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Texas is a powerhouse for property management — the second-largest rental market in the US, landlord-friendly laws, no state income tax, and a booming population. You need a Texas real estate license to manage properties for others. The Texas Real Estate Commission (TREC) oversees licensing.
The Texas Licensing Requirement
Step-by-Step: Getting Your Texas Real Estate License
Step 1: Complete 180 Hours of Pre-License Education
Texas requires more pre-license education than most states — 180 hours across 6 courses:
- Principles of Real Estate I (30 hours)
- Principles of Real Estate II (30 hours)
- Law of Agency (30 hours)
- Law of Contracts (30 hours)
- Promulgated Contract Forms (30 hours)
- Real Estate Finance (30 hours)
Cost: $300-$1,000 (varies by school; Champions School of Real Estate and VanEd are popular)
Timeline: 4-12 weeks (self-paced online) or 2-4 weeks (intensive)
Step 2: Submit Application to TREC
- Apply online at trec.texas.gov
- Background check and fingerprinting required
- Application fee: $185
- Fingerprint fee: $38.25
Step 3: Pass the State Exam
Administered by Pearson VUE:
- National portion: 85 questions, 150 minutes
- State portion: 40 questions, 90 minutes
- Passing score: 70% on each portion
- Exam fee: $54
- Pass rate: ~60% first attempt
Step 4: Find a Sponsoring Broker
You must be sponsored by a licensed broker to activate your license. For PM-focused work, look for:
- PM-specific brokerages that specialize in property management
- Independent brokers who offer PM sponsorship for a flat monthly fee
- Your own broker's license (requires 4 years of experience in Texas)
Cost Summary
| Item | Cost |
|---|---|
| Pre-license courses (180 hours) | $300-$1,000 |
| TREC application fee | $185 |
| Fingerprinting | $38.25 |
| State exam fee | $54 |
| Recovery trust account fee | $10 |
| Total | $587-$1,287 |
Texas PM Market: Why It's Great
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- No state income tax — attracts investors from high-tax states
- Population growth: Texas added 470,000+ residents in 2024-2025, driving massive rental demand
- Landlord-friendly laws: Fast eviction process (typically 3-4 weeks), reasonable security deposit rules, no rent control statewide
- Average management fee: 8-10% in major metros, up to 12% in smaller markets
| Texas Metro | Avg Rent | PM Competition | Notes |
|---|---|---|---|
| Dallas-Fort Worth | $1,800+ | High | Huge investor market, SFR-heavy |
| Houston | $1,600+ | High | Diverse property types, flood zone expertise needed |
| Austin | $2,000+ | Very High | Tech-driven growth, high rents, competitive |
| San Antonio | $1,500+ | Moderate | Military market, steady demand, less competition |
| El Paso | $1,200+ | Low | Underserved, military, good entry market |
Texas-Specific PM Regulations
- Security deposits: No statutory limit on amount. Must return within 30 days of move-out. Deductions must be itemized.
- Eviction process: 3-day notice to vacate, then file in Justice Court. Typically resolved in 3-4 weeks (one of the fastest in the US).
- Trust accounts: Required for holding security deposits and rent. Must be in a Texas bank.
- Property tax: Texas has high property taxes (1.6-2.5% of assessed value). PMs should help owners understand tax implications and protest values.
- No rent control: Texas state law prohibits cities from enacting rent control. This is a major selling point for investors.
Upgrading to Broker (To Own Your PM Company)
To operate independently, you'll eventually want a broker's license:
- Experience: 4 years as an active sales agent in Texas (within past 5 years)
- Additional education: 270 total hours of qualifying courses (90 hours beyond the initial 180)
- Broker exam: More difficult than sales agent exam
- Fee: $305 application fee
Launch Your Texas PM Company Right
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