Legal Question in Real Estate Law in California
Unlicenced property manager
Can an unlicenced person collect rent and work to evict tenants etc.? The person does not live on site. The owner is actually sort of senile. My father does these duties as a favor and has now open a bank account with the owner. I am worried my father can be liable for something in this mess. He is over 80 yrs and so is the owner. My dad is doing this without any compensation at all.
2 Answers from Attorneys
Re: Unlicenced property manager
Property managers who don't live on site are very limited in what they can do without a license. Collecting rents is one thing they can't do, and showing available units is another; see Business & Professions Code sections 10131 and 10131.01. However, the Code only applies to those who do these chores for compensation or the expectation of compensation. B&P 10131.
Re: Unlicenced property manager
Your father should get in writing what duties the owner wants performed so that if he does get into trouble he can show that he did it per instructions from the owner and not on his own. That will make it easier to argue that the owner is also liable for any problems caused. He should also get a hold harmless and indemnification agreement to again bring in the landlord if there is any legal trouble.
Your father is 80 and entitled to reduce the amount of worries in his life. It is kind for him to help the landlord out, but he really should stop doing the manager work which is a headache. It would be better if he makes sure the landlord has a proper and beneficial to the landlord estate plan, including a trust and pour over will. If the landlord has any children, they should get involved in the managing of the building as they likely will inherit it.
If he is going senile, this must be done ASAP as long as he had the mental capacity to set these things up. If there is going to be more than one heir, it is a great kindness to set up clear instructions so there will be no or fewer fights among potential heirs upon he dies, including whether he was under undue influence [if your father gets anything a child of the landlord is likely to raise that issue]. The landlord should go to an experienced probate, trust and estates attorney, one who will then be able to testify that he was of sound mind when he made the instruments as to his assets.