Property Management Laws in Nevada
Property managers in Nevada are usually responsible for the control and operation of a piece of real estate. This can involve responsibilities such as marketing rental properties, dealing with maintenance issues and collecting rent. Property managers can be responsible for real estate that is either commercial or domestic.
It’s important that a property management company acts in the best interests of clients and does not take any actions that are a conflict of interest. With this in mind, Nevada Property Management Laws exist to make sure that property managers perform their duties in the right way. Let’s examine this in more detail.
What is Property Management Law?
In simple terms, Nevada Property Management Laws exist to govern the actions of property management professionals in the state. They consist of a series of statutes and regulations.
Nevada Revised Statutes (NRS) are laws that are implemented by the legislature. It’s only possible to make changes to these laws by taking further legislative action.
The Nevada Administrative Code (NAC) is a series of regulations that detail how laws should be administered.
For example, common-interest ownership is covered by NRS 116 and NAC 116. Real Estate Brokers and Salesmen are covered by NRS 645 and NAC 645. There is a full list of relevant statutes and regulations which can be read online. All property managers are expected to comply with the Nevada Property Management Laws. It’s one of the most important professional obligations that they have.
What are the professional obligations of a property manager?
Aside from complying with the law, there are other obligations that a Nevada property manager must fulfill. Arguably the most important of these obligations is to be fully licensed. Property management professionals are not permitted to perform their duties without being licensed to do so.
The licensing process is stringent. It requires an applicant to receive relevant education and to have passed the property management exam within the previous twelve months. Anyone who is applying for a property management license also needs to have a Real Estate Broker’s License in place. This is because the management of the property is regarded as a real estate activity according to Nevada Real Estate Law.
A real estate license allows agents and brokers to legally represent the buyer or seller of a property. There is a process to follow to acquire one of these licenses in Nevada. This process cannot be followed at the same time as the process of applying for a property management license. According to Nevada Real Estate Law, the real estate license has to be in place first.
Even after this is the case, and exams have been passed, there is no guarantee that a property management license will be granted. This is because background checks are completed on applicants, including a check for felony convictions. Certain actions and convictions may mean that an applicant is refused a license and is unable to operate as a property manager.
Fiduciary duty to the clients
Another professional obligation of property managers is a fiduciary duty to the clients, communities, and buildings that they represent. In order to comply with the requirements of this duty, a property manager must always act in the best interests of the people that they represent. This means that a property manager should always avoid any conflict of interest that is detrimental to the client even if it represents a financially advantageous situation for them. This responsibility may be difficult for a property manager at times. However, it’s a responsibility that property managers in Nevada need to take seriously as it has high legal standing.
Property management laws in Nevada consist of a series of statutes and regulations that are aimed at governing the actions of property managers in the state.
In order to comply with these laws, and fulfill professional obligations, property managers need to be fully licensed. They also need to ensure that they always act in the best interests of the client and avoid any conflicts of interest.
It’s clear to see that property management professionals in Nevada are subject to laws that ensure they act in a professional manner at all times. Any failure to adhere to these high standards could lead to a license being revoked.