What triggers the license requirement in New York?
Article 12-A of the Real Property Law defines a real estate broker by the work. The definition covers anyone who, for another person and for a fee, negotiates a sale or rental, collects or tries to collect rent, or negotiates certain commercial mortgage loans. Collecting rent and leasing are the core of most property management jobs, so a manager who does either for an owner client falls inside the definition.
The Department of State says this directly about management companies. If your firm collects rent or places tenants in vacant space for a landlord client, it needs a broker license. If your firm only provides maintenance, it does not. The department's reasoning is that a maintenance-only firm does not handle another person's money.
Can you work under someone else's license?
Yes. Under state law, a real estate salesperson works with a licensed broker. That person can lease or rent property, place property for rent, and collect rent on the broker's behalf. Many people start in New York management and leasing jobs this way, then upgrade to a broker license once they have the experience.
An associate real estate broker holds a full broker license but works under another broker's name and supervision. In that role the law treats them like a salesperson. A broker also commits a misdemeanor if anyone working at the firm in a salesperson role has not secured the required license.
Exceptions the state lists, and what it does not say
The license law's saving clause exempts receivers, referees, administrators, executors, guardians and others acting under a court order. It also exempts public officers doing their official duties and attorneys. Firms whose services are strictly maintenance fall outside the requirement under the department's guidance. The definition only applies to work done for another person, so owners managing their own property are outside it.
The state pages we read do not set out a separate exemption for building superintendents, on-site staff or other salaried employees of an owner. If your job includes collecting rent or leasing units, ask your employer which licensed broker you are working under. Breaking any provision of Article 12-A is a misdemeanor. An unlicensed person also cannot sue in New York courts to collect a fee for leasing or renting work.
Does New York City add its own license?
The city's business portal, NYC Business, sends real estate brokers to the state license issued by the New York State Department of State. It describes the same three steps: pay a fee, meet the education requirements and pass a test. The state rules described here apply in all five boroughs. New York attorneys only need to pay the fee.
Pay
USD a year, before tax. BLS OEWS May 2025, moved to 2026 with the Employment Cost Index. Figures are for the property, real estate and community association managers series, which covers residential, commercial and HOA managers together and counts employees only. New York figures are BLS published state estimates. Property size, portfolio count and the New York City market push pay toward the upper end. Refer to the Residential & Multifamily Property Management salary guide for figures from live adverts.
What you need
- AgeA broker must be at least 20 years old. A salesperson must be over 18.
- Experience for brokerYou need at least two years as a licensed salesperson, three years in the general real estate field, or a mix of both. You also have to reach a minimum point total for each experience type, and managing property your employer owns counts as one type.
- EducationBrokers need 152 hours of approved qualifying education. Salespersons need 77 hours of an approved course, including six hours on fair housing and discrimination.
- ExamsYou must pass the school's proctored final exam and the qualifying exam given by the Department of State. The state exam fee is $15.
- License feesThe Department of State charges $185 for an initial broker license application. A salesperson license costs $55 plus a $10 surcharge.
- RenewalLicenses run for two years. Each renewal requires 22.5 hours of approved continuing education, including set hours on fair housing, implicit bias, cultural competency, ethics, recent legal matters and agency.
- ReciprocityThe Department of State currently has no reciprocity with any other state. If you studied outside New York, you can ask for a written waiver of the education requirement.
How to get there
- Months 1-3Complete the salesperson courseTake the 77-hour approved course and pass the school's final exam. Then pass the state salesperson exam.
- Month 3 onwardLicense under a brokerWork with a licensed broker in leasing or management. In that role you can rent units and collect rent on the broker's behalf.
- Years 1-3Build qualifying experienceBuild two years as a licensed salesperson, three years in general real estate, or a mix of both. Record your experience points for each activity type.
- Years 2-3Finish broker educationComplete the remaining hours to reach 152 hours of qualifying education. That usually means the 75-hour broker course plus any required fair housing or supplemental course.
- Year 3Pass the broker exam and applyPass the state broker exam and send the Department of State your application and fee. If you plan to use a business name, get it approved first.
- OngoingRenew every two yearsComplete 22.5 hours of continuing education each term. The state has no grace period for working on an expired license.
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Questions people ask
Does a maintenance-only management company need a license in New York?
No. The Department of State says a firm whose services are strictly maintenance does not need a broker license, because it does not handle the owner's money. The license becomes necessary once the firm collects rent or places tenants.
Can a licensed salesperson collect rent in New York?
Yes, as long as they work with a licensed broker. State law lets a salesperson lease, rent and collect rent on the broker's behalf. A salesperson cannot run an independent management business.
Is there a separate property manager license in New York?
No. The work falls under the real estate broker and salesperson licenses issued by the Department of State under Article 12-A of the Real Property Law. Bills to create a separate property manager license have been introduced, but the state's current pages still use the broker license.
What happens if you collect rent without a license?
Violating Article 12-A is a misdemeanor, and one prohibited act is enough. An unlicensed person also cannot sue in a New York court to recover a fee for leasing or renting work.
Can I transfer a license from another state?
Not automatically. The Department of State currently has no reciprocity with any other state. You can send a written waiver request if you completed real estate education elsewhere.
How much does a New York broker license cost?
The Department of State charges $185 for an initial broker license application. The state exam costs $15. Course tuition is extra, and schools set their own prices.
