Rental and lease transactions are a great way for real estate professionals to expand their business, serve more clients, and diversify their income. But the rules around what agents can and cannot do, especially regarding property management, can sometimes feel unclear.

At REeBroker Group, we emphasize compliance, supervision, and education so our agents not only stay out of legal trouble but also build trust with their clients. Even though we operate as an online brokerage with a simple $500 flat broker fee per sale or purchase transaction, our supervision and customer service remain top notch. We are committed to making sure every activity is handled in accordance with the Department of Real Estate (DRE).

Here’s what every agent should know:

❌ What You Cannot Do: Property Management

Licensed real estate agents are not allowed to perform property management services for the public, and REeBroker Group does not allow any property management under our Brokerage.

This includes activities such as:

• Collecting rent on behalf of an owner
• Coordinating repairs, maintenance, or vendor contracts
• Handling tenant relations after a lease begins

Why is this so important?
Unauthorized property management can violate several sections of the California Business and Professions Code (including 10130 and 10131) and may lead to license suspension, revocation, or even civil lawsuits.

At REeBroker Group we make this very clear: agents may not advertise or conduct property management services for the public.

✅ What You Can Do: Rental and Lease Transactions

Agents are allowed to participate in rentals, but only within specific boundaries. Here are the permitted activities:

• List and market rental or lease properties on the MLS
• Show rental properties to prospective tenants and introduce them to the property owner
• Accept rental payments or deposits payable directly to the property owner or management company
• Facilitate lease agreements, while understanding that agents cannot sign documents for an owner or tenant
• Report rental or lease transactions to the brokerage within 24 hours of a signed agreement (REeBroker Group agents use the “My Transactions” portal for this)

We provide a rental and lease checklist so every file is complete before submission. Once approved by the broker, commissions are processed quickly.

⚠️ Additional Restrictions to Keep in Mind

• Short-term rentals such as Airbnb, timeshares, or vacation rentals are not authorized with REeBroker Group. Local laws in California can vary, but in our brokerage these are not allowed activities.
• Agents cannot accept compensation directly from tenants or property owners. All payments must be routed through the brokerage, as required by the DRE.
• If you own a rental property under your personal name, you may manage it yourself. However, you must report those properties to your broker and follow documentation requirements if you use your license or real estate resources.

💡 Commission Structures for Rentals

Rental commissions are negotiable and depend on the market. Common structures include:

• A percentage of annual rent, such as 10 percent of the first year’s total rent
• One month’s rent as a commission
• A flat fee, often used when working with management companies on multiple units

Transparency and clear documentation are key in all situations

Why This Matters

Supervision and compliance protect your license, your reputation, and your clients. With proper systems in place, you can confidently add rental activity to your business while avoiding unnecessary risk.

At REeBroker Group, we make this easier by offering:

• Clear compliance guidelines
• Online tools and supervision that work for busy agents
• Fast transaction reporting
• Low-cost, only 10% of your commission or 10% of one month’s rent if the agent waives or reduces the commission
  

Being part of an online brokerage also means our agents and managers stay up to date with education and industry changes without wasting hours tied to a desk.

Final Thoughts

No matter which brokerage you are with, the rules are the same. Agents must know what they can and cannot do with rentals, report their activities to their broker, and protect their license by following DRE requirements.

At REeBroker Group, we provide the structure, compliance support, and cost savings to help our agents focus on growth and long-term success.