026). See the Academy lesson on rent caps.

What notice do I serve when a tenant stops paying?

Check the loan first: on a property with a federally backed mortgage, the CARES Act requires a 30-day notice to vacate for nonpayment (15 U.S.C. sec. 9058(c)). Then serve your state's notice, counted and delivered its way.

California uses a 3-day notice to pay rent or quit, counted excluding weekends and court holidays (Cal. Code Civ. Proc. sec. 1161(2)). In Texas, for suits filed from January 1, 2026, a tenant not late before that month gets a notice to pay rent or vacate, 3 days by default, delivered by mail, inside the unit, by hand or by agreed email, never taped outside (Tex. Prop. Code sec. 24.005). New York requires a 14-day written rent demand (N.Y. RPAPL sec. 711(2)), and Florida a 3-day notice excluding weekends and legal holidays (Fla. Stat. sec. 83.56(3)) (As of Oct 2026). Court process is required to evict in all four states: never shut off utilities or remove belongings, and in Texas change locks only under sec. 92.0081's strict notice and key rules. See the Academy lesson on nonpayment.

What should my management agreement and tenant fees cover?

Put fees, the spending limit, the reserve, who signs leases and serves notices, eviction handling, insurance, termination and the hand-back of trust funds and records in writing before you start.

Fees you charge tenants have their own limits. In New York a late fee is capped at the lesser of $50 or 5% of the monthly rent (N.Y. Real Prop. Law sec. 238-a), Texas has a 12% or 10% safe harbor (Tex. Prop. Code sec. 92.019), and California allows only a reasonable estimate of the landlord's loss (Cal. Civ. Code sec. 1671(d)) (As of Oct 2026).

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