HD9 - The Need for Regulation of Property Managers

  • Published: 1994
  • Author: Department of Professional and Occupational Regulation
  • Enabling Authority: House Joint Resolution 618 (Regular Session, 1993)

Executive Summary:
A. Study Overview

House Joint Resolution 618, agreed to in the 1993 Session of the Virginia General Assembly, requested the Board of Professional and Occupational Regulation (formerly the Board of Commerce) to study the feasibility of establishing a licensing program for property managers of condominiums, townhouses, and other similar common interest communities. The Board was instructed to report its findings to the Governor and the 1994 Session of the General Assembly.

The Board of Professional and Occupational Regulation, through the means of public hearings and surveys to involved parties, studied the nature of this occupation, its effect on public health, safety and welfare, and the existing statutory requirements affecting the occupation.

The Board's recommendation is based on an extensive analysis of this information.

B. Findings and Conclusions

1. The information and data received do not support the need for a regulatory program at this time. Board members concluded that a regulatory program which establishes job-entry requirements is unnecessary regulation if there is not clear and overwhelming evidence that the public is at immediate risk.

2. The potential for harm to the public may exist because community association managers control large sums of money and manage valuable real estate.

3. There exists among property managers differing levels of competence, but the majority of those responding to this study hold a professional designation from one of the several professional trade associations or have taken continuing professional education courses.

4. The Common Interest Community Management Information Fund which became effective July 1, 1993, and is administered by the Property Registration Section of the Department of Professional and Occupational Regulation, will provide a more reliable source of data regarding the number of community associations and their concerns about the regulation of community association managers.

C. Recommendations

Based on the above conclusions, the Board of Professional and Occupational Regulation agreed to defer a recommendation for one year, during which time more data can be collected to support or reject the need for regulation of this occupation.