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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Real Estate Law
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In california if you buy or start a vacation rental business

Customer Question

In california if you buy or start a vacation rental business do you have to have a real estate License?
JA: Thanks. Can you give me any more details about your issue?
Customer: I may be starting a vacation rental business and I was told by people you needed a Real Estate Brokers license? I cannot seem to find out if this true.
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Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Lucy, Esq. replied 1 year ago.

Hi,

I'm Lucy, and I'd be happy to answer your questions today.

California law requires that a person have a real estate license in order to "engage in the business of, act in the capacity of, advertise as, or assume to act as a real estate broker or a real estate salesperson within this state." Cal. B. & Prof. Code, Section 10130. A person is considered to be a real estate broker if he or she "Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities." Section 10131(b).

If you're primarily in the business of renting out other people's homes to those who are on vacation, you would either need a broker's license or to be working as an assistant to someone who had one. That doesn't apply to someone like a manager of an apartment building or a person renting out their own single family residence. But if people were hiring you to find tenants for their vacation homes, you need a license.

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