Wisconsin Real Estate Sales Practice Exam

In which situation must a property manager be licensed?

1. Showing properties to tenants

2. Signing leases on behalf of the landlord

3. Collecting rent

4. Advertising rental properties

The correct answer is: Signing leases on behalf of the landlord

A property manager must be licensed when signing leases on behalf of the landlord because this activity constitutes engaging in real estate brokerage. When a property manager signs a lease, they are essentially binding the landlord and tenant to a legal agreement concerning the rental terms. This role involves a significant level of responsibility and requires a thorough understanding of real estate laws, contracts, and the implications of lease agreements. While showing properties to tenants, collecting rent, and advertising rental properties are all important functions of property management, these tasks do not necessarily require a real estate license. For example, someone can show a property and collect rent as an employee of the landlord without needing to hold a real estate license, as long as they are not acting as an independent agent. Therefore, the requirement for licensing is specifically tied to signing legal documents that establish contractual obligations, making it essential for property managers to be licensed when engaging in such acts.